# EDGAR Filing Document

**Accession Number:** 0001653827
**File Stem:** 0001193125-26-214953
**Filing Date:** 2026-5
**Character Count:** 6646289
**Document Hash:** 87ba001535b7ccc651e58c29f6ab0e17
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-214953.hdr.sgml**: 20260508

**ACCESSION NUMBER**: 0001193125-26-214953

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 86

**FILED AS OF DATE**: 20260508

**DATE AS OF CHANGE**: 20260508

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Safepoint Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001653827
- **STANDARD INDUSTRIAL CLASSIFICATION:** FIRE, MARINE & CASUALTY INSURANCE [6331]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 462932025

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-295728
- **FILM NUMBER:** 26959615

**BUSINESS ADDRESS:**
- **STREET 1:** 12640 TELECOM DRIVE
- **CITY:** TAMPA
- **STATE:** FL
- **ZIP:** 33637
- **BUSINESS PHONE:** 8136513400

**MAIL ADDRESS:**
- **STREET 1:** 12640 TELECOM DRIVE
- **CITY:** TAMPA
- **STATE:** FL
- **ZIP:** 33637

##### [**Table of Contents**](#toc)
**Registration No. 333-** 

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM S-1** 

**REGISTRATION STATEMENT** 

**UNDER** 

**THE SECURITIES ACT OF 1933** 

**SAFEPOINT HOLDINGS, INC.** 

(Exact name of Registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **6331** | **14-1957288** |
| (State or other jurisdiction of<br> incorporation or organization) | (Primary Standard Industrial<br> Classification Code Number) | (I.R.S. Employer<br> Identification Number) |

---

**Safepoint Holdings, Inc.** 

**4010 Gunn Highway** 

**Tampa, Florida 33618** 

**(877)-858-7445** 

(Address, including zip code, and telephone number, including

area code, of Registrant's principal executive offices)

**David M. Flitman** 

**Chief Executive Officer** 

**Safepoint Holdings, Inc.** 

**4010 Gunn Highway** 

**Tampa, Florida 33618** 

**(877)-858-7445** 

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

**Copies to:** 

---

| | |
|:---|:---|
| **Matthew B. Stern**<br> **Willkie Farr & Gallagher LLP**<br> **787 Seventh Avenue**<br> **New York, New York 10019**<br> **(212) 728-8000** | **Marc D. Jaffe**<br> **Jason M. Licht**<br> **R. Charles Cassidy III**<br> **Latham & Watkins LLP**<br> **1271 Avenue of the Americas**<br> **New York, New York 10020**<br> **(212) 906-1200** |

---

**Approximate date of commencement of proposed sale to the public:** 

**As soon as practicable after this registration statement becomes effective.** 

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

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

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

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

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

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☐ <br> Emerging growth company ☒

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

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

------

##### [**Table of Contents**](#toc)
**The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.** 

**Subject to Completion, Dated May 8, 2026** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Shares**![LOGO](g73198g01a01.jpg)

**Safepoint Holdings, Inc.** 

**Common Stock** 

This is an initial public offering of shares of common stock of Safepoint Holdings, Inc. We are offering shares of common stock. The selling stockholders identified in this prospectus are offering an additional shares of our common stock. We will not receive any proceeds from the sale of shares of our common stock by the selling stockholders.

Prior to this offering, there has been no public market for our common stock. It is currently estimated that the initial public offering price per share will be between $ and $. We have applied to list our common stock on the New York Stock Exchange (the "NYSE") under the symbol "SFPT." 

We are an "emerging growth company" as defined under U.S. federal securities laws and, as such, will be subject to reduced public company reporting requirements for this prospectus and future filings. See "*Prospectus Summary—Implications of Being an Emerging Growth Company*." 

**See "[Risk Factors](#rom73198_3)" beginning on page 28 to read about factors you should consider before buying shares of our common stock.** 

**Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.** 

---

| | | |
|:---|:---|:---|
|  | **Per Share** | **Total** |
|  Initial public offering price | $| $|
|  Underwriting discount(1) | $| $|
|  Proceeds, before expenses, to Safepoint Holdings, Inc.(2) | $| $|
|  Proceeds, before expenses, to the selling stockholders | $| $|

---

(1) See the section entitled "*Underwriting*" for additional information regarding compensation payable to
the underwriters.

(2) To the extent that the underwriters sell more than     shares of our common stock, the underwriters have
the option to purchase up to an additional     shares of common stock from the selling stockholders at the initial public offering price less the underwriting discount.

The underwriters expect to deliver the shares against payment in New York, New York on , 2026.

*Joint Bookrunning Managers* 

---

| | |
|:---|:---|
| **Deutsche Bank Securities** | **Morgan Stanley** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Keefe, Bruyette & Woods**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*A Stifel Company* | **Citizens Capital Markets** | **Piper Sandler** | **Truist Securities** | **William Blair** |

---

*Co-Managers* 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Regions Securities LLC** | **Academy Securities** | **Huntington Capital Markets** | **Synovus** | **Wedbush Securities** |

---

Prospectus dated , 2026.

------

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

---

| | |
|:---|:---|
|  [Prospectus Summary](#rom73198_1) | 1 |
|  [Summary Consolidated Financial and Other Data](#rom73198_2) | 25 |
|  [Risk Factors](#rom73198_3) | 28 |
|  [Special Note Regarding Forward-Looking Statements](#rom73198_4) | 73 |
|  [Use of Proceeds](#rom73198_5) | 75 |
|  [Dividend Policy](#rom73198_6) | 76 |
|  [Capitalization](#rom73198_7) | 77 |
|  [Dilution](#rom73198_8) | 79 |
|  [Management's Discussion and Analysis of Financial Condition And Results of Operations](#rom73198_9) | 82 |
|  [Business](#rom73198_10) | 128 |
|  [Regulation](#rom73198_11) | 156 |
|  [Management](#rom73198_12) | 167 |
|  [Executive Compensation](#rom73198_13) | 174 |
|  [Certain Relationships and Related Party Transactions](#rom73198_14) | 183 |
|  [Principal and Selling Stockholders](#rom73198_15) | 187 |
|  [Description of Capital Stock](#rom73198_16) | 189 |
|  [Description of Certain Indebtedness](#rom73198_17) | 194 |
|  [Shares Eligible for Future Sale](#rom73198_18) | 196 |
|  [Material U.S. Federal Income Tax Consequences to Non-U.S. Holders](#rom73198_19) | 199 |
|  [Underwriting](#rom73198_20) | 204 |
|  [Legal Matters](#rom73198_21) | 213 |
|  [Change In Accountants](#rom73198_22) | 214 |
|  [Experts](#rom73198_23) | 215 |
|  [Where You Can Find Additional Information](#rom73198_24) | 216 |
|  [Index to Consolidated Financial Statements](#rom73198_25) | F-1 |

---

**You should rely only on the information contained in this prospectus and any free writing prospectus that we may provide to you in connection with this offering. We, the selling stockholders and the underwriters, have not authorized anyone to provide you with different information or to make any other representations, and we, the selling stockholders and the underwriters take no responsibility for, and can provide no assurance as to the reliability of, any other information others may give you. We and the selling stockholders are offering to sell, and seeking offers to buy, shares of our common stock only under circumstances and in jurisdictions where it is lawful to do so. Neither we, the selling stockholders nor any of the underwriters are making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. You should not assume that the information contained in this prospectus is accurate as of any date other than its date. Our business, financial condition, results of operations and prospects may have changed since that date.** 

**For investors outside the United States: Neither we, the selling stockholders nor any of the underwriters have done anything that would permit this offering or the possession or distribution of this prospectus in any jurisdiction where action for those purposes is required, other than in the United States. Persons outside of the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the shares of our common stock and the distribution of this prospectus outside of the United States.** 

iii

------

##### [**Table of Contents**](#toc)
**TRADEMARKS, SERVICE MARKS AND TRADE NAMES** 

We own or license the trademarks, service marks and trade names that we use in connection with the operation of our business, including our domain names. Solely for convenience, any trademarks, service marks and trade names referred to in this prospectus are presented without the "<sup>®</sup>", "SM" and "<sup>™</sup>" symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensors to these trademarks, service marks and trade names. All trademarks, service marks and trade names appearing in this prospectus are the property of their respective owners.

**MARKET, RANKING, INDUSTRY AND OTHER DATA** 

The data included in this prospectus regarding markets, ranking and other industry information are based on published industry sources, and our own internal estimates are based on our management's knowledge and experience in the markets in which we operate. Data regarding the industry in which we compete and our market position and market share within this industry are inherently imprecise and are subject to significant business, economic and competitive uncertainties beyond our control, but we believe they generally indicate size, position and market share within this industry. Our own estimates are based on information obtained from our customers, suppliers, trade and business organizations and other contacts in the markets in which we operate. We are responsible for all of the disclosure in this prospectus, and we believe these estimates to be accurate as of the date of this prospectus or such other date stated in this prospectus. While we believe that each of the publications used throughout this prospectus is prepared by reputable sources, neither we nor the underwriters have independently verified market and industry data from third-party sources. While we believe our internal company research and estimates are reliable, such research and estimates have not been verified by any independent source. In addition, assumptions and estimates of our and our industry's future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "*Risk Factors.*" These and other factors could cause our future performance to differ materially from our assumptions and estimates. See "*Special Note Regarding Forward-Looking Statements.*" Neither we nor the underwriters can guarantee the accuracy or completeness of any such information contained in this prospectus.

**USE OF NON-GAAP FINANCIAL INFORMATION** 

This prospectus contains certain financial measures and ratios that are not required by, or presented in accordance with, generally accepted accounting principles in the United States ("GAAP"). We refer to these measures as "non-GAAP financial measures." We use these non-GAAP financial measures when planning, monitoring and evaluating our performance. We consider these non-GAAP financial measures to be useful metrics for our management and investors to facilitate operating performance comparisons from period to period.

The non-GAAP financial measures we use herein are defined by us as follows:

*Adjusted general expense ratio* is calculated by excluding the amortization of stock-based compensation and the amortization of intangible assets from general and administrative expenses. The total is then divided by managed premium. We believe using this ratio in conjunction with the closest corresponding GAAP metric provides greater insight into our cost structure and gives the reader a clearer view of what percentage of each premium dollar is

iv

------

##### [**Table of Contents**](#toc)
spent on general expense. Adjusted general expense ratio should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of Non-GAAP Financial Measures*" for a reconciliation of adjusted general expense ratio in accordance with GAAP.

*Insurance Services EBITDA and EBITDA margin* are non-GAAP metrics used by management, which we believe are useful to investors to measure the operational strength and performance of the Insurance Services segment. These metrics provide investors additional information about the Insurance Services segment's profitability for certain non-cash items, non-routine items we do not expect to continue at the same level in the future, as well as other items that are not core to the operations of the Insurance Services segment. By providing these measures, together with a reconciliation of the most directly comparable GAAP measure, we believe we are enhancing investors' understanding of the Insurance Services segment, as well as assisting investors in evaluating how well we are executing our strategic initiatives. Insurance Services EBITDA margin is calculated as Insurance Services EBITDA as a percentage of the Insurance Services total revenue. Insurance Services EBITDA and EBITDA margin should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP.

*Managed premium* is a non-GAAP financial measure used by management to provide useful information to investors to summarize the total volume of business being transacted under our management. Managed premium is defined as total amount of gross premiums written by our consolidated subsidiaries and other entities that we manage but do not consolidate under GAAP. Managed premium is calculated before the effects of reinsurance are added. By providing this measure, we believe that this allows investors to evaluate the full scale of our market presence and the efficiency of our customer acquisition and retention efforts. Managed premium should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP.

*Net operating income to Safepoint shareholders* is a non-GAAP financial measure used by management to evaluate the Company's operating performance and to facilitate period-to-period comparability. Net operating income to Safepoint shareholders is defined as net income attributable to the controlling interest, excluding the impact of certain items to the controlling interest that management believes are not indicative of the Company's core operating results. We calculate the tax impact only on adjustments that would be included in calculating our income tax expense using the estimated tax rate at which we received a deduction for these adjustments. Net operating income to Safepoint shareholders should not be considered in isolation or as a substitution for net income as reported in accordance with GAAP.

*Return on equity to Safepoint shareholders* is a non-GAAP financial measure used by management to provide useful information to investors about the profitability and capital efficiency available to our common stockholders. We define this non-GAAP as net income attributable to the controlling interest divided by the average of the beginning and ending shareholders**'** equity, excluding non-controlling interests. We believe using return on equity to Safepoint shareholders in conjunction with the closest corresponding GAAP metric provides a meaningful representation of the profitability by excluding non-controlling interests. Return on equity to Safepoint shareholders should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of Non-GAAP Financial Measures*" for a reconciliation of return on equity to Safepoint shareholders in accordance with GAAP.

v

------

##### [**Table of Contents**](#toc)
*Adjusted Reciprocal Exchanges segment combined ratio* is a non-GAAP metric used by management. While elements of the policyholder payments to the Reciprocal Exchanges contain premium and equity components, only the premium portion of the payment is included in the GAAP combined ratio. Management believes that including the entire policyholder payment to the Reciprocal Exchanges in the denominator of the Adjusted Reciprocal Exchanges segment combined ratio gives the reader a better understanding of the actual economics of the Reciprocal Exchanges segment. This metric is calculated by dividing the sum of the Reciprocal Exchanges' losses and underwriting expenses by the sum of its net earned premiums and the net subscriber contributions received during the year. Subscriber contributions are not considered revenue under GAAP and do not represent earnings from underwriting activities. These funds are capital in nature and may be subject to withdrawal by subscribers under certain conditions. The Adjusted Reciprocal Exchanges segment combined ratio should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP.

While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered supplemental in nature and is not meant to be a substitute for revenue or net income, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as comparative measures. For more information regarding these non-GAAP financial measures and a reconciliation of such measures to comparable GAAP financial measures, see "*Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of Non-GAAP Financial Measures*."

**GLOSSARY OF SELECTED INSURANCE AND OTHER TERMS** 

*Admitted*—Insurance issued by an insurer licensed to do business in the state in which the insured exposure is located. Admitted insurance companies are subject to various state laws that govern organization, capitalization, policy forms, rate approvals and claims handling. 

*Admitted insurer*—Formally licensed to operate by the insurance regulatory authority in the state where the company operates. Admitted insurance companies are subject to various state laws that govern organization, capitalization, policy forms, rate approvals and claims handling.

*AL DOI*—Alabama Department of Insurance, the principal regulator for insurance companies domiciled in the State of Alabama, including Cajun following its redomestication effective July 31, 2025.

*AM Best*—A.M. Best Company, Inc., a nationally recognized statistical rating organization that, among other things, rates the financial strength and claims paying ability of insurance and reinsurance companies.

*Attorneys-in-Fact—*Cajun AIF and Manatee AIF, our wholly owned attorneys-in-fact for Cajun and Manatee, respectively. The primary function of an attorney-in-fact is to manage a reciprocal insurer in exchange for a fee.

*BPO*—Business process outsourcing entities.

*Bylaws*—The amended and restated bylaws of Safepoint to be effective immediately prior to the closing of this offering.

vi

------

##### [**Table of Contents**](#toc)
*Cajun*—Cajun Underwriters Reciprocal Exchange, an Alabama domiciled reciprocal insurer managed by Cajun AIF. Cajun was originally domiciled in the State of Louisiana, and redomesticated to Alabama effective July 31, 2025.

*Cajun AIF*—Cajun Underwriters Risk Management, LLC is the attorney-in-fact for Cajun and is a wholly owned subsidiary of Safepoint Holdings.

*Captives*—Pompano Re Ltd., Canal Re Ltd., and Bobcat Re Ltd. which are our wholly owned Bermuda-based captive insurance companies that provide reinsurance to other members of the Safepoint group, including Safepoint Insurance, Cajun and Manatee. Canal Re Ltd. and Bobcat Re Ltd. are currently in the process of being run-off. Pompano Re Ltd. is currently our only Captive writing active business for members of the Safepoint group.

*Carriers*—The U.S. insurance company affiliates of Safepoint Holdings, consisting of Safepoint Insurance, Cajun and Manatee.

*Case reserves*—Losses and loss adjustment expense reserves established with respect to individual reported claims.

*Cede; ceding company*—When an insurance company purchases reinsurance for its liability from another party, it "cedes" business to the reinsurer and is referred to as the "ceding company."

*Certificate of Incorporation*—The amended and restated certificate of incorporation of Safepoint to be effective immediately prior to the closing of this offering.

*Certificates of authority*—A license granted by a state insurance department to operate as an admitted insurance company in that state.

*Combined ratio*—The sum of the loss ratio and the expense ratio. The combined ratio of an insurance company is generally viewed as an indication of the underwriting profitability of that insurance company, but does not take into account the effect of investing activities on net income.

*Commissions*—The fee paid to an agent or a broker for placing insurance or reinsurance, generally determined as a percentage (which may be fixed or variable) of the written premium.

*Controlling Interest*—Reflects the portion of income or loss and the corresponding equity that is attributable to Safepoint under GAAP for certain entities.

*Demotech*—Demotech, Inc., a nationally recognized statistical rating organization that provides financial strength ratings to insurance companies, including each of Safepoint Insurance, Cajun and Manatee.

*Direct premiums written*—Premiums written by an insurer during a given period.

*Dodd-Frank Act*—Dodd-Frank Wall Street Reform and Consumer Protection Act.

*Excess of Loss ("XOL") reinsurance*—Reinsurance that indemnifies the insured against all or a specified portion of losses in excess of a specified dollar or percentage loss ratio amount.

*Excess and surplus ("E&S")*—Excess and surplus lines insurance, which is generally not subject to all of the requirements of admitted insurers, such as policy forms and rates approvals.

vii

------

##### [**Table of Contents**](#toc)
*Expense ratio*—The ratio of underwriting, acquisition and other underwriting expenses net of commissions and other income to net earned premiums.

*Facultative reinsurance*—Facultative reinsurance is a specific reinsurance policy for which terms can be negotiated by the insurer and reinsurer on a specific risk.

*FHCF*—Florida Hurricane Catastrophe Fund, a state trust fund that provides reimbursements to residential property insurance companies for a portion of their catastrophic hurricane losses in the State of Florida.

*Financial strength rating*—The opinion of rating agencies regarding the financial ability of an insurance or reinsurance company to meet its financial obligations under its policies. It is generally necessary for insurers to maintain certain minimum financial strength ratings to continue writing business in the United States.

*FLOIR*—Florida Office of Insurance Regulation, the principal regulator for insurance companies domiciled in the State of Florida, including Safepoint Insurance and Manatee.

*Florida Citizens*—Florida Citizens Property Insurance Corporation.

*GAAP*—Generally Accepted Accounting Principles in the United States.

*Gross written premiums*—Total premiums recorded on the books of an insurer at the time an insurance policy is issued, before deductions for premiums ceded to reinsurers but excluding policy fees and subscriber contributions.

*IBNR; incurred but not reported*—Reserves for estimated loss and loss adjustment expenses that have been incurred by policyholders but not reported to the insurer or reinsurer, including unknown future developments on loss and loss adjustment expenses which are known to the insurer or reinsurer.

*In-force*—A policy is considered in-force during the entire time between the effective and expiration date. Note that a policy no longer in-force can still have open claims (and in some cases even IBNR claims) after the expiration date.

*In-force premiums*—Gross written premium for active insurance policies with coverage in effect as of the period end date. We view this as an important metric because it is an indicator of the size of our portfolio of in-force policies, as well as an indicator of the expected earned premium over the coming 12 months given our historical retention rates.

*Incurred losses*—The total losses sustained by an insurance company under a policy or policies, whether paid, unpaid or not reported.

*Industry-loss warranties*—Reinsurance contracts that provide coverage when insurance industry losses for a defined event exceed a certain pre-determined threshold.

*KBRA*—Kroll Bond Rating Agency, LLC, a nationally recognized statistical rating organization that provides financial strength ratings to insurance companies, including each of Safepoint Insurance, Cajun and Manatee.

*LDI*—Louisiana Department of Insurance, the principal regulator for insurance companies domiciled in the State of Louisiana, including Cajun until its redomestication from Louisiana to Alabama effective July 31, 2025.

viii

------

##### [**Table of Contents**](#toc)
*Loss adjustment expenses*—The expenses of settling claims, including field adjusting, cost containment, legal defense and other fees and the portion of general expenses allocated to claim settlement costs. Also known as claim adjustment expense.

*Loss development*—Increases or decreases in previously recorded losses and loss adjustment expenses over a given period of time.

*Loss ratio*—A ratio calculated by dividing losses and loss adjustment expenses by net premiums earned.

*Louisiana Citizens*—Louisiana Citizens Property Insurance Company.

*Managed premiums*—The volume of premium payments we are actively collecting and managing from our current, active customer base, which includes premiums for Safepoint Insurance and the Reciprocal Exchanges.

*Manatee*—Manatee Insurance Exchange, a Florida domiciled reciprocal insurer managed by Manatee AIF.

*Manatee AIF*—Manatee Risk Management LLC is the attorney-in-fact for Manatee and is a wholly owned subsidiary of Safepoint Holdings.

*MGA*—An acronym for a managing general agent, which is a third-party agent that receives delegated underwriting authority from a primary insurance company to write insurance risk on its behalf. As used in this prospectus, the term "MGA" refers generically to agents receiving this delegation of underwriting authority, including managing general underwriters, managing general agents, and/or program managers and any other entity in relation to which the term "MGA" is used in this prospectus may not fall within the regulatory definition of a "managing general agent" in the jurisdictions in which it operates.

*Model Holding Company Act and Regulation*—NAIC's Insurance Holding Company System Regulatory Act and Insurance Holding Company System Model Regulation.

*NAIC*—the National Association of Insurance Commissioners.

*Net earned premiums*—The earned portion of gross written premiums less the earned portion that is ceded to reinsurers during such period.

*Net written premiums*—Gross written premiums for a given period less premiums ceded to reinsurers during such period.

*Non-admitted lines* or *excess and surplus lines*—Policies generally not subject to regulations governing premium rates or policy language.

*Non-Controlling Interest*—Reflects the portion of income or loss and the corresponding equity that is not attributable to Safepoint under GAAP for certain entities which are consolidated for financial reporting, but are not owned by Safepoint shareholders.

*P&C*—Property and casualty insurance.

*Peak zone*—The specific peril and geographic area that produce the highest concentration of risk for an insurance company.

ix

------

##### [**Table of Contents**](#toc)
*Perils*—This term refers to the causes of possible loss in property insurance and reinsurance, such as earthquake, wind-storm, fire, hail, etc.

*Property insurance*—Insurance that covers property when damage, theft or loss occurs.

*Quota share reinsurance*—A form of reinsurance in which the reinsurer assumes an agreed percentage of each risk being reinsured and shares all premiums and losses in accordance with the reinsured.

*Reciprocal Exchanges*—Cajun and Manatee, each of which is a reciprocal insurance exchange, sometimes referred to as a reciprocal insurer or reciprocal exchange. A reciprocal insurance exchange is an insurance company established as an unincorporated association composed of its subscribing policyholders. A reciprocal insurance exchange has no equity securities and, therefore, has no parent company or legal owner. Because of the contractual relationships between Safepoint Holdings and the Reciprocal Exchanges, we consolidate the Reciprocal Exchanges for financial reporting purposes under GAAP as is presented in this prospectus. The equity of the Reciprocal Exchanges is reported separately from our total equity on the consolidated balance sheets in the financial statement line item labeled non-controlling interest, with a refundable portion of the Reciprocal Exchanges' subscriber contributions presented as temporary (mezzanine) equity on our consolidated balance sheet. Accordingly, because we have no direct economic equity interest in the Reciprocal Exchanges, our shareholders are largely insulated from the underwriting performance of the Reciprocal Exchanges and, accordingly, there is reduced variability in our financial results relative to a traditional risk-bearing insurance franchise.

*Reinstatement premiums*—A premium charged for the reinstatement of the amount of reinsurance coverage to its full amount reduced as a result of a reinsurance loss payment.

*Reinsurance*—The practice whereby one party, called the reinsurer, in consideration of a premium paid to it, agrees to indemnify another party, called the reinsured, for part or all of the liability assumed by the reinsured under a policy or policies of insurance which it has issued. The reinsured may be referred to as the original or primary insurer, the direct writing company, the ceding company or the cedent.

*Reinsurance retention*—The amount or portion of risk which an insurer or reinsurer retains or assumes for its own account. Losses, or a portion thereof, in excess of the retention level, are paid by the reinsurer. In proportional treaties, the retention may be a percentage of the original policy's limit. In excess of loss business, the retention is all or a portion of a dollar amount of loss.

*Return on equity*—Net income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period.

*Safepoint Holdings*—Safepoint Holdings, Inc., a Delaware corporation, which is our ultimate parent company and the registrant under this prospectus.

*Safepoint Insurance*—Safepoint Insurance Company, a Florida domiciled stock insurance company.

*State guaranty funds*—Funding mechanisms that are administered by a U.S. state to protect policyholders in the event that an insurance company defaults on benefit payments or becomes insolvent. The fund only protects beneficiaries of insurance companies that are licensed to sell in that state.

x

------

##### [**Table of Contents**](#toc)
*SEC*—Securities and Exchange Commission.

*Statutory accounting principles ("SAP")*—Those accounting principles and practices which provide the framework for the preparation of insurance company financial statements, and the recording of transactions, in accordance with the rules and procedures adopted by regulatory authorities, generally emphasizing solvency considerations rather than a going-concern concept of accounting.

*Surplus Notes*—The outstanding surplus notes issued by Cajun and Manatee with an outstanding aggregate principal amount of approximately $66.8 million as of December 31, 2025. As of December 31, 2025 we own $46.8 million aggregate principal amount of the Surplus Notes (excluding any surplus notes held by the other Reciprocal Exchange). See "*Description of Certain Indebtedness—Cajun Surplus Notes*" and "*Manatee Surplus Notes.*"

*Third-party administrators ("TPAs")*—Organizations that process insurance administration and/or claims for a separate entity.

*Underwriting*—The process of evaluating, defining, and pricing insurance risks including, where appropriate, the rejection of such risks and the acceptance of the obligation to pay the policyholder under the terms of the contract.

*Unearned premiums*—The portion of gross written premium that has not been earned.

xi

------

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

*This summary highlights selected information that is presented in greater detail elsewhere in this prospectus. This summary does not contain all of the information you should consider before investing in our common stock. You should read this entire prospectus carefully, including the sections titled "Risk Factors," "Special Note Regarding Forward-Looking Statements" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and our consolidated financial statements and the related notes included elsewhere in this prospectus before making an investment decision. Unless the context otherwise requires, the terms "Safepoint," "we," "us" and "our" refer to Safepoint Holdings, Inc. together with its consolidated subsidiaries. The term "Safepoint Holdings" refers to Safepoint Holdings, Inc., our holding company and the issuer of common stock in this offering, on a stand-alone basis. References to the "selling stockholders" refer to the selling stockholders named in this prospectus.* 

**Safepoint Holdings, Inc.** 

**Who We Are** 

Safepoint is a specialty homeowners and commercial insurance underwriter that manages all aspects of the insurance value chain in a capital efficient manner by leveraging a majority fee-based servicing platform. Safepoint is focused on delivering insurance in coastal markets such as Florida and Louisiana, as well as in other U.S. markets. We are a founder-led company that is majority-owned by its management, which we believe creates a strong alignment between the management team and our shareholders. Our management team consists of highly experienced insurance professionals with a shared vision to solve problems for stakeholders in underserved or dislocated property insurance markets. Our business strategy, which has been developed and tested since our founding in 2013, combines sophisticated actuarial analytics, risk management expertise and a low-cost operating model designed to provide better value to our customers across market cycles. We have an innovative organizational structure that combines the benefits of policyholder-owned reciprocal insurance exchanges that we manage as an attorney-in-fact in exchange for a service fee, with our wholly owned insurance company, Safepoint Insurance. As of December 31, 2025, the majority of our in-force premium, which was equal to $1,034.0 million as of such date, was originally placed with the Reciprocal Exchanges, and only 11% of our in-force premium as of such date was originally placed with Safepoint Insurance.

We have prudently grown our business over the last 12 years, while producing attractive risk-adjusted returns, which we believe validates the strength of our business model and risk selection. Many of Safepoint's competitors have not had the staying power to continue writing business in Florida, Louisiana and other U.S. Gulf Coast states, as they have lacked a disciplined approach to underwriting, risk management and expense control. We have assumed policies from other private insurers and depopulation programs of state-sponsored insurers, as well as from new business sales from our broad network of independent agents.

We are led by an entrepreneurial executive management team, with a focus on data-driven underwriting and prudent risk management through our robust and comprehensive reinsurance strategy. Our founder and chief executive officer, David Flitman, is a credentialed actuary who has held executive roles in large, global insurance and reinsurance companies during his more than 30 years of industry experience. The executive management team's actuarial and reinsurance focus and expertise form the basis of our business strategy, and meaningfully influence all aspects of our operations and culture.

------

##### [**Table of Contents**](#toc)
Our approach to insurance underwriting integrates pricing and cost drivers into our products at a policy level to ensure optimal risk-adjusted portfolio profitability. In order to determine whether an underwriting opportunity is attractive to us, we focus on evaluating the following three questions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Why does Safepoint have this opportunity and why are we best positioned to capitalize on it?* Insurance is very
competitive and commoditized. Focusing on certain overlooked segments increases our ability to effectively execute in the market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Do we have the data to properly evaluate the risks?* We must have sufficient data, proper tools, and the
requisite skills to evaluate, price, and hedge the risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Can we make our margins across a wide range of potential scenarios?* By focusing on specialized, less
competitive segments and not compromising on our risk evaluation and thresholds, we are able to achieve attractive profitability. **  

We use a highly granular and integrated approach to analyze the profitability of policies at the time of underwriting on an individual risk basis through the allocation of reinsurance costs and other loss and expense assumptions. Safepoint's underwriting and risk management strategy is supported by our use of both proprietary and vendor modeling tools. We actively monitor our portfolio and employ back-testing of past events to effectively evaluate blind spots and discover "unknown unknowns" and systematic parameter risks. One of the critical elements of this approach is to ingest and catalog detailed information relating to the individual risk to assess and reveal insights on the overall portfolio. Safepoint believes that the richness of our data and analytics serves as the foundation for our ability to consistently provide our agents and customers with fair pricing for dislocated, underserved and catastrophe prone areas.

A key pillar of our business strategy is risk hedging, where we continuously reassess and syndicate insurance risk to various capital providers, depending on market conditions, terms, availability and pricing. We believe our sustainable risk partnerships are emblematic of our prudent approach to risk management and support our ability to grow in existing and new markets. Safepoint employs catastrophe bonds, industry loss warranties and traditional reinsurance, well in excess of regulatory and rating agency requirements for purchasing protection, to conservatively hedge risk to ensure superior claims-paying resources. Safepoint typically purchases excess of loss reinsurance above a 1-in-250 year probable maximum loss and has never had an event or cluster of events exceed even half of its available reinsurance limit in a given accident year. We have sustained consistent support since inception from our reinsurance relationships and catastrophe bond investors. As of March 31, 2026, all of our reinsurance was purchased from reinsurers rated "A-" or better by AM Best or from capital markets-linked reinsurers, including fully collateralized reinsurers, and through the use of catastrophe bonds. 

We believe that, as a result of our strategy of deliberate and profitable growth, we are well positioned to take advantage of increasingly dislocated property insurance markets in the United States. We have organically increased gross written premiums over the five-year period ending December 31, 2025 from $188 million during the year ended December 31, 2021 to $927.2 million during the year ended December 31, 2025. During that period, we have transitioned from a risk-bearing balance sheet-owned insurance model to a predominantly insurance services model, whereby we receive fee income from the policyholder-owned Reciprocal Exchanges and third-party MGAs and insurance companies. For the years ended December 31, 2025 and December 31, 2024, we had net income attributable to controlling interest of $157.2 million and $41.3 million, respectively, income before income taxes for the

------

##### [**Table of Contents**](#toc)
Insurance Services segment of $114.9 million and $46.5 million, respectively, and income before income taxes for the Risk-Bearing Entities segment of $134.3 million and $49.9 million, respectively. For the three months ended March 31, 2026 and March 31, 2025, respectively, we had net income attributable to controlling interest of $48.0 million and $16.6 million, respectively, income before income taxes for the Insurance Services segment of $23.2 million and $23.2 million, respectively, and income before income taxes for the Risk-Bearing Entities segment of $42.8 million and $13.2 million, respectively.

We seek to continuously grow our business by increasing our market penetration, including in new geographies, and by developing new products which harness our core competencies where we believe we can generate attractive risk adjusted returns. We recently added E&S products and capabilities which we believe unlocks a larger, more nationwide footprint. Additionally, we believe our fee-based reciprocal exchange structure provides us with a meaningful competitive advantage relative to stock companies, particularly as pricing markets soften. The Reciprocal Exchanges are managed to optimize underwriting capital, as opposed to stock companies, which often focus on short term profits. The reciprocal exchanges' capital is partly supported by annual subscriber capital contributions equal to 10% of premiums. This capital subsidy and structure allows us the flexibility to provide competitive pricing to our policyholders across market cycles, while sustaining the requisite capital, and providing sustainable, recurring fee income.

The other elements of our plan to continue to grow earnings include: (a) expansion of our distribution capabilities via new channels, including wholesalers and third-party MGAs; (b) optimization of our reinsurance program based on our fast-growing capital base; and (c) expansion of our third party service relations with MGAs and carriers in exchange for fees.

**We Are an Insurance Services Platform** 

We operate a full stack insurance and underwriting services platform that combines the benefits of policyholder-owned reciprocal insurance exchanges, which we manage for a service fee, with our wholly owned stock insurance company, Safepoint Insurance. Accordingly, we believe that our business fundamentals and risk profile are different than a traditional insurance company.

Our insurance services platform is comprised of fee-generative businesses, collectively referred to as the "Safepoint MGA." The Safepoint MGA includes the Attorneys-in-Fact for the Reciprocal Exchanges and our licensed managing general agent (Safepoint MGA, LLC) for Safepoint Insurance and third-party clients. All of our employees and infrastructure are part of Safepoint MGA. Safepoint MGA earns fee income based on the premium managed for the Reciprocal Exchanges and third parties.

The largest element of our services platform is serving as the attorney-in-fact for the policyholders of the two reciprocal insurance exchanges: Cajun Underwriters Reciprocal Exchange (a Gulf Coast specialist) and Manatee Insurance Exchange (a Florida specialist). The reciprocal insurance exchanges are not legally owned by Safepoint, rather they are 100% owned by the policyholders. Because we have no direct economic equity interest in the Reciprocal Exchanges, Safepoint is not directly exposed to the risk of policies held by the Reciprocal Exchanges, and their earnings impact, and as a result we benefit from reduced variability in financial results. Our service platform issues and renews policies on behalf of the policyholders and is also responsible for the underwriting, policy administration and claims management of the Reciprocal Exchanges.

------

##### [**Table of Contents**](#toc)
Reciprocal insurance exchanges are different than stock and mutual insurance companies because they are unincorporated and are managed by a services company, referred to as an attorney-in-fact. Reciprocal insurance exchanges, often referred to simply as "reciprocals," are an association of policyholders, known as subscribers, who assume liabilities among themselves (subscribers operate as both the insured and insurers). Reciprocals have been an important part of the U.S. insurance landscape for nearly 150 years. Today, some of the most recognizable property and casualty insurance companies in the United States are structured as reciprocals, including Farmers, USAA, Erie Indemnity and PURE.

We also own an insurance company, Safepoint Insurance Company, and three Bermuda-based reinsurance captives. We use our Captives to write supplemental reinsurance for the Reciprocal Exchanges and Safepoint Insurance, which we believe gives us greater financial flexibility to self-reinsure based on the pricing and availability of reinsurance in the open market. While the reinsurance placed between our Captives and the Reciprocal Exchanges is eliminated in consolidation for GAAP, because the results of the Reciprocal Exchanges are classified as one-hundred percent non-controlling interests, the economic results are included as part of Safepoint's controlling interest. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations—Results by Operating Segment—Risk-Bearing Entities Segment*" for more information.

Beginning in 2023, Safepoint Insurance began renewing the majority of its Florida and Louisiana insurance business into the Reciprocal Exchanges. The tables below illustrate the transition of our gross written premium to the Reciprocal Exchanges, as of December 31 of the applicable year.

<u>Breakdown of our managed premiums over time (as of December 31 of the applicable year)</u> 

(1) Reflects post-elimination Risk-Bearing gross written premiums i.e., Safepoint Insurance gross written premiums

Set forth below is a simplified diagram of our organizational structure, immediately prior to and immediately following completion of the offering contemplated by this prospectus, which highlights our fee businesses, derived from our service agreements with the Reciprocal Exchanges. For a detailed legal organizational chart of Safepoint, please see "*Regulation*." All companies shown below within the holding company scope are 100% owned subsidiaries of

------

##### [**Table of Contents**](#toc)
Safepoint. We do not own the Reciprocal Exchanges, but derive an economic benefit from the fee income earned from such Reciprocal Exchanges.

![LOGO](g73198g65e65.jpg)

---

| | |
|:---|:---|
| 1 | As of the date hereof, approximately 75% of the common stock of Safepoint Holdings is owned by members of senior management and other employees of Safepoint, before giving effect to this offering. After giving effect to the sale of shares of our common stock in this offering, approximately [•]% of the common stock of Safepoint Holdings will be owned by members of senior management and other employees of Safepoint (or approximately [•]% if the underwriters' option to purchase additional shares is exercised in full). A 1% increase (decrease) in the number of primary shares offered at the assumed price would decrease (increase) senior management's and other employees of Safepoint's percentage ownership by approximately [•] percentage points, or by approximately [•] percentage points if the underwriters' option to purchase additional shares is exercised in full.  |

---

---

| | |
|:---|:---|
| 2 | This includes all stockholders other than management and employees as a group, none of whom owns more than 10%. After giving effect to the sale of shares of our common stock in this offering, approximately [•]% of the common stock of Safepoint Holdings will be owned by Other Stockholders (or approximately [•]% if the underwriters' option to purchase additional shares is exercised in full). A 1% increase (decrease) in the number of primary shares offered at the assumed price would decrease (increase) Other Stockholders' percentage ownership by approximately [•] percentage points, or by approximately [•] percentage points if the underwriters' option to purchase additional shares is exercised in full.  |

---

---

| | |
|:---|:---|
| 3 | All companies shown, other than the Reciprocal Exchanges, are 100% owned by Safepoint Holdings.  |

---

---

| | |
|:---|:---|
| 4 | As of December 31, 2025, we own $46.8 million aggregate principal amount of the Surplus Notes issued by the Reciprocal Exchanges (excluding any surplus notes held by the other Reciprocal Exchange). In addition, our wholly owned Captives provide reinsurance protection to the Reciprocal Exchanges. While we do not own the Reciprocal Exchanges, they are managed by the Attorneys-in-Fact. Because of the contractual relationships between Safepoint Holdings and the Reciprocal Exchanges, we consolidate the Reciprocal Exchanges for financial reporting purposes under GAAP as is presented in this prospectus.  |

---

Our innovative structure allows us to generate significant fee income through underwriting and other insurance services and we believe gives us greater balance sheet flexibility to grow our business in a capital efficient manner. Our capital efficiency is primarily derived from the underwriting capital of the Reciprocal Exchanges, which we do not legally own and which we do not assume direct economic equity risk or direct earnings exposure. The equity of the Reciprocal Exchanges ($86.3 million as of March 31, 2026) is not included as part of our total stockholders'

------

##### [**Table of Contents**](#toc)
equity ($302.9 million as of March 31, 2026), with $12.7 million (as of March 31, 2026) of the Reciprocal Exchanges' subscriber contributions included as temporary (mezzanine) equity on our consolidated balance sheet. Although we do not legally own the Reciprocal Exchanges, our fee income is dependent on the premium growth and continued financial strength of the Reciprocal Exchanges.

*Our Revenue Model* 

We have the three operating segments listed below. However, we generate revenue for the benefit of Safepoint shareholders through our Insurance Services and Risk-Bearing segments. While the Reciprocal Exchanges are an important value driver for our business as the primary source of our fee income streams in the Insurance Services segment, the economic results of the Reciprocal Exchanges are excluded from our net income attributable to controlling interest and shareholders equity attributable to controlling interest given the Reciprocal Exchanges are not legally owned by Safepoint.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Insurance Services*: Our insurance services platform, which we refer to as Safepoint MGA, receives fees based
on the premium managed for the Reciprocal Exchanges and third-party clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Risk-Bearing Entities*: Safepoint Insurance, an insurance company, which writes personal and commercial
policies for homeowners and small businesses; as well as our Bermuda-based reinsurance Captives that provide supplemental reinsurance to Safepoint Insurance and the Reciprocal Exchanges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reciprocal Exchanges: The Reciprocal Exchanges, which are insurance operations that we manage for a fee, but do not
legally own.

**Our Business** 

We write both personal and commercial property insurance and have expanded geographically beyond our initial focus on the Florida market (beginning in 2013) into other states, including Louisiana (beginning in 2015), Texas (beginning in 2015), Mississippi (beginning in 2020), Alabama (beginning in 2020), and California (beginning in 2024). We focus principally on writing homeowners, investment properties (dwelling fire), condo, wind-only and commercial coverages to individuals and businesses on an admitted basis. We see our range of product lines as a strength given the needs of property owners and business owners in challenging markets. Most of the business we write is concentrated on the coast of Florida and Louisiana.

The following charts set forth our managed in-force premium by state and class of business as of December 31, 2025:

---

| | |
|:---|:---|
| ![LOGO](g73198g67a01.jpg) | ![LOGO](g73198g67a02.jpg) |

---

------

##### [**Table of Contents**](#toc)
The insurance products we write through the Reciprocal Exchanges and Safepoint Insurance principally include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Homeowners insurance*: Provides financial protection to home and properties that are damaged. Homeowner's
insurance policies include protection for both the home and its property, as well as other buildings or structures on the property. Homeowners insurance also provides protection for most items located within the home or other structure. Policies
also provide liability coverage to protect policyholders that are held legally responsible (liable) for the injuries to others or to their property, which has a finite limit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Investment properties (dwelling fire)*: Provides financial protection to investment properties and to personal
properties that are damaged. Dwelling insurance covers the structure of the property and the personal property within. Dwelling insurance can be purchased to cover a primary residence, or a rental property or vacation property. Dwelling insurance
covers certain and specific perils and hazards that can damage the property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Commercial insurance*: Provides financial protection to commercial properties that are damaged, as well as
general liability and business interruption insurance to businesses. Safepoint Insurance generally writes commercial risks up to a policy limit of $15 million, gross of any reinsurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Homeowners—Condo insurance*: Provides financial protection to owners of condominium units that are
damaged. Condominium insurance policies include protection for the condominium unit. Condominium insurance also provides protection for most items located within the condominium unit. Policies also provide liability coverage to protect policyholders
that are held legally responsible (liable) for the injuries to others occurring in the condominium unit or to their property. The tables above also include wind-only policies within Homeowners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *California E&S*: Provides financial protection for landlords, homeowners and commercial auto policyholders
against climate and catastrophe risks.

Our insurance policies are originated primarily through three channels: (i) policies we assume from Florida Citizens Property Insurance Corporation ("Florida Citizens") and Louisiana Citizens Property Insurance Corporation ("Louisiana Citizens"), which are state-sponsored insurers, through participation in their legislatively-established "depopulation programs"; (ii) assuming large portfolios of policies from other private insurers, including from insurers in receivership; and (iii) voluntary policies, or new business, sold by licensed independent agents. As markets become challenged, a familiar pattern occurs: failing markets rely on residual facilities such as Florida Citizens and Louisiana Citizens, which have grown and depopulated in a cyclical pattern over time. As of December 31, 2025, we had approximately 299,000 policies in force, 73% of which were assumed from Florida Citizens and Louisiana Citizens, 7% of which were assumed from private insurers and 20% of which were sold by independent agents. Similar challenges are growing in other parts of the country. For example, California (CA FAIR Plan) and Texas (TWIA) have recently experienced significant growth.

------

##### [**Table of Contents**](#toc)
commercial property owners in their respective states who are unable to find insurance coverage in the private market. Florida Citizens and Louisiana Citizens are often referred to as "insurers of last resort" or "residual markets." For further information regarding take-out transactions with Florida Citizens and Louisiana Citizens, see "*Business—Take-Out Transactions*."

We are also focused on growing our voluntary business origination through independent agents, who are not exclusive to Safepoint, and seek to continue to expand and deepen these relationships as a part of our business strategy, particularly in underserved markets where property specialist underwriters like Safepoint are needed and benefit from the lack of capacity in the market. Safepoint's marketing and distribution strategy is to create and sustain relationships with like-minded agents on a selective basis that share our views of pragmatic and conservative underwriting. Safepoint employs a dedicated team of territorial agency managers to develop these successful partnerships, promote sales, and retain policyholders for the long-term. As of December 31, 2025, this agent network consists of approximately 6,000 non-exclusive independent agents.

Our in-house field and desk staff manage the entire lifecycle of a claim and exclusively service Safepoint's customer base allowing the team to build a more intimate knowledge of our policy forms, procedures and guidelines. Our claims administration team operates on the core principle of delivering prompt, fair and professional services to our policyholders in their time of need. Safepoint is able to maintain high quality service and control over the claims process because our claims administration is performed predominantly by an internal field staff of Safepoint employees, with supporting capacity from third-party adjusting firms for large catastrophe events.

**Our Industry** 

*Our Market Opportunity* 

Safepoint participates in the approximately $283 billion premium (as of December 31, 2025) U.S. personal and commercial lines property insurance market, with a focus on admitted lines in Florida and Louisiana. From 2019 to 2025, total direct written premium for the homeowner's insurance markets in Florida and Louisiana grew by approximately 80% and 70%, respectively, based on publicly available insurance industry regulatory filings. During the same period, Safepoint increased its combined market share across Florida and Louisiana from 0.8% to 1.9%.

We also believe there is an opportunity to expand into new states and into the E&S market, which represents approximately $105 billion in total U.S. premiums, as of December 31, 2025, while preserving our underwriting criteria, rating structure and reinsurance strategy to adequately protect the Company. For example, in California, during the three months ended March 31, 2026 and the year ended December 31, 2025, the Company had $2.2 million and $2.3 million, respectively, of California E&S gross written premium written by our wholly owned subsidiary. In addition, during the three months ended March 31, 2026 and the year ended December 31, 2025, the Company managed $20.5 million and $58.1 million, respectively, of California E&S gross written premium under a service contract underwritten by an unaffiliated carrier and received service fee income of $1.3 million and $3.6 million during each respective period.

Our evolution into a growing property insurance services company reached a significant inflection point in 2023 with the completion of a management buyout transaction led by David Flitman and other members of our senior management. Our senior management and other employees of Safepoint currently own approximately 75% of Safepoint's equity, before

------

##### [**Table of Contents**](#toc)
giving effect to the offering contemplated by this prospectus. We believe these transactions have better positioned us to pursue additional growth opportunities in our attractive target markets, while further reinforcing a strong alignment between management and its shareholders. For more information about the ClinchPoint transactions, see "*Certain Relationships and Related Party Transactions—Investment Agreement with ClinchPoint*."

*Significant Enhancements in Insurance and Reinsurance Markets* 

Over the last 40 years, there have been significant enhancements in the scope and scale of insurance and reinsurance operations, both within the U.S. and globally. Initial drivers, such as the growth of mass tort liability, altered the landscape of capital formation with the emergence of large offshore reinsurers in Bermuda in the 1990s and 2000s, which became a familiar, recurrent pattern for subsequent capital events.

Additional catalysts, including large events like Hurricane Andrew (1992), the September 11<sup>th</sup> Terrorist Attacks (2001) and Hurricanes Katrina, Rita and Wilma (2005), contributed to the growth of the specialist underwriters' market and the formation of new balance sheets; as well as the expanded use of other innovations in the insurance risk transfer space, such as captives, risk retention groups and the advent of the insurance-linked securities ("ILS") market, such as catastrophe bonds and sidecars.

As a form of risk segmentation and capital efficiency, reciprocal insurance exchanges have become more prevalent in recent company formation. For example, of the new insurance companies formed in Florida in the past three years, the majority are reciprocal insurance exchanges.

We are focused on delivering catastrophe-exposed property insurance in Florida, Louisiana and other markets that we believe are dislocated and present us with underwriting opportunities. As risk has grown, the industry has responded with capital formation and significant investments in analytical resources, including actuaries, data scientists, catastrophe modelers and other product innovators. As risk grows, so does the need for more sophistication to analyze and hedge risks appropriately. Safepoint was founded on these principles, and we believe we have risk professionals who have seen this evolution and contributed to the enhancements in these technologies.

*Depopulation Programs* 

We have taken advantage of opportunities presented by take-out transactions, with Florida Citizens and Louisiana Citizens offering us a large and attractive range of data for policies in Florida and Louisiana to screen and select only the risks that fit our underwriting and rating criteria. For this reason, take-out transactions with Florida Citizens and Louisiana Citizens, as well as policy assumptions from private insurers, have been highly efficient and successful channels of business origination for us. We believe we have a best-in-class underwriting platform for analyzing takeout portfolios and we are one of the industry leaders in total takeout policies assumed, with a proven policy assumption process that leads to potential growth opportunities when the Florida and Louisiana markets are most turbulent. For further information regarding take-out transactions with Florida Citizens and Louisiana Citizens, see "*Business—Take-Out Transactions*."

*Florida Market and Impact of Reforms* 

The insurance industry, particularly in the Florida market, has been recently challenged by growing social inflation, fraudulent and baseless claims and the proliferation of nuisance lawsuits.

------

##### [**Table of Contents**](#toc)
Accordingly, one of the primary challenges for Florida's property market in recent years has been the frequency and severity of litigated claims, particularly following hurricanes and tropical storms. In a January 2023 report, the FLOIR cited 2021 data showing that homeowners' insurance lawsuits in Florida constituted 76.0% of the U.S. national total by count, but homeowners' insurance claims opened in Florida only constituted 6.9% of the U.S. national total by count.

In response to these challenges, the State of Florida has recently enacted key legislative reforms, including restrictions on the assignment of benefits to third parties and repealing Florida's one-way attorney fee statutes. We believe these reforms have significantly altered the litigation environment and will be instrumental for the long-term sustainability and profitability of the Florida property insurance market.

The chart below illustrates the decline in the number of Safepoint Insurance's and Manatee's filed lawsuits for policy claims in Florida (by date of filing), as well as recent industry reforms in Florida, during a period when Safepoint Insurance and Manatee grew their policy count in Florida.

**Number of filed lawsuits for policy claims in Florida—Safepoint Insurance and Manatee (as of December 31, 2025)**![LOGO](g73198g70k70.jpg)

*Risk Segmentation and Hedging* 

We believe more effective risk management requires better portfolio management and optimization of ILS, use of more sophisticated actuarial techniques, better risk segmentation and

------

##### [**Table of Contents**](#toc)
the advent and the application of technology to deliver a more effective and nuanced product to the consumer. The use of ILS, such as catastrophe bonds, has been a significant driver for the insurance industry, including Safepoint, to channel risk to new investors outside of the traditional insurance/reinsurance market.

Another element of risk segmentation has been the evolution and growth in excess and surplus lines business. The non-admitted U.S. insurance market, also known as the E&S or excess and surplus lines market, is experiencing a period characterized by significant growth of $40.5 billion in 2019 to $104.5 billion in 2025, a compounded annual growth rate during such period of approximately 17%. E&S insurance focuses on insureds that generally cannot purchase insurance from standard market or admitted market insurers due to perceived risk related to their businesses. E&S carriers are generally permitted to tailor the terms of the insurance contract to suit the particular risk they are assuming. Also, E&S carriers are, for the most part, free of rate regulation. Recently, there has been a persistent and sustainable flow of business from the admitted market into the non-admitted E&S channels, resulting generally in compound rate increases across the E&S market in the United States. In addition, the macroeconomic and social environment continues to drive sustainable demand for specialized insurance solutions due to both increasing and more complex risks.

We believe Safepoint has well-positioned its insurance portfolios across the nexus of this dynamic risk environment, with our unique combination of an insurance services platform, capital efficient reciprocal insurance exchanges, E&S capabilities and conservative risk hedging.

**Our Competitive Strengths** 

We believe that we have several competitive strengths that allow us to grow our business profitably, including: 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Efficient Capital Structure with Reduced Earnings Volatility*** 

Unlike a traditional stock or mutual insurance carrier, the Reciprocal Exchanges have the ability to grow surplus organically through surplus contributions from policyholders, which provides third-party capital to support the Reciprocal Exchanges. We believe that the third-party capital in the form of our Non-Controlling Interest in the Reciprocal Exchanges helps provide us with greater economic insulation from the underwriting performance of the Reciprocal Exchanges and, accordingly, reduces the variability in our financial results. While we have underwriting authority and responsibility for administering policies and claims for the Reciprocal Exchanges, we do not have direct economic equity risk associated with these policies. Such direct economic equity risks are principally borne by the Reciprocal Exchanges, each of which is an association of subscriber policyholders. As part of our insurance services provided to the Reciprocal Exchanges, we purchase third-party reinsurance, on behalf of the Reciprocal Exchanges, designed to protect their balance sheets from multiple hurricanes and other tropical storms in any given year. For the risk management and other insurance services we provide the Reciprocal Exchanges, we earn fee income based on a percentage of the managed premium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Conservative Risk Management and Reinsurance Strategy*** 

Safepoint maintains multiple layers of risk hedges and protection against catastrophe and attritional losses through traditional reinsurance and alternative risk transfer, such as catastrophe bonds. We believe this disciplined approach has allowed Safepoint to preserve its

------

##### [**Table of Contents**](#toc)
capital and honor its commitments to policyholders, even following large hurricane events. Unlike many of our competitors, Safepoint has not had any prior year reserve deficiencies over the last five years. Although our approach may result in sacrificing an element of short-term profitability for long-term stability, we believe it is the reason we are in a strong position to pursue market opportunities and selectively assume competitor portfolios following catastrophe events. The table below sets forth the percentage of our historical third-party reinsurance limit in Florida that was impacted by hurricane or significant tropical storms. The reinsurance limit represents the maximum amount reinsurers are required to pay to the Carriers in the event of loss during any given year, while the historical utilization represents how much of that limit was paid to Safepoint. Safepoint typically purchases excess of loss reinsurance above a 1-in-250 year probable maximum loss and has never had an event or cluster of events exceed even half of its available reinsurance limit in a given accident year. We believe the ratio of the reinsurance limit that we purchase to the total insured value of our Florida policies, which was over 3.5% (as of September 30, 2025), is materially higher than many of our Florida peers (approximately 1%).

**Florida Reinsurance Limit vs. Historical Utilization ($mm)** 

**Represents the dollar amount of reinsurance limit purchased with respect to hurricanes and other named storms and the utilization of such limit from historical events**![LOGO](g73198g73y44.jpg)

(1) Safepoint FL represents the dollar amount of reinsurance limit purchased by the Carriers with respect to hurricanes and
other named storms affecting Florida.

(2) Safepoint xFL represents the dollar amount of reinsurance limit purchased by the Carriers with respect to hurricanes and
other named storms affecting states other than Florida.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Industry-Leading Expense Ratio via Streamlined, Tech-Enabled Processes*** 

We are focused on disciplined internal cost management, which we believe is a critical component of profitability in the property markets in which we operate and we believe differentiates us from many of our peers. Over the last several years, we have developed numerous in-house functions specifically tailored to our processes in order to reduce overall costs and produce better outcomes, including through the expansion of our claims administration and internal litigation teams. In addition, we utilize data-driven, actuarial analytics and advanced technologies, including artificial intelligence ("AI"), to define, measure and manage risk on a

------

##### [**Table of Contents**](#toc)
policy-by-policy basis. Our use of AI includes a recently designed and implemented Agency Relations Management System, which leverages modern cloud architecture to enhance the ease of doing business with Safepoint by streamlining communications and transactions with its network of independent insurance agencies. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Expense Ratio*" for more information.

Our success with tech-enabled processes has led to a meaningful reduction in our expense ratio. The chart below sets forth our net expense ratio and our adjusted general expense ratio for each of the years ended December 31, 2024 and December 31, 2025, which is the ratio of general and administrative expenses net of amortization of stock-based compensation and amortization of intangible assets as a percentage of gross written premiums.

**Net Expense Ratio and Adjusted General Expense Ratio<sup>(1)</sup> By Year**![LOGO](g73198g03k66.jpg)

(1) Non-GAAP financial measure. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations— Reconciliation of Non-GAAP Financial Measures*" for a reconciliation of the non-GAAP financial measure in accordance with their most applicable U.S. GAAP measure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Entrepreneurial Problem Solving Management Team*** 

We are entrepreneurial problem solvers who seek to take advantage of the opportunities stemming from the dislocation and lack of capacity in various markets, particularly the coastal U.S. property insurance market. We believe the expansion of our business in Louisiana is a prime example of how we have recently used this problem-solving skill set to grow our business. At the time of our expansion in Louisiana in 2021, the property insurance market in the state was significantly challenged following recent catastrophe events, including the ultimate failure of at least 10 insurance companies following Hurricane Ida. In December 2021, Safepoint assumed personal lines policies in Louisiana from two companies in receivership and one insolvent carrier. Safepoint Insurance assumed the risk on its balance sheet while it established a new venture, Cajun, one of the Reciprocal Exchanges. We raised new surplus from a combination of our own funds and third-party investors and purchased approximately $240.0 million of reinsurance limit in order to significantly increase our claims paying resources in the state. We believe that Safepoint and Cajun ultimately benefited approximately 50,000 policyholders from ending up in Louisiana Citizens, where they may have been subject to reduced coverage at higher prices.

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Disciplined Data-Driven Underwriting Approach*** 

We believe that our disciplined and data-driven approach to risk management has been a key driver of our profitability and sustainability in the catastrophe-exposed markets in which we operate. We have made strategic investments in predictive analytics and advanced pricing models, including a state-of-the-art Generalized Linear Modeling ("GLM") software which incorporates modern statistical and machine learning techniques to build pricing structures that are both more accurate and more adaptive. We believe these investments enhance our ability to segment risk, strengthen retention and respond quickly to market changes. By leveraging our differentiated access to unique data and technological innovations in underwriting, we believe we are able to maintain a competitive edge in our target markets and achieve a meaningful reduction in attritional loss ratio over time. Our integrated operations allow us to collaborate seamlessly across key stakeholders (underwriting, products, claims and legal) to proactively address risk exposures, including fraud-related loopholes, and evolve policy language in response to market dynamics, enhancing underwriting profitability and process efficiency.

The chart below illustrates the meaningful improvement in Safepoint's gross loss ratio (including paid losses, case reserves and IBNR reserves, but excluding reinsurance recoverables) for the last 10 accident years as of December 31, 2025. The bar graph in the chart below illustrates Safepoint's gross loss ratio by accident year, excluding hurricanes and other named storms. All figures are shown gross of inuring reinsurance recoveries.

**Gross Loss Ratio By Accident Year Excluding Named Storms<sup>(1)</sup>**![LOGO](g73198g67g67.jpg)

(1) For each of the years listed above, our gross loss ratio by accident year, including named storms, was as follows, without
giving effect to third party reinsurance recoveries: (i) 37.8% for 2014; (ii) 53.3% for 2015, (iii) 49.7% for 2016, (iv) 220.1% for 2017, (v) 41.9% for 2018, (vi) 34.5% for 2019, (vii) 68.1% for 2020, (viii) 122.3% for 2021, (ix) 76.2% for
2022, (x) 18.6% for 2023, (xi) 32.4% for 2024, and (xii) 18.0% for 2025.

(2) The percentages listed underneath the named storms represent the named storm's CAT loss ratio, calculated by
subtracting the gross loss ratio by accident year excluding named storms from the gross loss ratio by accident year, including named storms, as listed in footnote 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Strong Claims Administration , Integrated with Litigation Teams*** 

We believe that our dedicated claims administration and litigation teams, which have over 150 full-time employees, have been essential to containing our overall loss costs and loss

------

##### [**Table of Contents**](#toc)
adjustment expenses, and has led to a reduction in both the frequency and severity of claims. Additionally, Safepoint's claims operations are a critical element of our risk management strategy that has enabled us to consistently maintain sufficient reserves, with no adverse prior year development over the last five years. In addition, our in-house legal team, which includes experienced trial attorneys, manages all aspects of the legal process, including pleadings, discovery, mediation and trial. This alignment across claims and legal functions, as well as timely and quality claims services, helps manage litigation and defense costs. For more information on our claims administration, see "*Business—Claims Administration*."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Strong Visibility into Earnings Driven by High Policyholder Retention*** 

Historically we have enjoyed high levels of policyholder retention, which is defined as the level of policy and premium renewals of existing customers year over year. We believe high policyholder retention has provided a high degree of visibility into our earnings, particularly our recurring fee income streams. We believe our high policyholder retention rates are attributable in part to the challenging insurance markets in which we operate, including dislocated coastal property markets, which we believe are generally less sensitive to premium rate increases than other segments of property and casualty insurance. Policy and premium retentions are an important component of maintaining a stable and sustainable book of insurance business and generating sufficient managed premiums for our fee business. We plan to continue to focus on high levels of policyholder retention, while also maintaining the appropriate premium rate.

The following chart sets forth our policy and premium retention rates for each of the years from January 1, 2014 through December 31, 2025.

![LOGO](g73198g23a01.jpg)

(1) Premium retention in excess of 100% indicates an increase in premium.

------

##### [**Table of Contents**](#toc)
**Our Growth Strategies** 

The key aspects of our business strategy are: 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Growing Geographically Through Diversified Distribution Channels*** 

Safepoint leverages its management team's multi-faceted product underwriting expertise to broaden the scope of policyholder solutions by expanding both our product suite and distribution capabilities. Safepoint is expanding its distribution capabilities via new channels, including wholesalers and MGAs. Safepoint is selective in whom it chooses to partner with to access new markets, which we believe are all fully aligned with our competitive strengths. We continue to capture market share in admitted lines in Florida and Louisiana, while expanding nationally into new states and into the excess and surplus lines market. We have achieved such growth while maintaining our underwriting criteria, rating structure, and reinsurance strategy to adequately protect the Company in excess of a 1-in-250-year catastrophe event. As of February 1, 2026, we are licensed to write admitted insurance products in six states, granted approval to write excess and surplus lines products in 43 other states and awaiting approval in one additional state, with the goal of national positioning.

Macroeconomic and social environment trends continue to drive strong demand for specialized insurance solutions, due to both increasing and more complex risks. We have applied our risk management expertise in both the admitted as well as the E&S insurance markets. We have developed a mix of personal and commercial E&S offerings, with a near term focus on California, Nevada, Utah, Arizona, New Mexico, Colorado, Tennessee, Georgia, South Carolina, North Carolina and Hawaii. E&S offerings allow us to react quickly to changing market conditions and to accelerate the expansion of our business nationally as we do not have to go through the process of receiving required rate and policy form approvals from individual state regulators.

------

##### [**Table of Contents**](#toc)
The map below sets forth the U.S. admitted insurance licenses and E&S approvals, held or pending by the Reciprocal Exchanges or Safepoint Insurance as of March 31, 2026.

![LOGO](g73198g79a79.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Capitalize On Our Expertise in Catastrophe-Exposed Property Insurance Markets Through Industry Cycles*** 

Throughout our history, we have focused on deliberate growth in underserved, dislocated U.S. coastal property insurance markets in which we have sufficient expertise to underwrite business that is attractive on a risk-adjusted basis. By prioritizing these underserved, catastrophe-exposed markets, we plan to continue to build a strong presence and reputation as a reliable insurer in underserved segments. We believe this strategic capability enables us to expand our market share while maintaining a strong commitment to customer service and claims support. The foundation for this growth strategy is our risk hedging expertise, where we continuously reassess; for example, each year we evaluate the insurance risk we syndicate to various sources, depending on market conditions, terms, availability and pricing. Safepoint syndicates and conservatively hedges risk to protect its claims-paying resources through catastrophe bonds, industry loss warranties and traditional reinsurance well in excess of regulatory and rating agency requirements for purchasing protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Expand Fee Income From Third Parties Leveraging Safepoint ' s Platform*** 

We continue to expand our service relations with third-party MGAs and carriers in exchange for fees. For example, we manage all of the insurance administration functions of a third-party MGA, including writing $64.9 million of in-force premium as of March 31, 2026, with an unaffiliated carrier. This relationship, and others we seek to establish, allows us to leverage our

------

##### [**Table of Contents**](#toc)
platform to provide services for competitive rates, while achieving a compelling profit margin on the services revenue we receive. In addition, in this context we can benefit from the opportunity to track various markets and determine where it is prudent to deploy additional resources. We believe there is significant opportunity to expand our service offerings to other unaffiliated MGAs and carriers and drive additional growth in high margin fee income.

**Our Legal Structure**

Our organizational legal structure, immediately prior to and immediately following the offering contemplated by this prospectus, is summarized below. Each entity is wholly owned by its immediate parent, unless otherwise specified below. Cajun and Manatee are not legally owned subsidiaries of Safepoint because, as reciprocals, they are owned by their subscribers. Cajun and Manatee are managed by their Attorneys-in-Fact, which are wholly owned subsidiaries of Safepoint. Certain non-operating companies have been removed for presentation purposes.

![LOGO](g73198g71g71.jpg)

---

| | |
|:---|:---|
| 1 | As of the date hereof, approximately 75% of the common stock of Safepoint Holdings is owned by members of senior management and other employees of Safepoint, before giving effect to this offering. After giving effect to the sale of shares of our common stock in this offering, approximately [•]% of the common stock of Safepoint Holdings will be owned by members of senior management and other employees of Safepoint (or approximately [•]% if the underwriters' option to purchase additional shares is exercised in full). A 1% increase (decrease) in the number of primary shares offered at the assumed price would decrease (increase) senior management's and other employees of Safepoint's percentage ownership by approximately [•] percentage points, or by approximately [•] percentage points if the underwriters' option to purchase additional shares is exercised in full.  |

---

---

| | |
|:---|:---|
| 2 | This includes all stockholders other than management and employees as a group, none of whom owns more than 10%. After giving effect to the sale of shares of our common stock in this offering, approximately [•]% of the common stock of Safepoint Holdings will be owned by Other Stockholders (or approximately [•]% if the underwriters' option to purchase additional shares is exercised in full). A 1% increase (decrease) in the number of primary shares offered at the assumed price would decrease (increase) Other Stockholders' percentage ownership by approximately [•] percentage points, or by approximately [•] percentage points if the underwriters' option to purchase additional shares is exercised in full.  |

---

------

##### [**Table of Contents**](#toc)
**Our Corporate Information** 

Safepoint Holdings was formed under the laws of the State of Florida in May 2013 as Safepoint Holdings, LLC and converted to a Florida corporation on July 1, 2015. Prior to the completion of this offering, Safepoint Holdings redomesticated from a Florida corporation to a Delaware corporation on May 8, 2026. 

Our principal business office is located at 4010 Gunn Highway, Tampa, Florida 33618. Our website address is www.safepointins.com. Information contained on our website is not incorporated by reference into this prospectus, and such information should not be considered to be part of this prospectus.

Our design logo is owned by us or one of our subsidiaries. All other trademarks, service marks and trade names appearing in this prospectus are the property of their respective owners.

**Summary Risk Factors** 

Investing in our common stock involves risks, which are discussed more fully under "*Risk Factors*." You should carefully consider all the information in this prospectus, including under "*Risk Factors*," before making an investment decision. These risks include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• claims arising from unpredictable and severe catastrophe events could reduce our earnings and stockholders' equity
and limit our ability to underwrite new insurance policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the inability to purchase third-party reinsurance or otherwise expand our catastrophe coverage in amounts we desire on
commercially acceptable terms or on terms that adequately protect us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our risk management and loss limitation methods, including estimates and models, may fail to adequately manage our exposure
to losses from catastrophe events and our losses could be materially higher than our expectations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our losses and loss expense reserves may be inadequate to cover our actual losses, which could have a material adverse
effect on our financial condition, results of operations and cash flows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decline in our financial strength rating may adversely affect the amount of business we write;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unexpected changes in the interpretation of our coverage or provisions, including loss limitations and exclusions, in our
policies could have a material adverse effect on our financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our reinsurers may not reimburse us for claims on a timely basis, or at all, which may materially adversely affect our
business, financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our failure to accurately and timely pay claims could materially and adversely affect our business, financial condition,
results of operations, and prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse economic factors, including recession, inflation, periods of high unemployment or lower economic activity could
result in the sale of fewer policies than expected or an increase in the frequency of claims and premium defaults, or a combination of these effects, which, in turn, could affect our growth and profitability;

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the insurance business is historically cyclical in nature and we believe we are currently experiencing a relatively hard
market cycle, which may affect our financial performance and cause our operating results to vary from quarter to quarter and may not be indicative of future performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are subject to extensive regulation, which may adversely affect our ability to achieve our business objectives; failure
to comply with these regulations could subject us to penalties, including fines and suspensions, which may adversely affect our financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we identified material weaknesses in our internal controls over financial reporting and may identify additional material
weaknesses in the future or otherwise fail to maintain an effective system of internal controls, which may result in material misstatements of our consolidated financial statements or cause us to fail to meet our periodic reporting obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we could be adversely affected by the loss of one or more key personnel or by an inability to attract and retain qualified
personnel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our costs will increase as a result of operating as a public company, and our management will be required to devote
substantial time to complying with public company regulations.

**Implications of Being an Emerging Growth Company** 

We qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. As an emerging growth company, we may, for up to five years, take advantage of specified exemptions from reporting and other regulatory requirements that are otherwise applicable generally to public companies. These exemptions include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that the presentation in this prospectus needs to include only two years of audited financial statements and only two years
of related Management's Discussion and Analysis of Financial Condition and Results of Operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exception from compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of
2002, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduced disclosure about our executive compensation arrangements in our periodic reports, proxy statements and registration
statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exemptions from the requirements of holding non-binding advisory votes on executive
compensation or golden parachute arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exemption from compliance with the requirements of the Public Company Accounting Oversight Board regarding the
communication of critical audit matters in the auditor's report on financial statements.

We may take advantage of these provisions until we no longer qualify as an emerging growth company. We will cease to qualify as an emerging growth company on the date that is the earliest of: (i) the last day of our fiscal year following the fifth anniversary of the date of the completion of this offering, (ii) the last day of the fiscal year in which we have more than $1.235 billion in total annual gross revenues, (iii) the date on which we are deemed to be a "large accelerated filer" under the rules of the U.S. Securities and Exchange Commission, which

------

##### [**Table of Contents**](#toc)
means the market value of our common stock that is held by non-affiliates exceeds $700 million as of the prior June 30, or (iv) the date on which we have issued more than $1.0 billion of non-convertible debt over the prior three-year period. We may choose to take advantage of some but not all of these reduced reporting burdens. We have taken advantage of certain reduced reporting requirements in this prospectus. Accordingly, the information contained herein may be different than you might obtain from other public companies in which you hold equity interests.

In addition, under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to take advantage of the extended transition period to comply with new or revised accounting standards and to adopt certain of the reduced disclosure requirements available to emerging growth companies. As a result of the accounting standards election, we will not be subject to the same implementation timing for new or revised accounting standards as other public companies that are not emerging growth companies, which may make comparison of our financials to those of other public companies more difficult. As a result of these elections, the information that we provide in this prospectus may be different than the information you may receive from other public companies in which you hold equity interests. In addition, it is possible that some investors will find our common stock less attractive as a result of these elections, which may result in a less active trading market for our common stock and higher volatility in our share price.

------

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

Common stock offered by us shares

Common stock offered by the selling stockholders shares

Common stock outstanding after this offering shares

Option to purchase additional shares of common stock offered in this offering We have granted the underwriters an option, exercisable for 30 days from the date of this prospectus, to purchase from the selling stockholders up to an additional shares.

---

| | |
|:---|:---|
| Use of proceeds  | We estimate that the net proceeds to us from the sale of shares of our common stock in this offering will be approximately $ million (or approximately $ million if the underwriters' option to purchase additional shares is exercised in full) based upon the assumed initial public offering price of $ per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, and after deducting the estimated underwriting discounts and estimated offering expenses payable by us. We will not receive any of the proceeds from the sale of our common stock in this offering by the selling stockholders. |

---

The principal purposes of this offering are to increase our capitalization and financial flexibility, create a public market for our common stock and thereby enable access to the public equity markets for us and our stockholders. See "*Use of Proceeds*" for a more complete description of the intended use of proceeds from this offering.

Proposed NYSE trading symbol "SFPT"

---

| | |
|:---|:---|
| Voting  | Each share of our common stock entitles its holder to one vote on all matters to be voted on by stockholders generally. |

---

Risk factors You should read the section entitled "*Risk Factors*" and the other information included elsewhere in this prospectus for a discussion of some of the risks and uncertainties you should carefully consider before deciding to invest in our common stock.

---

| | |
|:---|:---|
| Dividend policy  | We anticipate paying a quarterly cash dividend on our common stock of $ per share beginning in the  |

---

------

##### [**Table of Contents**](#toc)
[third] quarter of 2026. We anticipate paying aggregate cash dividends of $ per annum on our common stock, resulting in an annual yield of [•%] based on a price of $ per share, which is the midpoint of the estimated price range set forth on the cover page of this prospectus. Our ability to pay dividends on our common stock may be limited by the terms of any future debt or preferred securities we may issue or any future credit facilities we may enter into. See the section entitled "*Dividend Policy*." <br>

---

| | |
|:---|:---|
| Directed Share Program  | At our request, the underwriters have reserved for sale, at the initial public offering price, up to % of the common stock offered by this prospectus for sale to our director, director nominees, officers and certain of our employees and other persons associated with us. The number of shares of our common stock available for sale to the general public will be reduced to the extent these individuals purchase such reserved shares. Any reserved shares that are not so purchased will be offered by the underwriters to the general public on the same basis as the other shares offered by this prospectus. Pursuant to the underwriting agreement, the sales will be made by Morgan Stanley & Co, LLC, an underwriter of this offering, through a Directed Share Program. If these persons purchase reserved common stock, it will reduce the number of shares of common stock available for sale to the general public. Any reserved shares of common stock that are not so purchased will be offered by the underwriters to the general public on the same terms as the other shares of common stock offered by this prospectus. Any shares sold in the Directed Share Program to a party who has entered into a lock-up agreement described above shall be subject to the provisions of such lock-up agreement. See the section entitled "*Underwriting—Directed Share Program*." |

---

The total number of shares of our common stock that will be outstanding after this offering includes [•] shares of common stock outstanding as of [•], 2026 and excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• [    ] shares of common stock underlying options outstanding to purchase
[    ] shares of common stock under our 2024 Stock Incentive Plan, or the 2024 Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• [    ] shares of common stock reserved for future issuance under our 2026 Stock Incentive
Plan, or the 2026 Plan, including for purposes of any grants to be made in connection with this offering and which will be increased by any shares of common stock that are underlying awards outstanding under the 2024 Plan (under which we will cease
granting awards upon the adoption of the 2026 Plan) that are canceled, forfeited, or settled in cash. Further, the total number of shares of common stock reserved and available for delivery under the 2026 Plan will be increased on the first day of
each of the fiscal years during the term of the 2026 Plan beginning with fiscal year 2027, in an

------

##### [**Table of Contents**](#toc)
amount equal to the lowest of (i) 3% of the Company's outstanding shares of common stock on the last day of the immediately preceding fiscal year, (ii) of the Company's shares of common stock and (iii) such number of shares of common stock as determined by our board of directors; and <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• [    ] shares of common stock reserved for future issuance under our 2026 Employee Stock
Purchase Plan, or the 2026 ESPP, and together with the 2026 Plan the "2026 Equity Compensation Plans," which will become effective in connection with this offering. Further, the total number of shares of common stock available for
issuance under the 2026 ESPP will be increased on the first day of each of the fiscal years during the term of the 2026 ESPP beginning with fiscal year 2027, in an amount equal to the lowest of (i) 1% of the Company's outstanding shares of
common stock on the last day of the immediately preceding fiscal year, (ii)    of the Company's shares of common stock and (iii) such number of shares of common stock as determined by our board of directors.

Unless otherwise indicated, this prospectus assumes or gives effect to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a     -for-     stock split of our common stock, which will become effective prior to
the completion of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the filing and effectiveness of our amended and restated certificate of incorporation to be effective immediately prior to
the closing of this offering, or our certificate of incorporation, and the adoption of our amended and restated bylaws to be effective immediately prior to the closing of this offering, or our Bylaws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no exercise by the underwriters of their option to purchase      additional shares of our common
stock.

------

##### [**Table of Contents**](#toc)
**SUMMARY CONSOLIDATED FINANCIAL AND OTHER DATA** 

The following tables present our summary consolidated financial and other data as of and for the periods indicated.

The summary consolidated statements of operations data for the three months ended March 31, 2026 and March 31, 2025 and fiscal years ended December 31, 2025 and 2024, and the summary consolidated balance sheet data as of March 31, 2026, December 31, 2025 and 2024 are derived from our annual consolidated financial statements included elsewhere in this prospectus. Our historical results are not necessarily indicative of the results that should be expected in any future period.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three<br>Months<br>Ended<br>March 31,**<br> **2026** | **Three<br>Months<br>Ended<br>March 31,**<br> **2025** | **$ Change** | **% Change** | **Year ended**<br>**December 31,<br>2025** | **Year ended**<br>**December 31,<br>2024** | **$ Change** | **% Change** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
|  Revenues: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross written premiums | $184134 | 183325 | 809 | 0.4% | $927238 | $642591 | 284647 | 44.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in gross unearned premiums | 46387 | 5015 | 41372 | 825.0% | (123948) | (114052) | (9896) | 8.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross earned premiums | 230521 | 188340 | 42181 | 22.4% | 803290 | 528539 | 274751 | 52.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded earned premiums | (76032) | (83376) | 7344 | -8.8% | (325413) | (290549) | (34864) | 12.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 154489 | 104964 | 49525 | 47.2% | 477877 | 237990 | 239887 | 100.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | 3136 | 1313 | 1823 | 138.8% | 6680 | 4792 | 1888 | 39.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 7989 | 4445 | 2087 | 47.0% | 24939 | 13802 | 11137 | 80.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized investment loss | (400) |  | (400) | -100.0% |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 2802 | 1699 | 1103 | 64.9% | 6836 | 5398 | 1438 | 26.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 168016 | 112421 | 55595 | 49.5% | 516309 | 262159 | 254150 | 96.9% |
|  Expenses |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses, net | 45491 | 40584 | 4907 | 12.1% | 145275 | 136050 | 9225 | 6.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy acquisition costs, net of ceding commissions | 20285 | 10971 | 9314 | 84.9% | 59158 | 38877 | 20281 | 52.2% |

---

------

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

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three<br>Months<br>Ended<br>March 31,**<br> **2026** | **Three<br>Months<br>Ended<br>March 31,**<br> **2025** | **$ Change** | **% Change** | **Year ended**<br>**December 31,<br>2025** | **Year ended**<br>**December 31,<br>2024** | **$ Change** | **% Change** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 27088 | 13827 | 13261 | 95.9% | 74394 | 52262 | 22132 | 42.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 2483 | 1756 | 727 | 95.9% | 10089 | 4744 | 5345 | 112.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on debt extinguishment |  | 8873 | (8873) | -100.0% | 8873 |  | 8873 | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 95347 | 76011 | 19336 | 25.4% | 297789 | 231933 | 65856 | 28.4% |
|  Income before income taxes | 72669 | 36410 | 36259 | 99.6% | 218520 | 30226 | 188294 | 623.0% |
|  Provision for income tax expense | 17250 | 8820 | 8430 | 95.6% | 52937 | 5970 | 46967 | 786.7% |
|  Net income | 55419 | 27590 | 27829 | 100.9% | 165583 | 24256 | 141327 | 582.6% |
|  Net income (loss) from non-controlling interest | 7386 | 11036 | (3650) | -33.1% | 8367 | (17026) | 25393 | -149.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income attributable to controlling interest** | $48033 | $16554 | 31479 | 190.2% | $157216 | $41282 | 115934 | 280.8% |
|  Key Operating and Financial Metrics: |  |  |  |  |  |  |  |  |
| (1) Net operating income to Safepoint shareholders | $48755 | $23678 |  |  | $165645 | $40033 |  |  |
| (1) Managed premium | $989916 | $736922 |  |  | $985298 | $653551 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance Services revenue | $36150 | $33176 |  |  | $161749 | $76455 |  |  |
| (1) Insurance Services EBITDA | $23553 | $23429 |  |  | $115956 | $47821 |  |  |
| (1) Insurance Services EBITDA Margin | 65.2% | 70.6% |  |  | 71.7% | 62.5% |  |  |
| (1) Adjusted general expense ratio | 7.8% | 6.4% |  |  | 6.9% | 6.5% |  |  |
| (1) Return on equity to Safepoint shareholders | 88.4% | 82.8% |  |  | 103.5% | 63.5% |  |  |
| (1) Adjusted Reciprocal Exchange combined ratio | 70.8% | 30.1% |  |  | 70.2% | 81.5% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities loss ratio | 23.1% | 28.1% |  |  | 20.1% | 44.3% |  |  |

---

------

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three<br>Months<br>Ended<br>March 31,**<br> **2026** | **Three<br>Months<br>Ended<br>March 31,**<br> **2025** | **$ Change** | **% Change** | **Year ended**<br>**December 31,<br>2025** | **Year ended**<br>**December 31,<br>2024** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities expense ratio | 38.5% | 60.4% |  |  | 45.9% | 41.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities combined ratio | 61.6% | 88.5% |  |  | 66.0% | 85.9% |

---

(1) Non-GAAP financial measure. See "*Reconciliation of Non-GAAP Financial Measures*" for a reconciliation of
the non-GAAP financial measure in accordance with their most applicable U.S. GAAP measure.

You should read this data together with our audited consolidated financial statements and related notes, as well as the information under the caption "*Management's Discussion and Analysis of Financial Condition and Results of Operations*," included elsewhere in this prospectus.

------

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

*An investment in our common stock involves a certain degree of risk. In deciding whether to invest, you should carefully consider the following risk factors, as well as the financial and other information contained in this prospectus, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes. Any of the following risks could have an adverse or material effect on our business, financial condition, results of operations or prospects and cause the value of our stock to decline, which could cause you to lose all or part of your investment. Additional risks and uncertainties of which we are unaware, or that we currently deem immaterial also may become important factors that affect us.* 

**Risks Related to Our Business and Industry** 

**If the management fee rate earned by the Attorneys-in-Fact is reduced or if there is a significant decrease in the amount of premiums written by the Reciprocal Exchanges, our revenues and profitability could be materially adversely affected.** 

We are dependent upon management fees we earn from the Reciprocal Exchanges, which represented $158.2 million in revenue for the year ended December 31, 2025 (which is ultimately eliminated in consolidation for GAAP). In accordance with the attorney-in-fact agreements with the policyholders of the Reciprocal Exchanges, we currently earn an annual fee equal to 17% of the gross written premiums plus 3% of gross earned premiums of the Reciprocal Exchanges. Any reduction in the gross written premiums of the Reciprocal Exchanges and/or the management fee rate, whether as a result of insurance losses, a loss of financial strength ratings, a regulatory action, change in applicable law, whether or not described herein, could have a negative effect on our revenues and net income attributable to controlling interest.

**We have exposure to unpredictable and severe catastrophes, including those caused by global climate change, which could reduce or eliminate our earnings and stockholders' equity and limit our ability to underwrite new insurance policies.** 

Our insurance operations expose us to claims arising from unpredictable catastrophe events, such as hurricanes, tropical storms, severe thunderstorms, earthquakes, floods, wildfires, sink-holes, hail and other severe events. Furthermore, the actual occurrence, frequency and magnitude of such events are uncertain. Over the past several years, changing weather patterns and climatic conditions, such as rising average global temperatures, have added to the unpredictability and frequency of natural disasters in certain parts of the world, including the markets in which we operate. This may include catastrophes in markets where we have only recently begun to insure against loss, such as in California, where devastating wildfires have become a regular occurrence and have caused a significant amount of residential and commercial property loss and damage. Climate change may increase the frequency and severity of extreme weather events. This effect has led to conditions in the ocean and atmosphere, including warmer-than-average sea-surface temperatures and low wind shear that increase hurricane activity. Hurricane activity typically increases between June and November of each year, though the actual occurrence and magnitude of such events is uncertain. The occurrence of a natural disaster or other catastrophe loss could materially adversely affect our business, financial condition, and results of operations. Additionally, any increased frequency and severity of such weather events, including hurricanes, could have a material adverse effect on our ability to predict, quantify, reinsure and manage catastrophe risk, which may materially increase our losses resulting from such catastrophe events.

------

##### [**Table of Contents**](#toc)
The extent of losses from catastrophes is a function of both the frequency and severity of the insured events and the total amount of insured exposure in the areas affected. The frequency and severity of catastrophes are inherently unpredictable and the occurrence of one catastrophe does not make the occurrence of another catastrophe more or less likely. Increases in the replacement cost of insured property due to higher material and labor costs, increases in concentrations of insured property, the effects of inflation, and changes in cyclical weather patterns may increase the severity of claims from catastrophe events in the future. Claims from catastrophe events could reduce our earnings and cause substantial volatility in our results of operations for any fiscal quarter or year, which could materially adversely affect our financial condition, possibly to the extent of eliminating our total stockholders' equity, and/or our financial strength ratings. Our ability to underwrite new insurance policies could also be materially adversely impacted.

**Our loss reserves are estimates and may be inadequate to cover our actual liability for losses, causing our results of operations to be adversely affected.** 

We maintain reserves, also referred to as loss reserves, to cover estimated liabilities for unpaid losses and loss expenses, including legal and other fees as well as other claims settlement costs, for reported and unreported claims incurred as of the end of each accounting period. Loss reserves do not represent an exact calculation of liability. Rather, loss reserves represent an estimate of what the Company's ultimate settlement and administration of claims is expected to cost. These estimates, which generally involve actuarial projections, are based on the assessment of facts and circumstances then known, as well as estimates of future trends in claims severity, frequency, judicial theories of liability and other factors. The variables described above are affected by both internal and external events, such as claims handling procedures, inflation, judicial and litigation trends and legislative changes. Additionally, there may be a significant delay between when a loss event occurs and the time it is reported to us. As a result, estimates of loss associated with specific claims can increase as new information emerges, and our projections and our estimates may be inaccurate, which in turn may cause our actual losses to exceed our loss reserves and cause the reserves for the claim to become inadequate. If our actual losses exceed our loss reserves, our financial results, our ability to expand our business and to compete in the property and casualty insurance industry may be negatively affected.

Factors that affect unpaid losses and loss adjustment expenses include the estimates made on a claim-by-claim basis known as "case reserves" coupled with bulk estimates known as "incurred but not yet reported" (or "IBNR") loss reserves. Periodic estimates by management of the ultimate costs required to resolve all claims are based on our analysis of historical data and estimations of the impact of numerous factors such as (i) factual information for each claim; (ii) industry and company historical loss experience and development patterns; (iii) legislative enactments, judicial decisions, legal developments in the awarding of damages and changes in political attitudes; and (iv) trends in general economic conditions, including the effects of inflation. Management revises its estimates based on the results of its analysis. This process assumes that past experience, adjusted for the effects of current developments and anticipated trends, is an appropriate basis for estimating the ultimate resolution of all claims. There is no precise method for subsequently evaluating the impact of any specific factor on the adequacy of the reserves, because the eventual redundancy or deficiency is affected by multiple factors.

Because of the inherent uncertainties in the reserving process, we cannot be certain that our reserves will be adequate to cover our actual losses and loss adjustment expenses. If our reserves for unpaid losses and loss adjustment expenses are less than actual losses and loss adjustment expenses, we will be required to increase our reserves with a corresponding reduction in our net income in the period in which the deficiency is identified. Future loss

------

##### [**Table of Contents**](#toc)
experience substantially in excess of our reserves for unpaid losses and loss adjustment expenses could substantially harm our results of operations and financial condition and financial strength ratings.

**Our insurance company affiliates are subject to minimum capital and surplus requirements, and our failure to meet these requirements could subject us to regulatory action.** 

Our Carriers are subject to risk-based capital standards and other minimum capital and surplus requirements imposed under applicable state laws, currently the laws of Florida for Safepoint Insurance and Manatee and Alabama for Cajun. Florida's risk-based capital standards, based upon the NAIC's Risk-Based Capital for Insurers Model Act, require Safepoint Insurance to report its results of risk-based capital calculations to the insurance regulatory commission of its state of domicile and the NAIC. These risk-based capital standards provide for different levels of regulatory attention depending upon the ratio of an insurance company's total adjusted capital, as calculated in accordance with NAIC guidelines, to its authorized control level risk-based capital. Authorized control level risk-based capital is determined using the NAIC's risk-based capital formula, which measures the minimum amount of capital that an insurance company needs to support its overall business operations.

An insurance company with total adjusted capital that is less than 200% of its authorized control level risk-based capital is at a company action level, which would require the insurance company to file a risk-based capital plan that, among other things, contains proposals of corrective actions the company intends to take that are reasonably expected to result in the elimination of the company action level event. Additional action level events occur when the insurer's total adjusted capital falls below 150%, 100%, and 70% of its authorized control level risk-based capital. The lower the percentage, the more severe the regulatory response, including, in the event of a mandatory control level event (total adjusted capital falls below 70% of the insurer's authorized control level risk-based capital), placing the insurance company into receivership.

In addition, our Carriers are required to maintain certain minimum capital and surplus and to limit their written premiums to specified multiples of its capital and surplus. Our Carriers could exceed these ratios if their volume increases faster than anticipated or if their surplus declines due to catastrophe or non-catastrophe losses or excessive underwriting and operational expenses.

Florida law requires a residential property writer to maintain surplus of the greater of $15.0 million or 10% of its liabilities. As of December 31, 2025, Safepoint Insurance held surplus of $108 million. Florida law also restricts the ratio of written premiums to policyholder surplus to 10 to 1 on a gross basis and 4 to 1 on a net of reinsurance basis. For the year ending December 31, 2025, Safepoint Insurance's gross and net written premiums to policyholder surplus ratios were 1.0 to 1 and 0.58 to 1, respectively. For the year ending December 31, 2025, Manatee's gross and net written premiums to policyholder surplus ratios were 5.9 to 1 and 1.9 to 1, respectively.

Alabama law requires reciprocal insurers domiciled in Alabama and transacting property and casualty insurance for less than five years to maintain a surplus of at least $1.25 million. As of December 31, 2025, Cajun held surplus of $58.4 million.

Any failure by Safepoint Insurance, Cajun or Manatee to meet the risk-based capital or minimum statutory capital requirements or the writings ratio limitations imposed by applicable state insurance regulations could subject it to further examination or corrective action imposed by state regulators, including limitations on our writing of additional business, state supervision or rehabilitation or liquidation.

------

##### [**Table of Contents**](#toc)
Any changes in existing risk-based capital requirements, minimum statutory capital requirements, or applicable writings ratios may require us to increase our statutory capital levels, which we may be unable to do.

**Because our insurance operations are geographically concentrated, any single catastrophic event, or a series of such events, or other condition affecting losses in the U.S. coastal states in which we operate could adversely affect our financial condition and results of operations.** 

Our insurance operations are geographically concentrated in Florida and the other U.S. gulf states. As of December 31, 2025, 94% of our policies (measured by in-force premium, excluding unaffiliated managed premium) insured customers in Florida and/or Louisiana. In addition, our business is geographically concentrated along the coast. Florida has 1300 miles of linear coast, Louisiana and Texas each have over 300 miles of linear coast. While 95% of our insurance portfolio (by policy count) insures risks within 50 miles of the coast, we employ catastrophe loss models to manage risk concentrations among other physical parameters. A single catastrophic event, or a series of such events, destructive weather patterns, general economic trends, regulatory developments or other conditions specifically affecting such states, particularly along the coastal areas, could have a disproportionately adverse impact on our business, financial condition and results of operations. Further, as compared to our competitors who operate on a wider geographic scale, any adverse changes in the regulatory environment affecting property and casualty insurance in Florida or Louisiana may expose us to more significant risks. In the event of such catastrophes, the laws and regulations of Florida and Louisiana, as well as of other states where we are regulated to do business, may restrict or prevent us from taking actions to reduce our exposure to losses related to such catastrophes. For example, we may be prevented from using non-renewals or cancellations to limit our exposure following a catastrophe, may be required to provide additional advance notice of non-renewals and cancellations, or may be subject to rate change delays or limits or may be prevented from exiting a market that has become unprofitable.

In addition, changes in the prevailing regulatory, legal, economic, political, demographic or competitive environment, and other conditions in such states could also make it less attractive for us to do business in those states and would have a more pronounced effect on our business than it would on other insurance companies that are more geographically diversified than we are.

**Increased competition, competitive pressures, industry developments and market conditions could affect the growth of our business and adversely impact our financial results.** 

The property and casualty insurance industry in U.S. coastal states is highly competitive, and we believe it will remain highly competitive for the foreseeable future. We compete not only with other insurance corporations, but also with Florida Citizens, mutual companies, other underwriting organizations and alternative risk-sharing mechanisms. Our principal lines of business are written by numerous other insurance companies. We face competition from national and regional insurers, coastal specialists, new entrants and the residual market, such as Florida Citizens and Louisiana Citizens. Larger and more established national and regional insurance companies may have certain competitive advantages, including increased name recognition, increased loyalty of their customer base and reduced per policy acquisition costs. We compete for business not only on the basis of price, but also on the basis of financial strength, types of coverages offered, availability of coverage desired by customers, commission structure and quality of service to our policyholders and agents. We may have difficulty continuing to compete successfully on any of these bases in the future. Competition could limit our ability to retain existing business or to write new business at adequate rates, and such

------

##### [**Table of Contents**](#toc)
limitation may cause a material adverse effect on our results of operations and financial position. Because we are smaller than some of our competitors, we may lack the resources to increase or maintain our market share.

Further, the rapid evolution of AI and technology in general may alter the competitive landscape. While we expect to continue leveraging technology, data and analytics efficiently, it is possible that competitors will leverage AI and technology solutions more effectively, which may adversely impact our competitive position. Competitors could enter the insurance market and further accelerate these trends. Our competitive position could be adversely impacted if we are unable to deploy, in a cost-effective and competitive manner, technology or if our competitors collect and use data which we do not have the ability or access to utilize.

In addition, industry developments could further increase competition in our industry. These developments could include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an influx of new capital in the marketplace as existing companies attempt to expand their businesses and new companies
attempt to enter the insurance business as a result of better premium pricing and/or policy terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an increase in programs in which state-sponsored entities provide property insurance in catastrophe-prone areas; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the regulatory and political climate.

These developments and others could make the property and casualty insurance marketplace more competitive by increasing the supply of insurance available. If competition limits our ability to write new business at adequate rates, our future results of operations would be adversely affected.

**The insurance business is historically cyclical in nature, which may affect our financial performance and cause our operating results to vary from quarter to quarter and may not be indicative of future performance.** 

Historically, insurers have experienced significant fluctuations in operating results due to competition, frequency and severity of catastrophic events, levels of capacity, adverse litigation trends, regulatory constraints, volatility in investment results, general economic conditions and other factors. Increased pricing competition among insurers, which is sometimes referred to as a "soft market," can adversely affect revenue and profitability levels. As insurers recognize this situation (which can occur at different times, for different products and for different companies), the historical reaction has been for insurers to raise their rates (sometimes referred to as a "hard market") in an attempt to restore profitability to acceptable levels. As more insurers react in this way, profit levels in the industry may increase to a point where some insurers begin to lower their rates, starting the cycle over again. The ability to discern at any point in time whether we are in a "hard" or "soft" market is often difficult, as such a conclusion represents an assessment of innumerable data points including, among others, the operating results of, and the dynamic competitive actions taken by, us and many competitors in multiple markets involving a variety of products. Often, detailed information on our competitors becomes available on a delayed basis, and the nature of the market becomes apparent only in retrospect. Our ability to predict future competitive conditions is also constrained as a result.

The supply of insurance is related to prevailing prices, the level of insured losses and the level of capital available to the industry that, in turn, may fluctuate in response to changes in rates of return on investments being earned in the insurance industry. As a result, the insurance

------

##### [**Table of Contents**](#toc)
business historically has been a cyclical industry characterized by periods of intense price competition due to excessive underwriting capacity as well as periods when shortages of capacity increased premium levels. Demand for insurance depends on numerous factors, including the frequency and severity of catastrophic events, levels of capacity, the introduction of new capital providers and general economic conditions. All of these factors fluctuate and may contribute to price declines generally in the insurance industry.

We believe the coastal property insurance market is currently transitioning to a softer market cycle. However, we cannot predict with certainty whether market conditions will improve, remain constant or deteriorate. Negative market conditions may impair our ability to underwrite insurance at rates we consider appropriate and commensurate relative to the risk assumed. Additionally, negative market conditions could result in a decline in policies sold, an increase in the frequency of claims and premium defaults and an uptick in the frequency of falsification of claims. If we cannot underwrite insurance at appropriate rates, our ability to transact business will be materially and adversely affected. Any of these factors could lead to an adverse effect on our business, results of operations and financial condition.

**Our success and ability to grow our business depends on retaining and expanding our customer base. If we fail to add new customers or retain current customers, our business, results of operations and financial condition could be harmed.** 

We believe that the growth of our business and revenue depends upon our ability to retain our existing customers and add new customers in our current geographic markets and in the markets in which we expand. While we have experienced significant customer growth since we commenced operations, we may not be able to maintain this growth and our customer base could shrink over time.

Our ability to attract new customers and retain existing customers depends on our ability to continue providing positive insurance-buying and claims-filing customer experiences, competitive pricing and adequate insurance coverage. In order to maintain this reputation, we may be required to incur significantly higher marketing expenses, costs related to improving our service, and lower margins in order to attract new customers and retain existing customers. If we fail to remain competitive on customer experience, pricing and insurance coverage options, our ability to grow our business and generate revenue by attracting and retaining customers may be adversely affected.

There are many factors that could negatively affect our ability to grow our customer base, including if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we fail to effectively use search engines, social media platforms, content-based online advertising and other online
sources for generating traffic to our website;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential customers in a particular marketplace or more generally do not meet our underwriting guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our competitors mimic our digital platform or develop other innovative services, causing current and potential customers to
purchase their insurance products instead of our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we lose customers to new market entrants and/or existing competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we do not obtain regulatory approvals necessary for expansion into new markets or in relation to our products (such as
line, form, underwriting and rating approvals) or such approvals contain conditions that impose restrictions on our operations (such as limitations on growth);

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our digital platform experiences disruptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we suffer reputational harm to our brand resulting from negative publicity, whether accurate or inaccurate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we fail to expand geographically;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we fail to offer new and competitive products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• customers have difficulty installing, updating or otherwise accessing our website on mobile devices or web browsers as a
result of actions by us or third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• technical or other problems frustrate the customer experience, particularly if those problems prevent us from generating
quotes or paying claims in a fast and reliable manner; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are unable to address customer concerns regarding the content, data privacy and security of our digital platform.

Our inability to overcome these challenges could impair our ability to attract new customers and retain existing customers, and could have a material adverse effect on our business, results of operations and financial condition.

**Reinsurance coverage may not be available to us in the future at favorable rates or at all.** 

We purchase a significant amount of reinsurance from third parties that we believe enhances our business by reducing our exposure to potential catastrophe losses and reducing volatility in our underwriting performance, providing us with greater visibility into our future earnings. Reinsurance involves transferring, or ceding, a portion of our risk exposure on policies that we write to another insurer, the reinsurer, in exchange for a premium.

We primarily use treaty reinsurance, consisting of excess of loss ("XOL") coverage from traditional reinsurers, collateralized reinsurers and capital markets investors, in the form of catastrophe bonds. Additionally, we buy program specific reinsurance coverage on a quota share, property per risk or a facultative basis. Treaty coverage refers to a reinsurance contract that is applied to a group or class of business where all the risks written meet the criteria for that class. Facultative coverage refers to a reinsurance contract on individual risks as opposed to a group or class of business. Our catastrophe XOL treaties are divided into multiple layers.

For the 2026-2027 reinsurance program, we procured approximately $2.6 billion of limit protection after a $103 million retention for the first named storm occurrence with losses above retention and, in the aggregate, we have purchased over $3.8 billion of limit protection for first and subsequent named storms. The majority of the 2026-2027 reinsurance program expires on April 30, 2027, other than our catastrophe bonds, which are multi-year contracts, with the exception of the policies issued pursuant to Florida Hurricane Catastrophe Funds, which expire on June 1, 2027. We typically do not purchase significant amounts of reinsurance coverage for catastrophe events other than hurricanes and other tropical storms, and our XOL coverage is generally purchased on a per occurrence rather than an aggregate basis. Therefore, although we attempt to manage our exposure to catastrophes through our underwriting process and the purchase of reinsurance protection, an especially severe catastrophe or series of catastrophes could exceed our reinsurance protection and would have a material adverse impact on our results of operations and financial condition.

The reinsurance market historically has been a cyclical market characterized by periods of sufficient or excess capital (soft market cycle) as well as shortages of capital (hard market cycle).

------

##### [**Table of Contents**](#toc)
Market conditions have limited, and in some cases prevented, insurers from obtaining the types and amounts of reinsurance they consider adequate for their business needs. As a result, we may not be able to purchase reinsurance in the areas and for the amounts we desire or on terms we deem acceptable or at all. A hard market cycle may increase our cost of reinsurance, force us to increase our loss retention, or limit the amount of reinsurance we are able to purchase, all of which would have an adverse impact on our business and results of operations. Although the reinsurance market is transitioning from a harder market cycle to a softer market cycle, the extent and duration of such softer reinsurance market conditions are unknown and could be reversed due to financial market events or catastrophe losses.

**We may not be able to collect reinsurance amounts due to us from the reinsurers with which we have contracted.** 

Reinsurance is a method of transferring part of an insurance company's risk under an insurance policy to another insurance company. To the extent that our reinsurers are unable to meet the obligations they assume under our reinsurance agreements, we remain liable for the entire insured loss. We use reinsurance arrangements to limit and manage the amount of risk we retain, to stabilize our underwriting results and to increase our underwriting capacity. Our ability to recover amounts due from reinsurers under the reinsurance treaties we currently have in effect is subject to the reinsurance company's ability and willingness to pay and to meet its obligations to us. We attempt to select financially strong reinsurers with an AM Best or S&P rating of "A-" or better or we require the reinsurer to fully collateralize its exposure, such as in the case of our previous catastrophe bond issuances. While we monitor from time to time their financial condition, we also rely on our reinsurance broker and rating agencies in evaluating our reinsurers' ability to meet their obligations to us. Any failure on the part of any one reinsurance company to meet its obligations to us could have a material adverse effect on our financial condition or results of operations.

All residential and commercial insurance companies that write property and casualty business in Florida, including Safepoint Insurance and Manatee, are required to obtain reinsurance through the Florida Hurricane Catastrophe Fund, and this coverage comprises a portion of our reinsurance program. The limit and retention of the FHCF's reinsurance coverage is subject to upward or downward adjustment based on, among other things, submitted exposures to FHCF by all participants. We have also purchased private reinsurance alongside our FHCF layer to fill in gaps in coverage that may result from the adjustment of the limit or retention of our FHCF coverage; however, such private reinsurance will not cover any losses we may incur as a result of FHCF's inability to pay the full amount of our claims. If a catastrophic event occurs in Florida, FHCF may not have sufficient funds to pay all of its claims from insurance companies in full or in a timely manner. This could result in significant financial, legal and operational challenges to our Company. In the event of a catastrophic loss, FHCF's ability to pay may be dependent upon its ability to issue bonds in amounts that would be required to meet its reinsurance obligations. There can be no assurance that FHCF will be able to do this. While we believe FHCF currently has adequate capital and financing capacity to meet its reinsurance obligations, there can be no assurance that it will be able to meet its obligations in the future, and any failure to do so could have a material adverse effect on our liquidity, financial condition and results of operations.

**The "Safepoint" brand may not become as widely known as incumbents' brands or the brand may become tarnished.** 

Many of our competitors have brands that are well recognized. Since inception, we have spent a considerable amount of money and other resources to create brand awareness and build our reputation.

------

##### [**Table of Contents**](#toc)
We may not be able to build brand awareness, and our efforts at building, maintaining and enhancing our reputation could fail. There are many factors that, whether valid or not, could diminish confidence in our brand, which could adversely affect our reputation, business, results of operations and financial condition, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• complaints or negative publicity about our business practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our marketing and advertising campaigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our compliance with applicable laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the integrity of the data that we provide to customers or business partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• data privacy and security issues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• business practices or adverse financial developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• perceptions of our corporate governance or social responsibility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the conduct of our officers or employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the actions of a significant customer or other business with which we do business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other aspects of our business.

As we expand our product offerings and enter new markets, we must continue to establish our reputation in an expanded marketplace, and to the extent we are not successful in this endeavor, our business, results of operations and financial condition could be adversely affected. There can be no assurance that we will be able to maintain or enhance our reputation, and failure to do so could materially adversely affect our business, results of operations and financial condition. If we are unable to maintain or enhance consumer awareness of our brand cost-effectively, our business, results of operations and financial condition could be materially adversely affected.

The negative impacts of these or other events may be aggravated as consumers and other stakeholders increase their expectations regarding corporate conduct and responsibility. These impacts may be further complicated by the fact that their perceptions are formed through rapid and broad interactions using modern communication and social media tools over which we have no control. Any such event could decrease demand for our products, reduce our ability to recruit and retain employees and lead to greater regulatory scrutiny of our businesses.

**We may not be able to manage our growth effectively.** 

We intend to grow our business in the future, which could require additional capital, technology development, and skilled personnel. To grow effectively, we must be able to meet our capital needs and expand our systems, technology, and internal controls effectively. We also must allocate our human resources optimally, including identifying, hiring, and retaining qualified employees, and effectively incorporate the components of any businesses we may acquire in our effort to achieve growth. The failure to manage our growth effectively could have a material adverse effect on our business, financial condition and results of operations.

**Our success depends on our ability to accurately price the risks we underwrite.** 

Our results of operations and financial condition depend on our ability to underwrite and set premium rates accurately for a wide variety of risks. Rate adequacy is necessary to generate sufficient premiums to pay losses, loss adjustment expenses, reinsurance costs and underwriting expenses and to earn a profit. In order to price our products accurately, we must

------

##### [**Table of Contents**](#toc)
collect and properly analyze a substantial amount of data; develop, test and apply appropriate rating formulas; closely monitor and timely recognize changes in trends; and project both severity and frequency of losses with reasonable accuracy. Our ability to successfully perform these tasks, and as a result price our products accurately, is subject to a number of risks and uncertainties, some of which are outside our control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of sufficient reliable data and our ability to properly analyze available data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory delays in approving filed rate changes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the uncertainties that inherently characterize estimates and assumptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our selection and application of appropriate rating and pricing techniques;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in legal standards, claim resolution practices, and restoration costs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• legislatively imposed consumer initiatives.

In addition, we could underprice risks, which would negatively affect our profit margins. We could also overprice risks, which could reduce the number of policies we write and our competitiveness. In either event, our profitability could be materially and adversely affected.

**If our customers were to claim that the policies they purchased failed to provide adequate or appropriate coverage, we could face claims that could harm our business, results of operations and financial condition.** 

Although we aim to provide adequate and appropriate coverage under each of our policies, customers could purchase policies that prove to be inadequate or inappropriate. If such customers were to bring a claim or claims alleging that we failed in our responsibilities to provide them with the type or amount of coverage that they sought to purchase, referred to as error and omission claims ("E&O claims"), we could be found liable, resulting in an adverse effect on our business, results of operations and financial condition. Errors and omissions could include failure, whether negligently or intentionally, to place coverage on behalf of clients, to provide complete and accurate information relating to the risks being insured against or to appropriately apply funds that we hold on a fiduciary basis. It is not always possible to prevent or detect errors and omissions, and the precautions we take may not be effective in all cases. E&O claims often involve substantial amounts of money and, accordingly, can involve significant defense costs. While we maintain insurance coverage to protect us against liability from E&O claims, such coverage may be insufficient or inadequate. Additionally, prices for this insurance and the scope and limits of the coverage terms available are dependent on our claims history as well as market conditions that are outside of our control. While we endeavor to purchase coverage that is appropriate to our assessment of our risk, we are unable to predict with certainty the frequency, nature or magnitude of claims for direct or consequential damages or whether our errors and omissions insurance will cover such claims. In establishing liabilities for E&O claims, we utilize case level reviews by inside and outside counsel and an internal analysis to estimate potential losses. Liability for E&O claims is reviewed and adjusted as new developments warrant. Given the unpredictability of E&O claims and of litigation that could flow from them, it is possible that an adverse outcome in a particular matter could have a material adverse effect on our business, results of operations and financial condition or cash flow in a given quarterly or annual period.

**The inherent uncertainty of models and our reliance on such models as a tool to evaluate risk may have an adverse effect on our financial results.** 

We license analytic and modeling software from third parties to facilitate our pricing, assess our risk exposure and determine our reinsurance needs. Given the inherent uncertainty of

------

##### [**Table of Contents**](#toc)
modeling techniques and the application of such techniques, these models and databases may not accurately address the emergence of a variety of matters which might impact our exposure to losses. These models may understate the exposures we are assuming and our financial results may be adversely impacted, perhaps significantly.

These uncertainties can include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the models do not address all the possible hazard characteristics of a catastrophe peril (e.g., the precise path and wind
speed of a hurricane);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the models may not accurately reflect the true frequency or severity of events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the models may not accurately reflect a risk's vulnerability or susceptibility to damage for a given event
characteristic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the models may not account for unusual or unprecedented catastrophe events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the models may not adequately consider the impact of current inflation on the magnitude of modeled losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the models may not accurately represent loss potential to insurance or reinsurance contract coverage limits, terms and
conditions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the models may not accurately reflect the impact on the economy of the area affected or the financial, judicial, political,
or regulatory impacts on insurance claim payments during or following a catastrophe event.

As a result of these factors and contingencies, our reliance on assumptions and data used to evaluate our entire risk portfolio is subject to a high degree of uncertainty that could result in actual losses that are materially different from our modeled estimates and could adversely impact our financial results.

**The inability of our claims department to effectively manage or remediate claims could adversely affect our insurance business, financial results and capital requirements.** 

We rely on our claims department to facilitate and oversee the claims adjustment process for our policyholders. Many factors could affect the ability of our claims department to effectively manage claims by our policyholders, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the accuracy of our adjusters as they make their assessments and submit their estimates of damages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the training, background and experience of our claims representatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our claims department to ensure consistent, timely and accurate claims handling;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our claims department to translate the information provided by adjusters into acceptable claims resolutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our claims department to detect fraudulent claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our claims department to maintain and update its claims handling procedures and systems as they evolve over
time based on claims and geographical trends in claims reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our claims department to contract capable third-party adjusters.

Any failure to effectively manage the claims adjustment process, including failure to pay claims accurately and timely, could lead to material litigation, undermine our reputation in the

------

##### [**Table of Contents**](#toc)
marketplace, impair our corporate image and negatively affect our financial results. In addition, if we do not train new claims adjusting employees effectively or if we lose a significant number of experienced claims adjusting employees, our claims department's ability to handle an increasing workload as we grow could be adversely affected. In addition to potentially slowing growth in the affected markets, we could suffer decreased quality of claims work, which in turn could lower our operating margins.

**The failure of third-party adjusters and claims administrators to properly evaluate claims could result in additional policy losses that affect our financial condition or damage our reputation.** 

Although the majority of our claims are administered in-house by our employees, we have outsourced certain aspects of our claims adjustment function to third-party adjusters and claims administrators, such as following large catastrophe events and for complex commercial claims. We therefore rely on these third-party adjusters to accurately evaluate claims that are made under policies that we underwrite. Many factors affect the ability of these third-party firms to adjust claims accurately, including the training and experience of their claims representatives, the culture of their respective claims organizations, the effectiveness of their management and their ability to develop or select and implement appropriate procedures and systems to support their claims functions. The actions of these third parties could result in additional losses being suffered by our insurance company subsidiaries or damage our reputation.

Any significant increase in the average time we process claims could undermine our reputation and position in the insurance marketplace. Any failure to pay claims accurately or timely could also lead to regulatory and administrative actions or material litigation, or result in damage to our reputation, any one of which could materially and adversely affect our business, results of operations and financial condition.

If our claims adjusting employees or third-party claims administrators are unable to effectively process our volume of our customers' claims, our ability to grow our business while maintaining high levels of customer satisfaction could be compromised, which in turn could adversely affect our business, results of operations and financial condition.

**If renewals of our existing policies or new business from repeat insureds do not meet expectations, our premiums written in future years and our future results of operations could be materially adversely affected.** 

Our insurance policies are written for a one-year term and are renewable. We make assumptions about the renewal of our prior year's contracts and business from repeat insureds, including for purposes of determining the amount of reinsurance we purchase. If actual renewals and repeat business do not meet expectations or if we choose not to write on a renewal basis or accept repeat business because of pricing conditions, our premiums written in future years and our future operations would be materially adversely affected, and we may purchase reinsurance above the amount that we actually need.

**We are exposed to the litigation environment in the State of Florida.** 

For many years, property insurers operating in Florida have faced a disproportionately high volume of litigated claims compared to other states. Several factors have contributed to this challenging environment, including the widespread use of "assignment of benefits" ("AOB"), a practice that allowed policyholders to transfer all or part of their insurance claim to contractors or other third parties, and the application of "one-way attorney fees," which required insurers to pay the policyholder's legal fees if the insured prevailed in litigation, even by a nominal amount.

------

##### [**Table of Contents**](#toc)
In addition to AOB-related litigation and the one-way attorney fee statute, the Florida insurance market has been burdened by claims inflation, fraud, and an overall elevated level of litigation. Fraudulent roofing claims, in particular, have significantly contributed to industry losses. As a result of these ongoing challenges, several insurers have ceased writing new homeowners policies in Florida, and others have encountered financial distress, leading some to enter liquidation, rehabilitation, or conservatorship.

Florida began addressing these issues with initial AOB reforms in 2019, culminating in the passage of Senate Bill 2-A in December 2022. These legislative changes represent meaningful progress in tackling long-standing industry concerns. The key provisions of the reforms include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. a mandatory 10-day notice period before initiating litigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. elimination of the one-way attorney fee statute for policyholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. prohibition of post-loss benefit assignments for residential and commercial property insurance policies issued on or
after January 1, 2023;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. a requirement that policyholders demonstrate a breach of contract before filing bad faith claims; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. a reduction in the initial claim filing deadline to one year from the date of loss.

When combined with proactive measures previously implemented by Safepoint, these reforms have started to yield positive short-term results, particularly in improving our loss experience. However, the long-term success of these changes will depend on several factors, including whether the reforms remain intact, how they are interpreted by the courts and enforced by regulators, and how effectively we adapt our operational and procedural practices to align with the new legal framework. Additional considerations include the response of policyholders, public adjusters, vendors, and attorneys, as well as the impact of macroeconomic conditions—such as inflation—on claims costs and related expenses.

While we are encouraged by early indicators such as a reduction in litigation rates and view the reforms as a significant step toward stabilizing Florida's property insurance market, the full medium- and long-term effects remain to be seen. Only time will reveal the extent of their impact on reducing litigation, fraud, and other systemic issues in the Florida insurance landscape.

We also cannot predict whether these legislative changes recently enacted in the state of Florida will persist and not be repealed in the future. Any repeal, in whole or in part, of the recent legislative changes in the state of Florida could materially and adversely affect our business, results of operations and financial condition. Furthermore, there can be no assurance that the regulatory requirements applicable to our business will not become more stringent in the future or result in materially higher costs than current requirements. Changes in the regulation of our business may reduce our profitability, limit our growth or otherwise adversely affect our business, results of operations and financial condition.

**Our successful participation in the Florida Citizens and Louisiana Citizens depopulation programs depends on the continuation of such programs and our ability to select favorable policies to assume.** 

An important element of our strategy involves our continued participation in the Florida Citizens and Louisiana Citizens depopulation programs, which are insurers of last resort in the states of Florida and Louisiana, respectively. As of December 31, 2025, approximately 68% and 12% of our approximately 299,000 policies in force were assumed from Florida Citizens and Louisiana Citizens, respectively, including renewals. While we have experienced growth from

------

##### [**Table of Contents**](#toc)
Florida Citizens assumption transactions in the last few years, we do not anticipate significant growth remaining over the next 12 months. Florida Citizens maintained over 1.4 million policies in October 2023, and as of December 31, 2025 they have 0.4 million policies-in-force, a decline of 71.9% in approximately 27 months. The availability of assumption transactions from Florida Citizens tends to be cyclical in accordance with depopulation efforts and named storm frequency.

Our ability to participate in these programs is subject to a variety of factors, including continuation of such programs. There can be no assurance that Florida Citizens or Louisiana Citizens will decide to continue the depopulation program for a significant period of time, or at all. Any changes to curtail the depopulation programs, materially modify the terms of the programs as it relates to residential policies, or restrict our participation in the programs would hurt our growth prospects and would adversely impair our financial condition and results of operations.

When we enter into a take-out transaction with Florida Citizens or Louisiana Citizens, we have the opportunity to review information about the policies available for assumption. We undertake a robust selection process in which we analyze various aspects of each policy's risk profile and, based on the results, select the policies we would like to assume. In this selection process, we review and rely upon the information collected by Florida Citizens or Louisiana Citizens, as applicable, when it initially wrote the policy and therefore, we are subject to the risk that such information is inaccurate, incomplete or fraudulent. Our successful participation in the depopulation program depends on our ability to select policies that will be accretive to our financial results. Our ability to successfully select such policies in future take-out transactions is expected to become more challenging as the total number of policies insured by Florida Citizens and Louisiana Citizens decreases, leaving a pool of remaining policies at Florida Citizens and Louisiana Citizens that is increasing less attractive to private insurers from an underwriting perspective. Our selection process involves many different considerations and uncertainties, and there can be no assurances that we will appropriately assess the risks associated with each policy. As a result, we may select unfavorable policies that could result in substantial losses, which may in turn adversely impact our financial condition and results of operations.

The market for attractive take-out opportunities is highly competitive and is subject to a bidding process. If competing private insurers offer a lower premium than us for the same policy, Florida Citizens and Louisiana Citizens are required to allocate that policy to the insurer who offers the lowest premium. In the past, certain of our peers have been able to offer lower premiums than us when pursuing the same take-out opportunities. Other carriers may also choose to re-enter or expand their business in Florida or Louisiana in light of potential attractive take-out opportunities and generally improving market conditions on the back of the legislative reforms in 2022. There is no guarantee that we will be able to renew these assumed policies, and a lack of renewals could have a material adverse effect on our business, results of operations and financial condition.

There can be no assurance that Florida Citizens and Louisiana Citizens will decide to continue their depopulation programs for a significant period of time, or at all. Our ability to grow our premium base may depend upon the availability of future policy assumptions and acquisitions upon acceptable terms. Opportunities to acquire large numbers of policies from Florida Citizens and Louisiana Citizens meeting our strict underwriting criteria have diminished over certain historical periods as a result of the volatility of the Florida property insurance market. We cannot provide assurance that such opportunities will increase in the future.

Additionally, there can be no guarantee that Florida Citizens and Louisiana Citizens will timely offer sizeable take-out opportunities to the private insurance market that would meet our

------

##### [**Table of Contents**](#toc)
underwriting and profitability criteria or continue the depopulation program at all. While Florida Citizens and Louisiana Citizens do replenish its policies after conducting take-outs, there is no guarantee that such replenishments will meet our underwriting and profitability criteria or provide attractive take-out opportunities for us in the future, and our financial condition may suffer as a result. In addition, there may be a negative perception regarding our depopulations from Florida Citizens and Louisiana Citizens or the desirability of the policies we assume, which could adversely affect the price of our common stock.

**Our expansion within the United States will subject us to additional costs and risks and our plans may not be successful.** 

Our success depends in significant part on our ability to expand into additional markets in the United States. We have historically only had operations in the U.S. Gulf Coast states, and have only recently started operating outside of this region. As of the date hereof, we are legally permitted to write excess and surplus insurance in 49 states and are admitted to write insurance in 6 states. We have targeted expansion to more states, but we cannot guarantee that we will be able to provide coverage in other states in the near term or at all. Moreover, one or more states could revoke our ability to operate, or implement additional regulatory hurdles that could inhibit our ability to obtain or maintain our ability to operate in such states. In addition to requiring additional management attention to operations over a broad geographic area, operating in additional states may place strain on our finance, analytics, compliance, legal, engineering and operations teams. We may incur significant operating expenses and may not be successful in our expansion for a variety of reasons, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the inability to obtain any required government approvals, licenses or other authorizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulty with complying with varying laws and regulatory standards, including with respect to the insurance business and
insurance distribution, capital and outsourcing requirements, data privacy, tax and local regulatory restrictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competition from local incumbents that better understand the local market, may market and operate more effectively and may
enjoy greater local affinity or awareness; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• differing demand dynamics, which may make our product offerings less successful.

If we invest substantial time and resources to expand our operations and are unable to manage these risks effectively, our business, results of operations and financial condition could be adversely affected.

Expansion into new markets will require additional investments by us in both regulatory approvals and marketing. These incremental costs may include hiring additional personnel, as well as engaging third-party service providers and other research and development costs. If we fail to grow our geographic footprint or if geographic growth occurs at a slower rate than expected, our business, results of operations and financial condition could be materially and adversely affected.

**If we are unable to expand our product offerings, our prospects for future growth may be adversely affected.** 

Our ability to attract and retain customers and therefore increase our revenue depends in part on our ability to successfully expand our product offerings. We have historically concentrated our efforts exclusively on the excess and surplus and casualty insurance markets in order to achieve our long-term goals. Our success in the excess and surplus and casualty

------

##### [**Table of Contents**](#toc)
insurance market depends on our deep understanding of this industry. To penetrate new vertical markets, we will need to develop a similar understanding of those new markets and products and the associated business challenges faced by participants in them. Developing this level of understanding may require substantial investments of time and resources, and we may not be successful. In addition to the need for substantial resources, insurance regulation could limit our ability to introduce new product offerings. Additionally, any new insurance products could take months to be approved by regulatory authorities, or may not be approved at all. If we fail to penetrate new vertical markets successfully, our revenue may grow at a slower rate than we anticipate and our business, results of operations and financial condition could be materially and adversely affected. In addition, our decision to expand our insurance product offerings beyond the excess and surplus and casualty insurance market would subject us to additional regulatory requirements specific to such insurance products, which, in turn, could require us to incur additional costs or devote additional resources to compliance.

**Loss of key vendor relationships or failure of a vendor to protect personal information of our customers, claimants or employees could affect our operations.** 

We rely on services and products provided by many vendors. These include, for example, vendors of computer hardware and software and vendors of human resource benefits management services. There can be no assurance that any monitoring we have for general vendor risk, including with regard to the security and stability of our critical vendors will be successful, and we may fail to properly address and understand the risks and costs involved in the third-party relationships. In the event that one or more of our vendors suffers a bankruptcy or otherwise becomes unable to continue to provide products or services, or fails to protect the personal information of our customers, claimants or employees which is held by or accessible to such vendors, we may suffer operational impairments, financial losses and other liabilities.

**We may be unable to attract and retain qualified employees.** 

We depend on our ability to attract and retain experienced underwriting and claims administration talent and other skilled employees who are knowledgeable about our business. If the quality of our underwriters, analysts and other personnel decreases, we may be unable to maintain our current competitive position in the specialized markets in which we operate and be unable to expand our operations, which could adversely affect our results. Greater computing power, machine learning, and AI are driving change in the insurance industry, which may also require us to attract and maintain talent with expertise in such areas.

We believe that our ability to grow and fully execute our business plan will depend in large part on our ability to attract and retain additional skilled and qualified personnel and to expand, train and manage our employees. We may not be successful in doing so, because the competition for experienced personnel in the insurance industry is intense due to the limited number of individuals who possess the skills and experience required by our industry.

**We are dependent on key executives, the loss of whom could adversely affect our business.** 

Our future success depends to a significant extent on the efforts of our senior management, and we are highly dependent on the services of our founder and chief executive officer, David Flitman. We believe there are only a limited number of available and qualified executives with substantial experience in our industry. If we were to lose the services of one or more members of our senior management, there can be no assurance that we will be able to hire an adequate replacement to manage and operate our business within a reasonable period of time and on terms that are acceptable to us. Accordingly, the loss of the services of Mr. Flitman or one or

------

##### [**Table of Contents**](#toc)
more members of our senior management could delay or prevent us from fully implementing our business strategy and, consequently, significantly and negatively affect our business.

Additionally, we will be in default under our Credit Agreement in the event that Mr. Flitman is no longer the chief executive officer of the Company.

**Our company culture has contributed to our success and if we cannot maintain this culture as we grow, our business could be harmed.** 

We believe that our company culture has been critical to our success. We not only seek to engender a trusting relationship between our brand and our customers, but also among our employees. Our ability to continue to cultivate and maintain this culture is essential to our growth and continued success. We face a number of challenges that may affect our ability to sustain our corporate culture, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to identify, attract, reward and retain people in leadership positions in our organization who share and further
our culture, values and mission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the increasing size and geographic diversity of our workforce, and our ability to promote a uniform and consistent culture
across all our offices and employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the market perception about our charitable contributions and social and political stances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competitive pressures to move in directions that may divert us from our mission, vision and values;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the continued challenges of a rapidly evolving industry; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the increasing need to develop expertise in new areas of business that affect us.

Our unique culture is one of our core characteristics that helps us to attract and retain key personnel. If we are not able to maintain our culture, we might have to incur additional costs and find alternative methods to recruit key employees, which in turn could cause our business, results of operations and financial condition to be adversely affected.

**We may require additional capital in the future, which may not be available or may only be available on unfavorable terms.** 

Our future capital requirements depend on many factors, including our ability to write new business successfully and to establish premium rates and reserves at levels sufficient to cover losses. Many factors will affect the amount and timing of our capital needs, including our growth rate and profitability, changes to capital and surplus requirements, our claims experience, the availability and cost of reinsurance, market disruptions, and other unforeseeable developments. If we need to raise additional capital, equity or debt financing may not be available at all or may be available only on terms that are not favorable to us. In the case of equity financings, dilution to our stockholders could result. In the case of debt financings, we would be subject to covenants that restrict our ability to freely operate our business. If we cannot obtain adequate capital on favorable terms or at all, we may not have sufficient funds to implement our operating plans and our business, financial condition or results of operations could be materially adversely affected.

**Our Credit Agreement contains restrictions and covenants that limit our flexibility in operating our business and expose us to additional risk and may adversely affect our financial condition and future financial results.** 

On February 18, 2025, Safepoint Holdings (as the borrower thereunder) and certain of its subsidiaries (as guarantors thereunder) entered into a Credit Agreement, which was

------

##### [**Table of Contents**](#toc)
subsequently amended and restated, as of May 5, 2026, (as amended and restated, the "Credit Agreement") with the lenders from time to time party thereto, and Regions Bank as the administrative agent, pursuant to which we entered into a $200 million term loan, as well as commitments in respect of a $200 million delayed draw term loan facility (the "DDTL Facility") and a $200 million revolving credit facility (the "Revolving Credit Facility"). As of May 8, 2026, there was approximately $200.0 million in outstanding borrowings under the Credit Agreement, and there remained available for future drawings $200.0 million under the DDTL Facility and $200.0 million under the Revolving Credit Facility. All borrowings under the Credit Agreement mature on May 5, 2031.

The Credit Agreement contains financial covenants, restrictions on indebtedness, liens, investments, mergers, dispositions, prepayment of other indebtedness and dividends and other distributions, and is secured by liens and security interests on substantially all of our assets (subject to customary exceptions) (such assets, collectively, the "collateral"). All of these covenants, restrictions, liens and security interests impact how we operate our business and may limit our flexibility in planning for, or reacting to, changes in our business and industry. Our ability to comply with these covenants may be affected by events beyond our control. If we breach any of the covenants and do not obtain a waiver from the lenders, then, subject to applicable cure periods, any outstanding debt under the Credit Agreement may be declared immediately due and payable. Our assets or cash flow may not be sufficient to fully repay outstanding borrowings if accelerated upon an event of default. Furthermore, if we are unable to repay, refinance, or restructure the Credit Agreement and the outstanding borrowings thereunder, the lenders could proceed against the collateral granted to them to secure such indebtedness, which could force us into bankruptcy or liquidation. As a result, any default by us on our debt could have a materially adverse effect on our business, financial condition, and results of operations.

Any future financing arrangements entered into by us or any of our subsidiaries may contain similar restrictions or maintenance covenants. As a result of these covenants and restrictions, we and our subsidiaries are, and will be, limited in how we conduct our business, and we may be unable to raise additional debt or equity financing to compete effectively or to take advantage of new business opportunities. The terms of any future indebtedness we or our subsidiaries may incur could include more restrictive covenants. We cannot guarantee that we will be able to maintain compliance with these covenants in the future and, if we fail to do so, that we will be able to obtain waivers from the lenders and/or amend the covenants.

Additionally, we will be in default under our Credit Agreement, in the event that any person or related group (other than Mr. Flitman, Mr. Hoffman and any trust or other estate planning vehicles established by such individuals) becomes the beneficial owner, directly or indirectly, of 30% or more of the outstanding voting stock of the Company.

**Our inability to maintain our financial stability ratings may have a material adverse effect on our competitive position, the marketability of our product offerings, and our liquidity, operating results and financial condition.** 

Financial stability ratings are important factors in establishing the competitive position of insurance companies and can have a significant effect on an insurance company's business. Many insurance buyers, agents, brokers and secured lenders use the ratings assigned by rating agencies to assist them in assessing the financial stability and overall quality of the companies from which they are considering purchasing insurance or in determining the financial stability of the company that provides insurance. As of the date hereof, Safepoint Insurance has a financial stability rating of "A (Exceptional)" by Demotech, Inc. ("Demotech") and "BBB+" by Kroll Bond Rating Agency ("KBRA"); Cajun and Manatee each have a financial stability rating of "A

------

##### [**Table of Contents**](#toc)
(Exceptional)" by Demotech and "BBB" by KBRA. Demotech's financial stability ratings range from "A (unsurpassed)" to "M (moderate)." The Demotech ratings for each of Safepoint Insurance, Cajun and Manatee are the third highest financial stability rating of the four financial stability ratings utilized by Demotech. KBRA's financial stability ratings range from "AAA" to "R." The KBRA rating for Safepoint Insurance, Cajun and Manatee is the fourth-highest financial stability rating of the 11 financial stability ratings utilized by KBRA. KBRA may append -or + modifiers to ratings in categories "AA" through "CCC" to indicate, respectively, upper and lower risk levels within the broader category. These financial stability ratings provide an objective baseline for assessing solvency and should not be interpreted as (and are not intended to serve as) an assessment of, a recommendation to buy, sell, or hold, any securities of an insurance company or its parent holding company, including the shares of our common stock being offered by this prospectus.

Demotech and KBRA assign ratings that are intended to provide an independent opinion of an insurance company's ability to meet its obligations to policyholders and such ratings are not evaluations directed to investors. Demotech and KBRA each periodically review our ratings and may revise them downward or revoke them at their sole discretion based primarily on their analyses of our balance sheet strength (including capital adequacy and loss and loss adjustment expense reserve adequacy), gross premium leverage, operating performance and business profile. Factors that could affect such analyses include but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we change our business practices from our organizational business plan in a manner that no longer supports
Demotech's and/or KBRA's rating;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if unfavorable financial, regulatory or market trends affect us, including excess market capacity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if our losses exceed our loss reserves;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we reduce our levels of capital or reinsurance or increase our gross premium leverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we have unresolved issues with government regulators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we are unable to retain our senior management or other key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if our investment portfolio incurs significant losses; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if Demotech and/or KBRA alters their respective capital adequacy assessment methodology in a manner that would adversely
affect our ratings.

These and other factors could result in a downgrade of our rating. A downgrade of our rating could cause our current and future agents, retail brokers and insureds to choose other, more highly-rated competitors. A downgrade of this rating could also increase the cost or reduce the availability of reinsurance to us.

In addition, in view of the earnings and capital pressures recently experienced by many financial institutions, including insurance companies, it is possible that rating organizations will heighten the level of scrutiny that they apply to such institutions, will increase the frequency and scope of their credit reviews, will request additional information from the companies that they rate and may increase the capital and other requirements employed in the rating organizations' models for maintenance of certain ratings levels. It is possible that such reviews of us may result in adverse ratings consequences, which could have a material adverse effect on our financial condition and results of operations. A downgrade or withdrawal of any rating could severely limit or prevent us from writing new and renewal insurance policies.

------

##### [**Table of Contents**](#toc)
**The effects of emerging claim and coverage issues on our business are uncertain.** 

Loss severity in the property and casualty insurance industry has continued to increase in recent years, principally driven by larger court judgments. In addition, many legal actions and proceedings have been brought on behalf of classes of complainants, which can increase the size of judgments. The propensity of policyholders and third-party claimants to litigate and the willingness of courts to expand causes of loss and the size of awards may render the loss reserves of Safepoint Insurance inadequate for current and future losses. In addition, as industry practices and social and other environmental conditions change, unexpected and unintended issues related to claims and coverage may emerge. These issues may adversely affect our business by either extending coverage beyond our underwriting intent or by increasing the number or size of claims. In some instances, these changes may not become apparent until sometime after we have issued insurance policies that are affected by the changes. As a result, the full extent of liability under our insurance policies may not be known at the time such policies are issued or renewed, and our financial position and results of operations may be adversely affected.

**The failure of the risk mitigation strategies we utilize could have a material adverse effect on our financial condition or results of operations.** 

We utilize a number of strategies to mitigate our risk exposure including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• employing proper underwriting procedures to accurately define, measure and manage risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• carefully evaluating the terms and conditions of our policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• undertaking geographic diversification within states and regions in which we operate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintaining higher levels of capital, ceding higher levels of insurance risk to reinsurance companies that we believe are
financially stable and writing lower levels of gross premium leverage.

Our failure to properly execute any of the above risk mitigation strategies could have a material adverse effect on our financial condition and results of operations. Furthermore, there are inherent limitations in all of these strategies and even if we successfully execute all of the above risk mitigations strategies, no assurance can be given that one or more catastrophic event or series of unanticipated events will not result in loss levels which could have a material adverse effect on our financial condition or results of operations.

**Lack of effectiveness of exclusions and other loss limitation methods in the insurance policies we assume or write could have a material adverse effect on our financial condition or our results of operations.** 

Various provisions of our policies, such as limitations or exclusions from coverage which are designed to limit our risks, may not be enforceable in the manner we intend. In addition, the policies we issue contain conditions requiring the prompt reporting of claims to us and our right to decline coverage in the event of a violation of that condition. While our insurance product exclusions and limitations reduce the loss exposure to us and help eliminate known exposures to certain risks, it is possible that a court or regulatory authority could nullify or void an exclusion or limitation, or legislation could be enacted modifying or barring the use of such endorsements and limitations in a way that would adversely affect our loss experience, which could have a material adverse effect on our financial condition or results of operations.

------

##### [**Table of Contents**](#toc)
**We rely on non-exclusive independent agents to write voluntary insurance policies for us, and if we are not able to attract and retain independent agents, our revenues would be negatively affected.** 

We write voluntary insurance policies through a network of independent agents, who are not exclusive to Safepoint. As of December 31, 2025, voluntary policies written through independent agents constituted approximately 20% of our total policies in force. We expect to increase the number of voluntary policies we write as our business expands, which will further increase our reliance on our network of independent agents. In fact, in the future, we may rely on independent agents to be the primary source for our property insurance policies. If any of our independent agents cease writing policies for us, or if any of our master agency agreements are terminated, we may suffer a reduction in the amount of products we are able to sell, which would negatively impact our results.

Many of our competitors also rely on non-exclusive independent agents. As a result, we must compete with other insurers for independent agents' business. Our competitors may offer a greater variety of insurance products, higher financial strength ratings, lower premiums for insurance coverage, or higher commissions to their agents. If our products, pricing and commissions do not remain competitive, we may find it more difficult to attract business from independent agents to sell our products.

**We may use AI in our business, and challenges with properly managing its use could result in reputational harm, competitive harm, and legal liability, and adversely affect our results of operations.** 

Safepoint may utilize AI and machine learning in its business or incorporate AI into its products and services. Our current uses of AI include our recently designed and implemented Agency Relations Management System, which leverages modern cloud architecture to enhance the ease of doing business with Safepoint by streamlining communications and transactions with its network of independent insurance agencies. Additionally, Safepoint has made strategic investments in predictive analytics and advanced pricing models, including a state-of-the-art Generalized Linear Modeling, or GLM, software.

The AI used by Safepoint may not operate properly or as expected, which could cause Safepoint to write policies it may not have otherwise written, misprice policies, assume greater risks, or overpay customer claims, among other potential negative impacts on its business and operations. Safepoint's existing competitors, new entrants, technology companies or other third parties may leverage AI to the benefit of their business or operations or may incorporate AI into their products and services more quickly or successfully than Safepoint, which could make Safepoint less competitive and negatively impact its results of operations. In addition, if the content, analyses, output or recommendations produced by or with the assistance of AI are unintentionally, or are alleged to be, deficient, inaccurate or misleading, Safepoint's business, financial condition and results of operations may be adversely impacted. Further, the deployment of AI could pose the risk of misuse and exacerbate our information technology and cybersecurity risks. The relative newness of the technology, the speed at which it is being adopted, and the absence of laws, regulations or standards expressly governing its use increases this risk. Any such misuse could expose us to legal or regulatory risk, damage customer relationships, or cause reputational harm.

Regulation of AI and machine learning is complex and rapidly evolving worldwide as legislators, regulators, including the SEC and the Federal Trade Commission, and consumer advocacy groups are increasingly focusing on these powerful emerging technologies. The laws

------

##### [**Table of Contents**](#toc)
and regulations applicable to our business and AI are complex and subject to varying interpretations, with limited regulatory guidance at this time. It is not possible to predict all of the risks related to the use of AI, and changes in laws, rules, directives and regulations governing AI may adversely affect our ability to develop and use AI or subject us to legal liability. Moreover, any changes in laws, regulations, orders and industry standards governing the use of AI may be costly or impossible to comply with, and may result in claims, disputes, litigation or costs associated with any compliance failure or redesign of our platform or services to comply with such regulations.

**Increased public attention to environmental, social and governance matters ("ESG") may expose us to negative public perception, cause reputational harm, impose additional costs on our business or impact our share price.** 

In recent years, there has been an increased focus from shareholders, business partners, cedants, regulators, politicians, and the public in general on environmental, social and governance, or ESG, matters, including greenhouse gas emissions, carbon footprint and climate-related risks, renewable energy, fossil fuels, diversity, equity and inclusion, responsible sourcing and supply chain, human rights, and social responsibility. Increasing attention is being directed towards publicly traded companies in particular regarding ESG matters. A failure, or perceived failure, to respond to investor or customer expectations related to ESG concerns, including negative perceptions regarding the scope or sufficiency and transparency of our ESG approach and reporting on ESG matters, could cause harm to our business and reputation. Alternatively, there could be investor or customer backlash relating to ESG-related topics, which could cause harm to our business and reputation. Damage to our reputation as a result of our provision of policies to certain insureds or investments relating to certain industries could result in decreased demand for our insurance products and could have a material adverse effect on our business, operational results and financial results, as well as require additional resources to rebuild our reputation, competitive position and brand strength. Additionally, while we strive to manage our invested capital in a manner consistent with publicly established ESG guidelines, we may not meet certain shareholders' criteria for such investments or the performance of such investments may be adversely impacted by laws (including certain U.S. state laws) that limit or discourage government-affiliated asset managers from ESG-driven investments or differ from what it may have been if not managed in a manner consistent with ESG guidelines.

**We will be required by Section 404 of the Sarbanes-Oxley Act to evaluate the effectiveness of our internal control over financial reporting. If we are unable to implement and maintain effective internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock may be negatively affected.** 

As a public company with SEC reporting obligations, we will be required to document and test our internal control over financial reporting and to report any material weaknesses in such internal controls. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of a company's annual or interim financial statements would not have been prevented or detected on a timely basis. Section 404 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act") requires that we evaluate and determine the effectiveness of our internal control over financial reporting and, beginning with our annual report for the fiscal year ending December 31, 2027, provide a management report on the internal control over financial reporting. As discussed below, we have identified material weaknesses in our internal control over financial reporting and may identify additional material weaknesses in the future or otherwise fail to maintain an effective system of internal controls, and as a result, we may not

------

##### [**Table of Contents**](#toc)
detect errors on a timely basis and our financial statements may be materially misstated. We are in the process of designing, implementing and testing our internal control over financial reporting required to comply with this obligation, which will be time-consuming, costly, and complicated.

The occurrence of any of the following may cause investors to lose confidence in the accuracy and completeness of our financial reports and could negatively impact the price of our common stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identification of additional material weaknesses in our internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our inability to comply with the requirements of Section 404 of the Sarbanes-Oxley Act in a timely manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our inability to assert that our internal control over financial reporting are effective; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• when we are no longer an emerging growth company, our independent registered public accounting firm's inability to
express an opinion as to the effectiveness of our internal control over financial reporting.

If any of the foregoing occurs, we may also become subject to investigations by the stock exchange on which our common stock is listed, the SEC or other regulatory authorities, as well as lawsuits by private plaintiffs.

**We identified material weaknesses in our internal control over financial reporting and may identify additional material weaknesses in the future or otherwise fail to maintain an effective system of internal controls, which may result in material misstatements of our consolidated financial statements or cause us to fail to meet our periodic reporting obligations.** 

Safepoint's management is responsible for establishing and maintaining adequate internal control over financial reporting designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Safepoint's management has identified material weaknesses in our internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

A material weakness identified by management relates to Safepoint's failure to design and maintain an effective control environment due to the lack of sufficient oversight of activities related to internal control over financial reporting and an insufficient complement of personnel with an appropriate level of knowledge, experience and training in internal control over financial reporting commensurate with the financial reporting requirements of the Company. This material weakness contributed to an additional material weakness, as management did not design and maintain effective accounting policies, procedures, and controls over the financial close process to achieve completeness, accuracy, appropriate presentation and disclosure, and timeliness in financial accounting and reporting. Specifically, the Company did not design and maintain effective controls to (i) properly identify and eliminate all intercompany transactions, (ii) accurately present and disclose variable interest entities and related non-controlling interests, (iii) implement appropriate accounting policies and procedures over consolidated revenue recognition and (iv) present and disclose transactions or balances consistently in the appropriate financial statement line items. These material weaknesses resulted in the restatement, as well as a revision, of Safepoint's consolidated financial statements as of and for

------

##### [**Table of Contents**](#toc)
the year ended December 31, 2024 and a restatement of the consolidated financial statements as of and for the year ended December 31, 2023. Additionally, these material weaknesses could result in a misstatement of our account balances or disclosures that would result in a material misstatement to Safepoint's annual or interim financial statements that would not be prevented or detected.

Safepoint's management has developed a plan to remediate the identified material weaknesses. This remediation plan includes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Safepoint is in the process of strengthening its internal resources, specifically within the finance and accounting
function. This includes hiring additional financial and accounting personnel with significant experience in complex accounting matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Safepoint plans to design and implement or enhance existing controls in the financial close process, to achieve
completeness, accuracy, and timeliness in financial accounting and reporting, including identification and elimination of intercompany transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Safepoint has engaged a third party accounting firm to assist Safepoint's management in analyzing, reviewing and
formalizing Safepoint's accounting policies over financial reporting as well as complex accounting transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Safepoint's management will formally monitor, review and implement the recommendations provided by the third-party
accounting firm.

Safepoint is in the process of implementing aspects of this remediation plan, however, the remediation measures will be ongoing. The material weaknesses will not be considered remediated until management completes and tests the design, implementation and operating effectiveness of the new or enhanced controls for a sufficient period of time.

At this time, Safepoint cannot predict the success of such efforts or the outcome of future assessments of the remediation efforts. Safepoint's efforts may not remediate the identified material weaknesses in internal control over financial reporting, and may not prevent additional material weaknesses from being identified in the future. Failure to implement and maintain effective internal control over financial reporting could result in errors in Safepoint's consolidated financial statements that could result in a revision or restatement of its consolidated financial statements, and could cause it to fail to meet its reporting obligations, any of which could diminish investor confidence in Safepoint, negatively impact the trading price of our common stock and cause a decline in its value.

**Risks Related to the Economic Environment** 

**Adverse economic factors, including recession, tariffs, inflation, periods of high unemployment or lower economic activity could result in the sale of fewer policies than expected or an increase in the frequency of claims and premium defaults, and even the falsification of claims, or a combination of these effects, which, in turn, could affect our growth and profitability.** 

Factors, such as general economic conditions, the volatility and strength of the capital markets, trade disputes, including the imposition of new or increased tariffs, and inflation can affect the business and economic environment. These same factors affect our ability to generate revenue and profits. In an economic downturn that is characterized by higher unemployment, declining spending, and reduced corporate revenue, the demand for insurance products is generally adversely affected, which directly affects our premium levels and profitability. Negative economic factors may also affect our ability to receive the appropriate rate for the risk we insure with our policyholders and may adversely affect the number of policies we can write,

------

##### [**Table of Contents**](#toc)
and our opportunities to underwrite profitable business. In an economic downturn, our customers may have a lower appetite for insurance coverage, cancel or cease payment on existing insurance policies, modify their coverage, or not renew the policies they hold with us. Existing policyholders may exaggerate or even falsify claims to obtain higher claims payments. These outcomes would reduce our underwriting profit to the extent these factors are not reflected in the rates we charge.

We underwrite a significant portion of our insurance in Florida, Louisiana and the other U.S. Gulf Coast states. An economic downturn that particularly impacts such states could have an adverse effect on our financial condition and results of operations.

**Actual or perceived changes in general economic, market and political conditions and policies and interest rates could impact our ability to sell its products and its results of operations.** 

Actual or perceived stressed conditions, volatility and disruptions in financial asset classes or various capital markets and complications in international trade flows can have an adverse effect on our Company, both because such conditions may decrease the returns on, and value of, its investment portfolio and because its benefit and claim liabilities are sensitive to changing market factors. Market factors include interest rates, credit spreads, equity and commodity prices, economic uncertainty, derivative prices and availability, real estate markets, trade barriers (including tariffs imposed or threatened by the current U.S. presidential administration and any retaliation by affected countries), supply chain disruption, inflation, foreign exchange rates and controls and national and international political circumstances (including governmental instability, wars, terrorist acts or security operations, and other geopolitical events) and the volatility and returns in capital markets. Disruptions in one market or asset class can also spread to other markets or asset classes. The current U.S. presidential administration's tendency to depart from previous U.S. policy without following normal processes creates uncertainty about future U.S. government actions, which may result in new economic and geopolitical risks that cannot be accurately predicted. Our business operations and results may also be affected by economic activity, such as the level of employment, business investment and spending, consumer spending and savings and the impact on the economy of epidemics and pandemics, and monetary and fiscal policies, such as U.S. fiscal imbalances and changes in U.S. trade policies, or of a prolonged shutdown of the U.S. government, or the failure to reach an agreement on federal debt limits from time to time.

**Performance of our investment portfolio is subject to a variety of investment risks that may adversely affect our financial results.** 

Our results of operations depend, in part, on the performance of our investment portfolio. We seek to hold a diversified portfolio of investments that is managed by a professional investment advisory management firm in accordance with our investment policy and routinely reviewed by our Board of Directors. Our investments are subject to general economic conditions and market risks as well as risks inherent to particular securities.

Our primary market risk exposures relate to changes in interest rates and credit quality considerations. Although interest rates have slightly decreased with recent rate cuts instituted by the Board of Governors of the Federal Reserve System (the "Federal Reserve"), and further cuts are expected to interest rates, they remain significantly elevated compared to levels in 2021. Future increases in interest rates could cause the values of our fixed-maturity securities portfolios to decline, with the magnitude of the decline depending on the duration of securities included in our portfolio and the amount by which interest rates increase. Some fixed maturity securities have call or prepayment options, which create possible reinvestment risk in declining

------

##### [**Table of Contents**](#toc)
rate environments. Other fixed maturity securities, such as mortgage-backed and asset-backed securities, carry prepayment risk or, in a rising interest rate environment, may not prepay as quickly as expected.

The value of our investment portfolio is subject to the risk that certain investments may default or become impaired due to deterioration in the financial condition of one or more issuers of the securities we hold, or due to deterioration in the financial condition of an insurer that guarantees an issuer's payments on such investments. Downgrades in the credit ratings of fixed-maturities also have a significant negative effect on the market valuation of such securities.

Such factors could reduce our net investment income and result in realized investment losses. Our investment portfolio is subject to increased valuation uncertainties when investment markets are illiquid. The valuation of investments is more subjective when markets are illiquid, thereby increasing the risk that the estimated fair value of the securities we hold in our portfolio does not reflect prices at which actual transactions would occur.

We also invest in marketable equity securities. These securities are carried on our balance sheet at fair market value and are subject to potential losses and declines in market value based on the performance of equity markets. Our equity invested assets totaled $0.1 million as of December 31, 2025. 

Risks for all types of securities are managed through the application of our investment policy, which establishes investment parameters that include but are not limited to, maximum percentages of investment in certain types of securities and minimum levels of credit quality, which we believe are within applicable guidelines established by the National Association of Insurance Commissioners ("NAIC"), applicable insurance investment laws and regulations, and applicable insurance regulatory authorities.

Although we seek to preserve our capital, we cannot be certain that our investment objectives will be achieved, and results may vary substantially over time. In addition, although we seek to employ investment strategies that are not correlated with our insurance and reinsurance exposures, losses in our investment portfolio may occur at the same time as underwriting losses and, therefore, exacerbate the adverse effect of the losses on us.

Our investment portfolio could also be adversely impacted by ratings downgrades, increased bankruptcies and credit spread widening caused by economic downturns or other events. Severe economic downturns could cause impairments in our fixed income portfolio. In addition, declines in fixed income yields would result in decreases in net investment income from future investment activity, including reinvestments.

**We could be forced to sell investments to meet our liquidity requirements.** 

We invest the premiums we receive from our insureds until they are needed to pay policyholder claims or other expenses. Consequently, we seek to manage the duration of our investment portfolio based on the duration of our loss and loss adjustment expense reserves to ensure sufficient liquidity and avoid having to liquidate securities to fund claims. Risks such as inadequate loss and loss adjustment reserves, significant losses arising from catastrophic events or unfavorable trends in litigation could potentially result in the need to sell investments to fund these liabilities. Such sales could result in significant realized losses depending on the conditions of the general market, interest rates and credit issues with individual securities existing at the time of the sale.

------

##### [**Table of Contents**](#toc)
**Risks Related to Regulation of Our Insurance Operations** 

**We are subject to extensive regulation which may reduce our profitability or limit our growth. Moreover, if we fail to comply with these regulations, we may be subject to penalties, including fines and suspensions, which may adversely affect our financial condition and results of operations.** 

We are subject to extensive state regulation. Each of our affiliated insurance companies (Safepoint Insurance, Cajun and Manatee) is subject to supervision and regulation that is primarily designed to protect their respective policyholders rather than our stockholders, and such regulation is imposed by both the state in which it is domiciled and the states in which it does business. In addition, our Bermuda-based captives, Pompano Re Ltd., Canal Re Ltd. and Bobcat Re Ltd., are subject to regulation in Bermuda.

State insurance regulations relate to, among other things, the approval of policy forms and premium rates, our conduct in the marketplace, our compliance with solvency and financial reporting requirements, certain transactions with our affiliates, and limitations on the amount of business we can write, the amount of dividends we can pay to stockholders, and the types of investments we can make. Insurance holding company regulations generally provide that transactions between an insurance company and its affiliates must be fair and reasonable, and, if material or in a specified category, they require prior notice and approval or non-disapproval by the insurance company's domiciliary state regulator. Affiliate transactions must also be clearly and accurately disclosed in the records of the respective parties, with expenses and payments allocated between the parties in accordance with customary accounting practices. Many types of affiliate transactions are subject to these requirements, including transfers of assets, loans, agreements between a reciprocal insurer and its attorney-in-fact, reinsurance agreements, service and management agreements, certain dividend payments by the insurance company and certain other material transactions. If we are unable to obtain the requisite prior approval for a specific affiliate transaction, we would be precluded from taking the action, which could adversely affect our operations. These regulatory requirements may adversely affect or inhibit our ability to achieve some or all of our business objectives. In addition, regulatory authorities may conduct periodic examinations into insurers' business practices. These reviews may reveal deficiencies in our insurance operations or differences between our interpretations of regulatory requirements and those of the regulators.

Insurance holding company laws and regulations also impose approval requirements for the acquisition of control of a domestic insurance company or its controlling person. Any person or entity desiring to acquire control of a U.S. domestic insurer, or a U.S. reciprocal insurer through the control of its attorney-in-fact, must generally receive prior approval from the insurer's domestic regulator. State insurance laws typically include a rebuttable presumption that such control exists if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, ten percent or more (or, under Alabama law, five percent or more) of the voting securities of a domestic stock insurer or a controlling company, such as a reciprocal insurer's attorney-in-fact. Moreover, state regulators may find that control exists in circumstances in which a person owns or controls less than such percentage of the voting securities and require regulatory approval in such circumstances as well. This restriction on acquisitions of control may inhibit our ability to grow our business or achieve our business objectives. These laws may discourage potential acquisition proposals for our company and may delay, deter or prevent a change of control of us, including through transactions, and in particular unsolicited transactions, that some or all of our stockholders might consider to be desirable.

------

##### [**Table of Contents**](#toc)
Further, regulatory authorities have relatively broad discretion to deny or revoke licenses for various reasons, including the violation of insurance laws and regulations. In some instances, we follow practices based on our interpretations of laws or regulations or practices that we believe may be generally followed by the industry. These practices may turn out to be different from the interpretations of regulatory authorities. If we do not have the requisite licenses and approvals or do not comply with applicable regulatory requirements, insurance regulatory authorities could preclude or temporarily suspend us from carrying on some or all of our activities or otherwise penalize us, which could adversely affect our ability to operate our business and could have a material adverse effect on our financial condition and results of operations.

At any given time, a number of financial, market conduct or other examinations or audits of the Carriers may be ongoing. It is possible that any examination or audit may result in payments of fines and penalties, payments to policyholders, or both, as well as changes in systems or procedures, or restrictions on business activities, any of which could have a material adverse effect on our business, financial condition and results of operations.

**Changes in regulation may reduce our profitability and limit our growth.** 

As an insurance company, each of the Carriers is subject to the laws and regulations of the states in which it does business, including Florida and Alabama. The NAIC and state insurance regulators, as well as state legislatures, regularly reexamine existing laws and regulations, generally focusing on modifications to holding company and solvency regulations, interpretations of existing laws and the development of new laws. Compliance with solvency standards or financial condition regulations may increase our capital and reserve requirements, risk management costs, and reporting costs. State legislatures and insurance regulators may also change licensing, permit, or approval requirements, or take other actions harmful to us. They may also take actions that harm our customers and independent agents or their operations, which may affect our business relationship with them and their ability to purchase or distribute our products.

From time to time, states consider and/or enact laws that may alter or increase state authority to regulate insurance companies and insurance holding companies. States also consider and/or enact laws that impact the competitive environment and marketplace for property and casualty insurance. Safepoint Insurance and Manatee currently transact insurance in Florida, where the recent political environment has led to aggressive regulation of property and casualty insurance companies. We expect this to continue for the foreseeable future. These and other aspects of the political environment in jurisdictions where we operate may reduce our profitability, limit our growth, or otherwise adversely affect our operations.

We may incur costs to comply with laws and regulations and changes to these laws and regulations may increase our expenses and regulatory capital charges. Our failure to comply with our own policies or with regulatory requirements may harm our reputation or result in sanctions or legal claims.

During the past several years, various regulatory and legislative bodies have adopted or proposed new laws or regulations to address the cyclical nature of the insurance industry, catastrophic events and insurance capacity and pricing. These regulations include (i) the creation of "market assistance plans" under which insurers are induced to provide certain coverages, (ii) restrictions on the ability of insurers to rescind or otherwise cancel certain

------

##### [**Table of Contents**](#toc)
policies in mid-term or to non-renew policies at their scheduled expirations, (iii) advance notice requirements or limitations imposed for certain policy non-renewals, (iv) limitations upon or decreases in rates permitted to be charged, (v) expansion of governmental involvement in the insurance market and (vi) increased regulation of insurers' policy administration and claims handling practices.

In December 2025, the NAIC approved a Request for NAIC Model Law Development in support of the Reciprocal Exchanges (E) Working Group's charge to clarify that fees charged from a reciprocal insurer's attorney-in-fact are subject to fair and reasonable standards under the Model Holding Company Act and Regulation.

Currently, the federal government does not directly regulate the insurance business. However, in recent years the state insurance regulatory framework has come under increased federal scrutiny. Congress and some federal agencies from time to time investigate the current condition of insurance regulation in the United States to determine whether to impose federal regulation or to allow an optional federal charter, similar to banks. In addition, changes in federal legislation and administrative policies in several areas, including changes in the Gramm-Leach-Bliley Act, financial services regulation and federal taxation, can significantly impact the insurance industry and us.

We cannot predict with certainty the effect any enacted, proposed or future state or federal legislation or NAIC initiatives may have on the conduct of our business. Furthermore, there can be no assurance that the regulatory requirements applicable to our business will not become more stringent in the future or result in materially higher costs than current requirements, or that creation of a federal insurance regulatory system will not adversely affect our business or disproportionately benefit our competitors. Changes in the regulation of our business may reduce our profitability, limit our growth or otherwise adversely affect our operations.

**We are periodically subject to examinations by our state insurance regulators, which could result in adverse examination findings and necessitate remedial actions.** 

The insurance regulators primarily responsible for the supervision and examination of the Carriers are FLOIR (as the domestic regulator of Safepoint Insurance and Manatee) and the AL DOI (as the domestic regulator of Cajun). Periodically, a domestic state regulator performs examinations of insurance companies under its jurisdiction to assess compliance with applicable laws and regulations, financial condition and the conduct of regulated activities. These examinations provide a significant opportunity for such regulators to review and scrutinize our business. If, as a result of an examination, the regulatory authority determines that our financial condition, capital resources or other aspects of any of our operations are less than satisfactory, or that we are in violation of applicable laws or regulations, it may require us to take one or more remedial actions or otherwise subject us to regulatory scrutiny, such as pursuant to an enforcement action. We cannot predict with precision the likelihood, nature or extent of any necessary remedial actions, if any, resulting from an examination, or the associated costs of such remedial actions or regulatory scrutiny. In addition, insurance regulators of other states in which we are licensed to operate may also conduct periodic financial examinations or other targeted investigations. Any regulatory or enforcement action or any regulatory order imposing remedial, injunctive or other corrective action against us resulting from these examinations could have a material adverse effect on our business, results of operations and financial condition.

**State regulations limiting rate increases and requiring us to underwrite business in certain areas are beyond our control and may adversely affect our results of operations and financial condition.** 

From time-to-time states have passed legislation, and regulators have taken action, that has had the effect of limiting the ability of insurers to manage catastrophe risk, such as legislation

------

##### [**Table of Contents**](#toc)
prohibiting insurers from reducing exposures or withdrawing from catastrophe-prone areas, or mandating that insurers participate in residual markets. In addition, following catastrophes, there are sometimes legislative initiatives and court decisions which seek to expand insurance coverage for catastrophe claims beyond the original intent of the policies. Further, our ability to increase pricing to the extent necessary to offset rising costs of catastrophes requires approval of insurance regulatory authorities.

Our ability or willingness to manage our catastrophe exposure by raising prices, modifying underwriting terms or reducing exposure to certain geographies may be limited due to considerations of public policy, the evolving political environment and our ability to penetrate other geographic markets, which may have a material adverse effect on our results of operations, financial condition and cash flows. We cannot predict whether and to what extent new legislation and regulations that would affect our ability to manage our exposure to catastrophic events will be adopted, the timing of adoption or the effects, if any, they would have on our ability to manage our exposure to catastrophic events.

Additionally, we are required to participate in guaranty funds for insolvent insurance companies. The funds periodically assess losses against all insurance companies doing business in the state. Our operating results and financial condition could be adversely affected by any of these factors.

**We rely on the use of credit scoring in pricing and underwriting certain of our insurance policies and any legal or regulatory requirements that restrict our ability to access credit score information could decrease the accuracy of our pricing and underwriting process and thus decrease our ability to be profitable.** 

We use credit scoring as a factor in pricing and underwriting decisions where allowed by state law. Consumer groups and regulators have questioned whether the use of credit scoring unfairly discriminates against some groups of people and are calling for laws and regulations to prohibit or restrict the use of credit scoring in underwriting and pricing. Laws or regulations that significantly curtail or regulate the use of credit scoring, if enacted in any of the states in which we operate, could impact the integrity of our pricing and underwriting processes, which could, in turn, materially and adversely affect our business, financial condition, results of operations and prospects, and make it harder for us to be profitable over time.

**Litigation and legal proceedings filed by or against us could have a material adverse effect on our business, results of operations and financial condition.** 

Litigation and other proceedings may include, but are not limited to, complaints from or litigation by customers or reinsurers, related to alleged breaches of contract or otherwise. As our market share increases, competitors may pursue litigation to require us to change our business practices or offerings and limit our ability to compete effectively. As is typical in the insurance industry, we continually face risks associated with litigation of various types arising in the normal course of our business operations, including disputes relating to insurance claims under our policies as well as other general commercial and corporate litigation. Although we are not currently involved in any material litigation with our customers, members of the insurance industry are often the target of class action lawsuits and other types of litigation, some of which involve claims for substantial amounts, and the outcomes of which are unpredictable. This litigation is based on a variety of issues, including insurance and claim settlement practices. In addition, because we use sophisticated data collection and analysis technologies, it is possible that customers or consumer groups could bring individual or class action claims alleging that our methods of collecting data and pricing risk are impermissibly discriminatory. We cannot predict with any certainty whether we will be involved in such

------

##### [**Table of Contents**](#toc)
litigation in the future or what impact such litigation would have on our business. If we were to be involved in litigation and it was determined adversely, it could require us to pay significant damages or to change aspects of our operations, either of which could have a material adverse effect on our financial results. Even claims without merit can be time-consuming and costly to defend and may divert management's attention and resources away from our business and adversely affect our business, results of operations and financial condition. Additionally, routine lawsuits over claims that are not individually material could in the future become material if aggregated with a substantial number of similar lawsuits. In addition to increasing costs, a significant volume of customer complaints or litigation could adversely affect our brand and reputation, regardless of whether such allegations are valid or whether we are liable. We cannot predict with certainty the costs of defense, the costs of prosecution, insurance coverage or the ultimate outcome of litigation or other proceedings filed by or against us, including remedies or damage awards, and adverse results in such litigation, and other proceedings, may harm our business and financial condition.

**We expect our results of operations to fluctuate on a quarterly and annual basis. In addition, our operating results and operating metrics are subject to seasonality and volatility, which could result in fluctuations in our quarterly revenues and operating results or in perceptions of our business prospects.** 

Our revenue and results of operations could vary significantly from period to period and may fail to match expectations as a result of a variety of factors, some of which are outside of our control. Our results may vary as a result of fluctuations in the number of customers purchasing our insurance products and fluctuations in the timing and amount of our expenses. In addition, the insurance industry, and particularly homeowners and commercial residential insurance, are subject to their own cyclical trends and uncertainties, including extreme weather which is often seasonal and may result in volatility in claims reporting and payment patterns. Fluctuations and variability across the industry may affect our revenue. As a result of the potential variations in our revenue and results of operations, period-to-period comparisons may not be meaningful and the results of any one period should not be relied on as an indication of future performance. In addition, our results of operations may not meet the expectations of investors or public market analysts who follow us, which may adversely affect our stock price.

We may experience seasonal fluctuations in our revenues and resulting fluctuations in our rate of growth as a result of insurance spending patterns. Volatility in our key operating metrics or their rates of growth could have a negative impact on our financial results and investor perceptions of our business prospects and a failure to achieve our quarterly forecasts or to meet or exceed the expectations of research analysts or investors will cause our stock price to decline.

**Changes in accounting practices and future pronouncements may materially affect our reported financial results.** 

Various authoritative accounting or regulatory entities, including the Financial Accounting Standards Board ("FASB") and the SEC, may amend, expand and/or eliminate the financial accounting or reporting standards that govern the preparation of our consolidated financial statements or could reverse their previous interpretations or positions on how various financial accounting and/or reporting standards should be applied. Various FASB and SEC proposals are pending and subject to change. Developments in accounting practices may require us to incur considerable additional expenses to comply, particularly if we are required to prepare information relating to prior periods for comparative purposes or to apply the new requirements retroactively. Our consolidated financial statements are prepared in accordance with Generally

------

##### [**Table of Contents**](#toc)
Accepted Accounting Principles ("GAAP"). The impact of changes in GAAP cannot be predicted but may affect the calculation of net income, stockholders' equity, and other relevant financial statement line items.

In addition to compliance with GAAP on a consolidated basis, each of Safepoint Insurance and the Reciprocal Exchanges is required to comply with statutory accounting principles ("SAP"). SAP and various components of SAP are subject to constant review by the NAIC, its committees and their subgroups, and state insurance departments to address emerging issues and otherwise improve financial reporting. Various proposals are pending before NAIC committees or their subgroups, some of which, if enacted, could have negative effects on insurance industry participants. The NAIC continuously examines existing laws and regulations. We cannot predict whether or in what form such reforms will be enacted and, if so, whether the enacted reforms will positively or negatively affect us.

**Changes to the U.S. tax laws and implementation of new tax policies could have a significant negative impact on the overall economy and our business.** 

Legislative or other actions related to taxes could have a negative effect on us, our investments, or our stockholders. The rules dealing with U.S. federal income taxation are constantly under review by persons involved in the legislative process and by the IRS and the U.S. Department of the Treasury. We cannot predict with certainty how any changes in the tax laws might affect us, our stockholders, or our portfolio investments. New legislation and any U.S. Treasury regulations, administrative interpretations or court decisions interpreting such legislation could have other adverse consequences. Stockholders are urged to consult with their tax advisors regarding tax legislative, regulatory, or administrative developments and proposals and their potential effect on an investment in our securities.

Furthermore, the current administration has included as part of its agenda a potential reform of U.S. tax laws, including reducing the corporate tax rate, extending certain provisions of the Tax Cuts and Jobs Act of 2017 (the "TCJA"), and imposing new tariffs. The combined impact of the extension of certain tax benefits pursuant to the TCJA and the implementation of new tariffs could potentially lead to increases in the U.S. deficit, inflation, and interest rates, all of which could contribute to increases in market interest rates and a decrease in U.S. economic growth with a possibility of a recession, all of which could negatively impact our business.

**Applicable insurance laws may make it difficult to effect a change of control.** 

Under Florida and Alabama insurance holding company laws and regulations, no person may acquire control of a domestic insurer, such as a reciprocal insurer through the control of its attorney-in-fact, until written approval is obtained from the domiciliary state insurance commissioner, which in some states, including Alabama, requires a public hearing on the proposed acquisition. Such approval would be contingent upon the state insurance commissioner's consideration of a number of factors including, among others, the financial strength of the proposed acquiror, the acquiror's plans for the future operations of the domestic insurer and any anti-competitive results that may arise from the consummation of the acquisition of control. Florida and Alabama insurance laws and regulations pertaining to changes of control apply to both the direct and indirect acquisition of ten percent (under Florida law) or five percent (under Alabama law) or more of the voting stock of a domestic insurer or its controlling person. Accordingly, the acquisition of such percentage or more of our common stock would be considered a change of control of Safepoint Holdings and would trigger the applicable change of control filing requirements under state insurance holding company laws and regulations, absent a disclaimer of control filing and its acceptance by the domestic insurance regulator. These requirements may discourage potential acquisition proposals and

------

##### [**Table of Contents**](#toc)
may delay, deter or prevent a change of control of Safepoint Holdings, including through transactions that some or all of the stockholders of Safepoint Holdings might consider to be desirable.

**Safepoint Holdings and its subsidiaries own approximately $47.0 million of surplus notes of Cajun and Manatee, and consequently, Safepoint Holdings is exposed to the ability of Manatee and Cajun to pay principal and interest on the surplus notes and to obtain regulatory approval to do so.** 

As of December 31, 2025, Safepoint Holdings and its subsidiaries own approximately $47.0 million of the total $67.0 million outstanding principal amount of surplus notes issued by Cajun and Manatee (the "Surplus Notes") that is treated as equity on an insurance company's balance sheet under statutory accounting principles. A surplus note is a type of subordinated debt security issued by a U.S.-regulated insurance company. Cajun and Manatee issued the Surplus Notes in order to raise capital to commence their respective insurance operations.

Each payment of interest on, principal of, and any redemption amount with respect to, the Surplus Notes by Cajun and Manatee, as applicable, requires the prior approval of the AL DOI (in the case of Cajun) and FLOIR (in the case of Manatee). The AL DOI and FLOIR have broad discretion to disapprove surplus note payments to protect the capital and surplus of the insurance company. If a payment of interest, principal or other amount due on the Surplus Notes is deferred, no interest will accrue on the deferred amount. As a result of our ownership of the Surplus Notes, we are exposed to the ability of Manatee and Cajun to pay principal and interest on the surplus notes and to obtain regulatory approval to do so.

The Surplus Notes are unsecured general obligations that are expressly subordinated in their right of payment to policyholders and other obligations of Cajun and Manatee, as applicable. As reciprocal insurers, Cajun and Manatee have no equity capital that is subordinated to (and therefore provides credit enhancement for) the Surplus Notes.

No public market exists for the Surplus Notes and none is expected to develop. In addition, the Surplus Notes have a fixed coupon rate that could be viewed as below the market rate for similar securities. As a result, if we are required to sell our interest in the Surplus Notes, the resulting price could be at a discount to our original purchase price, which could be significant.

**Risks Related to Technology** 

**Operational risk exposures, including with respect to our technology and telecommunications systems could adversely affect our business.** 

Operational exposures and losses can result from, among other things, errors, failure to document transactions properly or to obtain proper internal authorization, failure to comply with regulatory requirements, telecommunication and critical infrastructure or information technology failures, bad faith delayed claims payment, fraud and external events, such as political unrest, state emergency or industrial actions which could result in operational outage. Any such outage could have a material adverse effect on our business, financial condition, results of operations or prospects.

Our business is also highly dependent upon our information technology and telecommunications systems, including our commercial and personal underwriting systems. We rely on these systems to interact with brokers and insureds, to underwrite business, to prepare policies and process premiums, to perform actuarial and other modeling functions, to process claims and make claims payments, and to prepare internal and external financial statements

------

##### [**Table of Contents**](#toc)
and information. Some of these systems may include or rely on third-party systems not under our control or located on our premises. Events such as natural catastrophes, pandemics, terrorist attacks, industrial accidents, cyber-attacks or computer viruses may cause our systems to fail or be inaccessible for extended periods of time. While we have implemented business contingency plans and other reasonable plans to mitigate such risks to our systems, sustained or repeated system failures or service denials could severely limit our ability to write and process new and renewal business, provide customer service, pay claims in a timely manner or otherwise operate in the ordinary course of business.

A significant portion of our employees work remotely and travel outside of our primary offices on a regular basis. We believe remote work increases the need for our information technology and telecommunications systems to work properly and creates additional operational risk and difficulty should these systems fail.

**Security breaches or cyber-attacks could expose the Company to liability and damage its reputation and business.** 

Our operations depend on the reliable and secure processing, storage, and transmission of confidential and other sensitive information, including personal information, in our computer systems and networks. Computer viruses, hackers, employee misconduct or malfeasance, and other hazards could expose our systems to security breaches, cyber-attacks or other disruptions.

Cyberthreats are constantly evolving and becoming more sophisticated and complex, making it increasingly difficult to detect and successfully defend against them. In addition, cyber-attackers (which may include individuals or groups, as well as nation-state and state-sponsored attackers, which can deploy significant resources to plan and carry out exploits) also develop and deploy viruses, worms, credential stuffing attack tools and other malicious software programs, some of which may be specifically designed to attack our products, information systems or networks. Outside parties have in the past and may in the future attempt to fraudulently induce our employees or users of our products or services to disclose sensitive, personal or confidential information via electronic spamming, phishing, social engineering or other tactics.

While we have implemented what we believe to be reasonable security measures and employee training designed to protect against breaches of security and other interference with our systems and networks, our systems and networks may be, and at times are, subject to breaches or interference. Any such event may result in operational disruptions as well as unauthorized access to or the disclosure or loss of our proprietary information or our customers' data and information, which in turn may result in legal claims, regulatory scrutiny and liability, the incurrence of costs to eliminate or mitigate further exposure, the loss of customers or affiliated advisors, reputational harm or other damage to our business. While we maintain insurance coverage that may, subject to policy terms and conditions, cover certain aspects of cyber risks, such insurance coverage may be insufficient to cover all related losses.

In addition, the trend toward general public notification of such incidents could exacerbate the harm to our business, financial condition and results of operations. Even if we successfully protect our technology infrastructure and the confidentiality of the sensitive data we hold, we could suffer harm to our business and reputation if attempted security breaches are publicized. We cannot be certain that advances in criminal capabilities, discovery of new vulnerabilities, attempts to exploit vulnerabilities in our systems or within the supply chain, data thefts, physical system or network break-ins or unauthorized access, or other developments will not compromise or breach the technology or other security measures protecting the networks and systems used in connection with our business, or the sensitive information stored thereon.

------

##### [**Table of Contents**](#toc)
**We employ third-party licensed software for use in our business, and the inability to maintain these licenses, problems with the software we license, or increases to the cost of software licenses could adversely affect our business.** 

Multiple areas of our business rely on certain third-party software obtained under licenses from other companies. We anticipate that we will continue to rely on such third-party software in the future. Unforeseen issues may arise in third-party software platforms which may have an adverse impact on our operations. Integration of new third-party software or modifications to our existing third-party software may require substantial investment of our time and resources. The inability to integrate or operate third-party software successfully or the inadequacy of third-party software may have a material adverse impact on our operations. In addition, the cost of third-party software is significant and we expect it to increase in the future. If we have issues with the functionality or expense of third-party software, we may not be able to find acceptable alternatives in a timely manner or at all. Many of the risks associated with the use of third-party software cannot be eliminated, and these risks could negatively affect our business.

Additionally, the software powering our technology systems incorporates software covered by open-source licenses. The terms of many open-source licenses have not been interpreted by U.S. courts, and there is a risk that the licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to operate our systems. In the event that portions of our proprietary software are determined to be subject to an open-source license, we could be required to publicly release the affected portions of our source code or re-engineer all or a portion of our technology systems, each of which could reduce or eliminate the value of our technology systems. Such risk could be difficult or impossible to eliminate and could adversely affect our business, financial condition, and results of operations.

**Any failure to protect our intellectual property rights could impair our ability to protect our intellectual property, proprietary technology platform and brand, or we may be sued by third parties for alleged infringement of their proprietary rights.** 

Our success and ability to compete depend in part on our intellectual property, which includes our rights in our proprietary technology platform and our brand. We primarily rely on copyright, trade secret and trademark laws, and confidentiality agreements with our employees, customers, service providers, partners and others to protect our intellectual property rights. However, the steps we take to protect our intellectual property may be inadequate. Litigation brought to protect and enforce our intellectual property rights could be costly, time-consuming and distracting to management and could result in the impairment or loss of portions of our intellectual property. Additionally, our efforts to enforce our intellectual property rights may be met with defenses, counterclaims and countersuits attacking the validity and enforceability and scope of our intellectual property rights. Our failure to secure, protect and enforce our intellectual property rights could adversely affect our brand and adversely impact our business.

Our success depends also in part on our not infringing on the intellectual property rights of others. Our competitors, as well as a number of other entities and individuals, may own or claim to own intellectual property relating to our industry. In the future, third parties may claim that we are infringing on their intellectual property rights, and we may be found to be infringing on such rights. Any claims or litigation could cause us to incur significant expenses and, if successfully asserted against us, could require that we pay substantial damages or ongoing royalty payments, prevent us from offering our services, or require that we comply with other unfavorable terms. Even if we were to prevail in such a dispute, any litigation could be costly and time-consuming and divert the attention of our management and key personnel from our business operations.

------

##### [**Table of Contents**](#toc)
**Any cloud provider service failure or control weakness could adversely affect our business.** 

We employ cloud-based services to host our applications and intend to expand our use. As we expand our use of cloud-based services, we will increasingly rely on third-party cloud providers to maintain appropriate controls and safeguards to protect confidential information we receive, including personal, personally identifiable, sensitive, confidential or proprietary data, and the integrity and continuous operation of our proprietary technology platform. While we conduct due diligence on these cloud providers with respect to their security and business controls, we may not have the visibility to effectively monitor the implementation and efficacy of these controls. Outside parties may be able to circumvent controls or exploit vulnerabilities, resulting in operational disruption, data loss, defects or a security event. Migrating to the cloud increases the risk of operational disruption should internet service be interrupted. While we have implemented business contingency and other plans to facilitate continuous internet access, sustained or concurrent service denials or similar failures could limit our ability to write and process new and renewal business, provide customer service, pay claims in a timely manner or otherwise operate our business. Any such event or failure could have a material adverse effect on our business, financial condition and results of operations.

**Risks Related to This Offering and Ownership of Our Common Stock** 

**Our costs will increase significantly as a result of operating as a public company, and our management will be required to devote substantial time to complying with public company regulations.** 

As a public company, we expect to incur significant legal, accounting and other expenses that we did not incur as a private company. After completion of this offering, we will be subject to the reporting requirements of the Exchange Act, which will require, among other things, that we file with the SEC annual, quarterly and current reports with respect to our business and financial condition and therefore we will need to have the ability to prepare financial statements that comply with all SEC reporting requirements on a timely basis. In addition, we will be subject to other reporting and corporate governance requirements, including certain requirements and certain provisions of the Sarbanes-Oxley Act and the regulations promulgated thereunder, which will impose significant compliance obligations upon us. In particular, we must perform system and process evaluation and testing of our internal control over financial reporting to allow management and, to the extent that we are no longer an "emerging growth company" as defined in the JOBS Act, our independent registered public accounting firm to report on the effectiveness of our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act. Our compliance with Section 404 will require that we incur substantial accounting expense and expend significant management efforts.

The Sarbanes-Oxley Act and the Dodd-Frank Act, as well as related rules subsequently implemented by the SEC and the NYSE, have increased regulation of, and imposed enhanced disclosure and corporate governance requirements on, public companies. Our efforts to comply with these evolving laws, regulations and standards will increase our operating costs and divert management's time and attention from revenue-generating activities. Further, if these laws, regulations and rules were to change substantially in the future, we might be unable to meet new requirements.

These changes will also place significant additional demands on our finance and accounting staff and on our financial accounting and information systems. We may need to hire additional legal, accounting and financial staff with appropriate public company reporting experience and technical accounting knowledge. Other expenses associated with being a public company include increases in auditing, accounting and legal fees and expenses; investor relations

------

##### [**Table of Contents**](#toc)
expenses; increased directors' fees and director and officer liability insurance costs; registrar and transfer agent fees and listing fees; as well as other expenses. As a public company, we will be required, among other things, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prepare and file periodic reports and distribute other stockholder communications, in compliance with the federal
securities laws and requirements of the NYSE;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• define and expand the roles and the duties of our board of directors and its committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• institute more comprehensive compliance and investor relations functions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluate and maintain our system of internal control over financial reporting, and report on management's assessment
thereof, in compliance with rules and regulations of the SEC and the Public Company Accounting Oversight Board.

We may not be successful in implementing these requirements and implementing them could materially adversely affect our business. The increased costs will decrease our net income and may require us to reduce costs in other areas of our business or increase the prices of our products or services. For example, we expect these rules and regulations to make it more difficult and more expensive for us to obtain director and officer liability insurance and we may be required to incur substantial costs to maintain the same or similar coverage. We cannot predict or estimate the amount or timing of additional costs we may incur to respond to these requirements. The impact of these requirements could also make it more difficult for us to attract and retain qualified persons to serve on our board of directors or board committees or as executive officers.

In addition, if we fail to implement the required controls with respect to our internal accounting and audit functions, our ability to report our results of operations on a timely and accurate basis could be impaired. If we do not implement the required controls in a timely manner or with adequate compliance, we may be subject to sanctions or investigation by regulatory authorities, such as the SEC or the NYSE. Any such action could harm our reputation and the confidence of investors in, and clients of, our Company and could negatively affect our business and cause the price of our shares of common stock to decline.

**An active trading market for our common stock may not develop and the market price for our common stock may decline below the initial public offering price.** 

Prior to this offering, there has not been a public market for our common stock. An active trading market for our common stock may never develop or be sustained, which could adversely impact your ability to sell your shares and could depress the market price of your shares. In addition, the public offering price for our common stock has been determined through negotiations among us and the representative of the underwriters and may not be indicative of prices that will prevail in the open market upon completion of this offering. Consequently, you may be unable to sell your shares of our common stock at prices equal to or greater than the price you paid for them.

**Our operating results and stock price may be volatile, or may decline regardless of our operating performance, and you could lose all or part of your investment.** 

Our quarterly operating results are likely to fluctuate in the future as a publicly traded company. In addition, securities markets worldwide have experienced, and are likely to continue to experience, significant price and volume fluctuations. This market volatility, as well as general economic, market or political conditions, could subject the market price of our shares to wide price fluctuations regardless of our operating performance. You should consider an investment in our common stock to be risky, and you should invest in our common stock only if

------

##### [**Table of Contents**](#toc)
you can withstand a significant loss and wide fluctuation in the market value of your investment. The market price of our common stock could be subject to significant fluctuations after this offering in response to the factors described in this "*Risk Factors*" section and other factors, many of which are beyond our control. Among the factors that could affect our stock price are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market conditions in the broader stock market;

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• results of operations that vary from expectations of securities analysts and investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• short sales, hedging and other derivative transactions in our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• guidance, if any, that we provide to the public, any changes in this guidance or our failure to meet this guidance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• strategic actions by us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcement by us, our competitors or our acquisition targets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales, or anticipated sales, of large blocks of our stock, including by our directors, executive officers and principal
stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additions or departures in our Board of Directors, senior management or other key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory, legal or political developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• public response to press releases or other public announcements by us or third parties, including our filings with the SEC;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changing economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any indebtedness we may incur or securities we may issue in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• default under agreements governing our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exposure to capital and credit market risks that adversely affect our investment portfolio or our capital resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in our financial strength and credit ratings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other events or factors, including those from natural disasters, war, actors of terrorism or responses to these events.

The securities markets have from time-to-time experienced extreme price and volume fluctuations that often have been unrelated or disproportionate to the operating performance of particular companies. As a result of these factors, investors in our common stock may not be able to resell their shares at or above the initial offering price. These broad market fluctuations, as well as general market, economic and political conditions, such as recessions, loss of investor confidence or interest rate changes, may negatively affect the market price of our common stock.

In addition, the stock markets, including the NYSE, have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity

------

##### [**Table of Contents**](#toc)
securities of many companies. If any of the foregoing occurs, it could cause our stock price to fall and may expose us to securities class action litigation that, even if unsuccessful, could be costly to defend, divert management's attention and resources, or harm our business.

**Our Pre-IPO Significant Stockholders may exert significant influence over us, their interests in our business may be different than yours, and certain statutory provisions afforded to stockholders are not applicable to us.** 

David Flitman and Steven Hoffman (the "Pre-IPO Significant Stockholders") will control approximately [•]% of the combined voting power of our common stock (or [•]% if the underwriters exercise their option to purchase additional shares of common stock in full) after the completion of this offering and the application of the net proceeds from this offering. This concentration of voting power with the Pre-IPO Significant Stockholders may have a negative impact on the price of our common stock. The Pre-IPO Significant Stockholders' interests may not be fully aligned with yours, which could lead to actions that are not in your best interests. In addition, the Pre-IPO Significant Stockholders' significant influence over us may discourage someone from making a significant equity investment in us, or could discourage transactions involving a change in control, including transactions in which you as a holder of shares of our common stock might otherwise receive a premium for your shares over the then-current market price. Moreover, the Pre-IPO Significant Stockholders could seek to sell a significant amount of stock after the expiration of the 180-day lock-up period, which could negatively impact our stock price.

**If you purchase shares of our common stock in our initial public offering, you will experience substantial and immediate dilution.** 

If you purchase shares of our common stock in our initial public offering, you will experience substantial and immediate dilution in the as adjusted net tangible book value per share because the price that you pay will be substantially greater than the as adjusted net tangible book value per share of the common stock that you acquire. This dilution is due in large part to the fact that our earlier investors paid substantially less than the initial public offering price when they purchased their shares of our capital stock. You will experience additional dilution upon exercise of outstanding warrants to purchase our common stock or upon the issuance of stock awards or in connection with other employee offerings made under the 2026 Equity Compensation Plans (which we intend to adopt in connection with this offering), as applicable.

**Because we are a holding company and substantially all or a substantial portion of our operations are conducted by our insurance and service company subsidiaries, our ability to achieve liquidity at the holding company, including the ability to pay dividends and service our debt obligations, depends on our ability to obtain cash dividends or other permitted payments from our insurance and service company subsidiaries.** 

Because we are a holding company with no substantial business operations of our own, our ability to pay dividends to stockholders and meet our debt payment obligations is largely dependent on dividends and other distributions from Safepoint Insurance, the Captives and our other operating companies. Applicable state insurance laws restrict Safepoint Insurance's ability to declare stockholder dividends and require insurance companies to maintain specified levels of statutory capital and surplus. Dividend payments are further limited to that part of available policyholder surplus which is derived from net profits on an insurer's business. Insurance regulators have broad powers to prevent reduction of statutory surplus to inadequate levels, and there is no assurance that dividends of the maximum amounts calculated under any applicable formula would be permitted. State insurance regulatory authorities that have

------

##### [**Table of Contents**](#toc)
jurisdiction over the payment of dividends by Safepoint Insurance may in the future adopt statutory provisions more restrictive than those currently in effect. We also rely on fees from Cajun and Manatee that are paid to our Attorneys-in-Fact and our agencies. From time to time these fees may be subject to examination and increased scrutiny by relevant regulators.

Any determination to pay dividends in the future will be at the discretion of our board of directors and will depend upon our financial condition, results of operations, capital requirements, general business conditions, legal, tax and regulatory limitations, contractual restrictions and other factors that our board of directors considers relevant. Consequently, in order for investors to realize any future gains on their investment, they may need to sell all or part of their holdings of our common stock after price appreciation, which may never occur.

Therefore, you may not receive a return on your investment in our common stock by receiving a payment of dividends. See "*Dividend Policy*."

**Substantial future sales of shares of our common stock by existing stockholders, or the perception that those sales may occur, could cause the market price of our common stock to decline.** 

Sales of substantial amounts of our common stock in the public market following this offering, or the perception that these sales could occur, could cause the market price of our common stock to decline. Based on shares outstanding as of [•], 2026, upon completion of this offering, we will have shares of our common stock outstanding (or shares, assuming full exercise of the underwriters' option to purchase additional shares). All of the shares sold pursuant to this offering will be immediately tradable without restriction under the Securities Act unless held by "affiliates," as that term is defined in Rule 144 under the Securities Act. The remaining shares outstanding will be restricted securities within the meaning of Rule 144 under the Securities Act, but will be eligible for resale subject to applicable volume, manner of sale, holding period and other limitations of Rule 144 or pursuant to an exception from registration under Rule 701 under the Securities Act, subject in certain cases to the terms of lock-up agreements described below. Upon completion of this offering, we intend to file one or more registration statements under the Securities Act to register the shares of our common stock subject to Options outstanding under the 2024 Plan and to be issued under our 2026 Equity Compensation Plans, and, as a result, all shares of our common stock acquired upon the grant of Restricted Stock, settlement of restricted stock units or upon exercise of Options granted under our 2026 Plan, upon the exercise of Options granted under our 2024 Plan, or the purchase of securities pursuant to an offering made under the 2026 ESPP will also be freely tradable under the Securities Act, subject to the terms of the lock-up agreements, unless purchased by our affiliates. A total of shares of common stock are reserved for issuance under 2026 Equity Compensation Plans.

In connection with this offering, we, our executive officers, the selling stockholders and certain other stockholders holding in the aggregate shares of our common stock, have entered into lock-up agreements pursuant to which we and they have agreed not to sell any shares without the prior consent of Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC for 180 days after the date of this prospectus, subject to certain exceptions. Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC may, in their sole discretion and at any time without notice, release all or any portion of the securities subject to lock-up agreements entered into in connection with this offering. See "*Underwriting*." Following the expiration of this 180-day lock-up period, these shares will be eligible for future sale, subject to the applicable volume, manner of sale, holding period and other limitations of Rule 144. See "*Shares Eligible for Future Sale*" for a discussion of the shares of our common stock that may be sold into the

------

##### [**Table of Contents**](#toc)
public market in the future. As lock-up restrictions end, the market price of our common stock could decline if the holders of those shares sell them or are perceived by the market as intending to sell them.

In the future, we may issue additional shares of common stock or other equity or debt securities convertible into common stock in connection with a financing, acquisition and litigation settlement or employee arrangement or otherwise. Any of these issuances could result in substantial dilution to our existing stockholders and could cause the trading price of our common stock to decline.

**If securities or industry analysts do not publish research or publish misleading or unfavorable research about our business, our stock price and trading volume could decline.** 

The market price for our common stock will depend in part on the research and reports that securities or industry analysts publish about us or our business. We do not currently have and may never obtain research coverage by securities and industry analysts. If there is no coverage of our company by securities or industry analysts, the trading price for our shares would be negatively impacted. In the event we obtain securities or industry analyst coverage or if one or more of these analysts downgrades our shares or publishes misleading or unfavorable research about our business, our stock price would likely decline. If one or more of these analysts ceases coverage of our company or fails to publish reports on us regularly, demand for our shares could decrease, which could cause our stock price or trading volume to decline.

**We could be subject to securities class action litigation.** 

In the past, securities class action litigation has often been brought against a company following a decline in the market price of its securities. This risk is especially relevant for us because insurance companies have experienced significant stock price volatility in recent years. If we face such litigation, it could result in substantial costs and a diversion of management's attention and resources, which could harm our business.

**We are an "emerging growth company" and, as a result of the reduced disclosure and governance requirements applicable to emerging growth companies, our common stock may be less attractive to investors.** 

We are an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, or JOBS Act, and we intend to take advantage of some of the exemptions from reporting requirements that are applicable to other public companies that are not emerging growth companies, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not being required to comply with the auditor attestation requirements in the assessment of our internal control over
financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board
regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration
statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not being required to hold a non-binding advisory vote on executive compensation and stockholder approval of any golden
parachute payments not previously approved.

We cannot predict if investors will find our common stock less attractive because we will rely on these exemptions. If some investors find our common stock less attractive as a result,

------

##### [**Table of Contents**](#toc)
there may be a less active trading market for our common stock and our stock price may be more volatile. We may take advantage of these reporting exemptions until we are no longer an emerging growth company. We will remain an emerging growth company until the last day of the fiscal year ending after the fifth anniversary of this offering, or, if earlier, (i) the last day of the fiscal year in which we have total annual gross revenue of at least $1.235 billion, (ii) the date on which we are deemed to be a large accelerated filer, which means the market value of our common stock that is held by non-affiliates exceeds $700 million as of the prior June 30, or (iii) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period.

In addition, we have elected to take advantage of the extended transition period to comply with new or revised accounting standards and to adopt certain of the reduced disclosure requirements available to emerging growth companies. As a result of the accounting standards election, we will not be subject to the same implementation timing for new or revised accounting standards as other public companies that are not emerging growth companies, which may make comparison of our financials to those of other public companies more difficult. As a result of these elections, the information that we provide in this prospectus may be different than the information investors may receive from other public companies in which they hold equity interests. In addition, it is possible that some investors will find our common stock less attractive as a result of these elections, which may result in a less active trading market for our common stock and higher volatility in our share price.

**The requirements of being a public company may strain our resources and distract our management, which could make it difficult to manage our business, particularly after we are no longer an "emerging growth company."** 

We have historically operated as a private company and have not been subject to the same financial and other reporting and corporate governance requirements as a public company. After this offering, we will be required to file annual, quarterly and other reports with the SEC. We will need to prepare and timely file financial statements that comply with SEC reporting requirements. We will also be subject to other reporting and corporate governance requirements, under the listing standards of the NYSE and the Sarbanes-Oxley Act, which will impose significant compliance costs and obligations upon us. The changes necessitated by becoming a public company will require a significant commitment of additional resources and management oversight, which will increase our operating costs. These changes will also place significant additional demands on our finance and accounting staff, some of whom may not have prior public company experience or experience working for a newly public company, and on our financial accounting and information systems. We may need to hire additional accounting and financial staff with appropriate public company reporting experience and technical accounting knowledge. Other expenses associated with being a public company include increases in auditing, accounting and legal fees and expenses, investor relations expenses, increased directors' fees and director and officer liability insurance costs, registrar and transfer agent fees and listing fees, as well as other expenses. As a public company, we will be required, among other things, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prepare and file periodic reports, and distribute other stockholder communications, in compliance with the federal
securities laws and the NYSE rules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• define and expand the roles and the duties of our board of directors and its committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• institute more comprehensive compliance, investor relations and internal audit functions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintain effective disclosure controls and procedures and evaluate and maintain our system of internal control over
financial reporting, and report on management's

------

##### [**Table of Contents**](#toc)
assessment thereof, in compliance with rules and regulations of the SEC and the Public Company Accounting Oversight Board.

In particular, upon completion of this offering, the Sarbanes-Oxley Act will require us to document and test the effectiveness of our internal control over financial reporting in accordance with an established internal control framework, and to report on our conclusions as to the effectiveness of our internal controls. Likewise, once we are no longer an emerging growth company, our independent registered public accounting firm will be required to provide an attestation report on the effectiveness of our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act. In addition, upon completion of this offering, we will be required under the Securities Exchange Act of 1934, as amended, or the Exchange Act, to maintain disclosure controls and procedures and internal control over financial reporting. Any failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm our operating results or cause us to fail to meet our reporting obligations. If we are unable to conclude that we have effective disclosure controls and procedures or internal control over financial reporting, investors could lose confidence in the reliability of our financial statements. This could result in a decrease in the market price of our common stock. Failure to comply with the Sarbanes-Oxley Act could potentially subject us to sanctions or investigations by the SEC or other regulatory authorities.

Beginning with our annual report for the fiscal year ending December 31, 2027, we expect to incur significant additional expenses and devote substantial management effort toward ensuring compliance with those requirements applicable to companies that are not "emerging growth companies," including Section 404 of the Sarbanes-Oxley Act.

**Our management will have broad discretion over the use of the proceeds we receive in this offering and might not apply the proceeds in ways that increase the value of your investment.** 

Our management will have broad discretion in the application of the net proceeds from the sale of shares by us in this offering, including for any of the purposes described in the section entitled "*Use of Proceeds*," and you will not have the opportunity as part of your investment decision to assess whether the net proceeds are being used appropriately. Because of the number and variability of factors that will determine our use of the net proceeds from the sale of shares by us in this offering, their ultimate use may vary substantially from their currently intended use. Our management may not apply our net proceeds in ways that ultimately increase the value of your investment. The failure by our management to apply these funds effectively could harm our business. If we do not invest or apply the net proceeds from the sale of shares by us in this offering in ways that enhance stockholder value, we may fail to achieve expected financial results, which could cause our stock price to decline.

**We may change our underwriting guidelines or our strategy without stockholder approval.** 

Our management has the authority to change our underwriting guidelines or our strategy without notice to our stockholders and without stockholder approval. As a result, we may make fundamental changes to our operations without stockholder approval, which could result in our pursuing a strategy or implementing underwriting guidelines that may be materially different from the strategy or underwriting guidelines described in the section entitled "*Business*" or elsewhere in this prospectus.

**Future offerings of debt or equity securities, which may rank senior to our common stock, may adversely affect the market price of our common stock.** 

If we decide to issue debt securities in the future, which would rank senior to shares of our common stock, it is likely that they will be governed by an indenture or other instrument

------

##### [**Table of Contents**](#toc)
containing covenants restricting our operating flexibility. Additionally, any equity securities or convertible or exchangeable securities that we issue in the future may have rights, preferences and privileges more favorable than those of our common stock and may result in dilution to owners of our common stock. We and, indirectly, our stockholders, will bear the cost of issuing and servicing such securities. Because our decision to issue debt or equity securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings. Thus, holders of our common stock will bear the risk of our future offerings reducing the market price of our common stock and diluting the value of their shareholdings in us.

**Anti-takeover provisions in our organizational documents could delay a change in management and limit our share price.** 

Provisions of our certificate of incorporation and bylaws could make it more difficult for a third party to acquire control of us even if such a change in control would increase the value of our common stock and prevent attempts by our stockholders to replace or remove our current Board of Directors or management.

We will have a number of anti-takeover devices that will be in place prior to the completion of this offering that will hinder takeover attempts and could reduce the market value of our common stock or prevent sale at a premium. Our anti-takeover provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• will permit the Board of Directors to establish the number of directors and fill any vacancies and newly created
directorships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• will provide that our Board of Directors will be classified into three classes with staggered, three-year terms and that
directors may only be removed for cause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• will require super-majority voting to amend provisions in our certificate of incorporation and bylaws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• will include blank-check preferred stock, the preference rights and other terms of which may be set by the Board of
Directors and could delay or prevent a transaction or a change in control that might involve a premium price for our common stock or otherwise benefit our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• will eliminate the ability of our stockholders to call special meetings of stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• will specify that special meetings of our stockholders can be called only by our Board of Directors, the chairman of our
Board of Directors, or our chief executive officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• will prohibit stockholder consent action by other than unanimous written consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• will provide that vacancies on our Board of Directors may be filled only by a majority of directors then in office, even
though less than a quorum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• will prohibit cumulative voting in the election of directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• will establish advance notice requirements for nominations for election to our Board of Directors or for proposing matters
that can be acted upon by stockholders at annual stockholder meetings.

In addition, as a Delaware corporation, we will be subject to Section 203 of the Delaware General Corporation Law. These provisions may prohibit large stockholders, in particular those owning 15% or more of our outstanding voting stock, from merging or combining with us for a period of time.

------

##### [**Table of Contents**](#toc)
**Our certificate of incorporation provides that the Court of Chancery of the State of Delaware is the exclusive forum for substantially all disputes between us and our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.** 

Our certificate of incorporation and bylaws provide that the Court of Chancery of the State of Delaware is the exclusive forum for the following civil actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any derivative action or proceeding brought on our behalf;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a claim of breach of a fiduciary duty by any of our directors, officers, employees or agents or our
stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a claim arising pursuant to any provision of the DGCL or our certificate of incorporation or bylaws or
as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action to interpret, apply, enforce or determine the validity of our certificate of incorporation or our bylaws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a claim governed by the internal affairs doctrine.

------

##### [**Table of Contents**](#toc)
**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS** 

This prospectus contains forward-looking statements within the meaning of the federal securities laws that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this prospectus, including statements regarding our future results of operations or financial condition, business strategy and plans, and objectives of management for future operations are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "would," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. These forward-looking statements include, among others, statements relating to our future financial performance, our business prospects and strategy, our market opportunity and the potential growth of that market, our anticipated financial position, our liquidity and capital needs and other similar matters. These forward-looking statements are based on management's current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict.

Our actual results may differ materially from those expressed in, or implied by, the forward-looking statements included in this prospectus as a result of various factors, including, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our exposure to catastrophic events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the possibility that actual losses may exceed reserves;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the concentration of our business in Florida and Louisiana;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our failure to execute our growth strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased competition, competitive pressures, and market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the fluctuation in our results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased costs of reinsurance, non-availability of reinsurance, and non-collectability of reinsurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our failure to accurately price the risks we underwrite;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inherent uncertainty of our models and our reliance on such models as a tool to evaluate risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the failure of our claims department to effectively manage or remediate claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lower policy renewal rates and failure of such renewals to meet our expectations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• modification of the Florida Citizens and Louisiana Citizens depopulation program and our inability to select favorable
Florida Citizens and Louisiana Citizens policies to assume;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulties with technology, data security and/or outsourcing relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the lack of significant redundancy in our operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• loss of key vendor relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our failure to attract and retain qualified employees and independent agents or our loss of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure of third-party adjusters and administrators to properly evaluate claims;

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our inability to generate investment income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our inability to maintain our ratings with Demotech or KBRA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effects of emerging claim and coverage issues relating to legal, judicial, environmental and social conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the failure of our risk mitigation strategies or loss limitation methods;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the failure to attract and retain independent agents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in regulations and our failure to meet increased regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in accounting practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased costs as a result of being a public company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the failure to maintain effective internal controls in accordance with Sarbanes-Oxley.

We have based the forward-looking statements contained in this prospectus primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, prospects, business strategy and financial needs. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, assumptions and other factors described in the section captioned "Risk Factors" and elsewhere in this prospectus. These risks are not exhaustive. Other sections of this prospectus include additional factors that could adversely impact our business and financial performance. Furthermore, new risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this prospectus. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this prospectus, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

You should read this prospectus and the documents that we reference in this prospectus and have filed as exhibits to the registration statement of which this prospectus forms a part with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

The forward-looking statements made in this prospectus relate only to events as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements after the date of this prospectus or to conform such statements to actual results or revised expectations, except as required by law.

------

##### [**Table of Contents**](#toc)
**USE OF PROCEEDS** 

We estimate that the net proceeds to us from the sale of shares of our common stock in this offering will be approximately $ million, based upon the assumed initial public offering price of $ per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, and after deducting the estimated underwriting discounts and estimated offering expenses payable by us. If the underwriters' option to purchase additional shares is exercised in full, we estimate that the net proceeds to be received by us will be approximately $ million, after deducting the estimated underwriting discounts and estimated offering expenses payable by us. We will not receive any of the proceeds from the sale of our common stock in this offering by the selling stockholders.

A $1.00 increase (decrease) in the assumed initial public offering price of $ per share would increase (decrease) the net proceeds that we receive from this offering by approximately $ million, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discounts and estimated offering expenses payable by us. Similarly, each increase (decrease) of 1.0 million in the number of shares offered by us would increase (decrease) the net proceeds that we receive from this offering by approximately $ million, assuming that the assumed initial public offering price remains the same and after deducting the estimated underwriting discounts and estimated offering expenses payable by us.

The principal purposes of this offering are to increase our capitalization and financial flexibility, create a public market for our common stock and thereby enable access to the public equity markets for us and our stockholders.

This expected use of net proceeds from this offering represents our intentions based on our current plans and business conditions, which could change in the future as our plans and business conditions evolve. As a result, our management will have broad discretion over the uses of the net proceeds from this offering and investors will be relying on the judgement of our management regarding the application of the net proceeds from this offering.

------

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

We anticipate paying a quarterly cash dividend on our common stock of $ per share beginning in the third quarter of 2026. We anticipate paying aggregate cash dividends of $ million per annum on our common stock, resulting in an annual yield of [•]% based on a price of $ per share, which is the midpoint of the estimated price range set forth on the cover page of this prospectus. The declaration, amount and payment of any future dividends on our capital stock will be at the discretion of our board of directors, subject to applicable laws, and will depend on our financial condition, results of operations, capital requirements, general business conditions, and other factors that our board of directors considers relevant. Our future ability to pay cash dividends on our common stock may also be limited by the terms of any future debt securities, preferred stock or credit facility.

Our status as a holding company and a legal entity separate and distinct from our subsidiaries affects our ability to pay dividends and make other payments. As a holding company without substantial operations of our own, the principal sources of our funds are dividends and other payments from our subsidiaries. The ability of our insurance company subsidiary, Safepoint Insurance, to pay dividends to us is subject to dividend limits and minimum capital requirements under Florida insurance law. See "*Risk Factors—Risks Related to This Offering and Ownership of Our Common Stock—Because we are a holding company and substantially all or a substantial portion of our operations are conducted by our insurance and service company subsidiaries, our ability to achieve liquidity at the holding company, including the ability to pay dividends and service our debt obligations, depends on our ability to obtain cash dividends or other permitted payments from our insurance and service company subsidiaries*," "*Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources*" and "*Regulation*." In addition, we do not own any equity securities in Cajun and Manatee and, therefore, are not entitled to dividends from such companies. Furthermore, our future ability to pay cash dividends may also be limited by the terms of the Credit Agreement and any future debt or preferred securities or future credit facility.

------

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

The following table sets forth our cash and cash equivalents and our capitalization as of March 31, 2026 as follows:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an as adjusted basis<sup></sup>to give effect to (1) the items described
immediately above and (2) our issuance and sale of     shares of common stock in this offering at an assumed initial public offering price of $ per share, the midpoint of the price range
set forth on the cover page of this prospectus, after deducting the estimated underwriting discounts and estimated offering expenses payable by us.

The as adjusted information below is illustrative only, and our capitalization following the closing of this offering will be adjusted based on the actual initial public offering price and other terms of this offering determined at pricing. You should read this information in conjunction with our consolidated financial statements and the related notes included elsewhere in this prospectus, the section entitled "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and other financial information contained in this prospectus.

---

| | | |
|:---|:---|:---|
|  | **As of March 31, 2026** | **As of March 31, 2026** |
|  | **Actual** | **As Adjusted** |
|  | **(In thousands,**<br> **except per share data)** | **(In thousands,**<br> **except per share data)** |
|  Cash and cash equivalents | $650028 | $— |
|  Long-term debt | $120362 | $— |
|  Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock, $0.001 par value per share, 5,000,000 shares authorized, 1,372,166 shares issued as of March 31, 2026, actual; [•] shares authorized, [•] shares issued or outstanding; [•] shares authorized, [•] shares issued and outstanding, as adjusted | [•] |  |
|  Additional paid-in capital | 144319 |  |
|  Treasury Stock | (11178) |  |
|  Accumulated other comprehensive income, net of taxes | 2158 |  |
|  Retained earnings | 167599 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity | 302898 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total capitalization | $423260 |  |

---

(1) Each $1.00 increase (decrease) in the assumed initial public offering price of $ per share of
common stock, the midpoint of the price range set forth on the cover page of this prospectus, would increase (decrease) the as adjusted amount of each of total stockholders' equity and total capitalization by approximately
$ million, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discounts and commissions and estimated
offering expenses payable by us. Similarly, each increase (decrease) of 1.0 million shares in the number of shares offered by us at the assumed initial public offering price per share would increase (decrease) the pro forma as adjusted amount
of each of total stockholders' equity and total capitalization by approximately $ million, assuming that the assumed initial public offering price remains the same and after deducting the estimated underwriting
discounts and commissions and estimated offering expenses payable by us.

The outstanding share information in the table above is based on [•] shares of our common stock immediately prior to the closing of this offering and excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• [ • ] shares of common stock underlying Options outstanding under our
2024 Plan;

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• [ • ] shares of common stock reserved for future issuance under our
2026 Plan, including for purposes of any grants to be made in connection with this offering and which will be increased by any shares of common stock that are underlying awards outstanding under the 2024 Plan (under which we will cease granting
awards upon the adoption of the 2026 Plan) that are canceled, forfeited, or settled in cash. Further, the total number of shares of common stock reserved and available for delivery under the 2026 Plan will be increased on the first day of each of
the fiscal years during the term of the 2026 Plan beginning with fiscal year 2027, in an amount equal to the lowest of (i) 3% of the Company's outstanding shares of common stock on the last day of the immediately preceding fiscal year,
(ii)   of the Company's shares of common stock and (iii) such number of shares of common stock as determined by our board of directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• [ • ] shares of common stock reserved for future issuance under our
2026 ESPP. Further, the total number of shares of common stock available for issuance under the 2026 ESPP will be increased on the first day of each of the fiscal years during the term of the 2026 ESPP beginning with fiscal year 2027, in an amount
equal to the lowest of (i) 1% of the Company's outstanding shares of common stock on the last day of the immediately preceding fiscal year, (ii)   of the Company's shares of common stock and (iii) such number of shares
of common stock as determined by our board of directors.

------

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

If you invest in our common stock in this offering, your interest will be immediately diluted to the extent of the difference between the initial public offering price per share of our common stock in this offering and the as adjusted net tangible book value per share of our common stock after this offering. As of March 31, 2026, we had a historical net tangible book value of million, or $ per share of common stock. Our net tangible book value represents total tangible assets less total liabilities, all divided by the number of shares of common stock outstanding on such date. Our as adjusted net tangible book value (deficit) as of was $ million, or $ per share.

[As adjusted net tangible book value per share represents the amount of our net tangible book value divided by the number of shares of our common stock outstanding as of March 31, 2026, after giving effect to the filing of our Certificate of Incorporation immediately prior to the closing of this offering.]

After giving further effect to the sale of shares of common stock in this offering at an assumed initial public offering price of $ per share, the midpoint of the price range set forth on the cover page of this prospectus and after deducting the estimated underwriting discounts and estimated offering expenses payable by us, our as adjusted net tangible book value as of March 31, 2026 would have been approximately $ million, or approximately $ per share. This represents an immediate increase in as adjusted net tangible book value of $ per share to existing stockholders and an immediate dilution in as adjusted net tangible book value of $ per share to new investors purchasing shares of common stock in this offering. Dilution per share to new investors is determined by subtracting as adjusted net tangible book value per share after this offering from the initial public offering price per share paid by new investors. The following table illustrates this per share dilution:

---

| | | |
|:---|:---|:---|
|  Assumed initial public offering price per share |  | [•] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net tangible book value per share as of March 31, 2026 | [•] |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in net tangible book value per share attributable to this offering | [•] |  |
|  As adjusted net tangible book value per share after this offering | [•] |  |
|  Dilution per share to new investors in this offering |  | [•] |

---

A $1.00 increase (decrease) in the assumed initial public offering price of $ per share, the midpoint of the price range set forth on the cover page of this prospectus, would increase (decrease), our as adjusted net tangible book value per share after this offering by $, and would increase (decrease) dilution per share to new investors in this offering by $, in each case assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discounts and estimated offering expenses payable by us. Similarly, each increase (decrease) of 1.0 million shares in the number of shares offered by us would increase (decrease) our as adjusted net tangible book value per share after this offering by approximately $ per share and decrease (increase) the dilution to new investors by approximately $ per share, in each case assuming that the assumed initial public offering price remains the same, and after deducting the estimated underwriting discounts and estimated offering expenses payable by us.

The following table summarizes, on an as adjusted basis as of March 31, 2026, the differences between the number of shares of common stock purchased from us, the total

------

##### [**Table of Contents**](#toc)
consideration paid and the average price per share paid by existing stockholders and to be paid by the new investors purchasing shares of common stock in this offering, at the assumed initial public offering price of common stock of $ per share, the midpoint of the price range set forth on the cover page of this prospectus, before deducting the estimated underwriting discounts and estimated offering expenses payable by us.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | **Average<br>Price Per<br>Share** |
|  | **Number** | **Percent** | **Amount** | **Percent** | **Average<br>Price Per<br>Share** |
|  Existing Stockholders | [•] | [•] | [•] | [•] | [•] |
|  Investors purchasing shares in this offering | [•] | [•] | [•] | [•] | [•] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | [•] | [•] | [•] | [•] | [•] |

---

Sales by the selling stockholders in this offering will reduce the number of shares held by existing stockholders to , or approximately % of the total shares of common stock outstanding after this offering, and will increase the number of shares held by new investors to , or approximately % of the total shares of common stock outstanding after this offering.

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

The number of shares of our common stock that will be outstanding after this offering is based on [•] shares of our common stock immediately prior to the closing of this offering and excludes: 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• [ • ] shares of common stock underlying Options outstanding under our
2024 Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• [ • ] shares of common stock reserved for future issuance under our
2026 Plan, including for purposes of any grants to be made in connection with this offering and which will be increased by any shares of common stock that are underlying awards outstanding under the 2024 Plan (under which we will cease granting
awards upon the adoption of the 2026 Plan) that are canceled, forfeited, or settled in cash. Further, the total number of shares of common stock reserved and available for delivery under the 2026 Plan will be increased on the first day of each of
the fiscal years during the term of the 2026 Plan beginning with fiscal year 2027, in an amount equal to the lowest of (i) 3% of the Company's outstanding shares of common stock on the last day of the immediately preceding fiscal year, (ii)
  of the Company's shares of common stock and (iii) such number of shares of common stock as determined by our board of directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• [ • ] shares of common stock reserved for future issuance under our
2026 ESPP. Further, the total number of shares of common stock available for issuance under the 2026 ESPP will be increased on the first day of each of the fiscal years during the term of the 2026 ESPP beginning with fiscal year 2027, in an amount
equal to the lowest of (i) 1% of the Company's outstanding shares of common stock on the last day of the immediately preceding fiscal year, (ii)   of the Company's shares of common stock and (iii) such number of shares of
common stock as determined by our board of directors.

------

##### [**Table of Contents**](#toc)
To the extent any of the outstanding options are exercised or new option or other securities are issued under our equity incentive plans, you will experience further dilution as a new investor in this offering. In addition, we may choose to raise additional capital due to market conditions or strategic considerations even if we believe we have sufficient funds for our current or future operating plans. Furthermore, we may choose to issue common stock as part or all of the consideration in acquisitions as part of our planned growth strategy. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the issuance of these securities could result in further dilution to our stockholders.

------

##### [**Table of Contents**](#toc)
**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION** 

**AND RESULTS OF OPERATIONS** 

*The following discussion of our historical results of operations and our liquidity and capital resources should be read together with the section entitled "Prospectus Summary—Summary Consolidated Financial and Other Data" and the consolidated financial statements and related notes that appear elsewhere in this prospectus. In addition to historical financial information, this prospectus contains "forward-looking statements." You should review the "Special Note Regarding Forward-Looking Statements" and "Risk Factors" sections of this prospectus for factors and uncertainties that may cause our actual future results to be materially different from those in our forward-looking statements. Forward-looking statements in this prospectus are based on information available to us as of the date hereof, and we assume no obligation to update any such forward-looking statements.* 

*The results of operations for the periods presented are not necessarily indicative of the results that may be expected for any other future period. The following discussion should be read in conjunction with the annual consolidated financial statements and the notes thereto included in this prospectus. Unless the context indicates otherwise, the terms the "Company," "we," "our" and "us" are used to refer to Safepoint Holdings, Inc. and its subsidiaries, collectively.* 

**Overview** 

Safepoint is an insurance underwriting services platform focused on delivering coastal property insurance predominantly in Florida, Louisiana and other U.S. Gulf Coast states. Safepoint is operated by highly experienced insurance professionals with a shared vision to solve problems for stakeholders in underserved or dislocated property insurance markets. Our business strategy, which has been developed and tested since our founding in 2013, combines sophisticated actuarial analytics, risk management expertise and a low-cost operating model to provide better value to our customers across market cycles. We also generate income through Safepoint Insurance, which directly assumes insurance risk, as well as Bermuda-based reinsurance Captives that provide supplemental reinsurance to Safepoint Insurance and the Reciprocal Exchanges.**** 

We have the three operating segments listed below; however, we only generate revenue for the benefit of Safepoint shareholders through our Insurance Services and Risk-Bearing segments. While the Reciprocal Exchanges are an important value driver for our business as the primary source of our fee income streams in the Insurance Services segment, the economic results of the Reciprocal Exchanges are excluded from our net income attributable to controlling interest and shareholders equity attributable to controlling interest given the Reciprocal Exchanges are not legally owned by Safepoint:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Insurance Services—Our insurance services platform, which we refer to as Safepoint MGA, receives fees based on the
premium managed for the Reciprocal Exchanges and BPOs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Risk-Bearing Entities—Safepoint Insurance, an insurance company which writes personal and commercial policies for
homeowners and small businesses; as well as our Bermuda-based reinsurance Captives that provide supplemental reinsurance to Safepoint Insurance and the Reciprocal Exchanges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reciprocal Exchanges—The Reciprocal Exchanges, which are insurance operations that we manage for a fee, but do not
legally own.

------

##### [**Table of Contents**](#toc)
The following tables present selected financial information for each of the Company's operating segments as well as the Company's Key Operating and Financial Metrics for the three months ended March 31, 2026 and 2025 and the years ended December 31, 2025 and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
|  | **Insurance<br>Services** | **Risk-<br>bearing<br>Entities** | **Reciprocal<br>Exchanges*<sup>1</sup>*** | **Corporate &<br>Other** | **Eliminations** | **Total** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
|  Gross written premium | $— | $62356 | $156638 | $— | $(34860) | $184134 |
|  Gross earned premium |  | 102907 | 198317 |  | (70703) | 230521 |
|  Earned revenue: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net premiums earned | $— | $93328 | $61161 | $— | $— | $154489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | 1374 | 1762 | 1294 |  | (1294) | 3136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy administration income | 28667 |  |  |  | (26813) | 1854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claims management income | 5941 |  |  |  | (5941) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 72 | 4638 | 3045 | 1026 | (1193) | 7588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 96 | 529 | 363 |  | (39) | 949 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 36150 | 100257 | 65863 | 1026 | (35280) | 168016 |
|  Expenses: |  |  |  |  |  |  |
|  Losses and loss adjustment expenses | 3301 | 21551 | 26580 |  | (5941) | 45491 |
|  Policy acquisition costs, net of ceding commission |  | 29105 | 26427 |  | (35247) | 20285 |
|  General and administrative expenses | 9555 | 6832 | 901 | 9889 | (89) | 27088 |
|  Interest expense |  |  | 1317 | 2309 | (1143) | 2483 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 12856 | 57488 | 55225 | 12198 | (42420) | 95347 |
|  Income (loss) before income taxes | $23294 | $42769 | $10638 | $(11172) | $7140 | $72669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 17250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | 55419 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | 7386 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | $48033 |

---

---

| | |
|:---|:---|
| ***1*** = | The Reciprocal Exchanges receive a subscriber contribution of 10% of the policy premium which is recorded to additional paid-in capital as received. For the three months ended March 31, 2026, total contributions received were $15,007.  |

---

---

| | |
|:---|:---|
|  | **Three Months Ended<br>March 31, 2026** |
|  | **($ in thousands)** |
| (1) Net operating income to Safepoint shareholders | $48755 |
| (1) Managed premium | $989916 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance Services revenue | $36150 |
| (1) Insurance Services EBITDA | $23553 |
| (1) Insurance Services EBITDA Margin | 65.2% |
| (1) Adjusted general expense ratio | 7.8% |
|  (1)(2)Return on equity to Safepoint shareholders | 88.4% |

---

------

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

---

| | |
|:---|:---|
|  | **Three Months Ended<br>March 31, 2026** |
|  | **($ in thousands)** |
| (1) Adjusted Reciprocal Exchange combined ratio | 70.8% |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities loss ratio | 23.1% |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities expense ratio | 38.5% |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities combined ratio | 61.6% |

---

(1) Non-GAAP financial measure. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of the
non-GAAP financial measure in accordance with their most applicable U.S. GAAP measure.

(2) For the three months ended March 31, 2026 and 2025, net income attributable to the controlling interest is annualized to
arrive at return on equity to Safepoint shareholders.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
|  | **Insurance<br>Services** | **Risk-<br>bearing<br>Entities** | **Reciprocal<br>Exchanges*<sup>1</sup>*** | **Corporate &<br>Other** | **Eliminations** | **Total** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
|  Gross written premium | $— | $87528 | $164346 | $— | $(68549) | $183325 |
|  Gross earned premium |  | 103216 | 142786 |  | (57661) | 188340 |
|  Earned revenue: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net premiums earned | $— | $83035 | $21929 | $— | $— | $104964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | 796 | 517 | 1114 |  | (1114) | 1313 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy administration income | 27692 |  |  |  | (26909) | 783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claims management income | 4562 |  |  |  | (4562) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 60 | 2580 | 2336 | 572 | (1102) | 4446 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 66 | 518 | 331 |  |  | 915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 33176 | 86650 | 25710 | 572 | (33687) | 112421 |
|  Expenses: |  |  |  |  |  |  |
|  Losses and loss adjustment expenses | 2119 | 23323 | 19705 |  | (4563) | 40584 |
|  Policy acquisition costs, net of ceding commission |  | 46325 | (9967) |  | (25387) | 10971 |
|  General and administrative expenses | 7871 | 3832 | 459 | 1713 | (48) | 13827 |
|  Interest expense |  |  | 1251 | 1559 | (1054) | 1756 |
|  Loss on debt extinguishment |  |  |  | 8873 |  | 8873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 9990 | 73480 | 11448 | 12145 | (31052) | 76011 |
|  Income (loss) before income taxes | $23186 | $13170 | $14262 | $(11573) | $(2635) | $36410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 8820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | 27590 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | 11036 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | $16554 |

---

---

| | |
|:---|:---|
| ***1*** = | The Reciprocal Exchanges receive a subscriber contribution of 10% of the policy premium which is recorded to additional paid-in capital as received. For the three months ended March 31, 2025, total contributions received were $11,892.  |

---

------

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

---

| | | |
|:---|:---|:---|
| | | **Three Months Ended<br>March 31, 2025** |
| | | **($ in thousands)** |
| (1) | Net operating income to Safepoint shareholders | $23678 |
| (1) | Managed premium | $736922 |
|  | Insurance Services revenue | $33176 |
| (1) | Insurance Services EBITDA | $23429 |
| (1) | Insurance Services EBITDA Margin | 70.6% |
| (1) | Adjusted general expense ratio | 6.4% |
| (1)(2) | Return on equity to Safepoint shareholders | 82.8% |
| (1) | Adjusted Reciprocal Exchange combined ratio | 30.1% |
|  | Risk-bearing Entities loss ratio | 28.1% |
|  | Risk-bearing Entities expense ratio | 60.4% |
|  | Risk-bearing Entities combined ratio | 88.5% |

---

(1) Non-GAAP financial measure. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of the non-GAAP financial measure in accordance with their most applicable U.S. GAAP measure.

(2) For the three months ended March 31, 2026 and 2025, net income attributable to the controlling interest is annualized
to arrive at return on equity to Safepoint shareholders.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|  | **Insurance<br>Services** | **Risk-<br>bearing<br>Entities** | **Reciprocal<br>Exchanges*<sup>1</sup>*** | **Corporate &<br>Other** | **Eliminations** | **Total** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
|  Gross written premium | $— | $401521 | $804124 | $— | $(278407) | $927238 |
|  Gross earned premium |  | 399590 | 666014 |  | (262314) | 803290 |
|  Earned revenue: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net premiums earned | $— | $344996 | $132881 | $— | $— | $477877 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | 4371 | 2309 | 5585 |  | (5585) | 6680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy administration income | 135727 |  |  |  | (132507) | 3220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claims management income | 21019 |  |  |  | (21019) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 313 | 12620 | 13461 | 3257 | (4735) | 24916 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 319 | 2087 | 1568 |  | (358) | 3616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 161749 | 362012 | 153495 | 3257 | (164204) | 516309 |
|  Expenses: |  |  |  |  |  |  |
|  Losses and loss adjustment expenses | 10296 | 69363 | 86634 |  | (21018) | 145275 |
|  Policy acquisition costs, net of ceding commission |  | 138873 | 39356 |  | (119071) | 59158 |
|  General and administrative expenses | 36581 | 19518 | 7692 | 10894 | (291) | 74394 |
|  Interest expense |  |  | 5274 | 9354 | (4539) | 10089 |
|  Loss on debt extinguishment |  |  |  | 8873 |  | 8873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 46877 | 227754 | 138956 | 29121 | (144919) | 297789 |
|  Income (loss) before income taxes | $114872 | $134258 | $14539 | $(25864) | $(19285) | $218520 |

---

------

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
| **Insurance<br>Services** | **Risk-<br>bearing<br>Entities** | **Reciprocal<br>Exchanges*<sup>1</sup>*** | **Corporate &<br>Other** | **Eliminations** | **Total** |
| **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 52937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | 165583 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of noncontrolling interest | 8367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | $157216 |

---

---

| | |
|:---|:---|
| ***1*** = | The Reciprocal Exchanges receive a subscriber contribution of 10% of the policy premium which is recorded to additional paid-in capital as received. For the year ended December 31, 2025, total contributions received were $57,654.  |

---

------

##### [**Table of Contents**](#toc)
**Key Operating and Financial Metrics:** 

---

| | |
|:---|:---|
|  | **Year Ended<br>December 31, 2025** |
|  | **($ in thousands)** |
| (1) Net operating income to Safepoint shareholders | $165645 |
| (1) Managed premium | $985298 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance Services revenue | $161749 |
| (1) Insurance Services EBITDA | $115926 |
| (1) Insurance Services EBITDA Margin | 71.7% |
| (1) Adjusted general expense ratio | 6.9% |
| (1) Return on equity to Safepoint shareholders | 103.5% |
| (1) Adjusted Reciprocal Exchange combined ratio | 70.2% |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities loss ratio | 20.1% |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities expense ratio | 45.9% |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities combined ratio | 66.0% |

---

(1) Non-GAAP financial measure. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of the non-GAAP financial measure in accordance with their most applicable U.S. GAAP measure.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
|  | **Insurance<br>Services** | **Risk-<br>bearing<br>Entities** | **Reciprocal<br>Exchanges*<sup>1</sup>*** | **Corporate &<br>Other** | **Eliminations** | **Total** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
|  Gross written premium | $— | $385664 | $431584 | $— | $(174656) | $642592 |
|  Gross earned premium |  | 408899 | 200104 |  | (80465) | 528538 |
|  Earned revenue: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net premiums earned | $— | $241045 | $(3055) | $— | $— | $237990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | 1845 | 2947 | 3044 |  | (3044) | 4792 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy administration income | 66607 |  |  |  | (65945) | 662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claims management income | 7822 |  |  |  | (7822) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 164 | 10041 | 4381 | 2779 | (3386) | 13979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 17 | 2883 | 1836 |  |  | 4736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 76455 | 256916 | 6206 | 2779 | (80197) | 262159 |
|  Expenses: |  |  |  |  |  |  |
|  Losses and loss adjustment expenses | 5328 | 106848 | 31696 |  | (7822) | 136050 |
|  Policy acquisition costs, net of ceding commission |  | 85414 | (23221) | 2270 | (25586) | 38877 |
|  General and administrative expenses | 24646 | 14765 | 11093 | 3695 | (1937) | 52262 |
|  Interest expense |  |  | 3768 | 4231 | (3255) | 4744 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 29974 | 207027 | 23336 | 10196 | (38600) | 231933 |
|  Income (loss) before income taxes | $46481 | $49889 | $(17130) | $(7417) | $(41597) | $30226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 5970 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | 24256 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss of noncontrolling interest | (17026) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | $41282 |

---

------

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

---

| | |
|:---|:---|
| ***1*** = | The Reciprocal Exchanges receive a subscriber contribution of 10% of the policy premium which is recorded to additional paid-in capital as received. For the year ended December 31, 2024, total contributions received were $26,975.  |

---

**Key Operating and Financial Metrics:** 

---

| | |
|:---|:---|
|  | **Year Ended<br>December 31, 2024** |
|  | **($ in thousands)** |
| (1) Net operating income to Safepoint shareholders | $40033 |
| (1) Managed premium | $653551 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance Services revenue | $76455 |
| (1) Insurance Services EBITDA | $47821 |
| (1) Insurance Services EBITDA Margin | 62.5% |
| (1) Adjusted general expense ratio | 6.5% |
| (1) Return on equity to Safepoint shareholders | 63.5% |
| (1) Adjusted Reciprocal Exchange combined ratio | 81.5% |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities loss ratio | 44.3% |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities expense ratio | 41.6% |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities combined ratio | 85.9% |

---

(1) Non-GAAP financial measure. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of the non-GAAP financial measure in accordance with their most applicable U.S. GAAP measure.

**Components of Our Results of Operations** 

**Gross written premiums** 

Gross written premiums are the amounts received, or to be received, for insurance policies written or assumed by us during a specific period of time, without reduction for policy acquisition costs, reinsurance costs or other deductions. The volume of our gross written premiums in any given period is generally influenced by new business submissions, binding of new business submissions into policies, renewals of existing policies and average size and premium rate of bound policies.

**Gross earned premiums** 

Gross earned premiums represent the portion of our gross written premiums earned during a fiscal period from assumed, direct policies written (including those assumed from Florida Citizens and Louisiana Citizens), and subsequent renewals of such policies. Gross written premiums associated with assumed policies from Florida Citizens and Louisiana Citizens and gross written premium associated with voluntary and renewal policies are earned ratably over the remaining term of the policy. All such new and renewal policies currently have a term of twelve months from date of issuance.

**Ceded earned premiums** 

Ceded earned premiums are the amount of gross earned premiums ceded to reinsurers. We enter into reinsurance agreements to limit our exposure to potential losses. The volume of our ceded earned premiums is impacted by the level of our gross earned premiums and any decision we make to increase or decrease retention levels and policy limits. We recognize the cost of our reinsurance program ratably over the term of the reinsurance agreement, which is typically twelve months. Our ceded earned premiums represent the costs of reinsurance to cover losses from catastrophes that exceed the retention levels defined by our catastrophe excess of loss reinsurance contracts. The rates we pay for reinsurance are based primarily on policy exposures reflected in gross earned premiums.

------

##### [**Table of Contents**](#toc)
**Net earned premiums** 

Net earned premiums represent the earned portion of our net written premiums. Our insurance policies generally have a term of one year, and premiums are earned pro rata over the term of the policy.

**Losses and loss adjustment expenses** 

Losses and loss adjustment expenses represent the costs incurred for insured losses. This includes losses under a claims-made or occurrence policy (whether paid or unpaid), expenses for settling claims (such as attorneys' fees, investigation, appraisal, adjustment and defense costs) and a portion of operating expenses allocated to claim resolution, net of any losses ceded to reinsurers. Losses and loss adjustment expenses also include a provision for claims that have occurred but have not yet been reported to the insurer. These expenses are a function of the amount and type of insurance contracts the Company writes and the loss experience associated with the underlying coverage. In general, our net losses and loss adjustment expenses are affected by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the occurrence, frequency and severity of claims associated with the particular types of insurance contracts that we write;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the mix of business we write;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the legal or regulatory environment related to the business we write;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• trends in legal defense costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inflation in the cost of claims, including inflation related to wages, medical costs and building materials, as well as
inflation related to the increase in the severity of claims above general economic inflation (i.e., social inflation); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the reinsurance agreements we have in place at the time of a loss.

Losses and loss adjustment expenses are based on actual losses and expenses, as well as an actuarial analysis of the estimated losses, including losses incurred during the period and changes in estimates from prior periods. Losses and loss adjustment expenses may be paid out over multiple years.

**Policy acquisition costs** 

Policy acquisition costs are principally comprised of commissions we pay to our brokers and premium-related taxes, which are net of any ceding commissions we receive on business ceded through our reinsurance agreements. Policy acquisition costs are deferred and amortized ratably over the terms of the related agreements.

**General and administrative expenses** 

General and administrative expenses include employee compensation and related expenses, system and technology costs, depreciation and amortization, professional service fees (such as legal, accounting and actuarial services) and all other general expenses of the Company.

**Net investment income** 

We earn interest income on our portfolio of invested assets, which are comprised of fixed-maturity securities, cash and cash equivalents, and other invested assets.

------

##### [**Table of Contents**](#toc)
**Net realized investment loss** 

Net realized investment loss is a function of the difference between the amortized cost of securities sold and the proceeds received by the Company upon the sale of such security.

**Policy fee income** 

Policy fee income represents nonrefundable fees for insurance coverage which are intended to reimburse a portion of the costs incurred to underwrite the policy. Policy fees revenue is recognized ratably over the term of the insurance contracts.

**Other insurance-related income** 

Other insurance-related income represents revenue we receive for providing insurance-related services.

**Interest expense** 

Interest expense consists of interest paid on our commercial loans and Credit Facility (as defined below) and amortization of debt issuance costs.

**Provision for income tax expense** 

Income tax expense primarily relates to federal income taxes. The amount of income tax expense or benefit recorded in future periods will depend on the jurisdictions in which we operate and the tax laws and regulations in effect.

**Policy administration income** 

Policy administration income consists of fees earned for administrative, operational, and support services provided in connection with the Company's Reciprocal Exchanges and Risk-Bearing Entities segments, along with other third-party insurers.

**Claims management income** 

Claims management income represents fees earned for providing claims handling on behalf of the Company's Reciprocal Exchanges and Risk-Bearing Entities segments, along with other third-party insurers. These services usually include claims intake, evaluation, settlement administration, and related reporting and oversight activities.

**Key Operating and Financial Metrics** 

We discuss certain key metrics, described below, which provide useful information about our business and the operational factors underlying our financial performance.

*Loss ratio*, expressed as a percentage, is the ratio of net losses and loss adjustment expenses to net earned premiums.

*Expense ratio*, expressed as a percentage, is the ratio of total expenses excluding losses and loss adjustment expenses and interest expenses to net earned premiums.

*Combined ratio*, expressed as a percentage, is the sum of loss ratio and expense ratio. A combined ratio under 100.0% indicates an underwriting profit. A combined ratio over 100.0% indicates an underwriting loss.

------

##### [**Table of Contents**](#toc)
*Return on equity<sup>2</sup>*, expressed as a percentage, is the ratio of net income to the average stockholders' equity over the reporting period.

**Results of Operations** 

**Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025** 

The following table summarizes our results of operations for the three months ended March 31, 2026 and 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,<br>2026** | **Three Months Ended<br>March 31,<br>2025** | **$ Change** | **% Change** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
|  Revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross written premiums | $184134 | $183325 | 809 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in gross unearned premiums | 46387 | 5015 | 41372 | 825.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross earned premiums | 230521 | 188340 | 42181 | 22.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded earned premiums | (76032) | (83376) | 7344 | -8.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 154489 | 104964 | 49525 | 47.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | 3136 | 1313 | 1823 | 138.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 7989 | 4445 | 3544 | 79.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized investment loss | (400) |  | (400) | -100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 2802 | 1699 | 1103 | 64.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 168016 | 112421 | 55595 | 49.5% |
|  Expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses, net | 45491 | 40584 | 4907 | 12.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy acquisition costs, net of ceding commissions | 20285 | 10971 | 9314 | 84.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 27088 | 13827 | 13261 | 95.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 2483 | 1756 | 727 | 41.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on debt extinguishment |  | 8873 | (8873) | -100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 95347 | 76011 | 19336 | 25.4% |
|  Income before income taxes | 72669 | 36410 | 36259 | 99.6% |
|  Provision for income tax expense | 17250 | 8820 | 8430 | 95.6% |
|  Net income | 55419 | 27590 | 27829 | 100.9% |
|  Net income from non-controlling interest | 7386 | 11036 | (3650) | -33.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income attributable to controlling interest** | $**48033** | $**16554** | **31479** | **190.2%** |
|  Key Operating and Financial Metrics: |  |  |  |  |
| (1) Net operating income to Safepoint shareholders | $48755 | $23678 |  |  |
| (1) Managed premium | $989916 | $736922 |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance Services revenue | $36150 | $33176 |  |  |
| (1) Insurance Services EBITDA | $23553 | $23429 |  |  |
| (1) Insurance Services EBITDA Margin | 65.2% | 70.6% |  |  |

---

<sup>2</sup> For the three months ended March 31, 2026 and 2025, net income is annualized to arrive at return on equity.

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,<br>2026** | **Three Months Ended<br>March 31,<br>2025** | **$ Change** | **% Change** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
| (1) Adjusted general expense ratio | 7.8% | 6.4% |  |  |
|  (1)(2) Return on equity to Safepoint shareholders | 88.4% | 82.8% |  |  |
| (1) Adjusted Reciprocal Exchange combined ratio | 70.8% | 30.1% |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities loss ratio | 23.1% | 28.1% |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities expense ratio | 38.5% | 60.4% |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities combined ratio | 61.6% | 88.5% |  |  |

---

(1) Non-GAAP financial measure. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of the
non-GAAP financial measure in accordance with their most applicable U.S. GAAP measure.

(2) For the three months ended March 31, 2026 and 2025, net income attributable to the controlling interest is annualized to
arrive at return on equity to Safepoint shareholders.

Our net income was $55.4 million for three months ended March 31, 2026 compared to $27.6 million for the three months ended March 31, 2025. The $27.8 million increase was primarily attributable to the increase in net earned premiums due to participation in depopulation programs offset by an increase in policy acquisition costs and general and administrative expenses. See "—*Results by Operating Segment*" for further discussion of our operations.

The Company is required to consolidate the operations of its Reciprocal Exchanges segment, as the Company is deemed to have a controlling interest in Cajun and Manatee through its role as attorney-in-fact, although it does not have any equity ownership over these reciprocal exchanges. The portion of the reciprocals' earnings or losses attributable to subscribers is reflected as a non-controlling interest in the Company's consolidated statements of comprehensive income.

**Premiums** 

The following table shows the gross written premiums during the three months ended March 31, 2026 and 2025 broken out by segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,<br>2026** | **Three Months Ended<br>March 31,<br>2025** | **$ Change** | **% Change** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
|  Gross written premiums |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reciprocal Exchanges | $156638 | $164346 | $(7709) | -4.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities | 27496 | 18979 | 8517 | 44.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total gross written premiums | $184134 | $183325 | $809 | 0.4% |

---

The Insurance Services segment does not have gross written premiums.

*Gross Written Premiums* on a consolidated basis for the three months ended March 31, 2026 and 2025 was $184.1 million and $183.3 million, respectively. The $0.8 million increase was primarily attributable to a $38.6 million increase in direct written premium, offset by a decrease of $37.8 million in assumed written premium driven by lower activity from depopulation programs in Louisiana and Florida compared to the prior year.

------

##### [**Table of Contents**](#toc)
*Gross Earned Premiums* on a consolidated basis for the three months ended March 31, 2026 and 2025 was $230.5 million and $188.3 million, respectively. The $42.2 million increase was primarily attributable to the increase in premium growth generated in the prior quarters compared to the prior year.

*Ceded Earned Premiums* for the three months ended March 31, 2026 and 2025 was $76.0 million and $83.4 million, respectively, representing 33.0% and 44.3%, respectively, of gross earned premiums. Our premiums ceded represent costs of reinsurance to cover losses from catastrophes that exceed retention levels up to a stated limit defined by our catastrophe excess of loss, catastrophe bond reinsurance agreements, and reinsurance quota share agreements. The rates we pay for catastrophe reinsurance are based primarily on policy exposures reflected in gross earned premiums. The $7.3 million decrease was primarily attributable to an increase in the Company's group reinsurance retention, a decrease of $10.5 million related to the quota shares treaty reductions in the prior year, and a decrease of $2.3 million related to XOL coverage, offset by a $5.2 million increase of Catastrophe Bond activity compared to the prior year.

*Net Earned Premiums* for the three months ended March 31, 2026 and 2025 was $154.5 million and $105.0 million, respectively, and reflect the gross earned premiums less ceded earned premium as described above. The $49.5 million increase was primarily attributable to the increase in gross earned premiums and a decrease in ceded earned premiums due to the factors listed above.

*Policy Fee Income* for the three months ended March 31, 2026 and 2025 was $3.1 million and $1.3 million, respectively. The $1.8 million increase was primarily attributable to an increase of $1.2 million and $0.6 million in policy fee income recognized by the Risk-Bearing Entities and Insurance Services segments, respectively.

*Net Investment Income* for the three months ended March 31, 2026 and 2025 was $8.0 million and $4.4 million, respectively. The $3.5 million increase was primarily attributable to increases of $0.6 million in net investment income related to fixed-maturity securities, $1.5 million in net investment income related to cash and cash equivalents, and a $1.5 million increase in the fair value of other invested assets in the current period. These increases are directly related to the increase in the average investable assets compared to the prior year, offset by lower interest rates compared to the prior year. See *Note 2*—*Investments* to our consolidated financial statements for more information.

*Net Realized Investment Loss* for the three months ended March 31, 2026 and 2025 was $0.4 million and immaterial, respectively. The $0.4 million increase was primarily attributable to accelerated premium amortization related to principal paydowns of certain fixed-maturity securities.

*Other Insurance Related Income* for the three months ended March 31, 2026 and 2025 was $2.8 million and $1.7 million, respectively. The $1.1 million increase was primarily attributable to an increase of $1.0 million of BPO income from business support services that the Company provides to entities that the Company manages but does not consolidate.

**Losses**

*Losses and Loss Adjustment Expenses* for the three months ended March 31, 2026 and 2025 amounted to $45.5 million and $40.6 million, respectively. Loss and Loss Adjustment Expenses include our costs to settle claims and the salaries and compensation expenses of our claims desk, field and litigation teams. The $4.9 million increase was primarily attributable to a higher volume of policies in force, offset by a reduction in the loss ratio compared to the prior year.

------

##### [**Table of Contents**](#toc)
See "—*Critical Accounting Policies and Estimates—Reserves for Losses and Loss Adjustment Expenses*" for further information.

*Policy Acquisition Costs* for the three months ended March 31, 2026 and 2025 were $20.3 million and $11.0 million, respectively, and primarily reflect the amortization of deferred acquisition costs, which include commissions payable to agents and premium taxes, offset by the accretion of ceding commission income received from our quota share reinsurance agreements. The $9.3 million increase was primarily attributable to a higher volume of premiums in force.

*General and Administrative Expenses* for the three months ended March 31, 2026 and 2025 were approximately $27.1 million and $13.8 million, respectively. The $13.3 million increase was primarily attributable to a $6.0 million increase in employee compensation costs, a $3.4 million increase in severance-related payments, a $1.5 million increase in professional services expenses, and a $1.0 million increase in equity based compensation compared to the prior year.

*Interest Expense* for the three months ended March 31, 2026 and 2025 was $2.5 million and $1.8 million, respectively. The $0.7 million increase was primarily attributable to an increase of $0.5 million of interest expense and an increase of $0.2 million of amortization of debt issuance costs related to the Credit Agreement.

*Loss on debt extinguishment* for the three months ended March 31, 2026 and 2025 was $0 and $8.9 million, respectively. The $8.9 million decrease was attributable to the Company's penalty for early payoff of outstanding debt during 2025.

*Provision for Income Tax Expense* for the three months ended March 31, 2026 and 2025 was approximately $17.3 million and $8.8 million for federal and state income taxes, resulting in an effective tax rate of 23.7% and 24.2%, respectively. The effective tax rate differs from the statutory tax rate of 21.0% primarily due to state taxes as the tax benefit from equity compensation offsets the increase in the valuation allowance.

**Loss ratio**

The loss ratio applicable for three months ended March 31, 2026 and 2025 was 29.4% and 38.7%, respectively. This decrease in the loss ratio was due primarily to an increase in retention in the Company's reinsurance program with benign hurricane losses in the current year in combination with sustained rate adequacy and favorable claim frequency trends compared to the prior year.

**Expense ratio**

The expense ratio applicable for the three months ended March 31, 2026 and 2025 was 30.7% and 23.6%, respectively. The increase in the expense ratio was due to the increase in general and administrative expense and policy acquisition costs from a higher volume of direct written premium, which carry higher acquisition costs than assumed written premium, compared to the prior year, offset by an increase in net earned premiums due to an increase in retention in the Company's reinsurance program compared to the prior year.

------

##### [**Table of Contents**](#toc)
The following table summarizes the components of the expense ratio for the three months ended March 31, 2026 and 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2026** | **2025** | **2025** |
|  | **Expenses** | **% of Net<br>Earned<br>Premium** | **Expenses** | **% of Net<br>Earned<br>Premium** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy acquisition costs, net of ceding commissions | $20285 | 13.1% | $10971 | 10.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 27088 | 17.5% | 13827 | 13.2% |
|  **Total** | $47373 | 30.7% | $24798 | 23.6% |

---

We use our adjusted general expense ratio to evaluate our expense ratio. Our adjusted general expense ratio was 7.8%, and 6.4% for the three months ended March 31, 2026 and 2025, respectively. This 1.4% increase was mainly due to the increase in employee compensation costs related to an increase in employee headcount, offset by the increase in managed premiums compared to the prior year. Please see "*—Reconciliation of Non-GAAP Metrics—Adjusted general expense ratio*" for further information.

**Combined ratio**

The combined ratio is the measure of overall underwriting profitability before other income. Our combined ratio for the three months ended March 31, 2026 and 2025 was 60.1%, and 62.3%, respectively. The decrease in combined ratio is due to the factors described above.

**Return on Equity<sup>3</sup>** 

The return on equity applicable for the three months ended March 31, 2026 and 2025 was 102.4% and 202.0%, respectively. This decrease in the return on equity was primarily attributable to a $162.2 million increase in average total stockholders' equity related to increased profitability and subscriber contributions during 2025 offset by a $27.8 million increase in net income compared to the prior year.

**Year Ended December 31, 2025 Compared to Year Ended December 31, 2024** 

The following table summarizes our results of operations for the years ended December 31, 2025 and 2024: 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** | **$ Change** | **% Change** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
|  Revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross written premiums | $927238 | $642591 | 284647 | 44.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in gross unearned premiums | (123948) | (114052) | (9896) | 8.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross earned premiums | 803290 | 528539 | (274751) | 52.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded earned premiums | (325413) | (290549) | (34864) | 12.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 477877 | 237990 | 239887 | 100.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | 6680 | 4792 | 1888 | 39.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 24939 | 13802 | 11137 | 80.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized investment (loss) gain | (23) | 177 | (200) | -113.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 6836 | 5398 | 1438 | 26.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 516309 | 262159 | (254150) | 96.9% |

---

<sup>3</sup> For the three months ended March 31, 2026 and 2025, net income is annualized to arrive at return on equity.

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** | **$ Change** | **% Change** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
|  Expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses, net | 145275 | 136050 | 9225 | 6.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy acquisition costs, net of ceding commissions | 59158 | 38877 | 20281 | 52.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 74394 | 52262 | 22132 | 42.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 10089 | 4744 | 5345 | 112.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on debt extinguishment | 8873 |  | 8873 | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 297789 | 231933 | 65856 | 28.4% |
|  Income before income taxes | 218520 | 30226 | 188294 | 622.9% |
|  Provision for income tax expense | 52937 | 5970 | 46967 | 786.7% |
|  Net income | 165583 | 24256 | 141327 | 582.6% |
|  Net income (loss) from non-controlling interest | 8367 | (17026) | 25393 | -149.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income attributable to controlling interest** | $**157216** | $**41282** | 115934 | 280.8% |
|  Key Operating and Financial Metrics: |  |  |  |  |
| (1) Net operating income to Safepoint shareholders | $165645 | $40033 |  |  |
| (1) Managed premium | $985298 | $653551 |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance Services revenue | $161749 | $76455 |  |  |
| (1) Insurance Services EBITDA | $115926 | $47821 |  |  |
| (1) Insurance Services EBITDA Margin | 71.7% | 62.5% |  |  |
| (1) Adjusted general expense ratio | 6.9% | 6.5% |  |  |
| (1) Return on equity to Safepoint shareholders | 103.5% | 63.5% |  |  |
| (1) Adjusted Reciprocal Exchange combined ratio | 70.2% | 81.5% |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities loss ratio | 20.1% | 44.3% |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities expense ratio | 45.9% | 41.6% |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities combined ratio | 66.0% | 85.9% |  |  |

---

(1) Non-GAAP financial measure. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of the non-GAAP financial measure in accordance with their most applicable U.S. GAAP measure.

Our net income was $165.6 million for the year ended December 31, 2025 compared to $24.3 million for the year ended December 31, 2024. The $141.3 million increase was primarily attributable to an increase in net earned premiums offset by an increase in policy acquisition costs and general and administrative expenses. See *"—Results by Operating Segment*" for further discussion of our operations.

The Company is required to consolidate the operations of its Reciprocal Exchanges segment, as the Company is deemed to have a controlling interest in Cajun and Manatee through its role as attorney-in-fact, although it does not have any equity ownership over these reciprocal exchanges. The portion of the reciprocals' earnings or losses attributable to subscribers is reflected as a non-controlling interest in the Company's consolidated statements of comprehensive income.

------

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

The following table shows the gross written premiums during the years ended December 31, 2025 and 2024 broken out by segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** | **$ Change** | **% Change** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
|  Gross written premiums |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reciprocal Exchanges | $804124 | $431584 | $372540 | 86.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities | 123114 | 211008 | (87894) | -41.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total gross written premiums | $927238 | $642591 | $284647 | 44.3% |

---

The Insurance Services segment did not have gross written premiums for the years ended December 31, 2025 and 2024.

*Gross Written Premiums* on a consolidated basis for the years ended December 31, 2025 and 2024 was $927.2 million and $642.6 million, respectively. The $284.6 million increase was primarily attributable to $233.6 million policy additions assumed from depopulation programs in Louisiana and Florida, $26.2 million of voluntary growth in Texas, and $15.2 million of other surplus lines and reinsurance assumed.

*Gross Earned Premiums* on a consolidated basis for the years ended December 31, 2025 and 2024 was $803.3 million and $528.5 million, respectively. The $274.8 million increase was primarily attributable to the growth in gross written premiums during 2025.

*Ceded Earned Premiums* for the years ended December 31, 2025 and 2024 was $325.4 million and $290.5 million, respectively, representing 40.5% and 55.0%, respectively, of gross earned premiums. Our premiums ceded represent costs of reinsurance to cover losses from catastrophes that exceed retention levels up to a stated limit defined by our catastrophe excess of loss, catastrophe bond reinsurance agreements, and reinsurance quota share agreements. The rates we pay for catastrophe reinsurance are based primarily on policy exposures reflected in gross earned premiums. The $34.9 million increase was primarily attributable to increases of $18.9 million related to XOL coverage and, $36.0 million related to increased Catastrophe Bond activity compared to the prior year, offset by an increase in the Company's group reinsurance retention and a decrease of $20.0 million related to the quota share treaty reduction in 2024.

*Net Earned Premiums* for the years ended December 31, 2025 and 2024 was $477.9 million and $238.0 million, respectively, and reflect the gross earned premiums less ceded earned premium as described above. The $239.9 million increase was primarily attributable to an increase in gross earned premiums from increased depopulation programs activity offset by the increase in ceded earned premiums under our ceded reinsurance treaties.

*Policy Fee Income* for the years ended December 31, 2025 and 2024 was $6.7 million and $4.8 million, respectively. The $1.9 million increase was primarily attributable to an increase in policy fee income recognized by the Insurance Services segment compared to the prior year, offset by a $0.6 million decrease in policy fee income recognized by the Risk-Bearing Entities segment.

*Net Investment Income* for the years ended December 31, 2025 and 2024 was $24.9 million and $13.8 million, respectively. The $11.1 million increase was primarily attributable to increases of $1.4 million in net investment income related to fixed-maturity securities and

------

##### [**Table of Contents**](#toc)
$9.7 million in net investment income related to cash and cash equivalents. These increases are directly related to the increase in the average investable assets compared to the prior year, offset by lower interest rates compared to the prior year. See *Note 2*—*Investments* to our consolidated financial statements for more information.

*Net Realized Investment Gains* for the years ended December 31, 2025 and 2024 were $0.0 million and $0.2 million, respectively. The $0.2 million decrease was primarily attributable to a decrease in the number of fixed-maturity securities sold during the year ended December 31, 2025.

*Other Insurance Related Income* for the years ended December 31, 2025 and 2024 was $6.8 million and $5.4 million, respectively. The $1.4 million increase was primarily attributable to an increase of $3.2 million of BPO income from business support services that the Company provides to entities that the Company manages but does not consolidate, offset by a $1.3 million decrease in grant revenue related to the Insure Louisiana Incentive Program.

**Losses** 

Our consolidated Losses and Loss Adjustment Expenses amounted to $145.3 million and $136.1 million for the years ended December 31, 2025 and 2024, respectively. The $9.2 million increase was primarily attributable to a higher volume of policies in force, offset by a decrease in catastrophic events in 2025 compared to the prior year. Loss and Loss Adjustment Expenses include our costs to settle claims and the salaries and compensation expenses of our claims desk, field and litigation teams. See *"—Critical Accounting Policies and Estimates—Reserves for Losses and Loss Adjustment Expenses*" for further information.

*Policy Acquisition Costs* for the years ended December 31, 2025 and 2024 were $59.2 million and $38.9 million, respectively. The $20.3 million increase was primarily attributable to a higher volume of premiums in force.

*General and Administrative Expenses* for the years ended December 31, 2025 and 2024 were approximately $74.4 million and $52.3 million, respectively. The $22.1 million increase was primarily attributable to a $14.1 million increase in salaries, wages, incentive plan compensation, and a $5.4 million increase in miscellaneous expenses, including postage and bank service charges, offset by a $5.8 million decrease in depreciation and amortization compared to the prior year.

*Interest Expense* for the three months ended March 31, 2026 and 2025 was $2.5 million and $1.8 million, respectively. The $0.7 million increase was primarily attributable to an increase of $0.5 million of interest expense and an increase of $0.2 million of amortization of debt issuance costs related to the Credit Agreement. Interest Expense for the years ended December 31, 2025 and 2024 was $10.1 million and $4.7 million, respectively. The $5.4 million increase was primarily attributable to an increase of $4.5 million of interest expense related to the Credit Agreement entered into during 2025 offset by the retirement of other long-term debt and an increase of $0.9 million of amortization of debt issuance costs related to the Credit Agreement entered into during 2025.

*Loss on debt extinguishment* for the years ended December 31, 2025 and 2024 was $8.9 million and $0, respectively. The $8.9 million increase was attributable to the Company's penalty for early payoff of outstanding debt during 2025.

*Provision for Income Tax Expense* for the years ended December 31, 2025 and 2024 was approximately $52.9 million and $6.0 million for federal and state income taxes*,* resulting in an effective tax rate of 24.2% and 19.8%, respectively. The effective tax rate differs from the

------

##### [**Table of Contents**](#toc)
statutory tax rate of 21.0% primarily due to increased tax benefits related to employee equity compensation. There were no material changes in our income tax estimation methodologies for the periods presented.

**Loss ratio** 

The loss ratio applicable for the years ended December 31, 2025 and 2024 was 30.4% and 57.2%, respectively. This decrease in the loss ratio was due primarily to the increase in net earned premiums, offset by an increase in losses and loss adjustment expenses.

**Expense ratio** 

The expense ratio applicable for the years ended December 31, 2025 and 2024 was 27.9% and 38.3%, respectively. The decrease in the expense ratio was due to the increase in net earned premiums, offset by an increase in general and administrative expense and policy acquisition costs compared to the prior year.

The following table summarizes the components of the expense ratio for the years ended December 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Expenses** | **% of Net<br>Earned<br>Premium** | **Expenses** | **% of Net<br>Earned<br>Premium** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy acquisition costs, net of ceding commissions | $59158 | 12.4% | $38877 | 16.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 74394 | 15.6% | 52262 | 22.0% |
|  **Total** | $133552 | 27.9% | $91139 | 38.3% |

---

We use our adjusted general expense ratio to evaluate our expense ratio. Our adjusted general expense ratio was 6.9%, and 6.5% for the years ended December 31, 2025 and 2024, respectively. This 0.4% increase was due to the increase in general and administrative expense, offset by the increase in managed premiums compared to the prior year. Please see "*—Reconciliation of Non-GAAP Metrics—Adjusted general expense ratio*" for further information.

**Combined ratio** 

The combined ratio is the measure of overall underwriting profitability before other income. Our combined ratio for the years ended December 31, 2025 and 2024 was 58.3%, and 95.5%, respectively. The decrease in combined ratio is due to the factors described above.

**Return on Equity** 

The return on equity applicable for the years ended December 31, 2025 and 2024 was 95.8% and 40.0%, respectively. This increase in the return on equity was primarily attributable to the increase in net income compared to the prior year and common stock dividends issued during 2025.

------

##### [**Table of Contents**](#toc)
**Results by Operating Segment** 

**Insurance Services Segment** 

The following table summarizes the results of the Insurance Services segment for the three months ended March 31, 2026 and 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Insurance Services** | **Insurance Services** | **Insurance Services** | **Insurance Services** | **Insurance Services** |
| **($ in thousands, except percentages)** | **Three Months<br>Ended March 31,<br>2026** | **Three Months<br>Ended March 31,<br>2025** | **$ Change** | **% Change** |
|  Earned revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | $1374 | $796 | $578 | 72.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy administration income | 28667 | 27692 | 975 | 3.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claims management income | 5941 | 4562 | 1379 | 30.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 72 | 60 | 12 | 19.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 96 | 66 | 30 | 46.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 36150 | 33176 | 2974 | 9.0% |
|  Expenses: |  |  |  |  |
|  Losses and loss adjustment expenses | 3301 | 2119 | 1182 | 55.8% |
|  General and administrative expenses | 9555 | 7871 | 1684 | 21.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 12856 | 9990 | 2866 | 28.7% |
|  Income before income taxes | $23294 | $23186 | $108 | 0.5% |

---

The Insurance Services segment revenue for the three months ended March 31, 2026 and 2025 was $36.2 million and $33.2 million, respectively, representing an increase of $3.0 million, or 9.0%. The increase in total revenue for the Insurance Services segment was primarily due to an increase in Reciprocal Exchanges' gross earned premium, as the total revenue is primarily derived from services provided to the Reciprocal Exchanges.

The Insurance Services segment income before taxes for the three months ended March 31, 2026 and 2025 was $23.3 million and $23.2 million, respectively, representing an increase of $0.1 million, or 0.5%. The increase in total income before taxes for the Insurance Services segment was primarily due to an increase in claims management and policy administration income, offset by an increase in general and administrative expenses in the prior year.

Intersegment transactions are not eliminated from the Insurance Services segment's results but are eliminated in consolidation. Total revenue eliminations related to the Insurance Services segment was $32.8 million and $31.4 million for the three months ended March 31, 2026 and 2025, respectively.

The following table is a breakdown of the total revenues and income before income taxes of the Insurance Services segment before intersegment eliminations for the three months ended March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31, 2026** | **Three Months Ended<br>March 31, 2026** |
| **($ in thousands)** | **Total<br>Revenue** | **Income<br>before<br>Taxes** |
|  Reciprocal Exchanges | $34199 | $22103 |
|  BPO | 1951 | 1191 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $36150 | $23294 |

---

------

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

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31, 2025** | **Three Months Ended<br>March 31, 2025** |
| **($ in thousands)** | **Total<br>Revenue** | **Income<br>before<br>Taxes** |
|  Reciprocal Exchanges | $32325 | $22358 |
|  BPO | 851 | 828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $33176 | $23186 |

---

The following table summarizes the results of the Insurance Services segment for each of the years ended December 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Insurance Services** | **Insurance Services** | **Insurance Services** | **Insurance Services** | **Insurance Services** |
| **($ in thousands, except percentages)** | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** | **$ Change** | **% Change** |
|  Earned revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | $4371 | $1845 | $2526 | 136.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy administration income | 135727 | 66607 | 69120 | 103.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claims management income | 21019 | 7822 | 13197 | 168.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 313 | 164 | 149 | 90.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 319 | 17 | 302 | 1776.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 161749 | 76455 | 85294 | 111.6% |
|  Expenses: |  |  |  |  |
|  Loss adjustment expenses | 10296 | 5328 | 4968 | 93.2% |
|  General and administrative expenses | 36581 | 24646 | 11935 | 48.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 46877 | 29974 | 16903 | 56.4% |
|  Income before income taxes | $114872 | $46481 | $68391 | 147.1% |

---

The Insurance Services segment revenue for the years ended December 31, 2025 and 2024 was $161.7 million and $76.5 million, respectively, representing an increase of $85.3 million, or 111.6%. The increase in total revenue for the Insurance Services segment was primarily due to an increase in Reciprocal Exchanges' gross written premium, as the total revenue is primarily derived from services provided to the Reciprocal Exchanges.

The Insurance Services segment income before taxes for the years ended December 31, 2025 and 2024 was $114.9 million and $46.5 million, respectively, representing an increase of $68.4 million, or 147.1%. The increase in total income before taxes for the Insurance Services segment was primarily due to an increase in total revenue, offset by an increase in general and administrative expenses in the prior year.

Intersegment transactions are not eliminated from the Insurance Services segment's results but are eliminated in consolidation. Total revenue eliminations related to the Insurance Services segment was $153.9 million and $73.8 million for the years ended December 31, 2025 and 2024, respectively.

------

##### [**Table of Contents**](#toc)
The following table is a breakdown of the total revenues and income before income taxes of the Insurance Services segment before intersegment eliminations for the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31, 2025** | **Year Ended<br>December 31, 2025** |
| **($ in thousands)** | **Total<br>Revenue** | **Income<br>before<br>Taxes** |
|  Reciprocal Exchanges | $158210 | $112741 |
|  BPO | 3539 | 2131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $161749 | $114872 |
|  | **Year Ended<br>December 31, 2024** | **Year Ended<br>December 31, 2024** |
| **($ in thousands)** | **Total<br>Revenue** | **Income<br>before<br>Taxes** |
|  Reciprocal Exchanges | $75780 | $46100 |
|  BPO | 675 | 381 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $76455 | $46481 |

---

**Risk-Bearing Entities Segment** 

The following table summarizes the results of the Risk-Bearing Entities segment for each of the three months ended March 31, 2026 and 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Risk-bearing Entities** | **Risk-bearing Entities** | **Risk-bearing Entities** | **Risk-bearing Entities** | **Risk-bearing Entities** |
| **($ in thousands, except percentages)** | **Three Months<br>Ended March 31,<br>2026** | **Three Months<br>Ended March 31,<br>2025** | **$ Change** | **% Change** |
|  Gross written premium | $62356 | $87528 | $(25172) | -28.8% |
|  Gross earned premium | 102907 | 103216 | (309) | -0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earned revenue: Net earned premiums | $93328 | $83035 | $10293 | 12.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | 1762 | 517 | 1245 | 240.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 4638 | 2580 | 2058 | 79.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 529 | 518 | 11 | 2.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 100257 | 86650 | 13607 | 15.7% |
|  Expenses: |  |  |  |  |
|  Losses and loss adjustment expenses | 21551 | 23323 | (1772) | -7.6% |
|  Policy acquisition costs, net of ceding commission | 29105 | 46325 | (17220) | -37.2% |
|  General and administrative expenses | 6832 | 3832 | 3000 | 78.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 57488 | 73480 | (15992) | -21.8% |
|  Income before income taxes | $42769 | $13170 | $29599 | 224.7% |

---

The Risk-Bearing Entities segment revenue for the three months ended March 31, 2026 and 2025 was $100.3 million and $86.7 million, respectively, representing an increase of $13.6 million, or 15.7%. The increase in total revenue for the Risk-Bearing Entities segment was primarily due to a $10.3 million increase in net earned premiums from increased participation in

------

##### [**Table of Contents**](#toc)
the reinsurance of the Reciprocal Exchanges and a higher retention in the Company's wholly owned insurance company compared to the prior year.

The Risk-Bearing Entities segment income before taxes for the three months ended March 31, 2026 and 2025 was $42.8 million and $13.2 million, respectively, representing an increase of $29.6 million, or 224.7%. The increase in total income before taxes for the Risk-Bearing Entities segment was primarily due to a larger participation in the reinsurance of the Reciprocal Exchanges with zero catastrophe losses in the current year, a higher retention in the Company's wholly owned insurance company, and lower policy acquisition costs compared to the prior year.

The Risk-Bearing Entities segment's gross written premium for the three months ended March 31, 2026 and 2025 was $62.4 million and $87.5 million, respectively, representing a decrease of $25.2 million. Gross written premiums decreased due to the change in quota share assumed reinsurance from the Reciprocal Exchanges segment during the second quarter of 2025. The Risk-Bearing Entities segment's gross earned premium was relatively flat for the three months ended March 31, 2026 and 2025 due to the movement of business to the Reciprocal Exchanges segment offset by an increase in the participation of the reinsurance of the Reciprocal Exchanges.

Intersegment transactions are not eliminated from the Risk-Bearing Entities segment's results but are eliminated in consolidation. Total revenue eliminations related to the Risk-Bearing Entities segment was $0.5 million and $0.8 million for the three months ended March 31, 2026 and 2025, respectively.

The following table is a breakdown of the total revenues and income before taxes of the Risk-Bearing Entities segment before intersegment eliminations for the three months ended March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31, 2026** | **Three Months Ended<br>March 31, 2026** |
| **($ in thousands)** | **Total<br>Revenue** | **Income<br>before<br>Taxes** |
|  Safepoint Insurance and other risk-bearing activity of subsidiaries | $27653 | $13505 |
|  Reinsurance of Reciprocal Exchanges by Captives | 72602 | 29263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $100255 | $42768 |
|  | **Three Months Ended<br>March 31, 2025** | **Three Months Ended<br>March 31, 2025** |
| **($ in thousands)** | **Total<br>Revenue** | **Income<br>before<br>Taxes** |
|  Safepoint Insurance and other risk-bearing activity of subsidiaries | $28023 | $10730 |
|  Reinsurance of Reciprocal Exchanges by Captives | 58627 | 2440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $86650 | $13170 |

---

In addition to the Risk-Bearing Entities segment's total revenues and income, management also utilizes the Risk-Bearing Entities segment's loss ratio, expense ratio, and combined ratio to evaluate the underwriting performance and profitability of the segment that directly affects Safepoint shareholders, whereas the Reciprocal Exchanges segment is not attributable to Safepoint shareholders.

------

##### [**Table of Contents**](#toc)
*Risk-bearing Entities loss ratio*, expressed as a percentage, is the ratio of the Risk-Bearing Entities segment's net losses and loss adjustment expenses to net earned premiums. The Risk-Bearing Entities segment's loss ratio applicable for the three months ended March 31, 2026 and 2025 was 23.1% and 28.1%, respectively. Disclosing the Risk-bearing Entities loss ratio provides investors with a direct measure of our claims performance, and we use this ratio to monitor the effectiveness of our pricing strategies and loss trends to make proactive adjustments to maintain long-term profitability.

*Risk-bearing Entities expense ratio*, expressed as a percentage, is the ratio of the Risk-Bearing Entities segment's total expenses excluding losses and loss adjustment expenses and interest expenses to net earned premiums. The Risk-Bearing Entities segment's expense ratio applicable for the three months ended March 31, 2026 and 2025 was 38.5% and 60.4%, respectively. The Risk-Bearing Entities expense ratio is disclosed to provide investors with information surrounding the Risk-Bearing Entities segment's operational efficiency and impact on margins. We use this ratio to ensure that the segment's operational expenses are in line with expectations.

*Risk-bearing Entities combined ratio*, expressed as a percentage, is the sum of the Risk-Bearing Entities segment's loss ratio and expense ratio. A combined ratio under 100.0% indicates an underwriting profit. A combined ratio over 100.0% indicates an underwriting loss. The Risk-Bearing Entities segment's combined ratio applicable for the three months ended March 31, 2026 and 2025 was 61.6% and 88.5%, respectively. The Risk-Bearing Entities combined ratio is useful to investors as it is a direct measure of the segment's core underwriting profitability. We use this ratio to monitor the segment's total underwriting performance and to assess potential needs for strategy adjustments.

The following table summarizes the results of the Risk-Bearing Entities segment for each of the years ended December 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Risk-bearing Entities** | **Risk-bearing Entities** | **Risk-bearing Entities** | **Risk-bearing Entities** | **Risk-bearing Entities** |
| **($ in thousands, except percentages)** | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** | **$ Change** | **% Change** |
|  Gross written premium | $401521 | $385664 | $15857 | 4.1% |
|  Gross earned premium | 399590 | 408899 | (9309) | -2.3% |
|  Earned revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | $344996 | $241045 | $103951 | 43.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | 2309 | 2947 | (638) | -21.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 12620 | 10041 | 2579 | 25.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 2087 | 2883 | (796) | -27.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 362012 | 256916 | 105096 | 40.9% |
|  Expenses: |  |  |  |  |
|  Losses and loss adjustment expenses | 69363 | 106848 | (37485) | -35.1% |
|  Policy acquisition costs, net of ceding commission | 138873 | 85414 | 53459 | 62.6% |
|  General and administrative expenses | 19518 | 14765 | 4753 | 32.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 227754 | 207027 | 20727 | 10.0% |
|  Income before income taxes | $134258 | $49889 | $84369 | 169.1% |

---

------

##### [**Table of Contents**](#toc)
The Risk-Bearing Entities segment revenue for the years ended December 31, 2025 and 2024 was $362.0 million and $256.9 million, respectively, representing an increase of $105.1 million, or 40.9%. The increase in total revenue for the Risk-Bearing Entities segment was primarily due to a $104.0 million increase in net earned premiums from increased participation in the reinsurance of the Reciprocal Exchanges and a higher retention in the Company's wholly owned insurance company compared to the prior year.

The Risk-Bearing Entities segment income before taxes for the years ended December 31, 2025 and 2024 was $134.3 million and $49.9 million, respectively, representing an increase of $84.4 million, or 169.1%. The increase in total income before taxes for the Risk-Bearing Entities segment was primarily due to a larger participation in reinsurance of the Reciprocal Exchanges, a higher retention in the Company's wholly owned insurance company, and zero hurricane losses in 2025 compared to the prior year.

Intersegment transactions are not eliminated from the Risk-bearing Entities segment's results but are eliminated in consolidation. Total revenue eliminations related to the Risk-bearing Entities segment was $3.1 million and $1.4 million for the years ended December 31, 2025 and 2024, respectively.

The following table is a breakdown of the total revenues and income before taxes of the Risk-Bearing Entities segment before intersegment eliminations for the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,<br>2025** | **Year Ended December 31,<br>2025** |
| **($ in thousands)** | **Total<br>Revenue** | **Income<br>before Taxes** |
|  Safepoint Insurance | $92839 | $41494 |
|  Reinsurance of Reciprocal Exchanges by Captives | 269173 | 92764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $362012 | $134258 |
|  | **Year Ended December 31,<br>2024** | **Year Ended December 31,<br>2024** |
| **($ in thousands)** | **Total<br>Revenue** | **Income (Loss)<br>before Taxes** |
|  Safepoint Insurance | $174575 | $51217 |
|  Reinsurance of Reciprocal Exchanges by Captives | 82341 | (1328) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $256916 | $49889 |

---

------

##### [**Table of Contents**](#toc)
**Reciprocal Exchanges Segment** 

The following table summarizes the results of the Reciprocal Exchanges segment for each of the three months ended March 31, 2026 and 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Reciprocal Exchanges*<sup>1</sup>*** | **Reciprocal Exchanges*<sup>1</sup>*** | **Reciprocal Exchanges*<sup>1</sup>*** | **Reciprocal Exchanges*<sup>1</sup>*** | **Reciprocal Exchanges*<sup>1</sup>*** |
| **($ in thousands, except percentages)** | **Three Months<br>Ended March 31,<br>2026** | **Three Months<br>Ended March 31,<br>2025** | **$ Change** | **% Change** |
|  Gross written premium | $156638 | $164346 | $(7709) | -4.7% |
|  Gross earned premium | 198317 | 142786 | 55531 | 38.9% |
|  Earned revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | $61161 | $21929 | $39232 | 178.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | 1294 | 1114 | 180 | 16.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 3045 | 2336 | 709 | 30.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 363 | 331 | 32 | 9.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 65863 | 25710 | 40153 | 156.2% |
|  Expenses: |  |  |  |  |
|  Losses and loss adjustment expenses | 26580 | 19705 | 6875 | 34.9% |
|  Policy acquisition costs, net of ceding commission | 26427 | (9967) | 36394 | -365.1% |
|  General and administrative expenses | 901 | 459 | 442 | 96.3% |
|  Interest expense | 1317 | 1251 | 66 | 5.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 55225 | 11448 | 43777 | 382.4% |
|  Income before income taxes | 10638 | 14262 | (3624) | -25.4% |
|  Income attributable to noncontrolling interest | $10638 | $14262 | $(3624) | -25.4% |

---

---

| | |
|:---|:---|
| ***1*** = | The Reciprocal Exchanges receive a subscriber contribution of 10% in addition to the policy premium which is recorded to additional paid-in capital as received. The Reciprocal Exchanges received $15,007 and $11,892, respectively, during the three months ended March 31, 2026 and 2025.  |

---

The Reciprocal Exchanges segment revenue for the three months ended March 31, 2026 and 2025 is $65.9 million and $25.7 million, respectively, representing an increase of $40.2 million, or 156.2%. The increase in total revenue for the Reciprocal Exchanges segment was primarily due to continued depopulation program activity in Louisiana and Florida.

The Reciprocal Exchanges segment income before taxes for the three months ended March 31, 2026 and 2025 is $10.6 million and $14.3 million, respectively, primarily due to benefits from depopulation programs in both periods and is fully attributable to non-controlling interests in the Company's consolidated statements of comprehensive income. The $3.6 million decrease in the Reciprocal Exchanges segment's income before income taxes is primarily due to an increase in policy acquisition costs related to the renewal of takeout policies on the reciprocals.

The Reciprocal Exchanges segment's gross written premium for the three months ended March 31, 2026 and 2025 is $156.6 million and $164.3 million, respectively, representing a decrease of $7.7 million, This decrease is primarily due to the timing of takeouts from the depopulation programs during the first quarter of 2026. The Reciprocal Exchanges segment's net earned premium for the three months ended March 31, 2026 and 2025 is $61.2 million and $21.9 million, respectively, representing an increase of $39.2 million. This increase is primarily due to a lower rate of ceded premiums in 2026 as a result of the change in the quota share structure in the current year compared to the prior year.

------

##### [**Table of Contents**](#toc)
We use our adjusted Reciprocal Exchanges segment combined ratio to evaluate the Reciprocal Exchanges segment's operations as well. Our adjusted Reciprocal Exchanges segment combined ratio was 70.8%, and 30.1% for the three months ended March 31, 2026 and 2025, respectively. While both periods were favorably impacted from takeouts in depopulation programs, the 40.7% increase is mostly due to lower net earned premiums relative to surplus contributions in the prior period. Please see "*—Reconciliation of Non-GAAP Metrics—Adjusted Reciprocal Exchanges segment combined ratio*" for further information.

Intersegment transactions are not eliminated from the Reciprocal Exchanges segment's results but are eliminated in consolidation. Total revenue eliminations related to the Reciprocal Exchanges segment was $1.5 million and $1.3 million for the three months ended March 31, 2026 and 2025, respectively.

The following table summarizes the results of the Reciprocal Exchanges segment for each of the years ended December 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Reciprocal Exchanges*<sup>1</sup>*** | **Reciprocal Exchanges*<sup>1</sup>*** | **Reciprocal Exchanges*<sup>1</sup>*** | **Reciprocal Exchanges*<sup>1</sup>*** | **Reciprocal Exchanges*<sup>1</sup>*** |
| **($ in thousands, except percentages)** | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** | **$ Change** | **% Change** |
|  Gross written premium | $804124 | $431584 | $372540 | 86.3% |
|  Gross earned premium | 666014 | 200104 | 465910 | 232.8% |
|  Earned revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | $132881 | $(3055) | $135936 | -4449.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | 5585 | 3044 | 2541 | 83.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 13461 | 4381 | 9080 | 207.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 1568 | 1836 | (268) | -14.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 153495 | 6206 | 147289 | 2373.3% |
|  Expenses: |  |  |  |  |
|  Losses and loss adjustment expenses | 86634 | 31696 | 54938 | 173.3% |
|  Policy acquisition costs, net of ceding commission | 39356 | (23221) | 62577 | -269.5% |
|  General and administrative expenses | 7692 | 11093 | (3401) | -30.7% |
|  Interest expense | 5274 | 3768 | 1506 | 40.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 138956 | 23336 | 115620 | 495.5% |
|  Income (loss) before income taxes | 14539 | (17130) | 31669 | -184.9% |
|  Income (loss) attributable to noncontrolling interest | $14539 | $(17130) | $31669 | -184.9% |

---

---

| | |
|:---|:---|
| ***1*** = | The Reciprocal Exchanges receive a subscriber contribution of 10% in addition to the policy premium which is recorded to additional paid-in capital as received. The Reciprocal Exchanges received $57,654 and $27,055, respectively, during the years ended December 31, 2025 and 2024. |

---

The Reciprocal Exchanges segment revenue for the years ended December 31, 2025 and 2024 is $153.5 million and $6.2 million, respectively, representing an increase of $147.3 million, or 2,373.3%. The increase in total revenue for the Reciprocal Exchanges segment was primarily due to a $135.9 million increase in net earned premiums compared to the prior year.

The Reciprocal Exchanges segment income (loss) before taxes for the years ended December 31, 2025 and 2024 is $14.5 million and $(17.1) million, respectively, and is fully attributable to non-controlling interests in the Company's consolidated statements of

------

##### [**Table of Contents**](#toc)
comprehensive income. The $31.7 million increase in the Reciprocal Exchanges segment's income before income taxes is primarily due to takeouts in 2025 from depopulation programs that caused a one-time benefit to income before income taxes during the year.

We use our adjusted Reciprocal Exchanges segment combined ratio to evaluate the Reciprocal Exchanges segment's operations as well. Our adjusted Reciprocal Exchanges segment combined ratio was 70.2% and 81.5% for the years ended December 31, 2025 and 2024, respectively. This 11.3% decrease was due to the increases in net earned premiums from an increase in takeouts from depopulation programs and a lower loss ratio due to zero hurricane losses compared to the prior year. These increases were partially offset by increased higher acquisition expenses from increased policy volume, which was mitigated by a cost benefit of policy acquisition costs from the depopulation programs compared to the prior year. Please see "—*Reconciliation of Non-GAAP Metrics—Adjusted Reciprocal Exchanges segment combined ratio*" for further information.

Intersegment transactions are not eliminated from the Reciprocal Exchanges segment's results but are eliminated in consolidation. Total revenue eliminations related to the Reciprocal Exchanges segment was $5.6 million and $3.0 million for the years ended December 31, 2025 and 2024, respectively.

**Reconciliation of Non-GAAP Financial Measures** 

We include non-GAAP financial measures in this prospectus, including net operating income to Safepoint shareholders, because our management uses them to assess our performance. We believe they reflect the underlying trends and indicators of our business and allow management to evaluate our business performance, make budgeting decisions and compare our performance against other peer companies using similar measures. While we believe managed premium, Insurance Services EBITDA and EBITDA margin, adjusted general expense, and return on equity to Safepoint shareholders are useful to investors for the same reasons, readers of the financial statements should note that these measures are not a substitute for GAAP financial measures or disclosures and should be read in conjunction with those GAAP results. We have provided reconciliations of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure.

**Net operating income to Safepoint shareholders** 

Net operating income to Safepoint shareholders is a non-GAAP financial measure used by management to evaluate the Company's operating performance and to facilitate period-to-period comparability. Net operating income to Safepoint shareholders is defined as net income attributable to the controlling interest, excluding the impact of certain items to the controlling interest that management believes are not indicative of the Company's core operating results. We calculate the tax impact only on adjustments that would be included in calculating our income tax expense using the estimated tax rate at which we received a deduction for these adjustments. Net operating income to Safepoint shareholders should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP.

------

##### [**Table of Contents**](#toc)
The following table provides a reconciliation of net income to net operating income to Safepoint shareholders for the three months ended March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **Three Months Ended<br>March 31, 2026** | **Three Months Ended<br>March 31, 2025** |
|  Net income attributable to controlling interest | $48033 | $16554 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to controlling interest: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets | 528 | 528 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on debt extinguishment |  | 8873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized investment loss (gain) | 410 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect of adjustments | (216) | (2277) |
|  Net operating income to Safepoint shareholders | $48755 | $23678 |

---

The following table provides a reconciliation of net income attributable to controlling interest to net operating income to Safepoint shareholders for the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** |
|  Net income attributable to controlling interest | $157216 | $41282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to controlling interest: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets | 2113 | (1299) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on debt extinguishment | 8873 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized investment gain | (15) | (135) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect of adjustments | (2542) | 185 |
|  Net operating income to Safepoint shareholders | $165645 | $40033 |

---

For the year ended December 31, 2025, amortization expense related to the controlling interest was $2.1 million. For the year ended December 31, 2024, the amortization benefit for the controlling interest was $1.3 million and was related to the Value of Business Acquired ("VOBA") of unearned premiums and reserves from a 2023 business combination, which resulted in negative VOBA at the controlling interest level and offsetting positive VOBA at the non-controlling interest level. As of December 31, 2024, these VOBA balances were fully amortized. The VOBA caused the overall amortization of the intangible assets to be a benefit for the controlling interest in 2024 and in 2025, once the VOBA was fully amortized, the amortization of the intangible assets reverted to an expense.

**Managed premium** 

Managed premium is a non-GAAP financial measure used by management to provide useful information to investors to summarize the total volume of business being transacted under our management. Managed premium is defined as total trailing twelve month gross premiums written by our consolidated subsidiaries and In-force premium that the Company services that is written by unaffiliated carriers. Managed premium is calculated before the effects of reinsurance are added. By providing this measure, we believe that this allows investors to evaluate the full scale of our market presence and the efficiency of our customer acquisition and retention efforts. Managed premium should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP.

------

##### [**Table of Contents**](#toc)
The following table provides a reconciliation of gross written premium to managed premium for the twelve months ended March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **Twelve<br>Months Ended<br>March 31, 2026** | **Twelve<br>Months Ended<br>March 31, 2025** |
|  Total trailing twelve month gross written premium | $924952 | $713065 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to gross written premium: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In-force premiums from managed entities | 64964 | 23857 |
|  Total managed premium | $989916 | $736922 |

---

The following table provides a reconciliation of gross written premium to managed premium for the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** |
|  Total gross written premium | $927238 | $642591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to gross written premium: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums from managed entities | 58060 | 10960 |
|  Total managed premium | $985298 | $653551 |

---

**Insurance Services EBITDA and EBITDA margin** 

Insurance Services EBITDA and EBITDA margin are non-GAAP metrics used by management, which we believe are useful to investors to measure the operational strength and performance of the Insurance Services segment. These metrics provide investors additional information about the Insurance Services segment's profitability for certain non-cash items, non-routine items we do not expect to continue at the same level in the future, as well as other items that are not core to the operations of the Insurance Services segment. By providing these measures, together with a reconciliation of the most directly comparable GAAP measure, we believe we are enhancing investors' understanding of the Insurance Services segment, as well as assisting investors in evaluating how well we are executing our strategic initiatives. Insurance Services EBITDA margin is calculated as Insurance Services EBITDA as a percentage of the Insurance Services total revenue. Insurance Services EBITDA and EBITDA margin should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP.

The following is a reconciliation of Insurance Services income before income taxes to Insurance Services EBITDA and Insurance Services EBITDA margin for the three months ended March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
| **($ in thousands, except percentages)** | **Three Months Ended<br>March 31, 2026** | **Three Months Ended<br>March 31, 2025** |
|  Insurance Services income before income taxes | $23294 | $23186 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments related to Insurance Services: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization of property and equipment | 259 | 243 |
|  Insurance Services EBITDA | $23553 | $23429 |
|  Insurance Services total revenue | $36150 | $33176 |
|  Insurance Services EBITDA margin | 65.2% | 70.6% |

---

------

##### [**Table of Contents**](#toc)
The following is a reconciliation of Insurance Services income before income taxes to Insurance Services EBITDA and Insurance Services EBITDA margin for the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| **($ in thousands, except percentages)** | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** |
|  Insurance Services income before income taxes | $114872 | $46481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments related to Insurance Services: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization of property and equipment | 1054 | 1340 |
|  Insurance Services EBITDA | $115926 | $47821 |
|  Insurance Services total revenue | $161749 | $76455 |
|  Insurance Services EBITDA margin | 71.7% | 62.5% |

---

**Adjusted general expense ratio** 

Adjusted general expense ratio is calculated by excluding the amortization of stock-based compensation and the amortization of intangible assets from general and administrative expenses . The total is then divided by managed premium. We believe using this ratio in conjunction with the closest corresponding GAAP metric provides greater insight into our cost structure and gives the reader a clearer view of what percentage of each premium dollar is spent on general expense. Adjusted general expense ratio should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP.

The following is the calculation of adjusted general expense ratio for the three months ended March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
| **($ in thousands, except percentages)** | **Three Months<br>Ended<br>March 31, 2026** | **Three Months<br>Ended<br>March 31, 2025** |
|  Managed premium | $989916 | $736922 |
|  Trailing twelve month general and administrative expense | 87654 | 54914 |
|  Trailing twelve month amortization of stock-based compensation | (5049) | (2544) |
|  Trailing twelve month Amortization of intangible assets | (2022) | (5334) |
|  Severance and separation costs | (3455) | (4) |
|  Adjusted general and administrative expense | $77128 | $47032 |
|  Adjusted general expense ratio | 7.8% | 6.4% |

---

The following is the calculation of adjusted general expense ratio for the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| **($ in thousands, except percentages)** | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** |
|  Managed premium | $985298 | $653551 |
|  General and administrative expense | 74394 | 52262 |
|  Amortization of stock-based compensation | (4182) | (2538) |
|  Amortization of intangible assets | (2022) | (7132) |
|  Adjusted general and administrative expense | $68190 | $42592 |
|  Adjusted general expense ratio (Adjusted general and administrative expense divided by Managed gross written premium) | 6.9% | 6.5% |

---

------

##### [**Table of Contents**](#toc)
**Return on equity to Safepoint shareholders** 

Return on equity to Safepoint shareholders is a non-GAAP financial measure used by management to provide useful information to investors about the profitability and capital efficiency available to our common stockholders. We define this non-GAAP measure as net income attributable to the controlling interest divided by the average of the beginning and ending shareholders' equity, excluding non-controlling interests. We believe that return on equity to Safepoint shareholders provides a more meaningful representation of the profitability by excluding non-controlling interests. Return on equity to Safepoint shareholders should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP.

The following is the calculation of return on equity to Safepoint shareholders for the three months ended March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
| **($ in thousands, except percentages)** | **Three Months Ended<br>March 31, 2026** | **Three Months Ended<br>March 31, 2025** |
|  Net income attributable to controlling interest | $48033 | $16554 |
|  Beginning total equity of controlling interest | 217145 | 86786 |
|  Ending equity of controlling interest | 216577 | 72958 |
|  Average equity of controlling interest | 216861 | 79872 |
|  Return on equity to Safepoint shareholders | 22.1% | 20.7% |
|  Annualized return on equity to Safepoint shareholders | 88.4% | 82.8% |

---

The following is the calculation of return on equity to Safepoint shareholders for the years ended December 31, 2025 and 2024: 

---

| | | |
|:---|:---|:---|
| **($ in thousands, except percentages)** | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** |
|  Net income attributable to controlling interest | $157216 | $41282 |
|  Beginning total equity of controlling interest | 86786 | 43282 |
|  Ending equity of controlling interest | 217145 | 86786 |
|  Average equity of controlling interest | 151966 | 65034 |
|  Return on equity to Safepoint shareholders | 103.5% | 63.5% |

---

**Adjusted Reciprocal Exchanges segment combined ratio** 

Adjusted Reciprocal Exchanges segment combined ratio is a non-GAAP metric used by management. While elements of the policyholder payments to the Reciprocal Exchanges contain premium and equity components, only the premium portion of the payment is included in the GAAP combined ratio. Management believes that including the entire policyholder payment to the Reciprocal Exchanges in the denominator of the Adjusted Reciprocal Exchanges segment combined ratio gives the reader a better understanding of the actual economics of the Reciprocal Exchanges segment. This metric is calculated by dividing the sum of the Reciprocal Exchanges' losses and underwriting expenses by the sum of its net earned premiums and the net subscriber contributions received during the year. Subscriber contributions are not considered revenue under GAAP and do not represent earnings from underwriting activities. These funds are capital in nature and may be subject to withdrawal by subscribers under certain conditions. The Adjusted Reciprocal Exchanges segment combined ratio should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP.

------

##### [**Table of Contents**](#toc)
The following is the calculation of the adjusted Reciprocal Exchanges segment combined ratio for the three months ended March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
| **($ in thousands, except percentages)** | **Three Months Ended<br>March 31, 2026** | **Three Months Ended<br>March 31, 2025** |
|  Reciprocal Exchanges loss ratio | 43.5% | 89.9% |
|  Reciprocal Exchanges expense ratio | 44.7% | -43.4% |
|  Reciprocal Exchanges combined ratio | 88.1% | 46.5% |
|  Adjustment to denominator: |  |  |
|  Subscriber contributions | 15007 | 11892 |
|  Adjusted Reciprocal Exchanges segment combined ratio | 70.8% | 30.1% |

---

The following is the calculation of the Adjusted Reciprocal Exchanges segment combined ratio for the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| **($ in thousands, except percentages)** | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** |
|  Reciprocal Exchanges loss ratio | 65.2% | -1037.5% |
|  Reciprocal Exchanges expense ratio | 35.4% | 397.0% |
|  Reciprocal Exchanges combined ratio | 100.6% | -640.5% |
|  Adjustment to denominator: |  |  |
|  Subscriber contributions | 57654 | 27055 |
|  Adjusted Reciprocal Exchanges segment combined ratio | 70.2% | 81.5% |

---

**Liquidity and Capital Resources** 

**Sources and Uses of Funds** 

We file a consolidated U.S. federal income tax return with our subsidiaries, and under our tax allocation agreement, each participant is charged or refunded taxes according to the amount that the participant would have paid or received had it filed on a separate return basis with the Internal Revenue Service. Cajun and Manatee file separate income tax returns in their respective jurisdictions.

We believe we have sufficient liquidity available to meet our operating cash needs and obligations for the next 12 months. As of March 31, 2026, December 31, 2025 and December 31, 2024, we had $667.6 million, $650.7 million and $263.0 million, respectively, in cash, cash equivalents and restricted cash, which primarily consisted of cash, money market accounts, and U.S. Treasury bills. We intend to maintain substantial cash or cash-equivalent balances during hurricane season to meet seasonal liquidity needs relating to potential catastrophic losses.

Florida statutes require the Company to maintain capital and surplus of $15.0 million as of December 31, 2025 and 2024, for Safepoint Insurance and $15.0 million as of December 31, 2025 and 2024 for Manatee.

During the year ended December 31, 2024, Cajun was domiciled in Louisiana and was required to have initial minimum surplus of $5.0 million. Following Cajun's redomiciliation to Alabama in 2025, Cajun is required to maintain capital and surplus of approximately $1.0 million in order to obtain and maintain licensure in Alabama as of December 31, 2025.

------

##### [**Table of Contents**](#toc)
We believe our current cash and cash equivalents will be sufficient to meet our working capital and capital expenditure requirements for at least the next twelve months. Strategically, we intend to optimize our capital structure over the longer term. This may include refinancing debt to reduce interest costs or issuing equity to accelerate growth and reduce leverage. Furthermore, subject to interest rate environments and market conditions, we may consider distributing dividends or engaging in stock repurchases to return capital to shareholders.

**Cash Flows** 

Our most significant source of cash is from premiums received, which, for most policies, we receive at the beginning of the coverage period. Our most significant cash outflows are claims that arise when a policyholder incurs an insured loss and the payment of reinsurance premiums, net of any ceding commissions received. Because the payment of claims occurs after the receipt of the premium, we invest the cash in various investment securities that generally earn interest. We also use cash for the payment of ongoing operating expenses, such as employee compensation and benefits, technology costs, office rent and professional service fees.

The timing of our cash flows from operating activities can vary among periods due to the timing by which payments are made or received. Some of our payments and receipts, including loss settlements and subsequent reinsurance receipts, can be significant, and as a result their timing can influence cash flows from operating activities in any given period. We believe that cash receipts from premiums and proceeds from net investment income are sufficient to cover cash outflows in the foreseeable future.

Our cash flows for the three months ended March 31, 2026 and 2025 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands, except percentages)** | **Three Months<br>Ended March 31,<br>2026** | **Three Months<br>Ended March 31,<br>2025** | **$ Change** | **% Change** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | $75880 | $164879 | (88999) | -54.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash (used in) investing activities | (20087) | (5269) | (14818) | 281.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash (used in) provided by financing activities | (38966) | 41952 | (80918) | -192.9% |
|  Net change in cash and cash equivalents | $16827 | $201562 | (184735) | -91.7% |

---

Net cash provided by operating activities for the three months ended March 31, 2026 and 2025 was $75.9 million and $164.9 million, respectively. The $89.0 million decrease was primarily attributable to a loss on debt extinguishment of $8.9 million in the prior year. A $41.4 million increase in cash used for unearned premiums and a $22.0 million increase in cash used for other assets, offset by an increase of $0.4 million in net realized loss on investments and an increase in equity-based compensation of $0.9 million compared to the prior year.

Net cash (used by) investing activities for the three months ended March 31, 2026 and 2025 was $20.1 million and $5.3 million, respectively. The $14.8 million increase was primarily attributable to a $15.0 million increase in the purchases of other invested assets and a $3.1 million increase in the purchases of fixed-maturity assets, offset by a $3.4 million increase in proceeds from the sale of fixed-maturity assets and a $0.1 million increase in purchases of property and equipment.

Net cash (used in) provided by financing activities for the three months ended March 31, 2026 and 2025 was ($39.0) million and $42.0 million, respectively. The $80.9 million decrease was primarily attributable to a decrease of $100.0 million related to the issuance of long-term debt and an increase of $18.2 million in common stock dividends, offset by a $31.1 million payoff of the notes payable principal in the prior year.

------

##### [**Table of Contents**](#toc)
Our cash flows for the years ended December 31, 2025 and 2024 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands, except percentages)** | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** | **$ Change** | **%<br>Change** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | $353411 | $120020 | 233391 | 194.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash (used in) investing activities | (58915) | (27392) | (31523) | 115.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities | 94509 | 35701 | 58808 | 164.7% |
|  Net change in cash and cash equivalents | $389005 | $128329 | 260676 | 203.1% |

---

Net cash provided by operating activities for the years ended December 31, 2025 and 2024 was approximately $353.4 million and $120.0 million, respectively. The $233.4 million increase was primarily attributable to a $141.3 million increase in net income and an $86.1 million increase in cash received from net operating assets and liabilities, offset by a loss on debt extinguishment of $8.9 million and an increase in equity-based compensation of $1.6 million compared to the prior year.

Net cash (used by) investing activities for the years ended December 31, 2025 and 2024 was approximately $58.9 million and $27.4 million, respectively. The $31.5 million increase was primarily attributable to a $68.4 million increase in the purchases of fixed-maturity assets, offset by a $36.0 million increase in proceeds from the sale of fixed-maturity assets and a $0.9 million decrease in purchases of property and equipment for the year ended December 31, 2025. For the year ended December 31, 2025, funds from operations were used to purchase $104.8 million of fixed-maturity securities and property and equipment, offset by $45.9 million in proceeds from sales of fixed-maturity securities. For the year ended December 31, 2024, funds from operations were used to purchase $37.3 million of fixed-maturity securities and property and equipment, offset by $9.9 million proceeds from sales of fixed-maturity securities.

Net cash provided by financing activities for the years ended December 31, 2025 and 2024 was approximately $94.5 million and $35.7 million, respectively. The $58.8 million increase was primarily attributable to increases of $120.0 million related to the issuance of long-term debt and $34.3 million related to reciprocal subscriber contributions received, offset by a $31.1 million payoff of the notes payable principal, $10.4 million in treasury stock purchases, $31.7 million of common stock dividends, and $8.8 million of principal payments of current long-term debt.

**Reinsurance** 

We purchase various forms of reinsurance to manage loss exposures and safeguard our capital. Through reinsurance, we transfer certain exposures to a reinsurer, and in return the reinsurer receives a portion of the premium. We strategically use a combination of quota share and excess of loss reinsurance treaties to retain risk and premium we underwrite while providing balance sheet protection from larger losses.

A quota share reinsurance treaty is an agreement where reinsurers assume a percentage of the company's losses in exchange for a negotiated percentage of premium. An excess of loss reinsurance treaty is an agreement where reinsurers agree to assume a portion of losses for a specific event in excess of a specified amount in return for a negotiated premium. Reinsurance needs are determined with principal input from our Chief Executive Officer based on a multitude of factors, including risk appetite, market conditions, loss history and reinsurance capacity.

For the 2023-2024 treaty year (June 1, 2023 – May 31, 2024), the catastrophe excess of loss coverage is provided by agreements with reinsurers and by the FHCF. The excess of loss

------

##### [**Table of Contents**](#toc)
treaties generally provide coverage on ultimate net losses of $556.9 million in excess of $5.0 million for the first occurrence ($891.9 million for all occurrences), with the FHCF providing coverage for losses from qualifying catastrophic events in excess of $45.5 million up to a maximum payout of $87.9 million.

For the 2024-2025 treaty year (June 1, 2024 – May 31, 2025), the catastrophe excess of loss coverage is provided by agreements with reinsurers and by the FHCF. The excess of loss treaties generally provide coverage on ultimate net losses of $1,205.9 million in excess of $10.0 million for the first occurrence ($1,798.6 million for all occurrences), with the FHCF providing coverage for losses from qualifying catastrophic events in excess of $72.4 million up to a maximum payout of $128.4 million.

For the 2025-2026 treaty year (June 1, 2025 – May 31, 2026), the catastrophe excess of loss coverage is provided by agreements with reinsurers and by the Florida Hurricane Catastrophe Fund. The excess of loss treaties generally provide coverage on ultimate net losses of $1,883.5 million in excess of $100.0 million for the first occurrence ($2,884.1 million for all occurrences) with the FHCF providing coverage for losses from qualifying catastrophic events in excess of $179.6 million up to a maximum payout of $287.8 million.

For the 2026-2027 treaty year (June 1, 2026 – May 31, 2027), we procured approximately $2.6 billion of limit protection after a $103 million retention for the first named storm occurrence with losses above retention and, in the aggregate, we have purchased over $3.8 billion of limit protection for first and subsequent named storms. The majority of the 2026-2027 reinsurance program expires on April 30, 2027, other than our catastrophe bonds, which are multi-year contracts, with the exception of the policies issued pursuant to Florida Hurricane Catastrophe Funds, which expire on June 1, 2027.

The Company executed a facultative reinsurance agreement with coverage of $3.5 million in excess of $1.5 million for personal lines and $10.0 million in excess of $5.0 million for commercial lines. The agreement is subject to a $30.0 million per occurrence limit with no aggregate limit. In addition to the facultative agreement, the Company entered into a per risk excess of loss agreement for commercial lines only which provides coverage for $3.0 million in excess of $2.0 million.

Our reinsurance treaties typically have a 12-month term. During each renewal cycle, we may change our coverage terms or the composition of our reinsurance panel. Currently, the quota share and many of the reinsurance treaties expire on May 31, 2026, while certain treaties such as the FHCF and Catastrophe Bonds renew at dates other than May 31, 2026. Although exact cession percentages and specific coverage terms may vary at each treaty renewal, we intend to renew on similar terms as those expiring to maintain our desired level of net risk appetite.

**Contractual Obligations and Commitments** 

In 2024, we entered into an amended lease agreement for our Tampa office, which expires in January 2028. The Company also maintains office facilities in Metairie, Louisiana and Pembroke Pines, Florida. These leases are classified as operating leases on our consolidated balance sheets. As of March 31, 2026 and December 31, 2025, total discounted operating lease liabilities were $1.9 million and $2.0 million, respectively.

*Credit Facility* 

In February 2025, the Company entered into a credit agreement comprising of a $100.0 million term loan, a $25.0 million revolving credit facility and a $15.0 million delayed

------

##### [**Table of Contents**](#toc)
draw term loan facility. The Company entered into amendments to the credit agreement in April, May and August 2025, pursuant to which borrowing capacity under the revolving loan facility and delayed draw term loan facility was increased to $75.0 million and $115.0 million, collectively. As of March 31, 2026, $90.0 million was outstanding under the term loan, no amount was drawn under the revolving credit facility and $23.1 million was drawn under the delayed draw term facility. As of December 31, 2025, $92.5 million was outstanding under the term loan, no amount was drawn under the revolving credit facility, and $23.8 million was drawn under the delayed draw term loan facility. The term loan, delayed draw term loan and drawings under the revolving credit facility bear interest at Term SOFR (subject to a 0.00% floor) plus a margin ranging from 3.25% to 3.75% (based on the Company's consolidated leverage ratio) and matures on February 18, 2030. The agreement includes customary covenants and conditions. For more information, see "*Description of Certain Indebtedness*."

*Catastrophe Bonds* 

In June 2024, the Company entered into a reinsurance agreement with Nature Coast Re, Ltd. ("Nature Coast Re") in the form of catastrophe bonds that provide coverage to Safepoint Insurance, Manatee and Cajun. Nature Coast Re issued one class of notes in the amount of $50.0 million in total as collateral for the reinsurance coverage provided above the Florida attachment level of $429.0 million. This coverage is effective from June 2024 through June 2028 and covers named storms in the states of Florida, Louisiana, Alabama, Mississippi and Texas.

In January 2025, the Company entered into a reinsurance agreement with Nature Coast Re in the form of catastrophe bonds that provide coverage to Safepoint Insurance, Manatee and Cajun. Nature Coast Re issued one class of notes in the amount of $200.0 million in total as collateral for the reinsurance coverage provided above the attachment level of $475.0 million. This coverage is effective from January 2025 through January 2029 and covers named storms in the states of Florida, Louisiana, Alabama, Mississippi and Texas.

In April 2025, the Company entered into a reinsurance agreement with Nature Coast Re in the form of catastrophe bonds that provide coverage to Safepoint Insurance, Manatee and Cajun. Nature Coast Re issued one class of notes in the amount of $150.0 million in total as collateral for the reinsurance coverage provided above the attachment level of $600.0 million. This coverage is effective from April 2025 through April 2029 and covers named storms in the states of Florida, Louisiana, Alabama, Mississippi, and Texas.

In February 2026, the Company entered into a reinsurance agreement with Nature Coast Re in the form of catastrophe bonds that provide coverage to Safepoint Insurance, Manatee and Cajun. Nature Coast Re issued one class of notes in the amount of $250.0 million in total as collateral for the reinsurance coverage provided above the attachment level of $300.0 million. This coverage is effective from February 2026 through February 2030 and covers named storms in the states of Florida, Louisiana, Alabama, Mississippi, and Texas with the option to be expanded to any and all U.S. states and DC.

**Financial Condition** 

*Stockholders' Equity* 

As of March 31, 2026, total stockholders' equity was $302.9 million compared to total stockholders' equity of $263.7 million as of December 31, 2025 and $82.1 million as of December 31, 2024. The $39.2 million increase in total stockholders' equity from December 31, 2025 to March 31, 2026 was primarily due to $55.4 million of net income and $32.3 million in

------

##### [**Table of Contents**](#toc)
subscriber contributions, offset by common stock dividends of $49.9 million during the three months ended March 31, 2026. The $181.6 million increase in total stockholders' equity from December 31, 2024 to December 31, 2025 was primarily due to $165.6 million of net income and $43.0 million in subscriber contributions, offset by common stock dividends of $31.7 million and treasury stock repurchases of $10.4 million during the year ended December 31, 2025. As of March 31, 2026, December 31, 2025 and December 31, 2024, the Reciprocal Exchanges' equity (non-controlling interest) was $86.3 million, $46.5 million and $(4.7) million, respectively, but is not included in stockholder's equity attributable to Safepoint shareholders.

*Dividend Declarations* 

During the three months ended March 31, 2026, the Company's Board of Directors declared a dividend of $38 per common share, totaling $49.9 million, payable to shareholders of record as of January 7, 2026. The dividend was paid in cash on January 8, 2026. During the year ended December 31, 2025, the Company's Board of Directors declared a dividend of $25 per common share, totaling $31.7 million, payable to shareholders of record as of January 31, 2025. The dividend was paid in cash on February 12, 2025. The Company did not declare any dividends during the year ended December 31, 2024.

**Investment Portfolio** 

We seek to maintain a diversified portfolio of investments that prioritizes invested capital preservation, with a secondary focus on generating predictable and stable returns. Our investment portfolio is tailored to align with the characteristics of the underlying insurance liabilities. Our asset allocation strategy focuses on high-quality fixed-income instruments, and deemphasizes equity or alternative investment risk. One of the primary features of our asset allocation is maintaining sufficient readily available funds to pay claims and expenses. Consequently, the bulk of our reserves are invested in securities which can be expected to maintain a close relationship between market and statement values, under most conditions. Our portfolio therefore consists entirely of cash, cash equivalents, short-term investments and fixed-income securities.

We also hold investments in participating notes issued by a Bermuda domiciled special purpose insurer, acting in respect of its segregated account. These investments represent participation in unaffiliated reinsurance treaties and are secured by assets held in a reinsurance trust account, primarily consisting of money market fund investments and cash. We measure the fair value of its investments using the net asset value approach, and, as of March 31, 2026, we held $24.0 million of these investments.

We actively manage and monitor our investment risk to balance the goals of stable growth and liquidity with our need to comply with the insurance regulatory frameworks within which we operate as well as the capital framework agreements with AmFam. Our Board of Directors reviews and approves our investment policy and strategy on a regular basis.

As of March 31, 2026, $126.3 million was comprised of fixed-maturity securities, which represents the majority of our portfolio. We classify these assets as available-for-sale and they are carried at fair value with unrealized gains (losses) recognized in accumulated other comprehensive income. Also included in our investment portfolio was $650.0 million of cash and cash equivalents as of March 31, 2026. Our fixed-maturity securities had a weighted average effective duration of 2.1 years and an average credit rating of A- as of March 31, 2026. Our fixed-income investment portfolio had a weighted average book yield of 4.0% as of March 31, 2026.

------

##### [**Table of Contents**](#toc)
As of March 31, 2026, the amortized cost and estimated fair value of our fixed-maturity and equity securities were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **($ in thousands, except percentages)** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Amortized Cost** | **Fair Value** | **% of<br>Total Fair<br>Value** |
|  Fixed-maturity securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S Government and government agencies | $8076 | $8878 | 7.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds | 70815 | 71996 | 57.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage-backed securities | 4108 | 4581 | 3.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; States, municipalities, and political subdivisions | 40907 | 40807 | 32.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total fixed-maturity securities** | $123906 | $126262 | 99.9% |
|  Equity securities | 128 | 128 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total fixed-maturity and equity securities** | $124034 | $126390 | 100.0% |

---

The table below summarizes the credit quality of our fixed-maturity securities as of March 31, 2026:

---

| | | |
|:---|:---|:---|
|  | **Fair**<br>**Value** | **% of<br>Total Fair<br>Value** |
|  Rating |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA | $2768 | 2.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AA | 21846 | 17.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A | 43291 | 34.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BBB | 47707 | 37.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrated | 10650 | 8.4% |
|  Total | $126262 | 100.0% |

---

The amortized cost and estimated fair value of our available-for-sale investments in fixed-maturity securities, summarized by contractual maturity as of March 31, 2026, were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **($ in thousands, except percentages)** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Amortized<br>Cost** | **Fair Value** | **% of<br>Total Fair<br>Value** |
|  Fixed-maturity securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due in one year or less | $74179 | $74383 | 58.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after one year through five years | 34117 | 35024 | 27.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after five years through ten years | 2359 | 2614 | 2.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after ten years | 9143 | 9660 | 7.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage-backed securities | 4108 | 4581 | 3.6% |
|  Total fixed-maturity securities | $123906 | $126262 | 100.0% |

---

------

##### [**Table of Contents**](#toc)
As of December 31, 2025 and 2024, $121.9 million and $62.1 million, respectively, was comprised of fixed-maturity securities, which represents the majority of our portfolio. We classify these assets as available-for-sale and they are carried at fair value with unrealized gains (losses) recognized in accumulated other comprehensive income. Also included in our investment portfolio was $632.7 million and $250.2 million of cash and cash equivalents as of December 31, 2025 and 2024, respectively. Our fixed-maturity securities had a weighted average effective duration of 2.4 years and 3.3 years and an average credit rating of A- and A as of December 31, 2025 and 2024, respectively. Our fixed-income investment portfolio had a weighted average book yield of 4.0% as of December 31, 2025, compared to 3.9% as of December 31, 2024.

As of December 31, 2025 and 2024, the amortized cost and estimated fair value of our fixed-maturity and equity securities were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Amortized<br>Cost** | **Fair**<br>**Value** | **% of**<br>**Total Fair<br>Value** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
|  Fixed-maturity securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S Government and government agencies | $8045 | $8890 | 7.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds | 64834 | 66351 | 51.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage-back securities | 4634 | 5071 | 4.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; States, municipalities, and political subdivisions | 41285 | 41483 | 34.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total fixed-maturity securities** | $118798 | $121795 | 99.9% |
|  Equity securities | 106 | 106 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total investments** | $118904 | $121901 | 100.0% |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Amortized<br>Cost** | **Fair<br>Value** | **% of**<br>**Total Fair<br>Value** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
|  Fixed-maturity securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S Government and government agencies | $8048 | $8375 | 13.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds | 31602 | 32288 | 50.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage-back securities | 5495 | 5703 | 9.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; States, municipalities, and political subdivisions | 17097 | 16954 | 26.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total fixed-maturity securities** | $62242 | $63320 | 99.8% |
|  Equity securities | 118 | 118 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total investments** | $62360 | $63438 | 100.0% |

---

------

##### [**Table of Contents**](#toc)
The table below summarizes the credit quality of our fixed-maturity securities as of December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| **As of December 31, 2025** | **Fair**<br>**Value** | **% of**<br>**Total Fair<br>Value** |
|  **Rating** | **($ in thousands, except<br>percentages)** | **($ in thousands, except<br>percentages)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA | $3223 | 2.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AA | 26691 | 21.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A | 34767 | 28.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BBB | 47702 | 39.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Below BBB | 403 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrated | 9008 | 7.4% |
|  **Total** | $121795 | 100.0% |
| **As of December 31, 2024** | **Fair**<br>**Value** | **% of<br>Total Fair<br>Value** |
|  **Rating** | **($ in thousands, except<br>percentages)** | **($ in thousands, except<br>percentages)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA | $3157 | 5.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AA | 24733 | 39.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A | 12508 | 19.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BBB | 22492 | 35.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Below BBB | 429 | 0.7% |
|  **Total** | $63320 | 100.0% |

---

The amortized cost and estimated fair value of our available-for-sale investments in fixed-maturity securities summarized by contractual maturity as of December 31, 2025 and 2024, were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Amortized<br>Cost** | **Fair**<br>**Value** | **% of**<br>**Total Fair<br>Value** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
|  Fixed-maturity securities | Fixed-maturity securities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due in one year or less | $68113 | $67922 | 55.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after one year through five years | 27043 | 27987 | 23.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after five years through ten years | 7179 | 7815 | 6.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after ten years | 11830 | 13000 | 10.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage-backed securities | 4633 | 5071 | 4.2% |
|  **Total fixed-maturity securities** | $118798 | $121795 | 100.0% |
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Amortized<br>Cost** | **Fair**<br>**Value** | **% of<br>Total Fair<br>Value** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
|  Fixed-maturity securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due in one year or less | $23170 | $23170 | 36.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after one year through five years | 12481 | 12836 | 20.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after five years through ten years | 6330 | 6648 | 10.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after ten years | 14766 | 14963 | 23.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage-backed securities | 5495 | 5703 | 9.0% |
|  **Total fixed-maturity securities** | $62242 | $63320 | 100.0% |

---

------

##### [**Table of Contents**](#toc)
Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, and the lenders may have the right to put the securities back to the borrower.

**Quantitative and Qualitative Disclosures about Market Risk** 

Market risk is the risk of economic losses due to adverse changes in the estimated fair value of a financial instrument as the result of changes in interest rates, credit risk, equity prices, foreign currency exchange rates and commodity prices. The primary component of market risk affecting us is interest rate risk associated with our investments in fixed-maturity securities. We do not have material exposure to equity prices, credit risk, foreign currency exchange rate risk or commodity risk.

**Interest Rate Risk** 

Interest rate risk is the risk that we will incur economic losses due to adverse changes in interest rates. Fluctuations in interest rates have an immediate and direct effect on the market valuation of our fixed-maturity securities. When market interest rates rise, the fair value of our securities decreases. Conversely, as market interest rates fall, the fair value of our securities increases. Changes in interest rates will have an immediate effect on comprehensive loss and stockholders' equity but will not ordinarily have an immediate effect on net income. We manage this interest rate risk by investing in securities with varied maturity dates and by managing the duration of our investment portfolio in directional relation to the duration of our reserves.

As of March 31, 2026, our investment portfolio contains fixed-income securities that were subject to interest rate risk with a fair value of $126.3 million. The following table sets forth what changes might occur in the value of our core fixed-income portfolio given hypothetical changes in interest rates as of March 31, 2026:

---

| | | | |
|:---|:---|:---|:---|
| **($ in thousands, except percentages)** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Estimated<br>Fair Value** | **Estimated<br>Change in<br>Fair Value** | **%<br>(Decrease)<br>Increase<br>in Fair<br>Value** |
|  Fixed-maturity securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 300 basis point increase | $119864 | $(6398) | -5.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200 basis point increase | $121835 | $(4427) | -3.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100 basis point increase | $123990 | $(2272) | -1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No change | $126262 | $**—** | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100 basis point decrease | $128853 | $2591 | 2.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200 basis point decrease | $131558 | $5296 | 4.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 300 basis point decrease | $134439 | $8177 | 6.5% |

---

------

##### [**Table of Contents**](#toc)
As of December 31, 2025, our investment portfolio contains fixed-income securities that were subject to interest rate risk with a fair value of $121.8 million. The following table sets forth what changes might occur in the value of our core fixed-income portfolio given hypothetical changes in interest rates as of December 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Estimated<br>Fair Value** | **Estimated<br>Change in<br>Fair Value** | **%<br>(Decrease)<br>Increase<br>in Fair<br>Value** |
|  | **($ in thousands except percentages)** | **($ in thousands except percentages)** | **($ in thousands except percentages)** |
|  Fixed maturity securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 300 basis point increase | $114801 | $(6994) | -5.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200 basis point increase | $116980 | $(4815) | -4.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100 basis point increase | $119334 | $(2461) | -2.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No change | $121795 | $— | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100 basis point decrease | $124565 | $2770 | 2.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200 basis point decrease | $127441 | $5646 | 4.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 300 basis point decrease | $130308 | $8513 | 7.0% |

---

Actual results may differ from the hypothetical change in market rates assumed in the table above. This sensitivity analysis does not reflect the results of any action that we may take to mitigate such hypothetical losses in fair value.

**Credit Risk** 

Credit risk is the potential loss resulting from adverse changes in an issuer's ability to repay its debt obligations. We have exposure to credit risk as a holder of fixed-maturity securities. Our investment policy is designed to primarily invest in debt instruments of high credit quality issuers and to manage the amount of credit exposure with limits on particular rating categories, limits for any one issuer and limits for sectors and regions. We monitor our investment portfolio to ensure that credit risk does not exceed prudent levels. The majority of our investment portfolio is invested in high credit quality, investment-grade, fixed-maturity securities. As of March 31, 2026 our fixed-maturity portfolio has an average rating by at least one nationally recognized rating organization of A-.

In addition, we are subject to credit risk as we cede a portion of our risks to reinsurers. Although our reinsurers are obligated to reimburse us to the extent we cede risk to them, we are ultimately liable to our policyholders on all risks we have ceded. As a result, reinsurance agreements do not limit our ultimate obligations to pay claims covered under the insurance policies we issue, and we might not collect amounts recoverable from our reinsurers. We address this credit risk by performing, along with our reinsurance broker, periodic credit reviews of our reinsurers.

**Seasonality of Our Business** 

Our insurance business is seasonal. Hurricanes and tropical storms affecting our primary markets and other southeastern states typically occur during the period from June 1st through November 30th of each year. Additionally, reinsurance treaties years are typically effective on either May 1 or June 1 of each year. Any variation in the cost of our reinsurance, whether due to changes in reinsurance rates, coverage levels or changes in the total insured value of our policy base, will occur and be reflected in our financial results beginning on May 1 or June 1 of each year.

------

##### [**Table of Contents**](#toc)
**Critical Accounting Policies and Estimates** 

Critical accounting estimates are defined as those estimates that are both important to the portrayal of our financial condition and results of operations and require us to exercise significant judgment. We use significant judgment concerning future results and developments in applying these critical accounting estimates and in preparing our consolidated financial statements. These judgments and estimates affect our reported amounts of assets, liabilities, revenues and expenses and the disclosure of our material contingent assets and liabilities. Actual results may differ materially from the estimates and assumptions used in preparing the consolidated financial statements.

We identified the following accounting estimates as critical to the understanding of our financial position and results of operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reserves for losses and loss adjustment expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reinsurance recoverables;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair value measurements of financial assets and liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• deferred income tax.

We evaluate our estimates regularly using information that we believe to be relevant. For a detailed discussion of our accounting policies, see *Note 1*—*Summary of Significant Accounting Policies* to our consolidated financial statements included elsewhere in this prospectus for further discussion regarding our accounting policies and estimates.

**Reserves for Losses and Loss Adjustment Expenses** 

Reserves for losses and loss adjustment expenses represent our estimated ultimate cost of all reported and unreported losses and loss adjustment expenses incurred and unpaid at the balance sheet date. We do not discount our reserves for losses to reflect estimated present value. We estimate the reserves using individual case-basis valuations of reported claims and statistical analyses and various actuarial procedures. Those estimates are based on historical data and consider various factors, including known and anticipated regulatory and legal developments, changes in social attitudes, inflation and economic conditions. We regularly review our estimates and adjust them as necessary as our experience develops or as new information becomes known to us. Additionally, during the loss settlement period, it often becomes necessary to refine and adjust the estimates of liability on a claim either upward or downward. Even after such adjustments, the ultimate liability may exceed or be less than the revised estimates. Accordingly, the ultimate settlement of losses and loss adjustment expenses may vary significantly from the estimate included in our financial statements.

The process of estimating the reserves for losses and loss adjustment expenses requires a high degree of judgment and is subject to several variables. Our reserves are driven by several important factors, including litigation and regulatory trends, legislative activity, climate change, social and economic patterns, and claims inflation assumptions. Our reserve estimates reflect current inflation in legal claims' settlements and assume we will not be subject to losses from significant new legal liability theories. Our reserve estimates assume that there will not be significant changes in the regulatory and legislative environment. The impact of potential changes in the regulatory or legislative environment is difficult to quantify in the absence of specific, significant new regulation or legislation. In the event of significant new regulation or legislation, we will attempt to quantify its impact on our business, but no assurance can be given that our attempt to quantify such inputs will be accurate or successful.

------

##### [**Table of Contents**](#toc)
Although we believe that our reserve estimates are reasonable, it is possible that our actual loss experience may not conform to our assumptions. Specifically, our actual reporting and payment patterns could differ from our expected reporting and payment patterns, which are based on our data and industry data. Accordingly, the ultimate settlement of losses and the related loss adjustment expenses may vary significantly from the estimates included in our financial statements. We regularly review our estimates and adjust them as necessary as experience develops or as new information becomes known to us. Such adjustments are included in the results of current operations.

The tables below quantify the impact of potential reserve deviations from our carried reserve as of March 31, 2026 and December 31, 2025, respectively. We applied a sensitivity factor to net reserves for unpaid losses and loss adjustment expenses. We believe that potential changes such as these would not have a material impact on our liquidity and our financial ratings.

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** |
|  | **Reserves** | **Percentage Change<br>in Equity, Net of Tax** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
|  Change in Reserves |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -20% | $130377 | 8.07% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -15% | $138525 | 6.05% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -10% | $146674 | 4.04% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -5.0% | $154822 | 2.02% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Base | $162971 | 0.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.0% | $171120 | -2.02% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.0% | $179268 | -4.04% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15.0% | $187417 | -6.05% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20.0% | $195565 | -8.07% |

---

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|  | **Reserves** | **Percentage Change<br>in Equity, Net of Tax** |
|  | **($ in thousands, except percentages)** | **($ in thousands, except percentages)** |
|  Change in Reserves |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -20% | $121734 | 8.66% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -15% | $129342 | 6.49% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -10% | $136950 | 4.33% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -5.0% | $144559 | 2.16% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Base | $152167 | 0.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.0% | $159775 | -2.16% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.0% | $167384 | -4.33% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15.0% | $174992 | -6.49% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20.0% | $182600 | -8.66% |

---

**Reinsurance Recoverables** 

We enter into reinsurance agreements to limit our exposure to potential large losses. Our reinsurance is primarily contracted under quota-share reinsurance treaties and excess of loss treaties. In quota-share reinsurance agreements, the reinsurer agrees to assume a specified percentage of the ceding company's losses arising out of a defined class of business in exchange for a corresponding percentage of premiums, net of any ceding commission. In

------

##### [**Table of Contents**](#toc)
excess of loss reinsurance, the reinsurer agrees to assume all or a portion of the ceding company's losses, in excess of a specified amount up to a specified limit. In excess of loss reinsurance, the premium payable to the reinsurer is negotiated by the parties based on their assessment of the amount of risk being ceded to the reinsurer because the reinsurer does not share proportionately in the ceding company's losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amount of loss reserves to be ceded to our reinsurers involves significant judgment. See "*—Critical Accounting Policies and Estimates–Reserves for Losses and Loss Adjustment Expenses*" and *Note 1* — *Summary of Significant Accounting Policies* to our consolidated financial statements included elsewhere in this
prospectus for further discussion of our reserves.

**Fair Value Measurements** 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is determined based on a fair value hierarchy that prioritizes the use of observable inputs over the use of unobservable inputs and requires the use of observable inputs when available. We utilize a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or
liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: Significant other observable inputs other than Level 1 inputs, such as quoted prices in active markets for similar
assets or liabilities, quoted prices in inactive markets for identical assets or liabilities, or other inputs that are directly or indirectly observable through market-corroborated inputs, such as interest rates, yield curves, prepayment speeds,
default rates, or loss severities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: Significant unobservable inputs used to measure fair value to the extent that relevant observable inputs are not
available, and that reflect the Company's best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the measurement date.

See *Note 4*—*Fair Value Measurements* to our consolidated financial statements included elsewhere in this prospectus for further discussion regarding our fair value disclosures.

**Deferred Income Taxes** 

We record deferred income taxes as assets or liabilities on our balance sheet to reflect the net tax effect of the temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred tax assets and liabilities are measured by applying enacted tax rates in effect for the years in which such differences are expected to reverse. Our deferred tax assets result from temporary differences primarily attributable to unearned premium reserves, unrealized losses on investments and loss reserves. Our deferred tax liabilities result primarily from deferred policy acquisition costs. We review the need for a valuation allowance related to our deferred tax assets each quarter. We reduce our deferred tax assets by a valuation allowance when we determine that it is more likely than not that some portion or all of the deferred tax assets will not be realized. The assessment of whether or not a valuation allowance is needed requires us to use significant judgment. See *Note 12*—*Income Taxes* to our consolidated financial statements included elsewhere in this prospectus for further discussion regarding our deferred tax assets and liabilities.

------

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

On August 10, 2023, select members of our senior management, led by David Flitman (*Chief Executive Officer*), executed a management buyout, whereby such members of our senior management team purchased all the shares of Safepoint Holdings held by the then-majority investor. Upon the consummation of the buyout transaction, Mr. Flitman held greater than 50% control of Safepoint Holdings and, as such, triggered a change in control under GAAP. As of the date of this prospectus, we are no longer a controlled company.

On February 18, 2025, the Company entered into a credit agreement comprising a $100.0 million term loan, a $25.0 million revolving loan facility and a $15.0 million delayed draw term loan. During August 2025, the Company entered into an amendment to its existing credit agreement. The total borrowing capacity under the amended credit agreement increased to $287.5 million, consisting of a $97.5 million term loan, a $75.0 million revolving loan facility, and a $115.0 million delayed draw term loan. As of December 31, 2025, $92.5 million was outstanding under the term loan, $23.8 million was drawn for the delayed draw term loan under the revolving loan facility, and no amount was drawn for the delayed draw term loan under the revolving loan facility. The term loan bears interest at Secured Overnight Financing Rate plus 3.5% and matures on February 18, 2030. The agreement includes customary covenants and conditions.

**Recent Accounting Pronouncements** 

See *Note 1*—*Summary of Significant Accounting Policies* to our consolidated annual financial statements included elsewhere in this prospectus for further discussion regarding our recent accounting pronouncements.

------

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

**Who We Are** 

Safepoint is a specialty homeowners and commercial insurance underwriter that manages all aspects of the insurance value chain in a capital efficient manner by leveraging a majority fee-based servicing platform. Safepoint is focused on delivering insurance in coastal markets such as Florida and Louisiana, as well as in other U.S. markets. We are a founder-led company that is majority-owned by its management, which we believe creates a strong alignment between the management team and our shareholders. Our management team consists of highly experienced insurance professionals with a shared vision to solve problems for stakeholders in underserved or dislocated property insurance markets. Our business strategy, which has been developed and tested since our founding in 2013, combines sophisticated actuarial analytics, risk management expertise and a low-cost operating model designed to provide better value to our customers across market cycles. We have an innovative organizational structure that combines the benefits of policyholder-owned reciprocal insurance exchanges that we manage as an attorney-in-fact in exchange for a service fee, with our wholly owned insurance company, Safepoint Insurance. As of December 31, 2025, the majority of our in-force premium, which was equal to $1,034.0 million as of such date, was originally placed with the Reciprocal Exchanges, and only 11% of our in-force premium as of such date was originally placed with Safepoint Insurance.

We have prudently grown our business over the last 12 years, while producing attractive risk-adjusted returns, which we believe validates the strength of our business model and risk selection. Many of Safepoint's competitors have not had the staying power to continue writing business in Florida, Louisiana and other U.S. Gulf Coast states, as they have lacked a disciplined approach to underwriting, risk management and expense control. We have assumed policies from other private insurers and depopulation programs of state-sponsored insurers, as well as from new business sales from our broad network of independent agents.

We are led by an entrepreneurial executive management team, with a focus on data-driven underwriting and prudent risk management through our robust and comprehensive reinsurance strategy. Our founder and chief executive officer, David Flitman, is a credentialed actuary who has held executive roles in large, global insurance and reinsurance companies during his more than 30 years of industry experience. The executive management team's actuarial and reinsurance focus and expertise form the basis of our business strategy, and meaningfully influence all aspects of our operations and culture.

Our approach to insurance underwriting integrates pricing and cost drivers into our products at a policy level to ensure optimal risk-adjusted portfolio profitability. In order to determine whether an underwriting opportunity is attractive to us, we focus on evaluating the following three questions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Why does Safepoint have this opportunity and why are we best positioned to capitalize on it?* Insurance is very
competitive and commoditized. Focusing on certain overlooked segments increases our ability to effectively execute in the market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Do we have the data to properly evaluate the risks?* We must have sufficient data, proper tools, and the requisite
skills to evaluate, price, and hedge the risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Can we make our margins across a wide range of potential scenarios?* By focusing on specialized, less
competitive segments and not compromising on our risk evaluation and thresholds, we are able to achieve attractive profitability.

------

##### [**Table of Contents**](#toc)
We use a highly granular and integrated approach to analyze the profitability of policies at the time of underwriting on an individual risk basis through the allocation of reinsurance costs and other loss and expense assumptions. Safepoint's underwriting and risk management strategy is supported by our use of both proprietary and vendor modeling tools. We actively monitor our portfolio and employ back-testing of past events to effectively evaluate blind spots and discover "unknown unknowns" and systematic parameter risks. One of the critical elements of this approach is to ingest and catalog detailed information relating to the individual risk to assess and reveal insights on the overall portfolio. Safepoint believes that the richness of our data and analytics serves as the foundation for our ability to consistently provide our agents and customers with fair pricing for dislocated, underserved and catastrophe prone areas.

A key pillar of our business strategy is risk hedging, where we continuously reassess and syndicate insurance risk to various capital providers, depending on market conditions, terms, availability and pricing. We believe our sustainable risk partnerships are emblematic of our prudent approach to risk management and support our ability to grow in existing and new markets. Safepoint employs catastrophe bonds, industry loss warranties and traditional reinsurance, well in excess of regulatory and rating agency requirements for purchasing protection, to conservatively hedge risk to ensure superior claims-paying resources. Safepoint typically purchases excess of loss reinsurance above a 1-in-250 year probable maximum loss and has never had an event or cluster of events exceed even half of its available reinsurance limit in a given accident year. We have sustained consistent support since inception from our reinsurance relationships and catastrophe bond investors. As of March 31, 2026, all of our reinsurance was purchased from reinsurers rated "A-" or better by AM Best or from capital markets-linked reinsurers, including fully collateralized reinsurers, and through the use of catastrophe bonds.

We believe that, as a result of our strategy of deliberate and profitable growth, we are well positioned to take advantage of increasingly dislocated property insurance markets in the United States. We have organically increased gross written premiums over the five-year period ending December 31, 2025 from $188 million during the year ended December 31, 2021 to $927.2 million during the year ended December 31, 2025. During that period, we have transitioned from a risk-bearing balance sheet-owned insurance model to a predominantly insurance services model, whereby we receive fee income from the policyholder-owned Reciprocal Exchanges and third-party MGAs and insurance companies. For the years ended December 31, 2025 and December 31, 2024, we had net income attributable to controlling interest of $157.2 million and $41.3 million, respectively, income before income taxes for the Insurance Services segment of $114.9 million and $46.5 million, respectively, and income before income taxes for the Risk-Bearing Entities segment of $134.3 million and $49.9 million, respectively. For the three months ended March 31, 2026 and March 31, 2025, respectively, we had net income attributable to controlling interest of $48.0 million and $16.6 million, respectively, income before income taxes for the Insurance Services segment of $23.2 million and $23.2 million, respectively, and income before income taxes for the Risk-Bearing Entities segment of $42.8 million and $13.2 million, respectively.

We seek to continuously grow our business by increasing our market penetration, including in new geographies, and by developing new products which harness our core competencies where we believe we can generate attractive risk adjusted returns. We recently added E&S products and capabilities which we believe unlocks a larger, more nationwide footprint. Additionally, we believe our fee-based reciprocal exchange structure provides us with a meaningful competitive advantage relative to stock companies, particularly as pricing markets soften. The Reciprocal Exchanges are managed to optimize underwriting capital, as opposed to stock companies, which often focus on short term profits. The reciprocal exchanges' capital is

------

##### [**Table of Contents**](#toc)
partly supported by annual subscriber capital contributions equal to 10% of premiums. This capital subsidy and structure allows us the flexibility to provide competitive pricing to our policyholders across market cycles, while sustaining the requisite capital, and providing sustainable, recurring fee income.

The other elements of our plan to continue to grow earnings include: (a) expansion of our distribution capabilities via new channels, including wholesalers and third-party MGAs; (b) optimization of our reinsurance program based on our fast-growing capital base; and (c) expansion of our third party service relations with MGAs and carriers in exchange for fees.

**We Are an Insurance Services Platform** 

We operate a full stack insurance and underwriting services platform that combines the benefits of policyholder-owned reciprocal insurance exchanges, which we manage for a service fee, with our wholly owned stock insurance company, Safepoint Insurance. Accordingly, we believe that our business fundamentals and risk profile are different than a traditional insurance company.

Our insurance services platform is comprised of fee-generative businesses, collectively referred to as the "Safepoint MGA." The Safepoint MGA includes the Attorneys-in-Fact for the Reciprocal Exchanges and our licensed managing general agent (Safepoint MGA, LLC) for Safepoint Insurance and third-party clients. All of our employees and infrastructure are part of Safepoint MGA. Safepoint MGA earns fee income based on the premium managed for the Reciprocal Exchanges and third parties.

The largest element of our services platform is serving as the attorney-in-fact for the policyholders of the two reciprocal insurance exchanges: Cajun Underwriters Reciprocal Exchange (a Gulf Coast specialist) and Manatee Insurance Exchange (a Florida specialist). The reciprocal insurance exchanges are not legally owned by Safepoint, rather they are 100% owned by the policyholders. Because we have no direct economic equity interest in the Reciprocal Exchanges, Safepoint is not directly exposed to the risk of policies held by the Reciprocal Exchanges, and their earnings impact, and as a result we benefit from reduced variability in financial results. Our service platform issues and renews policies on behalf of the policyholders and is also responsible for the underwriting, policy administration and claims management of the Reciprocal Exchanges.

Reciprocal insurance exchanges are different than stock and mutual insurance companies because they are unincorporated and are managed by a services company, referred to as an attorney-in-fact. Reciprocal insurance exchanges, often referred to simply as "reciprocals," are an association of policyholders, known as subscribers, who assume liabilities among themselves (subscribers operate as both the insured and insurers). Reciprocals have been an important part of the U.S. insurance landscape for nearly 150 years. Today, some of the most recognizable property and casualty insurance companies in the United States are structured as reciprocals, including Farmers, USAA, Erie Indemnity and PURE.

We also own an insurance company, Safepoint Insurance Company, and three Bermuda-based reinsurance captives. We use our Captives to write supplemental reinsurance for the Reciprocal Exchanges and Safepoint Insurance, which we believe gives us greater financial flexibility to self-reinsure based on the pricing and availability of reinsurance in the open market. While the reinsurance placed between our Captives and the Reciprocal Exchanges is eliminated in consolidation for GAAP, because the results of the Reciprocal Exchanges are classified as one-hundred percent non-controlling interests, the economic results are included

------

##### [**Table of Contents**](#toc)
as part of Safepoint's controlling interest. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations—Results by Operating Segment—Risk-Bearing Entities Segment*" for more information.

Beginning in 2023, Safepoint Insurance began renewing the majority of its Florida and Louisiana insurance business into the Reciprocal Exchanges. The tables below illustrate the transition of our gross written premium to the Reciprocal Exchanges, as of December 31 of the applicable year.

<u>Breakdown of our managed premiums over time (as of December 31 of the applicable year)</u>![LOGO](g73198g64r64.jpg)

(1) Reflects post-elimination Risk-Bearing gross written premiums i.e., Safepoint Insurance gross written premiums

Set forth below is a simplified diagram of our organizational structure, immediately prior to and immediately following completion of the offering contemplated by this prospectus, which highlights our fee businesses, derived from our service agreements with the Reciprocal Exchanges. For a detailed legal organizational chart of Safepoint, please see "Regulation." All companies shown below within the holding company scope are 100% owned subsidiaries of Safepoint. We do not own the Reciprocal Exchanges, but derive an economic benefit from the fee income earned from such Reciprocal Exchanges.

------

##### [**Table of Contents**](#toc)
![LOGO](g73198g65e65.jpg)

---

| | |
|:---|:---|
| 1 | As of the date hereof, approximately 75% of the common stock of Safepoint Holdings is owned by members of senior management and other employees of Safepoint, before giving effect to this offering. After giving effect to the sale of shares of our common stock in this offering, approximately [•]% of the common stock of Safepoint Holdings will be owned by members of senior management and other employees of Safepoint (or approximately [•]% if the underwriters' option to purchase additional shares is exercised in full). A 1% increase (decrease) in the number of primary shares offered at the assumed price would decrease (increase) senior management's and other employees of Safepoint's percentage ownership by approximately [•] percentage points, or by approximately [•] percentage points if the underwriters' option to purchase additional shares is exercised in full.  |

---

---

| | |
|:---|:---|
| 2 | This includes all stockholders other than management and employees as a group, none of whom owns more than 10%. After giving effect to the sale of shares of our common stock in this offering, approximately [•]% of the common stock of Safepoint Holdings will be owned by Other Stockholders (or approximately [•]% if the underwriters' option to purchase additional shares is exercised in full). A 1% increase (decrease) in the number of primary shares offered at the assumed price would decrease (increase) Other Stockholders' percentage ownership by approximately [•] percentage points, or by approximately [•] percentage points if the underwriters' option to purchase additional shares is exercised in full.  |

---

---

| | |
|:---|:---|
| 3 | All companies shown, other than the Reciprocal Exchanges, are 100% owned by Safepoint Holdings.  |

---

---

| | |
|:---|:---|
| 4 | As of December 31, 2025, we own $46.8 million aggregate principal amount of the Surplus Notes issued by the Reciprocal Exchanges (excluding any surplus notes held by the other Reciprocal Exchange). In addition, our wholly owned Captives provide reinsurance protection to the Reciprocal Exchanges. While we do not own the Reciprocal Exchanges, they are managed by the Attorneys-in-Fact. Because of the contractual relationships between Safepoint Holdings and the Reciprocal Exchanges, we consolidate the Reciprocal Exchanges for financial reporting purposes under GAAP as is presented in this prospectus.  |

---

Our innovative structure allows us to generate significant fee income through underwriting and other insurance services and we believe gives us greater balance sheet flexibility to grow our business in a capital efficient manner. Our capital efficiency is primarily derived from the underwriting capital of the Reciprocal Exchanges, which we do not legally own and which we do not assume direct economic equity risk or direct earnings exposure. The equity of the Reciprocal Exchanges ($86.3 million as of March 31, 2026) is not included as part of our total stockholders' equity ($302.9 million as of March 31, 2026), with $12.7 million (as of March 31, 2026) of the Reciprocal Exchanges' subscriber contributions included as temporary (mezzanine) equity on our consolidated balance sheet. Although we do not legally own the Reciprocal Exchanges, our fee income is dependent on the premium growth and continued financial strength of the Reciprocal Exchanges.

------

##### [**Table of Contents**](#toc)
*Our Revenue Model*

We have the three operating segments listed below. However, we generate revenue for the benefit of Safepoint shareholders through our Insurance Services and Risk-Bearing segments. While the Reciprocal Exchanges are an important value driver for our business as the primary source of our fee income streams in the Insurance Services segment, the economic results of the Reciprocal Exchanges are excluded from our net income attributable to controlling interest and shareholders equity attributable to controlling interest given the Reciprocal Exchanges are not legally owned by Safepoint.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Insurance Services*: Our insurance services platform, which we refer to as Safepoint MGA, receives fees based
on the premium managed for the Reciprocal Exchanges and third-party clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Risk-Bearing Entities*: Safepoint Insurance, an insurance company, which writes personal and commercial
policies for homeowners and small businesses; as well as our Bermuda-based reinsurance Captives that provide supplemental reinsurance to Safepoint Insurance and the Reciprocal Exchanges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Reciprocal Exchanges*: The Reciprocal Exchanges, which are insurance operations that we manage for a fee, but
do not legally own.

**Our Business** 

We write both personal and commercial property insurance and have expanded geographically beyond our initial focus on the Florida market (beginning in 2013) into other states, including Louisiana (beginning in 2015), Texas (beginning in 2015), Mississippi (beginning in 2020), Alabama (beginning in 2020), and California (beginning in 2024). We focus principally on writing homeowners, investment properties (dwelling fire), condo, wind-only and commercial coverages to individuals and businesses on an admitted basis. We see our range of product lines as a strength given the needs of property owners and business owners in challenging markets. Most of the business we write is concentrated on the coast of Florida and Louisiana.

The following charts set forth our managed in-force premium by state and class of business as of December 31, 2025:

---

| | |
|:---|:---|
| ![LOGO](g73198g67a01.jpg)  | ![LOGO](g73198g67a02.jpg) |

---

The insurance products we write through the Reciprocal Exchanges and Safepoint Insurance principally include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Homeowners insurance*: Provides financial protection to home and properties that are damaged. Homeowner's
insurance policies include protection for both the home and its

------

##### [**Table of Contents**](#toc)
property, as well as other buildings or structures on the property. Homeowners insurance also provides protection for most items located within the home or other structure. Policies also provide liability coverage to protect policyholders that are held legally responsible (liable) for the injuries to others or to their property, which has a finite limit. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Investment properties (dwelling fire)*: Provides financial protection to investment properties and to personal
properties that are damaged. Dwelling insurance covers the structure of the property and the personal property within. Dwelling insurance can be purchased to cover a primary residence, or a rental property or vacation property. Dwelling insurance
covers certain and specific perils and hazards that can damage the property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Commercial insurance*: Provides financial protection to commercial properties that are damaged, as well as
general liability and business interruption insurance to businesses. Safepoint Insurance generally writes commercial risks up to a policy limit of $15 million, gross of any reinsurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Homeowners—Condo insurance*: Provides financial protection to owners of condominium units that are
damaged. Condominium insurance policies include protection for the condominium unit. Condominium insurance also provides protection for most items located within the condominium unit. Policies also provide liability coverage to protect policyholders
that are held legally responsible (liable) for the injuries to others occurring in the condominium unit or to their property. The tables above also include wind-only policies within Homeowners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *California E&S*: Provides financial protection for landlords, homeowners and commercial auto policyholders
against climate and catastrophe risks.

Our insurance policies are originated primarily through three channels: (i) policies we assume from Florida Citizens Property Insurance Corporation ("Florida Citizens") and Louisiana Citizens Property Insurance Corporation ("Louisiana Citizens"), which are state-sponsored insurers, through participation in their legislatively-established "depopulation programs"; (ii) assuming large portfolios of policies from other private insurers, including from insurers in receivership; and (iii) voluntary policies, or new business, sold by licensed independent agents. As markets become challenged, a familiar pattern occurs: failing markets rely on residual facilities such as Florida Citizens and Louisiana Citizens, which have grown and depopulated in a cyclical pattern over time. As of December 31, 2025, we had approximately 299,000 policies in force, 73% of which were assumed from Florida Citizens and Louisiana Citizens, 7% of which were assumed from private insurers and 20% of which were sold by independent agents. Similar challenges are growing in other parts of the country. For example, California (CA FAIR Plan) and Texas (TWIA) have recently experienced significant growth.

We are also focused on growing our voluntary business origination through independent agents, who are not exclusive to Safepoint, and seek to continue to expand and deepen these

------

##### [**Table of Contents**](#toc)
relationships as a part of our business strategy, particularly in underserved markets where property specialist underwriters like Safepoint are needed and benefit from the lack of capacity in the market. Safepoint's marketing and distribution strategy is to create and sustain relationships with like-minded agents on a selective basis that share our views of pragmatic and conservative underwriting. Safepoint employs a dedicated team of territorial agency managers to develop these successful partnerships, promote sales, and retain policyholders for the long-term. As of December 31, 2025, this agent network consists of approximately 6,000 non-exclusive independent agents.

Our in-house field and desk staff manage the entire lifecycle of a claim and exclusively service Safepoint's customer base allowing the team to build a more intimate knowledge of our policy forms, procedures and guidelines. Our claims administration team operates on the core principle of delivering prompt, fair and professional services to our policyholders in their time of need. Safepoint is able to maintain high quality service and control over the claims process because our claims administration is performed predominantly by an internal field staff of Safepoint employees, with supporting capacity from third-party adjusting firms for large catastrophe events.

**Our Industry** 

*Our Market Opportunity* 

Safepoint participates in the approximately $283 billion premium (as of December 31, 2025) U.S. personal and commercial lines property insurance market, with a focus on admitted lines in Florida and Louisiana. From 2019 to 2025, total direct written premium for the homeowner's insurance markets in Florida and Louisiana grew by approximately 80% and 70%, respectively, based on publicly available insurance industry regulatory filings. During the same period, Safepoint increased its combined market share across Florida and Louisiana from 0.8% to 1.9%.

We also believe there is an opportunity to expand into new states and into the E&S market, which represents approximately $105 billion in total U.S. premiums, as of December 31, 2025, while preserving our underwriting criteria, rating structure and reinsurance strategy to adequately protect the Company. For example, in California, during the three months ended March 31, 2026 and the year ended December 31, 2025, the Company had $2.2 million and $2.3 million, respectively, of California E&S gross written premium written by our wholly owned subsidiary. In addition, during the three months ended March 31, 2026 and the year ended December 31, 2025, the Company managed $20.5 million and $58.1 million, respectively, of California E&S gross written premium under a service contract underwritten by an unaffiliated carrier and received service fee income of $1.3 million and $3.6 million during each respective period.

Our evolution into a growing property insurance services company reached a significant inflection point in 2023 with the completion of a management buyout transaction led by David Flitman and other members of our senior management. Our senior management and other employees of Safepoint currently own approximately 75% of Safepoint's equity, before giving effect to the offering contemplated by this prospectus. We believe these transactions have better positioned us to pursue additional growth opportunities in our attractive target markets, while further reinforcing a strong alignment between management and its shareholders. For more information about the ClinchPoint transactions, see "*Certain Relationships and Related Party Transactions—Investment Agreement with ClinchPoint*."

------

##### [**Table of Contents**](#toc)
*Significant Enhancements in Insurance and Reinsurance Markets* 

Over the last 40 years, there have been significant enhancements in the scope and scale of insurance and reinsurance operations, both within the U.S. and globally. Initial drivers, such as the growth of mass tort liability, altered the landscape of capital formation with the emergence of large offshore reinsurers in Bermuda in the 1990s and 2000s, which became a familiar, recurrent pattern for subsequent capital events.

Additional catalysts, including large events like Hurricane Andrew (1992), the September 11<sup>th</sup> Terrorist Attacks (2001) and Hurricanes Katrina, Rita and Wilma (2005), contributed to the growth of the specialist underwriters' market and the formation of new balance sheets; as well as the expanded use of other innovations in the insurance risk transfer space, such as captives, risk retention groups and the advent of the insurance-linked securities ("ILS") market, such as catastrophe bonds and sidecars.

As a form of risk segmentation and capital efficiency, reciprocal insurance exchanges have become more prevalent in recent company formation. For example, of the new insurance companies formed in Florida in the past three years, the majority are reciprocal insurance exchanges.

We are focused on delivering catastrophe-exposed property insurance in Florida, Louisiana and other markets that we believe are dislocated and present us with underwriting opportunities. As risk has grown, the industry has responded with capital formation and significant investments in analytical resources, including actuaries, data scientists, catastrophe modelers and other product innovators. As risk grows, so does the need for more sophistication to analyze and hedge risks appropriately. Safepoint was founded on these principles, and we believe we have risk professionals who have seen this evolution and contributed to the enhancements in these technologies.

*Depopulation Programs* 

We have taken advantage of opportunities presented by take-out transactions, with Florida Citizens and Louisiana Citizens offering us a large and attractive range of data for policies in Florida and Louisiana to screen and select only the risks that fit our underwriting and rating criteria. For this reason, take-out transactions with Florida Citizens and Louisiana Citizens, as well as policy assumptions from private insurers, have been highly efficient and successful channels of business origination for us. We believe we have a best-in-class underwriting platform for analyzing takeout portfolios and we are one of the industry leaders in total takeout policies assumed, with a proven policy assumption process that leads to potential growth opportunities when the Florida and Louisiana markets are most turbulent. For further information regarding take-out transactions with Florida Citizens and Louisiana Citizens, see "*Business—Take-Out Transactions*."

*Florida Market and Impact of Reforms* 

The insurance industry, particularly in the Florida market, has been recently challenged by growing social inflation, fraudulent and baseless claims and the proliferation of nuisance lawsuits. Accordingly, one of the primary challenges for Florida's property market in recent years has been the frequency and severity of litigated claims, particularly following hurricanes and tropical storms. In a January 2023 report, the FLOIR cited 2021 data showing that homeowners' insurance lawsuits in Florida constituted 76.0% of the U.S. national total by count, but homeowners' insurance claims opened in Florida only constituted 6.9% of the U.S. national total by count.

------

##### [**Table of Contents**](#toc)
In response to these challenges, the State of Florida has recently enacted key legislative reforms, including restrictions on the assignment of benefits to third parties and repealing Florida's one-way attorney fee statutes. We believe these reforms have significantly altered the litigation environment and will be instrumental for the long-term sustainability and profitability of the Florida property insurance market.

The chart below illustrates the decline in the number of Safepoint Insurance's and Manatee's filed lawsuits for policy claims in Florida (by date of filing), as well as recent industry reforms in Florida, during a period when Safepoint Insurance and Manatee grew their policy count in Florida.

**Number of filed lawsuits for policy claims in Florida—Safepoint Insurance and Manatee (as of December 31, 2025)**![LOGO](g73198g70k70.jpg)

*Risk Segmentation and Hedging* 

We believe more effective risk management requires better portfolio management and optimization of ILS, use of more sophisticated actuarial techniques, better risk segmentation and the advent and the application of technology to deliver a more effective and nuanced product to the consumer. The use of ILS, such as catastrophe bonds, has been a significant driver for the insurance industry, including Safepoint, to channel risk to new investors outside of the traditional insurance/reinsurance market.

Another element of risk segmentation has been the evolution and growth in excess and surplus lines business. The non-admitted U.S. insurance market, also known as the E&S or excess and surplus lines market, is experiencing a period characterized by significant growth of $40.5 billion in 2019 to $104.5 billion in 2025, a compounded annual growth rate during such period of approximately 17%. E&S insurance focuses on insureds that generally cannot purchase insurance from standard market or admitted market insurers due to perceived risk related to their businesses. E&S carriers are generally permitted to tailor the terms of the

------

##### [**Table of Contents**](#toc)
insurance contract to suit the particular risk they are assuming. Also, E&S carriers are, for the most part, free of rate regulation. Recently, there has been a persistent and sustainable flow of business from the admitted market into the non-admitted E&S channels, resulting generally in compound rate increases across the E&S market in the United States. In addition, the macroeconomic and social environment continues to drive sustainable demand for specialized insurance solutions due to both increasing and more complex risks.

We believe Safepoint has well-positioned its insurance portfolios across the nexus of this dynamic risk environment, with our unique combination of an insurance services platform, capital efficient reciprocal insurance exchanges, E&S capabilities and conservative risk hedging.

**Our Competitive Strengths** 

We believe that we have several competitive strengths that allow us to grow our business profitably, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•***  ***Efficient Capital Structure with Reduced Earnings Volatility*** 

Unlike a traditional stock or mutual insurance carrier, the Reciprocal Exchanges have the ability to grow surplus organically through surplus contributions from policyholders, which provides third-party capital to support the Reciprocal Exchanges. We believe that the third-party capital in the form of our Non-Controlling Interest in the Reciprocal Exchanges helps provide us with greater economic insulation from the underwriting performance of the Reciprocal Exchanges and, accordingly, reduces the variability in our financial results. While we have underwriting authority and responsibility for administering policies and claims for the Reciprocal Exchanges, we do not have direct economic equity risk associated with these policies. Such direct economic equity risks are principally borne by the Reciprocal Exchanges, each of which is an association of subscriber policyholders. As part of our insurance services provided to the Reciprocal Exchanges, we purchase third-party reinsurance, on behalf of the Reciprocal Exchanges, designed to protect their balance sheets from multiple hurricanes and other tropical storms in any given year. For the risk management and other insurance services we provide the Reciprocal Exchanges, we earn fee income based on a percentage of the managed premium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•***  ***Conservative Risk Management and Reinsurance Strategy*** 

Safepoint maintains multiple layers of risk hedges and protection against catastrophe and attritional losses through traditional reinsurance and alternative risk transfer, such as catastrophe bonds. We believe this disciplined approach has allowed Safepoint to preserve its capital and honor its commitments to policyholders, even following large hurricane events. Unlike many of our competitors, Safepoint has not had any prior year reserve deficiencies over the last five years. Although our approach may result in sacrificing an element of short-term profitability for long-term stability, we believe it is the reason we are in a strong position to pursue market opportunities and selectively assume competitor portfolios following catastrophe events. The table below sets forth the percentage of our historical third-party reinsurance limit in Florida that was impacted by hurricane or significant tropical storms. The reinsurance limit represents the maximum amount reinsurers are required to pay to the Carriers in the event of loss during any given year, while the historical utilization represents how much of that limit was paid to Safepoint. Safepoint typically purchases excess of loss reinsurance above a 1-in-250 year probable maximum loss and has never had an event or cluster of events exceed even half of its available reinsurance limit in a given accident year. We believe the ratio of the reinsurance limit that we purchase to the total insured value of our Florida policies, which was over 3.5% (as of September 30, 2025), is materially higher than many of our Florida peers (approximately 1%).

------

##### [**Table of Contents**](#toc)
**Florida Reinsurance Limit vs. Historical Utilization ($mm)** 

**Represents the dollar amount of reinsurance limit purchased with respect to hurricanes and other named storms and the utilization of such limit from historical events**![LOGO](g73198g73y44.jpg)

(1) Safepoint FL represents the dollar amount of reinsurance limit purchased by the Carriers with respect to hurricanes and
other named storms affecting Florida.

(2) Safepoint xFL represents the dollar amount of reinsurance limit purchased by the Carriers with respect to hurricanes and
other named storms affecting states other than Florida.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•***  ***Industry-Leading Expense Ratio via Streamlined, Tech-Enabled Processes*** 

We are focused on disciplined internal cost management, which we believe is a critical component of profitability in the property markets in which we operate and we believe differentiates us from many of our peers. Over the last several years, we have developed numerous in-house functions specifically tailored to our processes in order to reduce overall costs and produce better outcomes, including through the expansion of our claims administration and internal litigation teams. In addition, we utilize data-driven, actuarial analytics and advanced technologies, including artificial intelligence ("AI"), to define, measure and manage risk on a policy-by-policy basis. Our use of AI includes a recently designed and implemented Agency Relations Management System, which leverages modern cloud architecture to enhance the ease of doing business with Safepoint by streamlining communications and transactions with its network of independent insurance agencies. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Expense Ratio*" for more information.

Our success with tech-enabled processes has led to a meaningful reduction in our expense ratio. The chart below sets forth our net expense ratio and our adjusted general expense ratio for each of the years ended December 31, 2024 and December 31, 2025, which is the ratio of general and administrative expenses net of amortization of stock-based compensation and amortization of intangible assets as a percentage of gross written premiums.

------

##### [**Table of Contents**](#toc)
**Net Expense Ratio and Adjusted General Expense Ratio<sup>(1)</sup> By Year**![LOGO](g73198g03k66.jpg)

(1) Non-GAAP financial measure. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations— Reconciliation of Non-GAAP Financial Measures*" for a reconciliation of the non-GAAP financial measure in accordance with their
most applicable U.S. GAAP measure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•***  ***Entrepreneurial Problem Solving Management Team*** 

We are entrepreneurial problem solvers who seek to take advantage of the opportunities stemming from the dislocation and lack of capacity in various markets, particularly the coastal U.S. property insurance market. We believe the expansion of our business in Louisiana is a prime example of how we have recently used this problem-solving skill set to grow our business. At the time of our expansion in Louisiana in 2021, the property insurance market in the state was significantly challenged following recent catastrophe events, including the ultimate failure of at least 10 insurance companies following Hurricane Ida. In December 2021, Safepoint assumed personal lines policies in Louisiana from two companies in receivership and one insolvent carrier. Safepoint Insurance assumed the risk on its balance sheet while it established a new venture, Cajun, one of the Reciprocal Exchanges. We raised new surplus from a combination of our own funds and third-party investors and purchased approximately $240.0 million of reinsurance limit in order to significantly increase our claims paying resources in the state. We believe that Safepoint and Cajun ultimately benefited approximately 50,000 policyholders from ending up in Louisiana Citizens, where they may have been subject to reduced coverage at higher prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•***  ***Disciplined Data-Driven Underwriting Approach*** 

We believe that our disciplined and data-driven approach to risk management has been a key driver of our profitability and sustainability in the catastrophe-exposed markets in which we operate. We have made strategic investments in predictive analytics and advanced pricing models, including a state-of-the-art Generalized Linear Modeling ("GLM") software which incorporates modern statistical and machine learning techniques to build pricing structures that are both more accurate and more adaptive. We believe these investments enhance our ability to segment risk, strengthen retention and respond quickly to market changes. By leveraging our differentiated access to unique data and technological innovations in underwriting, we believe we are able to maintain a competitive edge in our target markets and achieve a meaningful reduction in attritional loss ratio over time. Our integrated operations allow us to collaborate seamlessly across key stakeholders (underwriting, products, claims and legal) to proactively address risk exposures, including fraud-related loopholes, and evolve policy language in response to market dynamics, enhancing underwriting profitability and process efficiency.

------

##### [**Table of Contents**](#toc)
The chart below illustrates the meaningful improvement in Safepoint's gross loss ratio (including paid losses, case reserves and IBNR reserves, but excluding reinsurance recoverables) for the last 10 accident years as of December 31, 2025. The bar graph in the chart below illustrates Safepoint's gross loss ratio by accident year, excluding hurricanes and other named storms. All figures are shown gross of inuring reinsurance recoveries.

**Gross Loss Ratio By Accident Year Excluding Named Storms<sup>(1)</sup>**![LOGO](g73198g67g67.jpg)

(1) For each of the years listed above, our gross loss ratio by accident year, including named storms, was as follows, without
giving effect to third party reinsurance recoveries: (i) 37.8% for 2014; (ii) 53.3% for 2015, (iii) 49.7% for 2016, (iv) 220.1% for 2017, (v) 41.9% for 2018, (vi) 34.5% for 2019, (vii) 68.1% for 2020,
(viii) 122.3% for 2021, (ix) 76.2% for 2022, (x) 18.6% for 2023, (xi) 32.4% for 2024, and (xii) 18.0% for 2025.

(2) The percentages listed underneath the named storms represent the named storm's CAT loss ratio, calculated by
subtracting the gross loss ratio by accident year excluding named storms from the gross loss ratio by accident year, including named storms, as listed in footnote 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•***  ***Strong Claims Administration, Integrated with Litigation Teams*** 

We believe that our dedicated claims administration and litigation teams, which have over 150 full-time employees, have been essential to containing our overall loss costs and loss adjustment expenses, and have led to a reduction in both the frequency and severity of claims. Additionally, Safepoint's claims operations are a critical element of our risk management strategy that has enabled us to consistently maintain sufficient reserves, with no adverse prior year development over the last five years. In addition, our in-house legal team, which includes experienced trial attorneys, manages all aspects of the legal process, including pleadings, discovery, mediation and trial. This alignment across claims and legal functions, as well as timely and quality claims services, helps manage litigation and defense costs. For more information on our claims administration, see "*Business—Claims Administration*."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•***  ***Strong Visibility into Earnings Driven by High Policyholder Retention*** 

Historically we have enjoyed high levels of policyholder retention, which is defined as the level of policy and premium renewals of existing customers year over year. We believe high policyholder retention has provided a high degree of visibility into our earnings, particularly our recurring fee income streams. We believe our high policyholder retention rates are attributable in part to the challenging insurance markets in which we operate, including dislocated coastal

------

##### [**Table of Contents**](#toc)
property markets, which we believe are generally less sensitive to premium rate increases than other segments of property and casualty insurance. Policy and premium retentions are an important component of maintaining a stable and sustainable book of insurance business and generating sufficient managed premiums for our fee business. We plan to continue to focus on high levels of policyholder retention, while also maintaining the appropriate premium rate.

**Our Growth Strategies** 

The key aspects of our business strategy are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•***  ***Growing Geographically Through Diversified Distribution Channels* ** 

Safepoint leverages its management team's multi-faceted product underwriting expertise to broaden the scope of policyholder solutions by expanding both our product suite and distribution capabilities. Safepoint is expanding its distribution capabilities via new channels, including wholesalers and MGAs. Safepoint is selective in whom it chooses to partner with to access new markets, which we believe are all fully aligned with our competitive strengths. We continue to capture market share in admitted lines in Florida and Louisiana, while expanding nationally into new states and into the excess and surplus lines market. We have achieved such growth while maintaining our underwriting criteria, rating structure, and reinsurance strategy to adequately protect the Company in excess of a 1-in-250-year catastrophe event. As of February 1, 2026, we are licensed to write admitted insurance products in six states, granted approval to write excess and surplus lines products in 43 other states and awaiting approval in one additional state, with the goal of national positioning.

Macroeconomic and social environment trends continue to drive strong demand for specialized insurance solutions, due to both increasing and more complex risks. We have applied our risk management expertise in both the admitted as well as the E&S insurance markets. We have developed a mix of personal and commercial E&S offerings, with a near term focus on California, Nevada, Utah, Arizona, New Mexico, Colorado, Tennessee, Georgia, South Carolina, North Carolina and Hawaii. E&S offerings allow us to react quickly to changing market conditions and to accelerate the expansion of our business nationally as we do not have to go through the process of receiving required rate and policy form approvals from individual state regulators.

The map below sets forth the U.S. admitted insurance licenses and E&S approvals, held or pending by the Reciprocal Exchanges or Safepoint Insurance as of March 31, 2026.

------

##### [**Table of Contents**](#toc)
![LOGO](g73198g79a79.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•***  ***Capitalize On Our Expertise in Catastrophe-Exposed Property Insurance Markets Through Industry Cycles*** 

Throughout our history, we have focused on deliberate growth in underserved, dislocated U.S. coastal property insurance markets in which we have sufficient expertise to underwrite business that is attractive on a risk-adjusted basis. By prioritizing these underserved, catastrophe-exposed markets, we plan to continue to build a strong presence and reputation as a reliable insurer in underserved segments. We believe this strategic capability enables us to expand our market share while maintaining a strong commitment to customer service and claims support. The foundation for this growth strategy is our risk hedging expertise, where we continuously reassess; for example, each year we evaluate the insurance risk we syndicate to various sources, depending on market conditions, terms, availability and pricing. Safepoint syndicates and conservatively hedges risk to protect its claims-paying resources through catastrophe bonds, industry loss warranties and traditional reinsurance well in excess of regulatory and rating agency requirements for purchasing protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•***  ***Expand Fee Income From Third Parties Leveraging Safepoint's Platform*** 

We continue to expand our service relations with third-party MGAs and carriers in exchange for fees. For example, we manage all of the insurance administration functions of a third-party MGA, including writing $64.9 million of in-force premium as of March 31, 2026, with an unaffiliated carrier. This relationship, and others we seek to establish, allows us to leverage our platform to provide services for competitive rates, while achieving a compelling profit margin on the services revenue we receive. In addition, in this context we can benefit from the opportunity to track various markets and determine where it is prudent to deploy additional

------

##### [**Table of Contents**](#toc)
resources. We believe there is significant opportunity to expand our service offerings to other unaffiliated MGAs and carriers and drive additional growth in high margin fee income.

**Take-Out Transactions** 

Depopulation programs in Florida and Louisiana are designed to reduce the state's risk exposure by encouraging private companies to assume insurance policies from Florida Citizens and Louisiana Citizens, respectively. Florida Citizens generally offers such assumption policies on a monthly basis. Our practice is generally not to assume additional policies during hurricane season, and therefore, we typically participate in Florida assumption transactions during the first and fourth quarters of a calendar year. Louisiana Citizens policy assumption currently occur once a year, effective as of December 1. In an assumption transaction, policies are assumed at Florida Citizens' or Louisiana Citizens' rate and forms during assumption period. Upon renewal, such policies move to our rates and forms. Since January 1, 2020, we have completed 10 assumption transactions with Florida Citizens (for approximately 220,000 policies) and 8 assumption transactions with Louisiana Citizens (for approximately 43,000 policies).

While we have experienced growth from Florida Citizens assumption transactions in the last few years, we do not anticipate significant growth remaining over the next 12 months. Florida Citizens maintained over 1.4 million policies in October 2023, and as of December 31, 2025 they have 0.4 million policies-in-force, a decline of 71.9% in approximately 15 months. The availability of assumption transactions from Florida Citizens tends to be cyclical in accordance with depopulation efforts and named storm frequency.

![LOGO](g73198g23a01.jpg)

(1) Premium retention in excess of 100% indicates an increase in premium.

In connection with this process, our management evaluates the policies eligible for removal and submits an unranked list of policies to Florida Citizens or Louisiana Citizens we would like

------

##### [**Table of Contents**](#toc)
to assume. An important factor in creating this list is whether we have obtained the advance approval of the underlying insurance agent. We are not allowed to initiate the assumption process with the policyholder unless we have obtained such advance approval. In Florida, we have obtained advance approvals from agents representing a significant majority of policies insured by Florida Citizens. In Louisiana, agents individually select the assuming insurance carrier for each of their customers' policies. We believe the role played by insurance agents in the Louisiana Citizens depopulation program creates a unique opportunity for Safepoint because we can recruit and market to Louisiana agents based on our points of differentiation, specifically our level of capitalization, leverage ratios and management team experience.

Our assumption agreements with each of Florida Citizens and Louisiana Citizens require us to offer renewals on the policies that we assume in the depopulation program for a specified period subsequent to the date on which the assumed policies are transferred to us. In addition, our assumption agreements do not restrict our ability to increase our rates upon renewal as long as we follow the filing regulations and procedures mandated by the pertinent state regulator. We strive to retain these policies by offering staying power in the market, competitive rates and efficient claims handling to meet our policyholders' enduring property insurance needs.

**Underwriting** 

Our discipline for achieving rate and form adequacy at the beginning of our business processes is illustrative of our philosophy—understanding our cost drivers, identifying and differentiating risk, and fairly and transparently pricing our products. Our underwriters follow our guidelines and analyze underwriting reports, including applications and inspection to ensure compliance. In certain circumstances, our underwriters are required to use their judgment to determine whether to grant an exception for a risk outside of our core agency guidelines, which includes, for example, larger dwelling residences valued at over $1 million or property limits for fine art or jewelry. Underwriters are empowered to use their judgment and present certain risks that fall outside of certain criteria for higher level approvals to their supervisor.

We focus on the efficiency of our underwriting process to improve the insurance agent experience. We believe that success with agency stakeholders and customers depends on the ability to deliver fast and accurate rate quotes, an intuitive online application process, and easy access to self-service functions. Additionally, the agent experience is enhanced by push-button availability of policy-level status queues and transaction reports. We seek to strengthen relationships with agents by providing an active information environment that provides instant feedback during the agent's sales process that includes available capacity by location, acceptability of risk, and pricing to save time and resources to establish coverage for the customer.

Underwriting criteria is deliberately designed to build a strong portfolio of insurable properties. We have designed our system with the goal of offering competitive rates to applicants with better insurance scores. The best performing properties have better construction and are maintained to minimize hazards and damage potential.

Evaluating individual risks and their specific characteristics is key for successful underwriting. We utilize a holistic approach in analyzing pertinent information gathered from multiple internal and external sources to decide whether to issue a policy. The intent of this risk-based underwriting approach is to refine the segmentation in price or underwriting to build an appropriately priced policy and avoid aggregating risks without proportionately adjusting price.

------

##### [**Table of Contents**](#toc)
One of the critical elements of our underwriting approach is to collect and catalog as much detailed information relating to the individual risk to assess and reveal insights on the overall portfolio. The purpose of collecting increasingly specific data is to build a comprehensive dataset that provides underwriters, analysts, and leadership with the ability to gain a holistic understanding of the portfolio. The richness of this data promotes the ability to be deliberate, specific and nuanced in serving our agents and customers with fair pricing for catastrophe prone areas, while simultaneously understanding the implications of recent and ongoing growth against obligations and strategic business goals.

Given recent increases in inflation across the United States, we pursue accurate valuations of insured exposures. Our current underwriting process requires cost estimates on all newly quoted business at point of sale, and we utilize inflation indexing in policy renewals.

As a complement to our risk modeling, we also conduct selective onsite property inspections. We use and refine specific criteria to identify which policyholders to inspect and the method of inspection in order to maximize the value of our onsite property inspections. By rigorously and regularly evaluating our inspection criteria, we believe we are able to maximize the value of our inspections and improve our underwriting and enhance our risk modeling. As a result of our significant growth in Florida during 2024 and 2025, we have invested in technology that uses Geographic Information Systems and analysis to provide initial evaluation of takeout properties to determine if an onsite property inspection should be ordered. This new capability and addition to our workflow increases automation and reduces the cost and effort of ordering and reviewing physical inspections provided by third-party vendors.

**Reinsurance Strategy** 

Regulated and rated insurance carriers are generally required to buy minimum reinsurance coverages up to 100-to-130-year modeled return period. Safepoint has always believed that superior protection allows for better economic outcomes and, as such, we have consistently purchased reinsurance protection well in excess of the minimum regulatory standard for Florida, Louisiana and the other Gulf Coast states. We consistently buy in excess of the 1-to-250-year modeled return period, as we believe this is the prudent standard to optimize our financial strength, flexibility and remain a viable insurer year after year, regardless of catastrophic storm activity. We consistently buy our reinsurance for "named storm" event coverage and not for attritional losses.

Our risk management success has been informed by our management's decades of observation of over a half trillion dollars of insured losses globally, the lessons learned from our diverse risk hedging strategies and our expertise in the mechanics underpinning industry catastrophe loss models. We are confident in our ability to make decisions to optimize our economic outcomes with the support of models because of our extensive experience in vetting model structure, scrutinizing model outputs, and even developing in-house catastrophe models.

These experiences and observations inform our strategic vision regarding what we deem as our minimal appropriate levels of protection. With this perspective, we survey the reinsurance market and budget for buying a comparatively conservative annual reinsurance program typically well in excess of the 1-to-250-year modeled return period. As we aim to get the best possible value for the layers of coverage we procure, we employ traditional reinsurance and alternative capital structures such as catastrophe bonds, captives and parametric covers (including based on insured industry losses). We focus on protecting the portfolio for single and multiple seasonal events with the use of reinstatement coverage, reinstatement premium protection, second and third event covers, and quota share agreements. In comparison with

------

##### [**Table of Contents**](#toc)
most of our peers, we believe we purchase much higher reinsurance coverage relative to the limit provided by the FHCF from just one storm, as recent history has proven.

Our annual reinsurance program, which is segmented into layers of coverage, protects Safepoint Insurance and the Reciprocal Exchanges for excess property catastrophe losses and loss adjustment expenses. We typically buy our reinsurance for "named storm" event coverage and not for attritional losses. Our reinsurance treaties typically have a 12-month term, which for the private reinsurance we purchase is from May 1 to April 30 of the following year.

For its May 1, 2026 to April 30, 2027 reinsurance program, Safepoint Insurance, along with the Reciprocal Exchanges, have purchased reinsurance from the following sources: (i) the mandatory coverage required by law to be placed with the FHCF; (ii) 50 private reinsurers, including syndicates from Lloyd's of London, which were all rated "A-" or higher by AM Best or S&P or have provided collateral to fully cover their exposure (we refer to this reinsurance as "open market" purchases); and (iii) our wholly owned Captives.

Our 2026-2027 seasonal reinsurance program provides protection against losses caused by hurricanes and other named storms. Our program is a mix of one-year reinsurance treaties and multi-year protection provided by our Nature Coast series of catastrophe bonds, for which we have a total of $845 million of coverage outstanding. The Nature Coast catastrophe bonds provide us with a substantial amount of economic flexibility in the upper layers of our program at a significant value compared to purchasing traditional reinsurance treaties for this segment. We typically structure our reinsurance as "per occurrence," which means that a separate attachment point is applied for each catastrophe event. Safepoint purchases approximately three times higher reinsurance limit as a percentage of total insured value than other Florida property insurers, according to SEC filings of certain of our public company competitors. We believe this is among the highest of our peer property insurers.

We opportunistically will use our Pompano Re Captive to write reinsurance for the Reciprocal Exchanges and Safepoint Insurance, which we believe gives us greater financial flexibility to self-reinsure based on the pricing and availability of reinsurance in the open market. While the reinsurance placed between our Captives and the Reciprocal Exchanges is eliminated in consolidation for GAAP, because the results of the Reciprocal Exchanges are classified as one hundred percent non-controlling interests, the economic results survive as part of Safepoint's controlling interest.

The bullet points below summarize certain aspects of our May 1, 2026 to April 30, 2027 reinsurance program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Our Retention.* We have a consolidated first event retention of $103 million of losses and loss adjustment
expenses, which is made up of $8 million in Carrier retention and $95 million of first event excess of loss and quota share participation by our wholly owned Captive. We also have a consolidated second event retention of $103 million,
with the same arrangement as the first event, but the second event losses to the Captive could be reduced by recovery from our Nature Coast 2025-1 Aggregate Index Cat Bond which would inure to the benefit of the Captive. It should also be noted that
for Florida events, the FHCF inures to the benefit of the Captive Quota Share. Safepoint Insurance and the Reciprocal Exchanges purchase this reinsurance from the Captive in exchange for premiums at a market rate, as determined by management, which
fully fund the Captives' first and second event retention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *FHCF Layer.* Our FHCF coverage includes an estimated maximum provisional limit of 90% of $497 million, or
$447.3 million, in excess of our retention of $279 million. The

------

##### [**Table of Contents**](#toc)
limit and retention of our FHCF coverage is subject to upward or downward adjustment based on, among other things, submitted exposures to FHCF by all participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Open Market Reinsurance.* We purchased an additional $1.14 billion of coverage from A- rated or
collateralized reinsurers above our retention and alongside our FHCF layer and catastrophe bond layers. This coverage can be reinstated once exhausted for second-event coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Nature Coast Re Layers.* We have entered into multiple catastrophe reinsurance transactions with Nature Coast
Re, a dedicated catastrophe bond issuer, which provides a total limit of excess of loss coverage for losses and loss adjustment expenses equal to $845 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Reinstatement Premiums.* Certain of our reinsurance contracts require additional payments of premium subsequent
to a first event to reinstate the reinsurance limit for a second event.

The diagram below depicts the first event coverage for our 2026-2027 reinsurance program. Modeled return periods have been derived from Verisk Touchstone Standard Catalog with demand surge.

------

##### [**Table of Contents**](#toc)
**2026-2027 First Event Reinsurance Program** 

**(Named Storm)**![LOGO](g73198g01a17.jpg)

**Claims Administration** 

*Overview* 

We have created a comprehensive, fully integrated claims administration team built around one core principle: delivering prompt, fair, and professional service to our policyholders in their time of need. We take pride in operating an in-house claims model that seeks to ensure control, consistency and accountability at every touchpoint of the claims journey.

------

##### [**Table of Contents**](#toc)
Our team of in-house field and desk adjusters is responsible for managing the entire lifecycle of a claim. From the moment we receive the first notice of loss, our adjusters take ownership of the claim by conducting timely inspections, thorough investigations and accurate coverage evaluations. Each claim is handled through its resolution, including through alternative dispute resolution processes, like mediation and appraisal, when necessary. This end-to-end model seeks to ensure that policyholders have a single point of contact and experience a streamlined, transparent process.

In addition to our core adjusting teams, we maintain specialized in-house units dedicated to high-priority claim segments. Our Special Investigations Unit protects the integrity of the claims process by identifying and mitigating fraud risks. Our Subrogation Unit pursues recovery from responsible third parties, helping to reduce claims costs and premiums. The Liability Unit provides targeted expertise in complex third-party claims, aiming to ensure accurate evaluations and fair settlements.

When claims escalate to litigation, we maintain continuity and cost-efficiency by transitioning a majority of those matters to our staff counsel, who are experienced in-house trial attorneys who manage all aspects of the legal process, including pleadings, discovery, mediation and trial. This integrated legal model promotes alignment across the claims and legal teams, allowing for more strategic, cohesive defense strategies and better outcomes.

Central to the strength of our claims organization is our people. We invest heavily in the professional development of our adjusters and examiners through a robust internal training program. This program builds claims professionals from the ground up, providing in-depth education on our Company's values, claims philosophies, systems and procedures. As a result, many of our team members have risen through the ranks with a deep understanding of our operations, leading to more effective claim handling and a superior experience for our customers.

Our claims administration model reflects our commitment to service, professionalism and operational excellence. By keeping every aspect of the process in-house—from initial claim handling to litigation—we aim to provide a level of consistency and responsiveness that sets us apart in the industry.

*Field Adjusting* 

In connection with catastrophe events affecting our insurance portfolio, such as hurricanes and other named storms, our entire claims operation shifts into high gear. Our team is structured to convert rapidly into a catastrophe response unit, with field adjusters deployed to affected regions for on-the-ground assessments, while desk adjusters triage claims, initiate contact with insureds, and maintain consistent communication throughout the event. This flexible structure allows us to scale quickly, maintain service continuity, and respond with agility to large-scale losses. Independent adjusters are used to supplement our in-house team in times of large-scale catastrophes.

Our catastrophe response is led by our Chief Claims Officer, with assistance from our internal claims management team. As possible hurricanes and tropical storms approach significant areas of our insurance coverage, Safepoint will review potential storm scenarios with catastrophe partners. The catastrophe leadership team will seek to identify geographic regions affected by the catastrophe, confirm resource requirements based on level of impact, and deploy resources accordingly.

------

##### [**Table of Contents**](#toc)
Safepoint maximizes the use of its internal field staff adjusters to process catastrophe claims. Our strategy is to use company field adjusters to handle small/medium size catastrophes and increase capacity as needed with independent adjusting firms as claims number or geographic area grows. Our claims team has access to hundreds of independent catastrophe adjusters through its contracts with independent adjusting firms. Safepoint conducts annual training with associated independent catastrophe adjusters to enhance its response times and ensure adjusters are familiar with its policy language and processes along with its service and quality expectations. We also conduct annual on-site and off-site catastrophe drills to ensure system and process capabilities are adequate. In the event of a catastrophe, we often send key staff members to the location of the catastrophe to monitor the quality of the adjuster's response as well as communicate pertinent information with regulators and other government officials.

**Technology** 

Our approach to technology has been informed by our senior management's experience over the last 30 years with various internally built and vendor-provided insurance technologies. This approach combines partnering with leading insurance software providers with developing software and integrations internally. We believe this combination of external and internal technology resources allows us to access industry-leading vendors when prudent or more efficient, while still retaining the choice to build custom integrations and proprietary software for control, speed and cost advantages.

Safepoint has built what it believes is an efficient enterprise operating model: claims, underwriting, reserving, litigation and analytics are all handled internally for enhanced execution and agent/customer satisfaction. In addition, Safepoint leverages a series of transactional reporting datasets, continuous integrations, and exception reporting processes with the goal of ensuring the highest quality of data for both analytical reporting and overall system health and quality. This approach drives down operating expenses by reducing spending on technology while providing our workforce with the data and tools necessary to refine our portfolio. We have refined our enterprise model over the past 11 years to create a robust reporting framework to support our executive team and enable quick decision cycles for underwriting and product development. This enterprise model provides a robust reporting framework. We utilize catastrophe models and actuarial analysis to continually evaluate our risk exposure and allocate reinsurance costs to the property level, which drives our pricing decisions to build a profitable portfolio of risk.

We have made significant investments in our data infrastructure and workforce to position Safepoint for efficiency, growth and operational excellence. In 2024, the company hired a Director of Engineering, who has built out a team of highly skilled employees with project management, software engineering, data engineering and data architecting skills to lead this process. These efforts focus on optimizing both on-premises systems and leveraging industry-leading cloud service providers to securely host Safepoint's data, analytics and reporting environments, all within robust, industry-standard cybersecurity frameworks.

Data is the foundational building block of any insurance and risk management enterprise, and Safepoint treats data ownership as a core tenant of its technology strategy. In order to better capture and utilize data, we have developed a robust, future-ready data ecosystem that underpins every aspect of Safepoint's enterprise operating model—from underwriting, claims, and reserving to litigation, analytics, and customer experience. By combining strong data ownership principles with modern cloud capabilities, Safepoint seeks to deliver a complete insurance carrier experience built on quality, reliability and innovation.

------

##### [**Table of Contents**](#toc)
Safepoint maintains a comprehensive data warehouse that integrates internal historical, third-party, and public data sources, enabling the company to back-test past events, identify blind spots, and stress-test portfolio assumptions. In addition, Safepoint reviews policy and claim data as it evolves to establish a more foundational and dynamic reporting and analytical structure that drives business decisions and delivers a holistic insurance carrier experience at the highest level of quality, despite the inherent complexity of managing three insurance carriers.

Safepoint's data engineering team designed and implemented an updated data warehouse, which enables analysts and management to efficiently segment or combine data across the Company's three carriers and multiple business lines. By integrating sophisticated data enrichment techniques, catastrophe modeling at the point of sale and advanced underwriting analytics, we have enhanced underwriting accuracy, reduced operational bottlenecks and minimized adverse selection. These capabilities allow Safepoint to evaluate property exposures, determine accurate insurance-to-value metrics and streamline coverage decisions, all while supporting high-volume risk evaluation and policy intake when participating in the state-backed insurer depopulation programs in Florida and Louisiana.

Safepoint's internal software development team focuses on core application development and application programming interfaces (referred to as APIs) integrations that directly support underwriting, policy administration and analytics workflows. By building and maintaining proprietary software solutions, the team seeks to accelerate underwriting processes, reduce reliance on manual tasks, and ensure seamless integration of internal data sources for more efficient and precise decision-making.

Safepoint's team of developers and data experts builds our own software with augmentation from code-writing AI platforms. As a planned replacement of a legacy system, Safepoint's engineering team recently deployed an internally designed Agency Relations Management System, which manages Safepoint's communications and transactions with its network of independent insurance agencies.

We believe this internally designed system provides substantial savings of physical man hours and establishes a more robust quality management system. Safepoint is utilizing this highly skilled team to promote internal enhancement and expansion into scalable and stable systems, while identifying efficient ways to reduce hours spent manually interacting with systems and promoting system integrations and unification between all data sources.

Additionally, we have a vendor-focused team which collaborates closely with external software providers to ensure product updates, API integrations and third-party services are efficiently implemented and optimized to meet evolving business and regulatory requirements. By combining internal innovation with adaptive vendor solutions, Safepoint maintains a flexible, scalable, and resilient technology ecosystem that drives efficiency, accuracy and strategic decision-making across the enterprise.

**Reserves** 

We maintain reserves for specific claims incurred and reported, IBNR reserves and reserves for uncollectible reinsurance, when appropriate. Our ultimate liability may be greater or less than the current reserves. In the insurance industry, there is always the risk that reserves may prove inadequate. We continually monitor reserves using new information on reported claims and a variety of statistical analyses. Anticipated inflation is reflected implicitly in the reserving process through analysis of cost trends and the review of historical development. We do not

------

##### [**Table of Contents**](#toc)
discount our reserves for losses and loss adjusted expenses to reflect estimated present value. In the prior three financial reporting periods, our prior year reserve development has consistently been favorable.

When a claim is reported, we establish a case reserve for the estimated amount of the ultimate payment after an appropriate assessment of coverage, damages and other investigation as applicable. The estimate is based on our reserving practices and on the claims adjuster's experience and knowledge of the nature and value of the specific type of claim. Case reserves are revised periodically based on subsequent developments associated with each claim.

We establish IBNR reserves in accordance with industry practice to provide for (i) the estimated amount of future loss payments on incurred claims not yet reported, and (ii) potential development on reported claims. IBNR reserves are estimated based on generally accepted actuarial reserving techniques that take into account quantitative loss experience data and, where appropriate, qualitative factors.

We regularly review our loss reserves using a variety of actuarial techniques and outside actuary consultants. We also update the reserve estimates as historical loss experience develops, additional claims are reported and/or settled and new information becomes available. A reserve can be increased or decreased over time as claims move towards settlement, which can impact earnings in the form of either adverse development or reserve releases. For additional information regarding our loss reserves, see "*Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates—Reserves for Losses and Loss Adjustment Expenses*."

**Investments** 

Our investments are managed internally in accordance with our investment policies, guidelines and applicable law. There is an investment committee consisting of the Chief Executive Officer, Chief Financial Officer and the Director of Investments that meets regularly to discuss current trends and performance. The Board of Directors' Finance and Investment Committee oversees our internal investment committee's strategy, plans and portfolios. Our investment strategy is to focus on conservative investments intended to maintain liquidity, preserve capital and manage it on a total return basis to ensure our investment principal is available to satisfy policyholder claims. In accordance with this strategy, our investment policies and guidelines require over 85% of the investment portfolio be at least investment-grade in cash and fixed income securities. The target duration of our investment portfolio is under 3.5 years.

As of December 31, 2025, we had $121.8 million of fixed-income investments and $632.7 million of cash and cash equivalents.

**Competition** 

We operate in highly competitive markets. While many of the large national insurance companies have de-emphasized writing in coastal regions, we face competition from regional insurers, coastal specialists, new entrants and the residual market, such as Florida Citizens and Louisiana Citizens. Our competitors include companies that market their products through agents, as well as companies that sell insurance directly to their customers. Larger and more established national and regional insurance companies may have certain competitive advantages in the market, including increased name recognition, increased loyalty of their customer base and reduced per policy acquisition costs. We compete based on the strength of our balance sheet, underwriting criteria, our distribution network and superior service to our agents and policyholders.

------

##### [**Table of Contents**](#toc)
In Florida, more than 90 companies compete with us in the homeowners' insurance market. Our competitors comprise approximately 98.6% of the Florida homeowners market based on 2025 statutory financial data.

In Louisiana, approximately 60 companies compete with us in the homeowners' insurance market. Our competitors comprise approximately 96.6% of the Louisiana homeowners market based on 2025 statutory financial data.

**Ratings** 

Insurance companies can apply to receive a financial strength rating from ratings services like Demotech and KBRA. In setting their ratings, these agencies utilize a quantitative and qualitative analysis of a company's balance sheet strength, operating performance and business profile. These analyses include comparisons to peers and industry standards as well as assessments of operating plans, philosophy and management. The ratings of Demotech range from "A" (unsurpassed) to M (moderate) and the ratings of KBRA range from AAA to R.

Safepoint Insurance currently has a financial stability rating of "A (Exceptional)" by Demotech and "BBB+" by KBRA; and Cajun and Manatee each currently have a financial stability rating of "A (Exceptional)" by Demotech and "BBB" by KBRA.

These financial stability ratings provide an objective baseline for assessing solvency and should not be interpreted as (and are not intended to serve as) an assessment of a recommendation to buy, sell, or hold, any securities of an insurance company or its parent holding company, including the shares of our common stock being offered by this prospectus.

**Employees and Human Capital** 

As of December 31, 2025, we had approximately 420 employees. Our employees are not subject to any collective bargaining agreement, and we are not aware of any current efforts to implement such an agreement. We believe we have good working relations with our employees. We aim to be an employer of choice, and not just for insurance. As such, we strive to create a culture committed to fostering a rich diversity of thought, background and perspective.

*Compensation and Benefits* 

We offer and maintain a competitive benefits package designed to support the well-being of our employees, including, but not limited to, medical, dental and vision insurance, a 401(k) plan, paid time off, family leave and employee assistance programs as well as an employee stock purchase plan available to all employees. We also offer a bonus program based on Company results and a deferred cash program where guaranteed cash grants are paid over three years, subject to the recipient's continued employment. We also emphasize the training and development of our employees and provide opportunities to further their education and professional development.

**Intellectual Property** 

We rely on a combination of copyright, trademark, trade dress and trade secret laws in the U.S. and other jurisdictions, as well as confidentiality procedures and contractual restrictions, to establish and protect our intellectual property and proprietary rights. These laws, procedures, and restrictions provide only limited protection.

------

##### [**Table of Contents**](#toc)
We have registered "Safepoint" and the logo design for Safepoint, and numerous of our other brand names and logos as trademarks in the U.S. and other jurisdictions. We have also registered numerous internet domain names related to our business. We also rely on common-law trademark protection to protect other types of our intellectual property.

We enter into agreements with our employees, contractors, clients, partners and other parties with whom we do business to limit access to and disclosure of our proprietary information. We cannot assure you that the steps we have taken will be sufficient or effective to prevent the unauthorized access, use, copying or the reverse engineering of our proprietary information, including by third parties who may use our proprietary information to develop products and services that compete with ours. Moreover, others may independently develop products or services that are competitive with ours or that infringe on, misappropriate or otherwise violate our intellectual property and proprietary rights, and policing the unauthorized use of our intellectual property and proprietary rights can be difficult. The enforcement of our intellectual property and proprietary rights also depends on any legal actions we may bring against any such parties being successful, but these actions are costly, time-consuming and may not be successful, even when our rights have been infringed, misappropriated or otherwise violated.

Companies in the insurance industry may own large numbers of copyrights, trademarks and other intellectual property and proprietary rights, and these companies and entities have and may in the future request license agreements, threaten litigation or file suit against us based on allegations of infringement, misappropriation or other violations of their intellectual property and proprietary rights.

**Facilities** 

Our principal business office is a leased facility located at 4010 Gunn Highway, Tampa, Florida 33618. In addition, we lease office space in Metairie, Louisiana, and Pembroke Pines, Florida. We own our original Tampa office at 12640 Telecom Drive, Tampa, FL 33637 which now serves as the Company's secondary office. The Metairie office and Telecom Drive office serve as back-up locations for our primary office for business continuity operations.

**Legal Proceedings** 

We are subject to routine legal proceedings in the ordinary course of business. We believe that the ultimate resolution of any pending matter will not have a material adverse effect on our business, financial condition or results of operations.

------

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

**Overview** 

We conduct our operations principally through three insurance companies, Safepoint Insurance, Cajun and Manatee, which we refer to herein as the "Carriers":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Safepoint Insurance, our wholly owned subsidiary, is a property and casualty insurance company domiciled in Florida, with
headquarters in Tampa, Florida. Safepoint Insurance received its Certificate of Authority from the State of Florida in November 2013. Safepoint Insurance underwrites personal and commercial lines residential property business on an admitted basis in
the states of Florida, Louisiana, Mississippi, Texas and Alabama. Safepoint Insurance's domiciliary state insurance regulator is the FLOIR. As part of our strategy, most of Safepoint's admitted policies have been moved to the respective
Reciprocal Exchange: Cajun for Louisiana and Manatee for Florida. Safepoint no longer writes new business in Florida and Louisiana. Due to a grant received from the State of Louisiana to increase underwriting capacity in the state, Safepoint is
required to keep a residual amount of policies with Safepoint until the grant agreement has been satisfied, which will occur in 2028.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• With the intended removal of admitted business from Safepoint's balance sheet, we have positioned Safepoint to begin
writing excess and surplus lines in states where Safepoint is not an admitted carrier and meets the eligibility requirements of the state and federal law. Safepoint is currently writing, or seeking to write, personal and commercial excess and
surplus lines property business in California, Tennessee, North Carolina and South Carolina. Safepoint also started writing commercial auto business on an E&S basis in California in 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cajun and Manatee are our affiliated reciprocal insurance exchanges managed by our wholly owned subsidiaries, Cajun AIF and
Manatee AIF, which act as attorneys-in-fact for Cajun and Manatee, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cajun is a property and casualty reciprocal insurer domiciled in Alabama. Cajun was previously domiciled in the State of
Louisiana, from which it received its Certificate of Authority in June 2022. Cajun changed its state of domicile to Alabama, effective July 31, 2025. Cajun currently underwrites personal and commercial lines property business on an admitted
basis predominantly in Louisiana.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Manatee is a property and casualty reciprocal insurer domiciled in Florida, with headquarters in Tampa, Florida. Manatee
received its Certificate of Authority from the State of Florida in February 2024. Manatee currently underwrites personal and commercial lines property business on an admitted basis in the State of Florida. Manatee only operates in Florida and its
domiciliary state insurance regulator is the FLOIR.

We refer to Cajun and Manatee as the Reciprocal Exchanges. A reciprocal insurer is an interexchange of insurance policies among persons known as "subscribers." A reciprocal insurer is not a separately incorporated company; instead, it is an arrangement through which mutual promises of the participants are exchanged. Each subscriber is insured by and, in turn, insures each of the other subscribers. The primary function of the attorney-in-fact is to manage the reciprocal and to carry out the insurance transactions on behalf of the subscribers, as authorized by such subscribers pursuant to written powers of attorney in their subscribers' agreements.

As attorneys-in-fact of Cajun and Manatee, respectively, Cajun AIF and Manatee AIF are entitled to earn management fees under their respective attorney-in-fact agreements equal to

------

##### [**Table of Contents**](#toc)
17% of annual gross written premium written by the applicable reciprocal insurer as compensation for underwriting and marketing management services, and to 3% of gross earned premiums by the applicable reciprocal insurer as compensation for non-catastrophe claims management services, as well as other fees and expenses. Each attorney-in-fact agreement has an initial five-year term (beginning June 2022 for Cajun and January 2024 for Manatee), which renews automatically for an additional three-year term unless terminated by mutual agreement or with cause (generally defined as material breach of the attorney-in-fact agreement or suspension or revocation of the reciprocal insurer's insurance license).

We wholly own three captive reinsurance companies domiciled in Bermuda, Pompano Re Ltd., Canal Re Ltd. and Bobcat Re Ltd. (together, the "Captives"). As captive insurance companies, the Captives are only licensed to do business with specific cedants (Safepoint entities or the affiliated reciprocal insurers in this case). The Captives were established to facilitate and complement the placement of reinsurance by Safepoint Insurance, Cajun and Manatee to the traditional and collateralized reinsurance markets. We also wholly own a Bermuda domiciled company, Tarpon Ltd. ("Tarpon"), which indirectly provides reinsurance to Safepoint Insurance, Cajun and Manatee through investments in Bermuda-based segregated accounts companies. The Captives' principal insurance regulator is the Bermuda Monetary Authority.

We also operate Safepoint MGA, LLC, a licensed managing general agent, which provides various administrative services to our affiliates.

Our organizational legal structure, immediately prior to and after the offering contemplated by this prospectus, is summarized below. Each entity is wholly owned by its immediate parent, unless otherwise specified below. Cajun and Manatee are not legally owned subsidiaries of Safepoint because, as reciprocals, they are owned by their subscribers. Cajun and Manatee are managed by their Attorneys-in-Fact, which are wholly owned subsidiaries of Safepoint. Certain non-operating companies have been removed for presentation purposes.

![LOGO](g73198g71g71.jpg)

------

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

<sup>1</sup> As of the date hereof, approximately 75% of the common stock of Safepoint Holdings is owned by members of senior management and other employees of Safepoint, before giving effect to this offering. After giving effect to the sale of shares of our common stock in this offering, approximately [•]% of the common stock of Safepoint Holdings will be owned by members of senior management and other employees of Safepoint (or approximately [•]% if the underwriters' option to purchase additional shares is exercised in full). A 1% increase (decrease) in the number of primary shares offered at the assumed price would decrease (increase) senior management's and other employees of Safepoint's percentage ownership by approximately [•] percentage points, or by approximately [•] percentage points if the underwriters' option to purchase additional shares is exercised in full. 

<sup>2</sup> This includes all stockholders other than management and employees as a group, none of whom owns more than 10%. After giving effect to the sale of shares of our common stock in this offering, approximately [•]% of the common stock of Safepoint Holdings will be owned by Other Stockholders (or approximately [•]% if the underwriters' option to purchase additional shares is exercised in full). A 1% increase (decrease) in the number of primary shares offered at the assumed price would decrease (increase) Other Stockholders' percentage ownership by approximately [•] percentage points, or by approximately [•] percentage points if the underwriters' option to purchase additional shares is exercised in full. 

Safepoint Insurance, Cajun and Manatee are principally regulated by their domiciliary state insurance departments and are subject to varying degrees of regulation and supervision in the other U.S. jurisdictions where they conduct business.

U.S. state insurance laws and regulations cover all aspects of our business and are generally designed to protect the interests of policyholders, as opposed to the interests of shareholders. Such laws and regulations relate to authorized lines of business, capital and surplus requirements, allowable rates and forms, investment parameters, underwriting limitations, transactions with affiliates, dividend limitations, changes in control, market conduct and a variety of other financial and non-financial components of our business. From time to time, states also enact legislation designed to increase consumer protections and curtail fraud or abuses in the insurance market. Interpretations of and changes to such laws and regulations over time can have significant impacts on our business, whether favorable or unfavorable.

As discussed under "Federal Regulation" below, although the federal government does not directly regulate the business of insurance, federal initiatives often affect the insurance industry in various ways. In addition, the NAIC has recently focused on issues relating to the solvency of insurance companies, cybersecurity and privacy, the management of climate risk, and the use of AI systems, among other areas.

**Reciprocal Exchanges** 

Cajun and Manatee are reciprocal insurers managed by Cajun AIF and Manatee AIF, respectively, as attorneys-in-fact. A reciprocal insurer is an unincorporated aggregation of "subscribers" operating individually and collectively through an attorney-in-fact to provide reciprocal insurance among themselves, pursuant to a subscriber's agreement setting forth the terms of participation in the exchange. Each subscriber is insured by, and, in turn, insures, each of the other subscribers, generally up to a designated amount.

A reciprocal insurer is managed by an attorney-in-fact authorized by a power of attorney given by the subscribers. The primary function of the attorney-in-fact is to administer the reciprocal and to carry out the insurance transactions on behalf of the subscribers. In addition, an advisory committee whose members are subscribers (or officers or directors of subscriber organizations) exercises subscribers' rights and has the ultimate power and responsibility of directing and controlling the reciprocal insurer's affairs. Additional subscribers may join a reciprocal insurer if they qualify and sign the subscribers' agreement and power of attorney. Reciprocal insurers may write property and casualty insurance and are generally subject to many of the same state insurance laws as corporations licensed as insurers.

------

##### [**Table of Contents**](#toc)
**Insurance Holding Company Regulation** 

We operate as an insurance holding company system and are subject to state statutes and regulations governing insurance holding company systems that are generally based on the Model Holding Company Act and Regulation, each in the form as adopted by the states of domicile of our Carriers. These vary from jurisdiction to jurisdiction, but generally require controlled insurance companies (i.e., insurers that are subsidiaries of insurance holding companies or reciprocal insurers managed by an attorney-in-fact controlled by an insurance holding company) to register with their domestic insurance regulators and to file certain reports with those regulators, including information concerning capital structure, ownership, financial condition, intercompany transactions and general business operations. Generally, under these laws, transactions between an insurance company and an affiliate must be fair and reasonable and, if material or in a specified category, they require prior notice and approval or non-disapproval by the insurance company's domiciliary state regulator. Both Florida and Alabama, the states in which the Carriers are domiciled, have enacted laws to implement these requirements.

*Changes of Control* 

Any person or entity desiring to acquire control of a U.S. domestic insurer, or a U.S. reciprocal insurer through the control of its attorney-in-fact, must generally receive prior approval from the insurer's domestic regulator, who will consider a number of factors including the financial strength of the proposed acquiror, the acquiror's plans for the domestic insurer's operations and any anti-competitive results that may arise from the acquisition of control. State insurance laws typically include a rebuttable presumption that such control exists if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing ten percent or more (or, under Alabama law, five percent or more) of the outstanding voting securities of the insurer or its control persons. State regulators may, however, find that control exists in circumstances in which a person owns or controls less than such percentage of the voting securities.

Such requirements would apply to any proposed acquisition of control of Safepoint Holdings under Florida and Alabama law. Accordingly, the acquisition of such percentage or more of our common stock would be considered a change of control of Safepoint Holdings and would trigger the applicable change of control filing requirements under state insurance laws and regulations (absent approved disclaimer of control filings). These requirements may discourage potential acquisition proposals and may delay, deter or prevent a change of control of us, including through transactions that some or all of our stockholders might consider to be desirable.

*Enterprise Risk* 

State insurance holding company laws, including those of Florida and Alabama, require the ultimate controlling person of a U.S. insurer or a U.S. reciprocal insurer through its attorney-in-fact, to file an annual enterprise risk report with the lead state regulator of the insurance holding company system. The report must identify the material risks within the insurance holding company system that could pose enterprise risk to the insurer (i.e., any activity, circumstance, event or series of events involving one or more affiliates of the insurer which, if not remedied promptly, would likely have a materially adverse effect upon the financial condition or liquidity of the insurer).

------

##### [**Table of Contents**](#toc)
*Group Capital Calculation* 

The NAIC has developed a group capital calculation tool that uses a risk-based capital aggregation methodology for all entities in an insurance holding company system. The goal is to provide U.S. regulators with a method to aggregate the available capital and the minimum capital of each entity in a group in a way that applies to all companies regardless of their structure. The group capital calculation has been adopted by the majority of states, including Alabama and Florida. Because laws implementing the group capital calculation will be an NAIC accreditation standard effective January 1, 2026, we expect this to be broadly adopted.

**Surplus and Capital** 

Insurers must maintain their capital and surplus at or above minimum levels prescribed by the laws of their respective jurisdictions. Regulators generally have discretionary authority to limit or prohibit an insurer's sales to policyholders if the insurer has not maintained minimum surplus or capital or if they find that the further transaction of business would be hazardous to policyholders.

*Risk-Based Capital* 

Risk-based capital laws are designed to assess the minimum amount of capital that an insurance company needs to support its overall business operations and to ensure that it has an acceptably low expectation of becoming financially impaired. State insurance regulators, including the FLOIR and AL DOI, use risk-based capital to set capital requirements by considering the size and degree of risk taken by the insurer and various risk factors relating to the insurer's financial assets and operations. As the ratio of an insurer's total adjusted capital and surplus decreases relative to its calculated risk-based capital target, the risk-based capital laws provide for increasing levels of regulatory intervention ranging in severity from the domiciliary insurance department requiring an insurer to submit a corrective action plan to taking mandatory control of the operations of the insurer. Failure to maintain risk-based capital at the required levels could adversely affect our ability to maintain the regulatory approvals necessary to conduct our business. As of December 31, 2025, the risk-based capital of each of the Carriers was above the calculated risk-based capital target level.

*Dividend Restrictions and Management Fees* 

We are a holding company with no business operations of our own. Consequently, our ability to pay dividends to stockholders and meet our debt payment obligations is largely dependent on dividends and other distributions from Safepoint Insurance. Florida's insurance laws restrict Safepoint Insurance's ability to declare stockholder dividends and require it to maintain specified levels of statutory capital and surplus. Dividend payments are further limited to that part of available policyholder surplus which is derived from net profits on an insurer's business. Insurance regulators have broad powers to prevent reduction of statutory surplus to inadequate levels, and there is no assurance that dividends of the maximum amounts calculated under any applicable formula would be permitted. The FLOIR, which has jurisdiction over the payment of dividends by Safepoint Insurance, may in the future adopt statutory provisions more restrictive than those currently in effect.

We also rely on fees from Cajun and Manatee that are paid to our attorneys-in-fact entities. A reciprocal insurer's payment of management fees to the attorney-in-fact is a type of affiliate transaction that is subject to the prior notice and approval or non-disapproval requirements set forth in the domiciliary state's insurance holding company regulations, as previously noted. Additionally, from time to time these fees may be subject to examination and increased scrutiny by relevant regulators.

------

##### [**Table of Contents**](#toc)
In December 2025, the NAIC approved a Request for NAIC Model Law Development in support of the Reciprocal Exchanges (E) Working Group's charge to clarify that fees charged from a reciprocal insurer's attorney-in-fact are subject to fair and reasonable standards under the Model Holding Company Act and Regulation.

*Investment Regulation* 

Investments by the Carriers are subject to the laws of their domiciliary states (Florida or Alabama, as applicable) which require diversification of insurers' investment portfolios and limit the amount of investments in certain categories. The Carriers must comply with applicable laws and regulations prescribing the kind, quality and concentration of investments. Failure to comply with these laws and regulations would cause non-conforming investments to be treated as non-admitted assets for purposes of measuring statutory surplus (and, therefore, a reduction in statutory surplus) and, in some instances, would require us to sell those investments.

In June 2023, the NAIC increased the RBC factor for structured security residual tranches from 30% to 45%, which became effective for year-end 2024 RBC filings. The NAIC is currently reviewing the RBC treatment of CLOs.

Formed in early 2025, the Risk-Based Capital Model Governance (EX) Task Force is charged with a number of tasks related to the oversight and governance of the RBC framework, and in December 2025 adopted guiding principles which address the purpose and use of, and standards for maintaining and updating, RBC. In 2026, this task force is also undertaking to identify gaps in the RBC framework that could pose a risk to regulators' assessment of solvency, and developing a governance process for retrospective and future adjustments to RBC.

**Risk Management and Own Risk and Solvency Assessment** 

All states have adopted the NAIC's Risk Management and Own Risk and Solvency Assessment Model Act (the "ORSA Model Act"), which requires insurers, including reciprocal insurers, to maintain a risk management framework and regularly, no less than annually, conduct an Own Risk Solvency Assessment. The ORSA Model Act also requires an insurance holding company system's chief risk officer to annually submit to its lead state insurance regulator an Own Risk and Solvency Assessment Summary Report, which is a confidential high-level summary of an insurer or insurance group's Own Risk Solvency Assessment.

**Cybersecurity, Privacy and Information Security Regulation** 

In response to the growing threat of cyber-attacks in the insurance industry, certain jurisdictions have begun to consider new cybersecurity measures, including the adoption of cybersecurity regulations which, among other things, would require insurance companies and reciprocals to establish and maintain an appropriate, risk-based cybersecurity program and implement and maintain cybersecurity policies and procedures. In 2017, the New York Department of Financial Services ("NYDFS") promulgated the New York Cybersecurity Requirements for Financial Services Companies (the "Regulation"), which requires financial services entities under its jurisdiction (such as our insurance entities licensed in New York) to conduct risk assessments of their information systems and maintain a cybersecurity program designed to protect the confidentiality, integrity, and availability of those systems. The Regulation, which was amended in 2023, mandates, among other requirements, the implementation of specific technical safeguards, including multi-factor authentication and minimum standards for cyber-incident responses, designation of a Chief Information Security Officer and other oversight structures, notification to the NYDFS in the event of certain security incidents, and annual certification of compliance to the NYDFS. In 2017, the NAIC adopted the

------

##### [**Table of Contents**](#toc)
Insurance Data Security Model Law (the "Cybersecurity Model Law"), which is intended to serve as model legislation for states to enact in order to govern cybersecurity and data protection practices of insurers and other entities licensed or registered under state insurance laws. The Cybersecurity Model Law establishes standards for data security, the investigation of cybersecurity events involving the unauthorized access to or misuse of certain nonpublic information, and reporting to insurance commissioners. The Cybersecurity Model Law imposes significant regulatory burdens intended to protect the confidentiality, integrity and availability of information systems. Over half of states have adopted the Cybersecurity Model Law, or a form thereof, including Alabama but not Florida. We regularly monitor changes in state laws that relate to and impose obligations on us regarding data security.

In addition, federal and state lawmakers have enacted or are considering laws and regulations related to privacy and data security. For instance, the California Consumer Privacy Act, as amended ("CCPA") requires covered companies to provide disclosures to California consumers about such companies' data collection, use and sharing practices, and gives California residents expanded rights with respect to the processing of their personal information. While a significant portion of our business is exempted from CCPA, other state insurance laws to which we are subject grant similar rights to insureds. The NAIC's Privacy Protections (H) Working Group reviews state insurance privacy protections regarding the collection, use and disclosure of information gathered in connection with insurance transactions. This working group is developing amendments to update the Privacy of Consumer Financial and Health Information Regulation. The proposed amendments would expand the definition of nonpublic personal information; add consumer rights to request access, correction and deletion of nonpublic personal information; and add requirements for contracts with third-party service providers. In December 2025, the working group received an extension until December 31, 2026 to finalize the amendments to the model regulation.

We cannot predict the impact, if any, that any current, proposed or future federal or state cybersecurity or privacy laws or regulations will have on our business, financial condition or results of operations.

**Innovation and Technology** 

As a result of increased innovation and technology in the insurance sector, the NAIC and insurance regulators are focused on the use of "big data" techniques, such as the use of AI, machine learning and automated decision-making. In December 2023, the NAIC's Innovation, Cybersecurity and Technology (H) Committee adopted the Model Bulletin on the Use of Artificial Intelligence Systems by Insurers (the "AI Bulletin"). Approximately 25 states have adopted, and others may adopt, the AI Bulletin, which outlines insurance regulators' expectations as to how insurers should govern the development, acquisition and use of AI technologies, as well as the types of information that regulators may request during an investigation or examination of an insurer in regard to AI systems. The Third-Party Data and Models (H) Working Group is developing a framework for the regulator oversight of insurers' use of third-party data and predictive models. In addition, the NAIC's Big Data and Artificial Intelligence (H) Working Group is evaluating AI-use outcomes and how well the current regulatory framework addresses potential harms from the use of AI. The goal is to develop an overall AI regulatory framework that could be incorporated into an NAIC regulatory handbook. For example, the Working Group is developing a tool to collect information about an insurer's use of AI during an examination or investigation.

------

##### [**Table of Contents**](#toc)
The NAIC and state insurance regulators are also focused on addressing unfair discrimination by insurers in the use of consumer data and technology, and certain states have passed laws or may take action targeting unfair discrimination practices.

We cannot predict whether states will adopt the AI Bulletin, or what, if any, changes to laws or regulations may be enacted with regard to "big data" or AI technologies.

**Underwriting and Marketing Restrictions** 

From time to time, state regulatory and legislative bodies have proposed or adopted laws, regulations or guidance to address the cyclical nature of the insurance industry, catastrophic events and insurance capacity and pricing. Such laws, regulations or guidance may restrict certain policy non-renewals or cancellations, require advance notice on certain policy non-renewals and limit or delay rate changes for a specified period during or after a catastrophe event. Most states, including Florida and Alabama, also have insurance laws and regulations requiring that rate schedules and other information be filed for review by the insurance regulatory authority. Insurance regulatory authorities may generally disapprove a rate filing found to be inadequate, excessive or unfairly discriminatory. Rates, which are not necessarily uniform for all insurers, vary based on many factors including class of business, hazard covered, risk location and size of risk.

Most states, including Florida and Alabama, require licensure or insurance regulatory authority filings or approval prior to entering into a new line of business or marketing new insurance products. Typically, licensure review is comprehensive and includes a review of a company's business plan, solvency, reinsurance, character and experience of its officers and directors, rates, forms and other financial and non-financial aspects of the company. Insurance regulators may prohibit entry into a new market by not granting a license or by withholding approval for an insurer to write new lines of business. The Carriers are subject to comprehensive regulatory oversight to ensure compliance with statutory requirements in order to maintain their licenses.

**Statutory Insurance Organizations** 

Each state in which the Carriers operate has insurance guaranty association laws generally requiring participation of authorized insurers and providing for the payment of policyholders' claims when insurance companies doing business in that state become insolvent. These guaranty associations typically are funded by assets of the failed insurance companies and, where such companies' available funds are insufficient to pay policyholders and claimants the amounts to which they are entitled, by assessments on member insurance companies. Generally, all licensed property casualty insurers are considered to be members of the guaranty fund, and assessments are based on their pro rata share of direct written premiums in that state. When the Carriers are subject to assessments, in some instances they must remit the assessed amounts to the guaranty associations. Our insurance companies subsequently seek to recover the assessed amounts through recoupments from policyholders. In other instances, such insurance companies might be directed to collect assessments by adding a surcharge to their policies and remitting the collected amounts to the guaranty associations. This surcharge approach, which is currently in effect in Florida, does not result in out-of-pocket payments by the insurance company that must be recovered through recoupments. However, in the event the Carriers are required to pay assessments up front and recover those amounts through recoupments, they might not be able to fully recoup the amounts of those assessments. Such unrecovered amounts can be credited against future assessments, or the remaining receivable may be written off. While we cannot predict the amount or timing of future guaranty association assessments, we believe that any such assessments will not have a material effect on our financial position or results of operations.

------

##### [**Table of Contents**](#toc)
Additionally, state insurance laws and regulations require us to participate in mandatory property-liability "shared market," "pooling" or similar arrangements that provide certain types of insurance coverage to individuals or others who otherwise are unable to purchase coverage voluntarily provided by private insurers. Shared market mechanisms include assigned risk plans and fair access to insurance requirement or "FAIR" plans. In addition, some states require insurers to participate in reinsurance pools for claims that exceed specified amounts. Our participation in these mandatory shared market or pooling mechanisms generally is related to the amount of our direct writings for the type of coverage written by the specific mechanism in the applicable state*.*

**Federal Regulation** 

Although the U.S. federal government generally does not directly regulate the business of insurance, federal initiatives affect the insurance industry in a variety of ways. The U.S. federal government's oversight of the insurance industry was expanded under the Dodd-Frank Act.

The Dodd-Frank Act established the Federal Insurance Office (the "FIO") within the U.S. Department of the Treasury (the "Treasury"). Although the FIO does not have general supervisory or regulatory authority over the business of insurance, it has preemption authority over state insurance laws that conflict with certain international agreements, as discussed below. The FIO also has authority to monitor all aspects of the insurance sector and the extent to which traditionally underserved communities and consumers have access to affordable non-health insurance products, and to represent the United States on prudential aspects of international insurance matters, including at the International Association of Insurance Supervisors.

The Dodd-Frank Act authorizes the Treasury and the Office of the U.S. Trade Representative to enter into international agreements of mutual recognition regarding the prudential regulation of insurance or reinsurance. The United States entered into such covered agreements with the European Union in September 2017 (the "EU Covered Agreement") and with the United Kingdom in December 2018 (the "UK Covered Agreement," together with the EU Covered Agreement, the "Covered Agreements"). The Covered Agreements address three areas of prudential supervision: reinsurance, group supervision and the exchange of information. Issues relating to the Covered Agreements are discussed further under "Credit for Reinsurance" below.

Although the potential impact of any future amendments to the Dodd-Frank Act on the U.S. insurance industry is not clear, our business could be affected by changes to the U.S. system of insurance regulation or our designation or the designation of insurers or reinsurers with which we do business as non-bank SIFIs.

------

##### [**Table of Contents**](#toc)
In addition, a number of federal laws and regulations affect and apply to the insurance industry, including various privacy laws and the economic and trade sanctions implemented by the Office of Foreign Assets Control ("OFAC") of the Treasury. OFAC maintains and enforces economic sanctions against certain foreign countries and groups and prohibits U.S. persons from engaging in certain transactions with certain individuals or entities. OFAC has imposed civil penalties on persons, including insurance companies, arising from violations of its economic sanctions programs.

**Trade & Claims Practices** 

State insurance laws and regulations include numerous provisions governing trade practices and the marketplace activities of insurance companies and producers, including provisions governing marketing and sales practices, policyholder services, claims management and complaint handling. Such laws and regulations generally prohibit practices that constitute unfair methods of competition or unfair or deceptive acts or practices, dissemination of false information or advertising and unfair discrimination.

We set business conduct policies to make our employee-agents and other sales personnel aware of these prohibitions, and we require them to conduct their activities in compliance with these laws and regulations.

**Quarterly and Annual Financial Reporting** 

The Carriers are required to file quarterly and annual financial reports with insurance regulators in states where they write business, using statutory accounting practices (SAP) rather than generally accepted accounting principles (GAAP). In keeping with the intent to protect policyholders, SAP emphasizes solvency considerations. For a summary of the SAP capital and surplus and net income (loss) relating to the Carriers, see *Note 19–Statutory Reporting* to our consolidated financial statements included in this prospectus.

**Credit for Reinsurance** 

State insurance laws permit U.S. insurance companies, as ceding insurers, to take financial statement credit for business that is ceded, so long as the assuming reinsurer satisfies the state's credit for reinsurance laws. There are several ways that an assuming reinsurer may satisfy the credit for reinsurance laws, including by being licensed in the state, being accredited in the state or maintaining certain types of qualifying collateral.

Under the Dodd-Frank Act, the FIO has preemption authority over state insurance laws that conflict with the Covered Agreements as of September 1, 2022, such as state credit for reinsurance laws that result in non-U.S. reinsurers subject to the Covered Agreements being treated less favorably than U.S. reinsurers. The NAIC previously adopted amendments to its Credit for Reinsurance Model Law and the Credit for Reinsurance Model Regulation (together, the "Credit for Reinsurance Model Law and Regulation") to satisfy the substantive and timing requirements of the Covered Agreements, which amendments have been enacted by all states. On September 30, 2023, the FIO reported that it did not recommend taking any preemption action as a result of inconsistency between the Covered Agreements and state credit for reinsurance laws and that it continues monitoring state measures to ensure consistency with the Covered Agreements. Under the Covered Agreements, reinsurance collateral requirements no longer apply to qualifying EU and U.K. reinsurers. The amended Credit for Reinsurance Model Law and Regulation also extend the zero reinsurance collateral provisions in the Covered Agreements to qualified reinsurers domiciled in U.S. jurisdictions that are accredited by the

------

##### [**Table of Contents**](#toc)
NAIC and to non-U.S. jurisdictions that have not entered into a covered agreement with the United States but which the NAIC has identified as "reciprocal jurisdictions" pursuant to the NAIC Qualified Jurisdiction Process.

We ensure that our material reinsurers qualify in order for us to be able to take full financial statement credit for reinsurance. We cannot currently predict the impact of these changes to the law or whether any other covered agreements will be successfully adopted, and cannot currently estimate the impact of these changes to the law and any such adopted covered agreements on our business, financial condition or operating results.

**Examinations** 

As part of their regulatory oversight process, state insurance departments conduct periodic financial examinations of the books, records, accounts and operations of insurance companies that are authorized to transact business in their states. In general, insurance regulatory authorities defer in this regard to an insurer's domestic regulator; however, insurance regulatory authorities in any state in which we operate may conduct examinations at their discretion. Under Florida law, financial examinations are generally performed every five years, although the FLOIR or other states may conduct limited or full scope reviews more frequently. FLOIR most recently performed an examination of Safepoint Insurance in 2024. In addition, the state insurance regulatory authorities in states in which we operate from time to time make inquiries, conduct investigations and administer market conduct examinations with respect to compliance by the Carriers with applicable insurance laws and regulations. These inquiries or examinations may address, among other things, an insurer's financial condition, relationships and transactions with affiliates, the form and content of disclosures to consumers, advertising, sales practices, underwriting and claims practices, cancellation and nonrenewal procedures and complaint handling. The reports arising from insurance authorities' examination processes typically are available to the public at the conclusion of the examinations. In addition, insurance companies and other companies are subject to other types of audits, examinations or other similar inquiries by governmental authorities based on the nature of the business they conduct. The results of these examinations can give rise to regulatory orders requiring remedial, injunctive or other corrective action. Insurance regulatory authorities have broad administrative powers to regulate trade practices and to restrict or revoke licenses to transact business and to levy fines and monetary penalties against insurers and insurance agents and brokers found to be in violation of applicable laws and regulations.

**Climate Change and Financial Risks** 

The NAIC and state insurance regulators continue to evaluate issues related to the management of climate risk. In 2022, the NAIC adopted a new standard for insurance companies to report their climate-related risks as part of its annual Climate Risk Disclosure Survey, which applies to insurers that meet the reporting threshold of $100 million in U.S. direct premium and are licensed in one of the participating jurisdictions. The standard is consistent with the international Task Force on Climate-Related Financial Disclosures' framework for reporting climate-related financial information.

In addition, pursuant to the FIO's statutory authority under the Dodd-Frank Act, as discussed above under "Federal Regulation," in June 2023, the FIO released a report titled *Insurance Supervision and Regulation of Climate-Related Risks* urging insurance regulators to adopt climate-related risk-monitoring guidance in order to enhance their regulation and supervision of insurers.

------

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

**Executive Officers and Directors** 

Set forth below is certain biographical and other information regarding our executive officers and directors as of the date of this prospectus.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
|  David M. Flitman | 55 | Director, Chief Executive Officer and Chair of the Board |
|  Steven M. Hoffman | 44 | Director, Chief Financial Officer |
|  Jennifer Cotugno | 44 | Chief Claims Officer and General Counsel |
|  Gus Fernandez | 67 | Chief Underwriting Officer |
|  William M. Arowood | 63 | Director |
|  Jim Donelon | 81 | Lead Independent Director |
|  Donald Rhomberg | 60 | Director |
|  Ben Rosenblum | 52 | Director |
|  Amy Usiak | 49 | Director |

---

The following are brief biographies describing the backgrounds of our executive officers and directors.

**Executive Officers** 

***David M. Flitman*** has served as Safepoint's Chief Executive Officer and a director since its founding in 2013. He has served on the board of Safepoint Holdings since 2015. Mr. Flitman has 30 years of experience in the insurance and reinsurance industries. His credentials include Fellow of Casualty Actuarial Society (FCAS) and Member of the American Academy of Actuaries (MAAA). Mr. Flitman began his career as an analyst at Insurance Service Office (ISO) from 1993 to 1996, followed by several roles from 1996 to 2001 at WR Berkley Group, including Assistant Vice President and Chief Actuary of Berkley Mid-Atlantic Group. In 2001, Mr. Flitman began a career in reinsurance, joining XL Reinsurance America and ACE Tempest Re USA. In 2004, Mr. Flitman transferred to Bermuda, serving as Chief Actuary of Tempest Re Bermuda followed by several roles at Flagstone Re (from 2006 through 2012), including Chief Actuary and Executive Director of Global Property Underwriting.

***Steven M. Hoffman*** joined Safepoint in June of 2014 as Controller and was promoted to Chief Financial Officer in June 2019. Mr. Hoffman has served as a director of Safepoint Holdings since 2023. Mr. Hoffman is a Certified Public Accountant and began his career in public accounting with PwC. After holding the position of Revenue Manager for a software company in New York City, in 2005 Mr. Hoffman moved to Florida, where he worked for MetLife on the Sarbanes-Oxley team responsible for the design, implementation, and compliance of the company's internal control over financial reporting. Mr. Hoffman spent four years as the Assistant Controller of HCI Group, a publicly traded property and casualty insurance company located in Tampa.

***Jennifer Cotugno*** joined Safepoint in 2016 as a staff attorney and was promoted to Corporate Counsel in November 2020. Ms. Cotugno oversees the legal team and external counsel in all aspects of Safepoint's property and casualty litigation activities. In 2021, Ms. Cotugno took on increased leadership responsibility as the Chief Claims Officer at Safepoint, building a highly capable team of in-house and field-based claims personnel. Prior to

------

##### [**Table of Contents**](#toc)
joining Safepoint, Ms. Cotugno was an in-house attorney for HCI Group, a litigator at the law firm of Beighley, Myrick & Udell, P.A., and a prosecutor at the Miami-Dade State's Attorney's office. Ms. Cotugno has been licensed to practice law in Florida since 2007 and in Louisiana since 2010.

***Gus Fernandez*** joined Safepoint in 2015 and was promoted to Safepoint's Chief Underwriting Officer in April 2016. Mr. Fernandez has over 40 years of property and casualty insurance experience. He started his insurance career at a Miami-based managing general agency specializing in personal and commercial lines products. In 1983, he joined National Insurance Company and established regional company offices in Florida managing the day-to-day operations, product development, and marketing. In 1993, he joined AIB Financial Group in his role as Vice President of Residual Lines where he led the launch and expansion of their Joint Underwriting Association & Citizens Division as well as initiated the company's "Write Your Own" Flood Operations. He served on the Board of Directors of Florida Windstorm Underwriting Association and is a past Chairman of the Florida Automobile Joint Underwriting Association. In 2003, Mr. Fernandez joined the MacNeill Group as Vice President and launched operations for multiple Florida start-up companies. While at MacNeill, Mr. Fernandez assisted in the establishment of Safepoint.

**Non-Employee Directors** 

***William M. Arowood*** has served as a director of Safepoint Holdings since August 2023. Mr. Arowood has over 40 years of experience in the insurance business. He has been involved in the retail insurance business as an officer of Madison Insurance Group, Inc. along with being an officer of Accident Insurance Company, Inc. and INVO PEO, Inc. In 1996, Mr. Arowood and his brother Robert Arowood founded Appalachian Underwriters, Inc. as a managing general agent and wholesale company that was acquired in December 2021 by Acrisure. Mr. Arowood served as Board Member of Appalachian Underwriters, Inc. from January 1996 to December 2021. He continues to serve as an officer of various insurance and professional employment organizations.

***Jim Donelon*** has served as a contract consultant to the Company since 2024. He has served as a director of the Company since 2026. He previously served as Commissioner of Insurance for the State of Louisiana from 2006-2024, making him the longest-serving Commissioner of Insurance in the state's history. In his position as President of the National Association of Insurance Commissioners (NAIC) in 2013, he became a respected and valued voice in insurance discussions nationwide and guided Louisiana through a number of deadly disasters, ranging from Hurricanes Katrina, Rita, Gustav, Ike, Isaac, Laura, Delta, Zeta and Ida as well as the COVID-19 pandemic. He was also a member of the NAIC Executive Committee from 2011-2024, he chaired the NAIC Surplus Lines Task Force from 2006-2024 and was Chair of the Southeast Zone and Chair of the Receivership Task Force in 2023. On a national basis, Mr. Donelon advises insurance companies, agencies, producers, and other industry participants on a wide range of corporate, operational and regulatory concerns. Through his decades of policy making and regulation of insurance, he has seen the industry adapt and respond to market changes stemming from the environment, social climate, and healthcare. As the industry continues to evolve, he has a unique perspective about the impact of insurance matters. He received his J.D. from Loyola University New Orleans College of Law.

***Donald Rhomberg*** has served as a director of Safepoint Insurance since the Company's founding in 2013 and as a director of Safepoint Holdings since its incorporation in 2015. Mr. Rhomberg began his insurance career at the Prudential Insurance office in North Tampa, becoming licensed in life and health (218), property and casualty (220) and the Series 6 and 65 for financial services and annuities. Mr. Rhomberg joined Jaffe Tilchin Wealth Management in

------

##### [**Table of Contents**](#toc)
2000, and his clients sought him out for his well-rounded approach to insurance coverage and eye towards the bottom line. Mr. Rhomberg is a member of the Life Underwriting Council (LUC), the Florida Association of Insurance Agents (FAIA), and the Tampa Association of Financial Underwriters (TAFU). Mr. Rhomberg left Jaffe Tilchin in 2024 and is now President of Nsurehub, a future-focused insurance agency recently spun-out of Safepoint Holdings.

***Ben Rosenblum*** has served as a director of Safepoint Holdings since 2014. Mr. Rosenblum graduated from the College of Insurance (now the St John's School of Risk Management) in 1994 with a B.S. in Actuarial Science. He worked for two years at Insurance Services Office primarily on their auto insurance and homeowners rating plans. In 1996, he moved to Centre Solution to create Centre's actuarial systems. Upon completion of their reserving systems, he was asked to take a full-time position in their reserving group coordinating the reserving process. In that role, he coordinated the calculation and reporting of $8 billion of loss reserves. Additionally, he assumed responsibility for calculating the loss reserves for many transactions across different lines of business. Over time he also worked out under-performing deals, negotiated the pricing of commutations. In 2004, Mr. Rosenblum joined Assured Guaranty (NYSE: AGO) to run their loss reserving process, help with their capital modeling and underwrite and model structured credit business. Mr. Rosenblum served as Assured Guaranty's Chief Actuary from 2021 through 2023, and since January 2024 has served as Chief Financial Officer of Assured Guaranty. During Mr. Rosenblum's time at Assured Guaranty, he has been involved in many of its major strategic initiatives including: Leading the sale of its asset management division, the acquisition of other legacy monolines, underwriting structured insurance transactions, working out troubled credits and the analysis of many of its strategic investments. He is a fellow of the Casualty Actuarial Society and a member of the American Academy of Actuaries.

***Amy Usiak*** has served as a director of Safepoint Holdings since 2024. Ms. Usiak is a communications professional with more than 20 years of comprehensive corporate communications and marketing experience. Ms. Usiak advises the board and management team on marketing, brand management, and internal and external communications strategies. She is the Vice President of Marketing and Communications at United Way of Buffalo and Erie County and a member of the Executive Team. She is responsible for developing and implementing comprehensive marketing and communications strategies that advance United Way's mission, enhance its brand visibility, drive fundraising efforts, and engage key stakeholders. Prior to her current role, Ms. Usiak served as the Senior Director of Marketing and Communications for Evergreen Health, where she served as a member of the management team and directed all marketing and communications activities. She was responsible for the creation of Evergreen's Corporate Communications Department and is a proven leader in maturing an organization's communications capabilities and capacity. Her previous roles include serving as the Senior Account Coordinator at Independent Health, a not-for-profit health plan that serves the eight counties of Western New York with 400,000 members. Other previous roles provided Ms. Usiak with a strong foundation to advise Safepoint Insurance on all aspects of strategic communications, integrated marketing, and internal messaging to promote organizational alignment. Ms. Usiak also brings previous board experience from her membership on the board of the Lumber City Development Corporation (2021-present) and as a member of Leadership Buffalo's 2023 cohort.

**Board Composition** 

Our bylaws provide that our Board of Directors shall be fixed from time to time by resolution of our Board of Directors. Currently our Board of Directors consists of eight members.

In accordance with our Certificate of Incorporation, our Board of Directors is divided into three classes with staggered three-year terms. At each annual meeting of stockholders after the

------

##### [**Table of Contents**](#toc)
initial classification, the successors to the directors whose terms will then expire will be elected to serve from the time of election and qualification until the third annual meeting following their election. Our directors are divided among the three classes as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Class I directors are Messrs. Flitman and Ms. Usiak, and their terms will expire at the annual meeting
of stockholders to be held in 2027;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Class II directors are Messrs. Hoffman and Rosenblum, and their terms will expire at the annual meeting of
stockholders to be held in 2028; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Class III directors are Messrs. Arowood, Donelon and Rhomberg, and their terms will expire at the annual
meeting of stockholders to be held in 2029.

Any increase or decrease in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the directors. This classification of our Board of Directors may have the effect of delaying or preventing changes in control of our company.

Our Board of Directors has determined that Messrs. Arowood, Rosenblum, Donelon and Ms. Usiak are independent directors. In making this determination, our Board of Directors applied the standards set forth in the NYSE Rules and in Rule 10A-3 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). In evaluating the independence of Messrs. Arowood, Rosenblum, Donelon and Ms. Usiak, our Board of Directors considered their current and historical employment, any compensation we have given to them, any transactions we have with them, their beneficial ownership of our capital stock, their ability to exert control over us, all other material relationships they have had with us and the same facts with respect to their immediate family. The Board of Directors also considered all other relevant facts and circumstances known to it in making this independence determination. In addition, Messrs. Arowood, Rhomberg, Rosenblum, Donelon and Ms. Usiak are non-employee directors, as defined in Rule 16b-3 of the Exchange Act.

Our Board of Directors has adopted corporate governance guidelines that provide that one of our independent directors should serve as our Lead Independent Director if the Chair is not an independent director. Our Board of Directors has appointed Jim Donelon to serve as our Lead Independent Director. As Lead Independent Director, Jim Donelon may (i) serve as a liaison between the Company's management and independent directors, (ii) facilitate discussion and open dialogue among the independent directors during Board meetings, executive sessions and outside of Board meetings, (iii) preside at executive sessions and calling meetings of the independent directors, (iv) work with the Chair to develop and approve Board meeting agendas, materials and schedules, including to ensure that there is sufficient time for discussion of all agenda items, and (v) ensure availability for consultation and direct communication with significant stockholders of the Company, if requested and in coordination with management.

**Board Leadership Structure** 

Our Board of Directors recognizes that one of its key responsibilities is to evaluate and determine its optimal leadership structure so as to provide effective oversight of management. Our bylaws and corporate governance guidelines will provide our Board of Directors with flexibility to combine or separate the positions of Chair of the Board and Chief Executive Officer. Our Board of Directors currently believes that our existing leadership structure, under which David Flitman serves as our chief executive officer and Chair of the Board, is effective, and achieves the optimal governance model for us and for our stockholders.

------

##### [**Table of Contents**](#toc)
**Board Oversight of Risk** 

Although management is responsible for the day-to-day management of the risks our company faces, our Board of Directors and its committees take an active role in overseeing management of our risks and have the ultimate responsibility for the oversight of risk management. The Board of Directors regularly reviews information regarding our operational, financial, legal and strategic risks. Specifically, senior management attends quarterly meetings of the Board of Directors, provides presentations on operations including significant risks, and is available to address any questions or concerns raised by our Board of Directors.

In addition, we expect that our committees will assist the Board of Directors in fulfilling its oversight responsibilities regarding risk. The audit committee will coordinate the Board of Director's oversight of our internal control over financial reporting, disclosure controls and procedures, related party transactions and code of conduct and corporate governance guidelines and management will regularly report to the audit committee on these areas. The compensation committee will assist the Board of Directors in fulfilling its oversight responsibilities with respect to the management of risks arising from our compensation policies and programs as well as succession planning as it relates to our Chief Executive Officer. The nominating and corporate governance committee will assist the Board of Directors in fulfilling its oversight responsibilities with respect to the management of risks associated with board organization, membership and structure, succession planning for our directors and corporate governance. When any of the committees receives a report related to material risk oversight, the chairman of the relevant committee will report on the discussion to the full Board of Directors.

**Code of Business Conduct and Ethics** 

We anticipate adopting an amended code of business conduct and ethics, effective immediately prior to the completion of this offering, which will apply to all of our employees, officers and directors, including those officers responsible for financial reporting. Following its completion, the code of business conduct and ethics will be available on our website at www.safepointins.com. We intend to disclose any amendments to the code, or any waivers of its requirements, on our website to the extent required by the applicable rules and exchange requirements. The inclusion of our website address in this prospectus does not incorporate by reference the information on or accessible through our website into this prospectus.

**Board Committees** 

Our Board of Directors has established the following committees: an Audit Committee, a Compensation Committee and a Nominating and Corporate Governance Committee. The anticipated composition and responsibilities of each committee are described below. Members will serve on these committees until their resignation or until otherwise determined by our Board of Directors.

*Audit Committee* 

Our audit committee oversees our corporate accounting and financial reporting process. Among other matters, the audit committee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• appoints our independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluates the independent registered public accounting firm's qualifications, independence and performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• determines the engagement of the independent registered public accounting firm;

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviews and approves the scope of the annual audit and the audit fee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discusses with management and the independent registered public accounting firm the results of the annual audit and the
review of our quarterly financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approves the retention of the independent registered public accounting firm to perform any proposed permissible non-audit
services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• monitors the rotation of partners of the independent registered public accounting firm on our engagement team in accordance
with requirements established by the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviews our financial statements and our management's discussion and analysis of financial condition and results of
operations to be included in our annual and quarterly reports to be filed with the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviews our critical accounting policies and estimates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviews the audit committee charter and the committee's performance at least annually.

The members of our audit committee are Messrs. Rosenblum (Chair), Donelon, and Ms. Usiak. All members of our audit committee meet the requirements for financial literacy under the applicable rules and regulations of the SEC and the NYSE. Our Board of Directors has determined that Mr. Rosenblum is an audit committee financial expert as defined under the applicable rules of the SEC and has the requisite financial sophistication as defined under the applicable rules and regulations of the NYSE. Under the rules of the SEC, members of the audit committee must also meet heightened independence standards. However, a minority of the members of the audit committee may be exempt from the heightened audit committee independence standards for one year from the date of effectiveness of the registration statement of which this prospectus forms a part. Our Board of Directors has determined that each of Messrs. Rosenblum, Donelon and Ms. Usiak are independent under the heightened audit committee independence standards of the SEC and the NYSE. As allowed under the applicable rules and regulations of the SEC and the NYSE, we intend to phase in compliance with the heightened audit committee independence requirements to have a fully independent audit committee prior to the end of the one-year transition period. The audit committee operates under a written charter that satisfies the applicable standards of the SEC and the applicable NYSE rules.

*Compensation Committee* 

Our compensation committee reviews and recommends policies relating to compensation and benefits of our officers and employees. Among other matters, the compensation committee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviews, modifies and approves (or, if it deems appropriate, makes recommendations to our board of directors regarding)
corporate goals and objectives relevant to compensation of our Chief Executive Officer and other executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluates the performance of these officers in light of those goals and objectives and determines and approves (or, if it
deems appropriate, recommends to our board of directors for determination and approval) the compensation of these officers based on such evaluations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviews, and for our executive officers, approves, (or, if it deems appropriate, recommends to our board of directors for
determination and approval) the issuance of awards under our stock plans; and

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviews and evaluates, at least annually, the performance of the compensation committee and its members, including
compliance by the compensation committee with its charter.

The members of our compensation committee are Ms. Usiak (Chair), Mr. Donelon and Mr. Arowood. Each of the members of our Compensation Committee is a "non-employee director" as defined in Rule 16b-3 promulgated under the Exchange Act. Messrs. Donelon and Arowood, and Ms. Usiak are each an "outside director" as that term is defined in Section 162(m) of the Internal Revenue Code of 1986, as amended, or Section 162(m). The compensation committee operates under a written charter that satisfies the applicable standards of the SEC and the NYSE.

*Nominating and Corporate Governance Committee* 

The principal duties and responsibilities of the Nominating and Corporate Governance Committee are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to identify candidates qualified to become directors, consistent with criteria approved by our Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to recommend to our Board of Directors nominees for election as directors at the next annual meeting of stockholders or a
special meeting of stockholders at which directors are to be elected, as well as to recommend directors to serve on the other committees of the Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to recommend to our Board of Directors candidates to fill vacancies and newly created directorships on the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to identify best practices and recommend corporate governance principles, including giving proper attention and making
effective responses to stockholder concerns regarding corporate governance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to develop and recommend to our Board of Directors guidelines setting forth corporate governance principles; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to oversee the evaluation of our Board of Directors and senior management.

The members of our Nominating and Corporate Governance Committee are Messrs. Donelon (Chair), Arowood and Ms. Usiak. The members of our Nominating and Corporate Governance Committee meet the independence requirements under NYSE and SEC rules.

**Compensation Committee Interlocks and Insider Participation** 

None of the expected members of our compensation committee has at any time been one of our officers or employees. None of our executive officers currently serves, or in the past fiscal year has served, as a member of the board of directors or compensation committee of any entity that has one or more executive officers on our Board or compensation committee.

------

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

*The discussion in this section contains forward-looking statements that are based on our current considerations and expectations relating to our executive compensation programs. As our business and our needs evolve, the actual amount and form of compensation and the compensation programs that we adopt may differ materially from current or planned programs as summarized in this section. The following discussion may also contain statements regarding corporate performance targets and goals. These targets and goals are disclosed in the limited context of our compensation programs and should not be understood to be statements of management's expectations or estimates of future results or other guidance. We specifically caution investors not to apply these statements to other contexts.* 

**Compensation of Named Executive Officers** 

The following table sets forth information regarding the compensation awarded to, earned by, or paid to certain of the executive officers of Safepoint Holdings, Inc., or the Company, during the fiscal year ended December 31, 2025. As an emerging growth company, the Company has opted to comply with the executive compensation disclosure rules applicable to "smaller reporting companies" as such term is defined in the rules promulgated under the Securities Act, which require compensation disclosure for its principal executive officer and its two other most highly compensated executive officers. Throughout this registration statement, these three officers are referred to as the Company's "named executive officers."

The compensation reported in this summary compensation table below is not necessarily indicative of how the Company will compensate its named executive officers in the future. The Company expects that it will continue to review, evaluate and modify its compensation framework as a result of becoming a publicly traded company, and the Company's compensation program following the completion of this offering could vary significantly from its historical practices.

We continue to finalize our review of the Company's compensation disclosure, and will complete the relevant missing information in a subsequent filing.

**Summary Compensation Table** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal<br>Position** | **Fiscal Year<br>(1)** | **Salary<br>($)(2)** | **Bonus**<br>**($)(3)** | **Option Awards<br>($)(4)** | **All Other Compensation<br>($)(5)** | **Total<br>($)** |
|  David Flitman | 2025 | 691615 | 955710 | 10845667 | 10500 | 12503492 |
|  *Chief Executive Officer* |  |  |  |  |  |  |
|  Steven Hoffman | 2025 | 389423 | 537338 | 4338134 | 10500 | 5275394 |
|  *Chief Financial Officer* |  |  |  |  |  |  |
|  Gustavo Fernandez | 2025 | 300000 | 320529 | 2169067 | 10500 | 2800096 |
|  *Chief Underwriting Officer* |  |  |  |  |  |  |

---

(1) The Company's fiscal year ends on December 31.

(2) The amounts reported as earned in this column include payments for unused paid time off equal to (i) for Mr. Flitman,
$25,615, and (ii) for Mr. Hoffman, $14,423.

(3) The amounts reported as earned in this column include the discretionary bonuses earned with respect to the fiscal year
ended December 31, 2025 by each named executive officer pursuant to their respective employment agreements equal to (i) for Mr. Flitman, $666,000, (ii) for Mr. Hoffman, $375,000, and (iii) for Mr. Fernandez, $225,000. These
amounts were paid on January , 2026. For additional information, please see "— *Narrative to Summary Compensation Table* — *Annual Bonuses*" below. In addition, the amounts reported as earned in this column also
include payments pursuant to the long-term incentive cash awards held by each named executive

------

##### [**Table of Contents**](#toc)
officer granted on December 31, 2024 and which each vested as to 33.3% on December 31, 2025 in the following amounts: (i) for Mr. Flitman, $289,710, (ii) for Mr. Hoffman, $162,338, and (iii) for Mr. Fernandez, $95,529. For additional information, please see "—*Narrative to Summary Compensation Table*—*Long-Term Incentive Awards*" below. <br>

(4) The amounts reported in this column reflect the aggregate grant date fair value of Options granted to each named executive
officer during the fiscal year ended December 31, 2025, in accordance with FASB ASC 718, and do not correspond to the actual value that might be realized by the named executive officers, which depends on the market value of the Company's
common stock on a date in the future when the Options are exercised. The option awards reported in this column were granted on December 15, 2025. Each option award vests in equal annual installments over four years, subject to the applicable named
executive officer's continued employment through each vesting date and each option had a strike price equal to 180% to 403% times the fair market value of the underlying shares as of the date of grant, as further described in our
"Outstanding Equity-Based Awards at Fiscal Year End" table below. As a result, the equity value of the Company would have to increase by 180% to 403% times the equity value of the Company as of the date the Options were granted before
any of the Options would be "in-the-money" (requiring our executives to deliver a significant return to investors before the executives can benefit from their Options). The grant date fair value for such awards is consistent with our
estimate of the aggregate compensation cost to be recognized over the vesting period. For additional information, including a discussion of the assumptions used to calculate these values, please see "—Narrative to Summary Compensation
Table—Option Awards" below and note to our consolidated financial statements.

(5) The amounts reported as earned by each executive in this column include $10,500 of employer contributions made to our
401(k) plan.

***Narrative to Summary Compensation Table***

*Executive Employment Agreements* 

Certain of the compensation paid to our named executive officers reflected in the summary compensation table was provided pursuant to employment agreements with the Company, which are summarized below. For a discussion of the severance pay and other benefits to be provided to the Company's named executive officers in connection with a termination of employment and/or a change in control under arrangements with each of the Company's named executive officers, please see "—*Potential Payments Upon Termination or Change in Control*" below.

We generally review the base salaries of our executive officers at the end of each fiscal year and consider and implement any merit or cost of living increases to such base salaries with effect on January 1 of the next fiscal year. Effective as of January 1, 2025, each named executive officer's base salary was increased from $580,000, $325,000 and $255,000 for each of Messrs. Flitman, Hoffman and Fernandez, respectively to $666,000, $375,000 and $300,000, respectively. Effective as of January 1, 2026, in connection with our annual merit increases, each named executive officer's base salary was increased from $666,000, $375,000 and $300,000, for each of Messrs. Flitman, Hoffman and Fernandez, to $875,000, $475,000 and $375,000 respectively.

Further, each executive is eligible to earn a discretionary annual bonus, determined by our board of directors (or, if applicable, its compensation committee), based on its assessment of Company and individual performance, following consultation with our Chief Executive Officer and Chief Financial Officer, subject to the executive's continued employment through the applicable payment date. Each of our named executive officers is eligible to earn a target annual bonus equal to 100% of base salary for Messrs. Flitman and Hoffman and 75% of base salary for Mr. Fernandez.

Each of Messrs. Flitman, Hoffman and Fernandez are party to an employment agreement memorializing the terms of the executive's employment with the Company, in each case, which provided for an indefinite term. Each such employment agreement subjects the executive to an indefinite confidentiality provision and an invention assignment provision and to non-competition and non-interference covenants (while employed and for twenty-four (24) months thereafter with respect to Messrs. Flitman and Hoffman, and while employed and for twelve (12) months

------

##### [**Table of Contents**](#toc)
thereafter for Mr. Fernandez). Our named executive officers will also be entitled to participate in health, insurance, retirement and other benefits that are provided to other similarly situated employees of the Company.

For a discussion of the severance pay and other benefits to be provided in connection with a termination of employment under the employment arrangements at or following this offering, please see "— *Potential Payments Upon Termination or Change in Control*" below.

*Annual Bonuses* 

Bonuses payable to the Company's named executive officers in respect of service during the fiscal year ended December 31, 2025 were paid on December 17, 2025 and were determined based on our board of directors' assessment of the Company's and each individual's performance. After a review of our performance following the close of each fiscal year, our Chief Executive Officer and Chief Financial Officer make a recommendation to our board of directors regarding the bonus amounts that should be paid to our executive officers. The board of directors considers such recommendations and makes the final determination regarding the actual value of the bonuses that will be paid to our executive officers. For the fiscal year ended December 31, 2025, based on our board of directors' assessment of Company and personal performance, the bonus for each of Messrs. Flitman, Hoffman and Fernandez was equal to $666,000, $375,000 and $225,000, respectively.

*Long-Term Incentive Awards* 

On December 31, 2024, each named executive officer was granted a long-term incentive cash award, or the Cash LTIP Awards, in amounts equal to $870,000, $487,500 and $286,875 for each of Messrs. Flitman, Hoffman and Fernandez, respectively. The Cash LTIP Awards each vest over three years in equal annual installments on each of December 31, 2025, December 31, 2026 and December 31, 2027, subject to continued employment through each vesting date (except that upon a named executive officer's death, any unvested portion of the Cash LTIP Award will immediately vest).

*Option Awards* 

On December 15, 2025, the Company granted Options to purchase shares of the Company's common stock to each named executive officer at a fixed exercise price for a period of up to ten years. The Options are eligible to vest ratably over four years, with one-fourth of the Options eligible to vest on each of the first, second, third and fourth anniversaries of the grant date, subject to continued employment through each such vesting date. The Option awards were issued with four tiers of premium exercise prices, ranging from approximately 180% to 403% of the fair market value of a share of the Company's common stock on the date the Options were granted. As a result, shares subject to each award will have a positive value only if the Company achieves the value threshold associated with the applicable premium exercise price, requiring our executives to deliver a significant return to investors before the executives can benefit from their Options. The Company believes that premium-priced Options strongly support our objective of ensuring that pay is aligned with increasing shareholder value and encouraging stock ownership, while also fostering retention. At each vesting date, each tranche of Options that vest are to be allocated equally across the four exercise price tiers.

*Health and Welfare Plans* 

The Company's named executive officers are eligible to participate in its employee benefit plans, including its medical, dental, vision, life, disability, health and dependent care flexible spending accounts and accidental death and dismemberment benefit plans, in each case, on the same basis as all of its other employees.

------

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

The Company sponsors a retirement plan intended to qualify for favorable tax treatment under Section 401(k) of the Internal Revenue Code of 1986, as amended, or the Code, containing a cash or deferred feature that is intended to meet the requirements of Section 401(k) of the Code, for the benefit of its employees, including the named executive officers. Our retirement plan currently provides for employer contributions to all participating employees equal to 3% of compensation plus an additional discretionary profit-sharing contribution of up to 3% of compensation. All employer contributions are immediately vested.

*Clawback Policy* 

In connection with this offering, the Company will adopt a clawback policy designed to recoup any erroneously awarded compensation resulting from certain accounting restatements. If the Company is required to prepare an accounting restatement because of either (i) the material noncompliance of the Company with any financial reporting requirement under the securities laws, including any required accounting restatement to correct an error in previously issued financial restatements that is material to the previously issued financial statements, or (ii) an error that is not material to previously issued financial statements, but would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period, then all incentive compensation paid or credited to each current or former executive officer for the restated period (up to three years) will be recalculated based on the restated results. To the extent the recalculated incentive compensation is less than the incentive compensation actually paid or credited to such executive officer for that period, the excess amount must be forfeited or returned to the Company.

In the event of an executive officer's failure to repay any erroneously awarded compensation due under the clawback policy, the Company would enforce the clawback policy and pursue other remedies to the fullest extent permitted by law, unless certain conditions are met and the compensation committee determines that recovery would be impracticable.

------

##### [**Table of Contents**](#toc)
**Outstanding Equity-Based Awards at Fiscal Year-End** 

The following table sets forth outstanding equity awards held by each of the Company's named executive officers as of December 31, 2025, the last day of the Company's 2025 fiscal year. The following share numbers and exercise prices do not give effect to the stock split contemplated as of immediately prior to the offering.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Stock Awards** | **Stock Awards** | **Stock Awards** | **Stock Awards** |
| **Name** | **Number of<br>securities<br>underlying<br>unexercised<br>options (#)<br>exerciseable** | **Number of<br>securities<br>underlying<br>unexercised<br>options (#)<br>unexerciseable<sup>(1)</sup>** | **Equity<br>incentive<br>plan<br>awards:<br>number of<br>securities<br>underlying<br>unexercised<br>unearned<br>options (#)** | **Option<br>Exercise<br>Price<br>($)** | **Option<br>Expiration<br>Date** | **Number of shares<br>or units of stock<br>that have not<br>vested<sup>(2)</sup><sup>,(3)</sup>** | **Market<br>value of<br>shares or<br>units of<br>stock that<br>have not<br>vested<br>($)** | **Equity<br>Incentive<br>plan<br>awards:<br>number<br>of<br>unearned<br>shares,<br>units or<br>other<br>rights<br>have not<br>vested** | **Equity<br>Incentive<br>plan<br>awards:<br>market<br>or<br>payout<br>value of<br>unearned<br>shares,<br>units or<br>other<br>rights<br>that have<br>not<br>vested** |
|  David Flitman |  |  |  |  |  | 300000 | 180252137 |  |  |
|  David Flitman |  | 32596 |  | 1078.54<sup>(4)</sup> | 12/15/2035 |  |  |  |  |
|  David Flitman |  | 32596 |  | 1353.46<sup>(5)</sup> | 12/15/2035 |  |  |  |  |
|  David Flitman |  | 32596 |  | 1917.40<sup>(6)</sup> | 12/15/2035 |  |  |  |  |
|  David Flitman |  | 32597 |  | 2421.98<sup>(7)</sup> | 12/15/2035 |  |  |  |  |
|  Steven Hoffman |  |  |  |  |  | 125000 | 75105057 |  |  |
|  Steven Hoffman |  | 13038 |  | 1078.54<sup>(4)</sup> | 12/15/2035 |  |  |  |  |
|  Steven Hoffman |  | 13038 |  | 1353.46<sup>(5)</sup> | 12/15/2035 |  |  |  |  |
|  Steven Hoffman |  | 13039 |  | 1917.40<sup>(6)</sup> | 12/15/2035 |  |  |  |  |
|  Steven Hoffman |  | 13039 |  | 2421.98<sup>(7)</sup> | 12/15/2035 |  |  |  |  |
|  Gustavo Fernandez |  |  |  |  |  | 60000 | 36050427 |  |  |
|  Gustavo Fernandez |  | 6519 |  | 1078.54<sup>(4)</sup> | 12/15/2035 |  |  |  |  |
|  Gustavo Fernandez |  | 6519 |  | 1353.46<sup>(5)</sup> | 12/15/2035 |  |  |  |  |
|  Gustavo Fernandez |  | 6519 |  | 1917.40<sup>(6)</sup> | 12/15/2035 |  |  |  |  |
|  Gustavo Fernandez |  | 6520 |  | 2421.98<sup>(7)</sup> | 12/15/2035 |  |  |  |  |

---

(1) Represents awards of Options granted to each named executive officer on December 15, 2025, with one-fourth of the
Options eligible to vest on each of the first, second, third and fourth anniversaries of the grant date, subject to the named executive officer's continued employment through each such date.

(2) Represents awards of Restricted Stock granted to each named executive officer on May 2, 2023 and eligible to vest on
May 2, 2026, subject to the named executive officer's continued employment through such date. Each of our named executive officers transferred their unvested Restricted Stock to the following family trusts: (i) for Mr. Flitman, the
Emilia Flitman 2025 Descendants Trust and the Flitman Legacy Trust; (ii) for Mr. Hoffman, the Hoffman Legacy Trust and (iii) for Mr. Fernandez, the Gus Fernandez Legacy Trust.

(3) Outstanding shares of common stock, including shares of Restricted Stock, participate in their pro-rata share of any
dividends declared by the Company from time to time, which was factored into the grant date fair value of these awards. All such dividends with respect to unvested shares held by our named executive officers are paid directly to the applicable
family trust.

(4) The Option exercise price is equal to approximately 180% of the fair market value of a share of the Company's common
stock on the date the Options were granted.

(5) The Option exercise price is equal to approximately 225% of the fair market value of a share of the Company's common
stock on the date the Options were granted.

(6) The Option exercise price is equal to approximately 319% of the fair market value of a share of the Company's common
stock on the date the Options were granted.

(7) The Option exercise price is equal to approximately 403% of the fair market value of a share of the Company's common
stock on the date the Options were granted.

------

##### [**Table of Contents**](#toc)
**Potential Payments Upon Termination or Change in Control** 

The following summaries describe the potential payments and benefits that the Company would provide to its named executive officers in connection with a termination of employment and/or a change in control, in each case, as of December 31, 2025, the last day of the Company's 2025 fiscal year.

***Severance Benefits***

Pursuant to the employment agreements with each of our named executive officers as in effect on December 31, 2025, upon a termination of employment by us without "cause" (as defined in the applicable employment agreement) or by the executive with "good reason" (as defined in the applicable employment agreement), subject to the executive's execution and non-revocation of a general release of claims in favor of the Company and its affiliates, the named executive officer will be entitled to (i) continued payment of the executive's base salary (for twenty-four (24) months with respect to Messrs. Flitman and Hoffman, and for twelve (12) months with respect to Mr. Fernandez), and (ii) subject to the executive's election of COBRA continuation coverage, provided the executive does not become eligible to receive comparable health benefits through a new employer, a monthly cash payment equal to the monthly COBRA premium cost for current coverage for the eighteen (18)-month (or, for Mr. Fernandez, the twelve (12)-month) period following the date of termination.

Each named executive officer's employment agreement subjects them to customary confidentiality restrictions that apply during their employment and indefinitely thereafter, and provides that during the executive's employment, and for a period of twenty-four (24)-months (or, for Mr. Fernandez, twelve (12)-months) thereafter, each executive will be subject to non-competition and non-interference covenants.

***Restricted Stock and Stock Options***

Except as otherwise set forth below, in the event of a named executive officer's termination for any reason prior to the time that such named executive officer's Restricted Stock or Options have vested, (i) all vesting with respect to such awards will cease, and (ii) all unvested shares of Restricted Stock and unvested Options will be forfeited to the Company for no consideration.

Pursuant to each of our named executive officer's Restricted Stock grant agreements, in the event of a "change in control" of the Company prior to May 2, 2026, if the named executive officer had not experienced a termination prior to such change in control, 100% of the shares of Restricted Stock would have vested upon the consummation of such change in control. If a named executive officer's employment with the Company was terminated due to his or her death or disability on or after May 2, 2025, 100% of the shares of Restricted Stock granted to such named executive officer would have immediately vested upon the occurrence of such event.

**Equity Incentive Plans** 

We currently maintain the 2024 Stock Incentive Plan, or the 2024 Plan, pursuant to which we may grant various forms of equity compensation to our employees. We historically granted Restricted Stock and Options to employees under the 2024 Plan. The 2024 Plan will be terminated in connection with this offering, other than with respect to awards that are already outstanding under the 2024 Plan.

------

##### [**Table of Contents**](#toc)
***2026 Stock Incentive Plan***

In connection with this offering, our board of directors intends to adopt, and we expect our stockholders to approve, the 2026 Incentive Plan, or the 2026 Plan. We expect that the 2026 Plan will become effective upon the execution and delivery of the underwriting agreement related to this offering and will replace our existing stock incentive plan. Although not yet adopted, we expect that the 2026 Plan will have the features described below.

The total number of shares of our common stock available for issuance pursuant to awards under the 2026 Plan will equal shares. In addition, the shares of common stock reserved for issuance under the 2026 Plan will include shares of common stock that are undelivered pursuant to awards outstanding under the 2024 Plan (under which we will cease granting awards upon the adoption of the 2026 Plan) that are canceled, forfeited, settled in cash or otherwise terminated without delivery to the holder of the full number of shares of common stock underlying the award. Further, the total number of shares of common stock reserved and available for delivery under the 2026 Plan will be increased on the first day of each of the fiscal years during the term of the 2026 Plan beginning with fiscal year 2027, in an amount equal to the lowest of (i) 3% of the Company's outstanding shares of common stock on the last day of the immediately preceding fiscal year, (ii) of the Company's shares of common stock and (iii) such number of shares of common stock as determined by our board of directors. The 2026 Plan will be administered by the compensation committee of our board of directors. The total number of shares of our common stock that may be issued in respect of incentive stock options is shares. The number of shares of common stock available for issuance under the 2026 Plan will be subject to adjustment as provided therein. Any of our employees, directors or consultants of any of our subsidiaries or affiliates will be eligible to receive an award under the 2026 Plan, to the extent that an offer of such award is permitted by applicable law, stock market or exchange rules, and regulations or accounting or tax rules and regulations.

The 2026 Plan will permit the grant of Options (including incentive stock options and non-qualified stock options), stock appreciation rights, restricted stock, Restricted Stock, performance-based awards, other stock-based awards, and any combination thereof. No determination has been made as to the types or amounts of awards that will be granted to specific individuals under the 2026 Plan. Each award, if and when made, will be set forth in a separate grant notice or agreement and will indicate the type and terms and conditions of the award.

***Employee Stock Purchase Plan***

In connection with this offering, our board of directors intends to adopt, and we expect our stockholders to approve, the 2026 Employee Stock Purchase Plan, or the 2026 ESPP. We do not expect to grant purchase rights under the 2026 ESPP until after the completion of this offering. The maximum number of shares of our common stock that may be issued under the 2026 ESPP is shares and it will be administered by the compensation committee of our board of directors. Further, the total number of shares of common stock that may be issued under the 2026 ESPP will be increased on the first day of each fiscal year during the term of the 2026 ESPP beginning with fiscal year 2027, in an amount equal to the lowest of (i) 1% of the Company's outstanding shares of common stock on the last day of the immediately preceding fiscal year, (ii) of the Company's shares of common stock and (iii) such number of shares of common stock as determined by our board of directors. Our employees, including executive officers, and the employees of any of our designated subsidiary corporations will be eligible to participate in the 2026 ESPP, provided they may have to satisfy one or more service requirements before participating in the 2026 ESPP, as determined by the administrator. An

------

##### [**Table of Contents**](#toc)
employee may not be granted rights to purchase stock under the 2026 ESPP (x) if such employee immediately after the grant would own stock possessing 5% or more of the total combined voting power or value of all classes of our common stock or (y) to the extent that such rights would accrue at a rate that exceeds $25,000 worth of our stock for each calendar year that the rights remain outstanding, as determined under Section 423 of the Code and the rules thereunder.

The 2026 ESPP is intended to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code. The administrator may specify offerings with a duration of not more than twenty-seven (27) months and may specify one or more shorter purchase periods within each offering. Each offering will have one or more purchase dates on which shares of our common stock will be purchased for the employees who are participating in the offering. The administrator, in its discretion, will determine the terms of offerings under the 2026 ESPP.

***Grants to be made on IPO***

Our board of directors has approved grants of 4,000 shares of Restricted Stock, in the aggregate, to certain employees in connection with recent hires, promotions or other compensation adjustments, as applicable (before giving effect to the stock split contemplated as of immediately prior to the offering). These shares of Restricted Stock will be granted effective upon the execution and delivery of the underwriting agreement related to this offering under the 2026 Plan. The shares of Restricted Stock will cliff vest on April 1, 2029, subject to the grantee's continued employment through such date. None of the recipients of the shares of Restricted Stock are executive officers.

Our board of directors has also approved grants of restricted stock units (the "Founder Shares") to employees, in the aggregate, in order to aid in the retention of such employees and align the interests of such employees with those of our shareholders. The Founder Shares will be granted effective upon the execution and delivery of the underwriting agreement related to this offering under the 2026 Plan and will vest on the date that is 181 days following the date of this prospectus. None of the recipients of the Founder Shares are executive officers.

Other than with respect to the Restricted Stock awards and Founder Shares to be granted to our employees discussed above and the grant to our non-employee directors discussed below, no other determinations have been made as to the types or amounts of awards that will be granted to specific individuals under the 2026 Plan. Each award, if and when made, will be set forth in a separate grant notice or agreement and will indicate the type and terms and conditions of the award.

**Director Compensation** 

For the fiscal year ended December 31, 2025, members of the Company's board of directors received annual cash fees for services rendered. Our directors received either: (i) with respect to Robert Arowood, William Arowood, and Timothy Chesson, an annual cash fee of $100,000, or (ii) with respect to Benjamin Rosenblum, Gary Prestia, Don Rhomberg and Amy Usiak an annual cash fee of $40,000 and, with respect to Messrs. Rosenblum and Prestia, and an additional annual cash fee of $40,000 for service as chair of our audit committee, respectively.

On February 1, 2025, the Company granted shares of Restricted Stock to each non-employee director which were fully vested on the date of grant.

------

##### [**Table of Contents**](#toc)
We also reimburse our directors for reasonable and necessary out-of-pocket expenses incurred in attending board and committee meetings or performing other services for us in their capacities as directors.

**Director Compensation Table** 

The following table summarizes the total compensation paid to each non-employee director for the fiscal year ended December 31, 2025.

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Fees Earned or paid in<br>Cash($)<sup>(1)</sup>** | **Stock Awards**<br>**($)<sup>(2)</sup>** | **Total<br>($)** |
|  Robert Arowood | 100000 | 38016 | 138016 |
|  William Arowood | 100000 | 38016 | 138016 |
|  Timothy Chesson | 100000 | 38016 | 138016 |
|  Gary Prestia | 60000 | 38016 | 98016 |
|  Don Rhomberg | 40000 | 38016 | 78016 |
|  Benjamin Rosenblum | 80000 | 38016 | 118016 |
|  Amy Usiak | 40000 | 38016 | 78016 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The amounts in this column represent (i) for Messrs. Rosenblum and Prestia, annual fees equal to $40,000 for their
service as directors during 2025 and additional payments equal to $40,000 and $20,000, respectively, for their service as chairs of the Audit Committee, respectively; (ii) for Messrs. Arowood, Arowood, and Chesson annual fees equal to $100,000
for their service as directors during 2025 and (iii) for Mr. Rhomberg and Ms. Usiak, annual fees equal to $40,000 for their service as directors during 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The amounts reported in this column reflect the aggregate grant date fair value of awards of Restricted Stock granted to
each non-employee director during the fiscal year ended December 31, 2025, in accordance with FASB ASC 718. The equity awards reported in this column were granted on February 1, 2025. For additional
information regarding the assumptions used to calculate these values, see *Note 16—Stockholders' Equity* to our consolidated financial statements included elsewhere in this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Messrs. Robert Arowood and Chesson no longer serve as members of the Company's board of directors, effective as of
March 10, 2026. In addition, Mr. Prestia resigned effective May 6, 2026.

In connection with this offering, our board is expected to approve a new non-employee director compensation policy that will become effective upon the execution and delivery of the underwriting agreement related to this offering and will be applicable to all of our non-employee directors. This compensation policy provides that each such non-employee director will receive the following compensation for service on our board of directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annual cash retainer of $80,000 for each non-employee director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Additional cash retainer for the Chair of the audit committee of $70,000 for service as chairperson of the audit committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An initial equity award at the time of this offering of restricted stock units with a grant date value of $80,000
(determined based on our initial public offering price), vesting on the earlier to occur of (x) the first anniversary of our offering and (y) our first annual meeting of stockholders to be held in 2027, subject to continued service through such
date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An annual restricted stock unit award to be granted on the date of the Company's annual meeting of stockholders with
a grant date value of $80,000, with all of the shares of our common stock subject to the award vesting on the earlier of either the date of the Company's next annual meeting of stockholders or the one-year anniversary of the date of the grant, subject to continued service through such date.

We will also reimburse our directors for reasonable and necessary out-of-pocket expenses incurred in attending board and committee meetings or performing other services for us in their capacities as directors.

------

##### [**Table of Contents**](#toc)
**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS** 

In addition to the director and executive officer compensation arrangements discussed above under "Executive Compensation," the following is a description of transactions since January 1, 2022, to which we have been a party in which the amount involved exceeded or will exceed $120,000 and in which any of our directors, executive officers, beneficial holders of more than 5.0% of our common stock, or their immediate family members or entities affiliated with them, had or will have a direct or indirect material interest.

**Investment Agreement with ClinchPoint** 

Pursuant to an investment agreement, dated as of August 31, 2023, by and between Safepoint Holdings and ClinchPoint Holdings, LLC ("ClinchPoint") (the "ClinchPoint Investment Agreement"), ClinchPoint purchased 254,159 shares of common stock of Safepoint Holdings. In exchange, ClinchPoint (i) sold its 50% equity ownership interest in Cajun Underwriters Holdings, LLC to Safepoint Holdings and (ii) transferred its $6 million aggregate principal amount of Cajun Surplus Notes (as defined below) to Safepoint Holdings. As part of the consideration, ClinchPoint was entitled to appoint three individuals to our board of directors. The ClinchPoint Investment Agreement was terminated as of April 20, 2026 pursuant to an amendment to the investment agreement, by and between Safepoint Holdings and ClinchPoint.

**The Shuriken Fund** 

Safepoint Holdings is a limited partner of Shuriken Insurance Opportunity Fund, L.P., a Delaware limited partnership (the "Shuriken Fund"). The Shuriken Fund is a private investment fund that seeks to achieve favorable-risk adjusted returns by investing primarily in a portfolio of catastrophe bonds selected by its investment manager. The investment manager of the Shuriken Fund is Shuriken Capital Management, LLC, a Delaware limited liability company (the "Shuriken Manager"). A subsidiary of the Shuriken Manager acts as the general partner of the Shuriken Fund. The Shuriken Manager is not owned by Safepoint but majority-owned and controlled by David Flitman and Steven Hoffman. Other employees, officers and/or directors of Safepoint Holdings have, or may in the future be granted, an interest in the Shuriken Manager. ClinchPoint also owns a minority interest in the Shuriken Manager.

Pursuant to a Subscription Agreement dated May 2, 2025, Safepoint Holdings made a seed capital contribution to the Shuriken Fund as its initial limited partner in the amount of $10,000,000 (the "Fund Investment"). The Fund Investment is not currently subject to any management fees or other compensation payable to the Shuriken Manager. Any third-party investors in the Shuriken Fund will be subject to management fees payable to the Shuriken Manager. The Fund Investment may not be withdrawn until after May 31, 2027, and then only in accordance with the withdrawal terms applicable to the Fund Investment at the time of withdrawal.

On May 2, 2025, Safepoint Holdings also made an unsecured loan of $1,200,000 to the Shuriken Manager for working capital, which accrues interest at 8% (per annum) and is due and payable on April 30, 2035. Interest is due and payable on December 31st of each year, in cash or capitalized into the principal amount. The Shuriken Manager is in compliance with all required payments under the unsecured loan. Safepoint Holdings has also entered into a services agreement with the Shuriken Manager pursuant to which Safepoint Holdings provides, either

------

##### [**Table of Contents**](#toc)
directly or through the secondment of employees, certain middle- and back-office services to the Shuriken Manager, including operations, accounting, investor relations, and information technology support.

On February 19, 2026, the Shuriken Fund purchased $1 million of the Series 2026-1 catastrophe bonds issued by Nature Coast Re Ltd. These notes are catastrophe bonds sponsored by Safepoint and include reinsurance agreements that provide $250,000,000 in shared reinsurance limit between Safepoint Insurance, Manatee, and Cajun. The Shuriken Fund disclosed that it can and will invest in Safepoint affiliated Insurance-Linked Securities subject to the following constraints: the Investment Manager shall not cause the Shuriken Fund to (i) purchase more than 9.99% of any individual class of affiliated catastrophe bonds in a primary offering or (ii) invest more than 9.99% of the net asset value of the Shuriken Fund in primary offerings of affiliated catastrophe bonds (measured at the time of each investment).

**Nsurehub, Inc.** 

Certain shareholders of Safepoint Holdings and members of management are members of Crawdaddy's Ventures, LLC, a Florida limited liability company ("Crawdaddy"), which is a holding company for Nsurehub, Inc. ("Nsurehub"). David Flitman is the largest shareholder in Crawdaddy and maintains a position of Chief Executive Manager of Crawdaddy. Other employees, officers and/or directors of Safepoint Holdings have, or may in the future be granted, an interest in Crawdaddy. ClinchPoint and Steven Hoffman also own minority interests in Crawdaddy and are managers of Crawdaddy. Donald Rhomberg, one of our Directors, is currently the President of NsureHub, and he received an annual salary of $150,000 each year since 2023.

Pursuant to a Stock Purchase Agreement, dated March 31, 2024, Safepoint Holdings sold 100% of the equity of Nsurehub for a purchase price of $120,000. Nsurehub is a non-exclusive insurance agent that writes business on behalf of Safepoint Holdings and other unaffiliated insurers. As of December 31, 2025, Nsurehub was the insurance agent for 0.33% of our in-force premiums.

Safepoint Holdings has also entered into a services agreement, dated October 1, 2025, with Nsurehub pursuant to which Safepoint Holdings provides, either directly or through the secondment of employees, certain middle- and back-office services to Nsurehub, including operations, accounting, investor relations, and information technology support.

**Safepoint Foundation** 

In 2024, Safepoint Holdings formed Safepoint Foundation Inc., a 501(c)(3) organization ("Safepoint Foundation") for the purpose of fostering the Company's charitable initiatives. In the year ended December 31, 2024 and December 31, 2025, Safepoint Holdings contributed $250,000 and $350,000, respectively, to Safepoint Foundation.

**Bobcat Re, LLC** 

Certain shareholders of Safepoint Holdings and members of management are members of Bobcat Re, LLC, a Florida limited liability company ("Bobcat"), which is a reinsurance managing general underwriter for interventional business. Bobcat is led by an independent management team and writes business that does not compete with Safepoint. David Flitman is the largest

------

##### [**Table of Contents**](#toc)
shareholder in Bobcat. Other employees, officers and/or directors of Safepoint Holdings have, or may in the future be granted, an interest in Bobcat. Steven Hoffman also owns a minority interest in Bobcat.

On November 12, 2025, Safepoint Holdings made an unsecured loan of $600,000 to Bobcat for working capital, which pays interest at 8% (per annum) and is due and payable on November 30, 2035.

Safepoint Holdings has also entered into a services agreement, dated November 11, 2025, with Bobcat pursuant to which Safepoint Holdings provides, either directly or through the secondment of employees, certain middle- and back-office services to Bobcat, including operations, accounting, investor relations, and information technology support.

**Shareholders Agreement** 

Prior to completion of this offering, we were a party to a shareholders agreement, dated as of July 1, 2015 (the "shareholders agreement"), with certain holders of our outstanding capital stock. The shareholders agreement provides for a right of first refusal, tag-along rights, drag-along rights and preemptive rights in respect of sales by certain holders of our capital stock. The shareholders agreement terminated by its own terms upon consummation of that certain buyout agreement, dated as of May 2, 2023, by and among Safepoint Holdings, Amarjit Dhaliwal, Amarpal Dhaliwal, Amandeep Dhaliwal, Khushi Dhaliwal and Parminder Dhaliwal.

**Company Share Repurchases** 

On June 26, 2025, the Company repurchased 26,958 shares of common stock from Acrisure, one of the Company's shareholders, for a price per share of $370.95 (for total proceeds to Acrisure of $10,000,000), see "*Item 15. Recent Sales of Unregistered Securities—Sale of 114,622 shares of Series A Preferred Stock*." On August 19, 2025, the Company repurchased 1,000 shares of common stock from Donald Rhomberg, one of the Company's board members, for a price per share of $378.52 (for total proceeds to Donald Rhomberg of $378,520.30).

**Indemnification Agreements and Directors' and Officers' Liability Insurance** 

We have entered into indemnification agreements with each of our directors and executive officers. These agreements, among other things, require us to indemnify each director and executive officer to the fullest extent permitted by Delaware law, subject to certain exceptions, including indemnification of expenses such as attorneys' fees, judgments, penalties, fines and settlement amounts incurred by the director or executive officer in any action or proceeding, including any action or proceeding by or in right of us, arising out of the person's services as a director or executive officer.

**Policies and Procedures for Related Party Transactions** 

Our board of directors has adopted a written related person transaction policy, to be effective upon the completion of this offering, setting forth the policies and procedures for the review and approval or ratification of related person transactions. This policy will cover, with certain exceptions set forth in Item 404 of Regulation S-K under the Securities Act, any transaction, arrangement or relationship, or any series of similar transactions, arrangements or relationships, in which we were or are to be a participant, where the amount involved exceeds $120,000 and a related person had or will have a direct or indirect material interest, including,

------

##### [**Table of Contents**](#toc)
without limitation, purchases of goods or services by or from the related person or entities in which the related person has a material interest, indebtedness, guarantees of indebtedness and employment by us of a related person. In reviewing and approving any such transactions, our audit committee is tasked to consider all relevant facts and circumstances, including, but not limited to, whether the transaction is on terms comparable to those that could be obtained in an arm's length transaction with an unrelated third party, and the extent of the related person's interest in the transaction. All of the transactions described in this section occurred prior to the adoption of this policy.

------

##### [**Table of Contents**](#toc)
**PRINCIPAL AND SELLING STOCKHOLDERS** 

The following table sets forth information with respect to the beneficial ownership of our common stock as of [•], and as adjusted to reflect the sale of our common stock offered by us and the selling stockholders in this offering, for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our named executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all of our current directors and executive officers as a group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person, or group of affiliated persons, known by us to be the beneficial owner of more than 5% of our outstanding
shares of common stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of the selling stockholders.

We have determined beneficial ownership in accordance with the rules of the SEC, which generally means that a person has beneficial ownership of a security if he or she possesses sole or shared voting or investment power of that security, including options that are currently exercisable or exercisable, or Restricted Stock or restricted stock units vesting, within 60 days of [•]. Unless otherwise indicated, to our knowledge, the persons and entities named in the table below have sole voting and sole investment power with respect to all shares that they beneficially own, subject to community property laws where applicable. The information in the table below does not necessarily indicate beneficial ownership for any other purpose, including for purposes of Sections 13(d) and 13(g) of the Securities Act.

We have based our calculation of the percentage of beneficial ownership prior to this offering on [•] shares of common stock outstanding as of [•]. We have based our calculation of the percentage of beneficial ownership after this offering on shares of common stock outstanding immediately after the closing of this offering. In computing the number of shares beneficially owned by an individual or entity and the percentage ownership of that person, shares of common stock subject to options, convertible securities or other rights, held by such person that are currently exercisable, or will become exercisable within 60 days of [•], are considered outstanding. We did not, however, deem such shares outstanding for the purpose of computing the percentage ownership of any other person.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | | **After this Offering(2)** | **After this Offering(2)** | **After this Offering(2)** | **After this Offering(2)** |
|  | **Prior to this<br>Offering(1)** | **Prior to this<br>Offering(1)** | | **Assuming No<br>Exercise of the<br>Underwriters'<br>Option** | **Assuming No<br>Exercise of the<br>Underwriters'<br>Option** | **Assuming Full<br>Exercise of the<br>Underwriters'<br>Option** | **Assuming Full<br>Exercise of the<br>Underwriters'<br>Option** |
|  | **Shares<br>Owned** | **Percentage** | <br>**Shares<br>Offered** | **Shares<br>Owned** | **Percentage** | **Shares<br>Owned** | **Percentage** |
|  **Name of Beneficial Owner** |  |  |  | | | | |
|  **Greater than 5% Stockholders:** |  |  |  | | | | |
|  **Named Executive Officers, Directors and Director Nominees:** |  |  |  | | | | |
|  David Flitman |  |  |  |  |  |  |  |
|  Steven Hoffman |  |  |  |  |  |  |  |
|  Jennifer Cotugno |  |  |  |  |  |  |  |
|  Gus Fernandez |  |  |  |  |  |  |  |
|  Michael Mowel |  |  |  |  |  |  |  |

---

------

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | **After this Offering(2)** | **After this Offering(2)** | **After this Offering(2)** | **After this Offering(2)** |
|  | **Prior to this<br>Offering(1)** | **Prior to this<br>Offering(1)** | | **Assuming No<br>Exercise of the<br>Underwriters'<br>Option** | **Assuming No<br>Exercise of the<br>Underwriters'<br>Option** | **Assuming Full<br>Exercise of the<br>Underwriters'<br>Option** | **Assuming Full<br>Exercise of the<br>Underwriters'<br>Option** |
|  | **Shares<br>Owned** | **Percentage** |<br>**Shares<br>Offered** | **Shares<br>Owned** | **Percentage** | **Shares<br>Owned** | **Percentage** |
|  William M. Arowood |  |  |  |  |  |  |  |
|  Jim Donelon |  |  |  |  |  |  |  |
|  Donald Rhomberg |  |  |  |  |  |  |  |
|  Ben Rosenblum |  |  |  |  |  |  |  |
|  Amy Usiak |  |  |  |  |  |  |  |
|  All executive officers, directors and director nominees as a group ([•] persons) |  |  |  |  |  |  |  |
|  **Other Selling Stockholders:** |  |  |  |  |  |  |  |
|  Robert Arowood |  |  |  |  |  |  |  |
|  Tim Chesson |  |  |  |  |  |  |  |
|  Acrisure-SI Vehicles, LLC(3) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) |  |  |  |  |  |  |  |

---

(1) As of [ • ].

(2) As of [ • ].

(3) Reflects securities held by Acrisure-SI Vehicles, LLC. Acrisure, LLC is the managing member of Acrisure-SI Vehicles, LLC
and may be deemed to beneficially own the securities held by Acrisure-SI Vehicles, LLC. The address of Acrisure-SI Vehicles LLC is 100 Ottawa Avenue SW Grand Rapids, Michigan 49503.

(4) Consists of selling stockholders not otherwise listed in this table who within the groups indicated collectively own less
than 1% of our common stock.

------

##### [**Table of Contents**](#toc)
**DESCRIPTION OF CAPITAL STOCK** 

**General** 

As of the closing of this offering, our authorized capital stock will consist of [•] shares of common stock, par value $0.01 per share.

The following descriptions of our capital stock, provisions of our Certificate of Incorporation, our Bylaws and the Amended and Restated Stockholders Agreement are summaries and are qualified by reference to the full text of those documents, copies of which will be filed with the SEC as exhibits to the registration statement of which this prospectus forms a part. The following summary of relevant provisions of the DGCL is qualified by the full text of such provisions. The description of our capital stock reflects changes to our capital structure that will occur prior to the closing of this offering.

**Common Stock** 

As of [•], we had [•] shares of common stock outstanding.

The holders of common stock will be entitled to one vote per share on all matters to be voted upon by the stockholders. The holders of common stock will be entitled to receive ratably those dividends, if any, that may be declared from time to time by our board of directors out of funds legally available. In the event of a liquidation, dissolution or winding up of our company, the holders of common stock will be entitled to share ratably in all assets remaining after payment of liabilities. The common stock will have no preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to the common stock. Following the completion of this offering, all outstanding shares of common stock will be fully paid and non-assessable.

**Anti-Takeover Matters in our Governing Documents and Under Delaware Law** 

Our Certificate of Incorporation and our Bylaws will contain, and the DGCL contains, provisions that are intended to enhance the likelihood of continuity and stability in the composition of our board of directors. These provisions are intended to avoid costly takeover battles, reduce our vulnerability to a hostile or abusive change of control, and enhance the ability of our board of directors to maximize stockholder value in connection with any unsolicited offer to acquire us. However, these provisions may have an anti-takeover effect and may delay, deter, or prevent a merger or acquisition by means of a tender offer, a proxy contest, or other takeover attempt that a stockholder might consider in its best interest, including those attempts that might result in a premium over the prevailing market price for the shares of common stock held by stockholders.

**Authorized but unissued capital stock** 

The authorized but unissued shares of common stock and preferred stock are available for future issuance without stockholder approval, subject to any limitations imposed by the listing standards of the NYSE. These additional shares may be used for a variety of corporate finance transactions, acquisitions and employee benefit plans. The existence of authorized but unissued and unreserved common stock and preferred stock could make more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger, or otherwise.

------

##### [**Table of Contents**](#toc)
**Classified board of directors** 

Our Certificate of Incorporation will provide that our board of directors will be divided into three classes, with the classes as nearly equal in number as possible and each class serving three-year staggered terms. Directors may only be removed from our board of directors for cause by the affirmative vote of at least a majority of the confirmed voting power of our common stock. In addition, our Certificate of Incorporation will provide that, subject to the rights granted to one or more series of preferred stock then outstanding, any newly created directorship on the board of directors that results from an increase in the number of directors and any vacancies on our board of directors will be filled only by the affirmative vote of a majority of the remaining directors, even if less than a quorum, or by a sole remaining director. These provisions may have the effect of deferring, delaying, or discouraging hostile takeovers, changes in control of us or changes in our management.

**Delaware anti-takeover law** 

After this offering, we will be subject to Section 203 of the DGCL, which is an anti-takeover law. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a business combination with an interested stockholder for a period of three years following the date that the person became an interested stockholder, unless the business combination or the transaction in which the person became an interested stockholder is approved in a prescribed manner. Generally, a business combination includes a merger, asset or stock sale, or another transaction resulting in a financial benefit to the interested stockholder. Generally, an interested stockholder is a person who, together with affiliates and associates, owns 15% or more of the corporation's outstanding voting stock or is the corporation's affiliate or associate and was the owner of 15% or more of the corporation's outstanding voting stock at any time within the three-year period immediately before the date of determination. The existence of this provision may have an anti-takeover effect with respect to transactions that are not approved in advance by our board, including discouraging attempts that might result in a premium over the market price for the shares of common stock held by stockholders.

**No cumulative voting** 

Under Delaware law, the right to vote cumulatively does not exist unless the certificate of incorporation specifically authorizes cumulative voting. Our Certificate of Incorporation will not authorize cumulative voting. Therefore, stockholders holding a majority of the shares of our stock entitled to vote generally in the election of directors will be able to elect all of our directors.

**Special stockholder meetings** 

Our Certificate of Incorporation will provide that special meetings of our stockholders may be called at any time only by or at the direction of the board of directors or the chair of the board of directors. Our Bylaws will prohibit the conduct of any business at a special meeting other than as specified in the notice for such meeting. These provisions may have the effect of deferring, delaying, or discouraging hostile takeovers or changes in control or management.

**Director nominations and stockholder proposals** 

Our Bylaws will establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors. In order for any matter to be "properly brought" before a meeting, a stockholder will have to comply with advance notice requirements and provide us with certain information. Generally, to be timely, a

------

##### [**Table of Contents**](#toc)
stockholder's notice must be received at our principal executive offices not less than 90 days nor more than 120 days prior to the first anniversary date of the immediately preceding annual meeting of stockholders. Our Bylaws will also specify requirements as to the form and content of a stockholder's notice. Our Bylaws will allow the chair of a meeting of the stockholders to adopt rules and regulations for the conduct of that meeting that may have the effect of precluding the conduct of certain business at that meeting if the rules and regulations are not followed. These provisions may also defer, delay, or discourage a potential acquirer from conducting a solicitation of proxies to elect the acquirer's own slate of directors or otherwise attempting to influence or obtain control.

**Stockholder action by written consent** 

Pursuant to Section 228 of the DGCL, any action required to be taken at any annual or special meeting of the stockholders may be taken without a meeting, without prior notice, and without a vote if a consent or consents in writing, setting forth the action so taken, is or are signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares of our stock entitled to vote thereon were present and voted, unless the certificate of incorporation provides otherwise. Our Certificate of Incorporation will only permit stockholder action by unanimous written consent.

**Amendment of Certificate of Incorporation or Bylaws** 

The DGCL provides generally that the affirmative vote of a majority of the shares entitled to vote on any matter is required to amend a corporation's certificate of incorporation or bylaws, unless a corporation's certificate of incorporation or bylaws, as the case may be, requires a greater percentage. Upon the closing of this offering, our Bylaws may be amended or repealed by a majority vote of our board of directors or by the affirmative vote of the holders of at least 66<sup>2</sup>⁄<sub>3</sub>% of the votes which all our stockholders would be entitled to cast in any annual election of directors. In addition, the affirmative vote of the holders of at least 66<sup>2</sup>⁄<sub>3</sub>% of the votes which all our stockholders would be entitled to cast in any election of directors will be required to amend or repeal or to adopt any provisions inconsistent with any of the provisions of our Certificate of Incorporation described above.

The foregoing provisions of our Certificate of Incorporation and our Bylaws could discourage potential acquisition proposals and could delay or prevent a change in control. These provisions are intended to enhance the likelihood of continuity and stability in the composition of our board of directors and in the policies formulated by our board of directors and to discourage certain types of transactions that may involve an actual or threatened change of control. These provisions are designed to reduce our vulnerability to an unsolicited acquisition proposal. The provisions also are intended to discourage certain tactics that may be used in proxy fights. However, such provisions could have the effect of discouraging others from making tender offers for our shares and, as a consequence, they also may inhibit fluctuations in the market price of our shares of common stock that could result from actual or rumored takeover attempts. Such provisions also may have the effect of preventing changes in our management or delaying or preventing a transaction that might benefit you or other minority stockholders.

**Exclusive forum** 

Our Certificate of Incorporation will provide that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware be the sole and exclusive forum for: (1) any derivative action or proceeding brought on behalf of our company,

------

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

**Limitations of liability and indemnification** 

The DGCL authorizes corporations to limit or eliminate the personal liability of directors to corporations and their stockholders for monetary damages for breaches of directors' fiduciary duties, subject to certain exceptions. We have also entered into and will continue to enter into indemnification agreements with our directors and executive officers which provide that we must indemnify and advance expenses to our directors and officers to the fullest extent authorized by the DGCL, subject to certain exceptions as described in "Certain Relationships and Related Party Transactions—Indemnification Agreements and Directors' and Officers' Liability Insurance." Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors or executive officers, we have been informed that in the opinion of the SEC such indemnification is against public policy and is therefore unenforceable. We are expressly authorized to carry directors' and officers' liability insurance providing indemnification for our directors, officers and certain employees for some liabilities. We believe these indemnification and advancement provisions and insurance are useful to attract and retain qualified directors and executive officers.

The limitation of liability, indemnification and advancement provisions in our indemnification agreements and our Bylaws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against directors and officers, even

------

##### [**Table of Contents**](#toc)
though such an action, if successful, might otherwise benefit us and our stockholders. In addition, your investment may be adversely affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions.

There is currently no pending material litigation or proceeding involving any of our directors, officers or employees for which indemnification is sought.

**Corporate Opportunity** 

Our certificate of incorporation will provide that, to the fullest extent permitted by law, the doctrine of "corporate opportunity" will only apply against our directors and officers and their respective affiliates for competing activities related to insurance underwriting activities.

**Transfer Agent and Registrar** 

Upon the closing of this offering, the transfer agent and registrar for our common stock will be Computershare Inc. and Computershare Trust Company, N.A. (collectively, "Computershare"). The transfer agent's address is 150 Royall Street, Canton, Massachusetts 02021.

**Exchange Listing** 

We have applied to list our common stock on the NYSE under the symbol "SFPT."

------

##### [**Table of Contents**](#toc)
**DESCRIPTION OF CERTAIN INDEBTEDNESS** 

We summarize below the principal terms of the agreements that govern our existing indebtedness. We refer you to the exhibits to the registration statement of which this prospectus forms a part for copies of agreements governing the indebtedness described below.

**Credit Facilities** 

On February 18, 2025, Safepoint Holdings (as the borrower thereunder) and certain of its subsidiaries (as guarantors thereunder) entered into the Credit Agreement with the lenders from time to time party thereto, and Regions Bank as the administrative agent, pursuant to which we incurred a $200 million term loan, as well as commitments in respect of the DDTL Facility and the Revolving Credit Facility. As of May 8, 2026, there was approximately $200.0 million in outstanding borrowings under the Credit Agreement, and there remained available for future drawings $200.0 million under the DDTL Facility and $200.0 million under the Revolving Credit Facility.

The Credit Agreement contains financial covenants, restrictions on indebtedness, liens, investments, mergers, dispositions, prepayment of other indebtedness and dividends and other distributions, and is secured by liens and security interests on substantially all of our assets (subject to customary exceptions) (such assets, collectively, the "collateral"). All of these covenants, restrictions, liens and security interests impact how we operate our business and may limit our flexibility in planning for, or reacting to, changes in our business and industry. Our ability to comply with these covenants may be affected by events beyond our control. If we breach any of the covenants and do not obtain a waiver from the lenders, then, subject to applicable cure periods, any outstanding debt under the Credit Agreement may be declared immediately due and payable. Our assets or cash flow may not be sufficient to fully repay outstanding borrowings if accelerated upon an event of default. Furthermore, if we are unable to repay, refinance, or restructure the Credit Agreement and the outstanding borrowings thereunder, the lenders could proceed against the collateral granted to them to secure such indebtedness, which could force us into bankruptcy or liquidation. As a result, any default by us on our debt could have a materially adverse effect on our business, financial condition, and results of operations.

**Cajun Surplus Notes** 

As of March 31, 2026, Cajun has issued approximately $41.75 million in aggregate principal amount of subordinated surplus notes (the "Cajun Surplus Notes") on the terms summarized in the table below. Prior AL DOI approval is required for Cajun to make any payment of interest on, principal of, and any redemption amount with respect to, the Cajun Surplus Notes. If any such payment is not approved and therefore deferred by the AL DOI, no event of default will occur and no interest will accrue on the deferred amount. The Cajun Surplus Notes are unsecured general obligations that are expressly subordinated in their right of payment to policyholder obligations and other obligations of Cajun. The Cajun Surplus Notes were issued in reliance on the exemption for sales of securities not involving a public offering provided by Section 4(a)(2) of the Securities Act.

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Issue Date** | **Holder** | **Amount** | **Interest<br>Rate** | **Maturity Date** |
|  June 15, 2022 | Safepoint Insurance Company(1) | $6 million | 8% | December 31, 2042 |
|  June 15, 2022 | Cajun Investco I, LLC(2) | $3 million | 8% | December 31, 2042 |
|  June 15, 2022 | Safepoint Insurance Company(1) | $6 million | 8% | December 31, 2042 |
|  September 23, 2022 | Cajun Investco I, LLC(2) | $2 million | 8% | December 31, 2042 |
|  May 4, 2023 | Cajun Underwriters Holdings, LLC(1) | $3 million | 8% | December 31, 2042 |
|  February 7, 2024 | Safepoint Holdings, Inc. | $1.75 million | 8% | December 31, 2044 |
|  November 11, 2024 | Manatee Insurance Exchange | $10 million | 8% | November 11, 2044 |
|  January 31, 2025 | Safepoint Insurance Company(1) | $10 million | 8% | January 31, 2045 |

---

(1) A wholly owned subsidiary of Safepoint Holdings, Inc.

(2) A wholly owned subsidiary of Acrisure, LLC.

**Manatee Surplus Notes** 

As of March 31, 2026, Manatee has issued $25 million in aggregate principal amount of subordinated surplus notes (the "Manatee Surplus Notes") on the terms summarized in the table below. Prior FLOIR approval is required for Manatee to make any payment of interest on, principal of, and any redemption amount with respect to, the Manatee Surplus Notes. If any such payment is not approved and therefore deferred by the FLOIR, no event of default will occur and no interest will accrue on the deferred amount. The Manatee Surplus Notes are unsecured general obligations that are expressly subordinated in their right of payment to policyholder obligations and other obligations of Manatee. The Manatee Surplus Notes were issued in reliance on the exemption for sales of securities not involving a public offering provided by Section 4(a)(2) of the Securities Act.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Issue Date** | **Holder** | **Amount** | **Interest<br>Rate** | **Maturity Date** |
|  January 5, 2024 | Safepoint Holdings, Inc. | $20 million | 8% | January 5, 2044 |
|  January 18, 2024 | Acrisure-SI Vehicles, LLC | $5 million | 8% | January 18, 2044 |

---

------

##### [**Table of Contents**](#toc)
**SHARES ELIGIBLE FOR FUTURE SALE** 

Prior to this offering, there has been no public market for our common stock, and we cannot predict the effect, if any, that market sales of shares of our common stock or the availability of shares of our common stock for sale will have on the market price of our common stock prevailing from time to time. Future sales of our common stock in the public market, or the availability of such shares for sale in the public market, could adversely affect market prices prevailing from time to time. As described below, only a limited number of shares of our common stock will be available for sale shortly after this offering due to contractual and legal restrictions on resale. Nevertheless, sales of our common stock in the public market after such restrictions lapse, or the perception that those sales may occur, could adversely affect the prevailing market price at such time and our ability to raise equity capital in the future.

Following the closing of this offering, based on the number of shares of our capital stock outstanding as of [•], [•] shares of common stock will be outstanding, assuming no exercise of the underwriters' option to purchase additional shares to cover over-allotments, if any, and no exercise of outstanding Options. Of these outstanding shares, all of the shares of our common stock sold in this offering will be freely tradable, except that any shares purchased in this offering by our affiliates, as that term is defined in Rule 144 under the Securities Act, would only be able to be sold in compliance with the Rule 144 limitations described below.

The remaining outstanding shares of our common stock not sold in this offering will be, and shares subject to outstanding Restricted Stock awards will, upon issuance, be deemed "restricted securities" as defined in Rule 144 under the Securities Act. Restricted securities may be sold in the public market only if they are registered or if they qualify for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, which rules are summarized below. Substantially all of our selling stockholders and our executive officers, directors and holders of our capital stock and securities exchangeable or exercisable for our capital stock have entered lock-up agreements with the underwriters under which they have agreed, subject to certain customary exceptions, not to sell any of our stock for 180 days following the date of this prospectus. As a result of these agreements and subject to the provisions of Rule 144 or Rule 701, shares of our common stock will be available for sale in the public market as follows:

beginning on the date of this prospectus, all shares of our common stock sold in this offering will be immediately available for sale in the public market; and

beginning 180 days after the date of this prospectus, the remaining shares of our common stock will be eligible for sale in the public market from time to time thereafter, subject in some cases to the volume and other restrictions of Rule 144, as described below.

**Lock-Up Agreements** 

We, our officers, directors, all the selling stockholders and holders of substantially all of our capital stock and securities convertible into or exchangeable for our capital stock have agreed or will agree, with the underwriters that, subject to certain exceptions, for a period of 180 days after the date of this prospectus, we and they will not, and will not cause or direct any of our or their respective affiliates to, without the prior written consent of Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC, (i) offer, sell, contract to sell, pledge, grant any option to purchase, lend or otherwise dispose of any shares of common stock, any options or warrants to purchase any shares of common stock or any securities convertible into or exchangeable for or that represent the right to receive shares of our common stock, (ii) engage in any hedging or other transaction or arrangement (including, without limitation, any short sale or the purchase or sale of, or entry into, any put or call option, or combination thereof, forward, swap or any other derivative transaction or instrument, however described or

------

##### [**Table of Contents**](#toc)
defined) which is designed to, or which reasonably could be expected to lead to, or result in a sale, loan, pledge or other disposition (whether by such holder or someone other than such holder), or transfer of any of the economic consequences of ownership, in whole or in part, directly or indirectly, of any shares of common stock or derivative instruments, whether any such transaction or arrangement (or instrument provided for thereunder) would be settled by delivery of common stock or other securities, in cash or otherwise, or (iii) otherwise publicly announce any intention to engage in or cause any action or activity described in clauses (i) or (ii) above. Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC may, in their discretion, release any of the securities subject to lock-up agreements at any time. When determining whether or not to release our common stock and other securities from lock-up agreements, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC will consider, among other factors, the holder's reasons for requesting the release, the number of shares for which the release is being requested and market conditions at the time of the request. In the event of such a release or waiver for one of our directors or officers, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC shall provide us with notice of the impending release or waiver at least three business days before the effective date of such release or waiver and we will announce the impending release or waiver by issuing a press release at least two business days before the effective date of the release or waiver.

**Rule 144** 

In general, under Rule 144 as currently in effect, once we have been subject to the public company reporting requirements of Section 13 or Section 15(d) of the Exchange Act for at least 90 days, a person who is not deemed to have been one of our affiliates for purposes of the Securities Act at any time during the 90 days preceding a sale and who has beneficially owned the shares of our common stock proposed to be sold for at least six months is entitled to sell those shares without complying with the manner of sale, volume limitation or notice provisions of Rule 144, subject to compliance with the public information requirements of Rule 144. If such a person has beneficially owned the shares proposed to be sold for at least one year, including the holding period of any prior owner other than our affiliates, then that person would be entitled to sell those shares without complying with any of the requirements of Rule 144.

In general, under Rule 144, as currently in effect, our affiliates or persons selling shares of our common stock on behalf of our affiliates are entitled to sell upon expiration of the market standoff agreements and lock-up agreements described above, within any three-month period, a number of shares that does not exceed the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1% of the number of shares of our capital stock then outstanding, which will equal     shares immediately
after this offering; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the average weekly trading volume of our common stock during the four calendar weeks preceding the filing of a notice on
Form 144 with respect to that sale.

Sales under Rule 144 by our affiliates or persons selling shares of our common stock on behalf of our affiliates are also subject to manner of sale provisions and notice requirements and to the availability of current public information about us.

**Rule 701** 

Rule 701 generally allows a stockholder who purchased shares of our capital stock pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate of our company during the immediately preceding 90 days to sell these shares in reliance upon Rule 144, but without being required to comply with the public information, holding period,

------

##### [**Table of Contents**](#toc)
volume limitation or notice provisions of Rule 144. Rule 701 also permits affiliates of our company to sell their Rule 701 shares under Rule 144 without complying with the holding period requirements of Rule 144. All holders of Rule 701 shares, however, are required to wait until 90 days after the date of this prospectus before selling those shares pursuant to Rule 701.

**S-8 Registration Statement** 

We intend to file a registration statement on Form S-8 under the Securities Act promptly after the closing of this offering to register shares of our common stock subject to Options outstanding under the 2024 Plan and awards of Restricted Stock and Founder Shares issued in connection with this offering under the 2026 Plan, as well as reserved for future issuance under our 2026 Equity Compensation Plans. The registration statement on Form S-8 is expected to become effective immediately upon filing, and shares of our common stock covered by the registration statement will then become eligible for sale in the public market, subject to the Rule 144 limitations applicable to affiliates, vesting restrictions and any applicable market standoff agreements and lock-up agreements. See the section captioned "*Executive Compensation—Potential Payments Upon Termination or Change in Control*" for a description of our equity compensation plans.

------

##### [**Table of Contents**](#toc)
**MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES** 

**TO NON-U.S. HOLDERS** 

The following is a summary of the material U.S. federal income tax consequences to non-U.S. holders (as defined below) of the ownership and disposition of our common stock issued pursuant to this offering. This discussion is not a complete analysis of all potential U.S federal income tax consequences relating thereto, does not address the potential application of the alternative minimum tax or Medicare contribution tax on net investment income, and does not address any estate or gift tax consequences (other than those specifically set forth below) or any tax consequences arising under any state, local or foreign tax laws, or any other U.S. federal tax laws. This discussion is based on the Code, Treasury Regulations promulgated thereunder, judicial decisions and published rulings and administrative pronouncements of the Internal Revenue Service (the "IRS"), all as in effect on the date of this prospectus. These authorities are subject to differing interpretations and may change, possibly retroactively, resulting in U.S. federal income tax consequences different from those discussed below. We have not requested a ruling from the IRS with respect to the statements made and the conclusions reached in the following summary, and there can be no assurance that the IRS or a court will agree with such statements and conclusions.

This discussion is limited to non-U.S. holders who purchase our common stock pursuant to this offering and who hold our common stock as a "capital asset" within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all of the U.S. federal income tax consequences that may be relevant to an individual holder in light of such holder's particular circumstances. This discussion also does not consider any specific facts or circumstances that may be relevant to non-U.S. holders subject to special rules under the U.S. federal income tax laws, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain former citizens or long-term residents of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• partnerships or other pass-through entities (and investors therein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "controlled foreign corporations";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "passive foreign investment companies";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• corporations that accumulate earnings to avoid U.S. federal income tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• banks, financial institutions, investment funds, insurance companies, brokers, dealers or traders in securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-exempt organizations and governmental organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-qualified retirement plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons subject to special tax accounting rules under Section 451(b) of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons that own or have owned, actually or constructively, more than 5% of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons who have elected to mark securities to market; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons holding our common stock as part of a hedging or conversion transaction or straddle, or a constructive sale, or
other risk reduction strategy or integrated investment.

If an entity or arrangement that is classified as a partnership for U.S. federal income tax purposes holds our common stock, the U.S. federal income tax treatment of a partner in the partnership will generally depend on the status of the partner and the activities of the partnership. Partnerships holding our common stock and the partners in such partnerships are urged to consult their tax advisors about the particular U.S. federal income tax consequences to them of holding and disposing of our common stock.

------

##### [**Table of Contents**](#toc)
PROSPECTIVE INVESTORS SHOULD CONSULT THEIR TAX ADVISORS REGARDING THE PARTICULAR U.S. FEDERAL INCOME TAX CONSEQUENCES TO THEM OF ACQUIRING, OWNING AND DISPOSING OF OUR COMMON STOCK, AS WELL AS ANY TAX CONSEQUENCES ARISING UNDER ANY STATE, LOCAL OR FOREIGN TAX LAWS AND ANY OTHER U.S. FEDERAL TAX LAWS.

**Definition of Non-U.S. Holder** 

For purposes of this discussion, a non-U.S. holder is any beneficial owner of our common stock that is not a "U.S. person" or a partnership (including any entity or arrangement treated as a partnership) or other pass-through entity for U.S. federal income tax purposes. A U.S. person is any person that, for U.S. federal income tax purposes, is or is treated as any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an individual who is a citizen or resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation (including any entity treated as a corporation for U.S. federal income tax purposes) created or organized
under the laws of the United States, any state thereof or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust (1) whose administration is subject to the primary supervision of a U.S. court and which has one or more
United States persons who have the authority to control all substantial decisions of the trust or (2) that has a valid election in effect under applicable Treasury Regulations to be treated as a United States person.

If you are an individual non-U.S. citizen, you may, in some cases, be deemed to be a resident alien (as opposed to a nonresident alien) by virtue of being present in the United States for at least 31 days in the calendar year and for an aggregate of at least 183 days during a three-year period ending in the current calendar year. Generally, for this purpose, all the days present in the current year, one-third of the days present in the immediately preceding year, and one-sixth of the days present in the second preceding year, are counted.

Resident aliens are generally subject to U.S. federal income tax as if they were U.S. citizens. Individuals who are uncertain of their status as resident or nonresident aliens for U.S. federal income tax purposes are urged to consult their tax advisors regarding the U.S. federal income tax consequences of the ownership or disposition of our common stock.

**Distributions on Our Common Stock** 

If we distribute cash or other property on our common stock, such distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Amounts distributed in excess of our current and accumulated earnings and profits will constitute a return of capital and will first be applied against, and reduce a non-U.S. holder's tax basis in, our common stock, but not below zero. Any distribution in excess of a non-U.S. holder's tax basis will be treated as gain realized on the sale or other disposition of our common stock and will be treated as described in the "Gain On Disposition of Our Common Stock" section below.

Subject to the discussion below regarding effectively connected income, backup withholding and FATCA (as defined below), dividends paid to a non-U.S. holder of our common

------

##### [**Table of Contents**](#toc)
stock generally will be subject to U.S. federal withholding tax at a rate of 30% of the gross amount of the dividends or such lower rate specified by an applicable income tax treaty. To receive the benefit of a reduced treaty rate, a non-U.S. holder must furnish the applicable withholding agent with a valid IRS Form W-8BEN or IRS Form W-8BEN-E (or applicable form) certifying such non-U.S. holder's qualification for the reduced rate. This certification must be provided to the applicable withholding agent before the payment of dividends and must be updated periodically. If the non-U.S. holder holds our common stock through a financial institution or other agent acting on the non-U.S. holder's behalf, the non-U.S. holder will be required to provide appropriate documentation to the agent, which then will be required to provide certification to the applicable withholding agent, either directly or through other intermediaries.

If a non-U.S. holder holds our common stock in connection with the conduct of a trade or business in the United States, and dividends paid on our common stock are effectively connected with such holder's U.S. trade or business (and are attributable to such holder's permanent establishment or fixed base in the United States if required by an applicable tax treaty), the non-U.S. holder will generally be exempt from U.S. federal withholding tax, provided that the non-U.S. holder furnishes a valid IRS Form W-8ECI (or applicable successor form) to the applicable withholding agent.

However, any such effectively connected dividends paid on our common stock generally will be subject to U.S. federal income tax on a net income basis at the regular U.S. federal income tax rates in the same manner as if such holder were a resident of the United States. A non-U.S. holder that is a foreign corporation also may be subject to an additional branch profits tax equal to 30% (or such lower rate specified by an applicable income tax treaty) of its effectively connected earnings and profits for the taxable year, as adjusted for certain items.

Non-U.S. holders that do not provide the required certification on a timely basis, but that qualify for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS. Non-U.S. holders should consult their tax advisors regarding any applicable income tax treaties that may provide for different rules.

**Gain on Disposition of Our Common Stock** 

Subject to the discussion below regarding backup withholding and FATCA, a non-U.S. holder generally will not be subject to U.S. federal income tax on any gain realized on the sale or other disposition of our common stock, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the gain is effectively connected with the non-U.S. holder's conduct of a trade or business in the United States and,
if required by an applicable income tax treaty, is attributable to a permanent establishment or fixed base maintained by the non-U.S. holder in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the non-U.S. holder is a nonresident alien individual present in the United States for 183 days or more during the
taxable year of the disposition, and certain other requirements are met; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our common stock constitutes a "U.S. real property interest" by reason of our status as a U.S. real property
holding corporation ("USRPHC"), for U.S. federal income tax purposes at any time within the shorter of the five-year period preceding the disposition or the non-U.S. holder's holding period for our common stock, and our common
stock is not regularly traded on an established securities market during the calendar year in which the sale or other disposition occurs.

------

##### [**Table of Contents**](#toc)
Determining whether we are a USRPHC depends on the fair market value of our U.S. real property interests relative to the fair market value of our other trade or business assets and our foreign real property interests. We believe we are not currently, and we do not anticipate becoming, a USRPHC for U.S. federal income tax purposes, although there can be no assurance, we will not in the future become a USRPHC.

Gain described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis at the regular U.S. federal income tax rates in the same manner as if such non-U.S. holder were a resident of the United States. A non-U.S. holder that is a foreign corporation also may be subject to an additional branch profits tax equal to 30% (or such lower rate specified by an applicable income tax treaty) of its effectively connected earnings and profits for the taxable year, as adjusted for certain items. Gain described in the second bullet point above will be subject to U.S. federal income tax at a flat 30% rate (or such lower rate specified by an applicable income tax treaty), but may be offset by certain U.S.-source capital losses (even though the individual is not considered a resident of the United States), provided that the non-U.S. holder has timely filed U.S. federal income tax returns with respect to such losses. Gain described in the third bullet point above will generally be subject to federal income tax in the same manner as gain that is effectively connected with the conduct of a U.S. trade or business (subject to any provisions under an applicable income tax treaty), except that the branch profits tax generally will not apply.

Non-U.S. holders should consult their tax advisors regarding any applicable income tax treaties that may provide for different rules.

**U.S. Federal Estate Tax** 

The estates of nonresident alien individuals generally are subject to U.S. federal estate tax on property with a U.S. situs. Because we are a U.S. corporation, our common stock will be U.S. situs property and, therefore, will be included in the taxable estate of a nonresident alien decedent, unless an applicable estate tax treaty between the United States and the decedent's country of residence provides otherwise. The terms "resident" and "nonresident" are defined differently for U.S. federal estate tax purposes than for U.S. federal income tax purposes. Investors are urged to consult their tax advisors regarding the U.S. federal estate tax consequences of the ownership or disposition of our common stock.

**Information Reporting and Backup Withholding** 

Annual reports are required to be filed with the IRS and provided to each non-U.S. holder indicating the amount of dividends on our common stock paid to such holder and the amount of any tax withheld with respect to those dividends. These information reporting requirements apply even if no withholding was required because the dividends were effectively connected with the holder's conduct of a U.S. trade or business, or withholding was reduced or eliminated by an applicable income tax treaty. This information also may be made available under a specific treaty or agreement with the tax authorities in the country in which the non-U.S. holder resides or is established.

Backup withholding, currently at a 24% rate, generally will not apply to payments to a non-U.S. holder of dividends on, or the gross proceeds of a disposition of, our common stock provided the non-U.S. holder furnishes the required certification for its non-U.S. status, such as by providing a valid IRS Form W-8BEN, IRS Form W-8BEN-E or IRS Form W-8ECI, or certain other requirements are met. Backup withholding may apply if the payor has actual knowledge, or reason to know, that the holder is a U.S. person who is not an exempt recipient.

------

##### [**Table of Contents**](#toc)
Backup withholding is not an additional tax. If any amount is withheld under the backup withholding rules, the non-U.S. holder should consult with a U.S. tax advisor regarding the possibility of and procedure for obtaining a refund or a credit against the non-U.S. holder's U.S. federal income tax liability, if any.

Information reporting and backup withholding will generally apply to the proceeds of a disposition of our common stock by a non-U.S. holder effected by or through the U.S. office of any broker, U.S. or foreign, unless the holder certifies its status as a non-U.S. holder and satisfies certain other requirements, or otherwise establishes an exemption. Generally, information reporting and backup withholding will not apply to a payment of disposition proceeds to a non-U.S. holder where the transaction is effected outside the United States through a non-U.S. office of a broker. However, for information reporting purposes, dispositions effected through a non-U.S. office of a broker with substantial U.S. ownership or operations generally will be treated in a manner similar to dispositions effected through a U.S. office of a broker. Prospective investors should consult their own tax advisors regarding the application of the information reporting and backup withholding rules to them, including the availability of, and procedure for obtaining, an exemption from backup withholding.

**Withholding on Foreign Entities** 

The Foreign Account Tax Compliance Act ("FATCA"), as reflected in Sections 1471 through 1474 of the Code, imposes a U.S. federal withholding tax of 30% on certain payments, including dividends paid in respect of our common stock and the gross proceeds of disposition on our common stock, made to a "foreign financial institution" (as specially defined under these rules) unless such institution enters into an agreement with the U.S. government to withhold on certain payments and to collect and provide to the U.S. tax authorities substantial information regarding certain U.S. account holders of such institution (which includes certain equity and debt holders of such institution, as well as certain account holders that are foreign entities with U.S. owners) or an exemption applies. FATCA also generally will impose a U.S. federal withholding tax of 30% on certain payments, including dividends paid in respect of our common stock and the gross proceeds of disposition on our common stock, made to a non-financial foreign entity unless such entity provides the withholding agent a certification identifying certain direct and indirect U.S. owners of the entity or an exemption applies. An intergovernmental agreement between the United States and an applicable foreign country may modify these requirements. Under certain circumstances, a non-U.S. holder might be eligible for refunds or credits of such taxes. FATCA currently applies to dividends paid on our common stock. Proposed Treasury Regulations, which may be relied upon until final Treasury Regulations are finalized, currently eliminate FATCA withholding on payments of gross proceeds from sales or other dispositions of our common stock.

Prospective investors are encouraged to consult with their tax advisors regarding the possible implications of FATCA on their investment in our common stock.

EACH PROSPECTIVE INVESTOR SHOULD CONSULT ITS TAX ADVISOR REGARDING THE TAX CONSEQUENCES OF PURCHASING, HOLDING AND DISPOSING OF OUR COMMON STOCK, INCLUDING THE CONSEQUENCES OF ANY PROPOSED CHANGE IN APPLICABLE LAW, AS WELL AS TAX CONSEQUENCES ARISING UNDER ANY STATE, LOCAL, NON-U.S. OR U.S. FEDERAL NON-INCOME TAX LAWS SUCH AS ESTATE AND GIFT TAX.

------

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

Subject to the terms and conditions of the underwriting agreement, the underwriters named below, through their representatives Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC, have severally agreed to purchase from us the following number of shares of common stock at a public offering price less the underwriting discounts and commissions set forth on the cover page of this prospectus:

---

| | |
|:---|:---|
| **Underwriters** | **Number<br>of Shares** |
|  Deutsche Bank Securities Inc. |  |
|  Morgan Stanley & Co. LLC |  |
|  Keefe, Bruyette & Woods, Inc. |  |
|  Citizens JMP Securities, LLC |  |
|  Piper Sandler & Co. |  |
|  Truist Securities, Inc. |  |
|  William Blair & Company, L.L.C |  |
|  Regions Securities LLC |  |
|  Academy Securities, Inc. |  |
|  Huntington Securities, Inc. |  |
|  Synovus Securities, Inc. |  |
|  Wedbush Securities Inc. |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  |

---

The underwriting agreement provides that the obligations of the several underwriters to purchase the shares of common stock offered hereby are subject to certain conditions precedent and that the underwriters will purchase all of the shares of common stock offered by this prospectus, other than those covered by the underwriters' option to purchase additional shares described below unless and until this option is exercised, if any of these shares are purchased.

We have been advised by the representatives of the underwriters that the underwriters propose to offer the shares of common stock to the public at the initial public offering price set forth on the cover of this prospectus and to dealers at a price that represents a concession not in excess of $ per share under the initial public offering price. Any such dealers may resell shares to certain other brokers or dealers at a discount of up to $ per share from the initial public offering price. After the initial public offering, the representatives of the underwriters may change the offering price and other selling terms. The offering of the shares by the underwriters is subject to receipt and acceptance and subject to the underwriters' right to reject any order in whole or in part. Sales of any shares made outside of the United States may be made by affiliates of the underwriters.

The selling stockholders have granted to the underwriters an option, exercisable not later than 30 days after the date of this prospectus, to purchase up to additional shares of common stock at the initial public offering price less the underwriting discounts and commissions set forth on the cover page of this prospectus. To the extent that the underwriters exercise this option, each of the underwriters will become obligated, subject to conditions, to purchase approximately the same percentage of these additional shares of common stock as the number of shares of common stock to be purchased by it in the above table bears to the total number of shares of common stock offered by this prospectus. We and the selling stockholders will be obligated, pursuant to the option, to sell these additional shares of common stock to the underwriters to the extent the option is exercised. If any additional shares of common stock are purchased, the underwriters will offer the additional shares on the same terms as those on which the shares are being offered.

------

##### [**Table of Contents**](#toc)
The underwriting discounts and commissions per share are equal to the public offering price per share of common stock less the amount paid by the underwriters to us or the selling stockholder per share of common stock. The underwriting discounts and commissions are % of the initial public offering price. We and the selling stockholder have agreed to pay the underwriters the following discount, assuming either no exercise or full exercise by the underwriters of the underwriters' option to purchase additional shares:

---

| | | | |
|:---|:---|:---|:---|
|  | | **Total Fees** | **Total Fees** |
|  |<br>**Fee per<br>share** | **Without<br>Exercise of<br>Underwriters'<br>Option** | **With Full<br>Exercise of<br>Underwriters'<br>Option** |
|  Discounts paid by us | $| $| $|
|  Discounts paid by the selling stockholders | $| $| $|

---

In addition, we estimate that our share of the total expenses of this offering, excluding underwriting discount, will be approximately $ million. We have agreed to reimburse the underwriters for certain of their expenses up to a maximum amount of $[•].

We and the selling stockholders have agreed to indemnify the underwriters against some specified types of liabilities, including liabilities under the Securities Act, and to contribute to payments the underwriters may be required to make in respect of any of these liabilities.

We, our officers and directors, the selling stockholders and certain other stockholders have agreed with the underwriters, subject to certain exceptions, not to dispose of or hedge any of their common stock or securities convertible into or exchangeable for shares of common stock during the period from the date of this prospectus continuing through the date 180 days after the date of this prospectus, except with the prior written consent of the representatives. See "*Shares Eligible for Future Sale*."

The representatives of the underwriters have advised us that the underwriters do not intend to confirm sales to any account over which they exercise discretionary authority.

In connection with the offering, the underwriters may purchase and sell shares of our common stock in the open market. These transactions may include stabilizing transactions, over-allotment transactions, syndicate covering transactions, and penalty bids in accordance with Regulation M under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stabilizing transactions permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a
specified maximum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Over-allotment involves sales by the underwriters of shares of common stock in excess of the common stock the underwriters
are obligated to purchase, which creates a syndicate short position. The short position may be either a covered short position or a naked short position. In a covered short position, the number of common stock over-allotted by the underwriters is
not greater than the number of common stock that they may purchase in the over-allotment option. In a naked short position, the number of common stock involved is greater than the number of common stock in the over-allotment option. The underwriters
may close out any covered short position by either exercising their over-allotment option and/or purchasing common stock in the open market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Syndicate covering transactions involve purchases of shares of common stock in the open market after the distribution has
been completed in order to cover syndicate short positions. In determining the source of common stock to close out the short position, the underwriters will consider, among other things, the price of common stock available for purchase in the open
market as compared to the price at which they may purchase common stock through the over-allotment option. If the underwriters sell more common

------

##### [**Table of Contents**](#toc)
stock than could be covered by the over-allotment option, a naked short position, the position can only be closed out by buying common stock in the open market. A naked short position is more likely to be created if the underwriters are concerned that there could be downward pressure on the price of common stock in the open market after pricing that could adversely affect investors who purchase in the offering. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Penalty bids permit the representatives to reclaim a selling concession from a syndicate member when common stock
originally sold by the syndicate member are purchased in a stabilizing or syndicate covering transaction to cover syndicate short positions.

These stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of common stock or preventing or retarding a decline in the market price of common stock. As a result, the price of common stock may be higher than the price that might otherwise exist in the open market. These transactions may be effected on the NYSE, and if commenced, may be discontinued at any time.

A prospectus in electronic format may be made available on the web sites maintained by one or more of the underwriters, or selling group members, if any, participating in this offering and one or more of the underwriters participating in this offering may distribute prospectuses electronically. The representatives may agree to allocate a number of our common stock to underwriters and selling stockholders for sale to their online brokerage account holders. Internet distributions will be allocated by the underwriters and selling stockholders that will make internet distributions on the same basis as other allocations.

We have applied to list our common stock on the New York Stock Exchange (the "NYSE") under the symbol "SFPT."

Prior to this offering, there has been no public market for our common stock. Consequently, the initial public offering price of our common stock will be determined by negotiation among us, the selling stockholder and the representatives of the underwriters. Among the factors that will be considered in determining the public offering price are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the information presented in this prospectus and otherwise available to the underwriters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the history of, and prospects for, the industry in which we will compete;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the prospects for our future earnings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the present state of our development, results of operations and our current financial condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the general condition of the securities markets at the time of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the recent market prices of, and demand for, publicly traded common stock of generally comparable companies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other factors deemed relevant by the underwriters and us.

Neither we nor the underwriters can assure investors that an active trading market will develop for our common stock, or that the shares will trade in the public market at or above the initial public offering price.

------

##### [**Table of Contents**](#toc)
**Directed Share Program** 

At our request, the underwriters have reserved for sale, at the initial public offering price, up to % of the common stock offered by this prospectus for sale to our director, director nominees, officers and certain of our employees and other persons associated with us. The number of shares of our common stock available for sale to the general public will be reduced to the extent these individuals purchase such reserved shares. Any reserved shares that are not so purchased will be offered by the underwriters to the general public on the same basis as the other shares offered by this prospectus. Pursuant to the underwriting agreement, the sales will be made by Morgan Stanley & Co, LLC, an underwriter of this offering, through a Directed Share Program. If these persons purchase reserved common stock, it will reduce the number of shares of common stock available for sale to the general public. Any reserved shares of common stock that are not so purchased will be offered by the underwriters to the general public on the same terms as the other shares of common stock offered by this prospectus. Any shares sold in the Directed Share Program to a party who has entered into a lock-up agreement described above shall be subject to the provisions of such lock-up agreement.

**Other Relationships** 

The underwriters and their respective affiliates are full-service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing and brokerage activities. Certain of the underwriters and their respective affiliates have, from time to time, performed, and may in the future perform, various financial advisory and investment banking services for us, for which they received or will receive customary fees and expenses.

In addition, in the ordinary course of their business activities, the underwriters and their affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers. These investments and securities activities may involve securities and/or instruments of ours or our affiliates. The underwriters and their affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or financial instruments and may hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

**Selling Restrictions** 

Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

------

##### [**Table of Contents**](#toc)
**Notice to Prospective Investors in the European Economic Area** 

In relation to each Member State of the European Economic Area (each, a "Member State"), no shares of common stock have been offered or will be offered pursuant to this offering to the public in that Member State prior to the publication of a prospectus in relation to the shares which has been approved by the competent authority in that Member State or, where appropriate, approved in another Member State and notified to the competent authority in that Member State, all in accordance with the Prospectus Regulation (as defined herein), except that offers of shares may be made to the public in that Member State at any time under the following exemptions under the Prospectus Regulation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to any legal entity which is a qualified investor as defined under Article 2 of the Prospectus Regulation (as defined
herein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to fewer than 150 natural or legal persons (other than qualified investors as defined in the Prospectus Regulation),
subject to obtaining the prior consent of the underwriters for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in any other circumstances falling within Article 1(4) of the Prospectus Regulation, provided that no such offer of shares
of common stock shall require us or any underwriter to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation and each person who initially acquires any
shares or to whom any offer is made will be deemed to have represented, acknowledged and agreed to and with the representative and us that it is a "qualified investor" as defined in the Prospectus Regulation.

In the case of any shares of common stock being offered to a financial intermediary as that term is used in Article 5 of the Prospectus Regulation, each such financial intermediary will be deemed to have represented, acknowledged and agreed that the shares acquired by it in the offer have not been acquired on a nondiscretionary basis on behalf of, nor have they been acquired with a view to their offer or resale to, persons in circumstances which may give rise to an offer of any shares of common stock to the public other than their offer or resale in a Member State to qualified investors as so defined or in circumstances in which the prior consent of the representative has been obtained to each such proposed offer or resale.

For the purposes of this provision, the expression an "offer to the public" in relation to any shares of common stock in any Member State means the communication in any form and by means of sufficient information on the terms of the offer and the shares of common stock to be offered so as to enable an investor to decide to purchase shares of common stock, and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129 (as amended).

**Notice to Prospective Investors in the United Kingdom** 

No shares of common stock have been offered or will be offered pursuant to the offering to the public in the United Kingdom prior to the publication of a prospectus in relation to the shares of common stock which has been approved by the Financial Conduct Authority, except that the shares of common stock may be offered to the public in the United Kingdom at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to any legal entity which is a qualified investor as defined under Article 2 of the UK Prospectus Regulation (as defined
herein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the UK Prospectus
Regulation), subject to obtaining the prior consent of the underwriters for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in any other circumstances falling within Section 86 of the Financial Services and Markets Act 2000
("FSMA");

------

##### [**Table of Contents**](#toc)
*provided* that no such offer of the shares of common stock shall require any underwriter to publish a prospectus pursuant to Section 85 of the FSMA or supplement a prospectus pursuant to Article 23 of the UK Prospectus Regulation.

For the purposes of this provision, the expression an "offer to the public" in relation to the shares of common stock in the United Kingdom means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares of common stock and the expression "UK Prospectus Regulation" means Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 and each person who initially acquires any shares of common stock or to whom any offer is made will be deemed to have represented, warranted and agreed to and with each of the underwriters and us that it is a qualified investor within the meaning of Article 2(e) of the UK Prospectus Regulation.

Each person in the UK who receives any communication in respect of, or who acquires any of our shares of common stock under, the offers to the public contemplated in this prospectus, or to whom our shares of common stock are otherwise made available, will be deemed to have represented, warranted, acknowledged, and agreed to and with us, the underwriters, and their respective affiliates that it meets the criteria outlined in this section.

This prospectus is only for distribution to and directed at: (i) in the United Kingdom, persons having professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order") and high net worth entities falling within Article 49(2)(a) to (d) of the Order; (ii) are persons falling within Article 49(2)(a) to (d)("high net worth companies, unincorporated associations etc.") of the Financial Promotion Order; (iii) persons who are outside the United Kingdom; and (iv) persons to whom an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "Relevant Persons"). The shares of common stock will only be available to, and any invitation, offer, or agreement to subscribe for, purchase, or otherwise acquire such shares will be engaged only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this prospectus or any of its contents.

**Notice to Prospective Investors in the Dubai International Financial Centre** 

This prospectus relates to an "Exempt Offer" in accordance with the Offered Securities Rules of the Dubai Financial Services Authority (the "DFSA"). This prospectus is intended for distribution only to persons of a type specified in the Offered Securities Rules of the DFSA. It must not be delivered to, or relied on by, any other person. The DFSA has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The DFSA has not approved this prospectus nor taken steps to verify the information set forth herein and has no responsibility for the prospectus. The shares of our common stock to which this prospectus relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the shares offered should conduct their own due diligence on the shares. If you do not understand the contents of this prospectus, you should consult an authorized financial advisor.

**Notice to Prospective Investors in Switzerland** 

The shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the

------

##### [**Table of Contents**](#toc)
disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketing material relating to the shares or the offering may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this prospectus nor any other offering or marketing material relating to the offering, us, or the shares of common stock have been or will be filed with or approved by any Swiss regulatory authority. In particular, this prospectus will not be filed with, and the offer of shares of common stock will not be supervised by, FINMA, and the offer of shares of common stock has not been and will not be authorized under CISA. The investor protection afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers of shares of common stock.

**Notice to Prospective Investors in Hong Kong** 

The shares of common stock have not been offered or sold and will not be offered or sold in Hong Kong, by means of any document, other than (a) to "professional investors" as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong and any rules made under that Ordinance; or (b) in other circumstances which do not result in the document being a "prospectus" as defined in the Companies Ordinance (Cap. 32) of Hong Kong or which do not constitute an offer to the public within the meaning of that Ordinance. No advertisement, invitation, or document relating to the shares of common stock has been or may be issued or has been or may be in the possession of any person for the purposes of issue, whether in Hong Kong or elsewhere, which is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to shares of common stock which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" as defined in the Securities and Futures Ordinance and any rules made under that Ordinance.

**Notice to Prospective Investors in Australia** 

No placement document, prospectus, product disclosure statement, or other disclosure document has been lodged with the Australian Securities and Investments Commission in relation to this offering. This prospectus does not constitute a prospectus, product disclosure statement, or other disclosure document under Chapter 6D.2 of the Corporations Act 2001 (the "Corporations Act"), and does not purport to include the information required for a prospectus, product disclosure statement, or other disclosure document under the Corporations Act.

Any offer in Australia of the shares may only be made to persons, or the Exempt Investors, who are "sophisticated investors" (within the meaning of section 708(8) of the Corporations Act), "professional investors" (within the meaning of section 708(11) of the Corporations Act), or otherwise pursuant to one or more exemptions contained in section 708 of the Corporations Act so that it is lawful to offer the shares without disclosure to investors under Chapter 6D of the Corporations Act.

The shares applied for by Exempt Investors in Australia must not be offered for sale in Australia in the period of 12 months after the date of allotment under the offering, except in circumstances where disclosure to investors under Chapter 6D of the Corporations Act would not be required pursuant to an exemption under section 708 of the Corporations Act or otherwise, or where the offer is pursuant to a disclosure document which complies with Chapter 6D of the Corporations Act. Any person acquiring shares must observe such Australian on-sale restrictions.

------

##### [**Table of Contents**](#toc)
This prospectus contains general information only and does not take account of the investment objectives, financial situation, or particular needs of any particular person. It does not contain any securities recommendations or financial product advice. Before making an investment decision, investors need to consider whether the information in this prospectus is appropriate to their needs, objectives, and circumstances, and, if necessary, seek expert advice on those matters.

**Notice to Prospective Investors in Japan** 

The shares of common stock have not been and will not be registered under the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948, as amended; the "FIEA") and no shares of common stock will be offered or sold, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan (which term as used herein means any person "resident" in Japan, including any corporation or other entity organized under the laws of Japan), or to others for re-offering or resale, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan except pursuant to an exemption from the registration requirements of, and otherwise in compliance with, the FIEA and any other applicable laws, regulations and ministerial guidelines of Japan in effect at the relevant time.

**Notice to Prospective Investors in Singapore** 

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the shares of common stock may not be circulated or distributed, nor may the shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor (as defined under Section 4A of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA")) under Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA, in each case subject to conditions set forth in the SFA.

Where the shares of common stock are subscribed or purchased under Section 275 of the SFA by a relevant person which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which
is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of
the trust is an individual who is an accredited investor;

the securities (as defined in Section 239(1) of the SFA) of that corporation shall not be transferable for six months after that corporation has acquired the shares under Section 275 of the SFA except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to an institutional investor or to a relevant person, or to any person arising from an offer referred to in
Section 275(1A) or Section 276(4)(i)(B) of the SFA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• where no consideration is or will be given for the transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• where the transfer is by operation of law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as specified in Section 276(7) of the SFA.

------

##### [**Table of Contents**](#toc)
Singapore Securities and Futures Act Product Classification—Solely for the purposes of its obligations pursuant to Section 309B(1)(a) and 309B(1)(c) of the SFA, we have determined, and hereby notify all relevant persons (as defined in Section 309A of the SFA), that the shares of common stock are prescribed capital markets products (as defined in the Securities and Futures (Capital Markets Products) Regulations 2018) and Excluded Investment Products (as defined in MAS Notice SFA 04-N12: Notice on the Sale of Investment Products and MAS Notice FAA-N16: Notice on the Recommendations on Investment Products).

**Notice to Prospective Investors in Canada** 

The shares of common stock may be sold in Canada only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the shares of common stock must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with this offering.

**Notice to Prospective Investors in Brazil** 

The offer and sale of the shares of common stock have not been, and will not be, registered with the Brazilian Securities Commission, Comissão de Valores Mobiliários ("CVM") and, therefore, will not be carried out by any means that would constitute a public offering in Brazil under CVM Resolution No. 160, dated July 13, 2022, as amended, or unauthorized distribution under Brazilian laws and regulations. The shares may only be offered to Brazilian Professional Investors (as defined by the applicable CVM regulation), who may only acquire the shares through a non-Brazilian account, with settlement outside Brazil in non-Brazilian currency. The trading of these shares of common stock on regulated securities markets in Brazil is prohibited.

**Notice to Prospective Investors in Bermuda** 

The shares of common stock may be offered or sold in Bermuda only in compliance with the provisions of the Investment Business Act of 2003 of Bermuda, which regulates the sale of securities in Bermuda. Additionally, non-Bermudian persons (including companies) may not carry on or engage in any trade or business in Bermuda unless such persons are permitted to do so under applicable Bermuda legislation.

------

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

Willkie Farr & Gallagher LLP will pass upon the validity of the shares of our common stock being offered by this prospectus. Latham & Watkins LLP is acting as counsel to the underwriters.

------

##### [**Table of Contents**](#toc)
**CHANGE IN ACCOUNTANTS** 

On November 18, 2024, our board of directors approved the engagement of PricewaterhouseCoopers LLP as our independent registered public accounting firm to audit our consolidated financial statements for the year ended December 31, 2024. We were not an SEC filer at the time of RSM US LLP's replacement by PricewaterhouseCoopers LLP. The audited financial statements included in this prospectus for the years ended December 31, 2024 and 2025 have been audited by PricewaterhouseCoopers LLP.

During the year ended December 31, 2023, and through November 16, 2024, there were no disagreements with RSM US LLP on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of RSM US LLP, would have caused them to make reference thereto in their report on our financial statements for the year ended December 31, 2023. The report of RSM US LLP on our financial statements for the year ended December 31, 2023, did not contain an adverse opinion or disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principle.

During the year ended December 31, 2023, and through November 16, 2024, there were no reportable events, as defined in Item 304(a)(1)(v) of Regulation S-K.

During the year ended December 31, 2023 and the subsequent interim period preceding the engagement of PricewaterhouseCoopers LLP, the Company did not consult with PricewaterhouseCoopers LLP with respect to: (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the consolidated financial statements, and no written report or oral advice of PricewaterhouseCoopers LLP was provided that was an important factor considered by the Company in reaching a decision as to the accounting, auditing, or financial reporting issue; or (ii) any matter that was either the subject of a "disagreement" (as defined in Item 304(a)(1)(iv) of Regulation S-K), or any "reportable event" (as defined in Item 304(a)(1)(v) of Regulation S-K).

We provided RSM US LLP with a copy of the foregoing disclosure and requested that RSM US LLP provide a letter addressed to the SEC stating whether it agrees with the above facts and, if not, stating the respects in which it does not agree. A copy of RSM US LLP's letter, dated May 8, 2026, provided in response to that request, is filed as Exhibit 16.1 to the Registration Statement of which this prospectus forms a part.

------

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

The financial statements as of December 31, 2024 and December 31, 2025 and for each of the two years in the period ended December 31, 2025 included in this Prospectus have been so included in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

------

##### [**Table of Contents**](#toc)
**WHERE YOU CAN FIND ADDITIONAL INFORMATION** 

We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of our common stock offered by this prospectus. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement, some of which is contained in exhibits to the registration statement as permitted by the rules and regulations of the SEC. For further information with respect to us and our common stock, we refer you to the registration statement, including the exhibits filed as a part of the registration statement. Statements contained in this prospectus concerning the contents of any contract or any other document are not necessarily complete. If a contract or document has been filed as an exhibit to the registration statement, please see the copy of the contract or document that has been filed. Each statement in this prospectus relating to a contract or document filed as an exhibit is qualified in all respects by the filed exhibit. The SEC maintains a website that contains reports, proxy statements and other information about issuers, like us, that file electronically with the SEC. The address of that website is www.sec.gov.

As a result of this offering, we will become subject to the information and reporting requirements of the Exchange Act and, in accordance with this law, will file periodic reports, proxy statements and other information with the SEC. These periodic reports, proxy statements and other information will be available for inspection at the website of the SEC referred to above. We also maintain a website at www.safepointins.com where, upon closing of this offering, you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. The information on or that can be accessed through our website is not a part of this prospectus and the inclusion of our website address in this prospectus is an inactive textual reference only.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Consolidated Financial Statements** 

**Contents** 

**As of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026 and March 31, 2025 (unaudited)** 

---

| | |
|:---|:---|
|  [Consolidated Balance Sheets](#fin73198_1) | F-2 |
|  [Consolidated Statements of Comprehensive Income](#fin73198_2) | F-3 |
|  [Consolidated Statements of Stockholders' Equity](#fin73198_3) | F-4 |
|  [Consolidated Statements of Cash Flows](#fin73198_4) | F-6 |
|  [Notes to Consolidated Financial Statements](#fin73198_5) | F-7 |

---

---

| | |
|:---|:---|
|  **Consolidated Financial Statements as of and for the years ended December 31, 2025 and 2024** | **Consolidated Financial Statements as of and for the years ended December 31, 2025 and 2024** |
|  [Report of Independent Registered Public Accounting Firm](#fintoc73198_1a) | F-28 |
|  [Consolidated Balance Sheets](#fintoc73198_1) | F-29 |
|  [Consolidated Statements of Comprehensive Income](#fintoc73198_2) | F-30 |
|  [Consolidated Statements of Stockholders' Equity](#fintoc73198_3) | F-31 |
|  [Consolidated Statements of Cash Flows](#fintoc73198_4) | F-32 |
|  [Notes to Consolidated Financial Statements](#fintoc73198_5) | F-33 |
|  [Schedule II Condensed Financial Information of Registrant at December 31, 2025 and 2024 and for the years ended December 31, 2025 and 2024](#fintoc73198_6) | F-85 |

---

Schedules other than those listed are omitted for the reason that they are not required, are not applicable or that equivalent information has been included in the financial statements or notes thereto or elsewhere herein.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Condensed Consolidated Balance Sheets (Unaudited)** 

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

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31,<br>2025** |
|  Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities, available for sale, at fair value (amortized cost of $123,906 and $118,798, respectively) | $126262 | $121795 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities, at fair value | 128 | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other invested assets, at fair value | 23982 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investments | 150372 | 121901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents(1) | 650028 | 632655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash(1) | 17522 | 18068 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable, net(1) | 29648 | 23144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverable, net(1) | 49923 | 53645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid reinsurance premiums(1) | 77522 | 90720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed reinsurance receivable, net(1) | 6880 | 34762 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net(1) | 5116 | 5131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes receivable(1) |  | 4596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax asset, net | 10141 | 9895 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred policy acquisition costs, net(1) | 39767 | 40645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net(1) | 22216 | 22723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill | 17932 | 17932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held with reinsurers(1) | 28728 | 16406 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 54418 | 14964 |
|  Total assets | $1160213 | $1107187 |
|  Liabilities and Stockholders' Equity |  |  |
|  Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses(1) | $162013 | $152167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums(1) | 434397 | 480783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance premiums(1) | 24233 | 6375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses(1) | 5307 | 6620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions payable(1) | 6832 | 4251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Checks issued in excess of funds | 2136 | 3080 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax payable(1) | 14287 | 1633 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt(1)(2) | 120362 | 123312 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest payable(1) | 1733 | 1536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance payable(1) | 49910 | 19682 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities(1) | 23387 | 14028 |
|  Total liabilities | 844597 | 813467 |
|  Commitments and Contingencies (Note 10) |  |  |
|  Refundable reciprocal subscriber contributions | 12718 | 30040 |
|  Stockholders' Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock (5,000,000 authorized, 1,372,166 and 1,391,366 issued and 1,301,034 and 1,320,234 outstanding, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 144319 | 110448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | 167599 | 162083 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury stock, at cost 71,132 and 71,132 shares, respectively | (11178) | (11178) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income, net of tax | 2158 | 2327 |
|  Total stockholders' equity | 302898 | 263680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interest | 86321 | 46535 |
|  Total equity attributable to controlling interest | 216577 | 217145 |
|  Total liabilities and equity | $1160213 | $1107187 |

---

(1) See Note 7 for details of balances associated with variable interest entities

(2) See Note 14 for additional information regarding related party transactions

*See accompanying Notes to the Consolidated Financial Statements.* 

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Condensed Consolidated Statements of Comprehensive Income** 

**(Unaudited)** 

**(In thousands, except per share amounts)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months<br>Ended**<br>**March 31,<br>2026** | **Three Months<br>Ended**<br>**March 31,<br>2025** |
|  Revenue: |  |  |
|  Gross premium written | $184134 | $183325 |
|  Change in gross unearned premiums | 46387 | 5015 |
|  Gross premiums earned | 230521 | 188340 |
|  Ceded premiums earned | (76032) | (83376) |
|  Net premiums earned | 154489 | 104964 |
|  Policy fee income | 3136 | 1313 |
|  Net investment income | 7989 | 4445 |
|  Net realized investment loss | (400) |  |
|  Other revenue | 2802 | 1699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 168016 | 112421 |
|  Expenses: |  |  |
|  Losses and loss adjustment expenses | 45491 | 40584 |
|  Policy acquisition costs, net of ceding commissions | 20285 | 10971 |
|  General and administrative expenses | 27088 | 13827 |
|  Interest expense | 2483 | 1756 |
|  Loss on debt extinguishment |  | 8873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 95347 | 76011 |
|  Income before income taxes | 72669 | 36410 |
|  Provision for income tax expense | 17250 | 8820 |
|  Net income | 55419 | 27590 |
|  Net income attributable to non-controlling interest | 7386 | 11036 |
|  Net income attributable to controlling interest | 48033 | 16554 |
|  Other comprehensive (loss) income: |  |  |
|  Change in net unrealized (loss) gain on fixed maturity investments | (389) | 824 |
|  Reclassification adjustment for net realized investment (loss) gain | (398) | 1 |
|  Income tax benefit (expense) related to items of other comprehensive (loss) income | 618 | (160) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other comprehensive (loss) income | (169) | 665 |
|  Total comprehensive income | 55250 | 28255 |
|  Less: Comprehensive income attributable to non-controlling interest | 7457 | 10888 |
|  Comprehensive income attributable to controlling interest | $47793 | $17367 |
|  Earnings per share |  |  |
|  Basic | $93.57 | $34.66 |
|  Diluted | $35.79 | $12.93 |
|  Weighted average shares outstanding |  |  |
|  Basic | 513316 | 473248 |
|  Diluted | 1342017 | 1279865 |

---

(1) See Note 14 for additional information regarding related party transactions

*See accompanying Notes to the Consolidated Financial Statements.* 

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Condensed Consolidated Statements of Stockholders' Equity** 

**For the Three Months Ended March 31, 2026** 

**(Unaudited)** 

**(In thousands, except share and per share amounts)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Reciprocal<br>Subscriber**<br>**Contributions** | **Common Stock** | **Common Stock** | **Additional<br>Paid-In**<br>**Capital** | **Treasury**<br>**Stock** | **Accumulated<br>Other<br>Comprehensive<br>Income,**<br>**Net of Tax** | **Retained**<br>**Earnings** | **Total<br>Stockholders'**<br>**Equity** | **Non-<br>Controlling**<br>**Interest** | **Total<br>Equity<br>Attributable<br>to<br>Controlling**<br>**Interest** |
|  | **Reciprocal<br>Subscriber**<br>**Contributions** | **Shares** | **Amount** | **Additional<br>Paid-In**<br>**Capital** | **Treasury**<br>**Stock** | **Accumulated<br>Other<br>Comprehensive<br>Income,**<br>**Net of Tax** | **Retained**<br>**Earnings** | **Total<br>Stockholders'**<br>**Equity** | **Non-<br>Controlling**<br>**Interest** | **Total<br>Equity<br>Attributable<br>to<br>Controlling**<br>**Interest** |
|  **Balance as of December 31, 2025** | $**30040** | **512934** | $**—** | $**110448** | $**(11178)** | $**2327** | $**162083** | $**263680** | $**46535** | $**217145** |
|  Issuance of common stock |  | 800 |  |  |  |  |  |  |  |  |
|  Equity-based compensation |  |  |  | 1542 |  |  |  | 1542 |  | 1542 |
|  Other comprehensive (loss) income |  |  |  |  |  | (169) |  | (169) | 71 | (240) |
|  Common stock dividends |  |  |  |  |  |  | (49903) | (49903) |  | (49903) |
|  Refundable subscriber contributions(1) | 15007 |  |  |  |  |  |  |  |  |  |
|  Subscriber contributions | (32329) |  |  | 32329 |  |  |  | 32329 | 32329 |  |
|  Net income |  |  |  |  |  |  | 55419 | 55419 | 7386 | 48033 |
|  **Balance as of March 31, 2026** | $**12718** | **513734** | $**—** | $**144319** | $**(11178)** | $**2158** | $**167599** | $**302898** | $**86321** | $**216577** |

---

(1) The refundable subscriber contributions are presented net of $1.9 million of cancellations as of March 31, 2026

*See accompanying Notes to the Consolidated Financial Statements.* 

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Condensed Consolidated Statements of Stockholders' Equity** 

**For the Three Months Ended March 31, 2025** 

**(Unaudited)** 

**(In thousands, except share and per share amounts)** 

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Redeemable<br>Preferred Stock** | **Redeemable<br>Preferred Stock** | **Reciprocal<br>Subscriber**<br>**Contributions** | **Common Stock** | **Common Stock** | **Additional<br>Paid-In**<br>**Capital** | **Treasury**<br>**Stock** | **Accumulated<br>Other<br>Comprehensive<br>Income,**<br>**Net of Tax** | **Retained**<br>**Earnings** | **Total<br>Stockholders'**<br>**Equity** | **Non-<br>Controlling**<br>**Interest** | **Total<br>Equity<br>Attributable<br>to<br>Controlling**<br>**Interest** |
|  | **Shares** | **Amount** | **Reciprocal<br>Subscriber**<br>**Contributions** | **Shares** | **Amount** | **Additional<br>Paid-In**<br>**Capital** | **Treasury**<br>**Stock** | **Accumulated<br>Other<br>Comprehensive<br>Income,**<br>**Net of Tax** | **Retained**<br>**Earnings** | **Total<br>Stockholders'**<br>**Equity** | **Non-<br>Controlling**<br>**Interest** | **Total<br>Equity<br>Attributable<br>to<br>Controlling**<br>**Interest** |
|  **Balance as of December 31, 2024** | **114622** | $**9841** | $**15418** | **472797** | $**—** | $**53393** | $**(799)** | $**801** | $**28664** | $**82059** | $**(4727)** | $**86786** |
|  Issuance of common stock |  |  |  | 700 |  |  |  |  |  |  |  |  |
|  Equity-based compensation |  |  |  |  |  | 675 |  |  |  | 675 |  | 675 |
|  Other comprehensive income (loss) |  |  |  |  |  |  |  | 665 |  | 665 | (148) | 813 |
|  Preferred stock dividends |  |  |  |  |  |  |  |  | (150) | (150) |  | (150) |
|  Common stock dividends |  |  |  |  |  |  |  |  | (31720) | (31720) |  | (31720) |
|  Refundable subscriber contributions(1) |  |  | 11892 |  |  |  |  |  |  |  |  |  |
|  Subscriber contributions |  |  | (16342) |  |  | 16342 |  |  |  | 16342 | 16342 |  |
|  Net income |  |  |  |  |  |  |  |  | 27590 | 27590 | 11036 | 16554 |
|  **Balance as of March 31, 2025** | **114622** | $**9841** | $**10968** | **473497** | $**—** | $**70410** | $**(799)** | $**1466** | $**24384** | $**95461** | $**22503** | $**72958** |

---

(1) The refundable subscriber contributions are presented net of $1.8 million of cancellations as of March 31, 2025

*See accompanying Notes to the Consolidated Financial Statements.* 

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Condensed Consolidated Statements of Cash Flows** 

**(Unaudited)** 

**(In thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months<br>Ended March 31,<br>2026** | **Three Months<br>Ended March 31,<br>2025** |
|  **Operating activities** |  |  |
|  Net income | $55419 | $27590 |
|  Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 919 | 840 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt issuance costs | 274 | 72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of bond premium and discount, net | (60) | (218) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of equity-based compensation | 1542 | 675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on debt extinguishment |  | 8873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized loss on investments | 400 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gain on investments | (1457) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | (6503) | 303 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverable | 3721 | (6886) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid reinsurance premiums | 13199 | 26033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income taxes | 17250 | 8820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (246) | 202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | (39460) | (17416) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid loss and loss adjustment expenses | 9846 | 8139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | (46387) | (5014) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance premiums | 17858 | 15035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed reinsurance receivable | 27881 | 78841 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance payable | 30228 | 16976 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | (1312) | 145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held with reinsurers | (12322) | (4553) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commission payable | 2580 | 4723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest payable(1) | 196 | (858) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 878 | 1649 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 1436 | 908 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 75880 | 164879 |
|  **Investing activities** |  |  |
|  Purchases of fixed-maturity securities available for sale | (11081) | (8022) |
|  Proceeds from sales and maturities of fixed-maturity securities available for sale | 6414 | 3014 |
|  Purchases of equity securities | (22) |  |
|  Proceeds from sales of equity securities |  | 12 |
|  Purchases of other invested assets | (15000) |  |
|  Cost of property and equipment acquired | (398) | (273) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | (20087) | (5269) |
|  **Financing activities** |  |  |
|  Principal payments on notes payable | (3125) | (2500) |
|  Common stock dividends | (49903) | (31720) |
|  Preferred stock dividends(1) |  | (150) |
|  Issuance of long-term debt(1) |  | 100000 |
|  Payoff of notes payable principal |  | (31130) |
|  Reciprocal subscriber contributions received | 16932 | 13698 |
|  Reciprocal subscriber contributions refunded | (1925) | (1806) |
|  Debt issuance costs |  | (2104) |
|  Outstanding checks in excess of funds on deposit | (945) | (2336) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash (used in) provided by financing activities | (38966) | 41952 |
|  **Net increase in cash and cash equivalents** | 16827 | 201562 |
|  **Cash, cash equivalents, and restricted cash at beginning of period** | 650723 | 261718 |
|  **Cash, cash equivalents, and restricted cash at end of period** | $667550 | $463280 |
|  Supplemental disclosures of cash flow information: |  |  |
|  Interest paid | $2612 | $— |
|  Noncash investing activities |  |  |
|  Other invested asset purchases included in other liabilities | $7925 | $— |

---

(1) See Note 14 for additional information regarding related party transactions

*See accompanying Notes to the Consolidated Financial Statements.* 

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Unaudited Condensed Consolidated Financial Statements** 

**Note 1 – Nature of Operations and Significant Accounting Policies** 

***Organization and Description of the Company***

Safepoint Holdings, Inc. (individually and together with its subsidiaries, "SPH" and "the Company") is an insurance underwriting services platform, focused on delivering catastrophe-exposed property insurance predominantly in Florida, Louisiana, and other U.S. Gulf Coast states. The Company's platform is supported by SPH and certain SPH subsidiaries. Insurance operations are underwritten by Safepoint Insurance Company ("SPI"), which is licensed to write admitted business in Florida, Louisiana, Texas, Mississippi, Alabama, and New Jersey. SPH's wholly owned subsidiary, Cajun Underwriters Risk Management, LLC ("CURM"), serves as the Attorney-in-Fact ("AIF") for Cajun Underwriters Reciprocal Exchange ("Cajun"), a reciprocal exchange owned by its policyholders licensed to write business in Louisiana and Alabama. SPH's wholly owned subsidiary, Manatee Risk Management, LLC ("MRM"), serves as the AIF for Manatee Insurance Exchange ("Manatee"), a reciprocal exchange owned by its policyholders licensed to write business in Florida. Although the Company does not have any equity interest in Cajun or Manatee, the Company is required to consolidate Cajun and Manatee, both of which qualify as variable interest entities ("VIEs"). In addition, the Company has servicing subsidiaries to support the Insurance Operations of SPI and the fee business derived from the AIF. These wholly owned subsidiaries are Safepoint MGA, LLC ("SPM") and Insight Risk Solutions, LLC ("Insight"). In addition, the Company has three wholly owned subsidiaries domiciled in Bermuda to support the platform: Pompano Re Ltd. ("Pompano"), Canal Re Ltd. ("Canal"), and Bobcat Re Ltd. ("Bobcat").

***Basis of Presentation***

The accompanying Condensed Consolidated Financial Statements for SPH and its wholly-owned subsidiaries are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. As such, the disclosures provided herein should be read in conjunction with the Company's latest annual financial statements. In the opinion of management, the Condensed Consolidated Financial Statements reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company's financial position as of March 31, 2026. All intercompany transactions and balances are eliminated in consolidation. Interim results are not necessarily indicative of results of operations for the full year.

*Principles of Consolidation* 

The accompanying Condensed Consolidated Financial Statements reflect the consolidation of the Company with its wholly owned subsidiaries and all entities for which it holds a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships or investments for consolidation pursuant to authoritative accounting guidance related to the consolidation of VIEs under the Variable Interest Model prescribed by the Financial Accounting Standards Board ("FASB"). A VIE is consolidated when the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. When a VIE is not consolidated, the Company uses the equity method to account for the investment. Under this method, the carrying value is generally the Company's share of the net

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 1 – Nature of Operations and Significant Accounting Policies (Continued)** 

asset value of the unconsolidated entity, and changes in the Company's share of the net asset value are recorded in net investment income. See *Note 7* – *Variable Interest Entity* for further information.

*Use of Estimates* 

The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

*Other Invested Assets* 

The Company holds investments in participating notes issued by a Bermuda-domiciled special purpose insurer , acting in respect of its segregated account. The investments represent the Company's participation in unaffiliated reinsurance treaties within Other Invested Assets on the Consolidated Balance Sheet. The Company measures the investments at fair value on a recurring basis at each reporting date and changes in the fair value of the investments are recognized within Net Investment Income on the Condensed Consolidated Statements of Comprehensive Income.

*Reclassifications* 

Certain reclassifications of prior year amounts have been made to conform to the current year presentation.

*Recent Accounting Pronouncements* 

*Newly Adopted Accounting Standards* 

The FASB issued ASU 2025-05, *Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets.* This update simplifies the estimation of current expected credit losses on current accounts receivable and current contract assets related to revenue from contracts with customers by allowing all entities to assume that current conditions as of the balance sheet date will not change for the remaining life of the current accounts receivable and current contract assets. ASU 2025-05 is effective for all entities for fiscal years and interim periods beginning after December 15, 2025. Early adoption is permitted. The Company adopted this update during the three months ended March 31, 2026 and noted that there was an immaterial impact upon adoption.

*Recently Issued Accounting Standards* 

The FASB issued ASU 2025-01, *Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date* in January 2025. This update clarifies the effective date of ASU 2024-03, *Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*, which was issued by the FASB in November 2024. For public business entities, ASU 2024-03 enhances disclosures by requiring the disaggregation of certain expense captions presented within the income statement, such as

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 1 – Nature of Operations and Significant Accounting Policies (Continued)** 

employee compensation and intangible asset amortization. In addition, the total relevant expense caption on the income statement must be reconciled to the aggregate of the separately disclosed expense categories with the difference represented by an "other items" amount which is qualitatively described. ASU 2024-03 is effective for all public business entities for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating its impact.

The FASB issued ASU 2025-10, *Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities* in December 2025. This update establishes authoritative guidance for the recognition, measurement, presentation, and disclosure of government grants received by business entities. ASU 2025-10 is effective for public business entities for fiscal years and interim periods beginning after December 31, 2028. Early adoption is permitted. The Company is evaluating its impact.

**Note 2 – Investments** 

The amortized cost and fair value of securities available for sale are summarized as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Amortized<br>Cost** | **Gross<br>Unrealized<br>Gains** | **Gross<br>Unrealized<br>Losses** | **Fair Value** |
|  **As of March 31, 2026:** |  |  |  |  |
|  U.S. Government and government agencies | $8076 | $802 | $— | $8878 |
|  Corporate bonds | 70815 | 1312 | (131) | 71996 |
|  Mortgage-backed securities | 4108 | 478 | (5) | 4581 |
|  States, municipalities and political subdivisions | 40907 | 158 | (258) | 40807 |
|  Total fixed-maturity securities | $123906 | $2750 | $(394) | $126262 |
|  Total equity securities | 128 |  |  | 128 |
|  Total other invested assets | 22925 | 1057 |  | 23982 |
|  Total investments | $146959 | $3807 | $(394) | $150372 |
|  | **Amortized<br>Cost** | **Gross<br>Unrealized<br>Gains** | **Gross<br>Unrealized<br>Losses** | **Fair Value** |
|  **As of December 31, 2025:** |  |  |  |  |
|  U.S. Government and government agencies | $8045 | $845 | $— | $8890 |
|  Corporate bonds | 64834 | 1665 | (148) | 66351 |
|  Mortgage-backed securities | 4634 | 497 | (60) | 5071 |
|  States, municipalities and political subdivisions | 41285 | 259 | (61) | 41483 |
|  Total fixed-maturity securities | $118798 | $3266 | $(269) | $121795 |
|  Total equity securities | 106 |  |  | 106 |
|  Total investments | $118904 | $3266 | $(269) | $121901 |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 2 – Investments (Continued)** 

A summary of the aggregate fair values of securities available for sale with unrealized losses segregated by time period in an unrealized loss position is as follows (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Less Than 12 Months** | **Less Than 12 Months** | **12 Months or<br>Greater** | **12 Months or<br>Greater** | **Total** | **Total** |
|  | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized<br>Losses** |
|  **As of March 31, 2026:** |  |  |  |  |  |  |
|  Corporate bonds | $45582 | $(131) | $— | $— | $45582 | $(131) |
|  Mortgage-backed securities | 704 | (5) |  |  | 704 | (5) |
|  States, municipalities and political subdivisions | 36477 | (255) | 132 | (3) | 36609 | (258) |
|  Total fixed-maturity securities | 82763 | (391) | 132 | (3) | 82895 | (394) |
|  Total investments | $82763 | $(391) | $132 | $(3) | $82895 | $(394) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Less Than 12 Months** | **Less Than 12 Months** | **12 Months or<br>Greater** | **12 Months or<br>Greater** | **Total** | **Total** |
|  | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized<br>Losses** |
|  **As of December 31, 2025:** |  |  |  |  |  |  |
|  Corporate bonds | $39653 | $(148) | $— | $— | $39653 | $(148) |
|  Mortgage-backed securities | 1090 | (60) |  |  | 1090 | (60) |
|  States, municipalities and political subdivisions | 30950 | (57) | 141 | (4) | 31091 | (61) |
|  Total fixed-maturity securities | 71693 | (265) | 141 | (4) | 71834 | (269) |
|  Total investments | $71693 | $(265) | $141 | $(4) | $71834 | $(269) |

---

The Company evaluates its securities for impairment on a quarterly basis. The Company evaluated its fixed-maturity securities in an unrealized loss position and concluded that the unrealized losses are due primarily to temporary market and sector-related factors rather than to issuer-specific factors, and the issuers of the fixed-maturity securities in which the Company invests continue to make interest payments on a timely basis. The Company does not intend to sell nor is it likely that it would be required to sell the fixed-maturity securities before the Company recovers its amortized cost basis.

As of March 31, 2026, there were 23 securities in an unrealized loss position, one of which had been in an unrealized loss position for 12 months or greater. As of December 31, 2025, there were 21 securities in an unrealized loss position, one of which had been in an unrealized loss position for 12 months or greater. The Company determined that no credit impairment existed in the gross unrealized holding losses because the credit ratings of these securities were consistent with the credit ratings when purchased and/or at origination, there were no adverse changes in financial condition of the issuer and no adverse credit quality events in underlying assets. The Company attributed the unrealized losses to the changes in interest rates.

The expected maturities of fixed-maturity securities available for sale may differ from the contractual maturities because certain borrowers have the right to call or prepay obligations

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 2 – Investments (Continued)** 

with or without call or prepayment penalties. The amortized cost and fair value of fixed-maturity securities available for sale, by contractual maturity, is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Amortized Cost** | **Fair Value** |
|  **As of March 31, 2026:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due in one year or less | $74179 | $74383 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after one year through five years | 34117 | 35024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after five years through ten years | 2359 | 2614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after ten years | 9143 | 9660 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage-backed securities | 4108 | 4581 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $123906 | $126262 |

---

---

| | | |
|:---|:---|:---|
|  | **Amortized Cost** | **Fair Value** |
|  **As of December 31, 2025:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due in one year or less | $68113 | $67922 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after one year through five years | 27043 | 27987 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after five years through ten years | 7179 | 7815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after ten years | 11830 | 13000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage-backed securities | 4633 | 5071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $118798 | $121795 |

---

For the three months ended March 31, 2026 and 2025, the Company received $12.7 million and $318.7 million in proceeds related to the sales of fixed-maturity securities, equity securities and cash and cash equivalents. The Company recognized $0.4 million of gross realized loss on sales of securities and an immaterial gross realized gain for the three months ended March 31, 2026 and 2025, respectively.

Major categories of the Company's net investment income are summarized below for the three months ended March 31, 2026 and 2025 were as follows *(*in thousands):

---

| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **March 31,<br>2025** |
|  Fixed-maturity securities | $1239 | $614 |
|  Equity securities | 2 | 2 |
|  Cash and cash equivalents | 5325 | 3837 |
|  Other invested assets | 1457 |  |
|  Investment expenses | (34) | (8) |
|  Total | $7989 | $4445 |

---

**Note 3 – Fair Value Measurements** 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 3 – Fair Value Measurements (Continued)** 

available. Assets and liabilities recorded on the Condensed Consolidated Balance Sheets at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market.

Level 2: Assets and liabilities whose values are based on the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Quoted prices for similar assets or liabilities in active markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Quoted prices for identical or similar assets or liabilities in markets that are not active;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or
liability.

Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect our estimates of the assumptions that market participants would use in valuing the assets and liabilities.

The tables below present the Company's fair value hierarchy of financial instruments measured at fair value on a recurring basis (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Total** | **Level 1** | **Level 2** | **Level 3** |
|  **Assets:** |  |  |  |  |
|  U.S. Government and government agencies | $8878 | $— | $8878 | $— |
|  Corporate bonds | 71996 |  | 71996 |  |
|  Mortgage-backed securities | 4581 |  | 4581 |  |
|  State, municipalities and political subdivisions | 40807 |  | 40807 |  |
|  Total fixed-maturity securities | $126262 | $— | $126262 | $— |
|  Common stocks | 128 | 128 |  |  |
|  Total equity securities | 128 | 128 |  |  |
|  Total other invested assets | 23982 |  |  | 23982 |
|  Total investments | $150372 | $128 | $126262 | $23982 |
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Total** | **Level 1** | **Level 2** | **Level 3** |
|  U.S. Government and government agencies | $8890 | $— | $8890 | $— |
|  Corporate bonds | 66351 |  | 66351 |  |
|  Mortgage-backed securities | 5071 |  | 5071 |  |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 3 – Fair Value Measurements (Continued) (Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Total** | **Level 1** | **Level 2** | **Level 3** |
|  State, municipalities and political subdivisions | 41483 |  | 41483 |  |
|  Total fixed-maturity securities | $121795 | $— | $121795 | $— |
|  Common stocks | 106 | 106 |  |  |
|  Total equity securities | 106 | 106 |  |  |
|  Total investments | $121901 | $106 | $121795 | $— |

---

**Changes in Level 3 Assets** 

The following table describes changes in the fair value of Level 3 assets as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to these assets still held at the end of their respective periods. When a determination is made to classify assets within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement.

*Other Invested Assets* 

---

| | |
|:---|:---|
|  | **Total** |
|  Balance as of December 31, 2025 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases | 22925 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains | 1057 |
|  Balance as of March 31, 2026 | $23982 |

---

***Other Financial Instruments***

*Other Invested Assets* 

The Company holds investments in participating notes (the "Notes") issued by a Bermuda domiciled special purpose insurer, acting in respect of its segregated account (the "Cell"). These investments represent participation in unaffiliated reinsurance treaties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Series 2026-1 Notes: Dated January 1, 2026, with an original principal amount
of $15.0 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Series 2026-2 Notes: Dated March 1, 2026, with an original principal amount of
$10.0 million and an initial funding commitment of $7.9 million

The Notes are secured by assets held in a reinsurance trust account, primarily consisting of money market fund investments and cash. Recourse is strictly limited to the assets linked to the Cell. Primary risks include the potential loss of principal and interest if loss occurrences result in reinsurance payments. The Notes are redeemable on the maturity date, defined as the date on which no further reinsurance or reimbursement obligations are outstanding. Assets generally cannot be released from the trust account until they exceed required collateral levels or until the termination of all liabilities under the reinsurance agreement.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 3 – Fair Value Measurements (Continued) (Continued)** 

These underlying assets are liquidated to satisfy obligations. If a rollover option is not elected (by December 11, 2026, for Series 2026-1 or January 31, 2027, for Series 2026-2), funds remain in the trust account pending distribution. There are no unfunded commitments for Series 2026-1. For Series 2026-2, the remaining $2.1 million of the original principal amount is expected to be satisfied through the collection of premiums. Transfers are limited to eligible noteholders, defined as "Qualified Institutional Buyers" and "Qualified Purchasers", and require prior written consent from the issuer.

The following table summarizes the quantitative information related to the Company's financial assets and methods used in estimating their fair values:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Maturity<br>Date** | **Valuation Methodology** | **Unobservable Input** | **Range** | **Impact of<br>increase in<br>input on<br>fair value** |
|  Other invested assets | 2026 | Income approach, Level 3 inputs | Expected ultimate loss ratio | 28% -45% | Decrease |

---

The Company measures the fair value of its investments in the Notes using an income approach that is based on the estimated economic value of the underlying reinsurance contracts. As of March 31, 2026, the fair value of the Series 2026-1 Note is $16.1 million, reflecting inception-to-date net premiums and interest income offset by applicable estimates for loss reserves, commissions, and other operational expenses. The Series 2026-2 Note is carried at a fair value of $7.9 million. While the note purchase agreement was executed on March 1, 2026, the actual cash funding of the initial commitment did not occur until April 2026, subsequent to the reporting date. Consequently, as of March 31, 2026, the Company has recognized an other liability representing its present contractual obligation to fund the investment.

In accordance with ASC 820, the Company has determined that the initial transaction price of $7.9 million represents the best estimate of fair value at the reporting date. This determination is based on the proximity of the execution date and the assessment that the transaction price resulted from an orderly transaction between market participants in the principal market for such Notes.

The Company intends to hold the Notes until maturity or participate in a rollover into subsequent series (Series 2027-1 and Series 2027-2) if the options are exercised.

*Long-Term Debt* 

The following table summarizes components of the Company's long-term debt and methods used in estimating their fair values:

---

| | | |
|:---|:---|:---|
|  | **Maturity<br>Date** | **Valuation Methodology** |
|  Term Loan, 7% | 2030 | Discounted cash flow method, Level 3 inputs |
|  Subordinated Surplus Notes, 8% | 2042 | Market approach method, Level 3 inputs |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 3 – Fair Value Measurements (Continued) (Continued)** 

The following tables present fair value information for financial liabilities that are carried on the Condensed Consolidated Balance Sheets (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Carrying<br>Value** | **Level 1** | **Level 2** | **Level 3** | **Estimated<br>Fair Value** |
|  **Financial Liabilities:** |  |  |  |  |  |
|  Long-Term Debt |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7% Term Loan | $113125 | $— | $— | $105000 | $105000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8% Subordinated Surplus Notes | 10000 |  |  | 10000 | 10000 |
|  Total Long-Term Debt | $123125 | $— | $— | $115000 | $115000 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Carrying<br>Value** | **Level 1** | **Level 2** | **Level 3** | **Estimated<br>Fair Value** |
|  **Financial Liabilities:** |  |  |  |  |  |
|  Long-Term Debt |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7% Term Loan | $116250 | $— | $— | $112563 | $112563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8% Subordinated Surplus Notes | 10000 |  |  | 10000 | 10000 |
|  Total Long-Term Debt | $126250 | $— | $— | $122563 | $122563 |

---

**Note 4 – Intangible Assets** 

In connection with the business combination of Cajun and CUH, the carrying value of indefinite-lived intangible assets and definite-lived intangible assets subject to amortization and accumulated amortization consisted of the following (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| **Intangible Asset** | **Gross<br>Carrying<br>Value** | **Accumulated<br>Amortization** | **Net<br>Carrying<br>Value** | **Weighted<br>Average<br>Remaining<br>Useful Life** |
|  Broker relationships | $5300 | $(681) | $4619 | 18.3 |
|  Policyholder relationships | 15000 | (2642) | 12358 | 12.8 |
|  Trade names | 2500 | (690) | 1810 | 7.5 |
|  Technology | 4000 | (1321) | 2679 | 5.8 |
|  State licenses | 750 |  | 750 | Indefinite |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | $27550 | $(5334) | $22216 |  |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 4 – Intangible Assets (Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Intangible Asset** | **Gross<br>Carrying<br>Value** | **Accumulated<br>Amortization** | **Net<br>Carrying<br>Value** | **Weighted<br>Average<br>Remaining<br>Useful Life** |
|  Broker relationships | $5300 | $(616) | $4684 | 18.5 |
|  Policyholder relationships | 15000 | (2391) | 12609 | 13.0 |
|  Trade names | 2500 | (624) | 1876 | 7.7 |
|  Technology | 4000 | (1196) | 2804 | 6.0 |
|  State licenses | 750 |  | 750 | Indefinite |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | $27550 | $(4827) | $22723 |  |

---

For the three months ended March 31, 2026 and March 31, 2025, aggregate amortization expense associated with intangible assets was $0.5 million and $0.5 million, respectively. Amortization expense for intangible assets after March 31, 2026 is as follows (in thousands):

---

| | |
|:---|:---|
| **Year** | **Amount** |
|  2026 (remaining) | $1515 |
| 2027 | 2022 |
| 2028 | 2022 |
| 2029 | 2022 |
| 2030 | 2022 |
|  Thereafter | 11863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $21466 |

---

**Note 5 – Unpaid Losses and Loss Adjustment Expenses** 

The following table provides a reconciliation of beginning and ending reserve balances for losses and LAE (in thousands):

---

| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **December 31,<br>2025** |
|  Loss and LAE reserves at beginning of period | $152167 | $145221 |
|  Less: anticipated reinsurance recoverable on unpaid losses and LAE | 49401 | 62750 |
|  Net Loss and LAE at beginning of period | 102766 | 82471 |
|  Losses and LAE incurred related to: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current year | 45909 | 147234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior years | (418) | (1959) |
|  Total incurred | 45491 | 145275 |
|  Losses and LAE paid related to: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current year | 10964 | 70250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior years | 19984 | 54730 |
|  Total Paid | 30948 | 124980 |
|  Net loss and LAE reserves at end of period | 117726 | 102766 |
|  Plus: anticipated reinsurance recoverable on unpaid losses and LAE | 44287 | 49401 |
|  Loss and LAE reserves at end of period | $162013 | $152167 |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 5 – Unpaid Losses and Loss Adjustment Expenses (Continued)** 

The establishment of loss and LAE reserves is an inherently uncertain process and changes in loss and LAE reserve estimates are expected as these estimates are subject to the outcome of future events. Changes in estimates, or differences between estimates and amounts ultimately paid, are reflected in the operating results of the period during which such adjustments are adjusted. During the three months ended March 31, 2026 and 2025, the Company recognized favorable development of losses related to prior years of approximately $0.4 million and $2.0 million, primarily due to reductions in reserves for reported claims, as well as lower than anticipated claims emergence.

**Note 6– Reinsurance** 

Certain premiums and benefits are ceded to other insurance companies under various reinsurance agreements. The reinsurance agreements allow the Company to limit its exposure to loss catastrophic events.

The Company's reinsured risks are treated, to the extent of reinsurance, as though they are risks for which the Company is not liable. However, the Company remains contingently liable in the event the reinsuring companies do not meet their obligations under these reinsurance contracts. The Company establishes its valuation allowance for uncollectible reinsurance based on a case-by-case analysis of individual situations, including credit quality, collateral balances, and the merits of underlying matters, but given the high quality of the reinsuring companies, management believes this possibility to be remote.

The effects of reinsurance on premiums written and earned are as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Premiums<br>Written** | **(Increase)<br>Decrease in<br>Unearned<br>Premiums** | **Premiums<br>Earned** |
|  **Three Months Ended March 31, 2026:** |  |  |  |
|  Direct | $162881 | $11314 | $174195 |
|  Assumed | 21253 | 35073 | 56326 |
|  Ceded | (61588) | (14444) | (76032) |
|  Net | $122546 | $31943 | $154489 |
|  | **Premiums<br>Written** | **(Increase)<br>Decrease in<br>Unearned<br>Premiums** | **Premiums<br>Earned** |
|  **Three Months Ended March 31, 2025:** |  |  |  |
|  Direct | $124310 | $(9428) | $114882 |
|  Assumed | 59015 | 14443 | 73458 |
|  Ceded | (59070) | (24306) | (83376) |
|  Net | $124255 | $(19291) | $104964 |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 6– Reinsurance (Continued)** 

The Company's reinsurance arrangements, excluding the Florida and Louisiana Citizens assumptions, decreased certain items in the accompanying Condensed Consolidated Financial Statements by the following amounts (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Three Months<br>Ended**<br>**March 31,<br>2026:** | **Three Months<br>Ended**<br>**March 31,<br>2025:** |
|  Ceded earned premiums | $(76032) | $(83376) |
|  Losses and loss adjustment expenses incurred | 720 | (11185) |
|  Policy acquisition costs, net of ceding commission | (93) | (4014) |

---

**Note 7– Variable Interest Entities** 

The Reciprocal Exchanges' assets are legally restricted for the purpose of fulfilling obligations specific to the Reciprocal Exchanges. In addition to the Reciprocal Exchanges, the Company is the primary beneficiary of Shuriken I, L.P., a Delaware limited partnership (the "Shuriken Fund") and certain other VIEs that are, individually and in the aggregate, immaterial to the Company's Condensed Consolidated Financial Statements. The following table summarizes the assets and liabilities related to the Company's VIEs, which are included in the accompanying Condensed Consolidated Balance Sheets as of March 31, 2026 and 2025 (in thousands):

---

| | | |
|:---|:---|:---|
| *(in thousands)* | **Variable Interest Entities** | **Variable Interest Entities** |
|  | **March 31,<br>2026** | **December 31,<br>2025** |
|  Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed-maturity securities, available for sale, at fair value | $52402 | $48853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 337294 | 269376 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash | 2443 | 2651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | 21758 | 15421 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverable | 6696 | 7345 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid reinsurance premiums | 63888 | 77333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed reinsurance receivable, net | 375 | 28726 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net | 344 | 319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax asset, net | 2456 | 2335 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held with reinsurers | 14052 | 12112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred policy acquisition costs, net | 32455 | 33019 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | (1765) | (1788) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 35980 | 1855 |
|  Total assets | $568378 | $497557 |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 7– Variable Interest Entities (Continued)** 

---

| | | |
|:---|:---|:---|
| *(in thousands)* | **Variable Interest Entities** | **Variable Interest Entities** |
|  | **March 31,<br>2026** | **December 31,<br>2025** |
|  Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | $89210 | $76249 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 375504 | 417184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance premiums | 22243 | 5580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 345 | 1555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions payable | 5775 | 3418 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Checks issued in excess of funds | 1238 | 1598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax payable, net | 4742 | 1902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt | 10000 | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest payable | 1733 | 1575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance payable | 40843 | 13983 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 6174 | 2100 |
|  Total liabilities | $557807 | $535144 |

---

The intangible assets, net, included in the VIEs' assets, are the broker relationships in connection with Cajun. Additionally, certain intercompany payables between the VIEs and SPH, including intercompany surplus notes, eliminate upon consolidation, and therefore are not included within the VIEs' liabilities above.

**Note 8– Income Taxes** 

The Company calculates its tax provision in interim periods using its best estimate of the effective tax rate expected for the full year.

For the three months ended March 31, 2026 and 2025, the Company recorded income tax expense of $17.3 million and $8.8 million, respectively. The effective tax rate was approximately 23.7% for the three months ended March 31, 2026, compared to 24.2% for the three months ended March 31, 2025. The effective tax rate for the three months ended March 31, 2026 differs from the statutory tax rate of 21.0% primarily due to state taxes and an increase in the valuation allowance, partially offset by tax benefits from equity compensation. The effective tax rate for the three months ended March 31, 2025 differs from the statutory tax rate of 21.0% primarily due to state taxes and an increase in the valuation allowance, partially offset by tax benefits from equity compensation.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 9– Long-Term Debt** 

The following table summarizes the Company's long-term debt (in thousands):

---

| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **December 31,<br>2025** |
|  7% Term Loan, due February 18, 2030 | $113125 | $116250 |
|  8% Subordinated Surplus Notes, December 31, 2042 (a) | 10000 | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total principal amount | 123125 | 126250 |
|  Less: unamortized issuance costs | (2763) | (2938) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total long-term debt | $120362 | $123312 |

---

(a) Notes issued by Cajun and Manatee

The following table summarizes the future maturities of long-term debt as of March 31, 2026, which takes into consideration the assumption that the outstanding notes are repurchased at their respective earliest call dates (in thousands):

---

| | |
|:---|:---|
| **Year** | **Amount** |
|  2026 (remaining) | $9375 |
| 2027 | 12500 |
| 2028 | 12500 |
| 2029 | 12500 |
| 2030 | 66250 |
|  Thereafter | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $123125 |

---

The information with respect to interest expense related to long-term debt is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **March 31,<br>2025** |
|  Interest Expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contractual interest | $2209 | $1684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt issuance costs | 274 | 72 |
|  Total | $2483 | $1756 |

---

*Revolving Credit Agreement* 

On February 18, 2025, the Company entered into a revolving credit agreement ("Credit Agreement") comprising of a $100.0 million term loan, a $25.0 million revolving loan facility, and a $15.0 million delayed draw term loan. On August 15, 2025, the Credit Agreement was amended to increase the revolving loan facility to $75.0 million and increase the delayed draw term loan to $115.0 million.

Under the terms of the Credit Agreement, the term loan bears interest at Secured Overnight Financing Rate plus 3.25% and matures on February 18, 2030, with an effective interest rate of 7% as of March 31, 2026. The agreement includes customary covenants and conditions.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 9– Long-Term Debt (Continued)** 

During the three months ended March 31, 2026, the Company made aggregate repayments of $3.1 million. As of March 31, 2026, $90.0 million was outstanding under the term loan, $23.1 million was drawn for the delayed draw term loan, and no amount was drawn under the revolving loan facility. As of March 31, 2026, the Company was in compliance with all required covenants.

**Note 10 – Commitments and Contingencies** 

The Company is named defendant in various legal actions arising in the normal course of business from claims made under insurance policies and contracts. These actions are considered by the Company in estimating the loss and LAE reserves. The Company's management believes that the resolution of these actions will not have a material adverse effect on the Company's financial position or results of operations.

*Obligations under Multi-Year Reinsurance Contracts* 

As of March 31, 2026, the Company has contractual obligations related to several multi-year reinsurance contracts with Nature Coast Re, Ltd, a special purpose vehicle established in Bermuda. These contracts allow the Company to transfer catastrophe-related insurance risks to capital market investors, providing collateralized protection against named storms in the covered areas. At each annual renewal, the Company may choose to terminate the contracts at its sole discretion with at least ten days' notice to Nature Coast Re, Ltd.

**Note 11 – Stockholders' Equity** 

*Restricted Stock Awards* 

The Company's Employee Equity-Based Compensation Plan ("the Plan"), which became effective in 2013, is shareholder approved and grants shares of the Company to certain employees. There were no modifications to the Plan during the three months ended March 31, 2026.

Information with respect to the activity of unvested restricted stock awards during the three months ended March 31, 2026 is as follows:

---

| | | |
|:---|:---|:---|
|  |<br>**Shares** | **Weighted — Average**<br>**Grant Date**<br>**Fair Value** |
|  Outstanding at December 31, 2025 | 807300 | $14.77 |
|  Granted |  |  |
|  Vested |  |  |
|  Forfeited | (20000) | 102.76 |
|  Outstanding at March 31, 2026 | 787300 | $12.53 |

---

As of March 31, 2026, there was $1.7 million of total unrecognized compensation cost related to unvested equity-based compensation granted under the plan. The amortization expense recognized on unvested shares during the three months ended March 31, 2026 and 2025, was $0.4 million and $0.7 million, respectively. Amortization expense recognized on unvested shares is recognized as General and Administrative Expense on the Condensed Consolidated Statements of Comprehensive Income.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 11 – Stockholders' Equity (Continued)** 

*Redeemable Preferred Stock* 

During the year ended December 31, 2025, the Company completed the redemption and conversion of the outstanding Redeemable Preferred Stock into the Company's common stock in accordance with the terms of the preferred stock agreements. As a result, there is no outstanding Redeemable Preferred Stock as of March 31, 2026 and December 31, 2025.

*Detachable Warrants* 

On October 6, 2023, the Company issued detachable warrants, which provide the holders the right to purchase 70,404 shares of the Company's common stock at an exercise price of $177.55 per share. The warrants are exercisable beginning on October 6, 2023, and expire on October 6, 2033.

The issuance of these detachable warrants was accounted for separately from the debt securities in accordance with ASC 470-20. The fair value of the warrants on the issuance date was $0.1 million.

If the warrants are exercised, the Company will issue new shares of common stock and receive proceeds of $177.55 per share. As of March 31, 2026, none of the warrants have been exercised.

As of March 31, 2026, there were 70,404 detachable warrants outstanding to purchase shares of the Company's common stock.

*Stock Options* 

The following table summarizes the activity of the stock options:

---

| | | | |
|:---|:---|:---|:---|
|  | **Options** | **Weighted Average<br>Exercise Price** | **Weighted Average<br>Remaining<br>Contractual Term** |
|  Outstanding at January 1, 2026 | 252078 | $1692.86 | 10.0 years |
|  Expirations |  |  |  |
|  Exercised |  |  |  |
|  Issued |  |  |  |
|  Outstanding at March 31, 2026 | 252078 | $1692.86 | 9.8 years |

---

The amortization expense recognized on stock options during the three months ended March 31, 2026 was $1.2 million. Amortization expense recognized on stock options is recognized as General and Administrative Expense on the Condensed Consolidated Statements of Comprehensive Income. As of March 31, 2026, there was $19.6 million of unrecognized compensation expense related to stock options.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 12 – Segment Information** 

The Company generates revenue primarily through fees from providing insurance services to the reciprocal exchanges and underwriting revenue from the Company's risk-bearing entities. The Company evaluates ongoing economic and operating activities primarily through management of components of its operations primarily focused on its insurance production and underwriting results.

The Company has three operating segments: Insurance Services, Risk-bearing Entities, and Reciprocal Exchanges.

The Insurance Services segment mainly consists of Cajun AIF and Manatee AIF, as the attorneys-in-fact of the Reciprocal Exchanges, respectively, which manage the reciprocals' operations in exchange for a management fee.

The Risk-bearing Entities segment consists of business written and assumed on entities owned by Safepoint shareholders, including Safepoint Insurance Company and the Company's captives. The Risk-bearing Entities segment opportunistically writes insurance and reinsurance to drive additional profitability for the Safepoint shareholders.

The Reciprocal Exchanges segment consists of the operations of Cajun and Manatee. Cajun and Manatee are unincorporated groups of members, called subscribers, licensed to write insurance and not owned by the Safepoint shareholders. The economic outcomes of the reciprocals are classified as one-hundred percent non-controlling interests. See *Note 7– Variable Interest Entities* for additional information.

Intersegment transactions are accounted for in accordance with U.S. GAAP. Intersegment eliminations are mainly comprised of ceded premium, policy fees, policy administration costs, claims management costs, and intercompany surplus note interest. All three operating segments are also the Company's three reportable segments as they meet the criteria for separate disclosure based on the internal information reviewed by the CODM. Each of these segments is evaluated individually for performance and resource allocation, aligning with the Company's internal reporting structure.

The Company has identified its Chief Executive Officer ("CEO") as the CODM, as the CEO is responsible for making strategic decisions and allocating resources across the organization. The CODM regularly reviews revenue and income (loss) before income taxes at the operating segment level to assess performance and determine resource allocation. We review our assets on a consolidated basis for decision making purposes since they support business operations across all our reportable segments as well as our corporate and other activities. Assets by operating segment are not used by the CODM for purposes of making decisions about allocating resources to the segments and assessing performance, as such, this has not been presented. Monitoring of budgeted versus actual results are used in assessing performance of the segments and in establishing management's compensation.

The Company's operations and assets are located entirely within the United States and Bermuda.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 12 – Segment Information (Continued)** 

*Segment Results* 

Management uses revenue and income (loss) before income taxes as the basis for the segment performance reviews. The following table presents the Company's operating performance by segment for the three months ended March 31, 2026 and 2025 (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
|  | **Insurance<br>Services** | **Risk-<br>bearing<br>Entities** | **Reciprocal<br>Exchanges*<sup>1</sup>*** | **Corporate &<br>Other** | **Eliminations** | **Total** |
|  Gross written premium | $— | $62356 | $156638 | $— | $(34860) | $184134 |
|  Gross earned premium |  | 102907 | 198317 |  | (70703) | 230521 |
|  Earned revenue: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net premiums earned | $— | $93328 | $61161 | $— | $— | $154489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | 1374 | 1762 | 1294 |  | (1294) | 3136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy administration income | 28667 |  |  |  | (26813) | 1854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claims management income | 5941 |  |  |  | (5941) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 72 | 4638 | 3045 | 1026 | (1193) | 7588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 96 | 529 | 363 |  | (39) | 949 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 36150 | 100257 | 65863 | 1026 | (35280) | 168016 |
|  Expenses: |  |  |  |  |  |  |
|  Losses and loss adjustment expenses | 3301 | 21551 | 26580 |  | (5941) | 45491 |
|  Policy acquisition costs, net of ceding commission |  | 29105 | 26427 |  | (35247) | 20285 |
|  General and administrative expenses | 9555 | 6832 | 901 | 9889 | (89) | 27088 |
|  Interest expense |  |  | 1317 | 2309 | (1143) | 2483 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 12856 | 57488 | 55225 | 12198 | (42420) | 95347 |
|  Income (loss) before income taxes | $23294 | $42769 | $10638 | $(11172) | $7140 | $72669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 17250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | 55419 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | 7386 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | $48033 |

---

---

| | |
|:---|:---|
| ***1*** = | The Reciprocal Exchanges receive a subscriber contribution of 10% of the policy premium which is recorded to additional paid-in capital as received. For the three months ended March 31, 2026, total contributions received were $15,007.  |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 12 – Segment Information (Continued)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
|  | **Insurance<br>Services** | **Risk-<br>bearing<br>Entities** | **Reciprocal<br>Exchanges*<sup>1</sup>*** | **Corporate &<br>Other** | **Eliminations** | **Total** |
|  Gross written premium | $— | $87528 | $164346 | $— | $(68549) | $183325 |
|  Gross earned premium |  | 103216 | 142786 |  | (57661) | 188340 |
|  Earned revenue: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net premiums earned | $— | $83035 | $21929 | $— | $— | $104964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | 796 | 517 | 1114 |  | (1114) | 1313 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy administration income | 27692 |  |  |  | (26909) | 783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claims management income | 4562 |  |  |  | (4562) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 60 | 2580 | 2336 | 572 | (1102) | 4446 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 66 | 518 | 331 |  |  | 915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 33176 | 86650 | 25710 | 572 | (33687) | 112421 |
|  Expenses: |  |  |  |  |  |  |
|  Losses and loss adjustment expenses | 2119 | 23323 | 19705 |  | (4563) | 40584 |
|  Policy acquisition costs, net of ceding commission |  | 46325 | (9967) |  | (25387) | 10971 |
|  General and administrative expenses | 7871 | 3832 | 459 | 1713 | (48) | 13827 |
|  Interest expense |  |  | 1251 | 1559 | (1054) | 1756 |
|  Loss on debt extinguishment |  |  |  | 8873 |  | 8873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 9990 | 73480 | 11448 | 12145 | (31052) | 76011 |
|  Income (loss) before income taxes | $23186 | $13170 | $14262 | $(11573) | $(2635) | $36410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 8820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | 27590 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of non-controlling interest | 11036 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | $16554 |

---

---

| | |
|:---|:---|
| ***1*** = | The Reciprocal Exchanges receive a subscriber contribution of 10% of the policy premium which is recorded to additional paid-in capital as received. For the three months ended March 31, 2025, total contributions received were $11,892.  |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 13 – Earnings Per Share** 

The following table set forth the computation of basic and dilutive earnings per share for the three months ended March 31, 2026 and 2025 (in thousands, except share and per share data):

---

| | | |
|:---|:---|:---|
|  | **Three Months**<br>**Ended<br>March 31,<br>2026** | **Three Months**<br>**Ended<br>March 31,<br>2025** |
|  **Basic earnings per share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Numerator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | $48033 | $16554 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: accumulated dividends on redeemable preferred stock |  | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to common stockholders | $48033 | $16404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Denominator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic weighted average shares outstanding | 513316 | 473248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic earnings per share | $93.57 | $34.66 |
|  **Diluted earnings per share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Numerator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income available to common stockholders | $48033 | $16404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Plus: accumulated dividends on redeemable preferred stock |  | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income available to common stockholders—diluted | $48033 | $16554 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Denominator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic weighted average shares outstanding | 513316 | 473248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of dilutive shares |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impact of unvested shares | 782008 | 783799 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impact of warrants | 46693 | 22818 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted weighted average shares outstanding | 1342017 | 1279865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share | $35.79 | $12.93 |

---

The Company had 252,078 and 11,000 of anti-dilutive shares that were excluded from the calculation of diluted weighted-average common share equivalents for the three months ended March 31, 2026 and 2025, respectively.

**Note 14 – Related Party Transactions** 

The Company's relationship with Acrisure Re ("Acrisure") is broad. Acrisure is a holder of the Company's common stock as well as investors in the surplus notes of Cajun. Acrisure is also the primary reinsurance broker for SPI, Manatee, and Cajun. The Company had an outstanding payable of $2.0 million to Acrisure as of March 31, 2026.

**Note 15 – Subsequent Events** 

The Company has evaluated subsequent events through May 8, 2026, the date these financial statements were available to be issued.

On May 2, 2026, restricted stock originally granted in May 2023 vested for certain employees. Subsequently, on May 4, 2026, the Company repurchased 53,935 shares of common stock from these employees for an aggregate price of $32.8 million. These shares were

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements (Unaudited)** 

**Note 15 – Subsequent Events (Continued)** 

surrendered by the employees to satisfy their respective statutory tax withholding obligations associated with the vesting.

On May 5, 2026, the Company entered into an amended credit agreement providing for a $600.0 million senior secured credit facility, consisting of a $200.0 million term loan, a $200.0 million delayed draw term loan, and a $200.0 million revolving credit facility. The term loan was fully drawn at closing, with a portion of the proceeds used to extinguish the $113.1 million outstanding balance under the Company's previous facility. The new facility bears interest at SOFR plus 3.00% to 3.75% per a pricing grid based on the consolidated leverage ratio and increases the permitted leverage ratio to 2.25x service company earnings before interest, taxes, depreciation and amortization ("EBITDA").

------

##### [**Table of Contents**](#toc)
**Report of Independent Registered Public Accounting Firm** 

To the Board of Directors and Stockholders of Safepoint Holdings, Inc.

***Opinion on the Financial Statements***

We have audited the accompanying consolidated balance sheets of Safepoint Holdings, Inc. and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of stockholders' equity and of cash flows for the years then ended, including the related notes and financial statement schedule listed in the accompanying index (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

April 13, 2026

We have served as the Company's auditor since 2024.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Consolidated Balance Sheet** 

**(In thousands, except per share amounts)** 

---

| | | |
|:---|:---|:---|
|  | **December 31,<br>2025** | **December 31,<br>2024** |
|  Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities, available for sale, at fair value (amortized cost of $118,798 and $62,242)(1) | $121795 | $63320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities, at fair value | 106 | 118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investments | 121901 | 63438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents(1) | 632655 | 250173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash(1) | 18068 | 11545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable, net(1) | 23144 | 20343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverable, net(1) | 53645 | 70925 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid reinsurance premiums(1) | 90720 | 115267 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed reinsurance receivable, net(1) | 34762 | 76917 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net(1) | 5131 | 4394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes receivable(1) | 4596 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax asset, net | 9895 | 9200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred policy acquisition costs, net(1) | 40645 | 24207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net(1) | 22723 | 24744 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill | 17932 | 17932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 31370 | 17103 |
|  Total assets | $1107187 | $706188 |
|  Liabilities and Stockholders' Equity |  |  |
|  Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses(1) | $152167 | $145221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums(1) | 480783 | 356835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance premiums(1) | 6375 | 3753 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses(1) | 6620 | 2977 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions payable(1) | 4251 | 5812 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Checks issued in excess of funds | 3080 | 5484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax payable(1) | 1633 | 3181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt(1)(2) | 123312 | 31715 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest payable(1) | 1536 | 1501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance payable(1) | 19682 | 26445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance contracts(1) |  | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities(1) | 14028 | 15935 |
|  Total liabilities | 813467 | 598870 |
|  Commitments and Contingencies (Note 13) |  |  |
|  Preferred stock, $0.001 par value, 6.0% cumulative dividend,<br>(0 and 114,622 shares authorized, issued, and outstanding, respectively)(2) |  | 9841 |
|  Refundable reciprocal subscriber contributions | 30040 | 15418 |
|  Stockholders' Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock, par value $0.001 (5,000,000 authorized, 1,391,366 and 1,311,971 issued, 1,320,234 and 1,268,797 outstanding, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 110448 | 53393 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | 162083 | 28664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury stock, at cost 71,132 and 43,174 shares, respectively | (11178) | (799) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income, net of tax | 2327 | 801 |
|  Total stockholders' equity | 263680 | 82059 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interest | 46535 | (4727) |
|  Total equity attributable to controlling interest | 217145 | 86786 |
|  Total liabilities and stockholders' equity | $1107187 | $706188 |

---

(1) See Note 10 for details of balances associated with variable interest entities

(2) See Note 16 for additional information regarding related party transactions

*See accompanying Notes to the Consolidated Financial Statements.* 

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Consolidated Statements of Comprehensive Income** 

**(In thousands, except per share amounts)** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** |
|  Revenues: |  |  |
|  Gross written premiums | $927238 | $642591 |
|  Change in gross unearned premiums | (123948) | (114052) |
|  Gross earned premiums | 803290 | 528539 |
|  Ceded earned premiums | (325413) | (290549) |
|  Net earned premiums | 477877 | 237990 |
|  Policy fee income | 6680 | 4792 |
|  Net investment income | 24939 | 13802 |
|  Net realized investment (loss) gain | (23) | 177 |
|  Other insurance related income | 6836 | 5398 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 516309 | 262159 |
|  Expenses: |  |  |
|  Losses and loss adjustment expenses, net | 145275 | 136050 |
|  Policy acquisition costs, net of ceding commissions | 59158 | 38877 |
|  General and administrative expenses | 74394 | 52262 |
|  Interest expense(1) | 10089 | 4744 |
|  Loss on debt extinguishment | 8873 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 297789 | 231933 |
|  Income before income taxes | 218520 | 30226 |
|  Provision for income tax expense | 52937 | 5970 |
|  Net income | 165583 | 24256 |
|  Net income (loss) attributable to non-controlling interest | 8367 | (17026) |
|  Net income attributable to controlling interest | 157216 | 41282 |
|  Other comprehensive income: |  |  |
|  Change in net unrealized gain on fixed maturity investments | 2033 | 62 |
|  Reclassification adjustment for net realized investment (gains) losses | (17) | 43 |
|  Income tax expense related to items of other comprehensive income | (490) | (82) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other comprehensive income | 1526 | 23 |
|  Total comprehensive income | 167109 | 24279 |
|  Less: Comprehensive income (loss) attributable to non-controlling interest | 8230 | (17287) |
|  Comprehensive income attributable to controlling interest | $158879 | $41566 |
|  Earnings per share: |  |  |
|  Basic | $317.47 | $86.05 |
|  Diluted | $118.18 | $32.80 |
|  Weighted average shares outstanding |  |  |
|  Basic | 494263 | 472797 |
|  Diluted | 1330310 | 1258712 |

---

(1) See Note 16 for additional information regarding related party transactions

*See accompanying Notes to the Consolidated Financial Statements.* 

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Consolidated Statements of Stockholders' Equity** 

**(In thousands, except share and per share amounts)** 

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Redeemable<br>Preferred Stock** | **Redeemable<br>Preferred Stock** | **Reciprocal<br>Subscriber**<br>**Contributions** | **Common Stock** | **Common Stock** | **Additional<br>Paid-In**<br>**Capital** | **Treasury**<br>**Stock** | **Accumulated<br>Other<br>Comprehensive<br>Income,**<br>**Net of Tax** | **Retained**<br>**Earnings** | **Total<br>Stockholders'**<br>**Equity** | **Non-<br>Controlling**<br>**Interest** | **Total Equity<br>Attributable<br>to<br>Controlling**<br>**Interest** |
|  | **Shares** | **Amount** | **Reciprocal<br>Subscriber**<br>**Contributions** | **Shares** | **Amount** | **Additional<br>Paid-In**<br>**Capital** | **Treasury**<br>**Stock** | **Accumulated<br>Other<br>Comprehensive<br>Income,**<br>**Net of Tax** | **Retained**<br>**Earnings** | **Total<br>Stockholders'**<br>**Equity** | **Non-<br>Controlling**<br>**Interest** | **Total Equity<br>Attributable<br>to<br>Controlling**<br>**Interest** |
|  **Balance as of January 1, 2024** | **114622** | $**9841** | $**5049** | **472797** | $**—** | $**34169** | $**(799)** | $**778** | $**5008** | $**39156** | $**(4126)** | $**43282** |
|  Equity-based compensation |  |  |  |  |  | 2538 |  |  |  | 2538 |  | 2538 |
|  Other comprehensive income |  |  |  |  |  |  |  | 23 |  | 23 | (261) | 284 |
|  Preferred stock dividends |  |  |  |  |  |  |  |  | (600) | (600) |  | (600) |
|  Refundable subscriber contributions(1) |  |  | 27055 |  |  |  |  |  |  |  |  |  |
|  Subscriber contributions |  |  | (16686) |  |  | 16686 |  |  |  | 16686 | 16686 |  |
|  Net income |  |  |  |  |  |  |  |  | 24256 | 24256 | (17026) | 41282 |
|  **Balance as of December 31, 2024** | **114622** | $**9841** | $**15418** | **472797** | $**—** | $**53393** | $**(799)** | $**801** | $**28664** | $**82059** | $**(4727)** | $**86786** |
|  Issuance of common stock |  |  |  | 700 |  |  |  |  |  |  |  |  |
|  Equity-based compensation |  |  |  |  |  | 4182 |  |  |  | 4182 |  | 4182 |
|  Other comprehensive income |  |  |  |  |  |  |  | 1526 |  | 1526 | (137) | 1663 |
|  Preferred stock dividends |  |  |  |  |  |  |  |  | (300) | (300) |  | (300) |
|  Other operating activities |  |  |  |  |  |  |  |  | (144) | (144) |  | (144) |
|  Common stock dividends |  |  |  |  |  |  |  |  | (31720) | (31720) |  | (31720) |
|  Treasury stock acquired |  |  |  | (27958) |  |  | (10379) |  |  | (10379) |  | (10379) |
|  Redemption of preferred stock | (114622) | (9841) |  | 67395 |  | 9841 |  |  |  | 9841 |  | 9841 |
|  Refundable subscriber contributions(1) |  |  | 57654 |  |  |  |  |  |  |  |  |  |
|  Subscriber contributions |  |  | (43032) |  |  | 43032 |  |  |  | 43032 | 43032 |  |
|  Net income |  |  |  |  |  |  |  |  | 165583 | 165583 | 8367 | 157216 |
|  **Balance as of December 31, 2025** | **—** | $**—** | $**30040** | **512934** | $**—** | $**110448** | $**(11178)** | $**2327** | $**162083** | $**263680** | $**46535** | $**217145** |

---

(1) The refundable subscriber contributions are presented net of $9.8 million and $6.1 million of cancellations as
of December 31, 2025 and 2024, respectively.

*See accompanying Notes to the Consolidated Financial Statements.* 

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Consolidated Statements of Cash Flows** 

**(In thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** |
|  **Operating activities** |  |  |
|  Net income | $165583 | $24256 |
|  Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 3534 | 9283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt issuance costs | 922 | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of bond premium and discount, net | (739) | (452) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of equity-based compensation | 4182 | 2538 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on debt extinguishment | 8873 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal on property, plant, and equipment | 447 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized loss (gain) on investments | 23 | (177) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in net operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | (2801) | 3508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverable | 17281 | 40014 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid reinsurance premiums | 24546 | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income taxes | (6145) | 2667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (695) | (5794) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | (14270) | (6516) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid loss and loss adjustment expenses | 6945 | (2663) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 123948 | 110143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance premiums | 2622 | (1543) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed reinsurance receivable | 42156 | (57393) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance payable | (6763) | (24442) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 3642 | (1193) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance treaties | (11) | 2365 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commission payable | (1561) | 910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest payable(1) | 35 | 343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | (16438) | (26102) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | (1905) | 5127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 353411 | 120020 |
|  **Investing activities** |  |  |
|  Purchases of fixed-maturity securities available for sale | (102148) | (33741) |
|  Proceeds from sales and maturities of fixed-maturity securities available for sale | 45919 | 9940 |
|  Purchases of equity securities |  | (32) |
|  Proceeds from sales of equity securities | 12 |  |
|  Cost of property and equipment acquired | (2698) | (3559) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | (58915) | (27392) |
|  **Financing activities** |  |  |
|  Principal payments on notes payable | (8750) |  |
|  Purchase of treasury stock | (10379) |  |
|  Common stock dividends | (31720) |  |
|  Preferred stock dividends(1) | (300) | (600) |
|  Issuance of long-term debt(1) | 125000 | 5000 |
|  Payoff of notes payable principal | (31130) |  |
|  Reciprocal subscriber contributions received | 67414 | 33141 |
|  Reciprocal subscriber contributions refunded | (9760) | (6086) |
|  Other financing activities | (144) |  |
|  Debt issuance costs | (3318) |  |
|  Outstanding checks in excess of funds on deposit | (2404) | 4246 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities | 94509 | 35701 |
|  **Net increase in cash and cash equivalents** | 389005 | 128329 |
|  **Cash, cash equivalents, and restricted cash at beginning of period** | 261718 | 133389 |
|  **Cash, cash equivalents, and restricted cash at end of period** | $650723 | $261718 |
|  Supplemental disclosures of cash flow information: |  |  |
|  Interest paid | $(8406) | $(4560) |
|  Noncash financing activities: |  |  |
|  Conversion of preferred stock into common stock | $9841 | $— |

---

(1) See Note 16 for additional information regarding related party transactions

*See accompanying Notes to the Consolidated Financial Statements.* 

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies** 

***Organization and Description of the Company***

Safepoint Holdings, Inc. (individually and together with its subsidiaries, "SPH" and "the Company") is an insurance underwriting services platform, focused on delivering catastrophe-exposed property insurance predominantly in Florida, Louisiana, and other U.S. Gulf Coast states. The Company's platform is supported by SPH and certain SPH subsidiaries. Insurance operations are underwritten by Safepoint Insurance Company ("SPI"), which is licensed to write admitted business in Florida, Louisiana, Texas, Mississippi, Alabama, and New Jersey. SPH's wholly owned subsidiary, Cajun Underwriters Risk Management, LLC ("CURM"), serves as the Attorney-in-Fact ("AIF") for Cajun Underwriters Reciprocal Exchange ("Cajun"), a reciprocal exchange owned by its policyholders licensed to write business in Louisiana and Alabama. SPH's wholly owned subsidiary, Manatee Risk Management, LLC ("MRM"), serves as the AIF for Manatee Insurance Exchange ("Manatee"), a reciprocal exchange owned by its policyholders licensed to write business in Florida. Although the Company does not have any equity interest in Cajun or Manatee, the Company is required to consolidate Cajun and Manatee, both of which qualify as variable interest entities ("VIEs"). In addition, the Company has servicing subsidiaries to support the Insurance Operations of SPI and the fee business derived from the AIF. These wholly owned subsidiaries are Safepoint MGA, LLC ("SPM") and Insight Risk Solutions, LLC ("Insight"). In addition, the Company has four wholly owned subsidiaries domiciled in Bermuda to support the platform: Pompano Re Ltd. ("Pompano"), Canal Re Ltd. ("Canal"), Tarpon Ltd., ("Tarpon") and Bobcat Re Ltd. ("Bobcat").

***Basis of Presentation***

The Company has prepared the Consolidated Financial Statements in conformity with U.S. GAAP and has included the financial information of SPH and its subsidiaries.

*Principles of Consolidation* 

The accompanying Consolidated Financial Statements reflect the consolidation of the Company with its wholly owned subsidiaries and all entities for which it holds a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships or investments for consolidation pursuant to authoritative accounting guidance related to the consolidation of VIEs under the Variable Interest Model prescribed by the Financial Accounting Standards Board ("FASB"). A VIE is consolidated when the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. See *Note 10* – *Variable Interest Entities* for further information.

*Use of Estimates* 

The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Changes in circumstances could cause actual results to differ materially from those estimates.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies (Continued)** 

The most significant estimates include those used in determining the reserves for losses and loss adjustment expenses, reinsurance recoverables, any provision for income taxes and valuation of deferred tax assets, and the valuation of investments. Management bases its estimates and assumptions on historical experience and other factors, including the current economic environment and on various other judgments that it believes to be reasonable under the circumstances. Management periodically reviews its estimates and assumptions and makes adjustments thereto when facts and circumstances dictate.

*Concentrations of Geographic Risk* 

A significant portion of the Company's premiums are written within a limited number of states. As a result, the Company's financial condition and operating results are subject to heightened exposure to regional economic, regulatory, and environmental conditions. Adverse developments in any of these concentrated markets – including unfavorable regulatory changes, localized economic downturns, or increased catastrophic events could have a disproportionate impact on the Company's overall results and profitability. For the years ended December 31, 2025 and 2024, 67.5% and 55.4% of the Company's gross premium written was recognized in Florida, respectively. For the years ended December 31, 2025 and 2024, 24.4% and 39.4% of the Company's gross premium written was recognized in Louisiana, respectively.

*Cash and Cash Equivalents* 

Cash, money market accounts and other short-term, highly liquid investments with a maturity of three months or less at the date of purchase, are considered cash and cash equivalents.

*Restricted Cash* 

Restricted cash represents funds in the Company's sole ownership held by certain states in which the Company's insurance subsidiaries conduct business to meet regulatory requirements and is not available for immediate business use.

The Company maintains a restricted cash deposit of $9.2 million, with $6.6 million and $2.6 million attributed to SPI and Cajun, respectively, pledged to the Louisiana Department of Insurance ("LDOI") for grant funds received under the Insure Louisiana Incentive Program ("Incentive Program"), which encourages additional property insurers to participate in the voluntary property insurance market. The minimum requirements of the program have been met by the Company as of December 31, 2025 and 2024. Starting in 2025, 20% of the restricted cash will be released annually after review of compliance and approval from the LDOI. As of December 31, 2025, the LDOI's review is still in process.

The Company maintains a restricted cash deposit of $8.9 million, attributable to SPI, pledged to the California Department of Insurance as collateral for the Company's obligations related to the California Fair Plan Association.

*Fair Value of Financial Instruments* 

The carrying amounts for the Company's cash and cash equivalents approximate their fair values as of December 31, 2025 and 2024. Fair values for securities or financial instruments are based on the framework for measuring fair value established by U.S. GAAP. See *Note 3 – Fair*

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies (Continued)** 

 *Value Measurements* for more information. The Company's remaining financial assets and liabilities consist of premiums receivable, assumed reinsurance receivable, reinsurance recoverable, reinsurance payable, commissions payable, unearned premium, accrued expenses, and long-term debt. The carrying value of premiums receivable, assumed reinsurance receivable, reinsurance recoverable, reinsurance payable, commissions payable, unearned premium, and accrued expenses approximates fair value because of the short-term nature of those instruments. The carrying value of long-term debt approximates fair value due to the variable rate nature of the debt.

*Available for Sale Fixed-Maturity Securities* 

Fixed-maturity securities available for sale, including debt securities and redeemable preferred stock, are carried at fair value. Unrealized gains and losses (excluding credit losses) are reported in stockholders' equity as part of accumulated other comprehensive income, net of deferred taxes. Realized gains and losses from sales are recorded on the trade date using the first in, first out ("FIFO") method. Investment income is recognized as earned, with discounts or premiums on debt securities amortized over their remaining term using the interest method. Gains and losses from call redemptions and repayments are included as net investment income within the Consolidated Statements of Comprehensive Income.

The Company reviews fixed-maturity securities for impairment quarterly. Securities that the Company intends to sell or is likely required to sell before recovery are written down to fair value, with unrealized losses recognized as an allowance for credit losses in income. For securities held until recovery, impairment is assessed based on credit-related factors, such as issuer financial condition, security ratings, payment history, and market conditions. If the present value of expected cash flows is less than the amortized cost, a credit loss is recorded to the Consolidated Statement of Comprehensive Income. Changes in this allowance are also recorded to the Consolidated Statement of Comprehensive Income. Impairments from non-credit factors are reported in accumulated other comprehensive income.

*Allowance for Credit Losses* 

The allowance for credit losses estimates potential losses due to credit risk and is a contra account reflecting the net amount expected to be collected. Changes in this allowance for investments are recorded as credit losses on the Consolidated Statement of Comprehensive Income, while for other financial assets, credit loss expense is included in operating expenses. When credit loss becomes certain, the allowance is written off against the financial asset.

The Company does not measure an allowance for credit losses on accrued interest receivable, as uncollectible amounts are adjusted to interest income on a monthly basis. For paid reinsurance recoverable due within 90 days, credit risk is assessed based on reinsurer credit ratings and financial condition. Dispute risk related to reinsurance agreements is estimated using an incurred loss method. As of December 31, 2025, there were no disputes related to reinsurance recoverables.

*Equity Securities* 

Equity securities represent ownership interests held by the Company in entities for investment purposes. Unrealized holding gains and losses related to equity securities are

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies (Continued)** 

reported as net investment income within the Consolidated Statement of Comprehensive Income. Realized investment gains and losses from sales are recorded on the trade date and are determined using the FIFO method. See *Note 2 – Investments* for further detail.

*Realized Gains and Losses and Investment Income* 

Realized gains and losses on sales of available for sale and equity securities are recognized in income based upon the specific identification method and reported in net realized investment gains (losses) within the Consolidated Statement of Comprehensive Income. Interest income is recognized as earned and includes amortization of premium and accretion of discount. Income is recognized based on the constant effective yield method, which includes periodically updated prepayment assumptions obtained from third party data sources on its prepaying securities. The effective yield for prepaying securities is recalculated on a retrospective basis. Dividend income is recognized at the ex-dividend date. Interest and dividend income are reported as net investment income.

*Deferred Policy Acquisition Costs* 

Deferred policy acquisition costs ("DAC") represent direct costs for the successful acquisition of new or renewal insurance contracts and consist of premium taxes and commissions paid to outside agents at the time of collection of the policy premium. Commissions paid in association with assumed reinsurance agreements written by the Company are deferred and amortized over the life of the reinsurance agreement. DAC may also include expenses associated with the transition of policies from other insurers for replacement policies and the issuance of renewal policies under the Company's own rates and terms. DAC are amortized over the life of the related policy in relation to the amount of gross earned premiums. Ceding commissions associated with ceded reinsurance agreements are also deferred and amortized over the life of the reinsurance agreement as unearned ceding commissions.

The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value, which gives effect to the gross premium earned, related investment income, unpaid losses and loss adjustment expenses and certain other costs expected to be incurred as the premium is earned. DAC are reviewed to determine if it is recoverable from future premium income, including investment income. If such costs are determined to be unrecoverable, they are expensed at the time of determination. Anticipated investment income is considered in determining if a premium deficiency exists. As of December 31, 2025 and 2024, the Company did not recognize any premium deficiency.

*Intangible Assets* 

Indefinite-lived intangible assets are tested for impairment at least annually, or more frequently if events or such as a change in business circumstances that indicates the carrying value of the assets may not be recoverable. The annual impairment test for indefinite-lived intangible assets may be completed through a qualitative assessment to determine if the fair value of the indefinite-lived intangible assets is more likely than not greater than the carrying amount. The Company may elect to bypass the qualitative assessment, or if a qualitative

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies (Continued)** 

assessment indicates it is more likely than not that the estimated carrying value exceeds the fair value, the Company will test for impairment using a quantitative process. If the Company determines that impairment of its intangible assets may exist, the amount of impairment loss is measured as the excess of carrying value over fair value. The estimates in the determination of the fair value of indefinite-lived intangible assets include the anticipated future revenues of the Company and the resulting cash flows. There were no circumstances that indicate that the carrying amount of intangible assets deemed to have an indefinite useful life may not be recoverable for the year ended December 31, 2025.

Definite-lived intangible assets subject to amortization are amortized over the estimated useful life and reviewed for impairment when indicators exist.

*Goodwill* 

Goodwill is not amortized, but instead, is reviewed for impairment at the reporting unit level on an annual basis, during the fourth quarter, or more frequently if indicators of impairment exist. The annual impairment test for goodwill is initially completed through a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying value. If facts and circumstances determine that it is not more likely than not that a reporting unit fair value is less than its carrying amount, then additional testing of goodwill is not required. However, if it is determined that it is more likely than not that the fair value of a reporting unit is less than the carrying value, then a quantitative analysis is performed. The quantitative analysis compares the estimated fair value of a reporting unit to its carrying value, including goodwill. If the fair value exceeds the carrying value, goodwill is considered not to be impaired. However, if the carrying value exceeds the fair value of a reporting unit, an impairment loss will be recognized in the amount of the excess carrying value over fair value limited by the total amount of goodwill for the reporting unit. There were no circumstances that indicate that the carrying value of goodwill was more likely than not greater than the fair value of a reporting unit for the year ended December 31, 2025.

*Property and Equipment* 

Property and equipment are stated at cost less accumulated depreciation and amortization and impairment charge, which are included in General and Administrative Expenses within the Consolidated Statements of Comprehensive Income. Property and equipment include real estate properties that consists of real estate and other related depreciable assets that are carried at cost, net of accumulated depreciation and impairment charge. Depreciation is calculated on a straight-line basis over the estimated useful lives as follows: land improvements, five years; building, 39 years; building improvements, three to ten years; computer hardware, three to seven years; and furniture and office equipment, three to seven years. Leasehold improvements are amortized over the shorter of the lease term or the asset's useful life. Land is not depreciated. Expenditures for improvements are capitalized to the property accounts. Replacements and maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. Real estate is evaluated for impairment when events or circumstances indicate the carrying value of the real estate may not be recoverable. The Company capitalizes both internal and external costs for internally developed software during the application development stage. During the preliminary project and post-implementation stage, internal-use software development costs are expensed as incurred. Capitalized software

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies (Continued)** 

costs are depreciated on a straight-line basis over the estimated useful life of one to seven years. See *Note 6 – Property and Equipment* for additional detail.

*Impairment of Long-Lived Assets* 

Long-lived assets, such as property and equipment, are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company assesses the recoverability of long-lived assets by determining whether the assets can be recovered from undiscounted future cash flows. Recoverability of long-lived assets is dependent upon, among other things, the Company's ability to maintain profitability so as to be able to meet its obligations when they become due. In the Company's opinion, based upon current information and projections, tangible long-lived assets will be recovered over the period of benefit.

*Advance Premiums* 

Premium payments received prior to the policy effective date are recorded as advance premiums. Once the policy is in force, the premiums are recorded as described under "Premium Revenue" below.

*Premiums Receivable* 

Premiums receivable represents amounts due from policyholders for insurance coverage and are recorded as a receivable in the Company's Consolidated Balance Sheet on the effective date of the policy. Premiums receivable are carried net of a cancellation reserve, which is an estimate of premiums for policies that are expected to cancel during the policy term. As of December 31, 2025 and 2024, the cancellation reserves were $14.1 million and $6.9 million, respectively. The receivable cancellation reserve is offset by a decrease to unearned premiums of $12.4 million and $4.4 million during the years ended December 31, 2025 and 2024, respectively.

*Reinsurance* 

The Company enters into reinsurance agreements to limit its exposure to potential large losses. Ceded reinsurance contracts do not relieve the Company from its obligations to policyholders. Premiums ceded and the related recoverable amounts are reported on a gross basis in the Consolidated Financial Statements. Reinsurance recoverables, net on unpaid losses are estimated in a manner consistent with the claims liability associated with the reinsured business. Premiums receivable under the terms of depopulation programs are structured as assumptions and are classified as assumed reinsurance receivable. Prepaid reinsurance premiums represent the unexpired portion of premiums ceded to reinsurers.

*Premium Revenue* 

Premium revenue includes premium from the direct issuance of policies to insureds or the renewal or replacement of insureds' policies and assumed premium for providing coverage under reinsurance agreements. Premium revenue is earned on a daily pro-rata basis over the term of the policies and is included in gross earned premiums. Unearned premiums represent the portion of the premiums attributable to the unexpired policy term.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies (Continued)** 

*Policy Fees* 

Policy fees represent nonrefundable fees for insurance coverage, which are intended to reimburse a portion of the costs incurred to underwrite the policy. Policy fees revenue is recognized ratably over the term of insurance contracts in accordance with ASC 944, *Insurance*.

*Other Insurance Related Income* 

Other insurance related income includes policy administration income and claims management income. Policy administration income consists of fees earned for administrative, operational, and support services provided in connection with the Company's Reciprocal Exchanges and Risk-bearing Entities segments, along with other third-party insurers. Claims management income represents fees earned for providing claims handling on behalf of the Company's Reciprocal Exchanges and Risk-bearing Entities segments, along with other third-party insurers. These services usually include claims intake, evaluation, settlement administration, and related reporting and oversight activities. Claims management income and policy administration income recognized from the Reciprocal Exchanges and Risk-bearing Entities segments is eliminated in consolidation.

*Reciprocal Exchange Operations* 

The Company owns two AIFs, which operate Cajun and Manatee ("the Reciprocal Exchanges"), where policyholders (also referred to as subscribers) collectively own the reciprocal insurance exchanges. The Company, as the AIF, manages the reciprocals' operations in exchange for a management fee of 17% of the reciprocals' gross written premiums, net of premium cancellations, and a non-catastrophe claims services fee of 3% of the reciprocals' gross written premiums. The Company accounts for its AIF revenue in accordance with ASC 606, *Revenue Recognition*. These fees are representative of the transaction price and are allocated between the performance obligations based on their standalone selling price. The 17% management fee is allocated between two performance obligations, being the placement of the subscribers' insurance contracts and administrative and operational services provided to the Reciprocal Exchanges by their respective AIFs, which are represented by the respective percentages of gross written premiums. In consolidation, the Company fully eliminates all management fee revenues recognized by the AIFs—including any deferrals under ASC 606, *Revenue Recognition*—as well as all corresponding management fee expenses recognized by the reciprocals, including any deferrals under ASC 944, *Insurance*.

The first performance obligation is to provide insurance placement services that result in executed insurance policies between the Reciprocal Exchanges and their subscribers, facilitated by each respective AIF. The performance obligation is satisfied upon the effective date of the policy and are, therefore, recognized as revenue on the effective date of a bound policy. Revenues from insurance placement services are allocated at 14% of the gross written premiums. The AIFs of the Reciprocal Exchanges recognized $132.5 million and $68.7 million of revenue from insurance placement services for the years ended December 31, 2025 and 2024, respectively. Revenue from insurance placement services is eliminated in the Company's Consolidated Financial Statements.

The second performance obligation relates to daily administrative and operational services (legal, accounting, underwriting) provided to the Reciprocal Exchanges by their respective AIF

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies (Continued)** 

entity and is recognized ratably over 12 months, as the underlying insurance policy is a 12-month policy, with the AIF promising to provide corporate services over the life of the policy. As such, the Company recognizes 3% of the gross written premiums over an annual period such that the 3% is then deferred and recognized ratably over 12 months from the policy effective date. The AIFs of the Reciprocal Exchanges recognized $21.0 million and $6.1 million of revenue from corporate services for the years ended December 31, 2025 and 2024, respectively. Revenue from corporate services is eliminated in the Company's Consolidated Financial Statements.

The Company, as the AIF, also provides non-catastrophe claims services to the Reciprocal Exchanges in exchange for a fee of 3% of gross written premiums. The Company recognizes the 3% fee over the estimated average claim period such that the 3% of the gross earned premium generated each month is then deferred and recognized over the claims handling period, net of the estimated cancellation reserve, and such amounts are eliminated in the Company's Consolidated Financial Statements.

*Government Grants* 

In March 2024, the Company was awarded and received $3.3 million in grants with $1.5 million and $1.8 million attributable to SPI and Cajun, respectively. The grants were received from the state of Louisiana as part of the Incentive Program enacted through the passage of Act 754 by the Louisiana legislature. The total grants of $14.8 million received to date were transferred to a custody account for the benefit of the Company and is reported as restricted cash on the Consolidated Balance Sheet as of December 31, 2025 and 2024. As a recipient of these grant funds, the Company is subject to Louisiana statute RS 22:2370 which states that within 24 months of receiving the grant, the Company must write four times the amount of grant funds received and maintain that ratio for the next three years. The state of Louisiana will review compliance with the requirements beginning with the year ended December 31, 2024, and will release twenty percent of each grant after each annual review. As a business entity that received grants from a state government, the Company accounted for the transactions using a grant model by analogy to International Accounting Standards 20 ("IAS 20"), Accounting for Government Grants and Disclosure of Government Assistance. The Company evaluated the requirements under IAS 20, attained reasonable assurance that the Company will comply with a portion of the grant, and determined to recognize such a portion into income on a systematic basis. For the years ended December 31, 2025 and 2024, the Company reported $3.0 million and $4.3 million in Other insurance related income, respectively, in the Consolidated Statements of Comprehensive Income, with $1.0 million and $1.7 million in income attributed to Cajun, respectively. The remaining unearned portion of the grants are reported as Other Liabilities on the Consolidated Balance Sheet.

*Insurance Guaranty Association Assessments* 

The Company's insurance subsidiaries may be assessed by state associations such as the Florida Insurance Guaranty Association ("FIGA") and Louisiana Insurance Guaranty Association ("LIGA"). The assessments are intended to be used for the payment of covered claims of insolvent insurance entities. The assessments are generally based on a percentage of premiums written during or following the year of insolvency. Liabilities are recognized when the assessments are probable to be imposed on the premiums on which they are expected to be based and the amounts can be reasonably estimated. An insurer is generally permitted to

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies (Continued)** 

recover the entire number of assessments from in-force and future policyholders through policy surcharges. U.S. GAAP provides that the Company should record an asset based on the amount of written or obligated-to-write premiums and limited to the amounts recoverable over the life of the in-force policies.

*Reserves for Losses and Loss Adjustment Expenses* 

Reserves for losses and loss adjustment expenses ("LAE") are determined by establishing liabilities in amounts estimated to cover incurred losses and LAE. Such reserves are determined based on the assessment of claims reported and the development of pending claims. These reserves are based on individual case estimates for the reported losses and LAE and estimates of such amounts that are incurred but not reported. Changes in the estimated liability are charged or credited to income as the losses and LAE are settled.

The estimates of unpaid losses and LAE are subject to trends in claim severity and frequency and are continually reviewed. As part of the process, the Company reviews historical data and considers various factors, including known and anticipated regulatory and litigation developments, changes in social attitudes, legislative activity, inflation, and economic conditions. As experience develops and other data becomes available, these estimates are revised, as required, resulting in increases or decreases to the existing unpaid losses and LAE. The Company's reserve estimates reflect current inflation in legal claims' settlements and assume there will not be losses from significant new legal liability theories. The Company's reserve estimates assume that there will not be significant changes in the regulatory and legislative environment as well.

The Company's expected assumptions, such as the initial expected loss ratio, reporting patterns and payment patterns, are based on the Company's and industry historical data. To the extent the actual experience differs from the initial expectations, the estimated of the loss reserves could vary significantly. The Company regularly reviews its estimates and adjusts them as necessary as experience develops or as new information is made available to the Company. Adjustments are reflected in the results of operations in the period in which they are made, and the liabilities may deviate substantially from prior estimates. Losses and LAE ceded to or recovered from reinsurers are recorded as a reduction to losses and LAE on the Consolidated Statement of Comprehensive Income.

*Income Taxes* 

The Company records income tax expense using the asset-and-liability method of accounting for deferred income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying values and the income tax bases of the Company's assets and liabilities.

The Company files a consolidated federal income tax return and has elected to file consolidated returns in certain states. Deferred income taxes are provided for in the Consolidated Financial Statements and relate principally to expenses charged to income for financial reporting purposes in one period and deducted for income tax purposes in other periods. The Reciprocal Exchanges' income tax returns are filed separately.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies (Continued)** 

*Leases* 

The Company accounts for leases in accordance with ASC 842, *Leases*. For operating leases, the Company determines if an arrangement is a lease at inception and recognizes the operating lease right-of-use ("ROU") asset and lease liability within Other Assets and Other Liabilities, respectively, on the Consolidated Balance Sheet. The ROU asset and lease liability are both measured at the present value of the future minimum lease payments at the commencement date. Lease expense is recognized on a straight-line basis over the lease term.

*Value of Business Acquired* 

The Company recognizes the value of business acquired ("VOBA") arising from insurance contracts in a business combination in accordance with ASC 944-20-S99-2(1). In a business combination, the fair value of insurance contracts acquired is determined based on the present value of expected future cash flows, which includes the consideration of premiums, claims, and other contract-related cash flows. The initial measurement of these contracts is based on observable market inputs, if available, or on a discounted cash flow approach using management's best estimates of future cash flows and appropriate discount rates.

The value of business acquired related to insurance contracts is recorded as an intangible asset on the Consolidated Balance Sheet and amortized over the estimated useful life of the contracts, typically reflecting the period over which the insurance contracts are expected to generate cash flows. This amortization expense is recognized as General and Administrative Expense within the Statement of Comprehensive Income.

The Company reviews the carrying amount of this intangible asset for impairment annually, or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment testing is performed by comparing the carrying value of the asset to its recoverable amount, which is based on the expected future cash flows discounted at an appropriate rate.

*Warrants* 

The Company accounts for warrants in accordance with ASC 480, *Distinguishing Liabilities from Equity*, and ASC 815, *Derivatives and Hedging*, as applicable.

The Company issues warrants in connection with equity financing and other transactions. Warrants are financial instruments that give the holder the right to purchase shares of the Company's common stock at a predetermined price within a specified period. Warrants are classified as either equity or liabilities based on the specific terms and conditions. Warrants that are indexed to the Company's own stock and meet the conditions for equity classification are accounted for as equity instruments. Warrants classified as equity are initially recorded at fair value on the grant date, with the fair value determined using the Black-Scholes option-pricing model. This value is credited to additional paid-in capital. Warrants classified as liabilities are initially recorded at fair value on the grant date and remeasured at fair value each reporting period. For warrants classified as equity, no subsequent remeasurement is performed. For warrants classified as liabilities, changes in fair value are recognized in the Consolidated Statement of Comprehensive Income as a component of other revenues.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies (Continued)** 

Direct and incremental costs associated with the issuance of warrants classified as equity are recorded as a reduction to additional paid-in capital.

The Company discloses the nature and terms of the warrants, including the number of shares issuable upon exercise, the exercise price, and the expiration date. Additionally, the Company provides information about the valuation techniques and significant assumptions used in determining the fair value of the warrants. See *Note 15 – Stockholders' Equity* for additional information.

*Variable Interest Entities* 

A VIE is a legal entity that does not have sufficient equity at risk to finance its activities without additional financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity's operations through voting rights or do not participate in the gains and losses of the entity. The Company consolidates VIEs in which the Company is deemed the primary beneficiary. The primary beneficiary of a VIE is the entity that has both (1) the power to direct the activities of the VIE that most significantly affect that entity's economic performance and (2) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of a VIE upon initial involvement with a VIE and reassesses whether it is the primary beneficiary of a VIE on an ongoing basis. The determination of whether an entity is a VIE and whether the Company is the primary beneficiary of a VIE is based upon the facts and circumstances for the VIE and requires significant judgments such as whether the Company's interest in a VIE is a variable interest, whether the Company controls the activities that most significantly impact the economic performance of the VIE, and whether the Company has the obligation to absorb losses or the right to receive benefits of the VIE that could be significant to the VIE. Risks associated with the Company's involvement with VIEs primarily include the potential requirement to fund the VIEs' obligations or the potential requirement to fund the VIEs' operating losses.

The Company is the primary beneficiary of Cajun, a Louisiana reciprocal insurer, and Manatee, a Florida reciprocal insurer. Reciprocal exchanges are insurance carriers organized as unincorporated associations. The Company does not own the equity of the Reciprocal Exchanges, which are owned by each reciprocal's policyholders (known as subscribers). The Company manages the business operations of the Reciprocal Exchanges and has the power to direct their activities that most significantly impact their economic performance. The Company receives a management fee for the services provided to the Reciprocal Exchanges. In addition, as of December 31, 2025 and 2024, the Company holds interests of $46.8 million and $36.8 million, respectively, in the form of surplus notes included on the balance sheets of the Reciprocal Exchanges that provide capital to the Reciprocal Exchanges and would absorb any expected losses. These surplus notes are eliminated in consolidation. Therefore, the Company is the primary beneficiary of the Reciprocal Exchanges, as it has the power to direct the activities that most significantly impact their economic performance and has the obligation to absorb losses and the right to receive benefits that could potentially be significant to the Reciprocal Exchanges. In the event of dissolution, policyholders would share any residual unassigned surplus but are not subject to assessment for any deficit in unassigned surplus.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies (Continued)** 

The assets of the Reciprocal Exchanges can be used only to settle the obligations of the Reciprocal Exchanges, and general creditors have no recourse to the Company. The results of operations of the Reciprocal Exchanges are included in the Company's Consolidated Statement of Comprehensive Income and generated $395.2 million and $77.4 million of net earned premiums for the years ended December 31, 2025 and 2024, respectively. Total costs and expenses for the Reciprocal Exchanges were $162.0 million and $68.8 million for the years ended December 31, 2025 and 2024, respectively. See *Note 10 – Variable Interest Entities* for further information.

*Refundable Reciprocal Subscriber Contributions* 

Refundable reciprocal subscriber contributions represent economic interests in the Reciprocal Exchanges not held by SPH. They are presented in the temporary equity (mezzanine) section of the Company's Consolidated Balance Sheets. The interest in the Reciprocal Exchanges represents a refundable portion of each exchange's subscriber surplus contributions. The Reciprocal Exchanges collect surplus contributions in addition to policy premiums from its policyholders referred to as subscribers. The purpose of the surplus contribution is to support the Reciprocal Exchanges' financial strength and lower the Exchange's cost of capital. The surplus contribution made during a policy term may be returned on a pro-rata basis to a subscriber in the event of policy cancellation. The amount of the contributions received are reported as redeemable non-controlling interests and reclassified to stockholders' equity on a pro-rata basis.

*Non-controlling Interests* 

The Company has non-controlling interests attributable to the Reciprocal Exchanges and other immaterial VIEs. A non-controlling interest arises when the Company has less than 100% of the voting rights and economic interests in a subsidiary or a consolidated variable interest entity. The portion of the Reciprocal Exchanges' earnings or losses attributable to subscribers and the reclassification of surplus contributions from refundable to nonrefundable amount are reflected as non-controlling interests within the Company's Consolidated Financial Statements.

*Redeemable Preferred Stock* 

The Company applies *ASC Topic 480, Distinguishing Liabilities from Equity*, when determining the classification of preferred stock. The Company classifies instruments that are conditionally redeemable for cash or other assets outside of permanent equity if they are redeemable (i) at a fixed or determinable price on a fixed or determinable date, (ii) at the option of the holder, or (iii) upon the occurrence of an event that is not solely within the control of the issuer.

The Company classifies redeemable, convertible preferred stock ("Redeemable Preferred Stock") as temporary equity on the accompanying Consolidated Balance Sheet as it is redeemable solely on the passage of time or upon an event outside the control of the Company.

During the year ended December 31, 2025, the Company completed the redemption and conversion of the outstanding Redeemable Preferred Stock into the Company's common stock in accordance with the terms of the preferred stock agreements. As a result, there is no outstanding Redeemable Preferred Stock as of December 31, 2025.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies (Continued)** 

See *Note 15 – Stockholders' Equity* for additional detail over the significant terms and conditions of the Redeemable Preferred Stock.

*Earnings Per Share* 

Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Prior to the repurchase, the Company's Redeemable Preferred Stock was classified as temporary equity and is considered probable of becoming redeemable. Additionally, Redeemable Preferred Stock is a convertible instrument and receives cumulative dividends at a rate of 6.0% per annum on a quarterly basis, payable in cash. Net income applicable to holders of common stock is reduced by the amount of accumulated dividends payable to the Redeemable Preferred Stock in the current period. The Company assesses potential dilution using the if converted method. During the year ended December 31, 2025, the Redeemable Preferred Stock was redeemed and converted into common stock.

Diluted earnings per share is computed by dividing net income by the weighted average number of common and common equivalent shares outstanding during the reported period. Common equivalent shares include incremental shares from diluted vested and unvested shares of common stock-based awards outstanding during the period based on the treasury stock method under the guidance of ASU 2020-06. See *Note 19 – Earnings Per Share* for additional information about per share data.

*Long-Term Debt* 

Long-term debt includes debt instruments which are generally classified as a liability and carried at amortized cost, net of any issuance costs. Debt issuance costs are capitalized and amortized to interest expense over the expected life of the debt instrument using the effective interest method. At issuance, a debt instrument with embedded features such as conversion and redemption options is evaluated to determine whether bifurcation and derivative accounting is applicable.

*Statutory Accounting Practices* 

The Company's U.S. insurance subsidiaries comply with statutory accounting practices prescribed by the National Association of Insurance Commissioners and as adopted or permitted by the Florida Office of Insurance Regulation ("FLOIR") and the Alabama Department of Insurance ("ALDOI"). Cajun and Manatee have each adopted an accounting practice prescribed by the ALDOI and FLOIR, respectively, related to the deferral of AIF fees. In addition, the Company's Bermuda insurance subsidiaries prepare and file financial statements in accordance with the prescribed regulatory accounting practices of the Bermuda Monetary Authority.

*Stock-Based Compensation* 

The Company accounts for stock-based compensation under the fair value recognition provisions of U.S. GAAP which require the measurement and recognition of compensation for all stock-based awards made to employees, non-employee directors (see *Note 15 – Stockholders'*

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies (Continued)** 

 *Equity* for further detail), and third-party award recipients based on estimated fair values. The fair value of stock-based awards granted to employees and non-employee directors is generally recognized as compensation expense over the requisite service period, which is defined as the period during which a recipient is required to provide service in exchange for an award. Forfeitures of the Company's stock-based awards are accounted for as they occur. The Company uses a straight-line attribution method for all grants that include only a service-based vesting condition.

*Revision of previously issued financial statements* 

During the preparation of the 2025 consolidated financial statements, the Company identified immaterial errors within its previously issued financial statements whereby (a) certain reinsurance related payable and receivable balances were inappropriately netted within the reinsurance payable line item, and (b) certain short-term investments were inappropriately categorized as cash and cash equivalents instead of fixed-maturity securities. The Company assessed the materiality of this error and change in presentation on the prior period consolidated financial statements in accordance with the SEC Staff Accounting Bulletin No. 108 "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current Year Financial Statements." Based on this assessment, the Company concluded that its previously issued financial statements are not materially misstated based upon overall considerations of both quantitative and qualitative factors. The Company corrected the immaterial errors for the previously reported Consolidated Financial Statements within the 2025 Consolidated Financial Statements.

The following tables summarize the impact of the revisions to the Consolidated Balance Sheet and Consolidated Statement of Cash Flows (in thousands):

*Consolidated Balance Sheet* 

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **As Previously<br>Reported** | **Revisions** | **As Revised** |
|  Assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities, available for sale, at fair value (amortized cost of $62,242) | $62053 | $1267 | $63320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 251440 | (1267) | 250173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid reinsurance premiums | 113542 | 1725 | 115267 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 14247 | 2856 | 17103 |
|  Total assets | $701607 | $4581 | $706188 |
|  Liabilities and Stockholders' Equity |  |  |  |
|  Liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance payable | $21864 | $4581 | $26445 |
|  Total liabilities | 594289 | 4581 | 598870 |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies (Continued)** 

*Consolidated Statement of Cash Flows* 

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
|  | **As Previously<br>Reported** | **Revisions** | **As Revised** |
|  **Operating activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in net operating assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid reinsurance premiums | $46806 | $(1725) | $45081 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | (3660) | (2856) | (6516) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance payable | (29023) | 4581 | (24442) |
|  **Investing activities** |  |  |  |
|  Purchases of fixed-maturity securities available for sale | (32474) | (1267) | (33741) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | (26125) | (1267) | (27392) |
|  **Net increase in cash and cash equivalents** | 129596 | (1267) | 128329 |
|  **Cash, cash equivalents, and restricted cash at end of period** | $262985 | $(1267) | $261718 |

---

The Company has also corrected all accompanying footnotes and disclosures affected by the revision.

*Recent Accounting Pronouncements* 

*Newly Adopted Accounting Standards* 

The FASB issued Accounting Standards Update ("ASU") No. 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures* in December 2023. ASU 2023-09 amends ASC 740, *Income Taxes*, to expand income tax disclosures and requires that the Company disclose (i) the income tax rate reconciliation using both percentages and reporting currency amounts; (ii) specific categories within the income tax rate reconciliation; (iii) additional information for reconciling items that meet a quantitative threshold; (iv) the composition of state and local income taxes by jurisdiction; and (v) the amount of income taxes paid disaggregated by jurisdiction. The Company early adopted ASU 2023-09 for the year ended December 31, 2025 on a prospective basis. The adoption of this update resulted in additional income tax disclosures. See *Note 11 – Income Taxes* for additional information.

*Recently Issued Accounting Standards* 

The FASB issued ASU 2024-04, *Debt—Debt with Conversion and Other Options (Subtopic 470- 20): Induced Conversions of Convertible Debt Instruments*, which provides guidance on the accounting for induced conversions of convertible debt instruments. ASU 2024-04 clarifies how entities should account for debt modifications when a convertible debt instrument is converted in a manner that is induced by the issuer. This guidance is intended to address concerns related to the accounting treatment of costs and gains or losses associated with induced conversions. The Company plans to adopt ASU 2024-04 January 1, 2026, the required effective date. The adoption of this update is not expected to have a material impact on the Company's financial position, results of operations, or cash flows; however, the Company is

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 1 – Summary of Significant Accounting Policies (Continued)** 

currently evaluating the potential impact on its accounting policies and disclosures related to convertible debt instruments.

The FASB issued ASU 2025-01, *Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date* in January 2025. This update clarifies the effective date of ASU 2024-03, *Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*, which was issued by the FASB in November 2024. For public business entities, ASU 2024-03 enhances disclosures by requiring the disaggregation of certain expense captions presented within the income statement, such as employee compensation and intangible asset amortization. In addition, the total relevant expense caption on the income statement must be reconciled to the aggregate of the separately disclosed expense categories with the difference represented by an "other items" amount which is qualitatively described. ASU 2024-03 is effective for all public business entities for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating its impact.

The FASB issued ASU 2025-05, *Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets.* This update simplifies the estimation of current expected credit losses on current accounts receivable and current contract assets related to revenue from contracts with customers by allowing all entities to assume that current conditions as of the balance sheet date will not change for the remaining life of the current accounts receivable and current contract assets. ASU 2025-05 is effective for all entities for fiscal years and interim periods beginning after December 15, 2025. Early adoption is permitted. The Company is evaluating its impact.

The FASB issued ASU 2025-06, *Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software* in September 2025*.* This update enhances guidance on the capitalization of software development costs by eliminating project phase-based criteria and clarifying the conditions signifying significant development uncertainty used by entities to evaluate when the probable-to-complete recognition threshold is met. ASU 2025-06 is effective for all entities for fiscal years and interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating its impact.

The FASB issued ASU 2025-10, *Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities* in December 2025. This update establishes authoritative guidance for the recognition, measurement, presentation, and disclosure of government grants received by business entities. ASU 2025-10 is effective for public business entities for fiscal years and interim periods beginning after December 31, 2028. Early adoption is permitted. The Company is evaluating its impact.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 2 – Investments** 

The amortized cost and fair value of securities available for sale as of December 31, 2025 and 2024 are summarized as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Amortized<br>Cost** | **Gross<br>Unrealized<br>Gains** | **Gross<br>Unrealized<br>Losses** | **Fair Value** |
|  **December 31, 2025:** |  |  |  |  |
|  U.S. Government and government agencies | $8045 | $845 | $— | $8890 |
|  Corporate bonds | 64834 | 1665 | (148) | 66351 |
|  Mortgage-backed securities | 4634 | 497 | (60) | 5071 |
|  States, municipalities and political subdivisions | 41285 | 259 | (61) | 41483 |
|  Total fixed maturity securities | $118798 | $3266 | $(269) | $121795 |
|  Total equity securities | 106 |  |  | 106 |
|  Total investments | $118904 | $3266 | $(269) | $121901 |
|  | **Amortized<br>Cost** | **Gross<br>Unrealized<br>Gains** | **Gross<br>Unrealized<br>Losses** | **Fair Value** |
|  **December 31, 2024:** |  |  |  |  |
|  U.S. Government and government agencies | $8048 | $327 | $— | $8375 |
|  Corporate bonds | 31602 | 735 | (49) | 32288 |
|  Mortgage-backed securities | 5495 | 208 |  | 5703 |
|  States, municipalities and political subdivisions | 17097 | 86 | (229) | 16954 |
|  Total fixed maturity securities | $62242 | $1356 | $(278) | $63320 |
|  Total equity securities | 118 |  |  | 118 |
|  Total investments | $62360 | $1356 | $(278) | $63438 |

---

A summary of the aggregate fair values of securities available for sale with unrealized losses segregated by time period in an unrealized loss position as of December 31, 2025 and 2024 is as follows (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Less Than 12 Months** | **Less Than 12 Months** | **12 Months or<br>Greater** | **12 Months or<br>Greater** | **Total** | **Total** |
|  | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized<br>Losses** |
|  **December 31, 2025:** |  |  |  |  |  |  |
|  Corporate bonds | $39653 | $(148) | $— | $— | $39653 | $(148) |
|  Mortgage-backed securities | 1090 | (60) |  |  | 1090 | (60) |
|  States, municipalities and political subdivisions | 30950 | (57) | 141 | (4) | 31091 | (61) |
|  Total fixed maturity securities | 71693 | (265) | 141 | (4) | 71834 | (269) |
|  Total investments | $71693 | $(265) | $141 | $(4) | $71834 | $(269) |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 2 – Investments (Continued)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Less Than 12 Months** | **Less Than 12 Months** | **12 Months or<br>Greater** | **12 Months or<br>Greater** | **Total** | **Total** |
|  | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized<br>Losses** |
|  **December 31, 2024:** |  |  |  |  |  |  |
|  Corporate bonds | $17858 | $(49) | $— | $— | $17858 | $(49) |
|  States, municipalities and political subdivisions | 8360 | (229) |  |  | 8360 | (229) |
|  Total fixed maturity securities | 26218 | (278) |  |  | 26218 | (278) |
|  Total investments | $26218 | $(278) | $— | $— | $26218 | $(278) |

---

The Company evaluates its securities for impairment on a quarterly basis. The Company evaluated its fixed-maturity securities in an unrealized loss position and concluded that the unrealized losses are due primarily to temporary market and sector-related factors rather than to issuer-specific factors, and the issuers of the fixed-maturity securities in which the Company invests continue to make interest payments on a timely basis. The Company does not intend to sell nor is it likely that it would be required to sell the fixed-maturity securities before the Company recovers its amortized cost basis.

As of December 31, 2025, there were 21 securities in an unrealized loss position, one of which had been in an unrealized loss position for 12 months or greater. As of December 31, 2024, there were 13 securities in an unrealized loss position, zero of which had been in an unrealized loss position for 12 months or greater. The Company determined that no credit impairment existed in the gross unrealized holding losses because the credit ratings of these securities were consistent with the credit ratings when purchased and/or at origination, there were no adverse changes in financial condition of the issuer and no adverse credit quality events in underlying assets. The Company attributed the unrealized losses to the changes in interest rates.

The expected maturities of fixed-maturity securities available for sale may differ from the contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties. The amortized cost and fair value of fixed-maturity securities available for sale as of December 31, 2025 and 2024, by contractual maturity, is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Amortized Cost** | **Fair Value** |
|  **As of December 31, 2025:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due in one year or less | $68113 | $67922 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after one year through five years | 27043 | 27987 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after five years through ten years | 7179 | 7815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after ten years | 11830 | 13000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage-backed securities | 4633 | 5071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $118798 | $121795 |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 2 – Investments (Continued)** 

---

| | | |
|:---|:---|:---|
|  | **Amortized Cost** | **Fair Value** |
|  **As of December 31, 2024:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due in one year or less | $23170 | $23170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after one year through five years | 12481 | 12836 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after five years through ten years | 6330 | 6648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due after ten years | 14766 | 14963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage-backed securities | 5495 | 5703 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $62242 | $63320 |

---

For the years ended December 31, 2025 and 2024, the Company received $779.2 million and $619.4 million in proceeds related to the sales of fixed-maturity securities, equity securities and cash and cash equivalents. The Company recognized an immaterial gross realized loss on sales of securities and a gross realized gain of $0.2 million for the years ended December 31, 2025 and 2024, respectively.

Major categories of the Company's net investment income are summarized below for years ended December 31, 2025 and 2024 were as follows *(*in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  Fixed maturity securities | $3362 | $1925 |
|  Equity securities | 8 | 8 |
|  Cash and cash equivalents | 21632 | 11920 |
|  Investment expenses | (63) | (51) |
|  Total | $24939 | $13802 |

---

**Note 3 – Fair Value Measurements** 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on the Consolidated Balance Sheet at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market.

Level 2: Assets and liabilities whose values are based on the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Quoted prices for similar assets or liabilities in active markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Quoted prices for identical or similar assets or liabilities in markets that are not active;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or
liability.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 3 – Fair Value Measurements (Continued)** 

Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect estimates of the assumptions that market participants would use in valuing the assets and liabilities.

The Company estimates the fair value of its equity securities using the closing prices on the last business day of the reporting period, obtained from active markets. For securities for which quoted prices in active markets are unavailable, the Company uses a third-party pricing service that utilizes quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs to estimate the fair value of those securities for which quoted prices are unavailable. Estimates of fair value reflect the interest rate environment that existed as of the close of business on December 31, 2025. Changes in interest rates subsequent to December 31, 2025 may affect the fair value of investments.

The fair value for fixed-maturity securities is initially calculated by a third-party pricing service. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources, and through the use of proprietary models, produce valuation information in the form of a single fair value for individual fixed income and other securities for which a fair value has been requested. The inputs used by the valuation service providers include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, liquidity spreads, currency rates, and other information, as applicable. Credit and liquidity spreads are typically implied from completed transactions and transactions of comparable securities. Valuation service providers also use proprietary discounted cash flow models that are widely accepted in the financial services industry and similar to those used by other market participants to value the same financial information. The valuation models take into account, among other things, market observable information as of the measurement date, as described above, as well as the specific attributes of the security being valued including its term, interest rate, credit rating, industry sector, and where applicable, collateral quality and other issue or issuer specific information. Executing valuation models effectively requires seasoned professional judgment and experience. The carrying values of cash and cash equivalents, accrued investment income, accounts payable, and accrued expenses approximate their fair value. The carrying value of the Company's notes payable, which are categorized as Level 3 investments, approximate their fair value.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 3 – Fair Value Measurements (Continued)** 

The tables below present the Company's fair value hierarchy of financial instruments measured at fair value on a recurring basis as of December 31, 2025 and 2024 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Total** | **Level 1** | **Level 2** | **Level 3** |
|  **Assets:** |  |  |  |  |
|  U.S. Government and government agencies | $8890 | $— | $8890 | $— |
|  Corporate bonds | 66351 |  | 66351 |  |
|  Mortgage-backed securities | 5071 |  | 5071 |  |
|  State, municipalities and political subdivisions | 41483 |  | 41483 |  |
|  Total fixed-maturity securities | $121795 | $— | $121795 | $— |
|  Common stocks | 106 | 106 |  |  |
|  Total equity securities | 106 | 106 |  |  |
|  Total investments | $121901 | $106 | $121795 | $— |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Total** | **Level 1** | **Level 2** | **Level 3** |
|  **Assets:** |  |  |  |  |
|  U.S. Government and government agencies | $8375 | $489 | $7886 | $— |
|  Corporate bonds | 32288 |  | 32288 |  |
|  Mortgage-backed securities | 5703 |  | 5703 |  |
|  State, municipalities and political subdivisions | 16954 |  | 16954 |  |
|  Total fixed-maturity securities | $63320 | $489 | $62831 | $— |
|  Common stocks | 118 | 118 |  |  |
|  Total equity securities | 118 | 118 |  |  |
|  Total investments | $63438 | $607 | $62831 | $— |

---

The Company had no Level 3 investments as of December 31, 2025 and 2024.

*Long-Term Debt* 

The following table summarizes components of the Company's long-term debt and methods used in estimating their fair values:

---

| | | |
|:---|:---|:---|
|  | **Maturity<br>Date** | **Valuation Methodology** |
|  Term Loan, 7% | 2030 | Discounted cash flow method, Level 3 inputs |
|  Subordinated Surplus Notes, 8% | 2042 | Market approach method, Level 3 inputs |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 3 – Fair Value Measurements (Continued)** 

The following tables present fair value information for financial liabilities that are carried on the Consolidated Balance Sheet as of December 31, 2025 and 2024 (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Carrying<br>Value** | **Level 1** | **Level 2** | **Level 3** | **Estimated<br>Fair Value** |
|  **Financial Liabilities:** |  |  |  |  |  |
|  Long-Term Debt |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7% Term Loan | $116250 | $— | $— | $112563 | $112563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8% Subordinated Surplus Notes | 10000 |  |  | 10000 | 10000 |
|  Total Long-Term Debt | $126250 | $— | $— | $122563 | $122563 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Carrying<br>Value** | **Level 1** | **Level 2** | **Level 3** | **Estimated<br>Fair Value** |
|  **Financial Liabilities:** |  |  |  |  |  |
|  Long-Term Debt |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18% Senior Note | $22000 | $— | $— | $29960 | $29960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8% Subordinated Surplus Notes | 10000 |  |  | 10000 | 10000 |
|  Total Long-Term Debt | $32000 | $— | $— | $39960 | $39960 |

---

**Note 4 – Goodwill** 

The changes to the carrying value of goodwill for the years ended December 31, 2025 and 2024 are as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Insurance<br>Services** | **Risk-bearing<br>Entities** | **Total** |
|  Balance as of January 1, 2024 | $12705 | $5227 | $17932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill acquired during period |  |  |  |
|  Balance as of December 31, 2024 | 12705 | 5227 | 17932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill acquired during period |  |  |  |
|  Balance as of December 31, 2025 | $12705 | $5227 | $17932 |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 5 – Intangible Assets** 

The carrying value of indefinite-lived intangible assets and definite-lived intangible assets subject to amortization and accumulated amortization as of December 31, 2025 and 2024 consisted of the following (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** |
| **Intangible Asset** | **Gross<br>Carrying<br>Value** | **Accumulated<br>Amortization** | **Net<br>Carrying<br>Value** | **Weighted<br>Average<br>Remaining<br>Useful Life** |
|  Broker relationships | $5300 | $(616) | $4684 | 18.5 |
|  Policyholder relationships | 15000 | (2391) | 12609 | 13.0 |
|  Trade names | 2500 | (624) | 1876 | 7.7 |
|  Technology | 4000 | (1196) | 2804 | 6.0 |
|  State licenses | 750 |  | 750 | Indefinite |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | $27550 | $(4827) | $22723 |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** |
| **Intangible Asset** | **Gross<br>Carrying<br>Value** | **Accumulated<br>Amortization** | **Net<br>Carrying<br>Value** | **Weighted<br>Average<br>Remaining<br>Useful Life** |
|  Broker relationships | $5300 | $(357) | $4943 | 19.5 |
|  Policyholder relationships | 15000 | (1391) | 13609 | 14.0 |
|  Trade names | 2500 | (362) | 2138 | 8.6 |
|  Technology | 4000 | (696) | 3304 | 7.0 |
|  VOBA—reserves | 1287 | (1287) |  |  |
|  VOBA—unearned premiums | 5906 | (5906) |  |  |
|  State licenses | 750 |  | 750 | Indefinite |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | $34743 | $(9999) | $24744 |  |

---

For the years ended December 31, 2025 and 2024, amortization expense associated with intangible assets was $2.0 million and $7.1 million, respectively. Amortization expense for intangible assets after December 31, 2025 is as follows (in thousands):

---

| | |
|:---|:---|
| **Year** | **Amount** |
| 2026 | $2022 |
| 2027 | 2022 |
| 2028 | 2022 |
| 2029 | 2022 |
| 2030 | 2022 |
|  Thereafter | 11863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $21973 |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 6 – Property and Equipment, Net** 

Property and equipment consisted of the following as of December 31, 2025 and 2024 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,<br>2025** | **December 31,<br>2024** |
|  Land, building, and improvements | $3864 | $2614 |
|  Computer hardware, software, and office equipment | 2840 | 4986 |
|  Total, at cost | 6704 | 7600 |
|  Less: accumulated depreciation and amortization | (1573) | (3206) |
|  Property and equipment, net | $5131 | $4394 |

---

Depreciation expense for the years ended December 31, 2025 and 2024 was $1.5 million and $2.2 million, respectively. During the years ended December 31, 2025 and 2024, $3.1 million and $2.5 million of accumulated depreciation was written off related to disposals of fully depreciated property and equipment, respectively.

**Note 7 – Deferred Policy Acquisition Costs and Unearned Ceding Commissions** 

Deferred policy acquisition costs are presented on the Consolidated Balance Sheet as net of unearned ceding commissions, and result in a net asset position as of December 31, 2025 and 2024. Policy acquisition costs deferred and amortized and unearned ceding commission deferred and earned as of the years ended December 31, 2025 and 2024 were as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  Beginning balance | $24207 | $(2949) |
|  Policy acquisition costs deferred | 76303 | 62697 |
|  Ceding commission deferred | 994 | 2924 |
|  Policy acquisition costs amortized | (67945) | (43567) |
|  Ceding commission earned | 7086 | 5102 |
|  Ending balance | $40645 | $24207 |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 8 – Unpaid Losses and Loss Adjustment Expenses** 

The following table provides a reconciliation of beginning and ending reserve balances for losses and LAE for the years ended December 31, 2025 and 2024 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  Loss and LAE reserves at beginning of period | $145221 | $147885 |
|  Less: anticipated reinsurance recoverable on unpaid losses and LAE | 62750 | 99824 |
|  Net Loss and LAE at beginning of year | 82471 | 48061 |
|  Losses and LAE incurred related to: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current year | 147234 | 137785 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior years | (1959) | (1735) |
|  Total incurred | 145275 | 136050 |
|  Losses and LAE paid related to: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current year | 70250 | 84055 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior years | 54730 | 17585 |
|  Total Paid | 124980 | 101640 |
|  Net loss and LAE reserves at end of year | 102766 | 82471 |
|  Plus: anticipated reinsurance recoverable on unpaid losses and LAE | 49401 | 62750 |
|  Loss and LAE reserves at end of period | $152167 | $145221 |

---

As reflected by the losses incurred in the years ended December 31, 2025 and 2024 related to the prior years, the Company had favorable loss reserve development on prior accident years, primarily driven by reductions in reserves for reported claims, as well as lower than anticipated claims emergence. The Company places substantial reliance on loss-development-based actuarial models when determining the estimate of ultimate losses.

For the year ended December 31, 2025, the Company has incurred gross losses and LAE of $145.3 million.

Reinsurance recoverable as of December 31, 2025 and 2024 was $53.6 million and $70.9 million, respectively, of which $49.4 million and $62.8 million was related to unpaid losses and LAE as of December 31, 2025 and 2024, respectively.

The following tables present undiscounted, incurred and paid losses and allocated loss adjustment expenses by accident year, on a net basis after reinsurance. The information about incurred and paid loss development for all periods preceding the year ended December 31, 2025 and the related historical claims payout percentage disclosure is unaudited and is presented as supplementary information.

To provide a comprehensive and consistent view of the liability for unpaid losses and loss adjustment expenses, the loss triangles are disaggregated by reportable segment, consistent with how the Company evaluates and manages its overall insurance operations. The two loss triangles were selected to create categories that are relatively homogenous and are consistent

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 8 – Unpaid Losses and Loss Adjustment Expenses (Continued)** 

with how the Company discloses gross premiums written and net premiums earned. There was no liability for unpaid losses and loss adjustment expenses for the Insurance Services segment for the year ended December 31, 2025.

The amounts for the Reciprocal Exchanges and Risk-bearing Entities segments below are presented, respectively, in thousands, except claim counts:

**Reciprocal Exchanges:** 

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **Total of<br>Incurred-<br>but-Not-<br>Reported<br>Liabilities<br>Plus<br>Expected<br>Development<br>on Reported<br>Claims** | **Cumulative<br>Number of<br>Reported<br>Claims<br>Unaudited** |
|  | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | **Total of<br>Incurred-<br>but-Not-<br>Reported<br>Liabilities<br>Plus<br>Expected<br>Development<br>on Reported<br>Claims** | **Cumulative<br>Number of<br>Reported<br>Claims<br>Unaudited** |
| **Accident Year** | **2016<br>Unaudited** | **2017<br>Unaudited** | **2018<br>Unaudited** | **2019<br>Unaudited** | **2020<br>Unaudited** | **2021<br>Unaudited** | **2022<br>Unaudited** | **2023<br>Unaudited** | **2024<br>Unaudited** | **2025** | **Total of<br>Incurred-<br>but-Not-<br>Reported<br>Liabilities<br>Plus<br>Expected<br>Development<br>on Reported<br>Claims** | **Cumulative<br>Number of<br>Reported<br>Claims<br>Unaudited** |
| 2015 |  |  |  |  |  |  |  |  | $— | $— |  |  |
| 2016 |  |  |  |  |  |  |  |  |  |  |  |  |
| 2017 |  |  |  |  |  |  |  |  |  |  |  |  |
| 2018 |  |  |  |  |  |  |  |  |  |  |  |  |
| 2019 |  |  |  |  |  |  |  |  |  |  |  |  |
| 2020 |  |  |  |  |  |  |  |  |  |  |  |  |
| 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
| 2022 |  |  |  |  |  |  |  | 790 | 21 | 22 | 123 | 468 |
| 2023 |  |  |  |  |  |  |  | 3088 | 2860 | 737 | 2514 | 869 |
| 2024 |  |  |  |  |  |  |  |  | 47265 | 45060 | 4935 | 4003 |
| 2025 |  |  |  |  |  |  |  |  |  | 113950 | 39889 | 6311 |
|  |  |  |  |  |  |  | Total |  | $50145 | $159768 |  |  |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** |
|  | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** |
|  | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** |
| **Accident Year** | **2016<br>Unaudited** | **2017<br>Unaudited** | **2018<br>Unaudited** | **2019<br>Unaudited** | **2020<br>Unaudited** | **2021<br>Unaudited** | **2022<br>Unaudited** | **2023<br>Unaudited** | **2024<br>Unaudited** | **2025** |
| 2015 |  |  |  |  |  |  |  |  | $— | $— |
| 2016 |  |  |  |  |  |  |  |  |  |  |
| 2017 |  |  |  |  |  |  |  |  |  |  |
| 2018 |  |  |  |  |  |  |  |  |  |  |
| 2019 |  |  |  |  |  |  |  |  |  |  |
| 2020 |  |  |  |  |  |  |  |  |  |  |
| 2021 |  |  |  |  |  |  |  |  |  |  |
| 2022 |  |  |  |  |  |  |  | 2035 | 2304 | 2371 |
| 2023 |  |  |  |  |  |  |  | 1051 | 2599 | 3025 |
| 2024 |  |  |  |  |  |  |  |  | 25783 | 36364 |
| 2025 |  |  |  |  |  |  |  |  |  | 55147 |
|  |  |  |  |  |  |  | Total |  | $30686 | $96907 |
|  |  |  | Liabilities for claims and allocated<br>claim adjustment expenses, net of<br>reinsurance | Liabilities for claims and allocated<br>claim adjustment expenses, net of<br>reinsurance | Liabilities for claims and allocated<br>claim adjustment expenses, net of<br>reinsurance | Liabilities for claims and allocated<br>claim adjustment expenses, net of<br>reinsurance | Liabilities for claims and allocated<br>claim adjustment expenses, net of<br>reinsurance |  | $19459 | $62861 |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 8 – Unpaid Losses and Loss Adjustment Expenses (Continued)** 

**Risk-bearing Entities:** 

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **Total of<br>Incurred-<br>but-Not-<br>Reported<br>Liabilities<br>Plus<br>Expected<br>Development<br>on Reported<br>Claims** | **Cumulative<br>Number of<br>Reported<br>Claims<br>Unaudited** |
|  | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | **Total of<br>Incurred-<br>but-Not-<br>Reported<br>Liabilities<br>Plus<br>Expected<br>Development<br>on Reported<br>Claims** | **Cumulative<br>Number of<br>Reported<br>Claims<br>Unaudited** |
| **Accident Year** | **2016<br>Unaudited** | **2017<br>Unaudited** | **2018<br>Unaudited** | **2019<br>Unaudited** | **2020<br>Unaudited** | **2021<br>Unaudited** | **2022<br>Unaudited** | **2023<br>Unaudited** | **2024<br>Unaudited** | **2025** | **Total of<br>Incurred-<br>but-Not-<br>Reported<br>Liabilities<br>Plus<br>Expected<br>Development<br>on Reported<br>Claims** | **Cumulative<br>Number of<br>Reported<br>Claims<br>Unaudited** |
| 2016 | $33827 | $37091 | $40128 | $41282 | $41222 | $40365 | $40624 | $40487 | $40547 | $40554 |  | 3765 |
| 2017 |  | 43973 | 40762 | 31030 | 19414 | 15779 | 17131 | 6004 | 5707 | 5710 |  | 15575 |
| 2018 |  |  | 49460 | 58635 | 58463 | 59826 | 59824 | 59845 | 60046 | 60131 |  | 4370 |
| 2019 |  |  |  | 23751 | 23650 | 24017 | 23728 | 23856 | 23572 | 23821 |  | 3974 |
| 2020 |  |  |  |  | 42730 | 30718 | 32070 | 34199 | 34280 | 34428 | 102 | 5481 |
| 2021 |  |  |  |  |  | 44515 | 42059 | 42732 | 45718 | 45720 | 7768 | 6505 |
| 2022 |  |  |  |  |  |  | 80895 | 78597 | 84265 | 84349 | 9460 | 9005 |
| 2023 |  |  |  |  |  |  |  | 48319 | 39132 | 39205 | 812 | 4402 |
| 2024 |  |  |  |  |  |  |  |  | 90520 | 92276 | 8144 | 7124 |
| 2025 |  |  |  |  |  |  |  |  |  | 33284 | 5303 | 1377 |
|  |  |  |  |  |  |  |  | Total | $423787 | $459478 |  |  |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** | **Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance** |
|  | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** | <br> **For the Years Ended December 31,** |
|  | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** | <br> **Supplementary** |
| **Accident Year** | **2016<br>Unaudited** | **2017<br>Unaudited** | **2018<br>Unaudited** | **2019<br>Unaudited** | **2020<br>Unaudited** | **2021<br>Unaudited** | **2022<br>Unaudited** | **2023<br>Unaudited** | **2024<br>Unaudited** | **2025** |
| 2016 | $14720 | $29104 | $35017 | $36047 | $37141 | $37590 | $37925 | $38239 | $38745 | $38770 |
| 2017 |  | 20959 | 30538 | 27571 | 20164 | 24494 | 23441 | 2364 | 6878 | 8141 |
| 2018 |  |  | 25725 | 49594 | 54113 | 55528 | 56872 | 57458 | 57505 | 57661 |
| 2019 |  |  |  | 13669 | 22514 | 24555 | 25557 | 26063 | 26217 | 26502 |
| 2020 |  |  |  |  | 17785 | 23141 | 29100 | 31326 | 33273 | 34371 |
| 2021 |  |  |  |  |  | 17982 | 19702 | 24568 | 28682 | 29314 |
| 2022 |  |  |  |  |  |  | 72103 | 71078 | 69988 | 73287 |
| 2023 |  |  |  |  |  |  |  | 42527 | 48062 | 54060 |
| 2024 |  |  |  |  |  |  |  |  | 58271 | 89090 |
| 2025 |  |  |  |  |  |  |  |  |  | 15104 |
|  |  |  |  |  |  |  |  | Total | $367621 | $426299 |
|  |  |  |  | Liabilities for claims and allocated claim<br>adjustment expenses, net of reinsurance | Liabilities for claims and allocated claim<br>adjustment expenses, net of reinsurance | Liabilities for claims and allocated claim<br>adjustment expenses, net of reinsurance | Liabilities for claims and allocated claim<br>adjustment expenses, net of reinsurance | Liabilities for claims and allocated claim<br>adjustment expenses, net of reinsurance | $56166 | $33179 |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 8 – Unpaid Losses and Loss Adjustment Expenses (Continued)** 

The following table provides a reconciliation of the disclosure of incurred and paid claims development tables to the liability for unpaid losses and loss adjustment expenses presented on the Company's Consolidated Balance Sheets. The amounts below are presented in thousands, except claim counts:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  Net outstanding liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reciprocal Exchanges | $62861 | $19459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-bearing Entities | 33179 | 56166 |
|  Unpaid claims acquired in business combination | 6567 | 6567 |
|  Liabilities for unpaid claims and allocated claims adjustment expenses, net of reinsurance | 102607 | 82192 |
|  Reinsurance recoverable on unpaid claims | 49401 | 62750 |
|  Liabilities for unpaid claims and allocated claims adjustment expenses for accident years not presented, net of reinsurance | 159 | 279 |
|  Total gross liability for unpaid claims and claims adjustment expense | $152167 | $145221 |

---

The following supplementary table illustrates the Company's average annual payout of incurred claims by age, net of reinsurance. The data represents the Company's property and casualty business in the States of Florida, Louisiana, New Jersey, Texas, Mississippi, and Alabama, which as of December 31, 2025, represents all of the Company's business.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** |
| **Years** | **1** | **2** | **3** | **4** | **5** | **6** | **7** | **8** | **9** | **10** |
|  | 89.8% | 38.7% | 2.7% | -14.5% | 15.0% | -2.5% | -91.8% | 26.7% | 11.7% | 0.1% |

---

The negative amounts in Years 4, 6, and 7 represent reinsurance recoveries for a 2017 catastrophe event.

**Note 9 – Reinsurance** 

Certain premiums and benefits are ceded to other insurance companies under various reinsurance agreements. The reinsurance agreements allow the Company to limit its exposure to losses on catastrophic events.

The Company's reinsured risks are treated, to the extent of reinsurance, as though they are risks for which the Company is not liable. However, the Company remains contingently liable in the event the reinsuring companies do not meet their obligations under these reinsurance contracts. Given the quality of the reinsuring companies, management believes this possibility to be remote.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 9 – Reinsurance (Continued)** 

The following is a summary of the reinsurance coverage for the following periods noted:

*2023 – 2024 Treaty Year (June 1, 2023 – May 31, 2024):* 

The Company has a catastrophe excess of loss coverage through reinsurance agreements with reinsurers and by the Florida Hurricane Catastrophe Fund ("FHCF"). The excess of loss treaties generally provide coverage on ultimate net losses of $556.9 million in excess of $5.0 million for the first occurrence ($891.9 million for all occurrences) with the FHCF providing coverage for losses from qualifying catastrophic events in excess of $45.5 million up to a maximum payout of $87.9 million.

The Company executed a facultative reinsurance agreement with coverage of $3.0 million in excess of $1.0 million for personal lines and $5.0 million in excess of $5.0 million for commercial lines. The agreement is subject to a $15.0 million per occurrence limit with no aggregate limit. In addition to the facultative agreement the Company entered into a per risk excess of loss agreement for commercial lines only which provides coverage for $3.0 million in excess of $2.0 million.

The FHCF provides coverage for named hurricanes only and provides no coverage after the onetime limit is exhausted. Reinsurance premiums for the FHCF are paid on a total insured value basis. In the event of a FHCF loss assessment, the Company may recoup the assessments from its policyholders.

*2024 – 2025 Treaty Year (June 1, 2024 – May 31, 2025):* 

The Company has a catastrophe excess of loss coverage through reinsurance agreements with reinsurers and by the FHCF. The excess of loss treaties generally provide coverage on ultimate net losses of $1,205.9 million in excess of $10.0 million for the first occurrence ($1,798.6 million for all occurrences) with the FHCF providing coverage for losses from qualifying catastrophic events in excess of $72.4 million up to a maximum payout of $128.4 million.

The Company executed a facultative reinsurance agreement with coverage of $3.5 million in excess of $1.5 million for personal lines and $10.0 million in excess of $5.0 million for commercial lines. The agreement is subject to a $30.0 million per occurrence limit with no aggregate limit. In addition to the facultative agreement, the Company entered into a per risk excess of loss agreement for personal lines only which provides coverage for $0.8 million in excess of $0.8 million.

*2025 – 2026 Treaty Year (June 1, 2025 – May 31, 2026):* 

The Company has a catastrophe excess of loss coverage through reinsurance agreements with reinsurers and by the FHCF. The excess of loss treaties generally provide coverage on ultimate net losses of $1,883.5 million in excess of $100.0 million for the first occurrence ($2,884.1 million for all occurrences) with the FHCF providing coverage for losses from qualifying catastrophic events in excess of $179.6 million up to a maximum payout of $287.8 million.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 9 – Reinsurance (Continued)** 

The Company executed a facultative reinsurance agreement with coverage of $3.5 million in excess of $1.5 million for personal lines and $10.0 million in excess of $5.0 million for commercial lines. The agreement is subject to a $30.0 million per occurrence limit with no aggregate limit. In addition to the facultative agreement, the Company entered into a per risk excess of loss agreement for commercial lines only which provides coverage for $3.0 million in excess of $2.0 million.

The Company did not engage in any loss portfolio transfers for this treaty year.

*Catastrophe Bonds* 

Effective December 1, 2023, the Company entered into two reinsurance agreements with Nature Coast Re, Ltd. in the form of Catastrophe Bonds. Nature Coast Re, Ltd. issued two classes of notes in the amount of $195.0 million in total as collateral for the reinsurance coverage provided. This coverage is effective from December 1, 2023 through November 30, 2026, which covers three hurricane seasons, and does not contain a reinstatement provision.

Effective June 25, 2024, the Company entered into one reinsurance agreement with Nature Coast Re, Ltd. in the form of Catastrophe Bonds. Nature Coast Re, Ltd. issued one note in the amount of $50.0 million in total as collateral for the reinsurance coverage provided. This coverage is effective from June 25, 2024 through June 7, 2028, which covers four hurricane seasons, and does not contain a reinstatement provision. The total amount of reinsurance protection for the 2024-2025 treaty year available from Nature Coast Re, Ltd. was $245.0 million.

Effective January 9, 2025, the Company entered into one reinsurance agreement with Nature Coast Re, Ltd. in the form of Catastrophe Bonds. Nature Coast Re, Ltd. issued one note in the amount of $200.0 million in total as collateral for the reinsurance coverage provided. This coverage is effective from January 9, 2025 through January 16, 2029, which covers four hurricane seasons, and does not contain a reinstatement provision.

Effective April 3, 2025, the Company entered into one reinsurance agreement with Nature Coast Re, Ltd. in the form of Catastrophe Bonds. Nature Coast Re, Ltd. issued one note in the amount of $150.0 million in total as collateral for the reinsurance coverage provided. This coverage is effective from April 3, 2025 through April 10, 2029, which covers four hurricane seasons, and does not contain a reinstatement provision.

The total amount of reinsurance protection for the 2025-2026 treaty year available from Nature Coast Re was $595.0 million.

*Net Quota Share Reinsurance* 

Effective June 1, 2024, the Company entered into a 5.0% whole account quota share reinsurance agreement for its Florida personal and commercial lines business. Under the terms of the agreement, the Company cedes 5.0% of earned premium, and this treaty covers catastrophe losses and all other catastrophe reinsurance inures to the treaty's benefit. In exchange, the Company receives a ceding commission of 35.5%.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 9 – Reinsurance (Continued)** 

During the first quarter of 2024, the Company entered into two commutation agreements on its 10% and 50% quota share treaty contracts that were originally effective in 2023. Per the terms of the agreement, the Company received $24.5 million from the reinsurers as full and final settlement for all liabilities subject to the contracts.

The effects of reinsurance on premiums written and earned for the years ended December 31, 2025 and 2024 are as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Premiums<br>Written** | **(Increase)<br>Decrease in<br>Unearned<br>Premiums** | **Premiums<br>Earned** |
|  **Year Ended December 31, 2025:** |  |  |  |
|  Direct | $685416 | $(124066) | $561350 |
|  Assumed | 241822 | 118 | 241940 |
|  Ceded | (299199) | (26214) | (325413) |
|  Net | $628039 | $(150162) | $477877 |
|  **Year Ended December 31, 2024:** |  |  |  |
|  Direct | $559537 | $(70979) | $488558 |
|  Assumed | 83054 | (43073) | 39981 |
|  Ceded | (247653) | (42896) | (290549) |
|  Net | $394938 | $(156948) | $237990 |

---

The Company's reinsurance arrangements, excluding the Florida and Louisiana Citizens assumptions, decreased certain items in the accompanying Consolidated Financial Statements for the years ended December 31, 2025 and 2024, by the following amounts (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  Ceded earned premiums | $(325413) | $(290549) |
|  Losses and loss adjustment expenses incurred | (27962) | (31136) |
|  Policy acquisition costs, net of ceding commissions | (6641) | (1148) |

---

**Note 10 – Variable Interest Entities** 

The Reciprocal Exchanges' assets are legally restricted for the purpose of fulfilling obligations specific to the Reciprocal Exchanges. In addition to the Reciprocal Exchanges, the Company is the primary beneficiary of Shuriken I, L.P., a Delaware limited partnership (the "Shuriken Fund") and certain other VIEs that are, individually and in the aggregate, immaterial to the Company's Consolidated Financial Statements. The following table summarizes the

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 10 – Variable Interest Entities (Continued)** 

assets and liabilities related to the Company's VIEs, which are included in the accompanying Consolidated Balance Sheets as of December 31, 2025 and 2024 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,<br>2025** | **December 31,<br>2024** |
|  | **Variable<br>Interest<br>Entities** | **Variable<br>Interest<br>Entities** |
|  Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities, available for sale, at fair value | $48853 | $24670 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 269376 | 75821 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash | 2651 | 3403 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | 15421 | 13084 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverable | 7345 | 7776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid reinsurance premiums | 77333 | 66415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed reinsurance receivable, net | 28726 | 78356 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net | 319 | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax asset, net | 2335 | 1872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred policy acquisition costs, net | 33019 | 15916 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | (1788) | (1879) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 13967 | 3268 |
|  Total assets | $497557 | $288780 |
|  Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | $76249 | $36590 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 417184 | 279074 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance premiums | 5580 | 3285 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 1555 | 700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions payable | 3418 | 4043 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Checks issued in excess of funds | 1598 | 1707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax payable, net | 1902 | 1595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt | 10000 | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest payable | 1575 | 1501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance payable | 13983 | 22520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance contracts |  | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 2100 | 6202 |
|  Total liabilities | $535144 | $367228 |

---

The intangible assets, net, included in the VIEs' assets, are the broker relationships in connection with Cajun. Additionally, certain intercompany payables between the VIEs and SPH, including intercompany surplus notes, eliminate upon consolidation, and therefore are not included within the VIEs' liabilities above. The following table summarizes the revenues and expenses related to the VIEs for the years ended December 31, 2025 and 2024, which are

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 10 – Variable Interest Entities (Continued)** 

included in the accompanying Consolidated Statements of Comprehensive Income (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,<br>2025** | **December 31,<br>2024** |
|  | **Variable<br>Interest<br>Entities** | **Variable<br>Interest<br>Entities** |
|  Revenue: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross written premiums | $804124 | $431584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in gross unearned premiums | (138110) | (231479) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross earned premiums | 666014 | 200105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded earned premiums | (270820) | (122696) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 395194 | 77409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 12828 | 3994 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized investment (loss) gain | (10) | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 1624 | 1840 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 409636 | 83285 |
|  Expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses, net | 109743 | 45151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy acquisition costs, net of ceding commissions | 42905 | 11797 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 8557 | 11153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 800 | 724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 162005 | 68825 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income before income taxes | 247631 | 14460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for income tax expense | 5729 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $241902 | $14436 |

---

For years ended December 31, 2025 and 2024, the Company waived $0 and $3.0 million, respectively, in fees for the VIEs. During the same periods, there were no events or circumstances that exposed the Company to loss or required the Company to provide any form of liquidity. As of December 31, 2025 and 2024, the Company holds $46.8 million and $36.8 million of surplus notes, respectively, issued by the VIEs, with $36.8 million and $26.8 million of the surplus notes eliminated in consolidation, respectively.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 10 – Variable Interest Entities (Continued)** 

The following table presents the condensed cash flows of the Variable Interest Entities for the years ended December 31, 2025 and 2024, which are included in the accompanying Consolidated Statements of Cash Flows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Variable Interest<br>Entities** | **Variable Interest<br>Entities** |
|  | **December 31,<br>2025** | **December 31,<br>2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 148764 | 37866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | (13506) | (16919) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities | 57545 | 33983 |
|  Net increase in cash and cash equivalents | 192803 | 54930 |
|  Cash, cash equivalents, and restricted cash at beginning of period | 79224 | 24294 |
|  Cash, cash equivalents, and restricted cash at end of period | $272027 | $79224 |

---

**Note 11 – Income Taxes** 

The income tax expense for the years ended December 31, 2025 and 2024 is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  Current: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | $45636 | $9947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 8446 | 1909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current tax expense | 54082 | 11856 |
|  Deferred: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | (505) | (5581) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | (640) | (305) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deferred tax benefit | (1145) | (5886) |
|  Income tax expense | $52937 | $5970 |

---

The following table represents the total taxes paid for the years presented, net of refunds:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  Cash paid during the period for income taxes, net of refunds: |  |  |
|  U.S Federal | $(47450) |  |
|  U.S. State | (12717) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total cash paid during the period for taxes | $(60167) |  |
|  Cash paid during the period for income taxes (prior to ASC 2023-09): |  | $(5500) |

---

Individual jurisdictions equaling 5% or more of the total income tax paid (net of refunds) for the year ended December 31, 2025 include U.S. federal at $47.5 million, Florida at $9.7 million, and Louisiana at $3.0 million.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 11 – Income Taxes (Continued)** 

The components of the Company's net deferred tax asset as of December 31, 2025 and 2024 is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and LAE | $1280 | $1051 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premium | 19191 | 11767 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned revenue | 858 | 1185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital loss carryforward | 302 | 324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cancellation reserve | 4642 | 2719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 482 | 392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net operating loss | 9193 | 13158 |
|  Gross deferred tax asset | 35948 | 30596 |
|  Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | (9375) | (5792) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangibles | (4620) | (5054) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed assets | (801) | (279) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized capital gains | (774) | (278) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued compensation |  | (310) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right of use asset | (425) | (332) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | (839) | (1810) |
|  Gross deferred tax liability | (16834) | (13855) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance | (9219) | (7541) |
|  Net deferred tax asset | $9895 | $9200 |

---

A reconciliation of the income tax provision computed by applying the statutory federal income tax rate to the income tax expense is as follows for the year ended December 31, 2025 after the adoption of ASU 2023-09 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | **2025** |
|  | **Amount** | **%** |
|  Income tax computed at statutory rate | $45894 | 21.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State income taxes, net of federal benefit(1) | 5835 | 2.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in valuation allowance | 1678 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return to provision adjustment | 78 | 0.0% |
|  Nontaxable or nondeductible items: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee equity compensation | (898) | -0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nondeductible expenses | 350 | 0.2% |
|  Income tax expense | $52937 | 24.2% |

---

(1) Florida state tax made up the majority (greater than 50%) of the tax effect in this category

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 11 – Income Taxes (Continued)** 

As previously disclosed for the year ended December 31, 2024 and prior to the adoption of ASU 2023-09, the effective income tax rate differs from the statutory federal income tax rate as follows:

---

| | |
|:---|:---|
|  | **2024** |
|  Income tax computed at statutory rate | $6347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State income taxes, net of federal benefit | 972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee equity compensation | (5092) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nondeductible expenses | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in valuation allowance | 3754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other adjustments | (57) |
|  Income tax expense | $5970 |

---

Activity related to the Company's valuation allowance consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  Balance, beginning of period | $7541 | $3343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charged to expense | 1678 | 4198 |
|  Balance, end of period | $9219 | $7541 |

---

The Company is required to establish a valuation allowance for any portion of the deferred tax asset that management believes is more likely than not to be realized. After weighing factors and performing the analysis, the Company concluded that a $9.2 million and $7.5 million valuation allowance should be recorded for the years ended December 31, 2025 and 2024, respectively. The increase in valuation allowance is related to capital loss carryovers and deferred tax assets attributable to a separate return filer.

For the years ended December 31, 2025 and 2024, the Company had federal net operating losses of $42.3 million and $58.9 million, respectively, which expire at various dates beginning in 2038 through 2044 if not utilized. For the years ended December 31, 2025 and 2024, the Company had $8.7 million and $26.0 million of state operating losses, respectively, which will expire on various dates from 2038 through 2044.

The utilization of net operating loss carryforwards is subject to annual limitations due to ownership changes that previously occurred or that could occur in the future. In general, an ownership change as defined by Internal Revenue Code 382 occurs when shareholder ownership changes by more than 50% over a three-year period. An ownership change of greater than 50% occurred during 2023, resulting in the future limitation of annual federal and state net operating losses.

The Company has not recorded any amounts for unrecognized tax benefits for the years ended December 31, 2025 and 2024. The Company's policy is to record estimated interest and penalties related to the underpayment of income taxes as a component of its income tax provision. For the years ended December 31, 2025 and 2024, the Company had no accrued interest or tax penalties recorded. The Company does not anticipate any material changes for unrecognized benefits over the next twelve months.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 11 – Income Taxes (Continued)** 

The Company files income tax returns in the U.S. federal jurisdiction, Florida, Louisiana, New Jersey, Texas, Mississippi, and Alabama. All net operating losses generated to date are subject to adjustment for U.S. federal and state income tax purposes. The statute of limitations for federal and state purposes is open for tax years from 2022 to 2025.

**Note 12 – Long-Term Debt** 

The following table summarizes the Company's long-term debt for the years ended December 31, 2025 and 2024 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  18% Senior Note, due October 6, 2029(a) | $— | $22000 |
|  7% Term Loan, due February 18, 2030 | 116250 |  |
|  8% Subordinated Surplus Notes, December 31,<br>2042(b) | 10000 | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total principal amount | 126250 | 32000 |
|  Less: unamortized debt issuance costs | (2938) | (285) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total long-term debt | $123312 | $31715 |

---

(a) See *Note 15—Stockholders' Equity* for disclosure of detachable warrants issued concurrently with
Convertible Senior Note.

(b) Notes issued by Cajun and Manatee to a subsidiary of Acrisure

The following table summarizes the future maturities of long-term debt as of December 31, 2025, which takes into consideration the assumption that the outstanding notes are repurchased at their respective earliest call dates (in thousands):

---

| | |
|:---|:---|
| **Year** | **Amount** |
| 2026 | $12500 |
| 2027 | 12500 |
| 2028 | 12500 |
| 2029 | 12500 |
| 2030 | 66250 |
|  Thereafter | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $126250 |

---

The information with respect to interest expense related to long-term debt is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,<br>2025** | **December 31,<br>2024** |
|  Interest Expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contractual interest | $9167 | $4684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt issuance costs | 922 | 60 |
|  Total | $10089 | $4744 |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 12 – Long-Term Debt (Continued)** 

*Revolving Credit Agreement* 

On February 18, 2025, the Company entered into a revolving credit agreement ("Credit Agreement") comprising of a $100.0 million term loan, a $25.0 million revolving loan facility, and a $15.0 million delayed draw term loan. On August 15, 2025, the Credit Agreement was amended to increase the revolving loan facility to $75.0 million and increase the delayed draw term loan to $115.0 million.

Under the terms of the Credit Agreement, the term loan bears interest at Secured Overnight Financing Rate plus 3.5% and matures on February 18, 2030, with an effective interest rate of 7% at December 31, 2025. The agreement includes customary covenants and conditions.

As of December 31, 2025, $92.5 million was outstanding under the term loan, $23.8 million was drawn for the delayed draw term loan, and no amount was drawn under the revolving loan facility.

*18% Senior Note* 

On October 6, 2023, the Company issued an 18.0% $22.0 million subordinated note due October 6, 2029. Interest payments are due quarterly. In conjunction with this issuance, the Company also executed a common stock purchase warrant contract, which provides the holders the right to purchase up to 70,404 common shares (par value $.001) in exchange for $177.55 per share. The warrant contract expires October 6, 2033. See *Note 15 – Stockholders' Equity* for additional information over these warrants.

On February 18, 2025, the Company paid off the $22.0 million outstanding note, which included a $9.1 million penalty for the early debt extinguishment. As a result, the Company recognized a $8.9 million loss on extinguishment of debt, which includes the early extinguishment penalty and the write-off of $0.2 million of unamortized debt issuance costs, offset by the early extinguishment of $0.5 million in accrued interest.

*FHLB Line of Credit* 

In March of 2017, SPI became a member of the Federal Home Loan Bank of Atlanta ("FHLB"). As a member, SPI is granted a line of credit that must be fully collateralized with cash and securities, or a combination of both. As of December 31, 2025 and 2024, $0 of the $17.6 million and $0 of the $15.1 million, respectively, of the available line of credit was drawn upon by the Company.

**Note 13 – Commitments and Contingencies** 

The Company is named defendant in various legal actions arising in the normal course of business from claims made under insurance policies and contracts. These actions are considered by the Company in estimating the loss and LAE reserves. The Company's management believes that the resolution of these actions will not have a material adverse effect on the Company's financial position or results of operations.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 13 – Commitments and Contingencies (Continued)** 

*Obligations under Multi-Year Reinsurance Contracts* 

As of December 31, 2025 and 2024, the Company has contractual obligations related to several multi-year reinsurance contracts with Nature Coast Re, Ltd, a special purpose vehicle established in Bermuda. These contracts allow the Company to transfer catastrophe-related insurance risks to capital market investors, providing collateralized protection against named storms in the covered areas. These contracts may be cancelled only with the other party's consent or when its experience account is positive at the end of each contract year. An experience account is a specialized account that holds premiums, investment income, and the principal amount of the contract to track and settle losses. The minimum aggregate premium amounts payable to the reinsurers for the reinsurance contracts are as follows:

---

| | |
|:---|:---|
| **Due in year** | **Amount** |
| 2025 | $55742 |
| 2026 | 64512 |
| 2027 | 42045 |
| 2028 | 38802 |
| 2029 | 13152 |
|  Total | 214253 |

---

*Florida Insurance Guaranty Association Assessments* 

The FIGA assessed its members 1.0% on new and renewal policies with effective dates beginning October 1, 2025 through September 30, 2026. The Company will collect the assessment from the policyholder based on an approved rate. The payable balance as of December 31, 2025 was $0.8 million.

*Louisiana Insurance Guaranty Association Assessments* 

The LIGA assessed its members 1.0% of the Company's 2022 written premium equal to $0.8 million which was paid in June 2023. The Company will collect the assessment from the policyholder based on an approved rate. The receivable balance as of December 31, 2025 and 2024 was $0.6 million and $0.7 million, respectively.

The LIGA assessed its members 1.0% of the Company's 2023 written premium equal to $1.2 million which was paid in June 2024. The Company will collect the assessment from the policyholder based on an approved rate. The receivable balance as of December 31, 2025 and 2024 was $1.7 million and $2.1 million, respectively.

The LIGA assessed its members 1.0% of the Company's 2024 written premium equal to $1.8 million which was paid in June 2025. The Company will collect the assessment from the policyholder based on an approved rate. The receivable balance as of December 31, 2025 was $2.4 million.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 14 – Incentive Plan Compensation** 

The Company has an incentive bonus plan that employees are eligible to participate in strictly at the discretion of senior management and the Board of Directors. For the years ended December 31, 2025 and 2024, $7.8 million and $5.1 million, respectively, were charged to General and Administrative Expense within the Consolidated Statements of Comprehensive Income under the plan.

**Note 15 – Stockholders' Equity** 

*Restricted Stock Awards* 

The Company's Employee Equity-Based Compensation Plan ("the Plan"), which became effective in 2013, is shareholder approved and grants shares of the Company to certain employees. There were no modifications to the Plan during the years ended December 31, 2025 and 2024.

Grants issued in 2025 and 2024 have a three-year vesting period, have an average-weighted remaining vesting period of 2.1 years and 1.2 years, respectively, as of December 31, 2025 and contain only service-based conditions. The Company determined grant date fair value for these shares using both a discounted cash flows approach and a market multiples approach to fair value common equity and then applied a discount for lack of marketability. Certain awards provide for accelerated vesting if there is a change in control (as defined by the Plan). Stock compensation expense is recognized ratably over the vesting period of the grants.

Information with respect to the activity of unvested restricted stock awards during the years ended December 31, 2025 and 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  |<br>**Shares** | **Weighted-Average**<br>**Grant Date**<br>**Fair Value** |
|  Outstanding at January 1, 2024 | 804000 | $9.22 |
|  Granted | 4000 | 22.50 |
|  Vested |  |  |
|  Forfeited | (12000) | 9.22 |
|  Outstanding at December 31, 2024 | 796000 | 9.43 |
|  Granted | 11300 | 370.00 |
|  Vested |  |  |
|  Forfeited |  |  |
|  Outstanding at December 31, 2025 | 807300 | $14.77 |

---

As of December 31, 2025 and 2024, there was $3.8 million and $3.5 million, respectively, of total unrecognized compensation cost related to unvested equity-based compensation granted under the plan. The amortization expense recognized on unvested shares during the years ended December 31, 2025 and 2024, was $3.8 million and $2.5 million, respectively. Amortization expense recognized on unvested shares is recognized as General and Administrative Expense on the Consolidated Statements of Comprehensive Income.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 15 – Stockholders' Equity (Continued)** 

During the fiscal year ended December 31, 2026, approximately 780,000 shares are scheduled to vest, potentially increasing the number of common shares outstanding and impacting the basic and diluted earnings per share of the Company.

*Redeemable Preferred Stock* 

On April 27, 2023, the Company issued 114,622 shares of perpetual Series A Redeemable Preferred Stock at a price of $87.24 per share, for total gross proceeds of $10.0 million. Each share of Redeemable Preferred Stock is convertible into one common stock of the Company if the Company reaches an enterprise valuation of $200.0 million. The Redeemable Preferred Stock does not have a stated maturity date and is callable by the Company beginning April 28, 2025. The call option, if exercised, would require the Company to pay the holder of the Redeemable Preferred Stock face value plus any accrued and unpaid interest. The Redeemable Preferred Stock investment agreement does not include a net settlement provision for either embedded feature.

Upon conversion of Redeemable Preferred Stock into common stock, the carrying amount of the Redeemable Preferred Stock is reclassified to common stock and additional paid-in capital based on the number of shares of common stock issued.

On June 26, 2025, the holders of the Redeemable Preferred Stock converted all its outstanding preferred shares into common shares in accordance with the terms of the preferred shares agreement. The carrying value of the preferred shares at redemption was $9.8 million. Immediately following the conversion, the Company repurchased 26,958 of the 67,395 common shares held by the holders. The repurchase was accounted for under the cost method per ASC 505-30, with the repurchased shares recorded as treasury stock at the acquisition cost.

*Detachable Warrants* 

In conjunction with the issuance of the 18.0% $22.0 million subordinated note due October 6, 2029, the Company also issued detachable warrants, which provide the holders the right to purchase 70,404 shares of the Company's common stock at an exercise price of $177.55 per share. The warrants are exercisable beginning on October 6, 2023, and expire on October 6, 2033.

The issuance of these detachable warrants was accounted for separately from the debt securities in accordance with ASC 470-20. The fair value of the warrants on the issuance date was $0.1 million.

If the warrants are exercised, the Company will issue new shares of common stock and receive proceeds of $177.55 per share. As of December 31, 2025 and 2024, none of the warrants have been exercised.

As of December 31, 2025 and 2024, there were 70,404 detachable warrants outstanding to purchase shares of the Company's common stock.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 15 – Stockholders' Equity (Continued)** 

*Stock Options* 

On December 15, 2025, the Company granted options to purchase shares of the Company's common stock to certain named executive officers for a period of up to ten years. The stock options are eligible to vest ratably over four years, with one-fourth of the options eligible to vest on each of the first, second, third and fourth anniversary of the grant date, subject to continued employment through each such vesting date. The stock option awards were issued with four tiers of premium exercise prices, ranging from approximately 205% to 459% of the fair market value of a share of the Company's common stock on the date the options were granted. As a result, shares subject to each award will have a positive value only if the Company achieves the value threshold associated with the applicable premium exercise price. At each vesting date, each tranche of stock options that vest is allocated equally across the four exercise price tiers.

The following table provides assumptions used in the Black-Scholes pricing model to estimate the fair value of the stock options granted during 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expected volatility: 45%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expected dividend yield: 2%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Risk-free interest rate: 3.86%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expected life of the options: 6.3 years

The following table summarizes the activity of the stock options:

---

| | | | |
|:---|:---|:---|:---|
|  | **Options** | **Weighted Average<br>Exercise Price** | **Weighted Average<br>Remaining<br>Contractual Term** |
|  Outstanding at January 1, 2025 |  | $— |  |
|  Expirations |  |  |  |
|  Exercised |  |  |  |
|  Issued | 252078 | 1692.86 | 10.0 years |
|  Outstanding at December 31, 2025 | 252078 | $1692.86 | 10.0 years |

---

The amortization expense recognized on stock options during the year ended December 31, 2025 was $0.4 million. Amortization expense recognized on stock options is recognized as General and Administrative Expense on the Consolidated Statements of Comprehensive Income. As of December 31, 2025, there was $21.0 million of unrecognized compensation expense related to stock options.

**Note 16 – Related Party Transactions** 

The Company's relationship with Acrisure Re ("Acrisure") is broad. Acrisure a holder of the Company's common stock as well as investors in the surplus notes of the Reciprocal Exchanges (see *Note 12 – Long-Term Debt* for additional detail). Acrisure is also the primary reinsurance broker for SPI, Cajun, and Manatee. The Company had an outstanding payable of $1.8 million and $1.4 million to Acrisure as of December 31, 2025 and 2024, respectively.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 16 – Related Party Transactions (Continued)** 

Certain shareholders of the Company and members of management are members of Crawdaddy's Ventures, LLC ("Crawdaddy"), a Florida limited liability company, which is a holding company for Nsurehub, Inc. ("Nsurehub"). David Flitman is the largest shareholder in Crawdaddy and maintains a position of Chief Executive Manager of Crawdaddy. Other employees, officers and/or directors of Safepoint Holdings have, or may in the future be granted, an interest in Crawdaddy. ClinchPoint also owns a minority interest in Crawdaddy and is a manager of Crawdaddy.

Pursuant to a Stock Purchase Agreement, dated March 31, 2024, the Company sold 100% of the equity of Nsurehub, a wholly owned subsidiary of SPH, to Crawdaddy. Nsurehub is a non-exclusive insurance agent that writes business on behalf of the Company and other unaffiliated insurers. See *Note 10 – Variable Interest Entities* for additional detail.

On May 2, 2025, the Company made a seed capital contribution to the Shuriken Fund as its initial limited partner in the amount of $10.0 million. The investment manager of the Shuriken Fund is Shuriken Capital Management, LLC, a Delaware limited liability company (the "Shuriken Manager"). A subsidiary of the Shuriken Manager acts as the general partner of the Shuriken Fund. The Shuriken Manager is not owned by the Company but majority-owned and controlled by David Flitman and Steven Hoffman. Other employees, officers and/or directors of the Company have, or may in the future be granted, an interest in the Shuriken Manager. ClinchPoint also owns a minority interest in the Shuriken Manager.

**Note 17 – Segment Information** 

The Company generates revenue primarily through fees from providing insurance services to the reciprocal exchanges and underwriting revenue from the Company's risk-bearing entities. The Company evaluates ongoing economic and operating activities primarily through management of components of its operations primarily focused on its insurance production and underwriting results.

The Company has three operating segments: Insurance Services, Risk-bearing Entities, and Reciprocal Exchanges.

The Insurance Services segment mainly consists of Cajun AIF and Manatee AIF, as the attorneys-in-fact of the Reciprocal Exchanges, respectively, which manage the reciprocals' operations in exchange for a management fee.

The Risk-bearing Entities segment consists of business written and assumed on entities owned by Safepoint shareholders, including Safepoint Insurance Company and the Company's captives. The Risk-bearing Entities segment opportunistically writes insurance and reinsurance to drive additional profitability for the Safepoint shareholders.

The Reciprocal Exchanges segment consists of the operations of Cajun and Manatee. Cajun and Manatee are unincorporated groups of members, called subscribers, licensed to write insurance and not owned by the Safepoint shareholders. The economic outcomes of the reciprocals are classified as one-hundred percent non-controlling interests. See *Note 10 – Variable Interest Entities* for additional information.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 17 – Segment Information (Continued)** 

Intersegment transactions are accounted for in accordance with U.S. GAAP. Intersegment eliminations are mainly comprised of ceded premium, policy fees, policy administration costs, claims management costs, and intercompany surplus note interest. All three operating segments are also the Company's three reportable segments as they meet the criteria for separate disclosure based on the internal information reviewed by the CODM. Each of these segments is evaluated individually for performance and resource allocation, aligning with the Company's internal reporting structure.

The Company has identified its Chief Executive Officer ("CEO") as the CODM, as the CEO is responsible for making strategic decisions and allocating resources across the organization. The CODM regularly reviews revenue and income (loss) before income taxes at the operating segment level to assess performance and determine resource allocation. We review our assets on a consolidated basis for decision making purposes since they support business operations across all our reportable segments as well as our corporate and other activities. Assets by operating segment are not used by the CODM for purposes of making decisions about allocating resources to the segments and assessing performance, as such, this has not been presented. Monitoring of budgeted versus actual results are used in assessing performance of the segments and in establishing management's compensation.

The Company's operations and assets are located entirely within the United States and Bermuda.

*Segment Results* 

During the year ended December 31, 2025, the Company realigned its segment reporting to move the activities of SPM from the Insurance Services segment to the Risk-bearing Entities segment. This change was made to better reflect how the CODM evaluates the performance of the Company's operations and makes resource allocation decisions. In accordance with ASC 280, *Segment Reporting*, the Company has recast its segment information for the prior year presented to conform to the current year's presentation. This recasting had no impact on the Company's Consolidated Financial Statements.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 17 – Segment Information (Continued)** 

Management uses revenue and income (loss) before income taxes as the basis for the segment performance reviews. The following table presents the Company's operating performance by segment for the years ended December 31, 2025 and 2024 (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|  | **Insurance<br>Services** | **Risk-<br>bearing<br>Entities** | **Reciprocal<br>Exchanges*<sup>1</sup>*** | **Corporate &<br>Other** | **Eliminations** | **Total** |
|  Gross written premium | $— | $401521 | $804124 | $— | $(278407) | $927238 |
|  Gross earned premium |  | 399590 | 666014 |  | (262314) | 803290 |
|  Earned revenue: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net premiums earned | $— | $344996 | $132881 | $— | $— | $477877 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | 4371 | 2309 | 5585 |  | (5585) | 6680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy administration income | 135727 |  |  |  | (132507) | 3220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claims management income | 21019 |  |  |  | (21019) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 313 | 12620 | 13461 | 3257 | (4735) | 24916 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 319 | 2087 | 1568 |  | (358) | 3616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 161749 | 362012 | 153495 | 3257 | (164204) | 516309 |
|  Expenses: |  |  |  |  |  |  |
|  Losses and loss adjustment expenses | 10296 | 69363 | 86634 |  | (21018) | 145275 |
|  Policy acquisition costs, net of ceding commission |  | 138873 | 39356 |  | (119071) | 59158 |
|  General and administrative expenses | 36581 | 19518 | 7692 | 10894 | (291) | 74394 |
|  Interest expense |  |  | 5274 | 9354 | (4539) | 10089 |
|  Loss on debt extinguishment |  |  |  | 8873 |  | 8873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 46877 | 227754 | 138956 | 29121 | (144919) | 297789 |
|  Income (loss) before income taxes | $114872 | $134258 | $14539 | $(25864) | $(19285) | $218520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 52937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | 165583 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income of noncontrolling interest | 8367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | $157216 |

---

---

| | |
|:---|:---|
| ***1*** = | The Reciprocal Exchanges receive a subscriber contribution of 10% of the policy premium which is recorded to additional paid-in capital as received. The exchange received $57,654 during the year ended December 31, 2025.  |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 17 – Segment Information (Continued)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
|  | **Insurance<br>Services** | **Risk-<br>bearing<br>Entities** | **Reciprocal<br>Exchanges*<sup>1</sup>*** | **Corporate &<br>Other** | **Eliminations** | **Total** |
|  Gross written premium | $— | $385664 | $431584 | $— | $(174656) | $642592 |
|  Gross earned premium |  | 408899 | 200104 |  | (80465) | 528538 |
|  Earned revenue: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net premiums earned | $— | $241045 | $(3055) | $— | $— | $237990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy fee income | 1845 | 2947 | 3044 |  | (3044) | 4792 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy administration income | 66607 |  |  |  | (65945) | 662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claims management income | 7822 |  |  |  | (7822) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 164 | 10041 | 4381 | 2779 | (3386) | 13979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other insurance related income | 17 | 2883 | 1836 |  |  | 4736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 76455 | 256916 | 6206 | 2779 | (80197) | 262159 |
|  Expenses: |  |  |  |  |  |  |
|  Losses and loss adjustment expenses | 5328 | 106848 | 31696 |  | (7822) | 136050 |
|  Policy acquisition costs, net of ceding commission |  | 85414 | (23221) | 2270 | (25586) | 38877 |
|  General and administrative expenses | 24646 | 14765 | 11093 | 3695 | (1937) | 52263 |
|  Interest expense |  |  | 3768 | 4231 | (3255) | 4744 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 29974 | 207027 | 23336 | 10196 | (38600) | 231933 |
|  Income (loss) before income taxes | $46481 | $49889 | $(17130) | $(7417) | $(41597) | $30226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 5970 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | 24256 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss of noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss of noncontrolling interest | (17026) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | $41282 |

---

---

| | |
|:---|:---|
| ***1*** = | The Reciprocal Exchanges receive a subscriber contribution of 10% of the policy premium which is recorded to additional paid-in capital as received. The exchanges received $26,975 during the year ended December 31, 2024. |

---

The loss before income taxes in the elimination column is attributable to intercompany transactions among operating segments. The Insurance Services segment recognizes revenues according to revenue recognition standards. The Risk-bearing Entities and Reciprocal Exchanges segments record certain expenses based on earned premiums or other appropriate measures. Although these intercompany revenues and expenses are fully eliminated in consolidation, they do not completely offset each other in this presentation due to the different methods of recognition. The net difference in recognition methods is absorbed by the controlling interest in consolidation and results in a deferral of revenue recognized by the AIFs under revenue recognition standards.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 17 – Segment Information (Continued)** 

Intersegment transactions are not eliminated from segment results but are eliminated in consolidation. For the year ended December 31, 2025, total revenue eliminations of $164.2 million include eliminations of $153.9 million in Insurance Services (which includes fees and commissions paid by the Reciprocal Exchanges to Insurance Services), $5.6 million in Reciprocal Exchanges, and $4.7 million in eliminations related to surplus note interest across multiple segments. For the year ended December 31, 2024, total revenue eliminations of $80.2 million include eliminations of $73.8 million in Insurance Services (which includes fees and commissions paid by the Reciprocal Exchanges to Insurance Services), $3.0 million in Reciprocal Exchanges, and $3.4 million in eliminations related to surplus note interest across multiple segments.

For the year ended December 31, 2025, the Risk-bearing Entities segment had total revenue of $362.0 million, with $92.8 million of revenue generated from SPI and $269.2 million generated from the Company's wholly owned captives that provide reinsurance protection to the Reciprocal Exchanges. For the year ended December 31, 2024, the Risk-bearing Entities segment had total revenue of $256.9 million, with $174.6 million of revenue generated from SPI and $82.3 million generated from the Company's wholly owned captives that provide reinsurance protection to the Reciprocal Exchanges.

Certain items are presented in a different manner for segment reporting purposes than in the Consolidated Financial Statements. Policy administration income and claims management income have been separately reported in segment reporting but are presented within other insurance related income in the Consolidated Statement of Comprehensive Income. Net investment income and net realized investment gain have been combined for segment reporting but are presented separately in the Consolidated Statement of Comprehensive Income.

The Company's Corporate & Other function consists of business through SPH, which manages its management team, investors, debtholders, and shared service cost centers.

General and administrative expenses are comprised of employee compensation and benefits, depreciation and amortization, technology costs, and stock-based compensation. Depreciation and amortization costs included $1.1 million recognized on Insurance Services and $0.1 million recognized on Risk-bearing Entities for the year ended December 31, 2025. Depreciation and amortization costs included $1.3 million recognized on Insurance Services, $0.2 million recognized on Risk-bearing Entities, and $8.7 million recognized on Reciprocal Exchanges for the year ended December 31, 2024.

**Note 18 – Statutory Reporting** 

The assets, liabilities, and results of operations for SPI, Cajun, and Manatee have been reported in accordance with U.S. GAAP, which varies from statutory accounting practices ("SAP") prescribed or permitted by insurance regulatory authorities. Prescribed SAPs are found in a variety of publications of the National Association of Insurance Commissioners ("NAIC"), state laws and regulations, as well as through general practices. The principal differences between SAP and GAAP are that under SAP: (1) certain assets that are not admitted assets are eliminated from the balance sheet, (2) acquisition costs for policies are expensed as incurred, while they may be deferred and amortized over the estimated life of the policies under U.S.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 18 – Statutory Reporting (Continued)** 

GAAP, (3) differences may arise in the computation of deferred income taxes, (4) valuation allowances are established against investments, and (5) statutory accounting requires that unearned premiums and loss reserves are presented net of related reinsurance rather than on a gross basis under U.S. GAAP. SPI, Manatee, and Cajun must file with applicable state insurance regulatory authorities an "Annual Statement" which reports, among other items, net income and stockholders' equity (called "surplus as regards policyholders" in statutory reporting).

*Florida* 

SPI and Manatee are domiciled in the state of Florida. Florida Statutes (F.S. 624.408) require property and casualty insurers to maintain minimum capital and surplus of $15.0 million or 10% of the insurer's total liabilities for losses, loss adjustment expenses, and unearned premiums, whichever is greater, and to meet the risk-based capital requirements. Additionally, Florida Statutes (F.S. 624.4095) also limit gross and net written premiums relative to capital and surplus of property and casualty insurers writing property business. The maximum allowable ratios of gross and net written premiums to capital and surplus are 10-to-1 and 4-to-1, respectively. For the purposes of calculating the ratios, recorded gross and net written property premiums are multiplied by 0.9. SPI's ratios as of December 31, 2025 and 2024 were 1.0-to-1 and 2.1-to-1 on a gross basis, respectively, and 0.58-to-1 and 1.42-to-1 on a net basis, respectively, which are in compliance with the statutory requirements for minimum capital and surplus and limits on written premiums.

SPI's Statutory Pre-tax income and Surplus as of December 31, 2025 and 2024 was (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  Pre-tax income | $14819 | $14586 |
|  Surplus | 108405 | 90914 |

---

Manatee's Statutory Pre-tax income and Surplus as of December 31, 2025 and 2024 was (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  Pre-tax income | $14054 | $21013 |
|  Surplus | 105596 | 52663 |

---

SPI has maintained a cash deposit with the Insurance Commissioner of the State of Florida in the amount of $0.7 million to meet regulatory requirements. In addition, SPI maintains a cash deposit of $10.0 million pledged to the LDOI for grant funds received under the Incentive Program enacted in 2022 by the state of Louisiana to encourage additional property insurers to participate in the voluntary property insurance market. As a recipient of these grant funds, SPI is subject to Louisiana RS 22:2370, which states that the grant funds shall be earned at the rate of twenty percent per year and are subject to minimum premium requirements of four times the amount of grant funds received. The minimum premium requirement must be met within the first 24 months. The minimum requirements have been met by SPI as of December 31, 2025 and 2024. Under Florida law, a domestic insurer may not pay any dividend or distribute cash or other property to its stockholders except out of that part of its available and accumulated capital

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 18 – Statutory Reporting (Continued)** 

and surplus funds which is derived from realized net operating profits on its business and net realized capital gains. A Florida domestic insurer may not make dividend payments or distributions to stockholders without prior approval of the FLOIR if the dividend or distribution would exceed the larger of (1) the lesser of (a) 10.0% of its capital surplus or (b) net income, not including realized capital gains, plus a two year carry forward, (2) 10.0% of capital surplus with dividends payable constrained to unassigned funds minus 25.0% of unrealized capital gains or (3) the lesser of (a) 10.0% of capital surplus or (b) net investment income plus a three year carry forward with dividends payable constrained to unassigned funds minus 25.0% of unrealized capital gains.

Alternatively, a Florida domestic insurer may pay a dividend or distribution without the prior written approval of the FLOIR if (1) the dividend is equal to or less than the greater of (a) 10.0% of the insurer's capital surplus as regards to policyholders derived from realized net operating profits on its business and net realized capital gains or (b) the insurer's entire net operating profits and realized net capital gains derived during the immediately preceding calendar year, (2) the insurer will have policy holder capital surplus equal to or exceeding 115.0% of the minimum required statutory capital surplus after the dividend or distribution, (3) the insurer files a notice of the dividend or distribution with the FLOIR at least ten business days prior to the dividend payment or distribution and (4) the notice includes a certification by an officer of the insurer attesting that, after the payment of the dividend or distribution, the insurer will have at least 115% of required statutory capital surplus as to policyholders. Except as provided above, a Florida domiciled insurer may only pay a dividend or make a distribution (1) subject to prior approval by the FLOIR or (2) 30 days after the FLOIR has received notice of such dividend or distribution and has not disapproved it within such time.

*Louisiana* 

Throughout the fiscal year ended December 31, 2024, Cajun was domiciled in the state of Louisiana. Effective July 31, 2025, the Company completed a redomestication to the State of Alabama. Louisiana requirements mandate that reciprocal insurers authorized to transact homeowners' insurance or fire and allied lines after August 1, 1967, to have initial minimum surplus in the amount of $5.0 million.

Under Louisiana law, a domestic insurer may not pay any extraordinary dividend or distribution of cash or other property, whose fair market value together with that of other dividends or distributions made within the preceding twelve months exceeds the lesser of the following amounts: (a) 10% of the insurer's surplus as regards policyholders as of the thirty-first day of December next preceding or (b) net income for the twelve-month period ending the thirty-first day of December next preceding but shall not include pro rata distributions of any class of the insurer's own securities. In determining whether a dividend or distribution is extraordinary, an insurer may carryforward net income from the previous two calendar years that has not already been paid out as dividends. This carryforward shall be computed by taking the net income from the second and third preceding calendar years, not including realized capital gains, less dividends paid in the second and immediately preceding calendar years.

Notwithstanding any other provision of law, an insurer may declare an extraordinary dividend or distribution which is conditional upon the commissioner's approval, and the

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 18 – Statutory Reporting (Continued)** 

declaration shall confer no rights upon shareholders until either the commissioner has approved the payment of the dividend or distribution, or the commissioner has not disapproved payment within the thirty-day period referred to above.

*Alabama* 

Effective July 31, 2025, Cajun redomiciled to the state of Alabama from Louisiana. Alabama requirements mandate that reciprocal insurers domiciled in Alabama and transacting property and casualty insurance for less than five years to maintain a surplus of at least $1.3 million.

Under Alabama law, a domestic insurer may not pay any extraordinary dividend or distribution of cash or other property, whose fair market value together with that of other dividends or distributions made within the preceding 12 months exceeds the greater of the following: (1) 10% of the insurer's surplus as regards policyholders as of the thirty-first day of December next preceding or (2) the net income of the insurer not including realized capital gains or the pro rata distribution of any class of the insurer's own securities, for the twelve-month period ending the thirty-first day of December next preceding. In determining whether a dividend or distribution is extraordinary, an insurer may carryforward net income from the previous two calendar years that has not already been paid out as dividends. This carryforward shall be computed by taking the net income from the second and third preceding calendar years, not including realized capital gains, less dividends paid in the second and immediately preceding calendar years.

Notwithstanding any other provision of law, an insurer may declare an extraordinary dividend or distribution which is conditional upon the commissioner's approval, and the declaration shall confer no rights upon shareholders until either the commissioner has approved the payment of the dividend or distribution, or the commissioner has not disapproved payment within the thirty-day period referred to above.

Cajun's Statutory Pre-tax income and Surplus as of December 31, 2025 and 2024 was (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  Pre-tax income (loss) | $11496 | $(27511) |
|  Surplus | 58418 | 30156 |

---

Cajun maintains a cash deposit of $4.8 million pledged to the LDOI for grant funds received under the Incentive Program, as described above. The minimum requirements of the program have been met by Cajun as of December 31, 2025 and 2024.

*Risk-Based Capital* 

The NAIC publishes risk-based capital guidelines for insurance companies that are designed to assess capital adequacy and to raise the level of protection that statutory surplus provides for policy holders. Most states, including Florida and Alabama, have enacted the NAIC guidelines as statutory requirements, and insurers having less statutory surplus than required will be subject to varying degrees of regulatory action, depending on the level of capital inadequacy. State

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 18 – Statutory Reporting (Continued)** 

insurance regulatory authorities could require an insurer to cease operations in the event the insurer fails to maintain the required statutory capital.

The ratio of adjusted capital to authorized control level risk-based capital as of December 31, 2025 and 2024 was as follows, all of which exceed statutory requirements:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  Safepoint Insurance Company | 996% | 794% |
|  Cajun Underwriters Reciprocal Exchange | 509% | 433% |
|  Manatee Insurance Exchange | 675% | 658% |

---

**Note 19 – Earnings Per Share** 

The following table set forth the computation of basic and dilutive earnings per share for the years ended December 31, 2025 and 2024 (in thousands, except share and per share data):

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** |
|  **Basic earnings per share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Numerator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to controlling interest | $157216 | $41282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: accumulated dividends on redeemable preferred stock | 300 | 600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to common stockholders | $156916 | $40682 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Denominator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic weighted average shares outstanding | 494263 | 472797 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic earnings per share | $317.47 | $86.05 |
|  **Diluted earnings per share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Numerator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income available to common stockholders | $156916 | $40682 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Plus: accumulated dividends on redeemable preferred stock | 300 | 600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income available to common stockholders—diluted | $157216 | $41282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Denominator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic weighted average shares outstanding | 494263 | 472797 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of dilutive shares |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impact of unvested shares | 797776 | 671293 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impact of redeemable preferred stock |  | 114622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impact of warrants | 38271 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted weighted average shares outstanding | 1330310 | 1258712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share | $118.18 | $32.80 |

---

The Company had 252,078 and 70,404 of anti-dilutive shares that were excluded from the calculation of diluted weighted-average common share equivalents for the years ended December 31, 2025 and 2024, respectively.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**Note 20 – Subsequent Events** 

*The Company has evaluated subsequent events through April 13, 2026, the date the financial statements were available to be issued.* 

On January 5, 2026, the Company's Board of Directors declared a distribution to shareholders of $38 per common share, totaling $49.9 million, payable to shareholders of record as of January 7, 2026. The distribution was paid in cash on January 8, 2026.

In February 2026, the Company, including its current insurance company subsidiaries and affiliates, entered into a reinsurance agreement with Nature Coast Re Ltd. in the form of Catastrophe Bonds. Nature Coast Re Ltd. issued one class of notes in the amount of $250.0 million in total as collateral for the reinsurance coverage provided above the attachment level of $300.0 million. This coverage is effective from January 2026 through January 2030 and covers named storms in the states of Florida, Louisiana, Alabama, Mississippi, and Texas.

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Schedule II – Condensed Financial Information of Registrant** 

**Balance Sheets (Parent Company)** 

***(In thousands)***

---

| | | |
|:---|:---|:---|
|  | **December 31,<br>2025** | **December 31,<br>2024** |
|  Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities, available for sale, at fair value | $9989 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 60536 | 39193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax receivable, net | 74495 | 14959 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net | 877 | 876 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | 17795 | 19695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill | 9978 | 9978 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment in subsidiaries | 323655 | 145267 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 27370 | 4464 |
|  Total assets | $524695 | $234432 |
|  Liabilities and Stockholders' Equity |  |  |
|  Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | $1160 | $503 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax liability | 8493 | 10208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to affiliates | 184585 | 105379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt | 113312 | 21715 |
|  Total liabilities | 307550 | 137805 |
|  Preferred stock, $0.001 par value, 6.0% cumulative dividend, (0 and 114,622 shares authorized, issued, and outstanding, respectively) |  | 9841 |
|  Stockholders' Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock, par value $0.001 (5,000,000 authorized, 1,391,366 and 1,311,971 issued, 1,320,234 and 1,268,797 outstanding, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 53186 | 39163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | 172539 | 47487 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury stock, at cost 71,132 and 43,174 shares, respectively | (11178) | (799) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income, net of tax | 2598 | 935 |
|  Total equity attributable to controlling interest | 217145 | 86786 |
|  Total liabilities and stockholders' equity | $524695 | $234432 |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Schedule II – Condensed Financial Information of Registrant** 

**Statements of Comprehensive Income (Parent Company)** 

***(In thousands)***

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** |
|  Revenues: |  |  |
|  Net investment income | $2212 | $2407 |
|  Net realized investment gain |  | 132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 2212 | 2539 |
|  Expenses: |  |  |
|  Policy acquisition costs, net of ceding commissions |  | 2269 |
|  General and administrative expenses | 9958 | 3367 |
|  Interest expense | 9290 | 4232 |
|  Loss on debt extinguishment | 8873 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 28121 | 9868 |
|  Loss before income taxes | (25909) | (7329) |
|  Provision for income tax benefit | (7045) | (9049) |
| (Loss) income before equity in net income of subsidiaries | (18864) | 1720 |
|  Equity in net income of subsidiaries | 176080 | 39562 |
|  Net income attributable to controlling interest | 157216 | 41282 |
|  Other comprehensive income attributable to controlling interest | 1663 | 284 |
|  Comprehensive income attributable to controlling interest | $158879 | $41566 |

---

------

##### [**Table of Contents**](#toc)
**Safepoint Holdings, Inc. and Subsidiaries** 

**Schedule II – Condensed Financial Information of Registrant** 

**Statements of Cash Flows (Parent Company)** 

***(In thousands)***

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2025** | **Year Ended<br>December 31,<br>2024** |
|  **Operating activities** |  |  |
|  Net income attributable to controlling interest | $157216 | $41282 |
|  Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity in undistributed earnings of subsidiaries | (176080) | (39562) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 1900 | (1511) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt issuance costs | 922 | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of equity-based compensation | 4182 | 2538 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on debt extinguishment | 8873 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized investment loss |  | (132) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in net operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income taxes | (59908) | (8795) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax liability | (1343) | (227) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | (22995) | (2288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 658 | 339 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | (46) | 1973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment in subsidiaries | 78561 | 46136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | (8060) | 39813 |
|  **Investing activities** |  |  |
|  Purchases of fixed-maturity securities available for sale | (10000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | (10000) |  |
|  **Financing activities** |  |  |
|  Principal payments on notes payable | (8750) |  |
|  Purchase of treasury stock | (10379) |  |
|  Preferred stock dividends | (300) | (600) |
|  Issuance of notes payable | 125000 |  |
|  Payoff of notes payable principal | (31130) |  |
|  Debt issuance costs | (3318) |  |
|  Common stock dividends | (31720) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities | 39403 | (600) |
|  **Net increase in cash and cash equivalents** | 21343 | 39213 |
|  **Cash, cash equivalents, and restricted cash at beginning of period** | 39193 | (20) |
|  **Cash, cash equivalents, and restricted cash at end of period** | $60536 | $39193 |
|  Supplemental disclosures of cash flow information: |  |  |
|  Interest paid | $(8406) | $(3960) |

---

------

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

---

| | |
|:---|:---|
|  [Prospectus Summary](#rom73198_1) | 1 |
|  [Summary Consolidated Financial and Other Data](#rom73198_2) | 25 |
|  [Risk Factors](#rom73198_3) | 28 |
|  [Special Note Regarding Forward-Looking Statements](#rom73198_4) | 73 |
|  [Use of Proceeds](#rom73198_5) | 75 |
|  [Dividend Policy](#rom73198_6) | 76 |
|  [Capitalization](#rom73198_7) | 77 |
|  [Dilution](#rom73198_8) | 79 |
|  [Management's Discussion and Analysis of Financial Condition And Results of Operations](#rom73198_9) | 82 |
|  [Business](#rom73198_10) | 128 |
|  [Regulation](#rom73198_11) | 156 |
|  [Management](#rom73198_12) | 167 |
|  [Executive Compensation](#rom73198_13) | 174 |
|  [Certain Relationships and Related Party Transactions](#rom73198_14) | 183 |
|  [Principal and Selling Stockholders](#rom73198_15) | 187 |
|  [Description of Capital Stock](#rom73198_16) | 189 |
|  [Description of Certain Indebtedness](#rom73198_17) | 194 |
|  [Shares Eligible for Future Sale](#rom73198_18) | 196 |
|  [Material U.S. Federal Income Tax Consequences to Non-U.S. Holders](#rom73198_19) | 199 |
|  [Underwriting](#rom73198_20) | 204 |
|  [Legal Matters](#rom73198_21) | 213 |
|  [Change In Accountants](#rom73198_22) | 214 |
|  [Experts](#rom73198_23) | 215 |
|  [Where You Can Find Additional Information](#rom73198_24) | 216 |
|  [Index to Consolidated Financial Statements](#rom73198_25) | F-1 |

---

**You should rely only on the information contained in this prospectus and any free writing prospectus that we may provide to you in connection with this offering. We, the selling stockholders and the underwriters have not authorized anyone to provide you with different information or to make any other representations, and we, the selling stockholders and the underwriters take no responsibility for, and can provide no assurance as to the reliability of, any other information others may give you. We and the selling stockholders are offering to sell, and seeking offers to buy, shares of our common stock only under circumstances and in jurisdictions where it is lawful to do so. Neither we, the selling stockholders nor any of the underwriters are making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. You should not assume that the information contained in this prospectus is accurate as of any date other than its date. Our business, financial condition, results of operations and prospects may have changed since that date.** 

**For investors outside the United States: Neither we, the selling stockholders nor any of the underwriters have done anything that would permit this offering or the possession or distribution of this prospectus in any jurisdiction where action for those purposes is required, other than in the United States. Persons outside of the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the shares of our common stock and the distribution of this prospectus outside of the United States.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Shares** 

**SAFEPOINT HOLDINGS, INC.** 

**Common Stock**![LOGO](g73198g22m01.jpg)

**PROSPECTUS** 

*Joint Bookrunning Managers* 

**Deutsche Bank Securities** 

**Morgan Stanley** 

**Keefe, Bruyette & Woods** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*A Stifel Company* 

**Citizens Capital Markets** 

**Piper Sandler** 

**Truist Securities** 

**William Blair** 

*Co-Managers* 

**Regions Securities LLC** 

**Academy Securities** 

**Huntington Capital Markets** 

**Synovus** 

**Wedbush Securities** 

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

**Through and including , 2026 (the 25th day after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This delivery requirement is in addition to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.** 

------

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

**INFORMATION NOT REQUIRED IN PROSPECTUS** 

**Item 13. Other Expenses of Issuance and Distribution.** 

The actual and estimated expenses in connection with this offering, all of which will be borne by us, are as follows:

---

| | |
|:---|:---|
|  SEC registration fee | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\* |
|  FINRA filing fee | \* |
|  Printing and engraving expenses | \* |
|  Legal fees and expenses | \* |
|  Accounting fees and expenses | \* |
|  Transfer agent and registrar fees | \* |
|  Miscellaneous expenses | \* |
|  Total | $\* |

---

\* To be completed by amendment

**Item 14. Indemnification of Directors and Officers.** 

As permitted by Section 102(b)(7) of the DGCL, we plan to include in our certificate of incorporation a provision to eliminate the personal liability of our directors for monetary damages for breach of their fiduciary duties as directors, subject to certain exceptions. In addition, our certificate of incorporation and by-laws will provide that we are required to indemnify our directors under certain circumstances, including those circumstances in which indemnification would otherwise be discretionary, and we are required to advance expenses to our directors as incurred in connection with proceedings against them for which they may be indemnified, in each case except to the extent that the DGCL prohibits the elimination or limitation of liability of directors for breaches of fiduciary duty.

Section 145(a) of the DGCL provides that a corporation shall have the power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the corporation) by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interest of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction or upon a plea of nolo contendere or its equivalent shall not, of itself, create a presumption that the person did not act in good faith and in a manner which the person reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his conduct was unlawful.

Section 145(b) of the DGCL provides that a corporation shall have the power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that the person is or was a director, officer, employee or agent

------

##### [**Table of Contents**](#toc)
of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses (including attorneys' fees) actually and reasonably incurred by him in connection with the defense or settlement of such action or suit if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation and except that no indemnification shall be made with respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.

We have entered into indemnification agreements with our directors and, prior to the completion of this offering, intend to enter into indemnification agreements with certain of our officers. These indemnification agreements will provide broader indemnity rights than those provided under the DGCL and our certificate of incorporation. These indemnification agreements are not intended to deny or otherwise limit third-party or derivative suits against us or our directors or officers, but to the extent a director or officer were entitled to indemnity or contribution under the indemnification agreement, the financial burden of a third-party suit would be borne by us, and we would not benefit from derivative recoveries against the director or officer. Such recoveries would accrue to our benefit but would be offset by our obligations to the director or officer under the indemnification agreement.

The underwriting agreement will provide that the underwriters are obligated, under certain circumstances, to indemnify our directors, officers and controlling persons against certain liabilities, including liabilities under the Securities Act.

We maintain directors' and officers' liability insurance for the benefit of our directors and officers.

**Item 15. Recent Sales of Unregistered Securities.** 

Since January 1, 2023, the Registrant has issued the following unregistered securities:

&nbsp;&nbsp;&nbsp;&nbsp;*(a) Sale of 114,622 shares of Series A Preferred Stock* 

On April 27, 2023, the registrant issued 114,622 shares of Series A Preferred Stock to Acrisure-SI Vehicles, LLC ("Acrisure SI"), at a price of $87.24 per share, for an aggregate purchase price of approximately $10 million. The proceeds from such sale were used to fund management's buyout transaction of the Company. Such shares were freely convertible into a certain number of fully-paid and nonassessable shares of common stock at any time once the registrant obtained an enterprise value of $200 million. On June 26, 2025 and upon conversion of all shares of Acrisure SI's Series A Preferred Stock (i) 67,395 shares of our common stock were issued and subsequently (ii) Safepoint Holdings repurchased 26,958 shares of such common stock for an aggregate purchase price of $10 million. Following these transactions, Acrisure SI owns 40,437 shares of our common stock.

No broker-dealers were involved in the foregoing issuances of securities. The securities described in this section (a) of Item 15 were issued to investors in reliance upon the exemption from the registration requirements of the Securities Act, as set forth in Section 4(a)(2) under the Securities Act, to the extent an exemption from such registration was required. All holders of securities described above represented to the Registrant in connection with their purchase or

------

##### [**Table of Contents**](#toc)
issuance that they were accredited investors and were acquiring the securities for their own account for investment purposes only and not with a view to, or for sale in connection with, any distribution thereof and that they could bear the risks of the investment and could hold the securities for an indefinite period of time. The holders received written disclosures that the securities had not been registered under the Securities Act and that any resale must be made pursuant to a registration statement or an available exemption from such registration.

&nbsp;&nbsp;&nbsp;&nbsp;*(b) Sale of Debt Securities* 

On October 6, 2023, Safepoint Holdings entered into a Note Purchase Agreement pursuant to which Safepoint Holdings issued to Tacora Capital, LP $22 million of subordinated secured notes due 2029 (referred to as the 2029 Notes) at a per annum interest rate equal to 18.0%. The proceeds were used to purchase surplus notes of Manatee. The 2029 Notes were redeemed in full as of February 18, 2025.

No broker-dealers were involved in the foregoing issuances of securities. The securities described in this section (b) of Item 15 were issued to investors in reliance upon the exemption from the registration requirements of the Securities Act, as set forth in Section 4(a)(2) under the Securities Act, to the extent an exemption from such registration was required. All holders of securities described above represented to the Registrant in connection with their purchase or issuance that they were accredited investors and were acquiring the securities for their own account for investment purposes only and not with a view to, or for sale in connection with, any distribution thereof and that they could bear the risks of the investment and could hold the securities for an indefinite period of time. The holders received written disclosures that the securities had not been registered under the Securities Act and that any resale must be made pursuant to a registration statement or an available exemption from such registration.

&nbsp;&nbsp;&nbsp;&nbsp;*(c) Grants of Stock Awards and Issuance of Shares* 

The Registrant granted to certain employees and non-employee directors awards of Restricted Stock and Options under the 2024 Plan as follows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On May 2, 2023, 768,000 shares of Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On August 10, 2023, 21,000 shares of Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On November 13, 2023, 7,000 shares of Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On December 18, 2023, 3,000 shares of Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On March 1, 2024, 4,000 shares of Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 1, 2025, 11,700 shares of Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On December 15, 2025, (i) 63,022 Options granted with an exercise price of $2,421.98, (ii) 63,019 Options granted with an
exercise price of $1,917.40, (iii) 63,018 Options granted with an exercise price of $1,353.46, (iv) 63,018 Options granted with an exercise price of $1,078.54 and (v) 300 shares of Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 16, 2026, 700 shares of Restricted Stock.

As of December 31, 2025, 12,000 shares of Restricted Stock had been forfeited.

The foregoing issuances were not registered under the Securities Act, because the shares were offered and sold in transactions by the issuer not involving any public offering exempt from registration under Section 4(a)(2) of the Securities Act or Rule 701 thereunder, as transactions by an issuer not involving a public offering or transactions pursuant to compensatory benefit plans and contracts relating to compensation as provided under such Rule 701.

------

##### [**Table of Contents**](#toc)
**Item 16. Exhibits and Financial Statement Schedules.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *Exhibits* 

---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Exhibit Description** |
| 1.1\* | Form of Underwriting Agreement |
| 3.1 | [Certificate of Incorporation, dated May 8, 2026, of Safepoint Holdings, Inc.](d73198dex31.htm) |
| 3.2 | [Form of Amended and Restated Certificate of Incorporation of Safepoint Holdings, Inc., to be in effect upon closing of this offering](d73198dex32.htm) |
| 3.3 | [Bylaws, adopted May 8, 2026, of Safepoint Holdings, Inc.](d73198dex33.htm) |
| 3.4 | [Form of Amended and Restated Bylaws of Safepoint Holdings, Inc., to be in effect upon the closing of this offering](d73198dex34.htm) |
| 4.1 | [Credit Agreement, dated as of February 18, 2025, by and among Safepoint Holdings, Inc., the guarantors named therein and Regions Bank as administrative agent, collateral agent, issuing bank, and swingline lender with respect to a $100 million term loan, as well as commitments in respect of a delayed law term loan facility and a revolving credit facility](d73198dex41.htm) |
| 4.2 | [First Amendment, dated as of April 11, 2025 to the Credit Agreement, dated as of February 18, 2025, by and among Safepoint Holdings, Inc., the guarantors named therein and Regions Bank as administrative agent, collateral agent, issuing bank, and swingline lender](d73198dex42.htm) |
| 4.3 | [Second Amendment, dated as of May 30, 2025 to the Credit Agreement, dated as of February 18, 2025, by and among Safepoint Holdings, Inc., the guarantors named therein and Regions Bank as administrative agent, collateral agent, issuing bank, and swingline lender](d73198dex43.htm) |
| 4.4 | [Third Amendment, dated as of August 15, 2025 to the Credit Agreement, dated as of February 18, 2025, by and among Safepoint Holdings, Inc., the guarantors named therein and Regions Bank as administrative agent, collateral agent, issuing bank, and swingline lender](d73198dex44.htm) |
| 4.5 | [Amended and Restated Credit Agreement, dated as of May 5, 2026, by and among Safepoint Holdings, Inc., the guarantors named therein and Regions Bank as administrative agent, collateral agent, issuing bank, and swingline lender with respect to a $200 million term loan, as well as commitments in respect of a delayed law term loan facility and a revolving credit facility](d73198dex45.htm) |
| 4.6 | [Class A Subordinated Surplus Debenture, dated as of June 15, 2022, by and between Cajun Underwriters Reciprocal Exchange and Safepoint Insurance Company](d73198dex46.htm) |
| 4.7 | [Class A Subordinated Surplus Debenture, dated as of June 15, 2022, by and between Cajun Underwriters Reciprocal Exchange and Cajun Investco I, LLC](d73198dex47.htm) |
| 4.8 | [Class A Subordinated Surplus Debenture, dated as of June 15, 2022, by and between Cajun Underwriters Reciprocal Exchange and Safepoint Insurance Company (as successor in interest to ClinchPoint Holdings LLC)](d73198dex48.htm) |
| 4.9 | [Class A Subordinated Surplus Debenture, dated as of September 23, 2022, by and between Cajun Underwriters Reciprocal Exchange and Cajun Investco I, LLC](d73198dex49.htm) |
| 4.10 | [Class A Subordinated Surplus Debenture, dated as of May 4, 2023, by and between Cajun Underwriters Reciprocal Exchange and Cajun Underwriters Holdings, LLC](d73198dex410.htm) |

---

------

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

---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Exhibit Description** |
| 4.11 | [Class A Subordinated Surplus Debenture, dated as of February 7, 2024, by and between Cajun Underwriters Reciprocal Exchange and Safepoint Holdings, Inc.](d73198dex411.htm) |
| 4.12 | [Subordinated Surplus Debenture, dated as of January 5, 2024, by and between Manatee Insurance Exchange and Safepoint Holdings, Inc.](d73198dex412.htm) |
| 4.13 | [Subordinated Surplus Debenture, dated as of January 18, 2024, by and between Manatee Insurance Exchange and Acrisure SI—Vehicles, LLC](d73198dex413.htm) |
| 5.1 | [Form of Opinion of Willkie Farr & Gallagher LLP](d73198dex51.htm) |
| 10.1 | [Form of Indemnification Agreement](d73198dex101.htm) |
| 10.2\*\* | [Form of Catastrophe Aggregate Excess of Loss Reinsurance Contract, effective May 1, 2025, issued to Safepoint Insurance Company by the Subscribing Reinsurers identified in the Interests and Liabilities Agreements](d73198dex102.htm) |
| 10.3 | [Managing General Agency and Claims Administration Agreement, dated as of February 1, 2024, between Safepoint MGA, LLC and Manatee Risk Management, LLC, acting as attorney-in-fact for Manatee Insurance Exchange](d73198dex103.htm) |
| 10.4 | [Managing General Agency and Claims Administration Agreement, dated as of November 14, 2013, between Safepoint MGA, LLC and Safepoint Insurance Company](d73198dex104.htm) |
| 10.5 | [Policy Administration and Claims Servicing Agreement, dated as of June 15, 2022, by and between Cajun Underwriters Risk Managers and Insight Risk Solutions](d73198dex105.htm) |
| 10.6 | [Agreement of the Attorney-In-Fact of Cajun Underwriters Reciprocal Exchange, dated as of June 15, 2022, by and between Cajun Underwriters Reciprocal Exchange and Cajun Underwriters Risk Management LLC](d73198dex106.htm) |
| 10.7 | [Agreement of the Attorney-In-Fact of Manatee Insurance Exchange, dated as of January 30, 2024, by and between Manatee Insurance Exchange and Manatee Risk Management LLC](d73198dex107.htm) |
| 10.8† | [Safepoint Holdings, Inc. 2024 Stock Incentive Plan](d73198dex108.htm) |
| 10.9† | [Form of Option Grant Notice and Agreement for the Safepoint Holdings, Inc. 2024 Stock Incentive Plan](d73198dex109.htm) |
| 10.10† | [Safepoint Holdings, Inc. 2026 Stock Incentive Plan](d73198dex1010.htm) |
| 10.11\*† | Form of Restricted Stock Unit Grant Notice and Agreement for the Safepoint Holdings, Inc. 2026 Stock Incentive Plan |
| 10.12\*† | Form of Restricted Stock Grant Notice and Agreement for the Safepoint Holdings, Inc. 2026 Stock Incentive Plan |
| 10.13† | [Safepoint Holdings, Inc. 2026 Employee Stock Purchase Plan](d73198dex1013.htm) |
| 10.14† | [Second Amended and Restated Employment Agreement, dated as of September 3, 2024, by and between Safepoint Holdings, Inc. and David Flitman](d73198dex1014.htm) |
| 10.15† | [Amended and Restated Employment Agreement, dated as of September 3, 2024, by and between Safepoint Holdings, Inc. and Steven Hoffman](d73198dex1015.htm) |
| 10.16† | [Amended and Restated Employment Agreement, dated as of September 3, 2024, by and between Safepoint Holdings, Inc. and Gustavo Fernandez](d73198dex1016.htm) |
| 10.17† | [Form of Safepoint Holdings, Inc. Long-Term Incentive Plan Agreement](d73198dex1017.htm) |

---

------

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

---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Exhibit Description** |
| 10.18 | [Form of Cajun Subscriber Agreements](d73198dex1018.htm) |
| 10.19 | [Form of Manatee Subscriber Agreements](d73198dex1019.htm) |
| 16.1 | [Letter from RSM US LLP Regarding Change in Accountants](d73198dex161.htm) |
| 21.1 | [List of Subsidiaries](d73198dex211.htm) |
| 23.1 | [Consent of PricewaterhouseCoopers LLP](d73198dex231.htm) |
| 23.2 | [Consent of Willkie Farr & Gallagher LLP (included in Exhibit 5.1)](d73198dex51.htm) |
| 24.1 | [Power of Attorney (included in the signature page to Registration Statement)](#sig) |
| 97.1\* | Clawback Policy |
| 107 | [Filing Fees Table](d73198dexfilingfees.htm) |

---

\* To be filed by amendment

\*\* Portions of this exhibit (indicated by asterisks) have been omitted pursuant to a request for confidential treatment, and this exhibit has been filed separately with the SEC.

† Indicates management contract or compensatory plan, contract or arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *Financial Statement Schedules.* All financial statement schedules are omitted because the information called
for is not required or is shown either in the consolidated financial statements or in the notes thereto.

**Item 17.** **Undertakings.** <br>

The undersigned registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by us of expenses incurred or paid by a director, officer or controlling person of us in the successful defense of any action, suit, or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, we will, unless in the opinion of counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

We hereby undertake that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus
filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this
registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for purposes of determining any liability under the Securities Act, each post-effective amendment that contains a form of
prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

------

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

Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant has duly caused this registration statement on Form S-1 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Tampa, State of Florida on the 8th day of May, 2026.

---

| | |
|:---|:---|
| **Safepoint Holdings, Inc.** | **Safepoint Holdings, Inc.** |
| By: | /s/ David Flitman |
| Name: | David Flitman |
| Title: | Chief Executive Officer |

---

**POWER OF ATTORNEY** 

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints David Flitman and Steven Hoffman, and each of them, as his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution and full power to act without the other, for him or her and to act in his or her name, place and stead, in any and all capacities, to execute the Registration Statement on Form S-1 of Safepoint Holdings, Inc. and any or all amendments (including post-effective amendments) thereto and any new registration statement with respect to the offering contemplated hereby filed pursuant to Rule 462(b) of the Securities Act of 1933, as amended, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite or necessary to be done in and about the premises hereby ratifying and confirming all that said attorneys-in-fact and agents, or his or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this registration statement on Form S-1 has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ David Flitman<br> David Flitman | Chief Executive Officer and Chair of the Board<br> (principal executive officer) | May 8, 2026 |
| /s/ Steven Hoffman<br> Steven Hoffman | Chief Financial Officer<br> (principal financial officer and principal accounting officer) | May 8, 2026 |
| /s/ William Arowood<br> William Arowood | Director | May 8, 2026 |
| /s/ Jim Donelon<br> Jim Donelon | Director | May 8, 2026 |

---

------

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

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ Donald Rhomberg<br> Donald Rhomberg | Director | May 8, 2026 |
| /s/ Ben Rosenblum<br> Ben Rosenblum | Director | May 8, 2026 |
| /s/ Amy Usiak<br> Amy Usiak | Director | May 8, 2026 |

---

## Exhibit 3.1

**Exhibit 3.1** 

**CERTIFICATE OF INCORPORATION** 

**OF** 

**SAFEPOINT HOLDINGS, INC.** 

**a Delaware corporation** 

ARTICLE I

<u>NAME</u> 

The name of the corporation shall be SAFEPOINT HOLDINGS, INC. For purposes of convenience, the corporation shall be referred to in this instrument as the "Corporation."

ARTICLE II

<u>PRINCIPAL OFFICE</u> 

The principal place of business of the Corporation is:

4010 Gunn Highway

Tampa, FL 33618

ARTICLE III

<u>PURPOSE</u> 

The purpose for which the Corporation is organized is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of Delaware.

ARTICLE IV

<u>SHARES</u> 

The Corporation shall be authorized to issue up to Five Million (5,000,000) shares, having a par value of ($0.001) per share.

ARTICLE V

<u>REGISTERED AGENT</u> 

The name and Delaware street address of the registered agent is:

c/o Corporation Service Company

251 Little Falls Drive

Wilmington, DE 19808, County of New Castle

------

ARTICLE VI

<u>INCORPORATOR</u> 

The name and address of the Incorporator is:

Steven Hoffman

4010 Gunn Highway

Tampa, FL 33618

ARTICLE VII

<u>EFFECTIVE DATE</u> 

The Effective Date shall be May 8, 2026.

**IN WITNESS WHEREOF**, this Certificate of Incorporation has been executed by a duly authorized officer of this Corporation on this 8<sup>th</sup> day of May, 2026.

---

| | |
|:---|:---|
| By: | /s/ Steven Hoffman |
| Name: | Steven Hoffman |
| Title: | Incorporator |

---

## Exhibit 3.2

**Exhibit 3.2** 

**AMENDED AND RESTATED** 

**CERTIFICATE OF INCORPORATION** 

**OF** 

**SAFEPOINT HOLDINGS, INC.** 

**a Delaware corporation** 

Safepoint Holdings, Inc., (the "***Corporation***") a corporation organized and existing under and by virtue of the provisions of the General Corporation Law of the State of Delaware (the "***DGCL***"),

**DOES HEREBY CERTIFY:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the Corporation was originally formed under the Florida Revised Limited Liability Company Act as Safepoint Holdings, LLC on May 31, 2013, and converted to a corporation under the Florida Business Corporation Act of the State of Florida on July 1, 2015;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the Corporation converted to a Delaware corporation pursuant to Section 265 of the Delaware General Corporation Law (the "***DGCL***") on May 8, 2026 (the "***Conversion***") and, in connection with the Conversion and to ensure compliance with the applicable laws and regulations of the State of Delaware, simultaneously amended and restated its original Articles of Incorporation (the "***Certificate of Incorporation***") and its original Bylaws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. the Amended and Restated Certificate of Incorporation, which amends and restates the provisions of the Certificate of Incorporation of the Corporation, was approved and authorized in the manner provided for by the Certificate of Incorporation and became effective upon the filing of this Amended and Restated Certificate of Incorporation with the office of the Secretary of State of the State of Delaware in accordance with Section 245(d) of the DGCL; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. the Amended and Restated Certificate of Incorporation of the Corporation shall read in its entirety as set forth on <u>Exhibit A</u> hereto.

[*Remainder of page intentionally left blank*]

------

**IN WITNESS WHEREOF**, this Amended and Restated Certificate of Incorporation has been executed by a duly authorized officer of this Corporation on this ___ day of _________, _____.

---

| |
|:---|
| By: |
| Name: |
| Title: |

---

------

**<u>EXHIBIT A</u>**

**AMENDED AND RESTATED** 

**CERTIFICATE OF INCORPORATION** 

**OF** 

**SAFEPOINT HOLDINGS, INC.** 

**a Delaware corporation** 

<u>ARTICLE I</u> 

The name of the corporation is Safepoint Holdings, Inc. (hereinafter referred to as the "***Corporation***").

<u>ARTICLE II</u> 

The address of the Corporation's registered office in the State of Delaware is 251 Little Falls Drive, Wilmington, DE 19808, County of New Castle. The name of the Corporation's registered agent at such address is Corporation Service Company.

<u>ARTICLE III</u> 

The purpose of the Corporation is to engage in any lawful act or activity for which a corporation may be organized under the General Corporation Law of the State of Delaware (the "***DGCL***") and to possess and employ all powers and privileges now or hereafter granted or available under the laws of the State of Delaware to such corporations.

<u>ARTICLE IV</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The total number of shares of capital stock of all classes that the Corporation shall have authority to issue is [•] shares, consisting of: [•] shares of common stock, $0.01 par value per share ("***Common Stock***") and [•] shares of preferred stock, par value $0.01 per share ("***Preferred Stock***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Except as otherwise restricted by this Amended and Restated Certificate of Incorporation (this "***Certificate***"), the Corporation is authorized to issue, from time to time, all or any portion of the capital stock of the Corporation which may have been authorized but not issued, to such person or persons and for such lawful consideration as it may deem appropriate, and generally in its absolute discretion to determine the terms and manner of any disposition of such authorized but unissued capital stock. Any and all such shares issued for which the full consideration has been paid or delivered shall be deemed fully paid shares of capital stock, and the holder of such shares shall not be liable for any further call or assessment or any other payment thereon.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The designations and the powers, preferences and rights and qualifications, limitations or restrictions of the shares of each class of stock are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Common Stock**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. The voting, dividend and liquidation rights of the holders of the Common Stock are subject to the rights of the holders of any series of Preferred Stock then outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Voting</u>. Except as otherwise provided herein, the holders of the Common Stock are entitled to one (1) vote for each share of Common Stock held at all meetings of stockholders; <u>provided</u>, <u>however</u>, that, except as otherwise required by law, holders of Common Stock, as such, shall not be entitled to vote on any amendment to this Certificate that relates solely to the terms of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to this Certificate or pursuant to the DGCL. There shall be no cumulative voting. The number of authorized shares of Common Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by (in addition to any vote of the holders of one or more series of Preferred Stock that may be required, if any Preferred Stock is then outstanding) the affirmative vote of the holders of shares of capital stock of the Corporation representing a majority of all outstanding shares of capital stock of the Corporation entitled to vote, irrespective of the provisions of Section 242(b)(2) of the DGCL. For the avoidance of doubt, but subject to the rights of the holders of any outstanding Preferred Stock, Section 242(d) of the DGCL shall apply to amendments to this Restated Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Preferred Stock**. The shares of Preferred Stock shall initially be undesignated and may be issued from time to time in one or more additional series by the Board of Directors. The Board of Directors is hereby authorized, subject to any limitations prescribed by law, to determine or alter the rights, preferences, privileges and restrictions granted to or imposed upon a wholly-unissued series of Preferred Stock, and the number of shares constituting any such series and the designation thereof, or any of them; and to increase or decrease the number of shares constituting any such series and the designation thereof, or any of them; and to increase or decrease the number of shares of any series subsequent to the issue of shares of that series, but, in respect of decreases, not below the number of shares of such series then outstanding. In case the number of shares of any series should be so decreased, the shares constituting such decrease shall resume the status which they had prior to the adoption of the resolutions originally fixing the number of shares of such series. The number of authorized shares of Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the outstanding shares of Common Stock without a vote of the holders of the Preferred Stock, or of any series thereof, unless a vote of any such holders is required pursuant to the certificate or certificates establishing any series of Preferred Stock.

<u>ARTICLE V</u> 

The Corporation is to have perpetual existence.

------

<u>ARTICLE VI</u> 

The following provisions are inserted for the management of the business and the conduct of the affairs of the Corporation, and for further definition, limitation and regulation of the powers of the Corporation and of its directors and stockholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors. In addition to the powers and authority expressly conferred upon them by law or by this Certificate or the bylaws of the Corporation, as the same may be amended from time to time (the "***Bylaws***"), the directors are hereby empowered to exercise all such powers and do all such acts and things as may be exercised or done by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The directors of the Corporation need not be elected by written ballot unless the Bylaws so provide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Subject to the rights of the holders of any series of Preferred Stock, any action required or permitted to be taken by the stockholders of the Corporation must be effected at a duly called annual or special meeting of stockholders of the Corporation and may not be effected by any consent in writing by such stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Subject to the rights of the holders of any series of Preferred Stock then outstanding, special meetings of stockholders of the Corporation may be called only by the Board of Directors pursuant to a resolution adopted by a majority of the total number of authorized directors (whether or not there exist any vacancies in previously authorized directorships at the time any such resolution is presented to the Board of Directors for adoption), the Chairperson of the Board of Directors or the Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. The number of directors shall be fixed from time to time exclusively by the Board of Directors pursuant to a resolution adopted by a majority of the total number of authorized directors (whether or not there exist any vacancies in previously authorized directorships at the time any such resolution is presented to the Board of Directors for adoption). Beginning immediately following the consummation of the Corporation's initial public offering of its Common Stock pursuant to an effective registration statement under the Securities Act of 1933, as amended, (the "***Initial Public Offering***"), the directors shall, by resolution of the Board of Directors, be divided into three classes, hereby designated Class I, Class II and Class III. The term of office of the initial Class I directors shall expire at the first annual meeting of stockholders of the Corporation following the Initial Public Offering, the term of office of the initial Class II directors shall expire at the second annual meeting of stockholders of the Corporation following the Initial Public Offering, and the term of office of the initial Class III directors shall expire at the third annual meeting of stockholders of the Corporation following the Initial Public Offering. At each annual meeting of stockholders of the Corporation following the Initial Public Offering, directors elected to replace those of a class whose terms expire at such annual meeting shall be elected for a term expiring at the third succeeding annual meeting of stockholders of the Corporation after such election. All directors shall hold office until the expiration of the term for which elected, and until their respective successors have been duly elected and qualified, except in the case of the death, resignation, or removal of any director. Nothing in this Certificate shall preclude a director from serving consecutive terms.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Subject to the rights of the holders of any series of Preferred Stock then outstanding, (i) newly created directorships resulting from any increase in the authorized number of directors and (ii) any vacancies in the Board of Directors resulting from death, resignation, disqualification, removal from office, or other cause may be filled only by the Board of Directors (and not by stockholders), provided that a quorum is then in office and present, or by a majority of the directors then in office, if less than a quorum is then in office, or by the sole remaining director. A director elected to fill a vacancy shall be elected for the unexpired term of such director's predecessor in office and until such director's successor is duly elected and qualified, or until such director's earlier death, resignation, or removal. After the Initial Public Offering, a director chosen to fill a position resulting from an increase in the number of directors shall hold office until the next election of the class for which such director shall have been chosen, and until such director's successor is duly elected and qualified, or until such director's earlier death, resignation, or removal. No decrease in the authorized number of directors constituting the Board of Directors shall shorten the term of any incumbent director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Subject to the rights of the holders of any series of Preferred Stock then outstanding, and notwithstanding any other provision of this Certificate, directors may be removed from office only for cause and only by the affirmative vote of the holders of at least sixty-six and two-thirds percent (66-2/3%) of the voting power of all of the then outstanding shares of the capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class. Vacancies in the Board of Directors resulting from such removal shall be filled as set forth above under <u>Article VI</u>, <u>Part F</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Subject to the rights of holders of any series of Preferred Stock, advance notice of stockholder nominations for election of directors and of business to be brought by stockholders before any meeting of stockholders of the Corporation shall be given in the manner provided by the Bylaws of the Corporation.

<u>ARTICLE VII</u> 

The Corporation shall indemnify and hold harmless, to the fullest extent permitted by applicable law as it presently exists or may hereafter be amended, any Person (a "C***overed Person***") who was or is a party or is threatened to be made a party to or otherwise involved any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (a "***Proceeding***"), by reason of the fact that he or she, or a Person for whom he or she is the legal representative, is or was a Director or officer of the Corporation or, while a Director or officer of the Corporation, is or was serving at the request of the Corporation as a director, officer, employee, agent or trustee of another entity or enterprise, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including, without limitation, attorneys' fees and expenses, judgments, fines, excise taxes or penalties under the Employee Retirement Income Security Act of 1974, as amended, and amounts paid or to be paid in settlement) reasonably incurred by such Covered Person. Notwithstanding the preceding sentence, except as otherwise provided in paragraph four (4) of <u>Article VII</u> with respect to Proceedings to enforce rights to indemnification or advancement of expenses or with respect to any compulsory counterclaim brought by such indemnitee, the Corporation shall be required to indemnify a Covered Person in connection with a Proceeding (or part thereof) commenced by such

------

Covered Person only if the commencement of such Proceeding (or part thereof) by the Covered Person was authorized by the Board of Directors.

Any reference to an officer of the Corporation in this <u>Article VII</u> shall be deemed to refer exclusively to the Chairperson, Chief Executive Officer, President, Vice Presidents, Secretary, Assistant Secretaries, Treasurer, Chief Financial Officer and any other officers of the Corporation appointed pursuant to Article IV of the Corporation's Bylaws, and any reference to an officer of any other entity or other enterprise shall be deemed to refer exclusively to an officer appointed by the board of directors or equivalent governing body of such other entity pursuant to the certificate of incorporation and by-laws or equivalent organizational documents of such other entity or enterprise.

To the extent not prohibited by applicable law, the Corporation shall pay the expenses (including attorneys' fees) incurred by a Covered Person in appearing at, participating in or defending any Proceeding in advance of its final disposition or in connection with a Proceeding brought to establish or enforce a right to indemnification or advancement of expenses under this Article VII; provided, however, that to the extent required by applicable law or in the case of advance made in a Proceeding brought to establish or enforce a right to indemnification or advancement, such payment of expenses in advance of the final disposition of the Proceeding shall be made solely upon receipt of an undertaking by the Covered Person to repay all amounts advanced if it should be ultimately determined that the Covered Person is not entitled to be indemnified or entitled to advancement of expenses under this <u>Article VII</u> or otherwise.

If a claim for indemnification or advancement of expenses under this <u>Article VII</u> is not paid in full within twenty (20) days after a written claim therefor by the Covered Person has been received by the Corporation, the Covered Person may file suit to recover the unpaid amount of such claim or to obtain an advancement of expenses, as applicable. To the fullest extent permitted by law, if successful in whole or in part in any such suit, or in a suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the Covered Person shall be entitled to be paid the expense of prosecuting or defending such claim. In any such action the Corporation shall have the burden of proving that the Covered Person is not entitled to the requested indemnification or advancement of expenses under applicable law. In (i) any suit brought by a Covered Person to enforce a right to indemnification hereunder (but not in a suit brought by a Covered Person to enforce a right to an advancement of expenses) it shall be a defense that, and (ii) any suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the Corporation shall be entitled to recover such expenses upon a final adjudication that, such Person has not met any applicable standard for indemnification set forth in the General Corporation Law. Neither the failure of the Corporation (including by its Directors who are not parties to such action, a committee of such Directors, independent legal counsel or its stockholders) to have made a determination prior to the commencement of such suit that indemnification of the Covered Person is proper in the circumstances because the Covered Person has met the applicable standard of conduct set forth in the General Corporation Law, nor an actual determination by the Corporation (including by its Directors who are not parties to such action, a committee of such Directors, independent legal counsel or its stockholders) that the Covered Person has not met such applicable standard of conduct, shall create a presumption that such Person has not met the applicable standard of conduct or, in the case of such a suit brought by the Covered Person, be a defense to such suit.

------

The rights conferred on any Covered Person by this <u>Article VII</u> shall not be exclusive of any other rights that such Covered Person may have or hereafter acquire under any statute, provision of this Certificate of Incorporation, the Bylaws, agreement, vote of stockholders or disinterested Directors or otherwise.

Subject to this <u>Article VII</u>, the Corporation's obligation, if any, to indemnify or to advance expenses to any Covered Person who was or is serving at its request as a director, officer, employee or agent of another entity or enterprise shall be reduced by any amount such Covered Person may collect as indemnification or advancement of expenses from such other entity or enterprise.

Any amendment or repeal of the foregoing provisions of this <u>Article VII</u> shall not adversely affect any right or protection hereunder of any Covered Person in respect of any act or omission occurring prior to the time of such amendment or repeal.

This <u>Article VII</u> shall not limit the right of the Corporation, to the extent and in the manner permitted by applicable law, to indemnify and to advance expenses to Persons other than Covered Persons when and as authorized by appropriate corporate action.

Covered Persons who after the date of the adoption of this provision become or remain a Covered Person described in <u>Article VII</u> will be conclusively presumed to have relied on the rights to indemnity, advance of expenses and other rights contained in this <u>Article VII</u> in entering into or continuing the service. The rights to indemnification and to the advance of expenses conferred in this <u>Article VII</u> will apply to claims made against any Covered Person described in this <u>Article VII</u> arising out of acts or omissions in respect of the Corporation or one of its subsidiaries that occurred or occur both prior and subsequent to the adoption hereof. The rights conferred upon Covered Persons in this <u>Article VII</u> shall be contract rights and such rights shall continue as to a Covered Person who has ceased to be a Director or officer and shall inure to the benefit of the Covered Person's heirs, executors and administrators. Any amendment, alteration or repeal of this <u>Article VII</u> that adversely affects any right of a Covered Person or its successors shall be prospective only and shall not limit, eliminate or impair any such right with respect to any proceeding involving any occurrence or alleged occurrence of any action or omission to act that took place prior to such amendment or repeal.

The Corporation may purchase and maintain insurance, at its expense, to protect itself and any Director, officer, employee or agent of the Corporation or another corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the Corporation would have the power to indemnify such person against such expense, liability or loss under the General Corporation Law.

<u>ARTICLE VIII</u> 

All of the powers of the Corporation, insofar as the same may be lawfully vested by this Certificate in the Board of Directors, are hereby conferred upon the Board of Directors.

<u>ARTICLE IX</u> 

In furtherance and not in limitation of the powers conferred by law, the Board of Directors is expressly authorized to make, alter, amend or repeal the Bylaws subject to the power of the

------

stockholders of the Corporation entitled to vote with respect thereto to make, alter, amend or repeal the Bylaws; provided, that with respect to the powers of stockholders entitled to vote with respect thereto to make, alter, amend or repeal the Bylaws, in addition to any other vote otherwise required by law, the affirmative vote of the holders of sixty-six and two-thirds percent (66 2/3%) of the total voting power of the outstanding shares of capital stock of the Corporation entitled to vote generally in the election of Directors, voting together as a single class, shall be required to make, alter, amend or repeal the Bylaws.

The Corporation reserves the right to amend or repeal any provision contained in this Certificate in the manner prescribed by the laws of the State of Delaware and all rights conferred upon stockholders are granted subject to this reservation; provided, that, notwithstanding any other provision of this Certificate or any provision of law which might otherwise permit a lesser vote or no vote, but subject to the rights of the holders of any series of Preferred Stock then outstanding and in addition to any vote of the holders of any class or series of the stock of this Corporation required by law or by this Certificate, the affirmative vote of the holders of at least sixty-six and two-thirds percent (66-2/3%) of the voting power of all of the then outstanding shares of the capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class, shall be required to amend or repeal, or adopt any provision of this Certificate inconsistent with, <u>Article VI</u>, <u>Article VII</u>, <u>Article VIII</u>, this <u>Article IX</u> or <u>Article XI</u>.

<u>ARTICLE X</u> 

If any provision of this Certificate becomes or is declared on any ground by a court of competent jurisdiction to be illegal, unenforceable or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Certificate, and the court will replace such illegal, void or unenforceable provision of this Certificate with a valid and enforceable provision that most accurately reflects the Corporation's intent, in order to achieve, to the maximum extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The balance of this Certificate shall be enforceable in accordance with its terms.

<u>ARTICLE XI</u> 

------

Act of 1934, as amended (the "***Exchange Act***"), or the rules and regulations under the Exchange Act, or any other claim for which the U.S. federal courts have exclusive jurisdiction. To the fullest extent permitted by applicable law, any person or entity purchasing or otherwise acquiring or holding any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this <u>Article XI</u>.

<u>ARTICLE XII</u> 

The Corporation waives, to the maximum extent permitted by law, the application of the doctrine of corporate opportunity, or any other analogous doctrine, with respect to the Corporation, any Directors, officers or stockholders or any of their respective Affiliates, except, in the case of Directors and officers, as related to insurance underwriting activities, unless such Director or officer did not become aware of such opportunity related to insurance underwriting activities in his or her capacity as a Director or officer of the Corporation.

\* \* \*

## Exhibit 3.3

**Exhibit 3.3** 

**BYLAWS** 

**OF** 

**SAFEPOINT HOLDINGS, INC.** 

**A Delaware Corporation (hereinafter referred to as the "Corporation")** 

(Adopted as of May 8, 2026)

ARTICLE I.

<u>OFFICES</u> 

SECTION 1.1 <u>Registered Office</u>. The registered office of the Corporation required by the General Corporation Law of the State of Delaware, as it may be amended from time to time (the "<u>DGCL</u>") to be maintained in the State of Delaware shall be the office of the initial registered agent named in the Certificate of Incorporation (as amended from time to time, the "<u>Certificate of Incorporation</u>") or such other office (which need not be a place of business of the Corporation) as the Board (as defined below) may designate from time to time in the manner provided by law.

SECTION 1.2 <u>Registered Agent</u>. The registered agent of the Corporation in the State of Delaware shall be the initial registered agent named in the Certificate of Incorporation or such other natural person, corporation, limited liability company, partnership, trust, joint stock company, business trust, unincorporated association, joint venture, governmental authority or other legal entity of any nature whatsoever (each a "<u>Person</u>") as the Board may designate from time to time in the manner provided by law.

SECTION 1.3 <u>Principal Office; Other Offices</u>. The principal office of the Corporation shall be at such place as the Board may designate from time to time, which need not be in the State of Delaware, and the Corporation shall maintain records at such place. The Corporation may have such other offices as the Board may designate from time to time.

ARTICLE II.

<u>SHAREHOLDERS</u> 

SECTION 2.1 <u>Annual Meeting</u>. The annual meeting of the shareholders shall be held each year within one hundred twenty (120) days after the close of the immediately preceding fiscal year of the Corporation for the purpose of electing directors and conducting such other proper business as may come before the meeting. The date, time and place, if any, and/or the means of remote communication, of the annual meeting shall be determined by the Board.

SECTION 2.2 <u>Special Meetings</u>. Special meetings of the shareholders may be called for any purpose and may be held at such time and place, within or without the State of Delaware, and/or by means of remote communication, as shall be stated in a written notice of meeting or in a duly executed waiver of notice thereof. Such meetings may be called at any time by the Chairman, the Chief Executive Officer, by order of the Board or the holders of shares entitled to cast not less than fifty percent (50%) of the votes at the meeting. The date, time and place, if any, and/or remote communication, of any special meeting of shareholders shall be determined by the Board.

------

SECTION 2.3 <u>Notice</u>. Whenever shareholders are required or permitted to take any action at a meeting, written or printed notice stating the place, if any, date and hour of the meeting, the means of remote communications, if any, by which shareholders and proxy holders may be deemed to be present in person and vote at such meeting, and, in the case of special meetings, the purpose or purposes, of such meeting, shall be given to each shareholder entitled to vote at such meeting not less than ten (10) nor more than sixty (60) days before the date of the meeting. All such notices shall be delivered, either personally, by mail, or by a form of electronic transmission consented to by the shareholder to whom the notice is given, by or at the direction of the Board, the Chief Executive Officer or the Secretary, and if mailed, such notice shall be deemed to be delivered when deposited in the United States mail, postage prepaid, addressed to the shareholder at his, her or its address as the same appears on the records of the Corporation. If given by electronic transmission, such notice shall be deemed to be delivered (a) if by facsimile telecommunication, when directed to a number at which the shareholder has consented to receive notice; (b) if by electronic mail, when directed to an electronic mail address at which the shareholder has consented to receive notice; (c) if by a posting on an electronic network together with separate notice to the shareholder of such specific posting, upon the later of (1) such posting and (2) the giving of such separate notice; and (3) if by any other form of electronic transmission, when directed to the shareholder. Any such consent shall be revocable by the shareholder by written notice to the Corporation. Any such consent shall be deemed revoked if (x) the Corporation is unable to deliver by electronic transmission two consecutive notices given by the Corporation in accordance with such consent and (y) such inability becomes known to the Secretary or an assistant secretary of the Corporation or to the transfer agent. Attendance of a Person at a meeting shall constitute a waiver of notice of such meeting, except when the Person attends for the express purpose of objecting at the beginning of the meeting to the transaction of any business because the meeting is not lawfully called or convened.

SECTION 2.4 <u>Fixing Record Dates</u>. The Board may fix in advance a date as the record date for any determination of shareholders, such date in any case to be not less than ten (10) nor more than sixty (60) days prior to the date on which the particular action requiring such determination of shareholders is to be taken. If the stock transfer books are not closed and no record date is fixed for the determination of shareholders entitled to notice of, or to vote at, a meeting of shareholders, the date on which notice of the meeting is mailed shall be the record date for such determination of shareholders.

SECTION 2.5 <u>Shareholder Quorum and Voting; Adjournment</u>. A majority of the shares entitled to vote, represented in person or by proxy, shall constitute a quorum at a meeting of shareholders. If a quorum is established at the outset of any meeting, the affirmative vote of the majority of the shares represented and entitled to vote on the subject matter at the meeting shall be the act of the shareholders, unless otherwise provided in the Certificate of Incorporation or by statute. After a quorum has been established at any meeting of shareholders, the subsequent withdrawal of shareholders, so as to reduce the number of shareholders entitled to vote at the meeting below the number required for a quorum, shall not affect the validity of any action taken at the meeting or any adjournment of the meeting. If less than a quorum shall attend at the time for which a meeting shall have been called, the meeting may adjourn from time to time by a majority vote of the shareholders present or represented by proxy and entitled to vote without notice other than by announcement at the meeting until a quorum shall attend. Any meeting at which a quorum is present may also be adjourned in like manner and for such time or upon such call as may be

------

determined by a majority vote of the shareholders present or represented by proxy and entitled to vote. At any adjourned meeting at which a quorum shall be present, any business may be transacted and any corporate action may be taken which might have been transacted at the meeting as originally called.

SECTION 2.6 <u>Voting of Shares</u>. Each outstanding share of common capital stock of the Corporation (excluding non-voting common shares) shall be entitled to one (1) vote on each matter submitted to a vote at a meeting of the shareholders.

SECTION 2.7 <u>Proxies</u>. Each shareholder entitled to vote at a meeting of shareholders or to express consent or dissent to corporate action in writing without a meeting may authorize another Person or Persons to act for such shareholder by proxy, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period. At each meeting of the shareholder, and before any voting commences, all proxies filed at or before the meeting shall be submitted to and examined by the Secretary or a Person designated by the Secretary, and no shares may be represented or voted under a proxy that has been found to be invalid or irregular.

SECTION 2.8 <u>Action by Written Consent</u>. Any action required to be taken or which may be taken at any annual or special meeting of shareholders, may be taken without a meeting, without prior notice and without a vote if consent in writing, setting forth the action so taken, shall be dated and signed by the holders of outstanding shares of stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote on such action were present and voted. If any class of shares is entitled to vote on such action as a class, such written consent shall be required of the holders of a majority of the shares of each such class of shares entitled to vote as a class and of the total shares entitled to vote on such action.

SECTION 2.9 <u>Conduct of Meetings</u>. The Chairman of the Board of Directors, or if there be none, or in the Chairman's absence, the President shall preside at all regular or special meetings of shareholders. To the maximum extent permitted by law, such presiding person shall have the power to set procedural rules, including but not limited to rules respecting the time allotted to shareholders to speak, governing all aspects of the conduct of such meetings.

ARTICLE III.

<u>BOARD OF DIRECTORS</u> 

SECTION 3.1 <u>The Board of Directors; Delegation of Authority and Duties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Shareholders and Board Directors</u>. Subject to the provisions set forth herein, the shareholders shall possess all rights and powers as provided by the DGCL and otherwise by law. Except as otherwise expressly provided for herein, the shareholders hereby consent to the exercise by the Board of all such powers and rights conferred on them by the DGCL with respect to the management and control of the Corporation. No shareholder, in its capacity as a shareholder, shall have any power to act for, sign for or do any act that would bind the Corporation. Each shareholder acknowledges and agrees that, except as otherwise agreed in writing, no shareholder shall, in its capacity as a shareholder, be bound to devote any of such shareholder's business time to the affairs

------

of the Corporation, and that each shareholder and such shareholder's Affiliates do and will continue to engage for such shareholder's own account and for the account of others in other business ventures. For purposes of these bylaws, the term "Affiliates" means with respect to any specified Person at any time, each Person directly or indirectly controlling, controlled by or under direct or indirect common control with such specified Person at such time, and the officers, directors and managers of such specified Person. For purposes of this definition, "control", when used in reference to any specified Person, means the power to direct the management and policies of such specified Person, directly or indirectly, whether through the ownership of voting securities or other ownership interest, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Delegation by Board</u>. Except as provided in <u>Sections 3.1(c)</u> and Article IV below, the Board shall not have the power and authority to delegate to one or more other Persons the Board's rights and powers to manage and control the business and affairs of the Corporation; <u>provided</u>, that the Board may authorize any Person (including any shareholder, Officer or Director (as defined below)) to enter into and perform under any document authorized by the Board on behalf of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Committees</u>. The Board may, from time to time, designate one or more committees, each of which shall be comprised of at least two Directors. Any such committee, to the extent provided in the enabling resolution and until dissolved by the Board, shall have and may exercise any or all of the authority of the Board. At every meeting of any such committee, the presence of a majority of all the members thereof shall constitute a quorum, and the affirmative vote of a majority of the members of such committee present shall be necessary for the adoption of any resolution. The Board may dissolve any committee at any time, unless otherwise provided in the Certificate of Incorporation or these bylaws.

SECTION 3.2 <u>Establishment of Board of Directors</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Directors</u>. In accordance with the terms set forth herein, there shall be established a Board of Directors (the "<u>Board</u>") whose authorized number of members (each a "<u>Director</u>") shall be fixed at such number as is from time to time determined by the Board, all of whom shall be individuals. Initially, the number of Directors on the Board shall be eight (8). All of the Directors shall be appointed by the vote or written agreement or consent of the shareholders holding a majority of the outstanding vested common shares (excluding any non-voting common shares) and any Director may be removed from the Board at any time by the written agreement or consent of the shareholders holding a majority of the outstanding vested common shares (excluding any non-voting common shares). Each Director shall remain in office until his or her death, resignation or removal, and in the event of death, resignation or removal of a Director, the shareholders shall fill the vacancy created as provided above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Individual Authority</u>. No Director has the authority or power to act for or on behalf of the Corporation, to do any act that would be binding on the Corporation or to make any expenditures or incur any obligations on behalf of the Corporation or authorize any of the foregoing, other than acts that are expressly authorized by the Board.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Compensation</u>. By resolution of the Board, any Director may be paid his or her expenses, if any, for attendance at any meeting of the Board, and may be paid such compensation for the performance of his or her duties as a Director as the Board shall determine, either in the form of an annual salary, a fee for attendance at each meeting or such other form of compensation as the Board shall deem appropriate. No such payment shall preclude any Director from serving the Corporation in any other capacity and receiving compensation for such service.

SECTION 3.3 <u>Board Meetings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Quorum</u>. A majority of the total number of Directors shall constitute a quorum for the transaction of business of the Board and, except as otherwise provided herein, the act of a majority of the Directors present at a meeting of the Board at which a quorum is present shall be the act of the Board. A Director who is present at a meeting of the Board at which action on any matter is taken shall be presumed to have assented to the action unless his or her dissent shall be entered in the minutes of the meeting or unless he shall file his or her written dissent to such action with the Person acting as secretary of the meeting before the adjournment thereof or shall deliver such dissent to the Corporation immediately after the adjournment of the meeting. Such right to dissent shall not apply to a Director who voted in favor of such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Place</u>, <u>Waiver of Notice</u>. Meetings of the Board may be held at such place or places as shall be determined from time to time by resolution of the Board. At all meetings of the Board, business shall be transacted in such order as shall from time to time be determined by resolution of the Board. Attendance of a Director at a meeting shall constitute a waiver of notice of such meeting, except where a Director attends a meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Regular Meetings</u>. Regular meetings of the Board shall be held at such times and places as shall be designated from time to time by resolution of the Board, but no less than quarterly. Notice of such meetings shall not be required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Meetings</u>. Special meetings of the Board may be called with prior written notice of 48 hours to each Director by the Chairman (as defined below) or any two (2) Directors. Such notice should state the purpose or purposes of, and the business to be transacted at, such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Notice</u>. Written notice of the time of any special meeting of the Board or other committee shall be given to each Director either by personal delivery, facsimile or any other form of electronic communication at least two (2) days prior to the meeting, or by written notice sent by first class mail to the Director and mailed at least five (5) days before the meeting. Each such notice shall include a request that the Director acknowledge receipt thereof. In the event that a Director fails to acknowledge receipt, a further meeting notice (the "<u>Final Notice</u>") shall be sent by certified mail, return receipt requested, and such meeting shall be held no earlier than the third business day following the date of sending such Final Notice.

SECTION 3.4 <u>Chairman</u>. The Board shall designate a Director to serve as its Chairman (the "<u>Chairman</u>"). The Chairman shall preside at all meetings of the Board. If the Chairman is absent at any meeting of the Board, a majority of the Directors present shall designate another Director to serve as interim chairman for that meeting. Except as authorized by the Board, the

------

Chairman shall have no authority or power to act for or on behalf of the Corporation, to do any act that would be binding on the Corporation or to make any expenditure or incur any obligations on behalf of the Corporation or authorize any of the foregoing. The Chairman shall initially be Amarjit Dhaliwal.

SECTION 3.5 <u>Approval or Ratification of Acts or Contracts</u>. Any act or contract not in contravention of these bylaws that shall be approved or be ratified by the Board on behalf of the Corporation shall be as valid and as binding upon the Corporation as if it shall have been approved or ratified by every shareholder of the Corporation.

SECTION 3.6 <u>Action by Written Consent or Telephone Conference</u>. Any action permitted or required by the DGCL, the Certificate of Incorporation, or these bylaws to be taken at a meeting of the Board or any committee designated by the Board in accordance with <u>Section</u> <u>3.1(c)</u> may be taken without a meeting if a written consent, setting forth the action to be taken, is signed by a majority of the Directors or members of such committee, as the case may be; provided that advance written notice of the taking of an action without a meeting by less than unanimous written consent shall be given to those Directors who have not consented to such action in writing. Such consent shall have the same force and effect as a vote at a meeting and may be stated as such in any document or instrument filed with the Secretary of State of the State of Delaware, and the execution of such consent shall constitute attendance or presence in person at a meeting of the Board or any such other committee designated by the Board in accordance with <u>Section</u> <u>3.1(c)</u>, as the case may be. Subject to the requirements set forth herein for notice of meetings, the Directors, or representatives of any other committee designated by the Board in accordance with <u>Section</u> <u>3.1(c)</u>, may participate in and hold a meeting of the Board or any such other committee, as the case may be, by means of a conference by telephone or similar communications equipment by means of which all Persons participating in the meeting can hear, and be heard, by each other Person participating in the meeting, and participation in such meeting shall constitute attendance and presence in person at such meeting, except where a Person participates in the meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened.

ARTICLE IV.

<u>OFFICERS</u> 

SECTION 4.1 <u>Designation and Appointment</u>. The Board may, from time to time, employ and retain Persons as may be necessary or appropriate for the conduct of the Corporation's business (subject to the supervision and control of the Board), including employees, agents and other Persons (any of whom may be a Director) who may be designated as Officers of the Corporation, with titles including "Chief Executive Officer," "President," "Vice President," "Treasurer," "Secretary," "General Manager," "Manager" and "Chief Financial Officer," as and to the extent authorized by the Board. Any number of offices may be held by the same Person. In its discretion, the Board may choose not to fill any office for any period as it may deem advisable. Officers need not be residents of the State of Delaware or shareholders. Any Officers so designated shall have such authority and perform such duties as the Board may, from time to time, delegate to them. The Board may assign titles to particular Officers. Each Officer shall hold office until his or her successor shall be duly designated and shall qualify or until his or her death or until he shall resign

------

or shall have been removed in the manner hereinafter provided. The salaries or other compensation, if any, of the Officers of the Corporation shall be fixed from time to time by the Board.

SECTION 4.2 <u>Resignation/Removal</u>. Any Officer may resign as such at any time. Such resignation shall be made in writing and shall take effect at the time specified therein, or if no time is specified, at the time of its receipt by the Board. The acceptance of a resignation shall not be necessary to make it effective, unless expressly so provided in the resignation. Any Officer may be removed as such, either with or without cause at any time by the Board. Designation of an Officer shall not of itself create any contractual or employment rights.

SECTION 4.3 <u>Duties of Officers Generally</u>. The Officers, in the performance of their duties as such, shall owe to the Corporation duties of loyalty and due care of the type owed by the officers of a corporation to such corporation and its shareholders under the laws of the State of Delaware.

SECTION 4.4 <u>Chief Executive Officer</u>. Subject to the powers of the Board, the Chief Executive Officer of the Corporation shall have general and active authority for the management of the business of the Corporation; and shall exercise efforts consistent with his or her duties pursuant to <u>Section</u> <u>4.3</u> in pursuit of carrying into effect the orders and resolutions of the Board. The Chief Executive Officer shall have the general duties, powers and responsibilities of a chief executive officer of a corporation and have such other powers and perform such other duties as may be prescribed by the Board.

SECTION 4.5 <u>Chief Financial Officer</u>. If the Board chooses to appoint a Chief Financial Officer, the Chief Financial Officer shall keep and maintain, or cause to be kept and maintained, proper books and records of accounts of the properties and business transactions of the Corporation, including accounts of its assets, liabilities, receipts, disbursements, gains, losses and capital. The Chief Financial Officer shall have the custody of the funds, and any Securities of the Corporation, and shall keep full and accurate accounts of receipts and disbursements in books belonging to the Corporation, and shall deposit all monies and other valuable effects in the name and to the credit of the Corporation in such depositories as may be designated by the Board. The Chief Financial Officer shall have such other powers and perform such other duties as may be prescribed by the Chief Executive Officer or the Board. As used in these bylaws, the term "Securities" shall mean and include any debt or equity securities of any issuer, including common and preferred stock and interests in limited liability companies (including warrants, rights, put and call options and other options relating thereto or any combination thereof), notes, bonds, debentures, trust receipts and other obligations, instruments or evidences of indebtedness, other property or interests commonly regarded as securities, interests in real property, whether improved or unimproved, interests in oil and gas properties and mineral properties, short term investments commonly regarded as money market investments, bank deposits and interests in personal property of all kinds, whether tangible or intangible (collectively, the "<u>Securities</u>").

SECTION 4.6 <u>Vice President(s)</u>. The Vice President(s) shall perform such duties and have such other powers as the Chief Executive Officer or the Board may from time to time prescribe.

------

SECTION 4.7 <u>Secretary</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Secretary shall attend all meetings of the Board, and shall record all the proceedings of the meetings in a book to be kept for that purpose, and shall perform like duties for committees of the Board designated in accordance with <u>Section</u> <u>3.1(c)</u> when required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Secretary shall keep a record of all actions of the shareholders and the Board and a record of such other matters as may be required under the DGCL. The Secretary shall perform such other duties and have such other authority as may be prescribed elsewhere in these bylaws or from time to time by the Chief Executive Officer or the Board. The Secretary shall have the general duties, powers and responsibilities of a secretary of a corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Board chooses to appoint an assistant secretary or assistant secretaries, the assistant secretaries, in the order of their seniority, in the absence, disability or inability to act of the Secretary, shall perform the duties and exercise the powers of the Secretary, and shall perform such other duties as the Chief Executive Officer or the Board may from time to time prescribe.

ARTICLE V.

<u>MANAGEMENT MATTERS</u> 

SECTION 5.1 <u>Transfer of Property</u>. All property owned by the Corporation, including Securities, shall be registered in the Corporation's name, in the name of a nominee or in "street name" as the Board may from time to time determine. Any corporation, brokerage firm or transfer agent called upon to transfer any Securities to or from the name of the Corporation shall be entitled to rely on instructions or assignments signed or purported to be signed by any Officer without inquiry as to the authority of the Person signing or purporting to sign such instructions or assignments or as to the validity of any transfer to or from the name of the Corporation. At the time of any such transfer, any such corporation, brokerage firm or transfer agent shall be entitled to assume that (i) the Corporation is then in existence and (ii) that these bylaws are in full force and effect and have not been amended, in each case unless such corporation, brokerage firm or transfer agent shall have received written notice to the contrary.

SECTION 5.2 <u>Existence and Good Standing</u>. The Board may take all action which may be necessary or appropriate (i) for the continuation of the Corporation's valid existence as a corporation under the laws of the State of Delaware (and of each other jurisdiction in which such existence is necessary to enable the Corporation to conduct the business in which it is engaged) and (ii) for the maintenance, preservation and operation of the business of the Corporation in accordance with the provisions set forth herein and applicable laws and regulations. The Board may file or cause to be filed for recordation in the office of the appropriate authorities of the State of Delaware, and in the proper office or offices in each other jurisdiction in which the Corporation is formed or qualified, such certificates (including certificates of incorporation of corporations and fictitious name certificates) and other documents as are required by the applicable statutes, rules or regulations of any such jurisdiction or as are required to reflect the identity of the shareholders.

SECTION 5.3 <u>Securities Held By the Corporation</u>. The Corporation shall vote all Securities, including Securities held by the Corporation, as directed by the Board.

------

SECTION 5.4 <u>Indemnification and Exculpation by the Corporation</u>. Subject to the limitations and conditions provided in this <u>Section</u> <u>5.4</u>, each Person who was or is made a party or is threatened to be made a party to or is involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or arbitrative (hereinafter a "<u>Proceeding</u>"), or any appeal in such a Proceeding or any inquiry or investigation that could lead to such a Proceeding, by reason of the fact that he, she, or it, or a Person of which he, she or it is the legal representative, is or was an Officer or Director shall be indemnified by the Corporation to the fullest extent permitted by applicable law, as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the Corporation to provide broader indemnification rights than said law permitted the Corporation to provide prior to such amendment) against all judgments, penalties (including excise and similar taxes and punitive damages), fines, settlements and reasonable expenses (including reasonable attorneys' fees and expenses) actually incurred by such Person in connection with such Proceeding, appeal, inquiry or investigation if such Person acted in good faith and in a manner such Person reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to a criminal proceeding, having had no reasonable cause to believe such Person's conduct was unlawful ("<u>Good Faith</u>"), and indemnification under this <u>Section</u> <u>5.4</u> shall continue as to a Person who has ceased to serve in the capacity which initially entitled such Person to indemnity hereunder. A Director shall not be liable to the Corporation or its shareholders for monetary damages or otherwise if such Person acted in Good Faith, except to the extent that exculpation from liability is not permitted under applicable law. The rights granted pursuant to this <u>Section</u> <u>5.4</u> shall be deemed contract rights, and no amendment, modification or repeal of this <u>Section</u> <u>5.4</u> shall have the effect of limiting or denying any such rights with respect to actions taken or Proceedings, appeals, inquiries or investigations arising prior to any amendment, modification or repeal. It is expressly acknowledged that the indemnification provided in this <u>Section</u> <u>5.4</u> could involve indemnification for negligence or under theories of strict liability.

SECTION 5.5 <u>Insurance</u>. Upon resolution passed by the Board, the Corporation may purchase and maintain insurance on behalf of any person who is or was an agent against any liability asserted against him and incurred by him in any such capacity, or arising out of status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article. The Corporation may purchase such insurance from, or such insurance may be reinsured in whole or in part by, an insurer owned by or otherwise affiliated with the Corporation, whether or not such insurer does business with other insureds.

SECTION 5.6 <u>Duties</u>. The Directors, in the performance of their duties, shall owe to the Corporation and the shareholders only those duties, if any, under these bylaws, and to the extent that these bylaws restrict the duties (including fiduciary duties) otherwise existing at law or in equity, the parties hereto agree to such restrictions. Without limiting the foregoing, to the maximum extent permitted from time to time under the law of the State of Delaware, this Corporation renounces any interest or expectancy of the Corporation in, or in being offered an opportunity to participate in, business opportunities that are from time to time presented to its shareholders, Directors and Officers, other than those Directors and Officers who are full-time employees of the Corporation or a Subsidiary thereof.

SECTION 5.7 <u>Restrictions on Proxies</u>. <u>Voting Trusts and Voting Agreements</u>. No shareholder shall grant any proxy or enter into or agree to be bound by any voting trust with respect

------

to any voting shares held by him, her or it, which conflicts or is inconsistent in any manner with these bylaws, the shareholders' agreement by and among the Corporation and the shareholders of the Corporation from time to time dated July 1, 2015 (the "<u>Shareholders' Agreement</u>") or any other written agreement with the Corporation, nor shall any shareholder enter into any other agreement or arrangement of any kind with respect to the voting of any such shares now held or hereafter acquired by him, her or it, which conflicts or is inconsistent in any manner with the provisions of these bylaws, the Shareholders' Agreement or any other written agreement with the Corporation.

SECTION 5.8 <u>Subsidiary Boards</u>. With respect to each Subsidiary of the Corporation that is not managed by its shareholders, the members of the board of directors (or similar governing body) of each such Subsidiary shall be the same as the Board, and the notice, election and removal provisions of these bylaws for Directors and shareholders of the Board shall apply to Shareholders of the governing body of the Subsidiary.

SECTION 5.9 <u>Related Party Transactions</u>. Neither the Corporation nor any Subsidiary shall enter into any transaction between the Corporation or any Subsidiary and any shareholder or Director or any of their respective Affiliates (including any direct or indirect transfer of material assets or operations of the Corporation or Subsidiary to a shareholder or Director or any of their respective Affiliates) or commit to any of the foregoing or approve the occurrence of any of the foregoing unless the transaction was disclosed and fair to the Corporation at the time it was authorized or approved by the Board (as determined in Good Faith by the Board), including a majority of any disinterested Directors to the extent the Board then includes any disinterested Directors unless such transaction relates to an equity issuance in which the shareholders have the right to participate pursuant to the Shareholders' Agreement.

ARTICLE VI.

<u>WAIVERS OF NOTICE</u> 

SECTION 6.1 Any notice required by these bylaws, by the Certificate of Incorporation or by the DGCL may be waived in writing by any Person entitled to notice. The waiver or waivers may be executed either before or after the event with respect to which notice is waived.

ARTICLE VII.

<u>AMENDMENTS TO AND EFFECT OF BYLAWS</u> 

SECTION 7.1 <u>Force and Effect of Bylaws</u>. These bylaws are subject to the provisions of the DGCL and the Certificate of Incorporation. If any provision in these bylaws is inconsistent with a provision in the DGCL or the Certificate of Incorporation, the DGCL or the Certificate of Incorporation shall govern.

SECTION 7.2 <u>Amendments to Bylaws</u>. These bylaws may be altered or repealed at any annual meeting of the shareholders or at any special meeting thereof if notice of the proposed alteration or repeal to be made be contained in the notice of such meeting, by the affirmative vote of a majority of the stock issued and outstanding and entitled to vote thereat, or by the affirmative vote of a majority of the Board at any regular meeting of the Board or at any special meeting of the Board if notice of the proposed alteration or repeal to be made is contained in the notice of such special meeting.

------

ARTICLE VIII.

<u>DIVIDENDS</u> 

SECTION 8.1 The Board, from time to time, may declare, and the Corporation may pay, dividends. Notwithstanding the foregoing sentence, no dividends shall be declared by the Board or paid when the Corporation is insolvent, or when the payment of such dividends would render the Corporation insolvent, or when the declaration or payment thereof would be contrary to any restrictions provided by DGCL §170, or any successor statutes, or DGCL §154.

ARTICLE IX.

<u>CORPORATE SEAL</u> 

SECTION 9.1 The corporate seal shall have inscribed thereon the name of the Corporation and the words: "Corporate Seal," the state of incorporation and the year of the incorporation. The seal may be used by causing it or a facsimile thereof to be impressed or affixed or in any manner reproduced.

ARTICLE X.

<u>SHARES OF STOCK</u> 

SECTION 10.1 <u>Shares of Stock</u>. All shares of capital stock of the Corporation shall be uncertificated and shall be evidenced solely by book-entry notation on the stock ledger of the Corporation or, if applicable, by the records of the Corporation's transfer agent. No certificates representing shares of capital stock shall be issued unless the Board, in its sole discretion, expressly authorizes the issuance of certificates for some or all classes or series of shares by resolution. Any such certificates, if authorized, shall be in such form as the Board may prescribe in conformity with applicable law and shall be signed by the President and the Secretary or such other Officers as the Board may designate. Effective as of the date of adoption of these Bylaws (the "Effective Date"), the shares of capital stock of the Corporation shall be uncertificated and evidenced solely by book-entry form on the stock ledger of the Corporation, or, if applicable, by the records of the Corporation's transfer agent; provided that, in accordance with Section 158 of the DGCL, any resolution of the Board providing that any shares shall be uncertificated shall not apply to any shares represented by a certificate until such certificate is surrendered to the Corporation. Upon such surrender, the certificate shall be cancelled and the shares represented thereby shall thereafter be recorded solely in book-entry form. Each holder of record of uncertificated shares shall be entitled, upon request, to receive from the Corporation a written statement confirming the number and class or series of shares registered in such holder's name on the books of the Corporation.

SECTION 10.2 <u>Cancellation of Certificates</u>. All certificates for shares of capital stock of the Corporation outstanding immediately prior to the Effective Date shall remain outstanding until surrendered to the Corporation. Any certificate for shares of capital stock of the Corporation hereafter surrendered or presented to the Corporation shall be cancelled and shall not be reissued. Upon surrender and cancellation of any such certificate, no new certificates shall be issued in replacement thereof, and such shares shall be recorded solely in book-entry form.

SECTION 10.3 <u>Registered Shareholders</u>. Unless otherwise provided by the laws of the State of Delaware, the shareholder of record on the books of the Corporation shall, insofar as the

------

Corporation is concerned, be deemed to be the holder in fact of the share or shares appearing in his or her name, and the Corporation shall be entitled to deal with him or her as such, notwithstanding it may have notice of an equitable or other claim to, or interest in, said share or shares.

SECTION 10.4 <u>Transfer of Stock</u>. Shares of capital stock of the Corporation may be transferred upon the books of the Corporation by the holder thereof, in Person or by his or her duly authorized attorney.

SECTION 10.5 <u>Transfer Agent and Registrar</u>. The Board may appoint a transfer agent and a registrar of transfers. The Board shall also have the power to make all rules and regulations as they may deem expedient concerning the issue and transfer of shares of the capital stock of the Corporation.

SECTION 10.6 <u>Previously Issued Certificates</u>. All certificates for shares of capital stock of the Corporation shall be cancelled upon surrender to the Corporation, and the Corporation shall have no obligation to issue any replacement certificate for any previously outstanding certificate, whether or not such certificate has been lost, stolen, or destroyed. Any Person who claims that a certificate previously issued by the Corporation was lost, stolen, or destroyed prior to the Effective Date may request that the Corporation confirm such Person's share ownership in book-entry form, provided that such Person furnishes the Corporation with a notarized affidavit of the facts concerning the loss, theft, or destruction of such certificate and such indemnity as the Corporation may require.

SECTION 10.7 <u>Closing Transfer Books</u>. For purposes of determining shareholders eligible for meeting notice and eligible for voting in shareholder meetings, the stock transfer books will be closed not less than ten (10) nor more than sixty (60) days prior to each said meeting. The Board shall have the power to close the stock transfer books for such meetings, dividends or other shareholder business or to fix in advance a date as the record date for any such determination of shareholders.

## Exhibit 3.4

**Exhibit 3.4** 

**AMENDED AND RESTATED** 

**BYLAWS** 

**OF** 

**SAFEPOINT HOLDINGS, INC.** 

**a Delaware corporation** 

**Effective [•], 2026** 

------

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
| ARTICLE I CORPORATE OFFICES | ARTICLE I CORPORATE OFFICES | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 | Registered Office | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 | Other Offices | 1 |
| ARTICLE II STOCKHOLDERS | ARTICLE II STOCKHOLDERS | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 | Place of Meetings | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 | Annual Meeting | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 | Special Meetings | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 | Notice of Meetings | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 | Voting List | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 | Quorum | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 | Adjournments | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 | Voting and Proxies | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 | Action at Meeting | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 | Nomination of Directors and Proposal of Other Business | 4 |
| ARTICLE III BOARD OF DIRECTORS | ARTICLE III BOARD OF DIRECTORS | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 | General Powers | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 | Resignations | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 | Vacancies and Newly Created Directorships | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 | Regular Meetings | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 | Special Meetings | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 | Notice of Special Meetings | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 | Participation in Meetings by Telephone Conference Calls or Other Methods of Communication | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 | Quorum; Adjournment | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 | Action at Meeting | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 | Action by Written Consent | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 | Committees | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 | Compensation of Directors | 15 |
| ARTICLE IV OFFICERS | ARTICLE IV OFFICERS | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 | Enumeration | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 | Election | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 | Qualification | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 | Tenure | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 | Resignation and Removal | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 | Chairperson of the Board | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 | Chief Executive Officer | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 | President | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 | Vice Presidents | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 | Secretary and Assistant Secretaries | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 | Treasurer | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12 | Chief Financial Officer | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13 | Salaries | 17 |

---

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14 | Delegation of Authority | 17 |
| ARTICLE V CAPITAL STOCK | ARTICLE V CAPITAL STOCK | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 | Shares of Stock | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 | Signatures | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 | Lost Certificates | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 | Transfers | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 | Dividend Record Date | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 | Record Owners | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 | Transfer and Registry Agents | 19 |
| ARTICLE VI GENERAL PROVISIONS | ARTICLE VI GENERAL PROVISIONS | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 | Fiscal Year | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 | Waiver of Notice | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 | Actions with Respect to Securities of Other Corporations | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 | Evidence of Authority | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 | Certificate of Incorporation | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 | Severability | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 | Pronouns | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 | Notices | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 | Reliance Upon Books, Reports and Records | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 | Time Periods | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 | Electronic Signatures | 20 |
| ARTICLE VII AMENDMENTS | ARTICLE VII AMENDMENTS | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 | By the Board | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 | By the Stockholders | 21 |
| ARTICLE VIII INDEMNIFICATION OF DIRECTORS AND OFFICERS | ARTICLE VIII INDEMNIFICATION OF DIRECTORS AND OFFICERS | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 | Right to Indemnification | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 | Right of Claimant to Bring Suit | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 | Indemnification of Employees and Agents | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 | Non-Exclusivity of Rights | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 | Indemnification Contracts | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 | Insurance | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 | Effect of Amendment | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 | Reliance | 23 |

---

------

**ARTICLE I** 

**CORPORATE OFFICES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Registered Office</u>. The address of the registered office of Safepoint Holdings, Inc. (the "***Corporation***") in the State of Delaware, and the name of its registered agent at such address, shall be as set forth in the Corporation's certificate of incorporation, as the same may be amended and/or restated from time to time (the "***Certificate of Incorporation***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Other Offices</u>. The Corporation may have an office or offices other than its registered office at such place or places, either within or outside the State of Delaware, as the Board of Directors of the Corporation (the "***Board***") may from time to time determine or the business of the Corporation may require.

**ARTICLE II** 

**STOCKHOLDERS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Place of Meetings</u>. All meetings of stockholders shall be held at such place (if any) within or without the State of Delaware as may be determined from time to time by the Board or, if not determined by the Board, by the Chairperson of the Board, the President or the Chief Executive Officer; provided that the Board may, in its sole discretion, determine that any meeting of stockholders shall not be held at any place but shall be held solely by means of remote communication in accordance with <u>Section</u> <u>2.13</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Annual Meeting</u>. The annual meeting of stockholders for the election of directors and for the transaction of such other business as may properly be brought before the meeting shall be held on a date to be fixed by the Board at a time to be fixed by the Board and stated in the notice of the meeting. The Board may postpone, reschedule or cancel any annual meeting of stockholders previously scheduled by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Special Meetings</u>. Subject to the Certificate of Incorporation and the rights of the holders of any series of preferred stock then outstanding, special meetings of the stockholders of the Corporation may be called only by the Board acting pursuant to a resolution adopted by a majority of the total number of authorized directors (whether or not there exist any vacancies in previously authorized directorships at the time any such resolution is presented to the Board for adoption), the Chairperson of the Board, or the Chief Executive Officer and may not be called by any other person or persons. Any business transacted at any special meeting of stockholders shall be limited to the purpose or purposes stated in the notice of the meeting. The Board may postpone, reschedule or cancel any special meeting of stockholders previously scheduled by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Notice of Meetings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Written notice of each meeting of stockholders, whether annual or special, shall be given not less than 10 nor more than 60 days before the date on which the meeting is to be held, to each stockholder entitled to vote at such meeting as of the record date fixed by the Board for determining the stockholders entitled to notice of the meeting, except as otherwise provided herein or required by the General Corporation Law of the State of Delaware (the "***DGCL***") or the Certificate of Incorporation. The notice of any meeting shall state the place, if any, date and hour of the meeting, the means of remote communication, if any, by which

------

stockholders and proxy holders may be deemed to be present in person and vote at such meeting and the record date fixed by the Board for determining the stockholders entitled to vote at the meeting, if such date is different from the record date fixed by the Board for determining stockholders entitled to notice of the meeting. The notice of a special meeting shall state, in addition, the purpose or purposes for which the meeting is called.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notice to stockholders shall be delivered in writing or in any other manner permitted by the DGCL. If mailed, such notice shall be delivered by postage prepaid envelope directed to each stockholder at such stockholder's address as it appears in the records of the Corporation and shall be deemed given when deposited in the United States mail. Without limiting the manner by which notices of meetings otherwise may be given effectively to stockholders, any such notice may be given by electronic transmission in the manner provided in Section 232 of the DGCL. An affidavit of the secretary or an assistant secretary or of the transfer agent or other agent of the Corporation that the notice has been given by personal delivery, by mail, or by a form of electronic transmission shall, in the absence of fraud, be prima facie evidence of the facts stated therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notice of any meeting of stockholders need not be given to any stockholder if waived by such stockholder either in a writing signed by such stockholder or by electronic transmission, whether such waiver is given before or after such meeting is held. If such a waiver is given by electronic transmission, the electronic transmission must either set forth or be submitted with information from which it can be determined that the electronic transmission was authorized by the stockholder. Attendance of a stockholder at a meeting shall constitute a waiver of notice of such meeting, except when the stockholder attends for the express purpose of objecting at the beginning of the meeting to the transaction of any business because the meeting is not lawfully called or convened and does not further participate in the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Voting List</u>. The officer who has charge of the stock ledger of the Corporation shall prepare, at least 10 days before each meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting; the list shall reflect the stockholders entitled to vote as of the tenth day before the meeting date, arranged in alphabetical order for each class of stock and showing the mailing address of each stockholder and the number of shares registered in the name of each stockholder. The Corporation shall not be required to include electronic mail addresses or other electronic contact information on such list. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting, for a period of at least 10 days prior to the meeting: (a) on a reasonably accessible electronic network, provided that the information required to gain access to such list is provided with the notice of the meeting, (b) during ordinary business hours at the principal place of business of the Corporation or (c) in any other manner provided by law. If the meeting is to be held at a place, the list shall be produced and kept at the time and place of the meeting during the whole time of the meeting, and may be examined by any stockholder who is present. If the meeting is to be held solely by means of remote communication, such list shall also be open to the examination of any stockholder during the whole time of the meeting on a reasonably accessible electronic network, and the information required to access such list shall be provided with the notice of the meeting. The stock ledger shall be the only evidence as to the stockholders who are entitled to examine the list required by this <u>Section</u> <u>2.5</u> or to vote in person or by proxy at any meeting of stockholders.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Quorum</u>. Except as otherwise provided by law or these Bylaws, the holders of a majority of the shares of the capital stock of the Corporation entitled to vote at the meeting, present in person or represented by proxy, shall constitute a quorum for the transaction of business. Where a separate class vote by a class or classes or series is required, a majority of the shares of such class or classes or series present in person or represented by proxy shall constitute a quorum entitled to take action with respect to that vote on that matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Adjournments</u>. Any meeting of stockholders may be adjourned to any other time and to any other place at which a meeting of stockholders may be held under these Bylaws by the chairperson of the meeting or, in the absence of such person, by any officer entitled to preside at or to act as secretary of such meeting, or by the holders of a majority of the shares of stock present or represented at the meeting and entitled to vote, although less than a quorum. When a meeting is adjourned to another place, date or time, written notice need not be given of the adjourned meeting if the date, time and place, if any, thereof, and the means of remote communication, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such adjourned meeting, are announced at the meeting at which the adjournment is taken; provided, however, that if the date of any adjourned meeting is more than 30 days after the date for which the meeting was originally noticed, or if the Board fixes a new record date for determining the stockholders entitled to vote at the adjourned meeting in accordance with <u>Section</u> <u>5.5</u>, written notice of the place, if any, date and time of the adjourned meeting and the means of remote communication, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such adjourned meeting, shall be given in conformity herewith. At the adjourned meeting, the Corporation may transact any business which might have been transacted at the original meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Voting and Proxies</u>. Each stockholder shall have one vote for each share of stock entitled to vote held of record by such stockholder and a proportionate vote for each fractional share so held, unless otherwise provided by law or in the Certificate of Incorporation. Each stockholder of record entitled to vote at a meeting of stockholders may vote in person or may authorize any other person or persons to vote or act for such stockholder by a written proxy executed by the stockholder or the stockholder's authorized agent or by an electronic transmission permitted by law and delivered to the Secretary of the Corporation. Any copy, electronic transmission or other reliable reproduction of the writing or electronic transmission created pursuant to this section may be substituted or used in lieu of the original writing or electronic transmission for any and all purposes for which the original writing or transmission could be used, provided that such copy, electronic transmission or other reproduction shall be a complete reproduction of the entire original writing or electronic transmission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <u>Action at Meeting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At any meeting of stockholders for the election of one or more directors at which a quorum is present, the election shall be determined by a majority of the votes cast by the stockholders entitled to vote at the election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All other matters shall be determined by a majority in voting power of the shares present in person or represented by proxy and entitled to vote on the matter (or if there are two or more classes of stock entitled to vote as separate classes, then in the case of each such class,

------

a majority of the shares of each such class present in person or represented by proxy and entitled to vote on the matter shall decide such matter), provided that a quorum is present, except when a different vote is required by express provision of law, the Certificate of Incorporation or these Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All voting, including on the election of directors, but excepting where otherwise required by law, may be by a voice vote; provided, that upon demand therefor by a stockholder entitled to vote or the stockholder's proxy, a vote by ballot shall be taken. Each ballot shall state the name of the stockholder or proxy voting and such other information as may be required under the procedure established for the meeting. The Corporation may, and to the extent required by law, shall, in advance of any meeting of stockholders, appoint one or more inspectors to act at the meeting and make a written report thereof. The Corporation may designate one or more persons as an alternate inspector to replace any inspector who fails to act. If no inspector or alternate is able to act at a meeting of stockholders, the person presiding at the meeting may, and to the extent required by law, shall, appoint one or more inspectors to act at the meeting. Each inspector, before entering upon the discharge of his duties, shall take and sign an oath to faithfully execute the duties of inspector with strict impartiality and according to the best of his ability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <u>Nomination of Directors and Proposal of Other Business</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Annual Meetings of Stockholders. (i) Nominations of persons for election to the Board or the proposal of other business to be transacted by the stockholders at an annual meeting of stockholders may be made only (A) pursuant to the Corporation's notice of meeting (or any supplement thereto), (B) by or at the direction of the Board or any committee thereof duly authorized, (C) as may be provided in the certificate of designations for any class or series of preferred stock or (D) by any stockholder of the Corporation who is a stockholder of record at the time of giving of notice provided for in paragraph (ii) of this <u>Section</u> <u>2.10(a)</u> and at the time of the annual meeting, who shall be entitled to vote at the meeting and who complies with the procedures set forth in this <u>Section</u> <u>2.10(a)</u>, and, except as otherwise required by law, any failure to comply with these procedures shall result in the nullification of such nomination or proposal. For the avoidance of doubt, the foregoing clause (D) shall be the exclusive means for a stockholder to make nominations or propose other business at an annual meeting of stockholders (other than a proposal included in the Corporation's proxy statement pursuant to and in compliance with Rule 14a-8 under the Exchange Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For nominations or other business to be properly brought before an annual meeting of stockholders by a stockholder pursuant to clause (D) of paragraph (i) of this <u>Section</u> <u>2.10(a)</u>, the stockholder must have given timely notice thereof in writing to the Secretary of the Corporation and any such proposed business (other than the nominations of persons for election to the Board) must constitute a proper matter for stockholder action. To be timely, a stockholder's notice shall be delivered to, or mailed and received by, the Secretary of the Corporation at the principal executive offices of the Corporation not less than 90 days nor more than 120 days prior to the first anniversary of the preceding year's annual meeting of stockholders; provided, however, that in the event that the date of the annual meeting is advanced more than 30 days prior to such anniversary date or delayed more than 70 days after such anniversary date then to be timely such notice must be received by the Corporation no earlier than 120 days prior to such annual meeting and no later than the later of 90 days prior to the date of the meeting or the 10th

------

day following the day on which public announcement of the date of the meeting was first made by the Corporation. The minimum timeliness requirements of this paragraph shall apply despite any different timeline described in Rule 14a-19 or elsewhere in Regulation 14A under the Securities Exchange Act of 1934 (as amended (together with the rules and regulations promulgated thereunder), the "***Exchange Act***"), including with respect to any statements or information required to be provided to the Corporation pursuant to Rule 14a-19 of the Exchange Act by a stockholder and not otherwise specified herein. In no event shall the adjournment, recess or postponement of any meeting, or any announcement thereof, commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above. The number of nominees a stockholder may nominate for election at the annual meeting on its own behalf (or in the case of a stockholder giving the notice on behalf of a beneficial owner, the number of nominees a stockholder may nominate for election at the annual meeting on behalf of such beneficial owner) shall not exceed the number of directors to be elected at such annual meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A stockholder's notice to the Secretary shall set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) as to each person whom the stockholder proposes to nominate for election or reelection as a director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the name, age, business address and residence address of such person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the principal occupation or employment of such person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) (i) for each class or series, the number of shares of capital stock of the Corporation that are held of record or are beneficially owned (and proof of any such beneficial ownership) by such person and any affiliates or associates (each within the meaning of Rule 12b-2 promulgated under the Exchange Act for purposes of these Bylaws) of such person, including any such shares that such person, or any affiliates or associates of such person, has the right to acquire beneficial ownership of, (ii) the name of each nominee holder of shares of all capital stock of the Corporation owned beneficially (and proof of any such beneficial ownership) but not of record by such person or any affiliates or associates of such person, and the number of such shares of each class or series of capital stock held by each such nominee holder, including any such shares that such nominee holder

------

has the right to acquire beneficial ownership of, (iii) any agreement, arrangement, relationship or understanding pursuant to which such person, or any affiliates or associates of such person, has a right to vote any shares of any security of the Corporation, (iv) a description of any agreement, arrangement or understanding (including, regardless of the form of settlement, any derivative, long or short positions, profit interests, forwards, futures, swaps, options, warrants, convertible securities, stock appreciation or similar rights, hedging transactions and borrowed or loaned shares) that has been entered into by or on behalf of, or any other agreement, arrangement or understanding that has been made, the effect or intent of which is to create or mitigate loss to, manage risk or benefit of share price changes for, or increase or decrease the voting power of, such person, or any affiliates or associates of such person, with respect to the Corporation's securities, and (v) any direct or indirect interest of such person, or any affiliates or associates of such person, in any employment agreement, collective bargaining agreement or consulting agreement with the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) all information relating to such person, or any affiliates or associates of such person, that is required to be disclosed in solicitations of proxies for election of directors, or is otherwise required, in each case pursuant to Regulation 14A under the Exchange Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) all completed and signed questionnaires in the same form as those questionnaires required of the Corporation's directors (which will be provided to such person within 5 business days following a request therefor);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) a statement that such person has read the Corporation's corporate governance guidelines and any other Corporation policies and guidelines applicable to directors (which will be provided to such person within 5 business days following a request therefor), and a written agreement from such person to adhere to the foregoing policies and guidelines, as amended from time to time, if he or she is elected as a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) an executed agreement by such person: (i) consenting to serve as a director if elected and (if applicable) to being named in a proxy statement and/or form of proxy relating to the meeting at which directors are to be elected, along with a representation that such person intends to serve a full term as a director if elected, and (ii) that such person is not and will not become a party to (x) any direct or indirect compensatory, payment or other financial agreement, arrangement or understanding with any other person or entity other than the Corporation, in each case in connection with candidacy or service as a director of the Corporation (a "***Third-Party Compensation Arrangement***") that has not been fully disclosed to the Corporation prior to, or concurrently with, the submission of the notice from

------

the stockholder required by this Section 2.10, (y) any agreement, arrangement or understanding, including the amount of any payment or payments received or receivable thereunder, with any other person or entity as to how such person would vote or act on any issue or question as a director (a "Voting Commitment") that has not been fully disclosed to the Corporation prior to, or concurrently with, the submission of the notice from the stockholder required by this Section 2.10 or (z) any Voting Commitment that could limit or interfere with such person's ability to comply, if elected as a director of the Corporation, with such person's fiduciary duties under applicable law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) such other information reasonably requested by the Corporation to determine whether such person is qualified under the Certificate of Incorporation, these Bylaws, the rules or regulations of any stock exchange applicable to the Corporation, or any law or regulation applicable to the Corporation to serve as a director and/or independent director of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) as to any other business that the stockholder proposes to bring before the meeting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a brief description of the business desired to be brought before the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the text of the proposal or business (including the text of any resolutions proposed for consideration and in the event that such business includes a proposal to amend these Bylaws, the text of the proposed amendment);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the reasons for conducting such business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any substantial interest (within the meaning of Item 5 of Schedule 14A under the Exchange Act) in such business of such stockholder and the beneficial owner, if any, on whose behalf the proposal is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) as to the stockholder giving the notice and the beneficial owner, if any, on whose behalf the nomination or proposal is made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the name and address of such stockholder (as they appear on the Corporation's books) and any such beneficial owner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a representation as to whether such stockholder or such beneficial owner has complied with all applicable legal requirements in connection with its acquisition of shares or other securities of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) a written agreement from such stockholder that it is a holder of record of stock of the Corporation entitled to vote at such meeting

------

and intends to appear at the meeting in person or through a qualified representative (which means a person who has delivered to the Corporation before the meeting written evidence that they are authorized by a writing executed by such stockholder to act for such stockholder as proxy at the meeting of stockholders) to make such nomination or proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) in the case of a nomination, a written agreement from such stockholder (and such beneficial owner) that it (or they) will not submit any substitute nominations unless they are made within the time periods set forth in this <u>Section</u> <u>2.10</u> and the stockholder and the substitute nominees will otherwise comply with this <u>Section</u> <u>2.10</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) in the case of a nomination, a written agreement from such stockholder (and such beneficial owner) that it (or they) has not, and shall not, nominate a number of nominees (inclusive of substitutes) that exceeds the number of directors to be elected at the annual meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) a written agreement that such stockholder (and such beneficial owner) shall (i) update and supplement the notice required by this Section 2.10, if necessary, so that the information provided or required in such notice shall be true and correct as of the record date for determining the stockholders entitled to receive notice of the annual meeting, and as of the date that is 5 business days prior to the meeting or any adjournment or postponement thereof and (ii) deliver such update and supplement so that it is received by the Secretary at the principal executive offices of the Corporation (A) not later than the later of (x) 5 business days after the record date for determining the stockholders entitled to receive notice of the annual meeting and (y) 5 business days after the first public announcement of such record date, in the case of any update and supplement required to be made as of the record date, and (B) not later than 5 business days before the meeting or any adjournment or postponement thereof, in the case of any update and supplement required to be made as of the date that is 5 business days prior to the meeting or any adjournment or postponement thereof. For the avoidance of doubt, the obligation to update and supplement as set forth in this <u>Section</u> <u>2.10</u> or any other section of these Bylaws shall not limit the Corporation's rights with respect to any deficiencies in any stockholder's notice, extend any applicable deadlines under these Bylaws or enable or be deemed to permit a stockholder who has previously submitted a stockholder's notice under these Bylaws to amend or update any proposal or to submit any new proposal, including by changing or adding nominees, matters, business and/or resolutions proposed to be brought before a meeting of stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) as to each of the stockholder giving the notice, the beneficial owner, if any, on whose behalf the nomination or proposal is made, and, if such stockholder or beneficial owner is an entity, each person controlling, controlled by or under common

------

control with such stockholder or beneficial owner (each such person or entity contemplated by this clause (D), a "***Proposing Person***"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) for each class or series, the number of shares of capital stock of the Corporation that are held of record or are beneficially owned (and proof of any such beneficial ownership) by such Proposing Person, or any associates (within the meaning of Rule 12b-2 promulgated under the Exchange Act for purposes of these Bylaws) of such Proposing Person, including any such shares that such Proposing Person, or any associates of such Proposing Person, has the right to acquire beneficial ownership of;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the name of each nominee holder of each class or series of capital stock of the Corporation that are owned beneficially (and proof of any such beneficial ownership) but not of record by such Proposing Person, or any associates of such Proposing Person, and the number of such shares of each class or series of capital stock of the Corporation held by each such nominee holder, including any such shares that such nominee holder has the right to acquire beneficial ownership of;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) a description of any agreement, arrangement, relationship or understanding pursuant to which such Proposing Person, or any associates of such Proposing Person, has a right to vote any shares of any security of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) a description of any material pending or threatened legal proceeding in which such Proposing Person is a party or material participant involving the Corporation or any of its officers or directors, or any affiliate of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) a description of (i) any plans or proposals which any such Proposing Person may have with respect to securities of the Corporation that would be required to be disclosed pursuant to Item 4 of Exchange Act Schedule 13D (regardless of whether the requirement to file a Schedule 13D is applicable) and (ii) any agreement, arrangement or understanding (including the identity of the parties thereto) with respect to the nomination or other business between or among such Proposing Persons and any other parties, including without limitation any agreements that would be required to be disclosed pursuant to Item 5 or Item 6 of Exchange Act Schedule 13D (regardless of whether the requirement to file a Schedule 13D is applicable), in each case as of the date the notice required by this <u>Section</u> <u>2.10</u> is delivered to the Corporation by the stockholder, or beneficial owner in such business, if any, presenting the nomination or other proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) a description of any agreement, arrangement or understanding (including, regardless of the form of settlement, any derivative, long or short positions, profit interests, forwards, futures, swaps, options, warrants, convertible securities, stock appreciation or similar

------

rights, hedging transactions and borrowed or loaned shares) that has been entered into by or on behalf of, or any other agreement, arrangement or understanding that has been made, the effect or intent of which is to create or mitigate loss to, manage risk or benefit of share price changes for, or increase or decrease the voting power of, such Proposing Person, or any associates of such Proposing Person, with respect to the Corporation's securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) a written representation as to whether any Proposing Person, or any other participant as defined in Item 4 of Schedule 14A under the Exchange Act, will engage in a solicitation with respect to such nomination or other business and, if so, whether such solicitation will be conducted as an exempt solicitation under Rule 14a-2(b) of the Exchange Act, the name of each participant in such solicitation and the amount of the cost of solicitation that has been and will be borne, directly or indirectly, by each participant in such solicitation and (x) in the case of a proposal of business other than nominations, whether such person or group intends to deliver a proxy statement and/or form of proxy to holders of at least the percentage of the Corporation's voting shares required under applicable law to carry the proposal, (y) in the case of any solicitation that is subject to Rule 14a-19 of the Exchange Act, confirming that such person or group will deliver, through means satisfying each of the conditions that would be applicable to the Corporation under either Exchange Act Rule 14a-16(a) or Exchange Act Rule 14a-16(n), a proxy statement and/or form of proxy to holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of the Corporation's capital stock entitled to vote generally in the election of directors and/or (z) whether such person or group intends to otherwise solicit proxies or votes from holders in support of such proposal or nomination (for purposes of this clause (7), the term "holders" shall include, in addition to stockholders of record, any beneficial owners pursuant to Rule 14b-1 and Rule 14b-2 of the Exchange Act);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) a representation that promptly after any Proposing Person solicits the holders of the Corporation's stock referred to in the representation required under the preceding clause, and in any event no later than 5 business days before the applicable meeting, such Proposing Person will provide the Corporation with reasonable documentary evidence (as determined by the Corporation or one of its representatives, acting in good faith), which may take the form of a certified statement and documentation from a proxy solicitor, specifically demonstrating that the necessary steps have been taken to deliver a proxy statement and/or form of proxy to holders of such percentage of the Corporation's stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) any direct or indirect interest of such Proposing Person, or any associates of such Proposing Person, in any contract (including, in any such case, any employment agreement, collective bargaining agreement

------

or consulting agreement) with the Corporation, or any affiliate of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) any other information relating to such Proposing Person, or any associates of such Proposing Person, or proposed business that would be required to be disclosed in a proxy statement or other filing required to be made in connection with the solicitation of proxies in support of such nominee or proposal pursuant to Section 14 of the Exchange Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) such other information relating to any proposed item of business as the Corporation may reasonably require to determine whether such proposed item of business is a proper matter for stockholder action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Special Meetings of Stockholders. If the election of directors is included as business to be brought before a special meeting in the Corporation's notice of meeting, then nominations of persons for election to the Board at a special meeting of stockholders may be made by any stockholder who is a stockholder of record at the time of giving of notice provided for in this <u>Section</u> <u>2.10(b)</u> and at the time of the special meeting, who shall be entitled to vote at the meeting and who complies with the procedures set forth in this <u>Section</u> <u>2.10(b)</u>; provided, however, that the number of nominees a stockholder may nominate for election at the special meeting on its own behalf (or in the case of a stockholder giving the notice on behalf of a beneficial owner, the number of nominees a stockholder may nominate for election at the special meeting on behalf of such beneficial owner) shall not exceed the number of directors to be elected as such special meeting. For nominations to be properly brought by a stockholder before a special meeting of stockholders pursuant to this <u>Section</u> <u>2.10(b)</u>, the stockholder must have given timely notice thereof in writing to the Secretary of the Corporation. To be timely, a stockholder's notice shall be delivered to or mailed and received at the principal executive offices of the Corporation (A) not earlier than 120 days prior to the date of the special meeting nor (B) later than the later of 90 days prior to the date of the special meeting and the 10th day following the day on which public announcement of the date of the special meeting was first made by the Corporation. A stockholder's notice to the Secretary shall comply with the notice requirements of <u>Section</u> <u>2.10(a)(iii)</u>. The minimum timeliness requirements of this paragraph shall apply despite any different timeline described in Rule 14a-19 or elsewhere in Regulation 14A under the Exchange Act, including with respect to any statements or information required to be provided to the Corporation pursuant to Rule 14a-19 of the Exchange Act by a stockholder and not otherwise specified herein. In no event shall the adjournment, recess or postponement of a special meeting, or any announcement thereof, commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above. Such notice of a stockholder shall include the same information, representations, certifications and agreements that would be required if the stockholder were to make a nomination in connection with an annual meeting of stockholders pursuant to the preceding provisions of this <u>Section</u> <u>2.10</u>, and such stockholder shall be obligated to provide the same supplemental or additional information in connection with a special meeting of stockholders as required pursuant to the preceding provisions of this <u>Section</u> <u>2.10</u> in connection with an annual meeting of stockholders.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) General. (i) No person shall be eligible to be nominated by a stockholder to be elected or reelected at any meeting of stockholders to serve as a director of the Corporation unless nominated in accordance with the procedures set forth in this <u>Section</u> <u>2.10</u>. No business proposed by a stockholder shall be conducted at a stockholder meeting except in accordance with this <u>Section</u> <u>2.10</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting any remedy available to the Corporation, and unless otherwise determined by the Board, the Chairperson of the Board or the chairperson of the meeting, a stockholder may not present nominations for director or business proposals at an annual or special meeting of stockholders (and any such nominee shall be disqualified from standing for election), notwithstanding proxies or votes may have been solicited and/or received with respect thereto, if such stockholder, any beneficial owner, any Proposing Person or any nominee or substitute nominee for director: (A) acted contrary to any representation, statement, certification or agreement required by the applicable provisions of these Bylaws; (B) otherwise failed to comply with these Bylaws or with any law, rule or regulation identified in these Bylaws, including all applicable requirements of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in this <u>Section</u> <u>2.10</u>; provided, however, that any references in these Bylaws to the Exchange Act or the rules and regulations promulgated thereunder are not intended to and shall not limit any requirements applicable to nominations or proposals as to any other business to be considered pursuant to this <u>Section</u> <u>2.10</u>; or (C) provided information to the Corporation (whether required by these Bylaws or otherwise) that is false, misleading, inaccurate or incomplete in any material respect. The Board, the Chairperson of the Board or the chairperson of the meeting shall, if the facts warrant, determine and declare to the meeting that a nomination was not made in accordance with the procedures prescribed by these Bylaws or that business was not properly brought before the meeting, and if he/she should so determine, he/she shall so declare to the meeting and the defective nomination shall be disregarded or such business shall not be transacted, as the case may be. Notwithstanding the foregoing provisions of this <u>Section</u> <u>2.10</u>, unless otherwise required by law, if the stockholder (or a qualified representative of the stockholder) does not appear at the annual or special meeting of stockholders of the Corporation to present a nomination or other proposed business, such nomination shall be disregarded or such proposed business shall not be transacted, as the case may be, notwithstanding that proxies in respect of such vote may have been received by the Corporation and counted for purposes of determining a quorum. For purposes of this <u>Section</u> <u>2.10</u>, to be considered a qualified representative of the stockholder, a person must be a duly authorized officer, manager or partner of such stockholder or must be authorized by a writing executed by such stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as proxy at the meeting of stockholders and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at the meeting of stockholders.

Notwithstanding anything to the contrary in these Bylaws, unless otherwise required by law, if any Proposing Person (i) provides notice pursuant to Rule 14a-19(b) promulgated under the Exchange Act (or has previously filed a preliminary or definitive proxy statement with the information required by Rule 14a-19(b)) with respect to any proposed nominee for election as a director of the Corporation and (ii) subsequently fails to comply with the requirements of Rule 14a-19(a)(2) or Rule 14a-19(a)(3) promulgated under the Exchange Act (or fails to timely provide reasonable evidence sufficient to satisfy the Corporation that such Proposing Person has met the requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act in accordance with the

------

following sentence), then the nomination of each such proposed nominee shall be disregarded, notwithstanding that the nominee is included as a nominee in the Corporation's proxy statement, notice of meeting or other proxy materials for any meeting (or any supplement thereto) and notwithstanding that proxies or votes in respect of the election of such proposed nominees may have been received by the Corporation (which proxies and votes shall be disregarded). Upon request by the Corporation, if any Proposing Person provides notice pursuant to Rule 14a-19(b) promulgated under the Exchange Act (or has previously filed a preliminary or definitive proxy statement with the information required by Rule 14a-19(b)), such Proposing Person, shall deliver to the Corporation, no later than 5 business days prior to the applicable meeting, reasonable evidence that it has met the requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Compliance with paragraphs (a) and (b) of this <u>Section</u> <u>2.10</u> shall be the exclusive means for a stockholder to make nominations or submit other business (other than as provided in <u>Section</u> <u>2.10(c)(iv)</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding anything to the contrary, the notice requirements set forth herein with respect to the proposal of any business pursuant to this <u>Section</u> <u>2.10</u> shall be deemed satisfied by a stockholder if such stockholder has submitted a proposal to the Corporation in compliance with Rule 14a-8 under the Exchange Act, and such stockholder's proposal has been included in a proxy statement that has been prepared by the Corporation to solicit proxies for the meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Any stockholder directly or indirectly soliciting proxies from other stockholders in connection with any annual or special meeting of stockholders must use a proxy card color other than white, which shall be reserved for the exclusive use for solicitation by or on behalf of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) For purposes of these Bylaws, "business day" means any day other than Saturday, Sunday or a day on which banks are closed in New York City, New York; and "close of business" means 5:00 p.m. local time at the principal executive offices of the Corporation on any calendar day, whether or not the day is a business day.

**ARTICLE III** 

**BOARD OF DIRECTORS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>General Powers</u>. The business and affairs of the Corporation shall be managed by or under the direction of a Board, who may exercise all of the powers of the Corporation except as otherwise provided by law or the Certificate of Incorporation. In the event of a vacancy on the Board, the remaining directors, except as otherwise provided by law, may exercise the powers of the full Board until the vacancy is filled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Resignations</u>. Any director may resign at any time upon notice given in writing or by electronic transmission to the Board, the Chairperson of the Board, the Chief Executive Officer of the Corporation or the Secretary. The resignation shall take effect at the time specified therein, and if no time is specified, at the time of its receipt. The acceptance of a resignation shall not be necessary to make it effective unless otherwise expressly provided in the resignation.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Vacancies and Newly Created Directorships</u>. Except as otherwise provided by applicable law, vacancies occurring in any directorship (whether by death, resignation, retirement, disqualification, removal or other cause) and newly created directorships resulting from any increase in the number of directors shall be filled in accordance with the Certificate of Incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Regular Meetings</u>. Regular meetings of the Board may be held without notice at such time and place, either within or without the State of Delaware, as shall be determined from time to time by the Board; provided that any director who is absent when such a determination is made shall be given notice of the determination. A regular meeting of the Board may be held without notice immediately after and at the same place as the annual meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Special Meetings</u>. Special meetings of the Board may be called by the Chairperson of the Board, the Chief Executive Officer, the President or a majority of the directors then in office and may be held at any time and place, within or without the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Notice of Special Meetings</u>. Notice of any special meeting of directors shall be given to each director by whom it is not waived by the Secretary or by the officer or one of the directors calling the meeting. Notice shall be duly given to each director by (a) giving notice to such director in person or by telephone or voice message system at least 24 hours in advance of the meeting, (b) electronic transmission to such director's last known email address, or (c) mailing or delivering written notice to such director's last known business or home address at least three days in advance of the meeting. A notice or waiver of notice of a meeting of the Board need not specify the purposes of the meeting. Unless otherwise indicated in the notice thereof, any and all business may be transacted at a special meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <u>Participation in Meetings by Telephone Conference Calls or Other Methods of Communication</u>. Directors or any members of any committee designated by the directors may participate in a meeting of the Board or such committee by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and participation by such means shall constitute presence in person at such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <u>Quorum; Adjournment</u>. A majority of the total number of authorized directors shall constitute a quorum at any meeting of the Board. In the absence of a quorum at any such meeting, a majority of the directors present may adjourn the meeting from time to time without further notice other than announcement at the meeting, until a quorum shall be present. Interested directors may be counted in determining the presence of a quorum at a meeting of the Board or at a meeting of a committee which authorizes a particular contract or transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <u>Action at Meeting</u>. At any meeting of the Board at which a quorum is present, the vote of a majority of those present shall be sufficient to take any action, unless a different vote is specified by law, the Certificate of Incorporation or these Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <u>Action by Written Consent</u>. Any action required or permitted to be taken at any meeting of the Board or of any committee of the Board may be taken without a meeting if all members of the Board or committee, as the case may be, consent to the action in writing or by electronic transmission, and the writings or electronic transmissions are filed with the minutes of

------

proceedings of the Board or committee. Such filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 <u>Committees</u>. The Board may designate one or more committees, each committee to consist of one or more of the directors of the Corporation, with such lawfully delegated powers and duties as it therefor confers; provided that, the committee membership of each committee designated by the Board will comply with the applicable rules of the exchange on which any securities of the Corporation are listed. The Board may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members of the committee present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent provided in the resolution of the Board and subject to the provisions of the DGCL, shall have and may exercise all the powers and authority of the Board in the management of the business and affairs of the Corporation and may authorize the seal of the Corporation to be affixed to all papers which may require it. Each such committee shall keep minutes and make such reports as the Board may from time to time request. Except as the Board may otherwise determine, any committee may make rules for the conduct of its business, but unless otherwise provided by such rules, its business shall be conducted as nearly as possible in the same manner as is provided in these Bylaws for the Board. Unless otherwise provided in the Certificate of Incorporation, these Bylaws or the resolutions of the Board designating the committee, a committee may create one or more subcommittees, each subcommittee consists of one or more members of the committee, and delegate to a subcommittee any or all of the powers and authority of the committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 <u>Compensation of Directors</u>. Directors may be paid such compensation for their services and such reimbursement for expenses of attendance at meetings as the Board may from time to time determine. No such payment shall preclude any director from serving the Corporation or any of its parent or subsidiary Corporations in any other capacity and receiving compensation for such service.

**ARTICLE IV** 

**OFFICERS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Enumeration</u>. The officers of the Corporation shall consist of a Chief Executive Officer, a President, a Secretary, a Treasurer, a Chief Financial Officer and such other officers with such other titles as the Board shall determine, including, at the discretion of the Board, a Chairperson of the Board and one or more Vice Presidents and Assistant Secretaries. The Board may appoint such other officers as it may deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Election</u>. Officers shall be elected annually by the Board at its first meeting following the annual meeting of stockholders. Officers may be appointed by the Board at any other meeting.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Qualification</u>. No officer need be a stockholder. Any two or more offices may be held by the same person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Tenure</u>. Except as otherwise provided by law, by the Certificate of Incorporation or by these Bylaws, each officer shall hold office until such officer's successor is elected and qualified, unless a different term is specified in the vote appointing the officer, or until such officer's earlier death, resignation or removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Resignation and Removal</u>. Any officer may resign by delivering his written resignation to the Corporation at its principal office or to the President or Secretary. Such resignation shall be effective upon receipt unless it is specified to be effective at some other time or upon the happening of some other event. Any officer elected by the Board may be removed at any time, with or without cause, by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Chairperson of the Board</u>. The Board may appoint a Chairperson of the Board. If the Board appoints a Chairperson of the Board, the Chairperson of the Board shall perform such duties and possess such powers as are assigned to the Chairperson by the Board and these Bylaws. Unless otherwise provided by the Board, the Chairperson of the Board shall preside at all meetings of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Chief Executive Officer</u>. The Chief Executive Officer of the Corporation shall, subject to the direction of the Board, have general supervision, direction and control of the business and the officers of the Corporation. The Chief Executive Officer shall preside at all meetings of the stockholders and, in the absence or nonexistence of a Chairperson of the Board, at all meetings of the Board. The Chief Executive Officer shall have the general powers and duties of management usually vested in the chief executive officer of a Corporation, including general supervision, direction and control of the business and supervision of other officers of the Corporation, and shall have such other powers and duties as may be prescribed by the Board or these Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>President</u>. Subject to the direction of the Board and such supervisory powers as may be given by these Bylaws or the Board to the Chairperson of the Board or the Chief Executive Officer, if such titles be held by other officers, the President shall have general supervision, direction and control of the business and supervision of other officers of the Corporation. Unless otherwise designated by the Board, the President shall be the Chief Executive Officer of the Corporation. The President shall have such other powers and duties as may be prescribed by the Board or these Bylaws. The President shall have power to sign stock certificates, contracts and other instruments of the Corporation which are authorized and shall have general supervision and direction of all of the other officers, employees and agents of the Corporation, other than the Chairperson of the Board and the Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>Vice Presidents</u>. Any Vice President shall perform such duties and possess such powers as the Board, the Chief Executive Officer or the President may from time to time prescribe. In the event of the absence, inability or refusal to act of the President, the Vice President (or if there shall be more than one, the Vice Presidents in the order determined by the Board) shall perform the duties of the President and when so performing shall have all the powers of and be

------

subject to all the restrictions upon the President. The Board may assign to any Vice President the title of Executive Vice President, Senior Vice President or any other title selected by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 <u>Secretary and Assistant Secretaries</u>. The Secretary shall perform such duties and shall have such powers as the Board or the President may from time to time prescribe. In addition, the Secretary shall perform such duties and have such powers as are set forth in these Bylaws and as are incident to the office of the Secretary, including, without limitation, the duty and power to give notices of all meetings of stockholders and special meetings of the Board, to keep a record of the proceedings of all meetings of stockholders and the Board, to maintain a stock ledger and prepare lists of stockholders and their addresses as required, to be custodian of corporate records and the corporate seal and to affix and attest to the same on documents.

Any Assistant Secretary shall perform such duties and possess such powers as the Board, the Chief Executive Officer, the President or the Secretary may from time to time prescribe. In the event of the absence, inability or refusal to act of the Secretary, the Assistant Secretary (or if there shall be more than one, the Assistant Secretaries in the order determined by the Board) shall perform the duties and exercise the powers of the Secretary.

In the absence of the Secretary or any Assistant Secretary at any meeting of stockholders or directors, the person presiding at the meeting shall designate a temporary secretary to keep a record of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 <u>Treasurer</u>. The Treasurer shall perform such duties and have such powers as are incident to the office of treasurer, including without limitation, the duty and power to keep and be responsible for all funds and securities of the Corporation, to maintain the financial records of the Corporation, to deposit funds of the Corporation in depositories as authorized, to disburse such funds as authorized, to make proper accounts of such funds, and to render as required by the Board accounts of all such transactions and of the financial condition of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12 <u>Chief Financial Officer</u>. The Chief Financial Officer shall perform such duties and shall have such powers as may from time to time be assigned to the Chief Financial Officer by the Board, the Chief Executive Officer or the President. Unless otherwise designated by the Board, the Chief Financial Officer shall be the Treasurer of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13 <u>Salaries</u>. Officers of the Corporation shall be entitled to such salaries, compensation or reimbursement as shall be fixed or allowed from time to time by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14 <u>Delegation of Authority</u>. The Board may from time to time delegate the powers or duties of any officer to any other officers or agents, notwithstanding any provision hereof.

**ARTICLE V** 

**CAPITAL STOCK** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Shares of Stock</u>. The shares of the Corporation may be (i) represented by certificates, (ii) uncertificated shares provided that the Board has provided by resolution that some or all of any or all classes or series of stock shall be uncertificated shares or (iii) a combination of both. Any such resolution shall not apply to shares represented by a certificate until such certificate is surrendered to the Corporation.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Signatures</u>. To the extent any shares are represented by certificates, every holder of stock represented by certificates shall be entitled to have a certificate signed by or in the name of the Corporation by any two authorized officers of the Corporation, including, without limitation, the Chief Executive Officer, the President, the Chief Financial Officer, the Treasurer, the Secretary, or an Assistant Treasurer or Assistant Secretary, certifying the number of shares owned by such holder in the Corporation. To the extent any shares are represented by certificates, any or all of the signatures on a certificate may be a facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if such person were such officer, transfer agent or registrar at the date of issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Lost Certificates</u>. The Board may direct a new certificate or uncertificated shares be issued in place of any certificate theretofore issued by the Corporation alleged to have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming the certificate of stock to be lost, stolen or destroyed. When authorizing such issuance of a new certificate or uncertificated shares, the Board may, in its discretion and as a condition precedent to the issuance thereof, require the owner of such lost, stolen or destroyed certificate, or such owner's legal representative, to advertise the same in such manner as the Board shall require and/or to give the Corporation a bond in such sum as it may direct as indemnity against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate or the issuance of such new certificate or uncertificated shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Transfers</u>. Stock of the Corporation shall be transferable in the manner prescribed by applicable law, the Certificate of Incorporation and these Bylaws. Transfers of stock shall be made on the books of the Corporation, and in the case of certificated shares of stock, only by the person named in the certificate or by such person's attorney lawfully constituted in writing and upon the surrender of the certificate therefor, properly endorsed for transfer and payment of all necessary transfer taxes; or, in the case of uncertificated shares of stock, upon receipt of proper transfer instructions from the registered holder of the shares or by such person's attorney lawfully constituted in writing, and upon payment of all necessary transfer taxes and compliance with appropriate procedures for transferring shares in uncertificated form; provided, however, that such surrender and endorsement (to the extent any shares are represented by certificates), compliance or payment of taxes shall not be required in any case in which the officers of the Corporation shall determine to waive such requirement. With respect to certificated shares of stock, every certificate exchanged, returned or surrendered to the Corporation shall be marked "Cancelled," with the date of cancellation, by the Secretary of the Corporation or the transfer agent thereof. No transfer of stock shall be valid as against the Corporation for any purpose until it shall have been entered in the stock records of the Corporation by an entry showing from and to whom transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Dividend Record Date</u>. In order that the Corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted, and which record date shall be not more than sixty (60) days prior to such action. If no

------

record date is fixed, the record date for determining stockholders for any such purpose shall be at the close of business on the day on which the Board adopts the resolution relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Record Owners</u>. The Corporation shall be entitled to recognize the exclusive right of a person registered on its books as the owner of shares to receive dividends, and to vote as such owner and shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Transfer and Registry Agents</u>. The Corporation may from time to time maintain one or more transfer offices or agencies and registry offices or agencies at such place or places as may be determined from time to time by the Board.

**ARTICLE VI** 

**GENERAL PROVISIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Fiscal Year</u>. The fiscal year of the Corporation shall be as fixed by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Waiver of Notice</u>. Whenever any notice whatsoever is required to be given by law, by the Certificate of Incorporation or by these Bylaws, a waiver of such notice either in writing signed by the person entitled to such notice or such person's duly authorized attorney, or by electronic transmission or any other method permitted under the DGCL, whether before, at or after the time stated in such waiver, or the appearance of such person or persons at such meeting in person or by proxy, shall be deemed equivalent to such notice. Neither the business nor the purpose of any meeting need be specified in such a waiver. Attendance at any meeting shall constitute waiver of notice except attendance for the sole purpose of objecting to the timeliness or manner of notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Actions with Respect to Securities of Other Corporations</u>. Except as the Board may otherwise designate, the Chief Executive Officer or President or any officer of the Corporation authorized by the Chief Executive Officer or President shall have the power to vote and otherwise act on behalf of the Corporation, in person or by proxy, and may waive notice of, and act as, or appoint any person or persons to act as, proxy or attorney-in-fact to this Corporation (with or without power of substitution) at any meeting of stockholders or shareholders (or with respect to any action of stockholders) of any other Corporation or organization, the securities of which may be held by this Corporation and otherwise to exercise any and all rights and powers that this Corporation may possess by reason of this Corporation's ownership of securities in such other Corporation or other organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Evidence of Authority</u>. A certificate by the Secretary, or an Assistant Secretary, or a temporary Secretary, as to any action taken by the stockholders, directors, a committee or any officer or representative of the Corporation shall as to all persons who rely on the certificate in good faith be conclusive evidence of such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Certificate of Incorporation</u>. All references in these Bylaws to the Certificate of Incorporation shall be deemed to refer to the Certificate of Incorporation of the Corporation, as amended and in effect from time to time.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Severability</u>. Any determination that any provision of these Bylaws is for any reason inapplicable, illegal or ineffective shall not affect or invalidate any other provision of these Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Pronouns</u>. All pronouns used in these Bylaws shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as the identity of the person or persons may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Notices</u>. Except as otherwise specifically provided herein or required by law, all notices required to be given to any stockholder, director, officer, employee or agent of the Corporation shall be in writing and may in every instance be effectively given by hand delivery to the recipient thereof, by depositing such notice in the mails, postage paid, or by sending such notice by commercial courier service, or by electronic transmission, provided that notice to stockholders by electronic transmission shall be given in the manner provided in Section 232 of the DGCL. Any such notice shall be addressed to such stockholder, director, officer, employee or agent at his, her or its last known address as the same appears on the books of the Corporation. The time when such notice shall be deemed to be given shall be the time such notice is received by such stockholder, director, officer, employee or agent, or by any person accepting such notice on behalf of such person, if delivered by hand, electronic transmission or commercial courier service, or the time such notice is dispatched, if delivered through the mails. Without limiting the manner by which notice otherwise may be given effectively, notice to any stockholder shall be deemed given: (a) if by electronic mail, when directed to an electronic mail address at which the stockholder has consented to receive notice; (b) if by a posting on an electronic network together with separate notice to the stockholder of such specific posting, upon the later of (i) such posting and (ii) the giving of such separate notice; (c) if by any other form of electronic transmission, when directed to the stockholder; and (d) if by mail, when deposited in the mail, postage prepaid, directed to the stockholder at such stockholder's address as it appears on the records of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <u>Reliance Upon Books, Reports and Records</u>. Each director, each member of any committee designated by the Board, and each officer of the Corporation shall, in the performance of such individual's duties, be fully protected in relying in good faith upon records of the Corporation and upon such information, opinions, reports or statements presented to the Corporation by any of the Corporation's officers or employees, or committees of the Board, or by any other person as to matters the member reasonably believes are within such other person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 <u>Time Periods</u>. In applying any provision of these Bylaws which require that an act be done or not done a specified number of days prior to an event or that an act be done during a period of a specified number of days prior to an event, calendar days shall be used, the day of the doing of the act shall be excluded, and the day of the event shall be included.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <u>Electronic Signatures</u>. In addition to the provisions for use of electronic signatures elsewhere specifically authorized in these Bylaws, electronic signatures of any officer or officers of the Corporation may be used whenever and as authorized by the Board or a committee thereof.

------

**ARTICLE VII** 

**AMENDMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>By the Board</u>. Except as otherwise set forth in these Bylaws, these Bylaws may be altered, amended or repealed or new Bylaws may be adopted only in accordance with Article IX of the Certificate of Incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>By the Stockholders</u>. Except as otherwise set forth in these Bylaws, and subject to the Certificate of Incorporation, these Bylaws may be altered, amended or repealed or new Bylaws may be adopted by the affirmative vote of the holders of at least sixty-six and two-thirds percent (66-2/3%) of the voting power of all of the shares of capital stock of the Corporation issued and outstanding and entitled to vote generally in any election of directors, voting together as a single class. Such vote may be held at any annual meeting of stockholders, or at any special meeting of stockholders provided that notice of such alteration, amendment, repeal or adoption of new Bylaws shall have been stated in the notice of such special meeting.

**ARTICLE VIII** 

**INDEMNIFICATION OF DIRECTORS AND OFFICERS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Right to Indemnification</u>. Each person who was or is made a party or is threatened to be made a party to or is involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative ("proceeding"), by reason of the fact that such person or a person of whom he or she is the legal representative, is or was a director or officer of the Corporation or is or was serving at the request of the Corporation as a director or officer of another Corporation, or as a controlling person of a partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, whether the basis of such proceeding is alleged action in an official capacity as a director or officer, or in any other capacity while serving as a director or officer, shall be indemnified and held harmless by the Corporation to the fullest extent authorized by the DGCL, as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the Corporation to provide broader indemnification rights than such law permitted the Corporation to provide prior to such amendment) against all expenses, liability and loss reasonably incurred or suffered by such person in connection therewith and such indemnification shall continue as to a person who has ceased to be a director or officer and shall inure to the benefit of his heirs, executors and administrators; provided, that except as provided in <u>Section</u> <u>8.2</u> of this <u>Article VIII</u>, the Corporation shall indemnify any such person seeking indemnity in connection with a proceeding (or part thereof) initiated by such person only if (a) such indemnification is expressly required to be made by law, (b) the proceeding (or part thereof) was authorized by the Board, (c) such indemnification is provided by the Corporation, in its sole discretion, pursuant to the powers vested in the Corporation under the DGCL, or (d) the proceeding (or part thereof) is brought to establish or enforce a right to indemnification or advancement under an indemnity agreement or any other statute or law or otherwise as required under Section 145 of the DGCL. The rights hereunder shall be contract rights and shall include the right to be paid reasonable expenses and attorneys' fees incurred in defending any such proceeding in advance of its final disposition; provided, that the payment of such expenses incurred by a director or officer of the Corporation in his capacity as a director or officer (and not in any other capacity in which service was or is tendered by such person while a director or officer, including, without limitation, service to an employee benefit plan) in advance

------

of the final disposition of such proceeding, shall be made only upon delivery to the Corporation of an undertaking, by or on behalf of such director or officer, to repay all amounts so advanced if it should be determined ultimately by final judicial decision from which there is no further right to appeal that such director or officer is not entitled to be indemnified under this section or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Right of Claimant to Bring Suit</u>. If a claim under <u>Section</u> <u>8.1</u> is not paid in full by the Corporation within sixty (60) days after a written claim has been received by the Corporation, or twenty (20) days in the case of a claim for advancement of expenses, the claimant may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim and, if such suit is not frivolous or brought in bad faith, the claimant shall be entitled to be paid also the expense of prosecuting such claim. It shall be a defense to any such action (other than an action brought to enforce a claim for expenses incurred in defending any proceeding in advance of its final disposition where the required undertaking, if any, has been tendered to this Corporation) that the claimant has not met the standards of conduct which make it permissible under the DGCL for the Corporation to indemnify the claimant for the amount claimed. Neither the failure of the Corporation (including its Board, independent legal counsel, or its stockholders) to have made a determination prior to the commencement of such action that indemnification of the claimant is proper in the circumstances because the claimant has met the applicable standard of conduct set forth in the DGCL, nor an actual determination by the Corporation (including its Board, independent legal counsel or its stockholders) that the claimant has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that claimant has not met the applicable standard of conduct. In any suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the Corporation shall be entitled to recover such expenses upon a final judicial decision from which there is no further right to appeal that the indemnitee has not met any applicable standard for indemnification set forth in the DGCL. In any suit brought by the indemnitee to enforce a right to indemnification or to an advancement of expenses hereunder, or brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the indemnitee is not entitled to be indemnified, or to such advancement of expenses, shall be on the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Indemnification of Employees and Agents</u>. The Corporation may, to the extent authorized from time to time by the Board, grant rights to indemnification, and to the advancement of related expenses, to any employee or agent of the Corporation to the fullest extent of the provisions of this <u>Article VIII</u> with respect to the indemnification of and advancement of expenses to directors and officers of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <u>Non-Exclusivity of Rights</u>. The rights conferred on any person in this <u>Article VIII</u> shall not be exclusive of any other right which such persons may have or hereafter acquire under any statute, provision of the Certificate of Incorporation, Bylaw, agreement, vote of stockholders or disinterested directors or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <u>Indemnification Contracts</u>. The Board is authorized to enter into a contract with any director, officer, employee or agent of the Corporation, or any person serving at the request of the Corporation as a director, officer, employee or agent of another Corporation, partnership, joint venture, trust or other enterprise, including employee benefit plans, providing for indemnification rights equivalent to or, if the Board so determines, greater than, those provided for in this <u>Article VIII</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 <u>Insurance</u>. The Corporation shall maintain insurance to the extent reasonably available, at its expense, to protect itself and any such director, officer, employee or agent of the Corporation or another Corporation, partnership, joint venture, trust or other enterprise against any such expense, liability or loss, whether or not the Corporation would have the power to indemnify such person against such expense, liability or loss under the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 <u>Effect of Amendment</u>. Any amendment, repeal or modification of any provision of this <u>Article VIII</u> shall not adversely affect any right or protection of an indemnitee or his successor in respect of any act or omission occurring prior to such amendment, repeal or modification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 <u>Reliance</u>. Persons who after the date of the adoption of this provision become or remain directors or officers of the Corporation or who, while a director or officer of the Corporation, become or remain a director, officer, employee or agent of a subsidiary, shall be conclusively presumed to have relied on the rights to indemnity, advance of expenses and other rights contained in this <u>Article VIII</u> in entering into or continuing such service. The rights to indemnification and to the advance of expenses conferred in this <u>Article VIII</u> shall apply to claims made against an indemnitee arising out of acts or omissions which occurred or occur both prior and subsequent to the adoption hereof.

\* \* \*

## Exhibit 4.1

**Exhibit 4.1** 

***Executed Copy*** 

**CREDIT AGREEMENT** 

dated as of February 18, 2025

by and among

SAFEPOINT HOLDINGS, INC.

as the Borrower,

CERTAIN SUBSIDIARIES OF THE BORROWER FROM TIME TO TIME PARTY HERETO,

as Guarantors,

THE LENDERS FROM TIME TO TIME PARTY HERETO,

and

REGIONS BANK,

as the Administrative Agent, the Collateral Agent, the Issuing Bank and the Swingline Lender

TEXAS CAPITAL BANK,

as Syndication Agent

SYNOVUS BANK,

as Documentation Agent

REGIONS CAPITAL MARKETS, a division of Regions Bank,

TCBI SECURITIES, INC.,

and

SYNOVUS BANK,

as Joint Lead Arrangers and Joint Bookrunners

Cover Page to Credit Agreement (Safepoint Holdings, Inc.)

------

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
|  |  | *Page* |
|  **Article 1 — DEFINITIONS AND INTERPRETATION** | **Article 1 — DEFINITIONS AND INTERPRETATION** | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.1 | Definitions | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.2 | Accounting Terms | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.3 | Rules of Interpretation | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.4 | Rules of Interpretation with Respect to Regulated Subsidiaries | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.5 | Classifications of Loans and Borrowings | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.6 | Cashless Rollovers | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.7 | Interest Rate Disclosure | 54 |
|  **Article 2 — LOANS AND LETTERS OF CREDIT** | **Article 2 — LOANS AND LETTERS OF CREDIT** | **55** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.1 | Revolving Loans and Term Loans | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.2 | Swingline Loans | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.3 | Issuances of Letters of Credit and Purchase of Participations Therein | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.4 | Pro Rata Shares; Availability of Funds | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.5 | Evidence of Debt; Register; Lenders' Books and Records; Notes | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.6 | Scheduled Principal Payments | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.7 | Interest on Loans | 68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.8 | Conversion / Continuation | 70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.9 | Default Rate of Interest | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.10 | Fees | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.11 | Prepayments/Commitment Reductions | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.12 | Application of Prepayments | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.13 | General Provisions Regarding Payments | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.14 | Sharing of Payments by Lenders | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.15 | Cash Collateral | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.16 | Defaulting Lenders | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.17 | Removal or Replacement of Lenders | 81 |
|  **Article 3 — YIELD PROTECTION** | **Article 3 — YIELD PROTECTION** | **82** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.1 | Making or Maintaining SOFR Loans; Benchmark Replacement | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.2 | Increased Costs | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.3 | Taxes | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.4 | Mitigation Obligations; Designation of a Different Lending Office | 90 |
|  **Article 4 — GUARANTY** | **Article 4 — GUARANTY** | **90** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.1 | The Guaranty | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.2 | Obligations Unconditional | 91 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.3 | Reinstatement | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.4 | Certain Additional Waivers | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.5 | Remedies | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.6 | Rights of Contribution | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.7 | Guarantee of Payment; Continuing Guarantee | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.8 | Keepwell | 92 |
|  **Article 5 — CONDITIONS PRECEDENT** | **Article 5 — CONDITIONS PRECEDENT** | **93** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.1 | Conditions Precedent to Initial Credit Extensions | 93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.2 | Conditions to Each Credit Extension | 95 |

---

**Table of Contents** to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | | |
|:---|:---|:---|
|  **Article 6 — REPRESENTATIONS AND WARRANTIES** | **Article 6 — REPRESENTATIONS AND WARRANTIES** | **96** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.1 | Organization; Requisite Power and Authority; Qualification | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.2 | Equity Interests and Ownership | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.3 | Due Authorization | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.4 | No Conflict | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.5 | Governmental Consents | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.6 | Binding Obligation | 98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.7 | Financial Statements | 98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.8 | No Material Adverse Effect; No Default or Event of Default | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.9 | Tax Matters | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.10 | Properties | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.11 | Environmental Matters | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.12 | No Defaults | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.13 | No Litigation or other Adverse Proceedings | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.14 | Information Regarding Credit Parties, Subsidiaries and Other Regulated Entities | 101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.15 | Governmental Regulation | 101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.16 | Employee Matters | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.17 | Pension Plans | 103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.18 | Solvency | 103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.19 | Compliance with Laws | 103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.20 | Disclosure | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.21 | Insurance | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.22 | Pledge and Security Agreement | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.23 | Mortgages | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.24 | No Casualty | 105 |
|  **Article 7 — AFFIRMATIVE COVENANTS** | **Article 7 — AFFIRMATIVE COVENANTS** | **105** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.1 | Financial Statements and Other Reports | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.2 | Existence | 109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.3 | Payment of Taxes and Claims | 109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.4 | Maintenance of Properties | 109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.5 | Insurance | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.6 | Inspections | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.7 | Lenders Meetings | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.8 | Compliance with Laws and Material Contracts | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.9 | Use of Proceeds | 111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.10 | Environmental Matters | 111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.11 | Additional Real Estate Assets | 111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.12 | Pledge of Personal Property Assets | 112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.13 | Books and Records | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.14 | Additional Subsidiaries | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.15 | Maintenance of Reinsurance | 114 |
|  **Article 8 — NEGATIVE COVENANTS** | **Article 8 — NEGATIVE COVENANTS** | **114** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.1 | Indebtedness | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.2 | Liens | 116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.3 | No Further Negative Pledges | 118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.4 | Restricted Payments | 118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.5 | Burdensome Agreements | 119 |

---

ii

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.6 | Investments | 120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.7 | Use of Proceeds | 121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.8 | Financial Covenants | 122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.9 | Fundamental Changes; Disposition of Assets; Acquisitions | 122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.10 | Disposal of Subsidiary Interests | 123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.11 | Sales and Lease-Backs | 123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.12 | Transactions with Affiliates and Insiders | 123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.13 | Modification or Payment of Certain Funded Debt | 124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.14 | Conduct of Business | 124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.15 | Fiscal Year | 124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.16 | Amendments to Organizational Agreements / Material Agreements | 125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.17 | Accounting and Reporting Changes | 125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.18 | Statutory Capitalization / Risk-Based Capital Ratio | 125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.19 | Holdco Restrictions | 125 |
|  **Article 9 — EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS** | **Article 9 — EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS** | **126** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.1 | Events of Default | 126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.2 | Remedies | 130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.3 | Application of Funds | 131 |
|  **Article 10 — AGENCY** | **Article 10 — AGENCY** | **133** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.1 | Appointment and Authority | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.2 | Rights as a Lender | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.3 | Exculpatory Provisions | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.4 | Reliance by Administrative Agent | 135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.5 | Delegation of Duties | 136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.6 | Resignation of Administrative Agent | 136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.7 | Non-Reliance on Administrative Agent and Other Lenders | 137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.8 | No Other Duties, etc | 137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.9 | Administrative Agent May File Proofs of Claim | 137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.10 | Collateral and Guaranty Matters | 138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.11 | Erroneous Payments | 139 |
|  **Article 11 — MISCELLANEOUS** | **Article 11 — MISCELLANEOUS** | **141** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.1 | Notices; Effectiveness; Electronic Communications | 141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.2 | Expenses; Indemnity; Damage Waiver | 143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.3 | Set-Off | 145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.4 | Amendments and Waivers | 146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.5 | Successors and Assigns | 148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.6 | Independence of Covenants | 153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.7 | Survival of Representations, Warranties and Agreements | 153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.8 | No Waiver; Remedies Cumulative | 153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.9 | Marshalling; Payments Set Aside | 153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.10 | Severability | 153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.11 | Obligations Several; Independent Nature of Lenders' Rights | 153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.12 | Headings | 154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.13 | Applicable Laws | 154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.14 | WAIVER OF JURY TRIAL | 154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.15 | Confidentiality | 154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.16 | Usury Savings Clause | 156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.17 | Electronic Execution; Counterparts | 157 |

---

iii

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.18 | No Advisory or Fiduciary Relationship | 157.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.19 | Integration; Effectiveness | 158.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.20 | USA PATRIOT Act | 158.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.21 | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 158.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.22 | Certain ERISA Matters | 158.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.23 | Acknowledgment Regarding any Supported QFCs | 159.0 |

---

iv

------

---

| | |
|:---|:---|
|  <u>Appendices</u>: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appendix A | Lenders, Commitments and Commitment Percentages |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appendix B | Notice Information |
|  <u>Schedules</u>: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 6.1 | Organization; Requisite Power and Authority; Qualification |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 6.2 | Equity Interests and Ownership |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 6.10(b) | Real Estate Assets |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 6.14 | Names, Jurisdictions and Tax Identification Numbers |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 6.21 | Insurance Coverage |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 8.1 | Existing Indebtedness |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 8.2 | Existing Liens |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 8.6 | Existing Investments |
|  <u>Exhibits</u>: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 1.1 | [*Form of*] Secured Party Designation Notice |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 2.1 | [*Form of*] Funding Notice |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 2.3 | [*Form of*] Issuance Notice |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 2.5 | [*Form of*] Note |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 2.8 | [*Form of*] Conversion / Continuation Notice |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 3.3 | [*Forms of*] U.S. Tax Compliance Certificates (Forms 1 – 4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 7.1(c) | [*Form of*] Compliance Certificate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 7.14 | [*Form of*] Guarantor Joinder Agreement |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 11.5 | [*Form of*] Assignment Agreement |

---

v

------

**CREDIT AGREEMENT** 

This CREDIT AGREEMENT (as amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time, this "*<u>Agreement</u>*"), dated as of February 18, 2025 (the "*<u>Closing Date</u>*"), is entered into by and among SAFEPOINT HOLDINGS, INC., a Florida corporation (the "*<u>Borrower</u>*"), certain Subsidiaries of the Borrower from time to time party hereto, as Guarantors, the Lenders from time to time party hereto, and REGIONS BANK, as administrative agent (in such capacity, together with its successors and permitted assigns in such capacity, the "*<u>Administrative Agent</u>*") and collateral agent (in such capacity, together with its successors and permitted assigns in such capacity, the "*<u>Collateral Agent</u>*").

R E C I T A L S

WHEREAS, the Borrower has requested that the Lenders provide, in its favor, (i) a Twenty-Five Million Dollar ($25,000,000) revolving credit facility, (ii) a term loan, to be advanced in a single installment on the Closing Date, in an original principal amount of One-Hundred Million Dollars ($100,000,000), and (iii) a delayed draw term loan, to be advanced in up to five (5) separate installments during the DDTL Availability Period (here and hereafter as such term is defined in <u>Section</u> <u>1.1</u>), in an aggregate original principal amount (for all such installments, taken together) of up to Fifteen Million Dollars ($15,000,000); and

WHEREAS, the Lenders have agreed to make the requested credit facilities available to the Borrower, in each case, on the terms, and subject to the conditions, set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements contained herein, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, each of the parties to this Agreement hereby covenant and agree as follows:

A G R E E M E N T

**Article 1** 

**<u>DEFINITIONS AND INTERPRETATION</u>**

Section 1.1 <u>Definition</u><u>s</u>. The following terms used herein, including in the introductory paragraph, recitals, appendices, exhibits and schedules hereto, shall have the following meanings:

"*<u>Acquisition</u>*" shall mean, with respect to any Person, the acquisition by such Person, in a single transaction or in a series of related transactions, of: (a) all, or any substantial portion, of the Property of another Person, or any division, line of business or other business unit of another Person; or (b) *at least* a majority of the Voting Stock of another Person, in each case, whether or not involving a merger or consolidation with such other Person and whether for cash, property, services, assumption of Indebtedness, securities or otherwise.

"*<u>Additional Incremental Lender</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.1(d)(i)(D</u>).

"*<u>Administrative Agent</u>*" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"*<u>Administrative Questionnaire</u>*" shall mean an administrative questionnaire provided by the Lenders in a form supplied by the Administrative Agent.

Cover Page to Credit Agreement (Safepoint Holdings, Inc.)

------

"*<u>Adverse Proceeding</u>*" shall mean any action, suit, proceeding (whether administrative, judicial or otherwise), governmental investigation or arbitration (whether or not purportedly on behalf of any Credit Party, any Subsidiary or any other Regulated Entity) at law or in equity, or before or by any Governmental Authority, whether pending, threatened in writing against any Credit Party, any Subsidiary or any other Regulated Entity or any material Property of any Credit Party, any Subsidiary or any other Regulated Entity.

"*<u>Affected Financial Institution</u>*" shall mean: (a) any EEA Financial Institution; or (b) any UK Financial Institution.

"*<u>Affected Lender</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.1(b</u>).

"*<u>Affected Loans</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.1(b</u>).

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

"*<u>Agent</u>*" shall mean, collectively, the Administrative Agent and the Collateral Agent.

"*<u>Aggregate DDTL Commitment Amount</u>*" shall mean, at any time, the amount of the Aggregate DDTL Commitments in effect at such time. On the Closing Date as of the time of initial effectiveness of this Agreement, the Aggregate DDTL Commitment Amount is Fifteen Million Dollars ($15,000,000).

"*<u>Aggregate DDTL Commitments</u>*" shall mean, at any time, the DDTL Commitments of all of the Lenders in effect at such time, taken together.

"*<u>Aggregate Revolving Commitment Amount</u>*" shall mean, at any time, the amount of the Aggregate Revolving Commitments in effect at such time. On the Closing Date as of the time of initial effectiveness of this Agreement, the Aggregate Revolving Commitment Amount is Twenty-Five Million Dollars ($25,000,000).

"*<u>Aggregate Revolving Commitments</u>*" shall mean, at any time, the Revolving Commitments of all of the Lenders in effect at such time, taken together.

"*<u>Aggregate Revolving Credit Exposure</u>*" shall mean, at any time, the *sum of* the Revolving Credit Exposures of all of the Lenders at such time, taken together.

"*<u>Aggregate Term Loan A Commitment Amount</u>*" shall mean, at any time, the amount of the Aggregate Term Loan A Commitments in effect at such time. On the Closing Date as of the time of initial effectiveness of this Agreement (but *prior* to giving effect to the Borrowing of the Term Loan A on the Closing Date), the Aggregate Term Loan A Commitment Amount is One-Hundred Million Dollars ($100,000,000).

"*<u>Aggregate Term Loan A Commitments</u>*" shall mean, at any time, the Term Loan A Commitments of all of the Lenders in effect at such time, taken together.

"*<u>Agreement</u>*" shall have the meaning specified for such term in the introductory paragraph of this Agreement.

"*<u>All</u>*<u>-</u>*<u>In Yield</u>*" shall mean, as to any Indebtedness, the yield thereof (without giving effect to any underlying fluctuations in the underlying base rate), whether in the form of interest rate, margin, original issue discount, upfront fees, a SOFR or Base Rate floor (or any floor on any SOFR-Based Rate or any other interest rate that is derived from SOFR, the SOFR Reference Rate for an applicable tenor or the Base Rate), or otherwise, in each case of the foregoing, incurred or payable by the Borrower generally to all of the lenders of such Indebtedness; <u>provided</u>, <u>that</u>, (i) original issue discount and upfront fees shall be equated to interest rate assuming a four (4) year life to maturity (or, if less, the stated life to maturity at the time of incurrence of the applicable Indebtedness), (ii) "*All*-*In Yield*" shall *not* include customary arrangement fees, structuring fees,

------

commitment fees, underwriting fees, amendment fees and similar fees (regardless of whether paid, in whole or in part, to any or all of lenders of such Indebtedness), or other fees *not* paid generally to all lenders of such Indebtedness, and (iii) if such Indebtedness includes a SOFR or Base Rate floor (or any floor on any SOFR-Based Rate or any other interest rate that is derived from SOFR, the SOFR Reference Rate for an applicable tenor, or the Base Rate) that is *greater than* the SOFR or Base Rate floor (or any floor on any SOFR-Based Rate or any other interest rate that is derived from SOFR, the SOFR Reference Rate for an applicable tenor, or the Base Rate) applicable to any existing Class of Term Loans, such differential between interest rate floors shall be included in the calculation of All-In Yield, but only to the extent that an increase in the interest rate floor applicable to such existing Class of Term Loans would cause an increase in the interest rate then in effect thereunder, and in such case, the interest rate floor (but *not* the Applicable Margin) applicable to such existing Class of Term Loans shall be increased to the extent of such differential between interest rate floors.

"*<u>ALTA</u>*" shall mean the American Land Title Association.

"*<u>Annual Financial Statements</u>*" shall have the meaning specified for such term in <u>Section</u> <u>5.1(f)(ii</u>).

"*<u>Anti</u>*<u>-</u>*<u>Corruption Laws</u>*" shall mean the Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd–1, *et seq*.*,* the UK Bribery Act of 2010, and all other laws, rules, and regulations of any jurisdiction applicable to any Credit Party or any of its Affiliates from time to time concerning or relating to bribery or corruption.

"*<u>Applicable Laws</u>*" shall mean all applicable laws, including all applicable provisions of constitutions, statutes, rules, ordinances, regulations and orders of all Governmental Authorities and all orders, rulings, writs and decrees of all courts, tribunals and arbitrators.

"*<u>Applicable Margin</u>*" shall mean, except as otherwise set forth in (A) any Incremental Facility Agreement with respect to any Incremental Facility established thereunder, or (B) any Auto Borrow Agreement with respect to any Swingline Loan advanced pursuant to an Auto Borrow Agreement then in effect, as of any date of determination, (a) during the period from the Closing Date through, and including, the date that is two (2) Business Days immediately following the date on which the financial statements and related Compliance Certificate are delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>) and <u>Section</u> <u>7.1(c</u>), respectively, for the Fiscal Quarter ending March 31, 2025, the applicable percentage per annum based upon Pricing Level III as set forth in the table immediately below, and (b) thereafter, the applicable percentage per annum determined by reference to the table set forth immediately below, using the Consolidated Leverage Ratio as set forth in the Compliance Certificate most recently delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(c</u>), with any increase or decrease in the Applicable Margin resulting from a change in the Consolidated Leverage Ratio becoming effective on the date that is two (2) Business Days immediately following the date on which such Compliance Certificate is delivered.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Pricing Level** | **Consolidated Leverage Ratio** | **SOFR Loans and<br>Letter of Credit<br>Fee** | **Base Rate Loans** | **Commitment<br>Fee** |
|  I | < 1.25 to 1 | 3.25% | 2.25% | 0.400% |
|  II | < 1.75 to 1.0, *but*<br> ≥ 1.25 to 1.0 | 3.50% | 2.50% | 0.450% |
|  III | ≥ 1.75 to 1 | 3.75% | 2.75% | 0.500% |

---

Notwithstanding anything to the contrary in the foregoing: (i) if, at any time, a Compliance Certificate and/or the accompanying financial statements are *not* delivered when due in accordance herewith, then Pricing Level III as set forth in the table immediately above shall apply as of the first (1<sup>st</sup>) Business Day after the date on which such Compliance Certificate and accompanying financial statements were required to have been delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>) and <u>Section</u> <u>7.1(c</u>), respectively, and such Pricing Level shall remain in effect until the date on which such Compliance Certificate and such accompanying financial statements are delivered to the Administrative Agent; and (ii) the determination of the Applicable Margin for any period shall be subject to the provisions of <u>Section</u> <u>2.7(e</u>). The Applicable Margin with respect to any Incremental Term Loan shall be as provided in the Incremental Facility Agreement establishing such Incremental Term Loan.

------

"*<u>Approved Fund</u>*" shall mean any Fund that is administered or managed by: (a) a Lender; (b) an Affiliate of a Lender; or (c) an entity, or an Affiliate of an entity, that administers or manages a Lender.

"*<u>Arrangers</u>*" shall mean each of Regions Capital Markets, a division of Regions Bank, TCBI Securities, Inc., and Synovus Bank, in their respective capacities as joint lead arranger and joint bookrunner under this Agreement.

"*<u>Asset Sale</u>*" shall mean a sale, lease, Sale and Leaseback Transaction, assignment, conveyance, exclusive license (as licensor), Securitization Transaction, transfer or other disposition to, or any exchange of Property with, any Person, in one transaction or a series of transactions, of any Credit Party, any Subsidiary or any other Regulated Entity or of all, or any part, of any of their respective businesses or Properties of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, created, leased or licensed, including the Equity Interests in any Subsidiary, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) dispositions of surplus, obsolete or worn-out Property, or Property no longer used or useful in the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity, whether now owned or hereafter acquired, in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) dispositions of inventory sold, and Intellectual Property licensed, in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) dispositions of accounts or payment intangibles (each as defined in the UCC) resulting from the compromise or settlement thereof in the ordinary course of business for *less than* the full amount thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) dispositions of cash and Cash Equivalents in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) licenses, sublicenses, leases or subleases granted to any third parties in arm's-length commercial transactions in the ordinary course of business that do *not* interfere, in any material respect, with the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) dispositions of Property held by Regulated Entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the termination or surrender of any real property lease of any Credit Party, any Subsidiary or any other Regulated Entity in the ordinary course of business, so long as the loss of such leased location could *not* be reasonably expected to have an adverse and material effect on any of the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the abandonment or other disposition of Intellectual Property, whether now or hereafter owned or leased or acquired in connection with an Acquisition or other permitted Investment, that is, in the reasonable business judgment of the Borrower, no longer economically practicable or commercially desirable to maintain or used or useful in the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) sales, transfers, and other dispositions permitted by <u>Section</u> <u>8.9</u> (other than as permitted by <u>Section</u> <u>8.9(b</u>));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any issuance of Equity Interests in the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) to the extent constituting a sale, transfer, lease, or other disposition of an asset, any Restricted Payment made pursuant to <u>Section</u> <u>8.4</u>;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) sales, transfers, or other dispositions of Investments to the extent permitted under <u>Section</u> <u>8.6</u> in joint ventures to the extent required by, or made pursuant to customary buy/sell arrangements between, the parties set forth in joint venture arrangements and similar binding agreements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) dispositions of Property to the extent that: (i) such Property is exchanged for credit against the purchase price of substantially similar replacement Property; or (ii) the proceeds of such disposition are promptly applied to the purchase price of substantially similar replacement Property.

"*<u>Assignment Agreement</u>*" shall mean an assignment agreement entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by <u>Section</u> <u>11.5(b)(iii</u>)) and accepted by the Administrative Agent, in substantially the form of <u>Exhibit 11.5</u> or any other form (including electronic documentation generated by MarkitClear or other electronic platform) approved by the Administrative Agent.

"*<u>Attributable Principal Amount</u>*" shall mean, in the case of: (a) Capital Leases, the amount of Capital Lease obligations determined in accordance with GAAP; (b) Synthetic Leases, an amount determined by capitalization of the remaining lease payments thereunder as if it were a Capital Lease determined in accordance with GAAP; (c) Securitization Transactions, the outstanding principal amount of such financing, after taking into account reserve amounts and making appropriate adjustments, determined by the Administrative Agent in its reasonable judgment; and (d) Sale and Leaseback Transactions, the present value (discounted in accordance with GAAP at the debt rate implied in the applicable lease) of the obligations of the lessee for rental payments during the term of such lease.

"*<u>Authorized Officer</u>*" shall mean, as applied to any Person, any individual holding the position of chairman of the board (if an officer), chief executive officer, president or one (1) of its vice presidents (or the equivalent thereof), chief financial officer or treasurer and, *solely* for purposes of making the certifications required under <u>Section</u> <u>5.1(b)(ii</u>) and <u>Section</u> <u>5.1(c</u>), any secretary or assistant secretary.

"*<u>Auto Borrow Agreement</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.2(b)(vi</u>).

"*<u>Automatic Acceleration Event of Default</u>* shall mean an Event of Default pursuant to <u>Section</u> <u>9.1(f</u>) or <u>Section</u> <u>9.1(g</u>).

"*<u>Available Tenor</u>*" shall mean, as of any date of determination and with respect to the then-current Benchmark, as applicable, any tenor for such Benchmark or any payment period for interest calculated with reference to such Benchmark, as applicable, that is, or may be, used for determining the length of any interest period (including any Interest Period) pursuant to this Agreement as of such date of determination.

"*<u>Bail</u>*<u>-</u>*<u>In Action</u>*" shall mean the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"*<u>Bail</u>*<u>-</u>*<u>In Legislation</u>*" shall mean: (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing Law for such EEA Member Country from time to time which is described in the applicable EU Bail-In Legislation Schedule; and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act of 2009 (as amended from time to time), and any other Law applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions, or any affiliates of any of the foregoing (other than through liquidation, administration, or other insolvency proceedings).

"*<u>Bankruptcy Code</u>*" shall mean Title 11 of the United States Code entitled "*Bankruptcy*," as now and hereafter in effect, or any successor statute.

------

"*<u>Base Rate</u>*" shall mean, for any date of determination, a rate per annum equal to the *highest* of (a) the rate of interest that Regions announces from time to time as its prime lending rate, as in effect from time to time (the "*<u>Prime Rate</u>*"), (b) the Federal Funds Rate, as in effect from time to time, *plus* one-half of one percent (0.50%) per annum, (c) Term SOFR in effect on such day for a forward-looking Interest Period of one (1) month commencing on such day, *plus* one percent (1.00%) per annum (with any change(s) in any of the rates described in the foregoing <u>clauses (a</u>) through (<u>c</u>) to be effective as of the date of any such change(s) in such rates), and (d) the Floor. The Prime Rate is a reference rate and does *not* necessarily represent the lowest or best rate actually charged to any customer. The Administrative Agent and the Lenders may make commercial loans, or other loans, at rates of interest at, above, or below the Prime Rate. Any change(s) to the Base Rate due to a change in the Prime Rate, the Federal Funds Rate and/or Term SOFR, as the case may be, will be deemed to be effective from, and including, the date of effectiveness of such change(s) to the Prime Rate, the Federal Funds Rate and/or Term SOFR. For the avoidance of doubt and notwithstanding anything to the contrary in the foregoing, if, at any time, the Base Rate is *less than* the Floor, then the Base Rate shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents.

"*<u>Base Rate Borrowing</u>*" shall mean a Borrowing, the Loans in respect of which bear interest at a rate determined by reference to the Base Rate (including, for the avoidance of doubt, pursuant to clause (c) of the definition of "*Base Rate*" above).

"*<u>Base Rate Loan</u>*" shall mean a Loan bearing interest at a rate determined by reference to the Base Rate (including, for the avoidance of doubt, pursuant to clause (c) of the definition of "*Base Rate*" above).

"*<u>Benchmark</u>*" shall mean, as of the Closing Date, the SOFR Reference Rate for any applicable tenor; <u>provided</u>, <u>that</u>, if any Benchmark Replacement has been incorporated into this Agreement after the Closing Date pursuant to <u>Section</u> <u>3.1</u>, then "*Benchmark*" shall mean the applicable Benchmark Replacement.

"*<u>Benchmark Illegality</u>* <u>/</u> *<u>Impracticability Event</u>*" shall mean the occurrence of one (1) or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the making, maintaining and/or continuation of the then-current Benchmark by any Lender shall have become unlawful as a result of compliance by such Lender in good faith with any law, treaty, governmental rule, regulation, guideline or order (or would conflict with any such treaty, governmental rule, regulation, guideline or order *not* having the force of law, even though the failure to comply therewith would *not* be unlawful);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any Benchmark, any successor administrator of the published screen rate for such Benchmark, or any Governmental Authority having jurisdiction over the Administrative Agent or the administrator of such Benchmark, shall have made a public statement establishing a specific date (whether expressly or by virtue of such public statement) after which an Available Tenor of such Benchmark, or the published screen rate for such Benchmark, shall or will no longer be representative or made available, or otherwise used for determining the interest rate of loans, or shall or will otherwise cease; <u>provided</u>, <u>that</u>, at the time of such statement, there is no successor administrator that is satisfactory to the Administrative Agent that will continue to provide such representative interest periods of such Benchmark after such specific date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the making, maintaining and/or continuation of the then-current Benchmark by any Lender has become impracticable, as a result of contingencies occurring after the Closing Date that materially and adversely affect the ability of a Lender to make, maintain and/or continue its Loans at the then-current Benchmark (including, without limitation, because the published screen rate for such Benchmark in a relevant tenor is *not* available or published on a current basis and such circumstances are unlikely to be temporary); or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) with respect to any Lender, the then-current Benchmark (including any related mathematical or other adjustments thereto) does or will *not* adequately and fairly reflect the cost to such Lender of making, funding and/or maintaining its Loans at the then-current Benchmark.

For the avoidance of doubt, a "*Benchmark Illegality* / *Impracticability Event*" shall be deemed to have occurred, with respect to any Benchmark, if a public statement or publication of information as described above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"*<u>Benchmark Replacement</u>*" shall mean Daily Simple SOFR for any payment period for interest calculated that can be determined by the Administrative Agent, without any amendment to, or further action or consent of any other party to, this Agreement or any other Credit Document.

"*<u>Benchmark Replacement Adjustment</u>*" shall mean, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or equal to zero), that has been selected by the Administrative Agent and the Borrower, giving due consideration to: (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body; or (b) any evolving, or then-prevailing, market convention for determining a spread adjustment, or a method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

"*<u>Benchmark Replacement Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.1(g)(i</u>).

"*<u>Beneficial Ownership Certification</u>*" shall have the meaning specified for such term in <u>Section</u> <u>5.1(k</u>).

"*<u>Benefit Plan</u>*" shall mean any of: (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA; (b) a "plan" as defined in, and subject to, Section 4975 of the Internal Revenue Code; or (c) any Person whose assets include (for purposes of ERISA Section 3(42), or otherwise for purposes of Title I of ERISA or Section 4975 of the Internal Revenue Code) the assets of any such "employee benefit plan" or "plan".

"*<u>BHC Act Affiliate</u>*" of a party shall mean an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. § 1841(k)) of such party.

"*<u>Borrower</u>*" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"*<u>Borrowing</u>*" shall mean, as the context may require, a borrowing consisting of: (a) Loans of the same Class and Type, made, converted or continued on the same date, and, in the case of SOFR Loans, as to which a single Interest Period is in effect; or (b) a Swingline Loan.

"*<u>Business Day</u>*" shall mean any day, other than a Saturday, a Sunday, or any other day that is a legal holiday under the laws of the state of New York or is a day on which banking institutions located in such state are authorized, or are required by Applicable Law or any Governmental Act, to close; <u>provided</u>, <u>that</u>, with respect to notices and determinations in connection with, and payments of principal and/or interest on, SOFR Loans, such day is also a U.S. Government Securities Business Day.

"*<u>Capital Expenditures</u>*" shall mean, with respect to any Person for any period of measurement, the *sum of* (without duplication) (a) the additions to property, plant and equipment and other capital expenditures of such Person that are (or would be required to be) set forth on a consolidated statement of cash flows of such Person for such period, prepared in accordance with GAAP, *plus* (b) the Attributable Principal Amount of Capital

------

Leases incurred by such Person during such period, but *excluding* any such expenditures to the extent that such expenditures are: (i) made with the Net Cash Proceeds of any Asset Sale or Involuntary Disposition to the extent that such expenditures are used to purchase Property that is the same as, or substantially functionally equivalent to, the Property subject to such Asset Sale or Involuntary Disposition (and including, for purposes of clarity, the purchase price of replacement Property that is purchased, to the extent that the gross amount of such purchase price is reduced by the credit granted by the seller of such replacement Property for such existing Property being traded in at such time); or (ii) part of the aggregate amounts payable in connection with, or constitute other consideration for, any Permitted Acquisition or other Investment permitted under this Agreement (whether consummated during, or prior to, such period of measurement).

"*<u>Capital Lease</u>*" shall mean, as applied to any Person, any lease of any Property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person.

"*<u>Captive Reinsurance Companies</u>*" shall mean, collectively: (a) each of (i) Bobcat Re Ltd., (ii) Canal Re Ltd., (iii) Pompano Re Ltd., and (iv) Tarpon Ltd.; and (b) any controlled Affiliate of any Credit Party that is primarily engaged in the provision of reinsurance services to other Credit Parties, Subsidiaries and/or Regulated Entities.

"*<u>Cash Collateralize</u>*" shall mean to pledge and deposit with, or deliver to, the Administrative Agent, the Collateral Agent, the Issuing Bank or the Swingline Lender, as applicable, as collateral for the Letter of Credit Obligations or Swingline Loans, as applicable, or obligations of Lenders to fund participations in respect thereof, cash or deposit account balances or, if the Administrative Agent, the Collateral Agent, the Issuing Bank or Swingline Lender, as applicable, may agree in their sole discretion, other credit support, in each case, pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent, the Collateral Agent, the Issuing Bank and/or the Swingline Lender, as applicable. "*Cash Collateral*" shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.

"*<u>Cash Equivalents</u>*" shall mean, as of any date of determination, any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) marketable securities (i) issued or directly and unconditionally guaranteed as to interest and principal by the United States government, or (ii) issued by any agency of the United States the obligations of which are backed by the full faith and credit of the United States, in each case of the foregoing <u>clauses (a)(i</u>) and (<u>a)(ii</u>), maturing within one (1) year after such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) marketable direct obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof, in each case, maturing within one (1) year after such date and having, at the time of the acquisition thereof, a rating of *at least* A–1 from S&P or *at least* P–1 from Moody's;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) commercial paper maturing *no more than* one (1) year from the date of creation thereof and having, at the time of the acquisition thereof, a rating of *at least* A–1 from S&P or *at least* P–1 from Moody's;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) certificates of deposit or bankers' acceptances maturing within one (1) year after such date and issued or accepted by any Lender or by any commercial bank organized under the laws of the United States, or of any state thereof or the District of Columbia, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is *at least* "adequately capitalized" (as defined in the regulations of its primary federal banking regulator); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has Tier 1 capital (as defined in such regulations) of *not less than* One-Hundred Million Dollars ($100,000,000); and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) shares of any money market mutual fund that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) has substantially all of its assets invested continuously in the types of investments referred to in <u>clauses (a</u>) and (<u>b</u>) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has net assets of *not less than* Five-Hundred Million Dollars ($500,000,000); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) has the highest rating obtainable from either S&P or Moody's.

"*<u>CFC</u>*" shall mean a "controlled foreign corporation" within the meaning of Section 957 of the Code.

"*<u>Change in Control</u>*" shall mean the occurrence of one (1) or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Permitted Holders, taken together, shall cease to own and control, beneficially and of record, directly or indirectly, *at least* forty-four percent (44.0%) of the outstanding Voting Stock in the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) David Flitman, an individual resident of the state of Florida, shall cease to be the duly appointed, acting chief executive officer of the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the acquisition of ownership, directly or indirectly, beneficially or of record, by any "person" or "group" (within the meaning of the Exchange Act, as in effect on the Closing Date), other than the Permitted Holders, of thirty percent (30.0%) or more of the outstanding Voting Stock in the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) except pursuant to a transaction that is expressly permitted under this Agreement and the other Credit Documents, the Borrower shall cease to possess the right to elect (through contract, ownership of Voting Stock, or otherwise), at all times, a majority of the board of directors or managers (or equivalent governing body) of each of its Subsidiaries and/or to direct the management policies and decisions of each such Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) except pursuant to a transaction that is expressly permitted under this Agreement and the other Credit Documents, any Person that, on the Closing Date or at any time thereafter, is: (i) a Captive Reinsurance Company shall cease to be a Captive Reinsurance Company pursuant to clause (b) of the definition of "*Captive Reinsurance Company*" above; or (ii) a Qualifying Reciprocal Entity shall thereafter cease to be a Qualifying Reciprocal Entity pursuant to clause (b) of the definition of "*Qualifying Reciprocal Entity*" below; or (iii) a Regulated Subsidiary (other than a Captive Reinsurance Company) shall cease to be a Regulated Subsidiary (other than a Captive Reinsurance Company) pursuant to clause (b) of the definition of "*Regulated Subsidiary*" below.

"*<u>Change in Law</u>*" shall mean the occurrence, after the Closing Date, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty, or in the administration, interpretation, implementation or application thereof, by any Governmental Authority, or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; <u>provided</u>, <u>that</u>, notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith, (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, and (iii) all requests, rules, guidelines or directives issued by a Governmental Authority in connection with a Lender's submission or re-submission of a capital plan under 12 C.F.R. § 225.8 or a Governmental Authority's assessment thereof shall, in each case, be deemed to be a "*Change in Law*", regardless of the date enacted, adopted or issued.

------

"*<u>Class</u>*", when used in reference to any Loan or Borrowing, shall refer to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Swingline Loans, the Term Loan A, the Delayed Draw Term Loan, or a specified Incremental Term Loan, and, when used in reference to any Commitment, refers to whether such Commitment is a Revolving Commitment, a Swingline Commitment, a Term Loan A Commitment, a DDTL Commitment, or an Incremental Term Loan Commitment in respect of a specified Incremental Term Loan.

"*<u>Closing Date</u>*" shall have the meaning provided for such term in the introductory paragraph to this Agreement.

"*<u>Closing Date Distribution</u>*" shall mean a one-time tax distribution of proceeds of the Borrowing of the Term Loan A on the Closing Date, in an amount of up to Thirty-One Million Eight-Hundred Ninety-Four Thousand Nine-Hundred Dollars ($31,894,900), by the Borrower to the owners of its outstanding Equity Interests in accordance with the terms of this Agreement.

"*<u>Collateral</u>*" shall mean the collateral identified in, and at any time covered by, the Collateral Documents.

"*<u>Collateral Agent</u>*" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"*<u>Collateral Documents</u>*" shall mean, collectively, the Security Agreement, the Mortgages, and all other instruments, documents and/or agreements delivered by any Credit Party pursuant to this Agreement or any of the other Credit Documents in order to grant to the Collateral Agent, for the benefit of the holders of the Obligations, a Lien on any real, personal or mixed Property of any Credit Party as security for the Obligations.

"*<u>Combined Statutory Surplus</u>*" shall mean, as of any date of determination, the aggregate Statutory Surplus of all of the Regulated Entities that are *not* Captive Reinsurance Companies, taken together on a combined basis.

"*<u>Commitment Fee</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.10(a</u>).

"*<u>Commitment Percentage</u>*" shall mean, for each Lender and with respect to: (a) any Revolving Loans (or any Borrowing thereof) or any Swingline Loans (or any Borrowing thereof), such Lender's Revolving Commitment Percentage; (b) the Term Loan A (or any Borrowing thereof), such Lender's Term Loan A Commitment Percentage; (c) the Delayed Draw Term Loan (or any Borrowing of an advance thereunder), such Lender's DDTL Commitment Percentage; and (d) any Incremental Term Loan (or any Borrowing thereof or thereunder), such Lender's Incremental Term Loan Commitment Percentage in respect of such Incremental Term Loan.

"*<u>Commitments</u>*" shall mean, collectively, the Revolving Commitments, the Term Loan A Commitments, the DDTL Commitments, and any Incremental Term Loan Commitments.

"*<u>Commodity Exchange Act</u>*" shall mean the Commodity Exchange Act (7 U.S.C. § 1 *et seq*.), as amended.

"*<u>Competitor</u>*" shall mean any competitor of any Credit Party, Subsidiary or other Regulated Entity that is in the same or a similar line of business as any Credit Party, Subsidiary or other Regulated Entity.

"*<u>Compliance Certificate</u>*" shall mean a Compliance Certificate substantially in the form of <u>Exhibit 7.1(c</u>).

------

"*<u>Conforming Changes</u>*" shall mean, with respect to (a) the use and/or administration of, and/or any conventions associated with, SOFR, the SOFR Reference Rate for any applicable tenor and/or any SOFR-Based Rate (for any Interest Period, as applicable), or (b) the use, administration, adoption and/or implementation of, and/or any conventions associated with, any Benchmark Replacement, in each case of the foregoing <u>clauses (a</u>) and (<u>b</u>), any technical, administrative and/or operational change(s) (including, without limitation, any such change(s) to the definition of "*Base Rate*" above, the definition of "*Business Day*" above, the definition of "*Daily Simple SOFR*" below, the definition of "*Interest Period*" below (or any similar or analogous definition, or the addition of an applicable concept of "interest period"), the definition of "*SOFR*" below, the definition of "*SOFR Reference Rate*" below, the definition of "*Term SOFR*" below, the definition of "*U*.*S*. *Government Securities Business Day*" below, the timing and frequency of determining rates and making payments of interest, the timing of delivery of any Funding Notices (or other requests for borrowing of Loans), the timing of delivery of any notices of optional reduction or termination of any Commitment(s), the timing of delivery of any notices of optional or voluntary prepayment of any Loans (or any other notices of prepayment of any Loans), the timing of delivery of any Conversion / Continuation Notices (or other notices of the continuation or conversion of Loans), the applicability and length of lookback periods, the applicability of <u>Section</u> <u>3.1(c</u>), and any other technical, administrative and/or operational matters) that the Administrative Agent determines, in its reasonable discretion, may be appropriate to reflect the adoption and/or implementation of any such rate and/or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent determines, in its reasonable discretion, that (i) the adoption and/or implementation of, or of any portion of, such market practice is *not* administratively feasible for the Administrative Agent, or (ii) no market practice for the administration of any such rate exists, then, in each case of the foregoing <u>clauses (i</u>) and (<u>ii</u>), permit the use and administration thereof by the Administrative Agent in such other manner of administration as the Administrative Agent determines is reasonably necessary in connection with the administration of this Agreement and the other Credit Documents).

"*<u>Connection Income Taxes</u>*" shall mean Other Connection Taxes that are imposed on, or measured by, net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"*<u>Consolidated EBITDA</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, an amount equal to the *sum of*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Consolidated Net Income (*exclusive*, for purposes of clarity, of Regulated Entities) for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the following, in each case, *solely* to the extent deducted in calculating such Consolidated Net Income (and without duplication):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Consolidated Interest Charges for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the provision for federal, state, local and foreign income taxes payable by the Credit Parties and Subsidiaries (other than Regulated Entities) for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) depreciation and amortization expense for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) non-cash stock compensation issued for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all out-of-pocket fees, costs and expenses payable, or otherwise incurred, in connection with the closing of this Agreement and the other Credit Documents; <u>provided</u>, <u>that</u>, such fees, costs and expenses are payable or otherwise incurred *prior* to the date that is three (3) months after the Closing Date; *plus*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the aggregate amount of managing general agency, service company or attorney-in-fact fees that are due and owing, or that have already been paid, by any Regulated Entity, on the one hand, to any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the other hand, pursuant to any managing general agent, service company or attorney-in-fact agreement entered into between any Credit Party or Subsidiary (other than any Regulated Subsidiary) and any Regulated Entity, but which have been waived in accordance with this Agreement by the Credit Party or Subsidiary (other than a Regulated Subsidiary) to whom such fees would have been, or, in the case of any such fees that have already been paid and are subsequently so waived, have been, paid, in each case of the foregoing of this <u>clause (b)(vi</u>), to the extent supported (so long as any such documentation is readily available to, or preparable by, the Credit Parties, Subsidiaries and other Regulated Entities) by documentation provided, and reasonably acceptable, to the Administrative Agent; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) other non-cash charges and non-cash expenses reducing such Consolidated Net Income, including any write-offs or write-downs (but *excluding* any such non-cash charge or non-cash expense to the extent that such non-cash charge or non-cash expense (A) represents an accrual of, or reserve for, cash charges or cash expenses in any future period, or amortization of a prepaid cash expense or cash charge that was paid in a prior period but *not* included in the calculation of Consolidated EBITDA for such prior period, or (B) is an expense or charge related to accounts receivable or other current assets); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all non-cash items increasing such Consolidated Net Income (but *excluding* any items that represent the reversal of an accrual of, or reserve for, anticipated cash charges or cash expenses that reduced Consolidated EBITDA in any prior period).

"*<u>Consolidated Fixed Charge Coverage Ratio</u>*" shall mean, as of any date of determination, the ratio of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Consolidated EBITDA; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Consolidated Unfinanced Capital Expenditures; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Consolidated Taxes; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate amount of Restricted Payments paid in cash by the Credit Parties and Subsidiaries (other than Regulated Entities) to Persons other than Credit Parties (but *excluding* the Closing Date Distribution); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the aggregate amount, determined on a cost basis, of Investments (including, without limitation, Investments consisting of the forgiveness of fees as described in the last sentence of the definition of "*Investments*" below) made by any Credit Party in any Person that is *not* itself a Credit Party (including, for purposes of clarity, in any Regulated Entity), but *excluding* any such Investments to the extent financed with the proceeds of Loans (including Revolving Loans) or other long-term, non-revolving Indebtedness, net of the amount (if any) of Returned Reinsurance Investments received by the Credit Parties;

all as determined in accordance with GAAP or SAP (as applicable); to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Consolidated Fixed Charges,

in each case of the foregoing, measured on a consolidated basis for the Credit Parties and Subsidiaries (other than Regulated Entities) for the Trailing Period most recently ended as of such date; <u>provided</u>, <u>that</u>, notwithstanding anything to the contrary in the foregoing or elsewhere in this Agreement or any other Credit Document, the calculation of Consolidated Fixed Charges, for purposes of the calculation of the Consolidated Fixed Charge Coverage Ratio measured for the Trailing Period ending:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) March 31, 2025, shall be deemed to equal the *product of*: (A) actual Consolidated Fixed Charges paid in cash, measured for the period of one (1) Fiscal Quarter then ended; *multiplied by* (B) four (4);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) June 30, 2025, shall be deemed to equal the *product of*: (A) actual Consolidated Fixed Charges paid in cash, measured for the period consisting of the two (2) consecutive full Fiscal Quarters then ended; *multiplied by* (B) two (2); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) September 30, 2025, shall be deemed to equal the *product of*: (A) actual Consolidated Fixed Charges paid in cash, measured for the period consisting of the three (3) consecutive full Fiscal Quarters then ended; *multiplied by* (B) four thirds (4/3).

"*<u>Consolidated Fixed Charges</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, an amount equal to the *sum of*: (a) Consolidated Interest Charges for such period; *plus* (b) Consolidated Scheduled Funded Debt Payments for such period.

"*<u>Consolidated Funded Debt</u>*" shall mean all Funded Debt of the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis determined in accordance with GAAP; <u>provided</u>, <u>that</u>, for the avoidance of doubt, "*Consolidated Funded Debt*" shall include any intercompany Indebtedness owing by any Credit Party or Subsidiary (other than a Regulated Entity) to any Regulated Entity.

"*<u>Consolidated Interest Charges</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, an amount equal to the *sum of*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all interest, premium payments, debt discount, fees, charges, and related expenses in connection with Funded Debt of a type described in clauses (a) or (b) of the definition of "*Funded Debt*" below (other than, for purposes of clarity, payments in respect of Earn Out Obligations), in each case, to the extent treated as interest in accordance with GAAP; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the portion of rent expense with respect to such period under Capital Leases that is treated as interest in accordance with GAAP; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the implied interest component of Synthetic Leases with respect to such period;

<u>provided</u>, <u>that</u>, for the avoidance of doubt, "*Consolidated Interest Charges*" shall include all interest, premium, payments, debt discount, fees, charges and related expenses in connection with any intercompany Indebtedness owing by any Credit Party or Subsidiary (other than a Regulated Entity) to any Regulated Entity.

"*<u>Consolidated Leverage Ratio</u>*" shall mean, as of any date of determination, the ratio of: (a) Consolidated Funded Debt as of such date; to (b) Consolidated EBITDA, measured for the most recently ended Trailing Period.

"*<u>Consolidated Net Income</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (including or excluding Regulated Entities, as so specified textually in the relevant instance of calculation) on a consolidated basis, the net income of the Credit Parties and Subsidiaries (but *excluding*, in any event, extraordinary gains) for such period, as determined in accordance with GAAP; <u>provided</u>, <u>that</u>, for purposes of any determination of Consolidated Net Income that is exclusive of Regulated Entities, any dividends or other distributions paid by a Regulated Entity to another Credit Party or Subsidiary during the relevant period of measurement shall be disregarded and shall *not*, in any event, be considered net income of any Credit Party or Subsidiary (other than such Regulated Entity) for such period.

------

"*<u>Consolidated Scheduled Funded Debt Payments</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis, the *sum of* all scheduled payments of principal on Consolidated Funded Debt, as determined in accordance with GAAP. For purposes of this definition, "*<u>scheduled payments of principal</u>*" shall: (a) be determined without giving effect to any reduction of such scheduled payments resulting from the application of any voluntary or mandatory prepayments made during the applicable period; (b) be deemed to include payments with respect to the Attributable Principal Amount in respect of Capital Leases, Securitization Transactions, Sale and Leaseback Transactions and Synthetic Leases; and (c) *not* include any voluntary prepayments or mandatory prepayments required pursuant to <u>Section</u> <u>2.11</u>.

"*<u>Consolidated Taxes</u>*" shall mean, for any period of measurement, the aggregate amount of all Taxes paid in cash, as determined in accordance with GAAP, by the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis; <u>provided</u>, <u>that</u>, "*Consolidated Taxes*" shall include all Taxes paid in cash by the Credit Parties and Subsidiaries (other than Regulated Entities) on account of, on behalf of, or attributable to, any Regulated Entity to the extent that such Regulated Entity has *not* made Restricted Payments to the party paying such Taxes pursuant to <u>Section</u> <u>8.4(a</u>) within two (2) months of such tax liabilities becoming due and payable, or actually being paid in cash, by the paying party.

"*<u>Consolidated Unfinanced Capital Expenditures</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, the aggregate amount actually paid in cash by the Credit Parties and Subsidiaries (other than Regulated Entities) on account of Capital Expenditures, but *excluding* Capital Expenditures to the extent financed with the proceeds of Loans (including Revolving Loans) or other long-term, non-revolving Indebtedness.

"*<u>Contractual Obligation</u>*" shall mean, as applied to any Person, any provision of any Security issued by that Person or of any indenture, mortgage, deed of trust, contract, undertaking, agreement or other instrument to which that Person is a party or by which it, or any of its Properties, is bound, or to which it, or any of its Properties, is otherwise subject.

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

"*<u>Controlled Account Agreement</u>*" shall mean any tri-party agreement by and among a Credit Party, the Collateral Agent, and a depositary bank or securities or commodities intermediary (as applicable) at which such Credit Party maintains one (1) or more deposit, disbursement, lockbox, securities and/or commodities accounts granting "control" (as defined in the UCC) to the Collateral Agent with respect to such account(s), in each case, in form and substance reasonably satisfactory to the Collateral Agent.

"*<u>Conversion</u>* <u>/</u> *<u>Continuation Date</u>*" shall mean the effective date of a continuation or conversion, as the case may be, as set forth in the applicable Conversion / Continuation Notice.

"*<u>Conversion</u>* <u>/</u> *<u>Continuation Notice</u>*" shall mean a Conversion / Continuation Notice substantially in the form of <u>Exhibit 2.8</u>.

"*<u>Covered Entity</u>*" shall mean any of the following: (a) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §–252.82(b); (b) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §–47.3(b); and (c) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §–382.2(b).

"*<u>Covered Party</u>*" shall mean have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

------

"*<u>Credit Date</u>*" shall mean, with respect to any Credit Extension, the date on which such Credit Extension is made.

"*<u>Credit Document</u>*" shall mean any of this Agreement, each Note, each Issuer Document, the Collateral Documents, any Guarantor Joinder Agreement, the Fee Letter, any Auto Borrow Agreement, any Incremental Facility Agreement, any documents or certificates executed by any Credit Party in favor of the Issuing Bank relating to Letters of Credit, and, to the extent evidencing or securing the Obligations, all other documents, instruments or agreements executed and delivered by any Credit Party for the benefit of the Administrative Agent, the Collateral Agent, the Issuing Bank or any Lender in connection herewith or therewith, and including, for the avoidance of doubt, any Guarantor Joinder Agreement (but specifically *excluding* any Secured Swap Agreements and any Secured Treasury Management Agreements).

"*<u>Credit Extension</u>*" shall mean the making of a Loan or the issuing or extending of a Letter of Credit.

"*<u>Credit Parties</u>*" shall mean, collectively, the Borrower and each Guarantor.

"*<u>Cure Period</u>*" shall have the meaning specified for such term in <u>Section</u> <u>9.4(a</u>).

"*<u>Cure Proceeds</u>*" shall have the meaning specified for such term in <u>Section</u> <u>9.4(a</u>).

"*<u>Daily Simple SOFR</u>*" shall mean, for any date of determination, SOFR, with the conventions for such rate (which shall include a lookback) being established by the Administrative Agent in accordance with the conventions for such rate selected or recommended by the Relevant Governmental Body for determining "*Daily Simple SOFR*" for business loans; <u>provided</u>, <u>that</u>, (a) if the Administrative Agent decides that any such convention is *not* administratively feasible for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion, and (b) if, at any time, Daily Simple SOFR (determined in accordance with such convention(s)) is *less than* the Floor, then Daily Simple SOFR shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents.

"*<u>DDTL Amortization Payment Amount</u>*" shall mean, at any time with respect to each advance under the Delayed Draw Term Loan during the DDTL Availability Period (to the extent made), an amount equal to the *quotient* of: (a) the *product of* (i) the aggregate original principal amount of such advance under the Delayed Draw Term Loan, *multiplied by* (ii) ten percent (10.0%); *divided by* (b) four (4).

"*<u>DDTL Availability Period</u>*" shall mean the period from, but *excluding*, the Closing Date to, but excluding, the DDTL Commitment Termination Date.

"*<u>DDTL Commitment</u>*" shall mean, with respect to each Lender, the obligation of such Lender to advance its respective portion of principal under the Delayed Draw Term Loan, in up to five (5) separate advances during the DDTL Availability Period, in each case pursuant to <u>Section</u> <u>2.1(c</u>), in an aggregate original principal amount advanced by such Lender during the DDTL Availability Period (for all such advances, taken together) *not to exceed* the applicable amount set forth with respect to such Lender as such Lender's "*DDTL Commitment*" on <u>Appendix A</u>, subject to any increase(s), adjustment(s) and/or reduction(s) pursuant to the terms and conditions of this Agreement.

"*<u>DDTL Commitment Percentage</u>*" shall mean, with respect to each Lender at any time, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the *sum of* (i) the amount of such Lender's respective DDTL Commitment (if any) in effect at such time, *plus* (ii) the aggregate principal balance of the portion of the Delayed Draw Term Loan advanced by such Lender that is outstanding at such time; and (b) the *denominator* of which is the *sum of* (i) the Aggregate DDTL Commitment Amount in effect at such time, *plus* (ii) the aggregate outstanding principal balance of the Delayed Draw Term Loan at such time. The DDTL Commitment Percentages of each Lender as of the Closing Date are set forth on <u>Appendix A</u>.

------

"*<u>DDTL Commitment Termination Date</u>*" shall mean the *earliest* to occur of: (a) the first (1<sup>st</sup>) Business Day after the date that is the second (2<sup>nd</sup>) anniversary of the Closing Date; (b) the date on which five (5) separate advances under the Delayed Draw Term Loan shall have been made in accordance with this Agreement; (c) the date on which the Borrower shall have provided written notice to the Administrative Agent of its election to terminate the Aggregate DDTL Commitments in accordance with <u>Section</u> <u>2.11(b</u>); and (d) the date on which the Aggregate DDTL Commitments shall have been terminated, and/or all amounts outstanding under this Agreement shall have been declared, or automatically have become, due and payable, in each case of the foregoing of this <u>clause (d</u>), pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise).

"*<u>Debt Transaction</u>*" shall mean, with respect to any Credit Party, any Subsidiary or any other Regulated Entity, any sale, issuance, placement, assumption or guaranty of Funded Debt, whether or not evidenced by a promissory note or other written evidence of Indebtedness, except for Funded Debt permitted to be incurred and remain outstanding after the Closing Date pursuant to <u>Section</u> <u>8.1</u>.

"*<u>Debtor Relief Laws</u>*" shall mean the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect.

"*<u>Default</u>*" shall mean a condition or event that, after notice or lapse of time or both, would constitute an Event of Default.

"*<u>Default Rate</u>*" shall mean an interest rate equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to Obligations (including, for purposes of clarity, Loans bearing interest at the Base Rate determined pursuant to clause (c) of the definition of "*Base Rate*" above) other than SOFR Loans and the Letter of Credit Fee, the Base Rate *plus* the Applicable Margin, if any, applicable to such Obligations *plus* two percent (2.0%) per annum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to SOFR Loans, Term SOFR *plus* the Applicable Margin, if any, applicable to SOFR Loans *plus* two percent (2.0%) per annum; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to the Letter of Credit Fee, the Applicable Margin for the Letter of Credit Fee *plus* two percent (2.0%) per annum.

"*<u>Default Right</u>*" shall have the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§–252.81, 47.2 or 382.1, as applicable.

"*<u>Defaulting Lender</u>*" shall mean, subject to <u>Section</u> <u>2.16(b</u>), any Lender that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has failed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fund all, or any portion, of its Loans within two (2) Business Days of the date such Loans were required to be funded hereunder, unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender's determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has *not* been satisfied; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) pay to the Administrative Agent, the Collateral Agent, the Issuing Bank, the Swingline Lender, or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in any Letters of Credit or Swingline Loans) within two (2) Business Days of the date when due;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has notified the Borrower, the Administrative Agent, the Issuing Bank, or the Swingline Lender in writing that it does *not* intend to comply with its funding obligations hereunder, or has made a public statement to that effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) has failed, within three (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (<u>provided</u>, <u>that</u>, such Lender shall cease to be a Defaulting Lender pursuant to this <u>clause (c</u>) upon receipt of such written confirmation by the Administrative Agent and the Borrower); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) has, or has a direct or indirect parent company that has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) become the subject of a proceeding under any Debtor Relief Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) become the subject of a Bail-In Action;

<u>provided</u>, <u>that</u>, a Lender shall *not* be a Defaulting Lender *solely* by virtue of the ownership or acquisition of any equity interest in that Lender, or any direct or indirect parent company thereof, by a Governmental Authority, so long as such ownership interest does *not* result in or provide such Lender with immunity from the jurisdiction of courts within the United States, or from the enforcement of judgments or writs of attachment on its assets, or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of <u>clauses (a</u>) through (<u>d</u>) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to <u>Section</u> <u>2.16(b</u>)) upon delivery of written notice of such determination to the Borrower, the Issuing Bank, the Swingline Lender and each Lender.

"*<u>Delayed Draw Term Loan</u>*" shall have the meaning provided for such term in <u>Section</u> <u>2.1(c</u>). The Delayed Draw Term Loan may also be referred to in this Agreement and the other Credit Documents as the "*<u>DDTL</u>*".

"*<u>Disqualified Equity Interests</u>*" shall mean, with respect to any Person, any Equity Interests in such Person that, by their terms (or by the terms of any security or other Equity Interests into which they are convertible, or for which they are exchangeable), or upon the happening of any event or condition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) matures (but *excluding* any maturity as a result of an optional redemption by the issuer thereof the exercise of which, by the terms of such Equity Interests, is contingent upon such redemption *not* being prohibited by this Agreement or any of the other Credit Documents) or is mandatorily redeemable (other than (i) *solely* in exchange for Equity Interests that are *not* otherwise Disqualified Equity Interests, or (ii) as a result of a redemption that, by the terms of such Equity Interests, is contingent upon such redemption *not* being prohibited by this Agreement or any of the other Credit Documents), pursuant to a sinking fund obligation or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is redeemable at the option of the holder thereof (other than (i) *solely* in exchange for Equity Interests that are *not* otherwise Disqualified Equity Interests, or (ii) as a result of a redemption that, by the terms of such Equity Interests, is contingent upon such redemption *not* being prohibited by this Agreement or any of the other Credit Documents), in whole or in part;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) provides for the scheduled payment of dividends in cash; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is or becomes convertible into, or exchangeable for, Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests;

in each case of the foregoing <u>clauses (a</u>) through (<u>d</u>), on or prior to the date that is one-hundred eighty one (181) calendar days after the Latest Maturity Date; <u>provided</u>, <u>that</u>, (I) to the extent that any such Equity Interests are issued pursuant to a Benefit Plan for the benefit of any Credit Party or Subsidiary to any employees of any Credit Party or Subsidiary, such Equity Interests shall *not* constitute Disqualified Equity Interests *solely* as a result of such Equity Interests being required to be repurchased by a Credit Party or Subsidiary in order to satisfy requirements under applicable Law, and (II) in the case of the foregoing <u>clauses (a</u>) and (<u>b</u>), if any Equity Interests constitute Disqualified Equity Interests as a result of the occurrence of a Change in Control, the consummation of an Asset Sale or other disposition, or the consummation of any other Specified Transaction or other transaction, then such Equity Interests shall *not* constitute Disqualified Equity Interests for purposes of this Agreement and the other Credit Documents so long as any rights of the holder(s) thereof upon the occurrence of such a Change in Control, the consummation of such an Asset Sale or other disposition, or the consummation of such other Specified Transaction(s) or other transaction(s) are, in any such case, subject to the prior occurrence of the Payment in Full of all Obligations.

"*<u>Disqualified Institution</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) those Competitors and other Persons identified on a list provided by the Borrower to the Administrative Agent and made available to the Lenders on the Closing Date (the "*<u>Disqualified</u> <u>Institution List</u>*") (as such Disqualified Institution List may be supplemented from time to time by the Borrower pursuant to <u>clause (c</u>) below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Person that is reasonably identifiable (based *solely* to the extent such legal entity has the name of a Person set forth on the Disqualified Institution List in its legal name) as an Affiliate of any Person set forth on the Disqualified Institution List; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other Competitor identified by legal name in writing to the Administrative Agent at any time after the Closing Date (other than during the continuance of an Event of Default) (it being understood and agreed that the Borrower shall be required to provide a fully updated Disqualified Institution List to the Administrative Agent in order to supplement such list after the Closing Date), which designation shall become effective one (1) day after the date that such written designation to the Administrative Agent is made available to the Lenders on IntraLinks, Syndtrak, Debtdomain or a similar electronic transmission system, but which shall *not* apply retroactively to disqualify any Persons that have previously acquired an assignment or participation interest in the Loans and/or Commitments.

Notwithstanding anything to the contrary in the foregoing, a Person that would be a Disqualified Institution as a result of being an Affiliate of a Competitor pursuant to <u>clause (b</u>) above shall *not* constitute a Disqualified Institution if such Person is a financial institution, bona fide debt fund or investment vehicle that is engaged in the business of making, purchasing, holding or otherwise investing in commercial loans, notes, bonds and similar extensions of credit or securities in the ordinary course of business to unaffiliated third parties and no Disqualified Institution makes investment decisions for such Person.

"*<u>Disqualified Institution List</u>*" shall have the meaning set forth in the definition of "*Disqualified Institution*" above.

"*<u>Dollars</u>*" and the sign "<u>$</u>" shall mean the lawful money of the United States.

"*<u>Domestic Subsidiary</u>*" shall mean any Subsidiary that is incorporated or formed (as the case may be) under the Applicable Laws of the United States or of any state, district or other political subdivision thereof, other than any such Subsidiary of the type(s) described in clauses (b) or (c) of the definition of "*Foreign Subsidiary*" below.

------

"*<u>Earn Out Obligations</u>*" shall mean, with respect to any Acquisition or other Investment permitted under this Agreement consisting of the purchase of Equity Interests, all obligations of any Credit Party, any Subsidiary or any other Regulated Entity to make earn out or other similar contingent payments that are payable based on the achievement of specified financial results over time (but *excluding*, for the avoidance of doubt, payments in respect of purchase price adjustments, working capital adjustments and non-competition and/or consulting agreements) pursuant to the definitive documentation relating to such Acquisition or other Investment.

"*<u>EEA Financial Institution</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any credit institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA Resolution Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any entity established in an EEA Member Country that is a parent of an institution described in <u>clause (a</u>) above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in <u>clauses (a</u>) or (<u>b</u>) above and is subject to consolidated supervision with its parent.

"*<u>EEA Member Country</u>*" shall mean any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"*<u>EEA Resolution Authority</u>*" shall mean any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"*<u>Eligible Assignee</u>*" shall mean any Person that meets the requirements to be an assignee under <u>Section</u> <u>11.5(b</u>), subject to any consents and representations, if any as may be required therein.

"*<u>Environmental Claim</u>*" shall mean any known investigation, written notice, notice of violation, written claim, action, suit, proceeding, written demand, abatement order or other written order or directive (conditional or otherwise), by any Person arising:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) pursuant to, or in connection with, any actual or alleged violation of any Environmental Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in connection with any actual or alleged damage, injury, threat or harm to human health, safety, natural resources or the environment.

"*<u>Environmental Laws</u>*" shall mean any and all current or future federal or state (or any subdivision of either of them), statutes, ordinances, orders, rules, regulations, judgments, Governmental Authorizations, or any other written requirements of Governmental Authorities relating to: (a) any Hazardous Materials Activity; (b) the generation, use, storage, transportation or disposal of Hazardous Materials; or (c) protection of human health and the environment from pollution, in any manner applicable to any Credit Party, any Subsidiary, any Regulated Entity, or any of the respective Facilities of any of the foregoing.

------

"*<u>Environmental Liability</u>*" shall mean any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of any Credit Party, any Subsidiary or any other Regulated Entity directly or indirectly resulting from or based upon: (a) violation of any Environmental Law; (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials; (c) exposure to any Hazardous Materials; (d) the Release, or threatened Release, of any Hazardous Materials into the environment; or (e) any contract, agreement or other consensual arrangement pursuant to which any Credit Party, any Subsidiary or any other Regulated Entity assumed liability with respect to any of the foregoing.

"*<u>Equity Interests</u>*" shall mean, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.

"*<u>Equity Transaction</u>*" shall mean, with respect to any Credit Party, any Subsidiary or any other Regulated Entity, any issuance or sale by any such Person of shares of its Equity Interests, other than an issuance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the Borrower or any of its Wholly Owned Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in connection with a conversion of debt securities to equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in connection with the exercise by a present or former employee, officer or director under a stock incentive plan, stock option plan or other equity-based compensation plan or arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) that occurred *prior* to the Closing Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in connection with the consummation of any Permitted Acquisition or the making of any Capital Expenditures permitted under this Agreement.

"*<u>ERISA</u>*" shall mean the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

"*<u>ERISA Affiliate</u>*" shall mean, as applied to any Person: (a) any corporation which is a member of a controlled group of corporations within the meaning of Section 414(b) of the Internal Revenue Code of which that Person is a member; (b) any trade or business (whether or not incorporated) which is a member of a group of trades or businesses under common control within the meaning of Section 414(c) of the Internal Revenue Code of which that Person is a member; and (c) any member of an affiliated service group within the meaning of Section 414(m) or (o) of the Internal Revenue Code of which that Person, any corporation described in <u>clause</u> <u>(a</u>) above or any trade or business described in <u>clause (b</u>) above is a member.

"*<u>ERISA Event</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a "reportable event" within the meaning of Section 4043 of ERISA and the regulations issued thereunder with respect to any Pension Plan (but *excluding* those for which notice to the PBGC has been waived by regulation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the failure to meet the minimum funding standard of Section 412 of the Internal Revenue Code with respect to any Pension Plan (whether or not waived in accordance with Section 412(c) of the Internal Revenue Code), the failure to make by its due date any minimum required contribution or any required installment under Section 430(j) of the Internal Revenue Code with respect to any Pension Plan or the failure to make by its due date any required contribution to a Multiemployer Plan;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the provision by the administrator of any Pension Plan pursuant to Section 4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress termination described in Section 4041(c) of ERISA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the withdrawal from any Pension Plan with two (2) or more contributing sponsors or the termination of any such Pension Plan, in either case resulting in material liability pursuant to Section 4063 or 4064 of ERISA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the institution by the PBGC of proceedings to terminate any Pension Plan, or the occurrence of any event or condition reasonably likely to constitute grounds under ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the imposition of liability pursuant to Section 4062(a) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA, each case reasonably likely to result in material liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the withdrawal of any Credit Party, any Subsidiary, any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, in a complete or partial withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if such withdrawal is reasonably likely to result in material liability, or the receipt by any Credit Party, any Subsidiary, any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, of notice from any Multiemployer Plan that it is in insolvency pursuant to Section 4241 or 4245 of ERISA, or that it is in "critical" or "endangered" status within the meaning of Section 305 of ERISA, or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA, if such insolvency or termination is reasonably likely to result in material liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the imposition of fines, penalties, taxes or related charges under Chapter 43 of the Internal Revenue Code, Section 502(c), (i) or (l), or Section 4071 of ERISA in respect of any Pension Plan if such fines, penalties, taxes or related charges are reasonably likely to result in material liability to the Credit Parties, the Subsidiaries, the other Regulated Entities, and/or their respective ERISA Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) receipt from the Internal Revenue Service of a final written determination of the failure of any Pension Plan intended to be qualified under Section 401(a) of the Internal Revenue Code to qualify under Section 401(a) of the Internal Revenue Code, or the failure of any trust forming part of any such plan to qualify for exemption from taxation under Section 501(a) of the Internal Revenue Code; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the imposition of a lien pursuant to Section 430(k) of the Internal Revenue Code or pursuant to Section 303(k) or 4068 of ERISA.

"*<u>Erroneous Payment</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(a</u>).

"*<u>Erroneous Payment Deficiency Assignment</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>Erroneous Payment Impacted Class</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>Erroneous Payment Return Deficiency</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>Erroneous Payment Subrogation Rights</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>EU Bail</u>*<u>-</u>*<u>In Legislation Schedule</u>*" shall mean the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"*<u>Event of Default</u>*" shall mean each of the conditions or events set forth in <u>Section</u> <u>9.1</u>.

------

"*<u>Exchange Act</u>*" shall mean the Securities Exchange Act of 1934, as amended from time to time, and any successor statute.

"*<u>Excluded Accounts</u>*" shall mean: (a) deposit and/or securities accounts used *solely* for the payment of Taxes, the balance of which consists exclusively of (i) withheld income taxes, federal, state or local employment taxes and sales taxes, in such amounts as are required, in the reasonable judgment of the Borrower, to be paid to the IRS or state or local Governmental Authorities, or (ii) amounts required to be paid over to an employee benefit plan pursuant to DOL Reg. §–2510.3–102 on behalf of, or for the benefit of, employees of one (1) or more Credit Parties; (b) all accounts used *solely* for payroll, accounts maintained *solely* in trust for the benefit of third parties and fiduciary purposes (including fiduciary tax accounts), escrow and trust accounts, zero balance or swept accounts, and healthcare and other employee benefit accounts (including 401(k) accounts and pension fund accounts), in each case of this <u>clause (b</u>), so long as such account is used *solely* for such purpose; (c) any deposit and/or securities account maintained in a jurisdiction outside of the United States or owned by a Foreign Subsidiary; and (d) accounts the balance of which consists exclusively of amounts to be paid to employees in the ordinary course of business.

"*<u>Excluded Property</u>*" shall mean, with respect to the Borrower and each other Credit Party, including any Person that becomes a Credit Party after the Closing Date as contemplated by <u>Section</u> <u>7.14</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Excluded Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Real Estate Asset owned in fee or leased by a Credit Party that is located outside of the United States, or any Real Estate Asset leased by a Credit Party that is located in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Real Estate Asset owned in fee by a Credit Party that is located in the United States having a fair market value *not* in *excess* of One Million Dollars ($1,000,000) (as reasonably determined by the Borrower on the Closing Date or on the date of later purchase of such Real Estate Asset, as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any personal Property (including, without limitation, motor vehicles) in respect of which perfection of a Lien is *not*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) governed by the UCC; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) effected by appropriate evidence of the Lien being filed in either the United States Copyright Office or the United States Patent and Trademark Office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Equity Interests in any direct Foreign Subsidiary or any Regulated Entity, to the extent *not* required to be pledged to secure the Obligations pursuant to <u>Section</u> <u>7.12(a</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Property which, subject to the terms of <u>Section</u> <u>8.3</u>, is subject to a Lien of the type described in <u>Section</u> <u>8.2(m</u>) pursuant to documents which prohibit the applicable Credit Party from granting any other Liens in such Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any Property to the extent that the grant of a security interest therein would violate Applicable Laws, require a consent *not* obtained of any Governmental Authority, or constitute a breach of or default under, or result in the termination of or require a consent *not* obtained under, any contract, lease, license or other agreement evidencing or giving rise to such Property, or result in the invalidation thereof or provide any party thereto with a right of termination (other than to the extent that any such term would be rendered ineffective pursuant to Section 9–406, 9–407, 9–408 or 9–409 of the applicable UCC or any other Applicable Law or principles of equity);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any lease, license, certificate, permit, agreement or other authorization issued by any Governmental Authority, or any Properties subject to any such lease, license, certificate, permit, agreement or other authorization, in each case of the foregoing, in existence on the Closing Date or upon the acquisition of the relevant Subsidiary party thereto (other than any such lease, license, certificate, permit, agreement or other authorization entered into in contemplation of this Agreement in order that any Property would constitute "*Excluded Property*" by operation of this <u>clause (h</u>)), *solely* if, and to the extent that, the grant of a security interest therein would: (i) violate or invalidate such lease, license, certificate, permit, agreement or other authorization (in each case, only if such violation or invalidation is *not* rendered ineffective pursuant to Section 9–406, 9–407, 9–408 or 9–409 of the applicable UCC or any other Applicable Law or principles of equity); (ii) create a right of termination in favor of any party thereto other than any Credit Party (or an Affiliate thereof); or (iii) otherwise require the consent of any Person that is *not* a Credit Party (or an Affiliate thereof), unless such consent has been obtained (<u>provided</u>, <u>that</u>, the Credit Parties shall have no obligation or responsibility to obtain such consent);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Margin Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any intent-to-use trademark application prior to the filing of a "Statement of Use" or "Amendment to Allege Use" with respect thereto, *solely* if, and to the extent, if any, that, and *solely* during the period, if any, during which, the grant or enforcement of a security interest therein would impair the validity or enforceability of such intent-to-use trademark application under Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any ownership interest of such Credit Party in the Property of, and/or any Equity Interests in, any joint venture entity and/or any Subsidiary that is *not* Wholly Owned Subsidiary, *solely* to the extent that (i) a security interest therein is *not* permitted to be granted by such Credit Party pursuant to the terms of the Organizational Documents of such joint venture entity or non-Wholly Owned Subsidiary (in each case, as in effect on the Closing Date or on such later date of initial acquisition by such Credit Party of Equity Interests in such joint venture entity or non-Wholly Owned Subsidiary), or (ii) the granting of a security interest therein by such Credit Party would require, pursuant to such Organizational Documents or the terms of other Contractual Obligations of such Credit Party (in each case, as in effect on the Closing Date or on such later date of initial acquisition by such Credit Party of Equity Interests in such joint venture entity or non-Wholly Owned Subsidiary), the consent of a Person that is *not* a Credit Party (or an Affiliate thereof) (in each case, after giving effect to Section 9–406, 9–407, 9–408 or 9–409 of the applicable UCC or any other Applicable Law or principle of equity, the assignment of which is expressly deemed to be effective under the UCC or other Applicable Law or principle of equity notwithstanding such provision), unless such consent has been obtained (<u>provided</u>, <u>that</u>, the Credit Parties shall have no obligation or responsibility to obtain such consent); <u>provided</u>, <u>that</u>, no such Organizational Documents or Contractual Obligations were formed, created, assumed or entered into (as applicable) with the intention of causing such Property to constitute "*Excluded Property*" by operation of this <u>clause (k</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) any Property of any Credit Party to the extent that the costs, burdens (including tax and/or regulatory burdens, if applicable), difficulty or consequence of obtaining a security interest therein or perfection thereof *exceeds*, in the reasonable determination and agreement in writing of the Collateral Agent and the Borrower, the benefit to the holders of the Obligations afforded thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) proceeds and products of any and all of the foregoing excluded Property described in <u>clauses (a</u>) through (l) above only to the extent such proceeds and products would constitute Property or assets of the type described in <u>clauses (a</u>) through (l) above;

<u>provided</u>, <u>that</u>, the security interest granted to the Collateral Agent under the Security Agreement or any other Credit Document shall attach immediately to any asset of any Obligor (as such term is defined in the Security Agreement) at such time as such asset ceases to meet any of the criteria for "*Excluded Property*" described in any of the foregoing <u>clauses (a</u>) through (<u>m</u>) above.

------

"*<u>Excluded Swap Obligation</u>*" shall mean, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all, or a portion, of the Guaranty of such Guarantor of, or the grant under a Credit Document by such Guarantor of a security interest to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act (or the application or official interpretation thereof) by virtue of such Guarantor's failure for any reason to constitute an "eligible contract participant" as defined in the Commodity Exchange Act (determined after giving effect to <u>Section</u> <u>4.8</u> hereof and any and all guarantees of such Guarantor's Swap Obligations by other Credit Parties) at the time the Guaranty of such Guarantor, or grant by such Guarantor of a security interest, becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a Master Agreement governing more than one Swap Agreement, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to Swap Agreements for which such Guaranty or security interest becomes illegal.

"*<u>Excluded Subsidiary</u>*" shall mean, collectively, each Subsidiary of the Borrower (other than, in any event, any Subsidiary that was, at any time *prior* to the relevant date of determination, a Guarantor and/or an Obligor (as such term is defined in the Security Agreement)):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prohibited by Applicable Laws from providing a Guarantee of the Obligations and/or granting a Lien in favor of the Collateral Agent, for the benefit of the holders of the Obligations, in substantially all of its Property (other than any Excluded Property);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a Regulated Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a Foreign Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) an Immaterial Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent that the Administrative Agent, the Collateral Agent and the Borrower mutually determine and agree in writing that the costs and/or burden (including tax and/or regulatory burdens, if applicable) of obtaining a Guarantee by such Subsidiary of the Obligations would outweigh the benefit to the holders of the Obligations of obtaining such Guarantee.

"*<u>Excluded Taxes</u>*" shall mean any of the following Taxes imposed on, or with respect to, a Recipient or required to be withheld or deducted from a payment to a Recipient:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Taxes imposed on, or measured by, net income (however denominated), profits, or overall gross income or receipts, franchise or similar Taxes, and branch profits Taxes, in each case,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that are Other Connection Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to, or for the account of, such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under <u>Section</u> <u>2.17</u>), or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender changes its lending office,

except, in each case, to the extent that, pursuant to <u>Section</u> <u>3.3</u>, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Taxes attributable to such Recipient's failure to comply with <u>Section</u> <u>3.3(f</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any U.S. federal withholding Taxes imposed under FATCA.

"*<u>Facility</u>*" shall mean any real property including all buildings, fixtures or other improvements located on such real property now, hereafter or heretofore owned, leased, operated or used by any Credit Party, any Subsidiary or any other Regulated Entity, or any of their respective predecessors.

"*<u>FATCA</u>*" shall mean Sections 1471 through 1474 of the Internal Revenue Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and *not* materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code.

"*<u>Federal Funds Rate</u>*" shall mean, for any day, the rate per annum (expressed, as a decimal, rounded upwards, if necessary, to the next higher one one-hundredth of one percent (0.01%)) equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the FRBNY on the Business Day next succeeding such day; <u>provided</u>, <u>that</u>, (a) if such day is *not* a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate charged to Regions Bank or any other Lender selected by the Administrative Agent on such day on such transactions as determined by the Administrative Agent.

"*<u>Federal Reserve Board</u>*" shall mean the Board of Governors of the Federal Reserve System (or any successor).

"*<u>Fee Letter</u>*" shall mean that certain fee letter agreement, dated as of September 19, 2024, by and among the Borrower, Regions Bank and Regions Capital Markets, a division of Regions Bank.

"*<u>FHLB</u>*" shall mean any federal home loan bank.

"*<u>Financial Covenants</u>*" shall mean, collectively, each of the financial covenants set forth in <u>Section</u> <u>8.8(a</u>), <u>Section</u> <u>8.8(b</u>) and <u>Section</u> <u>8.8(c</u>).

"*<u>Financial Officer Certification</u>*" shall mean, with respect to the financial statements for which such certification is required, the certification of the chief financial officer of the Borrower that such financial statements fairly present, in all material respects, the financial condition of the Credit Parties and Subsidiaries (including or excluding Regulated Entities, as so specified textually in the relevant instance of calculation) as of the dates indicated and the results of their operations and their cash flows for the periods indicated, subject to changes resulting from audit and normal year-end adjustments.

"*<u>Fiscal Quarter</u>*" shall mean a fiscal quarter of any Fiscal Year.

"*<u>Fiscal Year</u>*" shall mean the fiscal year of the Borrower ending on December 31 of each calendar year.

"*<u>Flood Hazard Property</u>*" shall mean any Real Estate Asset subject to a mortgage or deed of trust in favor of the Collateral Agent, for the benefit of the holders of the Obligations, and located in an area designated by the Federal Emergency Management Agency as having special flood or mud slide hazards.

------

"*<u>Floor</u>*" shall mean a rate of interest equal to zero percent (0.00%) per annum (subject to the proviso to the last sentence of <u>Section</u> <u>3.1(g)(v</u>)).

"*<u>Foreign Lender</u>*" shall mean a Lender that is *not* a U.S. Person.

"*<u>Foreign Subsidiary</u>*" shall mean any Subsidiary that: (a) is *not* a Domestic Subsidiary; (b) is a FSHCO; or (c) is a direct or indirect Subsidiary of a CFC (other than any such Subsidiary treated as a C-corporation for U.S. federal income tax purposes).

"*<u>FRBNY</u>*" shall mean the Federal Reserve Bank of New York (or any successor).

"*<u>Fronting Exposure</u>*" shall mean, at any time there is a Defaulting Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to the Issuing Bank, such Defaulting Lender's Revolving Commitment Percentage of the outstanding Letter of Credit Obligations with respect to Letters of Credit issued by the Issuing Bank, other than Letter of Credit Obligations as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to the Swingline Lender, such Defaulting Lender's Revolving Commitment Percentage of outstanding Swingline Loans made by the Swingline Lender, other than Swingline Loans as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders.

"*<u>FSHCO</u>*" shall mean any Domestic Subsidiary that does *not* own any material Property other than the Equity Interests in, and/or Indebtedness (if any) of, one (1) or more CFCs (or other FSHCOs).

"*<u>Fund</u>*" shall mean any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.

"*<u>Funded Debt</u>*" shall mean, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all obligations for borrowed money, whether current or long-term (including the Obligations hereunder), all obligations evidenced by bonds, debentures, notes, loan or credit agreements or other similar instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all obligations in respect of the deferred purchase price of Property or services (other than trade accounts payable in the ordinary course of business and, in each case, *not* past due for *more than* sixty (60) calendar days), including, without limitation, any Earn Out Obligations recognized as a liability on the balance sheet of such Person in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all unreimbursed obligations of such Person with respect to draw amounts under letters of credit, bankers' acceptances and similar instruments (including bank guaranties);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Attributable Principal Amount of Capital Leases, Synthetic Leases, Securitization Transactions and Sale and Leaseback Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Disqualified Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all Funded Debt of others secured by (or for which the holder of such Funded Debt has an existing right, contingent or otherwise, to be secured by) any Lien on, or payable out of the proceeds of production from, Property owned or acquired by such Person, whether or not the obligations secured thereby have been assumed;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all Guarantees in respect of Funded Debt of another Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Funded Debt of any partnership or joint venture or other similar entity in which such Person is a general partner or joint venturer, and, as such, has personal liability for such obligations, but only to the extent there is recourse to such Person for payment thereof.

For purposes hereof, the amount of Funded Debt shall be determined based on: (i) the outstanding principal amount thereof, in the case of borrowed money indebtedness under <u>clause (a</u>) above and purchase money indebtedness and deferred purchase obligations under <u>clause (b</u>) above; and (ii) the amount of Funded Debt that is the subject of such Guarantees, in the case of Guarantees under <u>clause (g</u>) above.

"*<u>Funding Notice</u>*" shall mean a notice substantially in the form of <u>Exhibit 2.1</u>.

"*<u>GAAP</u>*" shall mean, subject to the limitations on the application thereof set forth in <u>Section</u> <u>1.2</u>, accounting principles generally accepted in the United States in effect as of the date of determination thereof.

"*<u>Governmental Acts</u>*" shall mean any act or omission, whether rightful or wrongful, of any present or future *de jure* or *de facto* government or Governmental Authority.

"*<u>Governmental Authority</u>*" shall mean the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank and any group or body charged with setting financial accounting or regulatory capital rules or standards).

"*<u>Governmental Authorization</u>*" shall mean any permit, license, authorization, plan, directive, consent order or consent decree of or from any Governmental Authority.

"*<u>Guarantee</u>*" shall mean, as to any Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any obligation, contingent or otherwise, of such Person guaranteeing, or having the economic effect of guaranteeing, any Indebtedness or other obligation payable or performable by another Person (the "*<u>primary obligor</u>*") in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to purchase or lease Property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien).

------

The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term "*Guarantee*" as a verb has a corresponding meaning.

"*<u>Guaranteed Obligations</u>*" shall have the meaning specified for such term in <u>Section</u> <u>4.1</u>.

"*<u>Guarantor Joinder Agreement</u>*" shall mean a guarantor joinder agreement substantially in the form of <u>Exhibit 7.14</u> delivered by a Domestic Subsidiary pursuant to <u>Section</u> <u>7.14</u>.

"*<u>Guarantors</u>*" shall mean: (a) each existing and future direct and indirect Domestic Subsidiary that is *not* an Excluded Subsidiary; (b) each Person identified as a "*Guarantor*" on the signature pages to this Agreement; (c) each other Person that joins as a Guarantor pursuant to <u>Section</u> <u>7.14</u>; (d) with respect to (i) Secured Swap Obligations, (ii) Secured Treasury Management Obligations, and (iii) Swap Obligations of a Specified Credit Party (determined before giving effect to <u>Section</u> <u>4.1</u> and <u>Section</u> <u>4.8</u>) under the Guaranty hereunder, the Borrower; and (e) their successors and permitted assigns.

"*<u>Guaranty</u>*" shall mean the Guarantee made by the Guarantors in favor of the Administrative Agent, the Lenders and the other holders of the Obligations pursuant to <u>Article 4</u>.

"*<u>Hazardous Materials</u>*" shall mean any hazardous substances defined by the Comprehensive Environmental Response Compensation and Liability Act, 42 USCA 9601, *et seq*., as amended ("<u>CERCLA</u>"), including any hazardous waste as defined under 40 C.F.R. Parts 260–270, gasoline or petroleum (including crude oil or any fraction thereof), asbestos or polychlorinated biphenyls.

"*<u>Hazardous Materials Activity</u>*" shall mean any past, current, proposed or threatened activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, presence, existence, location, Release, threatened Release, discharge, placement, generation, transportation, processing, construction, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.

"*<u>Highest Lawful Rate</u>*" shall mean the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under Applicable Laws relating to any Lender which are currently in effect or, to the extent allowed under such Applicable Laws, which may hereafter be in effect and which allow a higher maximum non-usurious interest rate than Applicable Laws now allow.

"*<u>Immaterial Subsidiary</u>*" shall mean, as of any date of determination, each Subsidiary that has been designated by the Borrower, in writing to the Administrative Agent, as an "*Immaterial Subsidiary*" for purposes of this Agreement (and *not* re-designated as a Material Subsidiary as provided below), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for purposes of this Agreement and the other Credit Documents, at no time shall

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the aggregate book value of the total Property of (I) all Immaterial Subsidiaries, as of the last day of the most recently ended Trailing Period, *equal* or *exceed* five percent (5.0%), or (II) any individual Immaterial Subsidiary, as of the last day of the most recently ended Trailing Period, *equal* or *exceed* two and one-half of one percent (2.5%), in each case of the foregoing <u>clauses (a)(i)(A)(I</u>) and (<u>a)(i)(A)(II</u>), of the aggregate book value of the total Property of the Credit Parties and Subsidiaries as of such date, or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the gross revenues of (I) all Immaterial Subsidiaries for the most recently ended Trailing Period *equal* or *exceed* five percent (5.0%), or (II) any individual Immaterial Subsidiary for the most recently ended Trailing Period *equal* or *exceed* two and one-half of one percent (2.5%), in each case of the foregoing <u>clauses (a)(i)(B)(I</u>) and (<u>a)(i)(B)(II</u>), of the gross revenues of the Credit Parties and Subsidiaries for such period,

in each case of the foregoing <u>clauses (a)(i)(A</u>) and (<u>a)(i)(B</u>), determined on a consolidated basis in accordance with GAAP, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the portion of Consolidated EBITDA, recomputed as of the last day of the most recently ended Trailing Period, attributable to the operations of (I) all Immaterial Subsidiaries, taken together, *equal* or *exceed* five percent (5.0%), or (II) any individual Immaterial Subsidiary *equal* or *exceed* two and one-half of one percent (2.5%), in each case of the foregoing <u>clauses</u> <u>(a)(i)(C)(I</u>) and (<u>a)(i)(C)(II</u>), of Consolidated EBITDA for such period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower shall *not* designate any new Immaterial Subsidiary if such designation would *not* comply with the provisions set forth in the foregoing <u>clause (a)(i</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the event that, on any Subsidiary Determination Date, the aggregate book value of the total Property, gross revenues or attributable portion of Consolidated EBITDA of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) all Subsidiaries so designated by the Borrower as "*Immaterial Subsidiaries*" (and *not* re-designated as "*Material Subsidiaries*"), taken together, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any individual Subsidiary so designated by the Borrower as an "*Immaterial Subsidiary*" (and *not* re-designated as a "*Material Subsidiary*"),

shall, in any such case of the foregoing <u>clauses (a)(iii)(A</u>) or (<u>a)(iii)(B</u>), *exceed* the respective limits set forth in the foregoing <u>clause (a)(i</u>), then the Borrower shall, promptly and, in any event, within five (5) Business Days after the applicable Subsidiary Determination Date, re-designate one (1) or more Immaterial Subsidiaries as Material Subsidiaries by providing written notice of such re-designation(s) to the Administrative Agent, so that (immediately after giving effect to such re-designation(s)) the aggregate book value of total Property, gross revenues and attributable portion of Consolidated EBITDA of (I) all Subsidiaries still designated as "*Immaterial Subsidiaries*", taken together, and (II) each individual Subsidiary still designated as an "*Individual Subsidiary*", in each case of the foregoing <u>clauses (a)(iii)(I</u>) and (<u>a)(iii)(II</u>), shall *not exceed* such respective limits; and <u>further</u> (and for purposes of clarity), upon any such re-designation made in accordance with the foregoing of this definition, each individual Subsidiary so re-designated shall be required to become a Guarantor in accordance with <u>Section</u> <u>7.14</u> (it being understood and agreed that the forty-five (45) calendar day period referred to in such Section shall be deemed to have commenced as of the applicable Subsidiary Determination Date); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower may designate and re-designate a Subsidiary as an Immaterial Subsidiary at any time, subject to the restrictions and limitations set forth in the foregoing <u>clause (a</u>).

"*<u>Incremental Cap</u>*" shall mean, as of any date of determination, the *difference* between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fifty Million Dollars ($50,000,000); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the aggregate original principal or committed amount of all Incremental Facilities previously established and/or incurred as of such date.

"*<u>Incremental DDTL Increase</u>*" shall mean any increase in the Aggregate DDTL Commitment Amount established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>).

------

"*<u>Incremental Facility</u>*" shall mean any Incremental Revolver Increase, any Incremental Term Loan A Increase, any Incremental DDTL Increase, or any other Incremental Term Loan.

"*<u>Incremental Facility Agreement</u>*" shall mean, with respect to any Incremental Facility, the definitive amendment, credit, commitment, joinder and/or other legal documentation executed and delivered by the Borrower pursuant to which such Incremental Facility is established, which amendment, credit, commitment, joinder and/or other legal documentation shall be in form and detail reasonably satisfactory to the Administrative Agent.

"*<u>Incremental Revolver Increase</u>*" shall mean any increase in the Aggregate Revolving Commitment Amount established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>).

"*<u>Incremental Term Loan</u>*" shall mean any additional Term Loan established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>) (including, for purposes of clarity, (i) any additional advance under the Term Loan A or the Delayed Draw Term Loan established in connection with an Incremental Term Loan A Increase or an Incremental DDTL Increase, as well as (ii) any additional Term Loan of a separate Class established after the Closing Date pursuant to such Section).

"*<u>Incremental Term Loan A Increase</u>*" shall mean any increase in the Aggregate Term Loan A Commitment Amount established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>).

"*<u>Incremental Term Loan Commitment</u>*" shall mean, with respect to any Person(s) identified as an "*Incremental Lender*" (or substantially similar designation) in respect of an Incremental Term Loan in the Incremental Facility Agreement establishing such Incremental Term Loan, the respective commitment of such Person(s) (together with their respective successors and permitted assigns) to advance their respective portion of principal under such Incremental Term Loan in accordance with the terms of such Incremental Facility Agreement and this Agreement; <u>provided</u>, <u>that</u>, at any time after the establishment and incurrence of such Incremental Term Loan, the determination of "*Required Lenders*" shall thereafter include the aggregate outstanding principal balance of such Incremental Term Loan.

"*<u>Incremental Term Loan Commitment Percentage</u>*" shall mean, with respect to each Lender at any time and for any Incremental Term Loan, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the *sum of* (i) the amount of such Lender's Incremental Term Loan Commitment (if any) in respect of such Incremental Term Loan in effect at such time, *plus* (ii) the aggregate principal balance of the portion of such Incremental Term Loan advanced by such Lender that is outstanding at such time; and (b) the *denominator* of which is the *sum of* (i) the aggregate amount of the Incremental Term Loan Commitments of all of the Lenders, taken together, in respect of such Incremental Term Loan in effect at such time, *plus* (ii) the aggregate outstanding principal balance of such Incremental Term Loan at such time.

"*<u>Indebtedness</u>*" shall mean, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Funded Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) net obligations under any Swap Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Guarantees in respect of Indebtedness of another Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Indebtedness of the types referred to in <u>clauses (a</u>) through (<u>c</u>) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or joint venturer, unless such Indebtedness is expressly made non-recourse to such Person.

------

For purposes hereof, the amount of Indebtedness shall be determined based on the Swap Termination Value in the case of net obligations under any Swap Agreement pursuant to <u>clause (b</u>) above.

"*<u>Indemnified Taxes</u>*" shall mean: (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by, or on account of, any obligation of any Credit Party under any Credit Document; and (b) to the extent *not* otherwise described in <u>clause (a</u>), Other Taxes.

"*<u>Indemnitee</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.2(b</u>).

"*<u>Insurance Regulatory Authority</u>*" shall mean, with respect to any Regulated Entity, the insurance department or similar Governmental Authority charged with regulating insurance companies or insurance holding companies, in its jurisdiction of domicile and, to the extent that it has regulatory authority over such Regulated Entity, in each other jurisdiction in which such Regulated Entity conducts business or is licensed to conduct business.

"*<u>Intellectual Property</u>*" shall mean all trademarks, service marks, trade names, copyrights, patents, patent rights, franchises related to intellectual property, licenses related to intellectual property and other intellectual property rights.

"*<u>Interest Payment Date</u>*" shall mean, with respect to: (a) any Base Rate Loan and any Swingline Loan, (i) the last Business Day of each calendar quarter, commencing on the first (1<sup>st</sup>) such date to occur after the Closing Date, (ii) the Revolving Commitment Termination Date, (iii) the DDTL Commitment Termination Date, and (iv) the applicable Maturity Date therefor; and (b) any SOFR Loan, (i) the last day of each Interest Period applicable to such Loan, <u>provided</u>, <u>that</u>, in the case of each Interest Period of longer than three (3) months "*Interest Payment Date*" shall also include each date that is three (3) months, or an integral multiple thereof, after the commencement of such Interest Period, (ii) the Revolving Commitment Termination Date, (iii) the DDTL Commitment Termination Date, and (iv) the applicable Maturity Date therefor.

"*<u>Interest Period</u>*" shall mean, in connection with a SOFR Loan, an interest period of one (1), three (3) or six (6) months (in each case, subject to availability), as selected by the Borrower in the applicable Funding Notice or Conversion / Continuation Notice, (a) initially, commencing on the Credit Date or Conversion / Continuation Date thereof, as the case may be, and (b) thereafter, commencing on the day on which the immediately preceding Interest Period expires, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if an Interest Period would otherwise expire on a day that is *not* a Business Day, such Interest Period shall expire on the next succeeding Business Day unless no further Business Day occurs in such month, in which case, such Interest Period shall expire on the immediately preceding Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall, subject to <u>clause (iii</u>) below, end on the last Business Day of a calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no Interest Period with respect to any Term Loan shall extend beyond any principal amortization payment date, except to the extent that the portion of such Term Loan that is comprised of SOFR Loans that is expiring prior to the applicable principal amortization payment date *equals* or *exceeds* the amount of the principal amortization payment then due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) no Interest Period with respect to any portion of the Revolving Loans shall extend beyond the Revolving Commitment Termination Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no Interest Period with respect to any portion of the Delayed Draw Term Loan shall extend beyond the DDTL Commitment Termination Date.

------

---

| | |
|:---|:---|
| "*<u>Interest</u>* | *<u>Rate Determination Date</u>*" shall mean, with respect to any Interest Period, the date that is two (2) Business Days prior to the first (1<sup>st</sup>) day of such Interest Period.  |

---

"*<u>Internal</u>* *<u>Revenue Code</u>*" shall mean the Internal Revenue Code of 1986.

---

| | |
|:---|:---|
| "*<u>Investment</u>*" | shall mean, as to any Person, any direct or indirect acquisition of or relating to, or investment by, such Person (including pursuant to any merger with any Person that was *not* a Wholly Owned Subsidiary prior to such merger), whether by means of:  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the purchase or other acquisition of Equity Interests of another Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such other Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an Acquisition.

For purposes of calculating compliance with any of the Financial Covenants (and, for purposes of any calculations substantially based on, or derivative from, such compliance), the amount of any Investment shall be deemed to be the amount *actually* invested, without adjustment for subsequent increases or decreases in the value of such Investment. For the avoidance of doubt, any forgiveness (in whole or in part) by the Credit Parties (or any of them) of any fees otherwise owed by, or on behalf of, any Regulated Entity, on the one hand, to, or for the benefit of, the Credit Parties (or any of them), on the other hand, pursuant to any managing general agent, service company or attorney-in-fact agreement between any such Regulated Entity, on the one hand, and the Credit Parties (or any of them), on the other hand, shall, in any such case of the foregoing, constitute an "*Investment*" by such Credit Party or Credit Parties (as applicable) in such Regulated Entity, in the aggregate amount of such fees that are so forgiven.

"*<u>Involuntary Disposition</u>*" shall mean the receipt by any Credit Party, any Subsidiary, or any other Regulated Entity of any cash insurance proceeds or condemnation awards payable by reason of theft, loss, physical destruction or damage, taking or similar event with respect to any of its Property.

<u>"*IRS*"</u> shall mean the United States Internal Revenue Service.

"*<u>ISP</u>*" shall mean, with respect to any Letter of Credit, the "International Standby Practices 1998" published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance of such Letter of Credit).

"*<u>Issuance Notice</u>*" shall mean an Issuance Notice substantially in the form of <u>Exhibit 2.3</u>.

"*<u>Issuer Documents</u>*" shall mean with respect to any Letter of Credit, the Letter of Credit Application, and any other document, agreement and instrument entered into by the Issuing Bank and any Credit Party, any Subsidiary or any other Regulated Entity, or otherwise in favor of the Issuing Bank and relating to such Letter of Credit.

"*<u>Issuing Bank</u>*" shall mean Regions Bank in its capacity as issuer of Letters of Credit hereunder, together with its permitted successors and assigns in such capacity.

"*<u>Junior Debt</u>*" shall mean any Funded Debt of any Credit Party, Subsidiary or other Regulated Entity that is: (a) unsecured; (b) secured by any or all of the Collateral and subordinated in respect of lien priority to the Liens granted in favor of the Collateral Agent, for the benefit of the holders of the Obligations; or (c) subordinated in right of payment to the prior payment of any or all of the Obligations.

------

"*<u>Latest Maturity Date</u>*" shall mean, as of any date of determination, the *latest* to occur of: (a) the Revolving Commitment Termination Date; (b) the DDTL Commitment Termination Date; and (c) the latest Maturity Date applicable to any Term Loan.

"*<u>Leasehold Property</u>*" shall mean any leasehold interest of any Credit Party, as lessee or tenant, in any Real Estate Asset, or any Property right pursuant to a lease, rental, easement, servitude or similar agreement, however termed, in each case now held or hereafter acquired.

"*<u>Lenders</u>*" shall mean, collectively, each financial institution with a Commitment, together with its successors and permitted assigns. The initial Lenders as of the Closing Date are identified on the signature pages to this Agreement.

"*<u>Letter of Credit</u>*" shall mean any standby letter of credit issued hereunder.

"*<u>Letter of Credit Application</u>*" shall mean an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the Issuing Bank.

"*<u>Letter of Credit Borrowing</u>*" shall mean any Credit Extension resulting from a drawing under any Letter of Credit that has *not* been reimbursed or refinanced as a Borrowing of Revolving Loans.

"*<u>Letter of Credit Fees</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.10(b)(i</u>).

"*<u>Letter of Credit Obligations</u>*" shall mean, at any time, the *sum of*: (a) the maximum amount available to be drawn under Letters of Credit then outstanding, assuming compliance with all requirements for drawings referenced therein; *plus* (b) the aggregate amount of all drawings under Letters of Credit that have *not* been reimbursed by the Borrower, including Letter of Credit Borrowings. For all purposes of this Agreement, (i) amounts available to be drawn under Letters of Credit will be calculated as provided in <u>Section</u> <u>1.3(i</u>), and (ii) if a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be "outstanding" in the amount so remaining available to be drawn.

"*<u>Letter of Credit Sublimit</u>*" shall mean, as of any date of determination, the aggregate unused amount of the Revolving Commitments then in effect.

"*<u>Lien</u>*" shall mean: (a) any lien, mortgage, pledge, assignment, security interest, charge or encumbrance of any kind (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, and any lease or license in the nature thereof) and any option, trust or other preferential arrangement having the practical effect of any of the foregoing; and (b) in the case of Securities, any purchase option, call or similar right of a third party with respect to such Securities.

"*<u>Liquidity</u>*" shall mean, as of any date of determination, the *sum of*: (a) unrestricted cash and Cash Equivalents held by the Credit Parties on such date; *plus* (b) the aggregate amount actually available to be drawn by the Borrower under the Aggregate Revolving Commitments on such date. For the avoidance of doubt, the terms "*cash*" and "*Cash Equivalents*" as used in this definition shall only apply to any such Property that is directly owned by a Credit Party, and shall *not* include any amounts of consolidated or combined cash and/or Cash Equivalents consisting of funds owned by: (i) a Subsidiary (including any Regulated Subsidiary) that is *not* a Credit Party; or (ii) any other Regulated Entity.

"*<u>Loan</u>*" shall mean any Revolving Loan, any Swingline Loan or any Term Loan, and the Base Rate Loans and SOFR Loans comprising such Loans.

"*<u>Margin Stock</u>*" shall have the meaning specified for such term in Regulation U of the Federal Reserve Board, as in effect from time to time.

------

"*<u>Master Agreement</u>*" shall have the meaning specified for such term in the definition of "*Swap Agreement*" below.

"*<u>Material Adverse Effect</u>*" shall mean any effect, event, condition, action, omission, change or state of facts that, individually or in the aggregate, has resulted in, or could reasonably be expected to result in, a material adverse effect with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the business operations, assets, Property or financial condition of the Credit Parties, Subsidiaries and other Regulated Entities, taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the ability of the Credit Parties, taken as a whole, to fully and timely perform the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the legality, validity, binding effect, or enforceability against a Credit Party of any Credit Document to which it is a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the value of the whole, or any material part, of the Collateral, or the priority of Liens in the whole, or any material part, of the Collateral in favor of the Collateral Agent, for the benefit of the holders of the Obligations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the material rights, remedies and benefits available to, or conferred upon, the Agent, any Lender, and/or any other holder of Obligations under any Credit Document.

"*<u>Material Contract</u>*" shall mean: (a) any managing general agent or service company agreement entered into between any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the one hand, and any Regulated Entity, on the other hand; (b) any attorney-in-fact agreement entered into between any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the one hand, and any Qualifying Reciprocal Entity, on the other hand; and (c) any other Contractual Obligation to which any Credit Party, any Subsidiary or any other Regulated Entity, or any of their respective Properties, are bound (other than those evidenced by the Credit Documents) pursuant to which a default, breach or termination thereof could reasonably be expected to result in a Material Adverse Effect.

"*<u>Material Subsidiary</u>*" shall mean, as of any date of determination, each Subsidiary that is *not* an Immaterial Subsidiary.

"*<u>Maturity Date</u>*" shall mean: (a) with respect to the Term Loan A and the Delayed Draw Term Loan, the *earlier* to occur of (i) the date that is the fifth (5<sup>th</sup>) anniversary of the Closing Date (or, if such date is *not* a Business Day, the immediately prior Business Day), and (ii) the date on which the aggregate outstanding principal balance(s) of the Term Loan A and/or the Delayed Draw Term Loan (as applicable) have been declared, or automatically have become, due and payable pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise); and (b) with respect to any Incremental Term Loan, the *earlier* to occur of (i) the maturity date identified in the applicable Incremental Facility Agreement establishing such Incremental Term Loan, and (ii) the date on which the aggregate outstanding principal balance of such Incremental Term Loan has been declared, or automatically has become, due and payable pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise).

"*<u>Moody</u>*<u>'</u>*<u>s</u>*" shall mean Moody's Investor Services, Inc., together with its successors.

"*<u>Mortgages</u>*" shall mean the mortgages, deeds of trust or deeds to secure debt that purport to grant to the Collateral Agent, for the benefit of the holders of the Obligations, a security interest in any Real Estate Asset.

"*<u>Multiemployer Plan</u>*" shall mean any "multiemployer plan" as defined in Section 3(37) of ERISA which is sponsored, maintained or contributed to by, or required to be contributed to by, any of the Credit Parties, Subsidiaries or Regulated Entities, or any of their respective ERISA Affiliates, or with respect to which any of the Credit Parties, Subsidiaries or Regulated Entities, or any of their respective ERISA Affiliates, previously sponsored, maintained or contributed to or was required to contributed to, and still has liability.

------

"*<u>NAIC</u>*" shall mean the National Association of Insurance Commissioners (or any successor to any of its principal functions).

"*<u>Net Cash Proceeds</u>*" shall mean the aggregate proceeds paid in cash or Cash Equivalents received by any Credit Party, any Subsidiary or any other Regulated Entity in connection with any Specified Transaction, net of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) direct costs incurred or estimated costs for which reserves are maintained, in connection therewith (including legal, accounting and investment banking fees and expenses, sales commissions and underwriting discounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) estimated Taxes paid or payable (including sales, use or other transactional taxes and any net marginal increase in income taxes) as a result thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the amount required to retire any Indebtedness secured by a Lien on related Property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reasonable reserves in accordance with GAAP for any liabilities or indemnification payments (fixed or contingent) attributable to seller's indemnities and representations and warranties to purchasers and other retained liabilities in respect of any Asset Sale undertaken by any Credit Party, any Subsidiary or any other Regulated Entity; <u>provided</u>, <u>that</u>, to the extent that any such amount ceases to be so reserved (other than any reduction in such reserve to make a payment in respect of such liability or indemnification obligations), the amount thereof shall be deemed to be Net Cash Proceeds of such Asset Sale at such time.

For purposes hereof, "*Net Cash Proceeds*" includes any cash or Cash Equivalents received upon the disposition of any non-cash consideration received by any Credit Party, any Subsidiary or any other Regulated Entity in any Specified Transaction.

"*<u>Non</u>*<u>-</u>*<u>Consenting Lender</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.17</u>.

"*<u>Non</u>*<u>-</u>*<u>Defaulting Lender</u>*" shall mean, at any time, each Lender that is *not* a Defaulting Lender at such time.

"*<u>Non</u>*<u>-</u>*<u>Qualifying Reinsurer</u>*" shall mean any reinsurer that is *not* a Qualifying Reinsurer.

"*<u>Note</u>*" shall mean a promissory note in the form of <u>Exhibit 2.5</u> issued by the Borrower in favor of a Lender, as such promissory note may be amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time.

"*<u>Notice</u>*" shall mean a Funding Notice, an Issuance Notice or a Conversion / Continuation Notice.

"*<u>Obligations</u>*" shall mean all obligations, indebtedness and other liabilities of every nature of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Credit Party from time to time owing to the Agents (including any former Agents), the Issuing Bank, the Lenders (including former Lenders in their capacity as such) or any of them, the Qualifying Swap Providers and the Qualifying Treasury Management Banks under any Credit Document, any Secured Swap Agreement or any Secured Treasury Management Agreement, and (without duplication)

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each Subsidiary and other Regulated Entity from time to time owing to the Qualifying Swap Providers and the Qualifying Treasury Management Banks under any Secured Swap Agreement or ant Secured Treasury Management Agreement,

in each case of the foregoing <u>clause (a</u>) and (<u>b</u>), together with all renewals, extensions, modifications or refinancings thereof, whether for principal, interest (including fees and interest which, but for the filing of a petition in bankruptcy with respect to such Credit Party, Subsidiary or other Regulated Entity, would have accrued on any Obligation, whether or not a claim is allowed against such Credit Party, Subsidiary or other Regulated Entity for such interest or fees in the related bankruptcy proceeding), reimbursement of amounts drawn under Letters of Credit, payments for early termination of Swap Agreements, fees, expenses, indemnification or otherwise, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Erroneous Payment Subrogation Rights;

<u>provided</u>, <u>that</u>, the "*<u>Obligations</u>*" of a Credit Party, Subsidiary or other Regulated Entity shall *exclude* any Excluded Swap Obligations with respect to such Credit Party, Subsidiary or other Regulated Entity. Notwithstanding anything to the contrary contained herein or under any of the other Credit Documents, the obligations of any Credit Party, any Subsidiary or any other Regulated Entity under any Secured Swap Agreement or any Secured Treasury Management Agreement shall be secured and guaranteed pursuant to the Credit Documents only to the extent that, and for so long as, the Obligations (other than any Obligations with respect to Secured Swap Agreements and Secured Treasury Management Agreements) are so secured and guaranteed.

"*<u>OFAC</u>*" shall mean the U.S. Department of the Treasury's Office of Foreign Assets Control.

"*<u>Organizational Documents</u>*" shall mean, with respect to: (a) any corporation, its certificate or articles of incorporation or organization, as amended, and its by-laws, as amended; (b) any limited partnership, its certificate of limited partnership, as amended, and its partnership agreement, as amended; (c) any general partnership, its partnership agreement, as amended; and (d) any limited liability company, its articles of organization, certificate of formation or comparable documents, as amended, and its operating agreement, as amended. In the event any term or condition of this Agreement or any other Credit Document requires any Organizational Document to be certified by a secretary of state or similar governmental official, the reference to any such "*Organizational Document*" shall only be to a document of a type customarily certified by such governmental official.

"*<u>Other Connection Taxes</u>*" shall mean, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Credit Document, or sold or assigned an interest in any Loan or Credit Document).

"*<u>Other Taxes</u>*" shall mean all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Credit Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to <u>Section</u> <u>2.17</u>).

"*<u>Participant</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.5(d</u>).

"*<u>Participant Register</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.5(d</u>).

"*<u>Patriot Act</u>*" shall have the meaning specified for such term in <u>Section</u> <u>6.15(f</u>).

------

"*<u>Payment Event of Default</u>*" shall mean an Event of Default pursuant to <u>Section p.1(a</u>).

The "*<u>Payment in Full</u>*" of the Obligations (or any specified Class thereof), and the Obligations (or any specified Class thereof) being "*<u>Paid in Full</u>*", shall, in each case, mean the expiration or earlier termination of all of the Commitments (or of all of the Commitments of the specified Class thereof, as applicable), the payment in full, in immediately available funds, of all of the Obligations (or such specified Class thereof), and, as applicable, the expiration or earlier termination (or Cash Collateralization to the satisfaction of the Issuing Bank) of all Letters of Credit (in each case, without any pending draw) and the reimbursement of all other Letter of Credit Obligations, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) contingent indemnification and expense reimbursement Obligations, in each case of this <u>clause</u> <u>(a</u>), *solely* to the extent that no claim(s) giving rise thereto have been asserted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) obligations, indebtedness and other liabilities under any Secured Swap Agreement or any Secured Treasury Management Agreement owed by any Credit Party, any Subsidiary, or any other Regulated Entity to any Qualifying Swap Provider or any Qualifying Treasury Management Bank (as applicable), *solely* to the extent that security, guarantee and/or other arrangements satisfactory to such Qualifying Swap Provider or such Qualifying Treasury Management Bank with respect to such obligations, indebtedness and other liabilities shall have been made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) contingent Obligations for which (i) Cash Collateral, (ii) backstopping letters of credit, or (iii) other arrangements have been made, in each case of the foregoing <u>clauses (c)(i</u>) through (<u>c)(iii</u>), that are satisfactory to the holder(s) of such contingent Obligations.

"*<u>Payment Recipient</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(a</u>).

"*<u>PBGC</u>*" shall mean the Pension Benefit Guaranty Corporation or any successor thereto.

"*<u>Pension Plan</u>*" shall mean any "employee pension benefit plan" as defined in Section 3(2) of ERISA other than a Multiemployer Plan, which is subject to Section 412 of the Internal Revenue Code or Section 302 of ERISA and which is sponsored, maintained or contributed to by, or required to be contributed to by, any Credit Party, any Subsidiary or any other Regulated Entity, or with respect to which any Credit Party, any Subsidiary or any other Regulated Entity previously sponsored, maintained or contributed to, or was required to contribute to, and still has liability.

"*<u>Periodic Term SOFR Determination Date</u>*" shall have the meaning specified for such term in the definition of "*Term SOFR*" below.

"*<u>Permitted Acquisition</u>*" shall mean (x) any portfolio investment made by any Regulated Entity in the ordinary course of business, as well as (y) any Acquisition that, *solely* in the case of this <u>clause (y</u>), satisfies each of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Property to be acquired (or the Property of the Person to be acquired) in such Acquisition is a business, or is used or useful in a business, permitted under <u>Section</u> <u>8.14</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the board of directors (or other comparable governing body) of the Person to be acquired (or owning the Property to be acquired) shall have approved the Acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) both immediately *before* and immediately *after* giving effect to such Acquisition (and to the payment of all cash consideration and any incurrence or assumption of Indebtedness in connection therewith, but without giving effect to any "netting" of the cash proceeds thereof against Consolidated Funded Debt):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default shall exist and be continuing;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the representations and warranties made by each of the Credit Parties in each Credit Document to which they are a party shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) as if made on, and as of, the date of consummation of such Acquisition (after giving effect thereto), except to the extent that such representations and warranties expressly relate to an earlier date, in which case, such representations and warranties shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Credit Parties shall be in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis, shall be *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the maximum Consolidated Leverage Ratio then permitted under <u>Section</u> <u>8.8(a</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) there shall be *at least* Ten Million Dollars ($10,000,000) of Liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the aggregate cash and non-cash consideration (including any assumption of Indebtedness, deferred purchase price and any Earn Out Obligations and any equity consideration) paid by the Credit Parties, Subsidiaries and other Regulated Entities (and including, for purposes of clarity, any such Captive Reinsurance Companies) for all such Acquisitions occurring during the term of this Agreement shall *not exceed* twenty-five percent (25.0%) of the consolidated stockholders' equity of the Credit Parties, Subsidiaries and other Regulated Entities (determined based on the consolidated financial statements most recently delivered to the Administrative Agent pursuant to this Agreement at the time of consummation of any such Acquisition); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *at least* five (5) Business Days prior to the consummation of such Acquisition, an Authorized Officer of the Borrower shall provide a certificate, in form and detail reasonably satisfactory to the Administrative Agent, affirming compliance with each of the items set forth in <u>clauses (a</u>) through (<u>d</u>) above.

"*<u>Permitted Holders</u>*" shall mean, collectively: (a) each of (i) David Flitman, an individual resident of the state of Florida, and (ii) Steven Hoffman, an individual resident of the state of Florida; and (b) any trust or other estate-planning vehicle established for the benefit of (i) any such individual referred to in the foregoing <u>clause</u> <u>(a</u>), or (ii) any other individual having a relationship by blood (to the second (2<sup>nd</sup>) degree of consanguinity), marriage, or adoption to any such individual referred to in the foregoing <u>clause (a</u>), and, in each case of the foregoing <u>clauses (b)(i</u>) and (<u>b)(ii</u>), in respect of which such individual referred to in the foregoing <u>clause (a</u>) serves as sole trustee or in a similar capacity.

"*<u>Permitted Liens</u>*" shall mean each of the Liens permitted pursuant to <u>Section</u> <u>8.2</u>.

"*<u>Permitted Refinancing</u>*" shall mean, with respect to any existing Indebtedness, any extension, renewal, refinancing and/or replacement of any such Indebtedness, so long as any such extension, renewal, refinancing and/or replacement of such Indebtedness:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has market terms and conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has a maturity date that is *later than* that of the Indebtedness being extended, renewed or refinanced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) has an average life to maturity that is *greater than* that of the Indebtedness being extended, renewed or refinanced;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) does *not* include an obligor that was *not* an obligor with respect to the Indebtedness being extended, renewed or refinanced, unless such obligor is also a Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) remains subordinated if, and to the same extent that, the Indebtedness being extended, renewed or refinanced was subordinated to the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) does *not exceed* in a principal amount the principal amount of the Indebtedness being renewed, extended, refinanced or replaced, *plus* accrued and unpaid interest and reasonable fees and expenses, premiums and penalties incurred in connection therewith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) is *not* incurred, created or assumed if any Default or Event of Default then exists or would arise therefrom.

"*<u>Person</u>*" shall mean any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"*<u>Platform</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.1(d</u>).

"*<u>Prime Rate</u>*" shall mean the per annum rate which the Administrative Agent publicly announces from time to time to be its prime lending rate, as in effect from time to time. The Administrative Agent's prime lending rate is a reference rate and does *not* necessarily represent the lowest or best rate charged to customers.

"*<u>Principal Office</u>*" shall mean, for the Administrative Agent, the Collateral Agent, the Swingline Lender and the Issuing Bank, such Person's "*Principal Office*" as set forth on <u>Appendix B</u>, or such other office as it may from time to time designate in writing to the Borrower and each Lender.

"*<u>Pro Forma Basis</u>*" shall mean, with respect to any Specified Transaction, whether actual or proposed, for purposes of determining compliance with any of the Financial Covenants (or with any condition(s) and/or test(s) based on such compliance that are subject to calculation on a "*Pro Forma Basis*" as indicated in this Agreement or any other Credit Document, including for purposes of determining the Applicable Margin), Consolidated EBITDA and/or Combined Statutory Surplus (or with any condition(s) and/or test(s) based on Consolidated EBITDA and/or Combined Statutory Surplus that are subject to calculation on a "*Pro Forma Basis*" as indicated in this Agreement or any other Credit Document), that such actual or proposed Specified Transaction shall be deemed to have occurred on, and as of, (I) the first (1<sup>st</sup>) day of the most recently ended Trailing Period, in the case of either of the Financial Covenants set forth in <u>Section</u> <u>8.8(a</u>) or <u>Section</u> <u>8.8(b</u>), or (II) the first (1<sup>st</sup>) day of the most recently ended Fiscal Quarter, in the case of the Financial Covenant set forth in <u>Section</u> <u>8.8(c</u>) (or, in any such case of the foregoing <u>clauses (I</u>) and (<u>II</u>), on, and as of, the first (1<sup>st</sup>) day of such other historical period of time as may be expressly specified in this Agreement or another Credit Document for a specific purpose), and <u>further</u>, the following pro forma adjustments shall be made:

(a) with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Asset Sale or Involuntary Disposition, income statement and cash flow statement items (whether positive or negative) attributable to the Property disposed of shall be *excluded* to the extent relating to any period occurring *prior* to the date of such Asset Sale or Involuntary Disposition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Acquisition, income statement items attributable to the Person or Property acquired shall be *included* to the extent relating to any period applicable in such calculations to the extent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) such items are *not* otherwise included in such income statement items for the Credit Parties, Subsidiaries and other Regulated Entities in accordance with GAAP or in accordance with any defined terms set forth in <u>Section</u> <u>1.1</u>; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) such items are supported by financial statements or other information satisfactory to the Administrative Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Indebtedness incurred or assumed by any Credit Party, any Subsidiary, or any other Regulated Entity (including the Person or Property acquired) in connection with such transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall be deemed to have been incurred as of the first (1<sup>st</sup>) day of the applicable period;

and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if such Indebtedness has a floating or formula rate, shall have an implied rate of interest for the applicable period for purposes of this definition determined by utilizing the rate that is, or would be, in effect with respect to such Indebtedness as of the relevant date of determination.

"*<u>Probable Maximum Loss</u>*" shall have the meaning specified and as used by each applicable Insurance Regulatory Authority.

"*<u>Property</u>*" shall mean an interest of any kind in any property or asset, whether real, personal or mixed, and whether tangible or intangible.

"*<u>PTE</u>*" shall mean a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"*<u>QFC</u>*" shall have the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. §–5390(c)(8)(D).

"*<u>QFC Credit Support</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

"*<u>Qualified ECP Guarantor</u>*" shall mean, in respect of any Swap Obligation, each Credit Party that, at the time the Guaranty (or grant of security interest, as applicable) becomes or would become effective with respect to such Swap Obligation, has total assets *exceeding* Ten Million Dollars ($10,000,000) or such other Credit Party as constitutes an "eligible contract participant" under the Commodity Exchange Act and which may cause another Person to qualify as an "eligible contract participant" with respect to such Swap Obligation at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

"*<u>Qualifying Reciprocal Entity</u>*" shall mean, collectively: (a) each of (i) Cajun Underwriters Reciprocal Exchange, and (ii) Manatee Insurance Exchange; and (b) any reciprocal insurance exchange or other similar entity (other than a Regulated Subsidiary or other risk-bearing insurance company Subsidiary) in respect of which a Credit Party whose Equity Interests are pledged as Collateral in accordance with <u>Section</u> <u>7.12(a</u>) is, at all times during the term of this Agreement after the formation of such reciprocal insurance exchange or other similar entity, duly appointed as the attorney-in-fact of such reciprocal insurance exchange pursuant to documentation reasonable acceptable to the Administrative Agent.

"*<u>Qualifying Reinsurer</u>*" shall mean: (a) the Florida Hurricane Catastrophe Fund; (b) any Person (which may include Affiliates of any Credit Party, including Captive Reinsurance Companies) providing reinsurance services with *at least* an "A–" financial strength rating from A.M. Best Company (or any successor in interest thereto); or (c) any Person (which may include Affiliates of any Credit Party, including Captive Reinsurance Companies) providing reinsurance services that has collateralized its obligations to the Regulated Entities at a level consistent with NAIC's requirements for credit on Schedule F of the statutory financial statements of the Regulated Entities.

------

"*<u>Qualifying Swap Provider</u>*" shall mean: (a) any of Regions Bank and its Affiliates; and (b) any Person that (i) at the time it enters into a Swap Agreement with any Credit Party, any Subsidiary or any other Regulated Entity, is a Lender or an Affiliate of a Lender, or (ii) in the case of a Swap Agreement with any Credit Party, any Subsidiary or any other Regulated Entity in effect on or prior to the Closing Date, is, as of the Closing Date or within thirty (30) days thereafter, a Lender or an Affiliate of a Lender, and, in each such case under this <u>clause</u> <u>(b</u>), shall have provided a Secured Party Designation Notice to the Administrative Agent. For purposes hereof, the term "*Lender*" shall be deemed to include the Administrative Agent.

"*<u>Qualifying Treasury Management Bank</u>*" shall mean: (a) any of Regions Bank and its Affiliates; and (b) any Person that (A) at the time it enters into a Treasury Management Agreement, is a Lender or an Affiliate of a Lender, or (B) in the case of a Treasury Management Agreement in effect on or prior to the Closing Date, is, as of the Closing Date or within thirty (30) days thereafter, a Lender or an Affiliate of a Lender, and, in each such case under this <u>clause (b</u>), shall have provided a Secured Party Designation Notice to the Administrative Agent. For purposes hereof, the term "*Lender*" shall be deemed to include the Administrative Agent.

"*<u>Real Estate Asset</u>*" shall mean, at any time of determination, any interest (fee, leasehold or otherwise) then owned by any Credit Party, any Subsidiary or any other Regulated Entity in any real property.

"*<u>Recipient</u>*" shall mean (a) the Administrative Agent, (b) the Collateral Agent, (c) any Lender, and (d) the Issuing Bank, as applicable.

"*<u>Refunded Swingline Loans</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.2(b)(iii</u>).

"*<u>Register</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.5(c</u>).

"*<u>Regulated Entity</u>*" shall mean, collectively: (a) each Qualifying Reciprocal Entity; and (b) each Regulated Subsidiary.

"*<u>Regulated Subsidiary</u>*" shall mean: (a) each of (i) Safepoint Insurance Company, and (ii) each Captive Reinsurance Company; and (b) any Domestic Subsidiary (i) that is a risk retention entity subject to regulation by a Governmental Authority and/or required by Applicable Laws to utilize SAP and submit them to a Governmental Authority, and (ii) with respect to which the Administrative Agent has received prior written notification that such Domestic Subsidiary constitutes a Regulated Subsidiary.

"*<u>Reimbursement Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.3(d</u>).

"*<u>Related Parties</u>*" shall mean, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"*<u>Release</u>*" shall mean any release, spill, emission, leaking, pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material into the indoor or outdoor environment (including the abandonment or disposal of any barrels, containers or other closed receptacles containing any Hazardous Material), including the movement of any Hazardous Material through the air, soil, surface water or groundwater.

"*<u>Relevant Governmental Body</u>*" shall mean the Federal Reserve Board and/or the FRBNY, or a committee officially endorsed or convened by the Federal Reserve Board and/or the FRBNY, or any successor thereto.

"*<u>Removal Effective Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.6(b</u>).

"*<u>Required Lenders</u>*" shall mean, as of any date of determination, *at least* two (2) unaffiliated Lenders (unless there is only one (1) Lender at such time, in which case, such Lender) having Total Credit Exposures, taken together, representing *more than* fifty percent (50.0%) of the *sum of* the Total Credit Exposures of all of the Lenders at such time, taken together; <u>provided</u>, <u>that</u>, the Total Credit Exposure of any Defaulting Lender shall be *excluded* for purposes of making a determination of Required Lenders.

------

"*<u>Resignation Effective Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.6(a</u>).

"*<u>Resolution Authority</u>*" shall mean an EEA Resolution Authority, or, with respect to any UK Financial Institution, a UK Resolution Authority.

"*<u>Restricted Payment</u>*" shall mean any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in any Credit Party or Subsidiary, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests, or on account of any return of capital to such Person's stockholders, partners or members (or the equivalent Person thereof), or any setting apart of funds or Property for any of the foregoing (but *not* including, for purposes of clarity, any dividend or other distribution (whether in cash, securities or other Property) made by any Qualifying Reciprocal Entity to any of its policyholders).

"*<u>Returned Reinsurance Investments</u>*" shall mean, with respect to any Investment (the "*<u>original</u> <u>Investment</u>*" for a Returned Reinsurance Investment) made by the Credit Parties in a Captive Reinsurance Company during the treaty period for an applicable reinsurance agreement that is used (or the Net Cash Proceeds of which are used) by such Captive Reinsurance Company to provide cash collateral in connection with such reinsurance agreement, the portion of the Net Cash Proceeds of such original Investment that are returned to the Credit Parties in satisfaction of such original Investment by *not later than* the date that is ninety (90) calendar days after the end of such treaty period.

"*<u>Revolver Availability Period</u>*" shall mean the period from, and including, the Closing Date to, but *excluding*, the Revolving Commitment Termination Date.

"*<u>Revolving Commitment</u>*" shall mean, with respect to each Lender, the obligation of such Lender to advance (or to otherwise fund) its respective portion of principal under Revolving Loans from time to time made during the Revolver Availability Period pursuant to <u>Section</u> <u>2.1(a</u>) and to otherwise acquire participations in Letters of Credit and Swingline Loans in accordance with the terms of this Agreement, in an aggregate principal amount advanced (or otherwise funded or acquired) by such Lender *not to exceed* the applicable amount set forth with respect to such Lender as such Lender's "*Revolving Commitment*" on <u>Appendix A</u> (or in the applicable Assignment Agreement pursuant to which such Lender becomes a party to this Agreement after the Closing Date, as applicable) at any time outstanding, subject to any increase(s), adjustment(s) and/or reduction(s) pursuant to the terms and conditions of this Agreement.

"*<u>Revolving Commitment Percentage</u>*" shall mean, with respect to each Lender at any time, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the amount of such Lender's Revolving Commitment (if any) in effect at such time; and (b) the *denominator* of which is the Aggregate Revolving Commitment Amount in effect at such time. The Revolving Commitment Percentages of each Lender as of the Closing Date are set forth on <u>Appendix A</u>.

"*<u>Revolving Commitment Termination Date</u>*" shall mean the *earliest* to occur of: (a) the date that is the fifth (5<sup>th</sup>) anniversary of the Closing Date (or, if such date is *not* a Business Day, the immediately prior Business Day); (b) the date on which the Borrower shall have provided written notice to the Administrative Agent of its election to terminate the Aggregate Revolving Commitments in accordance with <u>Section</u> <u>2.11(b</u>); and (c) the date on which the Aggregate Revolving Commitments shall have been terminated, and/or all amounts outstanding under this Agreement shall have been declared, or automatically have become, due and payable, in each case of the foregoing of this <u>clause (c</u>), pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise).

"*<u>Revolving Credit Exposure</u>*" shall mean, with respect to any Lender at any time, the *sum of*: (a) the aggregate outstanding principal balances of the respective portions of each then outstanding Revolving Loan advanced by such Lender, taken together, at such time; *plus* (b) the aggregate amount of such Lender's participation obligations in respect of Letters of Credit Obligations and Swingline Loans, taken together, at such time.

------

"*<u>Revolving Loan</u>*" shall mean a Loan made by the Lenders to the Borrower pursuant to <u>Section</u> <u>2.1(a</u>).

"*<u>Revolving Obligations</u>*" shall mean, collectively, the Revolving Loans, the Letter of Credit Obligations, and the Swingline Loans.

"*<u>S&P</u>*" shall mean Standard & Poor's, a Standard & Poor's Financial Services LLC business, together with its successors.

"*<u>Sale and Leaseback Transaction</u>*" shall mean, with respect to any Credit Party, any Subsidiary or any other Regulated Entity, any arrangement, directly or indirectly, with any Person (other than a Credit Party) whereby any such Person(s) shall sell or transfer any Property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such Property or other Property that it intends to use for substantially the same purpose(s) as the Property being sold or transferred.

"*<u>SAP</u>*" shall mean the statutory accounting practices prescribed or permitted by the insurance commissioner (or other similar authority) as of the Closing Date in the jurisdiction of incorporation or formation (as applicable) of an applicable Regulated Entity for the preparation of annual statements and other financial reports by insurance companies of the same type as such Regulated Entity.

"*<u>Sanctioned Country</u>*" shall mean (a) a country, a territory, or a government of a country or territory, (b) an agency of the government of a country or a territory, or (c) an organization directly or indirectly owned or controlled by a country, a territory or its government, in each case of the foregoing <u>clauses (a</u>) through (<u>c</u>), that is subject to Sanctions.

"*<u>Sanctioned Person</u>*" shall mean: (a) a Person named on the list of "Specially Designated Nationals" or any other Sanctions related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union or any European Union member state; (b) any Person operating, organized or resident in a Sanctioned Country; or (c) any Person owned or controlled by any such Person or Persons described in the foregoing <u>clauses (a</u>) or (<u>b</u>).

"*<u>Sanctions</u>*" shall mean economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by: (a) the U.S. government, including those administered by OFAC or the U.S. Department of State; (b) the United Nations Security Council; (c) the European Union; (d) any European Union member state; (e) His Majesty's Treasury of the United Kingdom; or (f) any other relevant sanctions authority.

"*<u>SEC</u>*" shall mean the United States Securities and Exchange Commission.

"*<u>Secured Party Designation Notice</u>*" shall mean a notice in the form of <u>Exhibit 1.1</u> (or other writing in form and substance satisfactory to the Administrative Agent) from a Qualifying Swap Provider or a Qualifying Treasury Management Bank to the Administrative Agent that it holds Obligations entitled to share in the guaranties and collateral interests provided herein in respect of a Secured Swap Agreement or Secured Treasury Management Agreement, as appropriate.

"*<u>Secured Swap Agreement</u>*" shall mean any Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and a Qualifying Swap Provider, on the other hand. For the avoidance of doubt, a holder of Obligations in respect of a Secured Swap Agreement shall be subject to the provisions of <u>Section</u> <u>9.3</u> and <u>Section</u> <u>10.10</u>.

------

"*<u>Secured Swap Obligations</u>*" shall mean all obligations owing to a Qualifying Swap Provider in connection with any Secured Swap Agreement including any and all cancellations, buy backs, reversals, terminations or assignments of any Secured Swap Agreement, any and all renewals, extensions and modifications of any Secured Swap Agreement and any and all substitutions for any Secured Swap Agreement, including all fees, costs, expenses and indemnities, whether primary, secondary, direct, fixed or otherwise (including any monetary obligations incurred during the pendency of any bankruptcy or insolvency proceedings, regardless of whether allowed or allowable in such bankruptcy or insolvency proceedings), in each case, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising.

"*<u>Secured Treasury Management Agreement</u>*" shall mean any Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and a Qualifying Treasury Management Bank, on the other hand. For the avoidance of doubt, a holder of Obligations in respect of a Secured Treasury Management Agreement shall be subject to the provisions of <u>Section</u> <u>9.3</u> and <u>Section</u> <u>10.10</u>.

"*<u>Secured Treasury Management Obligations</u>*" shall mean all obligations owing to a Qualifying Treasury Management Bank under a Secured Treasury Management Agreement, including all fees, costs, expenses and indemnities, whether primary, secondary, direct, fixed or otherwise (including any monetary obligations incurred during the pendency of any bankruptcy or insolvency proceedings, regardless of whether allowed or allowable in such bankruptcy or insolvency proceedings), in each case, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising.

"*<u>Securities</u>*" shall mean any stock, shares, partnership interests, limited liability company interests, voting trust certificates, certificates of interest or participation in any profit-sharing agreement or arrangement (*e*.*g*., stock appreciation rights), options, warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as "securities" or any certificates of interest, shares or participations in temporary or interim certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing.

"*<u>Security Agreement</u>*" shall mean that certain Security and Pledge Agreement, dated as of the Closing Date, given by the Credit Parties, as obligors, to the Collateral Agent, for the benefit of the holders of the Obligations, and any other pledge agreements or security agreements that may be given by any Person pursuant to the terms hereof, in each case, as the same may be amended, restated, amended and restated, supplemented, replaced, and/or otherwise modified in writing from time to time.

"*<u>Securitization Transaction</u>*" shall mean any financing or factoring or similar transaction (or series of such transactions) entered by any Credit Party, any Subsidiary or any other Regulated Entity pursuant to which any such Person(s) may sell, convey or otherwise transfer, or grant a security interest in, accounts, payments, receivables, rights to future lease payments or residuals or similar rights to payment (the "*<u>Securitization</u> <u>Receivables</u>*") to a special purpose subsidiary or affiliate (a "*<u>Securitization Subsidiary</u>*") or any other Person.

"*<u>SOFR</u>*" shall mean, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator's Website on the immediately succeeding U.S. Government Securities Business Day; <u>provided</u>, <u>that</u>, if such published rate is subsequently corrected and provided by the SOFR Administrator, or on the SOFR Administrator's Website, within the *longer* of (i) one (1) hour of the time when such rate was first published, and (ii) the republication cut-off time for SOFR, if any, as specified by the SOFR Administrator in the applicable SOFR benchmark methodology, then "*SOFR*" shall instead mean such secured overnight financing rate for such Business Day subject to those corrections.

"*<u>SOFR Administrator</u>*" shall mean the FRBNY (or any successor administrator of the secured overnight financing rate).

------

"*<u>SOFR Administrator</u>*<u>'</u>*<u>s Website</u>*" shall mean the website of the FRBNY accessible at (as of the Closing Date) <u>https://www.newyorkfed.org,</u> or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

"*<u>SOFR</u>*<u>-</u>*<u>Based Rate</u>*" shall mean each of Term SOFR for any Interest Period and Daily Simple SOFR.

"*<u>SOFR Borrowing</u>*" shall mean a Borrowing, the Loans in respect of which bear interest at a rate determined by reference to Term SOFR for any available Interest Period, other than pursuant to clause (c) of the definition of "*Base Rate*" above.

"*<u>SOFR Loan</u>*" shall mean a Loan bearing interest at a rate determined by reference to Term SOFR for any available Interest Period, other than pursuant to clause (c) of the definition of "*Base Rate*" above.

"*<u>SOFR Reference Rate</u>*" shall mean the rate per annum determined by the Administrative Agent as the forward-looking term rate based on SOFR for an applicable tenor.

"*<u>Solvent</u>*" or "*<u>Solvency</u>*" shall mean, with respect to any Person as of a particular date, that on such date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such Person is able to pay its debts and other liabilities, contingent obligations and other commitments as they mature in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Person does *not* intend to, and does *not* believe that it will, incur debts or liabilities beyond such Person's ability to pay as such debts and liabilities mature in their ordinary course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such Person is *not* engaged in a business or a transaction, and is *not* about to engage in a business or a transaction, for which such Person's Property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which such Person is engaged or is to engage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the fair value of the Property of such Person is *greater than* the total amount of liabilities, including, without limitation, contingent liabilities, of such Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the present fair salable value of the Property of such Person is *not less than* the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured.

In computing the amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

"*<u>Specified Credit Party</u>*" shall mean any Credit Party that is, at the time on which the Guaranty (or grant of security interest, as applicable) becomes effective with respect to a Swap Obligation, a corporation, partnership, proprietorship, organization, trust or other entity that would *not* be an "eligible contract participant" under the Commodity Exchange Act at such time but for the effect of <u>Section</u> <u>4.8</u>.

"*<u>Specified Equity Contribution</u>*" shall have the meaning provided for such term in <u>Section</u> <u>9.4(a</u>).

"*<u>Specified Transaction</u>*" shall mean any Asset Sale, any Involuntary Disposition, any Acquisition, the making of any Investment, the declaration and/or making of any Restricted Payment, the establishment and/or incurrence of any Incremental Facility, any Debt Transaction, any Equity Transaction or any other contribution of equity capital (whether in cash or otherwise), any Sale and Leaseback Transaction, any Securitization Transaction, and/or any other transaction that is subject to calculation on a "*Pro Forma Basis*" as indicated in this Agreement or any other Credit Document (or in any other agreement, document, certificate and/or instrument executed and/or delivered in connection herewith or therewith).

------

"*<u>Statutory Surplus</u>*" shall mean, as of any date of determination for any Regulated Entity, the total capital and surplus of such Regulated Entity, determined in accordance with SAP.

"*<u>Subsidiary</u>*" shall mean, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which *more than* fifty percent (50.0%) of the Voting Stock is at the time owned or controlled, directly or indirectly, by that Person, or the accounts of which would be consolidated with those of such Person in its consolidated financial statements in accordance with GAAP, if such statements were prepared as of such date, or one or more of the other Subsidiaries of that Person or a combination thereof; <u>provided</u>, <u>that</u>, (i) in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a "qualifying share" of the former Person shall be deemed to be outstanding, and (ii) notwithstanding anything to the contrary in the foregoing of this definition, each Regulated Subsidiary shall be deemed to be a Subsidiary of the Borrower. Unless otherwise expressly stated, all references to "Subsidiary" in this Agreement and each other Credit Document shall refer to a Subsidiary of the Borrower (including, for purposes of clarity, each Regulated Subsidiary).

"*<u>Subsidiary Determination Date</u>*" shall mean any date on which financial statements and/or any related Compliance Certificate are, or are required to be, delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>).

"*<u>Supported QFC</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

"*<u>Swap Agreement</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, currency swap transactions, cross-currency rate swap transactions, currency options, cap transactions, floor transactions, collar transactions, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options or warrants to enter into any of the foregoing), whether or not any such transaction is governed by, or otherwise subject to, any master agreement or any netting agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any and all transactions or arrangements of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement (or similar documentation) published from time to time by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such agreement or documentation, together with any related schedules, a "*<u>Master Agreement</u>*"), including any such obligations or liabilities under any Master Agreement.

"*<u>Swap Obligation</u>*" shall mean, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a "swap" within the meaning of Section 1a(47) of the Commodity Exchange Act.

"*<u>Swap Termination Value</u>*" shall mean, in respect of any one or more Swap Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Agreements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any date on or after the date such Swap Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any date prior to the date referenced in <u>clause (a</u>), the amount(s) determined as the mark-to-market value(s) for such Swap Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Agreements (which may include a Lender or any Affiliate of a Lender).

------

"*<u>Swingline Lender</u>*" shall mean Regions Bank in its capacity as Swingline Lender hereunder, together with its permitted successors and assigns in such capacity.

"*<u>Swingline Loan</u>*" shall mean a Loan made by the Swingline Lender to the Borrower pursuant to <u>Section</u> <u>2.2</u>.

"*<u>Swingline Rate</u>*" shall mean the Base Rate *plus* the Applicable Margin applicable to Base Rate Loans (or, with respect to any Swingline Loan advanced pursuant to an Auto Borrow Agreement, such other rate as separately agreed in writing between the Borrower and the Swingline Lender).

"*<u>Swingline Sublimit</u>*" shall mean, as of any date of determination, the *lesser* of: (a) Four Million Dollars ($4,000,000); and (b) the aggregate unused amount of the Revolving Commitments then in effect.

"*<u>Synthetic Lease</u>*" shall mean a lease transaction under which the parties intend that: (a) the lease will be treated as an "operating lease" by the lessee pursuant to Statement of Financial Accounting Standards No. 13, as amended; and (b) the lessee will be entitled to various tax and other benefits ordinarily available to owners (as opposed to lessees) of like Property.

"*<u>Taxes</u>*" shall mean all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"*<u>Term Loans</u>*" shall mean, collectively, the Term Loan A, the Delayed Draw Term Loan, and any Incremental Term Loans.

"*<u>Term Loan A</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.1(b</u>).

"*<u>Term Loan A Commitment</u>*" shall mean, with respect to each Lender, the obligation of such Lender to advance its respective portion of principal under the Term Loan A on the Closing Date pursuant to <u>Section</u> <u>2.1(b</u>), in an aggregate original principal amount advanced by such Lender on the Closing Date equal to the applicable amount set forth with respect to such Lender as such Lender's "*Term Loan A Commitment*" on <u>Appendix A</u>.

"*<u>Term Loan A Commitment Percentage</u>*" shall mean, with respect to each Lender at any time, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the *sum of* (i) the amount of such Lender's Term Loan A Commitment (if any) in effect at such time, *plus* (ii) the aggregate principal balance of the portion of the Term Loan A advanced by such Lender that is outstanding at such time; and (b) the *denominator* of which is the *sum of* (i) the Aggregate Term Loan A Commitment Amount in effect at such time, *plus* (ii) the aggregate outstanding principal balance of the Term Loan A at such time. The Term Loan A Commitment Percentages of each Lender as of the Closing Date are set forth on <u>Appendix A</u>.

"*<u>Term Loan Commitments</u>*" shall mean, collectively, the Term Loan A Commitments, the DDTL Commitments and any Incremental Term Loan Commitments.

"*<u>Term SOFR</u>*" means, as of any date of determination, for any calculations with respect to a SOFR Loan and/or a SOFR Borrowing and/or any determination of the Base Rate pursuant to clause (c) of the definition of "*Base Rate*" above, the rate per annum equal to the SOFR Reference Rate for a forward-looking tenor comparable to the then applicable or selected (as applicable) Interest Period for such SOFR Loan or SOFR Borrowing (or for a forward-looking one (1) month tenor, in the case of any determination of the Base Rate pursuant to clause (c) of the definition of "*Base Rate*" above), determined as of the date (such date, a "*<u>Periodic</u> <u>Term SOFR Determination Date</u>*") that is two (2) U.S. Government Securities Business Days *prior* to the first (1<sup>st</sup>) day of such Interest Period, as such rate is published by the Term SOFR Administrator on such Periodic Term SOFR Determination Date; <u>provided</u>, <u>that</u>, (a) if, as of 11:00 a.m. (New York City time) on any Periodic

------

Term SOFR Determination Date, the SOFR Reference Rate for the applicable tenor has *not* been published by the Term SOFR Administrator, then "*Term SOFR*" shall instead mean the SOFR Reference Rate for such applicable tenor as published by the Term SOFR Administrator on the first (1<sup>st</sup>) preceding U.S. Government Securities Business Day for which such SOFR Reference Rate for such applicable tenor was published by the Term SOFR Administrator, subject to <u>Section</u> <u>3.1</u>, and (b) if, at any time, Term SOFR (determined in accordance with the foregoing of this definition of "*Term SOFR*", including in accordance with the foregoing <u>clause (a</u>) of this proviso) is *less than* the Floor, then Term SOFR shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents. Any change(s) in Term SOFR for any Interest Period due to any change(s) in the SOFR Reference Rate for a comparable tenor shall be effective from, and including, the effective date of any such change(s) in such SOFR Reference Rate, without further notice to any Credit Party, any Subsidiary, any other Regulated Entity, any other party to this Agreement or any other Credit Document, or any other Person.

"*<u>Term SOFR Administrator</u>*" means, the CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the SOFR Reference Rate for any applicable tenor selected by the Administrative Agent in its reasonable discretion).

"*<u>Threshold Amount</u>*" shall mean One Million Dollars ($1,000,000).

"*<u>Title Policy</u>*" shall have the meaning specified for such term in <u>Section</u> <u>7.11(b)(iii</u>).

"*<u>Total Credit Exposure</u>*" shall mean, with respect to any Lender at any time, the *sum of*: (a) the *sum of* the aggregate outstanding principal balances of the respective portions of each then outstanding Term Loan advanced by such Lender, taken together, at such time; *plus* (b) the unused amount of such Lender's respective Revolving Commitment in effect at such time; *plus* (c) the unused amount of such Lender's respective DDTL Commitment in effect at such time; *plus* (d) such Lender's Revolving Credit Exposure at such time.

"*<u>Trailing Period</u>*" shall mean, as of any date of determination, the period consisting of the four (4) consecutive full Fiscal Quarters most recently ended as of such date of determination.

"*<u>Treasury Management Agreement</u>*" shall mean any agreement governing the provision of treasury or cash management services, including deposit accounts, funds transfer, automated clearinghouse, commercial credit cards, purchasing cards, cardless e-payable services, debit cards, stored value cards, zero balance accounts, returned check concentration, controlled disbursement, lockbox, account reconciliation and reporting and trade finance services.

"*<u>Type</u>*", when used in reference to a Loan or Borrowing, shall refer to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to Term SOFR for any Interest Period (other than pursuant to clause (c) of the definition of "*Base Rate*" above) or the Base Rate (including, for the avoidance of doubt, pursuant to clause (c) of the definition of "*Base Rate*" above).

"*<u>UCC</u>*" shall mean the Uniform Commercial Code (or any similar or equivalent legislation) as in effect in the State of New York (or any other applicable jurisdiction, as the context may require).

"*<u>UK Financial Institution</u>*" shall mean any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"*<u>UK Resolution Authority</u>*" shall mean the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

------

"*<u>United States</u>*" or "*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u>" shall mean the United States of America.

"*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Government Securities Business Day</u>*" shall mean any day, other than: (a) a Saturday or a Sunday; or (b) any day on which SIFMA recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in U.S. government securities.

"*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Person</u>*" shall mean any Person that is a "United States person" as defined in Section 7701(a)(30) of the Internal Revenue Code.

"*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Special Resolution Regime</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

"*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Tax Compliance Certificate</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.3(f</u>).

"*<u>Unadjusted Benchmark Replacement</u>*" shall mean the applicable Benchmark Replacement without giving effect to the Benchmark Replacement Adjustment.

"*<u>Voting Stock</u>*" shall mean, with respect to any Person, Equity Interests issued by such Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even though the right so to vote has been suspended by the happening of such a contingency.

"*<u>Weighted Average Life</u>*" shall mean, when applied to any Indebtedness as of any date of determination, the number of years obtained by *dividing*: (a) the *sum of* the products obtained by *multiplying* (i) the amount of each then-remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof, *by* (ii) the number of years (calculated to the nearest one-twelfth (1/12)) that will elapse between such date and the making of such payment; *by* (b) the then-outstanding principal amount of such Indebtedness.

"*<u>Wholly Owned Subsidiary</u>*" shall mean, as of any date of determination, with respect to any Person, any Subsidiary of such Person of which all of the Equity Interests (other than, in the case of a Foreign Subsidiary, Equity Interests in such Foreign Subsidiary issued to (i) qualify directors, to the extent required by Applicable Law, or (ii) satisfy other requirements of Applicable Law with respect to the ownership of Equity Interests in such Foreign Subsidiary) are, as of such date, directly or indirectly owned and controlled by such Person or by one (1) or more other Wholly Owned Subsidiaries of such Person (or by a combination of the foregoing). Unless otherwise expressly stated, all references to "Wholly Owned Subsidiary" in this Agreement and each other Credit Document shall refer to a Wholly Owned Subsidiary of the Borrower (including, for purposes of clarity, each Regulated Subsidiary that is a Wholly Owned Subsidiary of the Borrower).

"*<u>Withholding Agent</u>*" shall mean any Credit Party and the Administrative Agent.

"*<u>Write</u>*<u>-</u>*<u>Down and Conversion Powers</u>*" shall mean: (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule; and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution, or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that Person or any other Person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it, or to suspend any obligation in respect of that liability, or any of the powers under that Bail-In legislation that are related or ancillary to any of those powers.

------

Section 1.2 <u>Accounting</u><u> </u><u>Term</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise expressly provided in this Agreement or any other Credit Document, all accounting terms used in this Agreement and the other Credit Documents shall be interpreted, all accounting determinations under this Agreement and the other Credit Documents shall be made, and all financial statements required to be delivered under this Agreement and the other Credit Documents shall be prepared, in each case of the foregoing, in accordance with GAAP or SAP (as applicable), as in effect from time to time, applied on a basis consistent with the most recent consolidated financial statements of the Credit Parties and Subsidiaries delivered pursuant to <u>Section</u> <u>7.1(b</u>) (or, if, at any time, no such financial statements have been delivered pursuant to <u>Section</u> <u>7.1(b</u>), then on a basis consistent with the Annual Financial Statements); <u>provided</u>, <u>that</u>, if the Borrower notifies the Administrative Agent that the Borrower wishes to amend any Financial Covenant to eliminate the effect of any change(s) in GAAP or SAP (as applicable) on the operation of such Financial Covenant (or, if the Administrative Agent notifies the Borrower that the Required Lenders wish to amend <u>Section</u> <u>8.8</u> for such purpose), then the Credit Parties' compliance with such Financial Covenant shall be determined on the basis of GAAP or SAP (as applicable) as in effect on the date immediately *prior* to the date on which the relevant change(s) in GAAP or SAP (as applicable) became effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Borrower and the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, at any time, any change in GAAP or SAP, or in the consistent application thereof, would affect the computation of any Financial Covenant or any other requirement set forth in any Credit Document, and either the Borrower or the Required Lenders shall object in writing to determining compliance based on such change, then the Lenders and the Borrower shall negotiate in good faith to amend such Financial Covenant, other requirement or applicable defined term(s) to preserve the original intent thereof in light of such change to GAAP or SAP (as applicable), <u>provided</u>, <u>that</u>, until so amended such computations shall continue to be made on a basis consistent with the most recent financial statements delivered pursuant to <u>Section</u> <u>7.1</u> as to which no such objection has been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in the foregoing or elsewhere in this Agreement or any other Credit Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all terms of an accounting or financial nature used in this Agreement or any other Credit Document shall be construed, and all computations of amounts and ratios referred to in this Agreement or any other Credit Document shall be made, in each case of the foregoing, without giving effect to any election under Accounting Standards Codification Section 825–10 (or any other Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of any Credit Party, any Subsidiary or any other Regulated Entity at "fair value" (as defined therein); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for purposes of determining compliance with any covenant (including the computation of any Financial Covenant) set forth in this Agreement or any other Credit Document, Indebtedness of the Credit Parties, Subsidiaries and other Regulated Entities shall be deemed to be carried at one hundred percent (100.0%) of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470–20 on financial liabilities shall be disregarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary in the foregoing, the parties hereto acknowledge and agree that (A) all calculations in accordance with <u>Section</u> <u>8.8</u> of the Financial Covenants (but *not* including, for purposes of clarity, the testing of any availability, basket or other condition set forth in any Article or Section of this Agreement or any other Credit Document other than in <u>Section</u> <u>8.8</u> that requires, by its terms, that any Financial Covenant measurement(s) be calculated on a Pro Forma Basis), and (B) all calculations of the Consolidated Leverage Ratio for purposes of determining the Applicable Margin, in each case of the foregoing <u>clauses (c)(A</u>) and (<u>c)(B</u>), shall be made on a Pro Forma Basis *solely* with respect to (i) any Asset Sale of all of the outstanding Equity Interests in, or all, or substantially all, of the Property of, any Credit Party, any Subsidiary or any other Regulated Entity, (ii) any Asset Sale of a line of business or division of any Credit Party, any Subsidiary or any other Regulated Entity, or (iii) any Acquisition (including any related incurrence or assumption of Indebtedness), in each case of the foregoing <u>clauses (c)(i</u>) through (<u>c)(iii</u>), consummated during

the applicable period of measurement, and no other Specified Transactions consummated during the applicable period of measurement shall be given effect on a Pro Forma Basis for purposes of such specified calculations.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For purposes of determining compliance with any applicable basket permission(s) set forth in <u>Article 8</u> with respect to any item incurred, granted, paid, invested, made or disposed of (as applicable) in reliance on such basket permission(s) that is denominated in any currency other than Dollars, the amount of such item shall be deemed to be the Dollar-equivalent amount (as determined by the Administrative Agent) of the amount (denominated in a currency other than Dollars) of such item. In the event that any basket permission set forth in <u>Article 8</u> is exceeded *solely* as a result of fluctuations, after the last time that such basket permission was utilized or relied on by a Credit Party, Subsidiary or other Regulated Entity, between the amount (denominated in a currency other than Dollars) of any item incurred, granted, paid, invested, made or disposed of (as applicable) measured as of such time, on the one hand, and the Dollar-equivalent amount thereof (as determined by the Administrative Agent), on the other hand, then such basket permission shall *not* be deemed to have been exceeded *solely* as a result of such currency exchange rate fluctuations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything to the contrary in this Agreement or any other Credit Document, any calculation of "extraordinary gains", "extraordinary losses" and/or "extraordinary charges" shall, in each case for all purposes of this Agreement and the other Credit Documents (including, without limitation, for any determination of Consolidated EBITDA or Consolidated Net Income), be determined by reference to GAAP as in effect immediately *prior* to giving effect to FASB's Accounting Standards Update No. 2015–01.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event that any Lien, any Indebtedness (whether tested at the time of initial incurrence, upon application of all, or any portion, of the proceeds thereof, or otherwise), any Asset Sale or other disposition, any Acquisition or other Investment, any Restricted Payment, any Affiliate transaction, any restrictive agreement and/or any prepayment of Indebtedness (as applicable), or any other transaction that is subject to any of the negative covenant restrictions set forth in <u>Article 8</u>, meets the criteria of one (1) or more of the categories of transactions then expressly permitted pursuant to any clause of the applicable Section(s) of <u>Article 8</u>, then such transaction (or portion thereof, as applicable) at any time shall be permitted under one (1) or more of such clauses of such Section(s) as the Borrower may determine in its sole discretion at such time (unless otherwise expressly and specifically restricted pursuant to the terms of this Agreement), and, for the avoidance of doubt, unless otherwise expressly and specifically restricted pursuant to the terms of this Agreement, the Borrower may subsequently reclassify or divide (as applicable) such transaction (or portion thereof, as applicable) among such permitting clauses of such applicable Section(s) and shall only be required, at any given time, to count such transaction (or portion thereof, as applicable) as permitted in reliance on one (1) of such permitting clauses of such applicable Section(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) For purposes of determining the amount of any Earn Out Obligations and/or other deferred purchase price obligations of any Person for purposes of this Agreement and the other Credit Documents, the amount of such Earn Out Obligations and/or other deferred purchase price obligations shall be deemed to be the aggregate liability in respect thereof required to be reflected as a liability on the balance sheet of such Person in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything to the contrary in this Agreement or any other Credit Document, all liability amounts shall be determined *excluding* any liability relating to any operating lease, all asset amounts shall be determined *excluding* any right-of-use assets relating to any operating lease, all amortization amounts shall be determined *excluding* any amortization of a right-of-use asset relating to any operating lease, and all interest amounts shall be determined *excluding* any deemed interest comprising a portion of fixed rent payable under any operating lease, in each case of the foregoing, to the extent that such liability, asset, amortization or interest pertains to an operating lease under which the covenantor or a member of its consolidated group is the lessee and would *not* have been accounted for as such under GAAP as in effect on December 31, 2015.

------

Section 1.3 <u>Rules</u><u> </u><u>of</u> <u>Interpretati</u><u>on</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Terms Generally</u>. The definitions of terms used in this Agreement and the other Credit Documents shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "*include*", "*includes*" and "*including*" shall be deemed to be followed by the phrase ", *without limitation*,". The word "*will*" shall be construed to have the same meaning and effect as the word "*shall*". In the computation of periods of time from a specified date to a later specified date, unless otherwise specified, the word "*from*" shall mean "*from*, *and including*," and the word "*to*" shall mean "*to*, *but excluding*,". In addition, unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any definition of, or reference to, any agreement, instrument or other document (including any Organizational Document) shall be construed as referring to such agreement, instrument or other document as it was originally executed, or as it may from time to time be amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing, as applicable (subject to any restrictions on such amendments, restatements, amendments and restatements, supplements, increases, extensions, refinancings, renewals, replacements, and/or other written modifications as set forth in this Agreement or any other Credit Document);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any reference in any Credit Document to any Person shall be construed to include such Person's successors and permitted assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the words "*hereof*", "*herein*" and "*hereunder*", and words of similar import, when used in any Credit Document, shall be construed to refer to such Credit Document as a whole, and *not* to any particular provision hereof or thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all references in any Credit Document to Articles, Sections, Appendices, Exhibits and/or Schedules shall be construed to refer to Articles, Sections, Appendices, Exhibits and/or Schedules, as applicable, to or of the Credit Document in which such reference appears;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all references contained in a Section, clause, sub-clause or definition to clauses, sub-clauses or definitions occurring "above" or "below", or to any "foregoing", "preceding" or "proceeding" clauses, sub-clauses or definitions, in each case of the foregoing, shall refer to the applicable clause or sub-clause of, or definition set forth in, such Section or such clause, sub-clause or definition, as the case may be, and all general references contained in a Section, or a clause or sub-clause thereof, to "the above" or "the below" shall refer, collectively, to all provisions of such Section, clause or sub-clause, as applicable, occurring prior to or after, as applicable, the occurrence of such general reference;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all references herein to sums denominated in Dollars or dollars, or with the symbol "$", refer to the lawful currency of the United States, unless such reference specifically identifies another currency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any reference in any Credit Document to a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term shall be deemed to apply to a division of or by a limited liability company or a limited partnership, or an allocation of assets to a series of a limited liability company or a limited partnership (or the unwinding of such a division or allocation), as if it were a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term, as applicable, to, of, or with a separate Person, and any division of a limited liability company or a limited partnership shall constitute a separate Person hereunder or thereunder (and each division of any limited liability company or limited partnership that is a subsidiary, joint venture, or any other like term shall also constitute such a Person);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any definition of, or reference to, any Applicable Law shall include all statutory and regulatory rules, regulations, orders and provisions consolidating, amending, replacing, and/or interpreting such Applicable Law, and any definition of, or reference to, any Applicable Law shall, unless otherwise expressly specified, refer to such Applicable Law as amended, modified, and/or supplemented from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the words "*asset*" and "*property*" shall be construed to have the same meaning and effect, and to refer to any and all real and personal, tangible and intangible Properties, including, without limitation, cash, securities, accounts and contract rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) unless otherwise expressly specified, all references in this Agreement or any other Credit Document to times of day shall be references to Eastern time (daylight or standard, as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) the terms "*lease*" and "*license*" shall include any sub-lease and/or any sub-license, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) all terms (whether or not capitalized in occurrence) used in this Agreement and the other Credit Documents that are *not* specifically defined in this Agreement or any other Credit Document, or under GAAP, but are defined in the UCC, shall have the respective meanings provided for such terms in the UCC, with the term "*instrument*" having the meaning provided for such term in Article 9 of the UCC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) (A) whenever the phrase "appraised value" (or words of like or similar import) is used in this Agreement or any other Credit Document with respect to any Real Estate Asset, such "appraised value" (or words of like or similar import) shall mean the value of such Real Estate Asset determined using an Appraisal; and (B) whenever the phrases "updated Appraisal", "updated appraisal" or "an update thereof" (or words of like or similar import) relating to an Appraisal or other appraisal are used in this Agreement or any other Credit Document, any such "update" shall be in form and substance, and from a third-party provider, reasonably acceptable to the Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) whenever the phrase "*to the knowledge of*" (or words of like or similar import) relating to the knowledge of any Credit Party, any Subsidiary or any other Regulated Entity is used in this Agreement or any other Credit Document, such phrase shall mean, and refer to, the actual knowledge of any Authorized Officer of such Person(s) after due inquiry; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) for purposes of clarity and unless the context expressly provides otherwise, any references in this Agreement or any other Credit Document to a Regulated Entity that is *not* a Subsidiary (or to a Regulated Entity that is *not* a Regulated Subsidiary) shall be, and are intended as, a reference to one (1) or more Qualifying Reciprocal Entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Letter of Credit Amounts</u>. Unless otherwise expressly specified in this Agreement or another Credit Document, the amount of a Letter of Credit, at any time, shall be deemed to be the stated amount of such Letter of Credit in effect at such time (after giving effect to any actual permanent reductions in the stated amount of such Letter of Credit pursuant to the terms of such Letter of Credit); <u>provided</u>, <u>that</u>, with respect to any Letter of Credit that, by its terms or the terms of any other Issuer Document related thereto, provides for one (1) or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit, after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Section Headings</u>. Section headings in this Agreement and the other Credit Documents are included herein or therein (as applicable) for convenience of reference only and shall *not* constitute a part hereof or thereof for any other purpose, or otherwise be given any substantive effect.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Informed Negotiation</u>. This Agreement and the other Credit Documents are the result of negotiations among, and have been reviewed by counsel to, among others, the Agent and each of the Credit Parties, and this Agreement, and each of the other Credit Documents, are the product of discussions and negotiations among such parties. Accordingly, this Agreement and the other Credit Documents are *not* intended to be construed against the Agent, the Issuing Bank or any of the Lenders merely on account of any such Person's (or its counsel's) involvement in the preparation and/or closing of this Agreement and/or any other Credit Document.

Section 1.4 <u>Rules of Interpretation with Respect to Regulated Entitie</u><u>s</u>. Should an applicable Governmental Authority notify any Credit Party or Subsidiary of a potentially actionable issue or concern related to control of a Regulated Entity or determine that all or any of the Lenders, the Administrative Agent and/or the Collateral Agent is or are acting as control persons, as defined or used under the Florida Insurance Code or other Applicable Laws, of any Regulated Entity due to one or more provisions of this Agreement, the parties agree to promptly further negotiate in good faith to modify this Agreement such that none of the Lenders, the Administrative Agent and the Collateral Agent are considered by such Governmental Authority to be control persons of the Regulated Entities and to effect the original intent of the parties as closely as possible in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

Section 1.5 <u>Classifications of Loans and Borrowi</u><u>ngs</u>. For purposes of this Agreement and the other Credit Documents, Loans may be classified and referred to by Class (*e*.*g*., a "*Revolving Loan*", the "*Term Loan A*" or the "*Delayed Draw Term Loan*"), by Type (*e*.*g*., a "*SOFR Loan*" or a "*Base Rate Loan*"), or by Class and Type (*e*.*g*., a "*Revolving SOFR Loan*"). Borrowings also may be classified and referred to by Class (*e*.*g*., a "*Revolving Borrowing*"), by Type (*e*.*g*., a "*SOFR Borrowing*" or a "*Base Rate Borrowing*"), or by Class and Type (*e*.*g*., a "*Revolving SOFR Borrowing*").

Section 1.6 <u>Cashless Rollover</u><u>s</u>. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, to the extent that any Lender agrees to extend the maturity date of, or replaces, renews and/or refinances any of, its then-existing Loans pursuant to any Borrowing under an Incremental Facility and/or any loans incurred under a new credit facility (including, without limitation, a new credit facility documented as an amendment and restatement of this Agreement), in each case of the foregoing, to the extent that such extension, replacement, renewal and/or refinancing is effected by means of a "cashless roll" by such Lender, then such extension, replacement, renewal and/or refinancing shall be deemed to comply with any requirement(s) under this Agreement or any other Credit Document that any related payment(s) to be made in effectuating such extension, replacement, renewal and/or refinancing be made "in Dollars", "in immediately available funds", "in cash" or any other similar requirement.

Section 1.7 <u>Interest Rate Disclosur</u><u>e</u>. The Administrative Agent does *not* warrant or accept responsibility for, and shall *not* have any liability whatsoever with respect to: (a) the continuation, administration, submission and/or calculation of, or any other matter related to, any of the Base Rate, the SOFR Reference Rate (for any applicable tenor) and/or any SOFR-Based Rate (for any Interest Period, as applicable), or any component definition used or referred to in, or any rate(s) used or referred to in, the definitions of any of the foregoing in <u>Section</u> <u>1.1</u>, or for any alternative, successor or replacement rate thereto (including, without limitation, any Benchmark Replacement), including whether the composition and/or characteristics of any such actual or proposed alternative, successor or replacement rate (including, without limitation, any Benchmark Replacement) is or will be similar to, or produces or will produce the same or substantially equivalent value or economic equivalence of, or has or will have the same or a comparable volume or liquidity as, any of the Base Rate, the SOFR Reference Rate (for any applicable tenor), any SOFR-Based Rate (for any Interest Period, as applicable) and/or any other Benchmark prior to its discontinuance or unavailability; or (b) the effect, implementation and/or composition of any Conforming Changes. The Administrative Agent, together with its Affiliates and other related entities, may engage in transactions that affect the calculation of any of the Base Rate, the SOFR Reference Rate (for any applicable tenor), any SOFR-Based Rate (for any Interest Period, as applicable), any alternative, successor or replacement rate of any of the foregoing (including, without limitation,

------

any Benchmark Replacement), and/or any relevant adjustments to any of the foregoing, in any such case of the foregoing, in a manner adverse to the Borrower and the other Credit Parties. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain any of the Base Rate, the SOFR Reference Rate (for any applicable tenor), any SOFR-Based Rate (for any Interest Period, as applicable), and/or any other Benchmark, in each case of the foregoing, pursuant to the terms of this Agreement, and the Administrative Agent shall have no liability whatsoever to any Credit Party, any Subsidiary, any other Regulated Entity, any Lender and/or any other Person for damages of any kind, including direct or indirect, special, punitive, incidental and/or consequential damages, costs, losses and/or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or any component thereof) provided by any such information source or service.

**Article 2** 

**<u>LOANS AND LETTERS OF CREDIT</u>**

Section 2.1 <u>Revolving</u><u> </u><u>Loans</u><u> </u><u>and</u><u> </u><u>Term</u><u> </u><u>Loan</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans</u>. Subject to the terms and conditions set forth herein (including the conditions precedent to Borrowing set forth in <u>Section</u> <u>5.2</u>), each of the Lenders hereby severally agrees to advance its respective Revolving Commitment Percentage of revolving loans (each such loan, a "*<u>Revolving Loan</u>*") to the Borrower, in Dollars from time to time during the Revolver Availability Period, in an aggregate principal amount outstanding at any time for each Lender up to, but *not exceeding*, the amount of such Lender's respective Revolving Commitment; <u>provided</u>, <u>that</u>, immediately after giving effect to the Borrowing of any Revolving Loan, (i) the Aggregate Revolving Credit Exposure shall *not exceed* the Aggregate Revolving Commitment Amount, and (ii) the Revolving Credit Exposure of any Lender shall *not exceed* the amount of such Lender's respective Revolving Commitment. Revolving Loans may be disbursed from time to time during the Revolver Availability Period, and may be outstanding from time to time, as Base Rate Loans or SOFR Loans (or a combination thereof), as the Borrower may request in accordance with this Agreement. Revolving Loans borrowed pursuant to this clause (a) may be repaid, in whole or in part, and re-borrowed from time to time during the Revolver Availability Period without premium or penalty (subject to <u>Section</u> <u>3.1(c</u>)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term Loan A</u>. Subject to the terms and conditions set forth herein (including the conditions precedent to Borrowing set forth in <u>Section</u> <u>5.2</u>), each of the Lenders hereby severally agrees to advance their respective Term Loan A Commitment Percentage of a term loan (the "*<u>Term Loan A</u>*") to the Borrower, in Dollars in a single disbursement on the Closing Date, in an original principal amount for each Lender equal to the amount of such Lender's respective Term Loan A Commitment in effect on the Closing Date. The Term Loan A may be disbursed on the Closing Date, and may be outstanding from time to time thereafter, as Base Rate Loans or SOFR Loans (or a combination thereof), as the Borrower may request in accordance with this Agreement. Amounts repaid on the Term Loan A may *not* be reborrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delayed Draw Term Loan</u>. Subject to the terms and conditions set forth herein (including the conditions precedent to Borrowing set forth in <u>Section</u> <u>5.2</u>), each of the Lenders hereby severally agrees to advance their respective DDTL Commitment Percentage of a delayed draw term loan (the "*<u>Delayed Draw Term</u> <u>Loan</u>*") to the Borrower, in Dollars in up to five (5) separate advances during the DDTL Availability Period, in an aggregate original principal amount for each Lender (for all advances under the Delayed Draw Term Loan, taken together) of *not greater than* the amount of such Lender's respective DDTL Commitment in effect on the Closing Date. The Delayed Draw Term Loan may be disbursed from time to time during the DDTL Availability Period, and may be outstanding from time to time during the term of this Agreement, as Base Rate Loans or SOFR Loans (or a combination thereof), as the Borrower may request in accordance with this Agreement. Amounts repaid on the Delayed Draw Term Loan may *not* be reborrowed.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Borrowing Mechanics</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All Term Loans and, except pursuant to <u>Section</u> <u>2.2(b)(iii</u>), all Revolving Loans shall be made in an aggregate minimum amount of Five-Hundred Thousand Dollars ($500,000) and, if greater, in an integral multiple of One-Hundred Thousand Dollars ($100,000) in excess thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Whenever the Borrower desires that the Lenders make a Term Loan or a Revolving Loan, the Borrower shall deliver to the Administrative Agent a fully executed Funding Notice by *no later than* (A) 1:00 p.m. (Eastern time) *at least* three (3) Business Days in advance of the proposed Credit Date, in the case of a SOFR Loan, and (B) 1:00 p.m. (Eastern time) *at least* one (1) Business Day in advance of the proposed Credit Date, in the case of a Base Rate Loan (<u>provided</u>, <u>that</u>, a Funding Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Funding Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed). Except as otherwise provided herein, any Funding Notice for any Loans that are SOFR Loans shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to make a borrowing in accordance therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notice of receipt of each Funding Notice in respect of each Revolving Loan or Term Loan, together with the amount of each Lender's Commitment Percentage of the relevant Class in respect thereof, if any, together with the applicable interest rate, shall be provided by the Administrative Agent to each applicable Lender by telefacsimile with reasonable promptness, but (<u>provided</u>, <u>that</u>, the Administrative Agent shall have received such notice by 1:00 p.m. (Eastern time)) by *not later than* 4:00 p.m. (Eastern time) on the same day as the Administrative Agent's receipt of such notice from the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Each Lender shall make its respective Commitment Percentage of the requested Loan available to the Administrative Agent by *not later than* 11:00 a.m. (Eastern time) on the applicable Credit Date by wire transfer of same day funds in Dollars, at the Administrative Agent's Principal Office. Except as provided herein, upon satisfaction or waiver of the applicable conditions precedent specified herein, the Administrative Agent shall make the proceeds of such Credit Extension available to the Borrower on the applicable Credit Date by causing an amount of same day funds in Dollars equal to the proceeds of all Loans received by the Administrative Agent in connection with the Credit Extension from the Lenders to be credited to the account of the Borrower at the Administrative Agent's Principal Office (or to such other account as may be designated in writing to the Administrative Agent by the Borrower).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Incremental Facilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the terms and conditions set forth in this Agreement, the Borrower shall have the right, from time to time upon *at least* ten (10) Business Days' prior written notice to the Administrative Agent (or such shorter period of notice as the Administrative Agent may agree in its sole discretion), to (I) increase the Aggregate Revolving Commitment Amount, (II) increase the Aggregate Term Loan A Commitment Amount, and/or (III) increase the Aggregate DDTL Commitment Amount, and/or (IV) establish one (1) or more additional term loans of a separate Class, subject, however, in any such case of the foregoing <u>clauses (e)(i)(I</u>) through (<u>e)(i)(IV</u>), to the satisfaction of each of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the aggregate original principal or committed amount of all such Incremental Facilities, taken together, shall *not exceed* the Incremental Cap in effect at the time of the establishment and/or incurrence (as applicable) of any Incremental Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) each Incremental Facility shall be in a minimum principal or committed amount of Five Million Dollars ($5,000,000), and, if greater, in an integral multiple of Five-Hundred Thousand Dollars ($500,000) in excess thereof (or such lesser amounts as the Administrative Agent may agree in its sole discretion);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the establishment and incurrence (as applicable) of each Incremental Facility shall be contingent upon the receipt by the Administrative Agent of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) additional Commitments of the applicable Class in a corresponding amount to such requested increase in the aggregate amount of Commitments of such Class, or Incremental Term Loan Commitments in a corresponding amount to the aggregate original principal amount of such requested Incremental Term Loan of a separate Class, in each case of the foregoing of this <u>clause (e)(i)(C)(I</u>), from either existing Lenders or from one (1) or more other financial institutions (each such other financial institution, an "*<u>Additional Incremental Lender</u>*") that: (1) qualifies as an Eligible Assignee; and (2) is approved (such approval *not* to be unreasonably withheld, conditioned or delayed) by the Administrative Agent and, in the case of any increased or new Commitment in respect of an Incremental Revolver Increase, each of the Issuing Bank and the Swingline Lender, or from a combination of existing Lenders and/or Additional Incremental Lenders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) documentation from each existing Lender or Additional Incremental Lender providing a Commitment in respect of such Incremental Facility, in form and substance reasonably acceptable to the Administrative Agent, evidencing its: (I) agreement to provide such Commitment; and (II) acceptance of its obligations as a Lender under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the Administrative Agent shall have received all customary officer's certificates, legal opinions and other documents (including, without limitation, resolutions of the board of directors or managers (or equivalent governing body) of each Credit Party and customary opinions of counsel to the Credit Parties, if required to be provided by the existing Lenders and Additional Incremental Lenders providing Commitments in respect of such Incremental Facility) it may reasonably request relating to the corporate, limited liability company or other necessary authority for the establishing of such Incremental Facility and the validity thereof, and any other matters relevant thereto, all in form and substance reasonably satisfactory to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) the Borrower shall have delivered to the Administrative Agent a certificate, dated as of the date of establishment and/or incurrence (as applicable) of such Incremental Facility, and duly executed by an Authorized Officer of the Borrower, certifying, on behalf of the Borrower and each other Credit Party, that, both immediately *before* and immediately *after* giving effect to the establishment and/or incurrence (as applicable) of such Incremental Facility and the consummation of any related transactions (including, without limitation, any Acquisitions) substantially contemporaneously in connection therewith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) no Default or Event of Default shall have occurred and be continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) all representations and warranties of each Credit Party set forth in the Credit Documents (including, without limitation, the representations and warranties of each Credit Party set forth in <u>Article 6</u>) are true and correct, in all material respects (or, if such representation and warranty is qualified by materiality or Material Adverse Effect, in all respects), on, and as of, such date, except to the extent that such representations and warranties specifically relate to an earlier date, in which case, they are true and correct, in all material respects (or, if such representation and warranty is qualified by materiality or Material Adverse Effect, in all respects), as of such earlier date; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) the Collateral Agent shall have received such amendments to the Collateral Documents as the Collateral Agent shall request in order to cause the Collateral Documents to secure the Obligations (in a manner consistent with the terms of the Collateral Documents as in effect immediately *prior* to the date of establishment and/or incurrence (as applicable) of such Incremental Facility) after giving effect to the establishment and/or incurrence (as applicable) of such Incremental Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) if any Revolving Loans are outstanding at the time of establishment of any Incremental Revolver Increase, then the Borrower shall, if applicable, prepay one (1) or more of the then outstanding Revolving Loans (any such prepayment to be subject to <u>Section</u> <u>3.1(c</u>)) in an amount necessary such that, after giving effect to such Incremental Revolver Increase, each Lender will hold its respective *pro rata* share of outstanding Revolving Loans; <u>provided</u>, <u>that</u>, any such prepayment may be effected, in whole or in part, pursuant to a cashless rollover in accordance with <u>Section</u> <u>1.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any increased or new Commitments established in respect of an existing (as of the date that is immediately *prior* to the date of establishment of such Incremental Facility) Class of Commitments shall have terms substantially identical to those for Commitments of such Class under this Agreement as of the date that is immediately *prior* to the date of establishment of such Incremental Facility, except for fees payable to the Lenders providing increased or new Commitments in respect of such Incremental Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) the terms and provisions applicable to any Incremental Term Loan of a separate Class shall be as set forth in the applicable Incremental Facility Agreement establishing such Incremental Term Loan, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) such Incremental Term Loan shall have a final maturity date that is coterminous with, or later than, the Latest Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) the Weighted Average Life of such Incremental Term Loan shall *not* be *less than* the Weighted Average Life of any other then-outstanding Term Loan (including of the Term Loan A, the Delayed Draw Term Loan and any other then outstanding Incremental Term Loan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) such Incremental Term Loan shall share ratably in any mandatory prepayments of the Term Loans pursuant to <u>Section</u> <u>2.11(c</u>) (or otherwise provide for more favorable mandatory prepayment treatment for the Term Loan A, the Delayed Draw Term Loan and each other then outstanding Incremental Term Loan) and shall have ratable voting rights as the other Term Loans (or otherwise provide for more favorable voting rights for the Term Loan A, the Delayed Draw Term Loan and each other then outstanding Incremental Term Loan); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) the All-In Yield applicable to any Incremental Term Loan shall *not* be *more than* one-half of one percent (0.50%) *higher than* the corresponding All-In Yield applicable to any other then-outstanding Term Loan (including the Term Loan A, the Delayed Draw Term Loan and any other then outstanding Incremental Term Loan) (it being understood and agreed that interest on any other then-outstanding Term Loan may be increased to the extent necessary to satisfy this requirement);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J) the Borrower shall have paid any applicable upfront and/or arrangement fee(s) in connection with the establishment and/or incurrence (as applicable) of such Incremental Facility, as agreed by the Borrower in writing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K) except to the extent otherwise required or permitted pursuant to the foregoing of this <u>clause (e)(i</u>), all other terms and conditions of any Incremental Facility, if *not* consistent with the terms and conditions of the Revolving Loans or the other outstanding Term Loans, as applicable, shall be reasonably satisfactory to the Administrative Agent and the Collateral Agent.

Notwithstanding anything to the contrary in the foregoing of this <u>clause (e)(i</u>): (I) neither Administrative Agent, the Collateral Agent nor any Lender, nor any Affiliate of any of the foregoing (nor any of their respective successors or assigns), shall have any obligation to agree to increase any Class of its Commitments or any of its other obligations under this Agreement and the other Credit Documents, or to otherwise provide all, or any portion, of any Incremental Facility, and any decision by a Lender to agree to any such increase or to otherwise provide all, or any portion, of an Incremental Facility shall be made in its sole and absolute discretion, independently from, and without reliance upon, any other existing Lender or Additional Incremental Lender; and (II) neither any Arranger, the Administrative Agent, the Collateral Agent nor any Lender, nor any Affiliate of any of the foregoing (nor any of their respective successors or assigns), shall have any responsibility for arranging any Commitments in respect of any Incremental Facility, in each case of this <u>clause (e)(i)(II</u>), without their prior written consent and subject to such conditions (including, without limitation, fee arrangements) as they may require in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding anything to the contrary in <u>Section</u> <u>11.4</u>, the Administrative Agent, the Collateral Agent, the Credit Parties and the existing Lenders and/or Additional Incremental Lenders providing any Commitment(s) in respect of any Incremental Facility, without the further consent of any other Person, are expressly permitted to enter into an Incremental Facility Agreement to amend the Credit Documents to the extent necessary to give effect such Incremental Facility pursuant to the foregoing <u>clause (a</u>), and to implement any technical, administrative and/or mechanical changes that are necessary or advisable to be implemented in connection therewith (including, without limitation, to ensure continuing *pro rata* allocations of Loans and Commitments and to implement ratable participations in Letters of Credit).

Section 2.2 <u>Swingline</u><u> </u><u>Lo</u><u>ans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Swingline Loans Commitments</u>. During the Revolver Availability Period, subject to the terms and conditions hereof, the Swingline Lender shall make Swingline Loans to the Borrower in an aggregate amount up to, but *not exceeding*, the Swingline Sublimit; <u>provided</u>, <u>that</u>, after giving effect to the making of any Swingline Loan, in no event shall (i) the Aggregate Revolving Credit Exposure *exceed* the Aggregate Revolving Commitment Amount, and (ii) the aggregate amount of Revolving Credit Exposure of any Lender *exceed* the amount of such Lender's respective Revolving Commitment. Amounts borrowed pursuant to this <u>Section</u> <u>2.2</u> may be repaid and reborrowed during the Revolver Availability Period. The Swingline Lender's Revolving Commitment shall expire on the Revolving Commitment Termination Date and all Swingline Loans, and all other amounts owed hereunder with respect to the Swingline Loans and the Revolving Commitments, shall be Paid in Full by *no later than* such date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Borrowing Mechanics for Swingline Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to <u>clause (b)(vi</u>) below, whenever the Borrower desires that the Swingline Lender make a Swingline Loan, the Borrower shall deliver to the Administrative Agent a Funding Notice by *no later than* 11:00 a.m. on the proposed Credit Date (<u>provided</u>, <u>that</u>, a Funding Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Funding Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Swingline Lender shall make the amount of its Swingline Loan available to the Administrative Agent by *not later than* 3:00 p.m. (Eastern time) on the applicable Credit Date by wire transfer of same day funds in Dollars, at the Administrative Agent's Principal Office. Except as provided herein, upon satisfaction or waiver of the conditions precedent specified herein, the Administrative Agent shall make the proceeds of such Swingline Loans available to the Borrower on the applicable Credit Date by causing an amount of same day funds in Dollars equal to the proceeds of all such Swingline Loans received by the Administrative Agent from the Swingline Lender to be credited to the account of the Borrower at the Administrative Agent's Principal Office, or to such other account as may be designated in writing to the Administrative Agent by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) With respect to any Swingline Loans that have *not* been voluntarily prepaid by the Borrower pursuant to <u>Section</u> <u>2.11</u>, the Swingline Lender may, at any time in its sole and absolute discretion, deliver to the Administrative Agent (with a copy to the Borrower), by *no later than* 11:00 a.m. (Eastern time) on the day of the proposed Credit Date, a notice (which shall be deemed to be a Funding Notice given by the Borrower) requesting that each Lender holding a Revolving Commitment make Revolving Loans that are Base Rate Loans to the Borrower on such Credit Date in an aggregate principal amount equal to the principal amount of such Swingline Loans (the "*<u>Refunded Swingline</u> <u>Loans</u>*") outstanding on the date such notice is given which the Swingline Lender requests the Lenders to prepay (<u>provided</u>, <u>that</u>, a Funding Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Funding Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed). Notwithstanding anything to the contrary in this Agreement: (A) the proceeds of such Revolving Loans made by the Lenders other than the Swingline Lender shall be immediately delivered by the Administrative Agent to the Swingline Lender (and *not* to the Borrower) and applied to repay a corresponding portion of the Refunded Swingline Loans; and (B) on the day that such Revolving Loans are made, the Swingline Lender's Revolving Commitment Percentage of the Refunded Swingline Loans shall be deemed to be paid with the proceeds of a Revolving Loan made by the Swingline Lender to the Borrower, and such portion of the Swingline Loans deemed to be so paid shall no longer be outstanding as Swingline Loans but shall instead constitute part of the Swingline Lender's outstanding Revolving Loans to the Borrower. The Borrower hereby authorizes the Administrative Agent and the Swingline Lender to charge the Borrower's accounts with the Administrative Agent and the Swingline Lender (up to the amount available in each such account) in order to immediately pay the Swingline Lender the amount of the Refunded Swingline Loans to the extent the proceeds of such Revolving Loans made by the Lenders, including the Revolving Loans deemed to be made by the Swingline Lender, are insufficient to repay in full the Refunded Swingline Loans. If any portion of any such amount paid (or deemed to be paid) to the Swingline Lender should be recovered by, or on behalf of, the Borrower from the Swingline Lender in bankruptcy, by assignment for the benefit of creditors or otherwise, the loss of the amount so recovered shall be ratably shared among all Lenders in the manner contemplated by <u>Section</u> <u>2.14</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If, for any reason, Revolving Loans are *not* made pursuant to <u>clause (b)(iii</u>) above in an amount sufficient to repay any amounts owed to the Swingline Lender in respect of any outstanding Swingline Loans on or before the third (3<sup>rd</sup>) Business Day after demand for payment thereof by the Swingline Lender, each Lender holding a Revolving Commitment shall be deemed to, and hereby agrees to, have purchased a participation in such outstanding Swingline Loans, and in an amount equal to its Revolving Commitment Percentage of the applicable unpaid amount together with accrued interest

------

thereon; <u>provided</u>, <u>that</u>, any such participation purchased by a Lender shall be limited to an amount that would *not* cause the aggregate amount of Revolving Credit Exposure of such Lender (immediately after giving effect to such participation) to *exceed* the amount of such Lender's respective Revolving Commitment. On the Business Day that notice is provided by the Swingline Lender (or by the 11:00 a.m. (Eastern time) on the following Business Day, if such notice is provided after 2:00 p.m. (Eastern time)), each Lender holding a Revolving Commitment shall deliver to the Swingline Lender an amount equal to its respective participation in the applicable unpaid amount in same day funds at the Principal Office of the Swingline Lender. In order to evidence such participation each Lender holding a Revolving Commitment agrees to enter into a participation agreement at the request of the Swingline Lender in form and substance reasonably satisfactory to the Swingline Lender. In the event that any Lender holding a Revolving Commitment fails to make available to the Swingline Lender the amount of such Lender's participation as provided in this <u>clause (b)(v</u>), the Swingline Lender shall be entitled to recover such amount on demand from such Lender together with interest thereon for three (3) Business Days at the rate customarily used by the Swingline Lender for the correction of errors among banks and thereafter at the Base Rate, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notwithstanding anything contained herein to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) each Lender's obligation to make Revolving Loans for the purpose of repaying any Refunded Swingline Loans pursuant to <u>clause (b)(iii</u>) above, and each Lender's obligation to purchase a participation in any unpaid Swingline Loans pursuant to the immediately preceding paragraph, shall be absolute and unconditional and shall *not* be affected by any circumstance, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) any set-off, counterclaim, recoupment, defense or other right which such Lender may have against the Swingline Lender, any Credit Party or any other Person for any reason whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) the occurrence or continuation of a Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) any adverse change in the business, operations, properties, assets, condition (financial or otherwise) or prospects of any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) any breach of this Agreement or any other Credit Document by any party thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(V) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing;

<u>provided</u>, <u>that</u>, such obligations of each Lender are subject to the condition that the Swingline Lender had *not* received prior notice from the Borrower or the Required Lenders that any of the conditions under <u>Section</u> <u>5.2</u> to the making of the applicable Refunded Swingline Loans or other unpaid Swingline Loans were *not* satisfied at the time such Refunded Swingline Loans or other unpaid Swingline Loans were made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Swingline Lender shall *not* be obligated to make any Swingline Loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) if it has elected *not* to do so after the occurrence, and during the continuation, of a Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) it does *not* in good faith believe that all conditions under <u>Section</u> <u>5.2</u> to the making of such Swingline Loan have been satisfied or waived by the Required Lenders; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) at a time when a Defaulting Lender exists, unless the Swingline Lender has entered into arrangements satisfactory to it and the Borrower to eliminate the Swingline Lender's risk with respect to the Defaulting Lender's participation in such Swingline Loan, including by Cash Collateralizing such Defaulting Lender's Revolving Commitment Percentage of the outstanding Swingline Loans in a manner reasonably satisfactory to the Swingline Lender and the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) In order to facilitate the borrowing of Swingline Loans, the Borrower and the Swingline Lender may mutually agree, and are hereby authorized, to enter into an auto borrow agreement in form and substance satisfactory to the Swingline Lender and the Administrative Agent (the "*<u>Auto Borrow</u> <u>Agreement</u>*") providing for the automatic advance by the Swingline Lender of Swingline Loans under the conditions set forth in the Auto Borrow Agreement, subject to the conditions set forth in this Agreement. At any time that an Auto Borrow Agreement is in effect, advances under the Auto Borrow Agreement shall be deemed Swingline Loans for all purposes of this Agreement and the other Credit Documents, except that Borrowings of Swingline Loans under the Auto Borrow Agreement shall be made in accordance with the Auto Borrow Agreement. For purposes of determining the Aggregate Revolving Credit Exposure at any time during which an Auto Borrow Agreement is in effect, the aggregate outstanding principal balance of all Swingline Loans shall be deemed to equal the *sum of*: (A) the aggregate outstanding principal balance of all Swingline Loans at such time; *plus* (B) the maximum unused amount available to be borrowed under such Auto Borrow Agreement at such time.

Section 2.3 <u>Issuances</u><u> </u><u>of</u><u> </u><u>Letters</u><u> </u><u>of</u><u> </u><u>Credit</u><u> </u><u>and</u> <u>Purchase</u><u> </u><u>of</u><u> </u><u>Participations</u><u> </u><u>Therei</u><u>n</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Letters of Credit</u>. During the Revolver Availability Period, subject to the terms and conditions hereof, the Issuing Bank agrees to issue Letters of Credit for the account of the Borrower or any of its Subsidiaries in the aggregate amount up to, but *not exceeding*, the Letter of Credit Sublimit, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each Letter of Credit shall be denominated in Dollars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the stated amount of each Letter of Credit shall *not* be *less than* Fifty Thousand Dollars ($50,000) or such lesser amount as may be approved in writing by the Issuing Bank in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) immediately *after* giving effect to such issuance, in no event shall: (A) the Aggregate Revolving Credit Exposure *exceed* the Aggregate Revolving Commitment Amount; (B) the Revolving Credit Exposure of any Lender *exceed* the amount of such Lender's respective Revolving Commitment; and (C) the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, *exceed* the Letter of Credit Sublimit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in no event shall any Letter of Credit have an expiration date that is *later than* the *earlier* to occur of: (A) seven (7) calendar days *prior* to the Revolving Commitment Termination Date; and (B) the date which is one (1) year from the date of issuance of such Letter of Credit.

Subject to the foregoing (other than <u>clause (a)(iv</u>)) the Issuing Bank may agree that a Letter of Credit will automatically be extended for one or more successive periods *not to exceed* one (1) year each, unless the Issuing Bank elects *not* to extend for any such additional period; <u>provided</u>, <u>that</u>, (I) the Issuing Bank shall *not* extend any such Letter of Credit if it has received written notice that an Event of Default has occurred and is continuing at the time the Issuing Bank must elect to allow such extension, and (II) in the event that any Lender is at such time a Defaulting Lender, unless the Issuing Bank has entered into arrangements satisfactory to the Issuing Bank (in its sole discretion) with the Borrower or such Defaulting Lender to eliminate the Issuing Bank's Fronting Exposure with respect to such Lender (after giving effect to <u>Section</u> <u>2.16(a)(iv</u>) and any Cash Collateral provided by the Defaulting Lender), including by Cash Collateralizing such Defaulting Lender's Revolving Commitment Percentage of the aggregate issued and outstanding amount of all Letter of

------

Credit Obligations, taken together, in a manner reasonably satisfactory to Agents, the Issuing Bank shall *not* be obligated to issue or extend any Letter of Credit hereunder. The Issuing Bank may send a Letter of Credit or conduct any communication to or from the beneficiary via the Society for Worldwide Interbank Financial Telecommunication ("*<u>SWIFT</u>*") message or overnight courier, or any other commercially reasonable means of communicating with a beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice of Issuance</u>. Whenever the Borrower desires the issuance of a Letter of Credit, the Borrower shall deliver to the Administrative Agent an Issuance Notice by *no later than* 1:00 p.m. (Eastern time) *at least* three (3) Business Days in advance of the proposed date of issuance (or such shorter period as may be agreed to by the Issuing Bank in any particular instance) (<u>provided</u>, <u>that</u>, an Issuance Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Issuance Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed). Upon satisfaction or waiver of the conditions set forth in <u>Section</u> <u>5.2</u>, the Issuing Bank shall issue the requested Letter of Credit only in accordance the Issuing Bank's standard operating procedures (including, without limitation, the delivery by the Borrower of such executed documents and information pertaining to such requested Letter of Credit, including any Issuer Documents, as the Issuing Bank or the Administrative Agent may require). Upon the issuance of any Letter of Credit or amendment or modification to a Letter of Credit, the Issuing Bank shall promptly notify the Administrative Agent and each Lender of such issuance, which notice shall be accompanied by a copy of such Letter of Credit or amendment or modification to a Letter of Credit and the amount of such Lender's respective participation in such Letter of Credit pursuant to <u>clause (e</u>) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Responsibility of Issuing Bank With Respect to Requests for Drawings and Payments</u>. In determining whether to honor any drawing under any Letter of Credit by the beneficiary thereof, the Issuing Bank shall be responsible only to examine the documents delivered under such Letter of Credit with reasonable care so as to ascertain whether they appear on their face to be in accordance with the terms and conditions of such Letter of Credit. As between the Borrower and the Issuing Bank, the Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit issued by the Issuing Bank, by the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, the Issuing Bank shall *not* be responsible for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for and issuance of any such Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) failure of the beneficiary of any such Letter of Credit to comply fully with any conditions required in order to draw upon such Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) errors in interpretation of technical terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any such Letter of Credit or of the proceeds thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any consequences arising from causes beyond the control of the Issuing Bank, including any Governmental Acts; none of the above shall affect or impair, or prevent the vesting of, the Issuing Bank's rights or powers hereunder.

Without limiting the foregoing and in furtherance thereof, any action taken or omitted by the Issuing Bank under or in connection with the Letters of Credit or any documents and certificates delivered thereunder, if taken or omitted in good faith, shall not give rise to any liability on the part of the Issuing Bank to any Credit Party. Notwithstanding anything to the contrary contained in this <u>clause (c</u>), the Borrower shall retain any and all rights it may have against the Issuing Bank for any liability arising solely out of the gross negligence or willful misconduct of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Reimbursement by the Borrower of Amounts Drawn or Paid Under Letters of Credit</u>. In the event the Issuing Bank has determined to honor a drawing under a Letter of Credit, it shall immediately notify the Borrower and the Administrative Agent, and the Borrower shall reimburse the Issuing Bank on or before the Business Day immediately following the date on which such drawing is honored (the "*<u>Reimbursement</u> <u>Date</u>*") in an amount in Dollars and in same day funds equal to the amount of such honored drawing; <u>provided</u>, <u>that</u>, (i) anything contained herein to the contrary notwithstanding, (A) unless the Borrower shall have notified the Administrative Agent and the Issuing Bank *prior* to 11:00 a.m. (Eastern time) on the date such drawing is honored that the Borrower intends to reimburse the Issuing Bank for the amount of such honored drawing with funds other than the proceeds of Revolving Loans, the Borrower shall be deemed to have given a timely Funding Notice to the Administrative Agent requesting the Lenders to make Revolving Loans that are Base Rate Loans on the Reimbursement Date in an amount in Dollars equal to the amount of such honored drawing, and (B) subject to satisfaction or waiver of the conditions specified in <u>Section</u> <u>5.2</u>, the Lenders shall, on the Reimbursement Date, make Revolving Loans that are Base Rate Loans in the amount of such honored drawing, the proceeds of which shall be applied directly by the Administrative Agent to reimburse the Issuing Bank for the amount of such honored drawing, and (ii) if, for any reason, proceeds of Revolving Loans are *not* received by the Issuing Bank on the Reimbursement Date in an amount equal to the amount of such honored drawing, the Borrower shall reimburse the Issuing Bank, on demand, in an amount in same day funds equal to the *excess* of the amount of such honored drawing *over* the aggregate amount of such Revolving Loans, if any, which are so received. Nothing in this <u>clause (d</u>) shall be deemed to relieve any Lender from its obligation to make Revolving Loans on the terms and conditions set forth herein, and the Borrower shall retain any and all rights it may have against any Lender resulting from the failure of such Lender to make such Revolving Loans under this <u>clause (d</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Lenders' Purchase of Participations in Letters of Credit</u>. Immediately upon the issuance of each Letter of Credit, each Lender having a Revolving Commitment shall be deemed to have purchased, and hereby agrees to irrevocably purchase, from the Issuing Bank a participation in such Letter of Credit and any drawings honored thereunder in an amount equal to such Lender's Revolving Commitment Percentage (with respect to the Revolving Commitments) of the maximum amount which is or at any time may become available to be drawn thereunder; <u>provided</u>, <u>that</u>, any such participation purchased by a Lender shall be limited to an amount that would *not* cause the aggregate amount of Revolving Credit Exposure of such Lender (immediately after giving effect to such participation) to *exceed* the amount of such Lender's respective Revolving Commitment. In the event that the Borrower shall fail, for any reason, to reimburse the Issuing Bank as provided in <u>clause</u> <u>(d</u>) above, the Issuing Bank shall promptly notify each Lender of the unreimbursed amount of such honored drawing and of such Lender's respective participation therein based on such Lender's Revolving Commitment Percentage. Each Lender shall make available to the Issuing Bank an amount equal to its respective participation, in Dollars and in same day funds, at the office of the Issuing Bank specified in such notice, by *not later than* 12:00 p.m. (Eastern time) on the first (1<sup>st</sup>) Business Day (under the laws of the jurisdiction in which such office of the Issuing Bank is located) after the date notified by the Issuing Bank. In the event that any Lender fails to make available to the Issuing Bank on such Business Day the amount of such Lender's participation in such Letter of Credit as provided in this <u>clause (e</u>), the Issuing Bank shall be entitled to recover such amount on demand from such Lender together with interest thereon for three (3) Business Days at the rate

------

customarily used by the Issuing Bank for the correction of errors among banks and thereafter at the Base Rate. Nothing in this <u>clause (e</u>) shall be deemed to prejudice the right of any Lender to recover from the Issuing Bank any amounts made available by such Lender to the Issuing Bank pursuant to this Section in the event that it is determined that the payment with respect to a Letter of Credit in respect of which payment was made by such Lender constituted gross negligence or willful misconduct on the part of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order. In the event the Issuing Bank shall have been reimbursed by other Lenders pursuant to this <u>clause (e</u>) for all or any portion of any drawing honored by the Issuing Bank under a Letter of Credit, the Issuing Bank shall distribute to each Lender which has paid all amounts payable by it under this <u>clause (e</u>) with respect to such honored drawing such Lender's Revolving Commitment Percentage of all payments subsequently received by the Issuing Bank from the Borrower in reimbursement of such honored drawing when such payments are received. Any such distribution shall be made to a Lender at its primary address set forth below its name on <u>Appendix B</u> or at such other address as such Lender may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Obligations Absolute</u>. The obligation of the Borrower to reimburse the Issuing Bank for drawings honored under the Letters of Credit issued by it and to repay any Revolving Loans made by the Lenders pursuant to <u>clause (d</u>) above and the obligations of the Lenders under <u>clause (e</u>) above shall be unconditional and irrevocable and shall be paid strictly in accordance with the terms hereof under all circumstances including any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any lack of validity or enforceability of any Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the existence of any claim, set-off, defense (other than that such drawing has been repaid) or other right which the Borrower or any Lender may have at any time against a beneficiary or any transferee of any Letter of Credit (or any Persons for whom any such transferee may be acting), the Issuing Bank, a Lender or any other Person or, in the case of a Lender, against the Borrower, whether in connection herewith, the transactions contemplated herein or any unrelated transaction (including any underlying transaction between the Borrower or any of its Subsidiaries and the beneficiary for which any Letter of Credit was procured);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any draft or other document presented under any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) payment by the Issuing Bank under any Letter of Credit against presentation of a draft or other document which does *not* substantially comply with the terms of such Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any adverse change in the business, operations, properties, assets, or financial condition of the Borrower or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any breach hereof or any other Credit Document by any party thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the fact that an Event of Default or a Default shall have occurred and be continuing;<u> </u>

<u>provided</u>, <u>that</u>, in each case, that payment by the Issuing Bank under the applicable Letter of Credit shall *not* have constituted gross negligence or willful misconduct of the Issuing Bank under the circumstances in question, as determined by a court of competent jurisdiction in a final, non-appealable order.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Indemnification</u>. Without duplication of any obligation of the Credit Parties under <u>Section</u> <u>11.2</u>, in addition to amounts payable as provided herein, each of the Credit Parties hereby agrees, on a joint and several basis, to protect, indemnify, pay and save harmless the Issuing Bank from and against any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including reasonable out-of-pocket fees, expenses and disbursements of counsel) which the Issuing Bank may incur or be subject to as a consequence, direct or indirect, of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the issuance of any Letter of Credit by the Issuing Bank, other than as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the gross negligence or willful misconduct of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the wrongful dishonor by the Issuing Bank of a proper demand for payment made under any Letter of Credit issued by it; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the failure of the Issuing Bank to honor a drawing under any such Letter of Credit as a result of any Governmental Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Applicability of ISP</u>. Unless otherwise expressly agreed by the Issuing Bank and the Borrower when a Letter of Credit is issued, the rules of the ISP shall apply to each Letter of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Letters of Credit Issued for Subsidiaries</u>. Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary of the Borrower, the Borrower shall be obligated to reimburse the Issuing Bank hereunder for any and all drawings under such Letter of Credit. The Borrower hereby acknowledges that the issuance of Letters of Credit for the account of the Subsidiaries inures to the benefit of the Borrower, and that the Borrower's business derives substantial benefits from the businesses of such Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Conflict with Issuer Documents</u>. In the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control.

Section 2.4 <u>Pro</u><u> </u><u>Rata</u><u> </u><u>Shares;</u> <u>Availability</u><u> </u><u>of</u><u> </u><u>Funds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Pro Rata Shares</u>. All Loans shall be made, and all participations purchased, by the Lenders simultaneously and proportionately to their respective *pro rata* shares of the Loans, it being understood that no Lender shall be responsible for any default by any other Lender in such other Lender's obligation to make a Loan requested hereunder or purchase a participation required hereby nor shall any Commitment, or the portion of the aggregate outstanding principal balance of any Loans, of any Lender be increased or decreased as a result of a default by any other Lender in such other Lender's obligation to make a Loan requested hereunder or purchase a participation required hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Availability of Funds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Funding by Lenders; Presumption by Administrative Agent</u>. Unless the Administrative Agent shall have received notice from a Lender *prior* to the proposed date of any Borrowing (or, in the case of any Borrowing of Base Rate Loans, prior to 12:00 p.m. (Noon) (Eastern time) on the date of such Borrowing) that such Lender will *not* make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with <u>Section</u> <u>2.1(d</u>) or, in the case of a Borrowing of Base Rate Loans, that such Lender has made such share available in accordance with, and at the time required by, <u>Section</u> <u>2.1(d</u>) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has *not* in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from, and including, the date such

------

amount is made available to the Borrower to, but *excluding*, the date of payment to the Administrative Agent, at, (A) in the case of a payment to be made by such Lender, the *greater of* the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Loans, *plus*, in either case, any administrative, processing or similar fees customarily charged by the Administrative Agent in connection therewith. If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period. If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender's Loan included in such Borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Payments by the Borrower; Presumptions by Administrative Agent</u>. Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount due. In such event, if the Borrower has *not* in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or the Issuing Bank, in immediately available funds with interest thereon, for each day from, and including, the date such amount is distributed to it to, but *excluding*, the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

Notices given by the Administrative Agent under this <u>clause (b</u>) shall be conclusive absent manifest error.

Section 2.5 <u>Evidence</u><u> </u><u>of</u><u> </u><u>Debt;</u><u> </u><u>Register;</u><u> </u><u>Lenders</u><u>'</u> <u>Books</u><u> </u><u>and</u><u> </u><u>Records;</u><u> </u><u>Not</u><u>es</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Lenders' Evidence of Debt</u>. Each Lender shall maintain on its internal records an account or accounts evidencing the Obligations of the Borrower and each other Credit Party to such Lender, including the amounts of the Loans made by it and each repayment and prepayment in respect thereof. Any such recordation shall be conclusive and binding on the Borrower, absent manifest error; <u>provided</u>, <u>that</u>, (i) the failure to make any such recordation, or any error in such recordation, shall *not* affect any Lender's Commitment or the Borrower's obligations in respect of any applicable Loans, and (ii) in the event of any inconsistency between the Register and any Lender's records, the recordations in the Register shall govern in the absence of demonstrable error therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notes</u>. The Borrower shall execute and deliver to (i) each Lender on the Closing Date, (ii) each Person who is a permitted assignee of such a Lender pursuant to <u>Section</u> <u>11.5</u>, and (iii) each Additional Incremental Lender, in each case, to the extent requested by such Person, a Note to evidence such Person's respective portion of the Revolving Loans, Swingline Loans, Term Loans and other Obligations.

Section 2.6 <u>Scheduled</u><u> </u><u>Principal</u><u> </u><u>Payment</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans</u>. The aggregate outstanding principal balance of Revolving Loans (together with any unpaid accrued interest and fees with respect thereto) shall become due and payable, and be repaid, in full on the Revolving Commitment Termination Date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Swingline Loans</u>. The aggregate outstanding principal balance of Swingline Loans (together with any unpaid accrued interest and fees with respect thereto) shall become due and payable, and be repaid, in full on the *earlier* to occur of: (i) the date of demand therefor by the Swingline Lender; and (ii) the Revolving Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Term Loan A</u>. The outstanding principal balance of the Term Loan A shall be repaid in equal quarterly installments, beginning on the last Business Day of the Fiscal Quarter ending June 30, 2025, in an amount of Two Million Five-Hundred Thousand Dollars ($2,500,000) per Fiscal Quarter, payable on the last Business Day of each Fiscal Quarter (as such quarterly installments may hereafter be adjusted as a result of prepayments made pursuant to <u>Section</u> <u>2.11</u>), unless accelerated sooner pursuant to <u>Article 9</u>, with the outstanding principal balance of the Term Loan A (together with any unpaid accrued interest and fees with respect thereto) being due and payable in full on the Maturity Date for the Term Loan A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delayed Draw Term Loan</u>. The outstanding principal balance of each advance made under the Delayed Draw Term Loan during the DDTL Availability Period shall be repaid in equal quarterly installments, beginning on the last Business Day of the first (1<sup>st</sup>) full Fiscal Quarter ending after the date on which such advance is made, in an amount equal to the DDTL Amortization Payment Amount per Fiscal Quarter, payable on the last Business Day of each Fiscal Quarter (as such quarterly installments may hereafter be adjusted as a result of prepayments made pursuant to <u>Section</u> <u>2.11</u>), unless accelerated sooner pursuant to <u>Article 9</u>, with the outstanding principal balance of each advance under the Delayed Draw Term Loan (together with any unpaid accrued interest and fees with respect thereto) being due and payable in full on the Maturity Date for the Delayed Draw Term Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Incremental Term Loans</u>. The outstanding principal balance of any Incremental Term Loans shall be repaid in installments on the date(s), and in the amount(s), set forth in the applicable Incremental Facility Agreement establishing such Incremental Term Loan.

Section 2.7 <u>Interest</u><u> </u><u>on</u> <u>Loan</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise set forth herein, each Loan shall bear interest on the unpaid principal amount thereof from the date made through repayment (whether by acceleration or otherwise) thereof as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of Revolving Loans, the Term Loan A and the Delayed Draw Term Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) to the extent outstanding as Base Rate Loans, at the Base Rate *plus* the Applicable Margin; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) to the extent outstanding as SOFR Loans, at Term SOFR *plus* the Applicable Margin; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of Swingline Loans, at the Swingline Rate (or with respect to any Swingline Loan advanced pursuant to an Auto Borrow Agreement, such other rate as separately agreed in writing between the Borrower and the Swingline Lender);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any Incremental Term Loan, at the percentages per annum specified in the applicable Incremental Facility Agreement establishing such Incremental Term Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The basis for determining the rate of interest with respect to any Loan (except a Swingline Loan, which may only be made and maintained at the Swingline Rate (unless and until converted into a Revolving Loan pursuant to the terms and conditions hereof)), and the Interest Period with respect to any SOFR Loan, shall be selected by the Borrower and notified to the Administrative Agent and the Lenders pursuant to the applicable Funding Notice or Conversion / Continuation Notice, as the case may be. If, on any day, a Loan is

------

outstanding with respect to which a Funding Notice or Conversion / Continuation Notice has *not* been delivered to the Administrative Agent in accordance with the terms hereof specifying the applicable basis for determining the rate of interest, then for that day: (i) if such Loan is a SOFR Loan, such Loan shall become a Base Rate Loan; and (ii) if such Loan is a Base Rate Loan, such Loan shall remain a Base Rate Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with SOFR Loans, there shall be *no more than* eight (8) Interest Periods outstanding at any time. In the event the Borrower fails to specify between a Base Rate Loan or a SOFR Loan in the applicable Funding Notice or Conversion / Continuation Notice, such Loan: (i) if outstanding as a SOFR Loan, will be automatically continued, on the last day of the then-current Interest Period for such Loan, as a SOFR Loan with an equivalent Interest Period; and (ii) if outstanding as a Base Rate Loan will remain as, or (if *not* then outstanding) will be made as, a Base Rate Loan. In the event the Borrower fails to specify an Interest Period for any SOFR Loan in the applicable Funding Notice or Conversion / Continuation Notice, the Borrower shall be deemed to have selected an Interest Period of one (1) month. As soon as practicable *after* 10:00 a.m. (Eastern time) on each Interest Rate Determination Date, the Administrative Agent shall determine (which determination shall, absent manifest error, be final, conclusive and binding upon all parties) the interest rate that shall apply to each of the SOFR Loans for which an interest rate is then being determined (and for the applicable Interest Period) and shall promptly give notice thereof (in writing or by telephone confirmed in writing) to the Borrower and each Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Interest payable pursuant to this <u>Section</u> <u>2.7</u> shall be computed on the basis of: (i) for interest at the Base Rate, year of three hundred sixty-five (365) or three hundred sixty-six (366) days, as the case may be; and (ii) for all other computations of fees and interest, a year of three hundred sixty (360) days, in each case, for the actual number of days elapsed in the period during which it accrues. In computing interest on any Loan, the date of the making of such Loan, or the first (1<sup>st</sup>) day of an Interest Period applicable to such Loan, or, with respect to a Base Rate Loan being converted from a SOFR Loan, the date of conversion of such SOFR Loan to such Base Rate Loan, as the case may be, shall be included, and the date of payment of such Loan or the expiration date of an Interest Period applicable to such Loan or, with respect to a Base Rate Loan being converted to a SOFR Loan, the date of conversion of such Base Rate Loan to such SOFR Loan, as the case may be, shall be excluded; <u>provided</u>, <u>that</u>, if a Loan is repaid on the same day on which it is made, one (1) day's interest shall be paid on that Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If, as a result of any restatement of, or other adjustment to, the financial statements of the Borrower or for any other reason, the Borrower or the Lenders determine that (i) the Consolidated Leverage Ratio, as calculated by the Borrower as of any applicable date, was inaccurate, and (ii) a proper calculation of the Consolidated Leverage Ratio would have resulted in higher pricing for such period, then the Borrower shall immediately and retroactively be obligated to pay to the Administrative Agent, for the account of the holders of the Obligations, promptly on demand (and, in any event, by *not later than* ten (10) consecutive calendar days after the date of such demand) by the Administrative Agent (or, after the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower or any other Credit Party under the Bankruptcy Code or other Debtor Relief Law, automatically and any without further action(s) by the Agent or any Lender), an amount equal to the *excess* of the amount of interest and fees that should have been paid for such period *over* the amount of interest and fees actually paid for such period. This <u>clause (e</u>) shall *not* limit the rights of the Agent or any Lender, as the case may be, under any other provision of this Agreement. The Borrower's obligations under this <u>clause (e</u>) shall survive the termination of the Commitments and the repayment of all other Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as otherwise set forth herein, interest on each Loan shall accrue on a daily basis and shall be payable in arrears on and to: (i) each Interest Payment Date applicable to that Loan; (ii) upon any prepayment of that Loan (other than a voluntary prepayment of a Revolving Loan or Term Loan which interest shall be payable in accordance with <u>clause (f)(i</u>) above), to the extent accrued on the amount being prepaid; and (iii) at maturity, including final maturity.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Borrower agrees to pay to the Issuing Bank, with respect to drawings honored under any Letter of Credit issued by the Issuing Bank, interest on the amount paid by the Issuing Bank in respect of each such honored drawing from, and including, the date such drawing is honored to, but *excluding*, the date such amount is reimbursed by, or on behalf of, the Borrower at a rate equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for the period from, and including, the date such drawing is honored to, but *excluding*, the applicable Reimbursement Date, the rate of interest otherwise payable hereunder with respect to Revolving Loans that are Base Rate Loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) thereafter, a rate which is the *lesser* of: (y) two percent (2.0%) per annum in *excess* of the rate of interest otherwise payable hereunder with respect to Revolving Loans that are Base Rate Loans; and (z) the Highest Lawful Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Interest payable pursuant to <u>clause (g</u>) above shall be computed on the basis of a year of three hundred sixty-five (365) or three hundred sixty-six (366) days, as the case may be, for the actual number of days elapsed in the period during which it accrues, and shall be payable on demand or, if no demand is made, on the date on which the related drawing under a Letter of Credit is reimbursed in full. Promptly upon receipt by the Issuing Bank of any payment of interest pursuant to <u>clause (g</u>) above, the Issuing Bank shall distribute to each Lender, out of the interest received by the Issuing Bank in respect of the period from the date such drawing is honored to, but *excluding*, the date on which the Issuing Bank is reimbursed for the amount of such drawing (including any such reimbursement out of the proceeds of any Revolving Loans), the amount that such Lender would have been entitled to receive in respect of the letter of credit fee that would have been payable in respect of such Letter of Credit for such period if no drawing had been honored under such Letter of Credit. In the event the Issuing Bank shall have been reimbursed by the Lenders for all or any portion of such honored drawing, the Issuing Bank shall distribute to each Lender which has paid all amounts payable by it under <u>Section</u> <u>2.3(e</u>) with respect to such honored drawing such Lender's Revolving Commitment Percentage of any interest received by the Issuing Bank in respect of that portion of such honored drawing so reimbursed by the Lenders for the period from the date on which the Issuing Bank was so reimbursed by the Lenders to but excluding the date on which such portion of such honored drawing is reimbursed by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In connection with the use and/or administration of SOFR, the SOFR Reference Rate for any applicable tenor and/or any SOFR-Based Rate, the Administrative Agent shall have the right to make Conforming Changes in consultation with the Borrower from time to time and, notwithstanding anything to the contrary in this Agreement or in any other Credit Document, any amendment(s) implementing any such Conforming Changes shall become effective without any further action(s) and/or consent(s) of any other party to this Agreement or any other Credit Document or of any other Person. The Administrative Agent shall promptly notify the Borrower and the Lenders of the effectiveness of any Conforming Changes implemented in connection with the use and/or administration of SOFR, the SOFR Reference Rate for any applicable tenor and/or any SOFR-Based Rate.

Section 2.8 <u>Conversion</u><u> </u><u>/</u> <u>Continuati</u><u>on</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So long as no Default or Event of Default shall have occurred and then be continuing or would result therefrom, the Borrower shall have the option:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to convert at any time all, or any part, of any Loan equal to One-Hundred Thousand Dollars ($100,000) and, if greater, in an integral multiple of Fifty Thousand Dollars ($50,000) in excess thereof from one Type of Loan to another Type of Loan; <u>provided</u>, <u>that</u>, a SOFR Loan may only be converted on the expiration of the Interest Period applicable to such SOFR Loan unless the Borrower shall pay all amounts due under <u>Section</u> <u>3.1(c</u>) in connection with any such conversion; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon the expiration of any Interest Period applicable to any SOFR Loan, to continue all or any portion of such Loan as a SOFR Loan.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall deliver a Conversion / Continuation Notice to the Administrative Agent by *no later than* 1:00 p.m. (Eastern time) *at least* three (3) Business Days in advance of the proposed Conversion / Continuation Date. Except as otherwise provided herein, a Conversion / Continuation Notice for conversion to, or continuation of, any SOFR Loans (or telephonic notice in lieu thereof) shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to effect a conversion or continuation in accordance therewith.

Section 2.9 <u>Default Rate of Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any amount of principal of any Loan is *not* paid when due, whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any amount (other than principal of any Loan) payable by the Borrower under any Credit Document is *not* paid when due (after the expiration of any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then, at the request of the Required Lenders, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the occurrence and during the continuance of an Automatic Acceleration Event of Default or a Payment Event of Default, the Borrower shall pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the occurrence and during the continuance of an Event of Default other than an Automatic Acceleration Event of Default and a Payment Event of Default, the Borrower shall, at the request of the Required Lenders, pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the case of any SOFR Loan, upon the expiration of the Interest Period in effect at the time the Default Rate of interest is effective, each such SOFR Loan shall thereupon become a Base Rate Loan and shall thereafter bear interest at the Default Rate then in effect for Base Rate Loans. Payment or acceptance of the increased rates of interest provided for in this <u>Section 2.9</u> is *not* a permitted alternative to timely payment and shall *not* constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Administrative Agent or any Lender.

Section 2.10 <u>Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Commitment Fee</u>. The Borrower shall pay to the Administrative Agent, for the account of each Lender in accordance with its Revolving Commitment Percentage and its DDTL Commitment Percentage (as applicable), a commitment fee (the "*<u>Commitment Fee</u>*") equal to the *sum of*: (i) the *product of* (A) the Applicable Margin, *multiplied by* (B) the actual daily amount by which the Aggregate Revolving Commitment Amount *exceeds* the Aggregate Revolving Credit Exposure, subject to adjustment(s) as provided in <u>Section</u> <u>2.16</u>; *plus* (ii) the *product of* (A) the Applicable Margin, *multiplied by* (B) the Aggregate DDTL Commitment Amount then in effect. The Commitment Fee shall accrue at all times during the Revolver Availability Period and at all times during the DDTL Commitment Period, including at any time during which one or more of the conditions in <u>Article 5</u> is *not* met, and shall be due and payable quarterly in arrears on the last Business Day of each March, June, September and December, commencing with the first (1<sup>st</sup>) such date to occur after the Closing Date, on the Revolving Commitment Termination Date and on the DDTL Commitment Termination Date; <u>provided</u>, <u>that</u>, (I) no Commitment Fee shall accrue on any Revolving Commitment or any DDTL Commitment

------

of any Defaulting Lender so long as such Lender shall be a Defaulting Lender, and (II) any Commitment Fee accrued with respect to any Revolving Commitment or any DDTL Commitment of a Defaulting Lender during the period *prior* to the time that such Lender became a Defaulting Lender that remains unpaid at such time shall *not* be payable by the Borrower so long as such Lender shall be a Defaulting Lender. The Commitment Fee shall be calculated quarterly in arrears, and, if there is any change in the Applicable Margin during any quarter, the actual daily amount shall be computed and *multiplied by* the Applicable Margin separately for each period during such quarter that such Applicable Margin was in effect. For purposes of calculation of the Commitment Fee, Swingline Loans shall *not* be counted toward, or be considered as usage of, the Aggregate Revolving Commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Letter of Credit Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Letter of Credit Fees</u>. The Borrower shall pay to the Administrative Agent for the account of each Lender, in accordance with its Revolving Commitment Percentage, a Letter of Credit fee for each Letter of Credit equal to the Applicable Margin *multiplied by* the daily maximum amount available to be drawn under such Letter of Credit (collectively, the "*<u>Letter of Credit Fees</u>*"). For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with <u>Section</u> <u>1.3(b</u>). The Letter of Credit Fees shall be computed on a quarterly basis in arrears, and shall be due and payable on the last Business Day of each March, June, September and December, commencing with the first (1<sup>st</sup>) such date to occur after the issuance of such Letter of Credit, on the expiration date thereof and thereafter on demand; <u>provided</u>, <u>that</u>, (1) no Letter of Credit Fees shall accrue in favor of a Defaulting Lender so long as such Lender shall be a Defaulting Lender, and (2) any Letter of Credit Fees accrued in favor of a Defaulting Lender during the period prior to the time such Lender became a Defaulting Lender and unpaid at such time shall *not* be payable by the Borrower so long as such Lender shall be a Defaulting Lender. If there is any change in the Applicable Margin during any quarter, the daily maximum amount available to be drawn under each Letter of Credit shall be computed and *multiplied by* the Applicable Margin separately for each period during such quarter that such Applicable Margin was in effect. Notwithstanding anything to the contrary contained herein, upon the occurrence and during the continuance of an Automatic Acceleration Event of Default or a Payment Event of Default, all Letter of Credit Fees shall accrue at the Default Rate; and, upon the occurrence and during the continuance of an Event of Default other than an Automatic Acceleration Event of Default and a Payment Event of Default, then upon the request of the Required Lenders, all Letter of Credit Fees shall accrue at the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Fronting Fee and Documentary and Processing Charges Payable to Issuing Bank</u>. The Borrower shall pay, directly to the Issuing Bank for its own account, a fronting fee with respect to each Letter of Credit, at the rate per annum specified in the Fee Letter, computed on the daily amount available to be drawn under such Letter of Credit on a quarterly basis in arrears. Such fronting fee shall be due and payable on the last Business Day of each March, June, September and December in respect of the most recently-ended quarterly period (or portion thereof, in the case of the first (1<sup>st</sup>) payment), commencing with the first (1<sup>st</sup>) such date to occur after the issuance of such Letter of Credit, on its expiration date and thereafter on demand. For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with <u>Section</u> <u>1.3(b</u>). In addition, the Borrower shall pay directly to the Issuing Bank for its own account the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of the Issuing Bank relating to letters of credit as from time to time in effect. Such customary fees and standard costs and charges are due and payable on demand and are non-refundable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Fees</u>. The Borrower shall pay to Regions Capital Markets, a division of Regions Bank, and the Administrative Agent, for their own respective accounts, fees in the amounts, and at the times, specified in the Fee Letter. Such fees shall be fully earned when paid and shall *not* be refundable for any reason whatsoever, except to the extent set forth in the Fee Letter.

------

Section 2.11 <u>Prepayments</u><u> </u><u>/</u><u> </u><u>Commitment</u> <u>Reducti</u><u>ons</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voluntary Prepayments.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any time and from time to time, the Loans may be repaid in whole or in part without premium or penalty (subject to Section 3.1):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) with respect to Base Rate Loans, the Borrower may prepay any such Loans on any Business Day, in whole or in part, in an aggregate minimum amount of Five-Hundred Thousand Dollars ($500,000) and, if greater, in an integral multiple of One-Hundred Thousand Dollars ($100,000) in excess thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) with respect to SOFR Loans, the Borrower may prepay any such Loans on any Business Day, in whole or in part (together with any amounts due pursuant to <u>Section</u> <u>3.1(c</u>)), in an aggregate minimum amount of Five-Hundred Thousand Dollars ($500,000) and, if greater, in an integral multiple of One-Hundred Thousand Dollars ($100,000) in excess thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) with respect to Swingline Loans, the Borrower may prepay any such Loans on any Business Day, in whole or in part, in any amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All such prepayments shall be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) upon written or telephonic notice on the date of prepayment in the case of Base Rate Loans or Swingline Loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) upon *not less than* three (3) Business Days' prior written or telephonic notice in the case of SOFR Loans;

in each case, given to the Administrative Agent or the Swingline Lender, as the case may be, by 11:00 a.m. (Eastern time) on the date required and, if given by telephone, promptly confirmed in writing to the Administrative Agent (and the Administrative Agent will promptly transmit such telephonic or original notice for a Credit Extension by telefacsimile or telephone to each Lender) (<u>provided</u>, <u>that</u>, a notice of prepayment delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such notice of prepayment shall be revoked or extended if such event or transaction does *not* occur or is delayed). Upon the giving of any such notice, the principal amount of the Loans specified in such notice shall become due and payable on the prepayment date specified therein. Any such voluntary prepayment shall be applied as specified in <u>Section</u> <u>2.12(a</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Commitment Reductions</u> <u>/ Terminations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower may, from time to time upon *not less than* three (3) Business Days' prior written or telephonic notice confirmed in writing to the Administrative Agent (which original written or telephonic notice the Administrative Agent will promptly transmit by telefacsimile or telephone to each applicable Lender), at any time and from time to time, terminate, in whole or permanently reduce in part, the Revolving Commitments (ratably among the Lenders in accordance with their respective commitment percentage thereof), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any such partial reduction of the Revolving Commitments shall be in an aggregate minimum amount of Five Million Dollars ($5,000,000) and, if greater, in an integral multiple of One Million Dollars ($1,000,000) in excess thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Borrower shall *not* terminate or reduce the Aggregate Revolving Commitments if, immediately *after* giving effect thereto and to any concurrent prepayments hereunder, the Aggregate Revolving Credit Exposure *exceeds* the Aggregate Revolving Commitment Amount; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) if, immediately after giving effect to any reduction of the Aggregate Revolving Commitment Amount, the Letter of Credit Sublimit and/or the Swingline Sublimit *exceed* the Aggregate Revolving Commitment Amount, then the Letter of Credit Sublimit and/or the Swingline Sublimit, as applicable, shall be automatically reduced by the amount of such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower's notice to the Administrative Agent shall designate the date (which shall be a Business Day) of such termination or reduction and the amount of any partial reduction, and such termination or reduction of the Aggregate Revolving Commitments shall be effective on the date specified in the Borrower's notice and shall reduce the Revolving Commitments of each Lender proportionately to its Revolving Commitment Percentage thereof (<u>provided</u>, <u>that</u>, a notice of termination or reduction of the Aggregate Revolving Commitments delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such notice of termination or reduction shall be revoked or extended if such event or transaction does *not* occur or is delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary in the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Aggregate Term Loan A Commitments shall terminate automatically on the Closing Date upon the Borrowing of the Term Loan A on the Closing Date pursuant to this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Aggregate DDTL Commitments shall (I) be automatically reduced, on a Dollar-for-Dollar basis, by the aggregate original principal amount of each advance made under the Delayed Draw Term Loan during the DDTL Availability Period at the time such advance is made, and (II) terminate automatically on the DDTL Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mandatory Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Revolving Commitments</u>. If, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Aggregate Revolving Credit Exposure shall *exceed* the Aggregate Revolving Commitment Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, shall *exceed* the Letter of Credit Sublimit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the aggregate outstanding principal balance of all Swingline Loans, taken together, shall *exceed* the Swingline Sublimit;

then immediate prepayment will be made on, or in respect of, the Revolving Obligations in an amount equal to such excess; <u>provided</u>, <u>that</u>, except with respect to the foregoing <u>clause (c)(i)(B</u>), Letter of Credit Obligations will *not* be Cash Collateralized hereunder until the Revolving Loans and Swingline Loans shall have been Paid in Full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Asset Sales and Involuntary Dispositions</u>. Prepayment will be made on the Obligations on the third Business Day following receipt of Net Cash Proceeds in an amount equal to one hundred percent (100.0%) of the Net Cash Proceeds received from any Asset Sale or Involuntary Disposition involving any asset of any Credit Party, any Subsidiary or any other Regulated Entity (other than (A) any Asset Sales the aggregate amount of Net Cash Proceeds of which does *not exceed* Five-Hundred Thousand Dollars ($500,000) in any Fiscal Year, and (B) any Involuntary Dispositions the aggregate

------

amount of Net Cash Proceeds of which does *not exceed* Five-Hundred Thousand Dollars ($500,000) in any Fiscal Year, in each case, to the extent such Net Cash Proceeds are *not* reinvested in the assets (but *excluding* current assets as classified by GAAP) of the Credit Parties, Subsidiaries and other Regulated Entities within one hundred eighty (180) days of the date of such Asset Sale or Involuntary Disposition (it being understood that such prepayment shall be due immediately upon the expiration of such 180-day period); <u>provided</u>, <u>that</u>, no such reinvestment shall be made upon the occurrence and during the continuance of any Event of Default). Notwithstanding anything to the contrary in the foregoing, no prepayments will be required to be made on the Obligations with respect to the receipt of Net Cash Proceeds from the sale of any portfolio assets by any Regulated Entity in the ordinary course of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Debt Transactions</u>. Prepayment will be made on the Obligations in an amount equal to one hundred percent (100.0%) of the Net Cash Proceeds from any Debt Transactions on the Business Day following receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Specified Equity Contributions</u>. Prepayment will be made on the Obligations in an amount equal to one hundred percent (100.0%) of the Net Cash Proceeds from any Specified Equity Contribution on the Business Day following receipt thereof.

Notwithstanding any other provision of this <u>Section</u> <u>2.11</u>, with respect to any amount of Net Cash Proceeds subject to any of the foregoing <u>clauses (c)(ii</u>) through (<u>c)(iv</u>) attributable to a Foreign Subsidiary, in the event that the Borrower determines in good faith in consultation with the Administrative Agent that the upstreaming of cash equal to such amount by such Foreign Subsidiary would (i) violate any local law (*e*.*g*., financial assistance, thin capitalization, corporate benefit, or the fiduciary and statutory duties of the directors of such Foreign Subsidiary) or any term of any Organizational Document applicable to such Foreign Subsidiary required by Applicable Law, or (ii) cause any material adverse tax consequence to the Credit Parties, Subsidiaries and other Regulated Entities, then such amount shall be *excluded* from such Net Cash Proceeds; <u>provided</u>, <u>that</u>, for one (1) year from the date on which the obligation to make the applicable prepayment arose, the Borrower and such Foreign Subsidiary shall use all commercially reasonable efforts to overcome or eliminate any such restrictions or minimize any such costs of prepayment and, if successful, shall promptly make the applicable prepayment, unless the Borrower shall have determined in good faith in consultation with the Administrative Agent that such actions would require the expenditure of a material amount of funds.

Section 2.12 <u>Application of Prepayment</u><u>s</u>. Within each Loan, prepayments will be applied, *<u>first</u>*, to Base Rate Loans, and *<u>then</u>*, to SOFR Loans in direct order of Interest Period maturities. In addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voluntary Prepayments</u>. Voluntary prepayments will be applied as specified by the Borrower, <u>provided</u>, <u>that</u>, in the case of prepayments on any of the Term Loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the prepayment will be applied ratably to the Term Loans then outstanding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to each Term Loan then outstanding, the prepayments will be applied to remaining principal installments thereunder as directed by the Borrower (and, absent such direction, in direct order of maturity thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mandatory Prepayments</u>. Mandatory prepayments will be applied as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Mandatory prepayments in respect of the Revolving Commitments under <u>Section</u> <u>2.11(c)(i</u>) above shall be applied to the respective Revolving Obligations, as appropriate, but without a permanent reduction thereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Mandatory prepayments in respect of Asset Sales and Involuntary Dispositions under <u>Section</u> <u>2.11(c)(ii</u>), Debt Transactions under <u>Section</u> <u>2.11(c)(iii</u>), and Specified Equity Contributions under <u>Section</u> <u>2.11(c)(iv</u>) shall be applied as follows: (A)*<u>first</u>*, ratably to the Term Loans, until the same are paid in full; and (B)*<u>then</u>*, to the Revolving Obligations (without a permanent reduction thereof) as follows, (I)*<u>first</u>*, to the principal balance of the Swingline Loans, until the same shall have been paid in full, to the Swingline Lender, (II)*<u>second</u>*, to the principal balance of the Revolving Loans, until the same shall have been paid in full, *pro rata* to the Lenders based on their respective Revolving Commitments, and (III)*<u>third</u>*, to Cash Collateralize the Letters of Credit as of such date *plus* any accrued and unpaid fees thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Mandatory prepayments with respect to each of the Term Loans will be applied to remaining principal installments thereunder (including the installment due on the applicable Maturity Date therefor) on a *pro rata* basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Prepayments on the Obligations will be paid by the Administrative Agent to the Lenders ratably in accordance with their respective interests therein (except for Defaulting Lenders where their share will be applied as provided in <u>Section</u> <u>2.16(a)(ii</u>) hereof).

Section 2.13 <u>General</u><u> </u><u>Provisions</u> <u>Regarding</u><u> </u><u>Payment</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments by the Borrower of principal, interest, fees and other Obligations hereunder or under any other Credit Document shall be made in Dollars in immediately available funds, without defense, recoupment, setoff or counterclaim, free of any restriction or condition. The Administrative Agent shall, and the Borrower hereby authorizes the Administrative Agent to, debit a deposit account of the Borrower or any of its Subsidiaries held with the Administrative Agent or any of its Affiliates and designated for such purpose by the Borrower or such Subsidiary in order to cause timely payment to be made to the Administrative Agent of all principal, interest and fees due hereunder or under any other Credit Document (subject to sufficient funds being available in its accounts for that purpose).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the Administrative Agent is unable to debit a deposit account of the Borrower or any of its Subsidiaries held with the Administrative Agent or any of its Affiliates in order to cause timely payment to be made to the Administrative Agent of all principal, interest and fees due hereunder or any other Credit Document (including because insufficient funds are available in its accounts for that purpose), payments hereunder and under any other Credit Document shall be delivered to the Administrative Agent, for the account of the Lenders, *not later than* 2:00 p.m. on the date due at the Principal Office of the Administrative Agent or via wire transfer of immediately available funds to an account designated by the Administrative Agent (or at such other location as may be designated in writing by the Administrative Agent from time to time); for purposes of computing interest and fees, funds received by the Administrative Agent after that time on such due date shall be deemed to have been paid by the Borrower on the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All payments in respect of the principal amount of any Loan (other than voluntary repayments of Revolving Loans) shall be accompanied by payment of accrued interest on the principal amount being repaid or prepaid, and all such payments (and, in any event, any payments in respect of any Loan on a date when interest is due and payable with respect to such Loan) shall be applied to the payment of interest then due and payable before application to principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall promptly distribute to each Lender at such address as such Lender shall indicate in writing, such Lender's applicable *pro rata* share of all payments and prepayments of principal and interest due to such Lender hereunder, together with all other amounts due with respect thereto, including all fees payable with respect thereto, to the extent received by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary in the foregoing provisions hereof, if any Conversion / Continuation Notice is withdrawn as to any Affected Lender or if any Affected Lender makes Base Rate Loans in lieu of its *pro rata* share of any SOFR Loans, the Administrative Agent shall give effect thereto in apportioning payments received thereafter.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subject to the provisos set forth in the definition of "*Interest Period*", whenever any payment to be made hereunder shall be stated to be due on a day that is *not* a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest hereunder or of the Commitment Fee hereunder, but such payment shall be deemed to have been made on the date therefor for all other purposes hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Administrative Agent may, but shall *not* be obligated to, deem any payment by, or on behalf of, the Borrower hereunder that is *not* made in same day funds prior to 2:00 p.m. to be a non-conforming payment. Any such payment shall *not* be deemed to have been received by the Administrative Agent until the *later* of: (i) the time such funds become available funds; and (ii) the applicable next Business Day. The Administrative Agent shall give prompt telephonic notice to the Borrower and each applicable Lender (confirmed in writing) if any payment is non-conforming. Any non-conforming payment may constitute or become a Default or Event of Default in accordance with the terms of <u>Section</u> <u>9.1(a</u>). Interest shall continue to accrue on any principal as to which a non-conforming payment is made until such funds become available funds (but in no event *less than* the period from the date of such payment to the next succeeding applicable Business Day) at the Default Rate (unless otherwise provided by the Required Lenders) from the date such amount was due and payable until the date such amount is Paid in Full.

Section 2.14 <u>Sharing of</u><u> </u><u>Payments</u><u> </u><u>by Lender</u><u>s</u>. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of, or interest on, any of its Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of such Loans and accrued interest thereon or other such obligations *greater than* its *pro rata* share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of, and accrued interest on, their respective Loans and other amounts owing them; <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the provisions of this Section shall *not* be construed to apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any payment made by the Borrower pursuant to, and in accordance with, the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any amounts applied by the Swingline Lender to outstanding Swingline Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any amounts applied to Letter of Credit Obligations by the Issuing Bank or Swingline Loans by the Swingline Lender, as appropriate, from Cash Collateral provided under <u>Section</u> <u>2.15</u> or <u>Section</u> <u>2.16</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any payment obtained by a Lender as consideration for the assignment of, or sale of, a participation in any of its Loans, or participations in Letter of Credit Obligations, Swingline Loans or other obligations hereunder, to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this <u>Section</u> <u>2.14</u> shall apply).

Each of the Credit Parties consents to the foregoing and agrees, to the extent it may effectively do so under Applicable Laws, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Credit Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Credit Party in the amount of such participation.

------

Section 2.15 <u>Cash Collater</u><u>al</u>. At any time that there shall exist a Defaulting Lender, within one (1) Business Day following the written request of the Administrative Agent or the Issuing Bank (with a copy to the Administrative Agent) the Borrower shall Cash Collateralize the Issuing Bank's Fronting Exposure with respect to such Defaulting Lender in an amount sufficient to cover the applicable Fronting Exposure (after giving effect to <u>Section</u> <u>2.16(a)(iv</u>) and any Cash Collateral provided by the Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant of Security Interest</u>. The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grants to the Administrative Agent, for the benefit of the Issuing Bank, and agrees to maintain, a perfected first priority security interest in all such Cash Collateral as security for the Defaulting Lenders' obligation to fund participations in respect of Letter of Credit Obligations, to be applied pursuant to <u>clause (b</u>) below. If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent and the Issuing Bank as herein provided, or that the total amount of such Cash Collateral is less than the applicable Fronting Exposure, the Borrower will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Application</u>. Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this <u>Section</u> <u>2.15</u> or <u>Section</u> <u>2.16</u> in respect of Letters of Credit shall be applied to the satisfaction of the Defaulting Lender's obligation to fund participations in respect of Letter of Credit Obligations (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided for herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Requirement</u>. Cash Collateral (or the appropriate portion thereof) provided to reduce the Issuing Bank's Fronting Exposure shall no longer be required to be held as Cash Collateral pursuant to this <u>Section</u> <u>2.15</u> following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the elimination of the applicable Fronting Exposure (including by the termination of Defaulting Lender status of the applicable Lender); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the determination by the Administrative Agent and the Issuing Bank that there exists excess Cash Collateral;

<u>provided</u>, <u>that</u>, (x) that Cash Collateral furnished by, or on behalf of, a Credit Party shall *not* be released during the continuance of a Default or Event of Default (and, following application as provided in this <u>Section</u> <u>2.15</u>, may be otherwise applied in accordance with <u>Section</u> <u>9.3</u>) but shall be released upon the cure, termination or waiver of such Default or Event of Default in accordance with the terms of this Agreement, and (y) the Person providing Cash Collateral and the Issuing Bank or Swingline Lender, as applicable, may agree that Cash Collateral shall *not* be released, but instead held to support future anticipated Fronting Exposure or other obligations.

Section 2.16 <u>Defaulting</u><u> </u><u>Lender</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Defaulting Lender Adjustments</u>. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Waivers and Amendments</u>. Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in <u>Section</u> <u>11.4(a)(iii</u>).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Defaulting Lender Waterfall</u>. Any payment of principal, interest, fees or other amount (other than fees which any Defaulting Lender is not entitled to receive pursuant to <u>clause (a)(iii</u>) below) received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to <u>Article 9</u> or otherwise, and including any amounts made available to the Administrative Agent by that Defaulting Lender pursuant to <u>Section</u> <u>11.3</u>), shall be applied at such time or times as may be determined by the Administrative Agent as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) *<u>first</u>*, to the payment of any amounts owing by that Defaulting Lender to the Administrative Agent hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) *<u>second</u>*, to the payment on a *pro rata* basis of any amounts owing by that Defaulting Lender to the Issuing Bank or the Swingline Lender hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) *<u>third</u>*, to Cash Collateralize the Issuing Bank's Fronting Exposure with respect to such Defaulting Lender in accordance with <u>Section</u> <u>2.15</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) *<u>fourth</u>*, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which that Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) *<u>fifth</u>*, if so determined by the Administrative Agent and the Borrower, to be held in a non-interest bearing deposit account and released in order to: (I) satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this Agreement; and (II) Cash Collateralize the Issuing Bank's future Fronting Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with <u>Section</u> <u>2.15</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) *<u>sixth</u>*, to the payment of any amounts owing to the Lenders, the Issuing Bank or the Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the Issuing Bank or the Swingline Lender against that Defaulting Lender as a result of that Defaulting Lender's breach of its obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) *<u>seventh</u>*, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against that Defaulting Lender as a result of that Defaulting Lender's breach of its obligations under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) *<u>eighth</u>*, to that Defaulting Lender or as otherwise directed by a court of competent jurisdiction;

<u>provided</u>, <u>that</u>, if (x) such payment is a payment of the principal amount of any Loans or Letter of Credit Borrowings in respect of which that Defaulting Lender has *not* fully funded its appropriate share, and (y) such Loans or Letter of Credit Borrowings were made at a time when the conditions set forth in <u>Section</u> <u>5.2</u> were satisfied or waived, such payment shall be applied *solely* to the pay the Loans of, and Letter of Credit Borrowings owed to, all Non-Defaulting Lenders on a *pro rata* basis, prior to being applied to the payment of any Loans of, or Letter of Credit Borrowings owed to, such Defaulting Lender, until such time as all Loans and funded and unfunded participations in Letter of Credit Obligations and Swingline Loans are held by the Lenders *pro rata* in accordance with their Revolving Commitments without giving effect to <u>clause (a)(iv</u>) below. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this <u>clause (a)(ii</u>) shall be deemed paid to (and the underlying obligations satisfied to the extent of such payment) and redirected by that Defaulting Lender, and each Lender irrevocably consents hereto.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Certain Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Such Defaulting Lender shall *not* be entitled to receive any Commitment Fee, any fees with respect to Letters of Credit (except as provided in <u>clause (b</u>) below) or any other fees hereunder for any period during which that Lender is a Defaulting Lender (and the Borrower shall *not* be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Each Defaulting Lender shall be entitled to receive Letter of Credit Fees for any period during which that Lender is a Defaulting Lender only to the extent allocable to its Revolving Commitment Percentage of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to <u>Section</u> <u>2.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) With respect to any fee *not* required to be paid to any Defaulting Lender pursuant to <u>clause (a)(iii)(A</u>) or (<u>a)(iii)(B</u>) above, the Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender's participation in Letter of Credit Obligations or Swingline Loans that has been reallocated to such Non-Defaulting Lender pursuant to <u>clause (a)(iv</u>) below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) pay to the Issuing Bank and Swingline Lender, as applicable, the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to the Issuing Bank's or Swingline Lender's Fronting Exposure to such Defaulting Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) *not* be required to pay the remaining amount of any such fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Reallocation of Participations to Reduce Fronting Exposure</u>. All, or any part, of such Defaulting Lender's participation in Letter of Credit Obligations and Swingline Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Revolving Commitment Percentages (calculated without regard to such Defaulting Lender's Revolving Commitment), but only to the extent that: (x) the conditions set forth in <u>Section</u> <u>5.2</u> are satisfied at the time of such reallocation (and, unless the Borrower shall have otherwise notified the Administrative Agent at such time, the Borrower shall be deemed to have represented and warranted that such conditions are satisfied at such time); and (y) such reallocation does *not* cause the aggregate Revolving Credit Exposure at such time to *exceed* such Non-Defaulting Lender's Revolving Commitment. No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender's increased exposure following such reallocation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Cash Collateral, Repayment of Swingline Loans</u>. If the reallocation described in <u>clause</u> <u>(a)(iv</u>) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) *<u>first</u>*, prepay Swingline Loans in an amount equal to the Swingline Lender's Fronting Exposure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) *<u>second</u>*, Cash Collateralize the Issuing Bank's Fronting Exposure in accordance with the procedures set forth in <u>Section</u> <u>2.15</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Defaulting Lender Cure</u>. If the Borrower, the Administrative Agent and the Swingline Lender and the Issuing Bank agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon, as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit and Swingline Loans to be held *pro rata* by the Lenders in accordance with the Revolving Commitments (without giving effect to <u>clause (a)(iv</u>) above), whereupon such Lender will cease to be a Defaulting Lender; <u>provided</u>, <u>that</u>, no adjustments will be made retroactively with respect to fees accrued or payments made by, or on behalf of, the Borrower while that Lender was a Defaulting Lender; and <u>provided</u>, <u>further</u>, <u>that</u>, except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>New Swingline Loans</u> <u>/ Letters of Credit</u>. So long as any Lender is a Defaulting Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Swingline Lender shall *not* be required to fund Swingline Loans unless it is satisfied that it will have no Fronting Exposure after giving effect to such Swingline Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Issuing Bank shall *not* be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.

Section 2.17 <u>Removal</u><u> </u><u>or</u> <u>Replacement</u><u> </u><u>of</u><u> </u><u>Lender</u><u>s</u>. If:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender requests compensation under <u>Section</u> <u>3.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Credit Party is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>3.3</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Lender gives notice of an inability to fund SOFR Loans under <u>Section</u> <u>3.1(b</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any Lender is a Defaulting Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any Lender (a "*<u>Non</u>*<u>-</u>*<u>Consenting Lender</u>*") does *not* consent (including by way of a failure to respond in writing to a proposed amendment, consent or waiver by the date and time specified by the Administrative Agent) to a proposed amendment, consent, change, waiver, discharge or termination hereunder or with respect to any Credit Document that has been approved by the Required Lenders;

then, the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate without recourse (in accordance with, and subject to, the restrictions contained in, and consents required by, <u>Section</u> <u>11.5</u>), all of its interests, rights (other than its rights under <u>Section</u> <u>3.2</u>, <u>Section</u> <u>3.3</u> and <u>Section</u> <u>11.2</u>) and obligations under this Agreement and the related Credit Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower shall have paid to the Administrative Agent the assignment fee specified in <u>Section</u> <u>11.5(b)(iv</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in Letter of Credit Borrowings, as applicable, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Credit Documents (including any amounts under <u>Section</u> <u>3.1(c</u>)) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any such assignment resulting from a claim for compensation under <u>Section</u> <u>3.2</u> or payments required to be made pursuant to <u>Section</u> <u>3.3</u>, such assignment is reasonably expected to result in a reduction in such compensation or payments thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such assignment does *not* conflict with Applicable Laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in the case of any such assignment resulting from a Non-Consenting Lender's failure to consent to a proposed amendment, consent, change, waiver, discharge or termination, the successor replacement Lender shall have consented to the proposed amendment, consent, change, waiver, discharge or termination.

Each Lender agrees that in the event it, or its interests in the Loans and obligations hereunder, shall become subject to the replacement and removal provisions of this Section, it will cooperate with the Borrower and the Administrative Agent to give effect to the provisions hereof, including execution and delivery of an Assignment Agreement in connection therewith, but the replacement and removal provisions of this Section shall be effective regardless of whether an Assignment Agreement shall have been given.

A Lender shall *not* be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

**Article 3<u> </u>**

**<u>YIELD</u><u> </u><u>PROTECTION</u>** 

Section 3.1 <u>Making</u><u> </u><u>or</u><u> </u><u>Maintaining</u><u> </u><u>SOFR</u><u> </u><u>Loans;</u><u> </u><u>Benchmark</u> <u>Replaceme</u><u>nt</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Inability to Determine Rates</u>. Notwithstanding anything to the contrary in this Agreement or any other Credit Document (<u>provided</u>, <u>that</u>, for the avoidance of doubt, any Swap Agreement shall be deemed *not* to be a "*Credit Document*" for purposes of this <u>Section</u> <u>3.1</u>), in the event that the Administrative Agent shall have determined (which determination shall be final and conclusive and binding upon all parties to this Agreement), on any Interest Rate Determination Date with respect to any SOFR Loans, that reasonable and adequate means do *not* exist for ascertaining the interest rate applicable to such SOFR Loans on the basis provided for in the definition of "*Term SOFR*" (and any related defined terms used therein) in <u>Section</u> <u>1.1</u>, then the Administrative Agent shall give notice (either by telefacsimile or by telephone confirmed in writing) to the Borrower and each Lender of such determination, whereupon and whereafter, (i) no Loans may or shall be made as, or continued as or converted into, SOFR Loans until such time as the Administrative Agent shall have notified the Borrower and the Lenders in writing that the event(s) and/or circumstance(s) giving rise to such initial determination no longer exist, (ii) any Funding Notice(s) and/or any Conversion / Continuation Notice(s) given by the Borrower with respect to any Loan(s) in respect of which such determination was made shall be deemed to have been rescinded by the Borrower, and (iii) all such Loan(s) described in the foregoing <u>clause (a)(ii</u>) shall be automatically made or continued as, or converted into, as applicable, Base Rate Loans on the last day of the then-current Interest Period applicable thereto (without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u>), unless the Borrower shall have prepaid such Loan(s) in accordance with this Agreement; <u>provided</u>, <u>that</u>, if the event(s) and/or circumstance(s) giving rise to such initial determination shall have occurred but only with respect to certain (but *not* all) of the tenors of the then applicable term rate Benchmark (including, for the avoidance of doubt, the SOFR Reference Rate for any applicable tenor), then (A) the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such illegal or impracticable tenor, and (B) if a tenor that was removed

------

pursuant to the foregoing <u>clause (a)(A</u>) is subsequently displayed on a screen or information service for a Benchmark, then the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Illegality or Impracticability of the Benchmark</u>. Subject to <u>clause (g</u>) below, in the event that, on any date, any Lender shall have determined (which determination (A) shall be final and conclusive and binding upon all parties to this Agreement, but (B) shall be made only after written notice to, and consultation with, the Borrower and the Administrative Agent) that a Benchmark Illegality / Impracticability Event has occurred with respect to such Lender, then such Lender shall be an "*<u>Affected Lender</u>*" and such Lender shall, on that date, give notice (either by telefacsimile or by telephone confirmed in writing) to the Borrower and the Administrative Agent of such determination (which notice the Administrative Agent shall promptly transmit to each other Lender). Thereafter: (i) the obligation of such Affected Lender to make Loans as, or to continue Loans as or to convert Loans to, SOFR Loans shall be suspended, until such notice shall have been withdrawn by such Affected Lender in writing to the Administrative Agent and the Borrower; (ii) to the extent that such determination by such Affected Lender relates to a SOFR Loan, or to a continuation thereof or a conversion of outstanding Loans thereto, then being requested by the Borrower pursuant to a Funding Notice or Conversion / Continuation Notice (as applicable), then the Affected Lender shall make such Loan as (or convert such Loan to, as applicable) a Base Rate Loan, determined without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u>; (iii) such Affected Lender's obligation to maintain its outstanding SOFR Loans (the "*<u>Affected</u> <u>Loans</u>*") shall be terminated at the *earlier* to occur of (A) the expiration of the Interest Period then in effect with respect to such Affected Loans, or (B) when required by Applicable Law; and (iv) such Affected Loans shall automatically convert into Base Rate Loans, determined without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u>, on the date of such termination described in the foregoing <u>clause (b)(iii</u>). Notwithstanding anything to the contrary in the foregoing of this <u>clause (b</u>), to the extent that a determination by an Affected Lender as described above relates to a SOFR Loan (or a continuation thereof or a conversion of outstanding Loans thereto) then being requested by the Borrower pursuant to a Funding Notice or Conversion / Continuation Notice (as applicable), then the Borrower shall have the option, subject to the provisions of the foregoing <u>clause (a</u>), to rescind such Funding Notice or Conversion / Continuation Notice (as applicable) as to all Lenders by giving notice (either by telefacsimile or telephone confirmed in writing) to the Administrative Agent of such rescission on the date on which such Affected Lender gives notice of its determination as described in the foregoing of this <u>clause (b</u>) (which notice of rescission the Administrative Agent shall promptly transmit to each other Lender). Except as otherwise provided in the immediately preceding sentence, nothing in this <u>clause (b</u>) shall affect the obligation of any Lender, other than an Affected Lender, to make or maintain Loans as, or to continue outstanding Loans as or convert outstanding Loans into, SOFR Loans in accordance with the terms of this Agreement. Notwithstanding anything to the contrary in the foregoing, if a Benchmark Illegality / Impracticability Event shall have occurred but only with respect to certain (but *not* all) of the tenors of the then applicable term rate Benchmark (including, for the avoidance of doubt, the SOFR Reference Rate for any applicable tenor), then: (I) the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such illegal or impracticable tenor; and (II) if a tenor that was removed pursuant to the foregoing <u>clause (b)(I</u>) is *not*, or is no longer, subject to a Benchmark Illegality / Impracticability Event, then the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Compensation for Breakage or Non-Commencement of Interest Periods</u>. The Borrower shall compensate each Lender, upon written request by such Lender (which request shall set forth the basis for requesting such amounts), for all reasonable out-of-pocket losses, expenses and liabilities (including any interest paid, or calculated to be due and payable, by such Lender to lenders of funds borrowed by it to make or carry its SOFR Loans, and any loss, expense or liability sustained by such Lender in connection with the liquidation or re-employment of such funds, but *excluding* loss of anticipated profits) that such Lender sustains if: (i) for any reason (other than a default by such Lender), a borrowing of any SOFR Loans does *not* occur on a date specified therefor in a Funding Notice (or a telephonic request for borrowing), or a conversion to, or continuation of, any

------

SOFR Loans does *not* occur on a date specified therefor in a Conversion / Continuation Notice (or a telephonic request for conversion or continuation); (ii) any prepayment or other principal payment of, or any conversion of, any of its SOFR Loans occurs on any day other than the last day of an Interest Period applicable to that Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise), including as a result of an assignment in connection with the replacement of a Lender pursuant to <u>Section</u> <u>2.17</u>; or (iii) any prepayment of any of its SOFR Loans is *not* made on any date specified in a notice of prepayment given by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Booking of SOFR Loans</u>. Any Lender may make, carry or transfer SOFR Loans at, to, or for the account of any of its branch offices or the office of an Affiliate of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certificates for Reimbursement</u>. A certificate of a Lender setting forth, in reasonable detail, the amount(s) necessary to compensate such Lender, as specified in the foregoing <u>clause (c</u>), and the circumstances giving rise thereto, shall be delivered to the Borrower and shall be conclusive absent manifest error. In the absence of any such manifest error, the Borrower shall pay to the applicable Lender or the Issuing Bank, as the case may be, the amount(s) shown as due on any such certificate promptly and, in any event, within ten (10) Business Days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Delay in Requests</u>. The Borrower shall *not* be required to compensate a Lender pursuant to the foregoing <u>clause (c</u>) for any such amount(s) incurred *more than* six (6) calendar months *prior* to the date on which such Lender shall have delivered to the Borrower the certificate referenced in the foregoing <u>clause (e</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Benchmark Replacement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Generally</u>*. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, if the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error), or the Required Lenders (individually or jointly) notify the Administrative Agent (with, in the case of the Required Lenders, a copy delivered to the Borrower) that the Required Lenders (as applicable) have determined, that a Benchmark Illegality / Impracticability Event has occurred, then, on a date and time determined by the Administrative Agent (any such date, a "*<u>Benchmark Replacement Date</u>*"), which date shall be at the end of an Interest Period or on the relevant Interest Payment Date, as applicable, for interest calculated, the then current Benchmark shall be replaced under this Agreement and the other Credit Documents with the Benchmark Replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Amendment</u>*. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, (A) if the Administrative Agent determines that any alternative Benchmark (other than the SOFR Reference Rate for any applicable tenor) set forth in the definition of "*Benchmark Replacement*" in <u>Section</u> <u>1.1</u> is available on, or prior to, the applicable Benchmark Replacement Date, or (B) a Benchmark Illegality / Impracticability Event has occurred with respect to a Benchmark Replacement (other than the SOFR Reference Rate for any applicable tenor) then in effect, then, in each case of the foregoing <u>clauses (g)(ii)(A</u>) and (<u>g)(ii)(B</u>), the Administrative Agent and the Borrower may amend this Agreement *solely* for the purpose of replacing the SOFR Reference Rate (for any applicable tenor), or any then current Benchmark Replacement, in accordance with this <u>Section</u> <u>3.1</u> at the end of any applicable Interest Period, relevant Interest Payment Date or payment period for interest calculated, as applicable, with another alternate benchmark rate, in any such case, giving due consideration to any evolving, or then existing, convention(s) for similar Dollar-denominated syndicated credit facilities for such alternative benchmark(s), and, in each case, including any mathematical or other adjustments to such benchmark(s) (giving due consideration to any evolving, or then existing, convention(s) for similar Dollar-denominated syndicated credit facilities for such benchmark(s)), which adjustment(s), or method(s) for calculating such adjustment(s), shall be published on an information service as selected by the Administrative Agent from time to time in its reasonable discretion and may be periodically updated. For the avoidance of doubt, any such proposed rate and adjustment(s) shall constitute a Benchmark Replacement. Any such amendment shall become effective at 5:00 P.M. (New York City time) on the date that is five (5) Business Days *after* the date on which the Administrative Agent shall

------

have posted a copy of such proposed amendment to all Lenders and the Borrower, without any further action(s) and/or consent(s) of any Credit Party, any other party to this Agreement or any other Credit Document and/or any other Person, so long as the Administrative Agent has *not* received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>Notices</u>*. The Administrative Agent shall notify (in one (1) or more notices) the Borrower and each Lender of the implementation of any Benchmark Replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *<u>Administration of Benchmark Replacement</u>*. Any Benchmark Replacement shall be applied in a manner consistent with market practice; <u>provided</u>, <u>that</u>, to the extent that such market practice is *not* administratively feasible for the Administrative Agent, then such Benchmark Replacement shall be applied in a manner as otherwise reasonably determined by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *<u>Floor</u>*. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, if, at any time, any Benchmark Replacement, as determined in accordance with this <u>Section</u> <u>3.1</u> and the related definitions in <u>Section</u> <u>1.1</u>, shall be *less than* the Floor, then such Benchmark Replacement shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents; <u>provided</u>, <u>that</u>, notwithstanding anything to the contrary in this Agreement or in any other Credit Document, at any time that the applicable interest rate for Base Rate Loans is determined without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u> by operation of this <u>Section</u> <u>3.1</u>, then the "*Floor*", for purposes of calculating such applicable interest rate, shall be increased by one percent (1.00%) per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *<u>Conforming Changes</u>*. In connection with the use, administration, adoption and/or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Conforming Changes from time to time in consultation with the Borrower, and, notwithstanding anything to the contrary in this Agreement or in any other Credit Document, any amendments implementing such Conforming Changes will become effective without any further action(s) and/or consent(s) of any Credit Party, any other party to this Agreement or any other Credit Document and/or any other Person; <u>provided</u>, <u>that</u>, with respect to any such amendment effected in reliance on this <u>clause</u> <u>(g)(vi</u>), the Administrative Agent shall post a copy of such amendment implementing such Conforming Changes to the Borrower and the Lenders reasonably promptly after such amendment becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) *<u>Standards for Decisions and Determinations</u>*. Any determination, decision, or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this <u>clause (g</u>), including, without limitation, any determination with respect to a tenor, rate or adjustment, or of the occurrence or non-occurrence of an event, circumstance or date, and any decision to take, or refrain from taking, any action or any selection, will be conclusive and binding absent manifest error, and may be made in its or their, as applicable, sole discretion, and, in any event, without consent from any Credit Party, any other party to this Agreement or any other Credit Document or any other Person, except, in each case, as expressly required pursuant to this <u>clause (g</u>).

Section 3.2 <u>Increased</u> <u>Cost</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Increased Costs Generally</u>. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender or the Issuing Bank;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in <u>clauses (b</u>) through (<u>d</u>) of the definition of "*Excluded Taxes*", and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on any Lender or the Issuing Bank or the secured overnight financing or any other applicable interbank lending market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its obligation to make any such Loan, or to increase the cost to such Lender, the Issuing Bank or such other Recipient of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender, Issuing Bank or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, Issuing Bank or other Recipient, the Borrower will pay to such Lender, Issuing Bank or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender, Issuing Bank or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Capital and Liquidity Requirements</u>. If any Lender, the Issuing Bank or the Swingline Lender (for purposes hereof, may be referred to collectively as "*the Lenders*" or a "*Lender*") determines that any Change in Law affecting such Lender or any lending office of such Lender or such Lender's holding company, if any, regarding capital or liquidity ratios or requirements has or would have the effect of reducing the rate of return on such Lender's capital or on the capital of such Lender's holding company, if any, as a consequence of this Agreement, the commitments of such Lender hereunder or the Loans made by, or participations in Letters of Credit and Swingline Loans held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or such Lender's holding company could have achieved but for such Change in Law (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender, as the case may be, such additional amount or amounts as will compensate such Lender or such Lender's holding company for any such reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificates for Reimbursement</u>. A certificate of a Lender or the Issuing Bank setting forth in reasonable detail the amount or amounts necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be, as specified in <u>clauses (a</u>) or (<u>b</u>) above and the circumstances giving rise thereto shall be delivered to the Borrower and shall be conclusive absent manifest error. In the absence of any such manifest error, the Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within ten (10) Business Days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delay in Requests</u>. Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section shall *not* constitute a waiver of such Lender's or the Issuing Bank's right to demand such compensation, <u>provided</u>, <u>that</u>, the Borrower shall *not* be required to compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs incurred or reductions suffered *more than* six (6) months prior to the date that such Lender or the Issuing Bank, as the case may be, delivers to the Borrower the certificate referenced in <u>clause (c</u>) above and notifies the Borrower of such Lender's or the Issuing Bank's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).

Section 3.3 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Issuing Bank</u>. For purposes of this <u>Section</u> <u>3.3</u>, the term "*Lender*" shall include the Issuing Bank and the term "*Applicable Laws*" shall include FATCA.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes</u>. Any and all payments by, or on account of, any obligation of any Credit Party hereunder or under any other Credit Document shall be made without deduction or withholding for any Taxes, except as required by Applicable Laws. If any Applicable Laws (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Laws and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Credit Party shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment of Other Taxes by the Credit Parties</u>. The Credit Parties shall timely pay to the relevant Governmental Authority in accordance with Applicable Laws, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Tax Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Credit Parties shall jointly and severally indemnify each Recipient and shall make payment in respect thereof within ten (10) Business Days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of any such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Lender shall severally indemnify the Administrative Agent, within ten (10) Business Days after demand therefor, for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Indemnified Taxes attributable to such Lender (but only to the extent that any Credit Party has *not* already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Credit Parties to do so);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Taxes attributable to such Lender's failure to comply with the provisions of <u>Section</u> <u>11.5(d</u>) relating to the maintenance of a Participant Register; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Excluded Taxes attributable to such Lender;

in each case, that are payable or paid by the Administrative Agent in connection with any Credit Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Credit Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this <u>clause (d)(ii</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by any Credit Party to a Governmental Authority pursuant to this Section, such Credit Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of a return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Status of Lenders; Tax Documentation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Credit Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by Applicable Laws or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two (2) sentences, the completion, execution and submission of such documentation (other than such documentation set forth in <u>clauses (f)(ii)(A</u>), (<u>f)(ii)(B</u>) and (<u>f)(ii)(D</u>) below) shall *not* be required if, in the Lender's reasonable judgment, such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), duly completed and executed originals of IRS Form W–9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party: (x) with respect to payments of interest under any Credit Document, duly completed and executed originals of IRS Form W–8BEN–E (or W–8BEN as applicable) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty; and (y) with respect to any other applicable payments under any Credit Document, IRS Form W–8BEN–E (or W–8BEN as applicable) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) duly completed and executed originals of IRS Form W–8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 871 or 881(c) of the Internal Revenue Code: (x) a certificate substantially in the form of <u>Exhibit 3.3–1</u> to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, a "10 percent shareholder" of the Borrower within the meaning of

------

Section 881(c)(3)(B) of the Internal Revenue Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Internal Revenue Code (a "*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Tax Compliance Certificate</u>*"); and (y) duly completed and executed originals of IRS Form W–8BEN–E (or W–8BEN as applicable); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) to the extent a Foreign Lender is not the beneficial owner, duly completed and executed originals of IRS Form W–8IMY, accompanied by IRS Form W–8ECI, IRS Form W–8BEN–E (or W–8BEN as applicable), a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit 3.3–2</u> or <u>Exhibit 3.3–3</u>, IRS Form W–9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u>, <u>that</u>, if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit 3.3–4</u> on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), duly executed originals of any other form prescribed by Applicable Laws as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Laws to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if a payment made to a Lender under any Credit Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by Applicable Laws (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this <u>clause (f)(ii)(D</u>), "*<u>FATCA</u>*" shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that, if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Treatment of Certain Refunds</u>. Unless required by Applicable Laws, at no time shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a Lender, or have any obligation to pay to any Lender, any refund of Taxes withheld or deducted from funds paid for the account of such Lender. If any indemnified party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this <u>Section</u> <u>3.3</u> (including by the payment of additional amounts pursuant to this <u>Section</u> <u>3.3</u>), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this <u>Section</u> <u>3.3</u> with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of the indemnified party, shall repay to such

------

indemnified party the amount paid over pursuant to this <u>clause (g</u>) (*plus* any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this <u>clause (g</u>), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this <u>clause</u> <u>(g</u>) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification, and giving rise to such refund, had not been deducted, withheld or otherwise imposed, and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Survival</u>. Each party's obligations under this <u>Section</u> <u>3.3</u> shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Credit Document.

Section 3.4 <u>Mitigation</u><u> </u><u>Obligations;</u><u> </u><u>Designation</u><u> </u><u>of</u><u> </u><u>a</u> <u>Different</u><u> </u><u>Lending</u><u> </u><u>Offic</u><u>e</u>. If any Lender requests compensation under <u>Section</u> <u>3.2</u>, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>3.3</u>, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment: (i) would eliminate or reduce amounts payable pursuant to <u>Section</u> <u>3.2</u> or <u>Section</u> <u>3.3</u>, as the case may be, in the future; and (ii) would *not* subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

**Article 4<u> </u>**

**<u>GUARANTY</u>** 

Section 4.1 <u>The Guarant</u><u>y</u>. Each of the Guarantors hereby jointly and severally guarantees to the Administrative Agent, the Lenders, the Qualifying Swap Providers, the Qualifying Treasury Management Banks and the other holders of the Obligations as hereinafter provided, as primary obligor and not as surety, the prompt payment of the Obligations (the "*<u>Guaranteed Obligations</u>*") in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise) strictly in accordance with the terms thereof. The Guarantors hereby further agree that, if any of the Obligations are *not* Paid in Full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise), the Guarantors will, jointly and severally, promptly pay the same, without any demand or notice whatsoever, and that, in the case of any extension of time of payment or renewal of any of the Obligations, the same will be promptly Paid in Full when due (whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise) in accordance with the terms of such extension or renewal.

Notwithstanding any provision to the contrary contained herein, in any other of the Credit Documents, Swap Agreements, Treasury Management Agreements or other documents relating to the Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the obligations of each Guarantor under this Agreement and the other Credit Documents shall be limited to an aggregate amount equal to the largest amount that would *not* render such obligations subject to avoidance under the Debtor Relief Laws or any comparable provisions of any applicable state law; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Guaranteed Obligations of a Guarantor shall *exclude* any Excluded Swap Obligations with respect to such Guarantor.

Section 4.2 <u>Obligations</u><u> </u><u>Unconditiona</u><u>l</u>. The obligations of the Guarantors under <u>Section</u> <u>4.1</u> are joint and several, absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of any of the Credit Documents, Swap Agreements or Treasury Management Agreements, or any other agreement or instrument referred to therein, or any substitution, release, impairment or exchange of any other guarantee of or security for any of the Obligations, and, to the fullest extent permitted by Applicable Laws, irrespective of any law or regulation or other circumstance whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this <u>Section</u> <u>4.2</u> that the obligations of the Guarantors hereunder shall be absolute and unconditional under any and all circumstances. Each Guarantor agrees that such Guarantor shall have no right of subrogation, indemnity, reimbursement or contribution against the Borrower or any other Guarantor for amounts paid under this <u>Article 4</u> until such time as the Obligations have been Paid in Full. Without limiting the generality of the foregoing, it is agreed that, to the fullest extent permitted by Applicable Law, the occurrence of any one or more of the following shall not alter or impair the liability of any Guarantor hereunder, which shall remain absolute and unconditional as described above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at any time or from time to time, without notice to any Guarantor, the time for any performance of or compliance with any of the Obligations shall be extended, or such performance or compliance shall be waived;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any of the acts mentioned in any of the provisions of any of the Credit Documents, any Secured Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, or any Secured Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand, or any other agreement or instrument referred to in the Credit Documents, such Secured Swap Agreements or such Secured Treasury Management Agreements shall be done or omitted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the maturity of any of the Obligations shall be accelerated, or any of the Obligations shall be modified, supplemented or amended in any respect, or any right under any of the Credit Documents, any Secured Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, or any Secured Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand, or any other agreement or instrument referred to in the Credit Documents, such Secured Swap Agreements or such Secured Treasury Management Agreements shall be waived or any other guarantee of any of the Obligations or any security therefor shall be released, impaired or exchanged in whole or in part or otherwise dealt with;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Lien granted to, or in favor of, the Administrative Agent or any Lender or Lenders as security for any of the Obligations shall fail to attach or be perfected; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any of the Obligations shall be determined to be void or voidable (including, without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to the claims of any Person (including, without limitation, any creditor of any Guarantor).

With respect to its obligations hereunder, each Guarantor hereby expressly waives diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that the Administrative Agent or any Lender exhaust any right, power or remedy or proceed against any Person under any of the Credit Documents, any Secured Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, or any Secured

------

Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand, or any other agreement or instrument referred to in the Credit Documents, such Secured Swap Agreements or such Secured Treasury Management Agreements, or against any other Person under any other guarantee of, or security for, any of the Obligations.

Section 4.3 <u>Reinstatemen</u><u>t</u>. The obligations of the Guarantors under this <u>Article 4</u> shall be automatically reinstated if, and to the extent that, for any reason, any payment by, or on behalf of, any Person in respect of the Obligations is rescinded or must be otherwise restored by any holder of any of the Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and each Guarantor agrees that it will indemnify the Administrative Agent and each Lender on demand for all reasonable costs and expenses (including, without limitation, the fees, charges and disbursements of counsel) incurred by the Administrative Agent or such Lender in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.

Section 4.4 <u>Certain Additional Waiver</u><u>s</u>. Each Guarantor agrees that such Guarantor shall have no right of recourse to security for the Obligations, except through the exercise of rights of subrogation pursuant to <u>Section</u> <u>4.2</u> and through the exercise of rights of contribution pursuant to <u>Section</u> <u>4.6</u>.

Section 4.5 <u>Remedi</u><u>es</u>. The Guarantors agree that, to the fullest extent permitted by Applicable Law, as between the Guarantors, on the one hand, and the Administrative Agent and the Lenders, on the other hand, the Obligations may be declared to be forthwith due and payable as provided in <u>Section</u> <u>9.2</u> (and shall be deemed to have become automatically due and payable in the circumstances provided in said <u>Section</u> <u>9.2</u>) for purposes of <u>Section</u> <u>4.1</u> notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Obligations from becoming automatically due and payable) as against any other Person and that, in the event of such declaration (or the Obligations being deemed to have become automatically due and payable), the Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by the Guarantors for purposes of <u>Section</u> <u>4.1</u>. The Guarantors acknowledge and agree that their obligations hereunder are secured in accordance with the terms of the Collateral Documents and that the Lenders may exercise their remedies thereunder in accordance with the terms thereof.

Section 4.6 <u>Rights</u><u> </u><u>of</u><u> </u><u>Contributi</u><u>on</u>. The Guarantors agree among themselves that, in connection with payments made hereunder, each Guarantor shall have contribution rights against the other Guarantors as permitted under Applicable Laws. Such contribution rights shall be subordinate and subject in right of payment to the obligations of such Guarantors under the Credit Documents and no Guarantor shall exercise such rights of contribution until all Obligations have been Paid in Full.

Section 4.7 <u>Guarantee of Payment; Continuing Guarant</u><u>ee</u>. The guarantee in this <u>Article 4</u> is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to all Obligations whenever arising.

Section 4.8 <u>Keepwel</u><u>l</u>. Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Specified Credit Party to honor all of such Specified Credit Party's obligations under the Guaranty and the Collateral Documents in respect of Swap Obligations (<u>provided</u>, <u>that</u>, each Qualified ECP Guarantor shall only be liable under this <u>Section</u> <u>4.8</u> for the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor's obligations and undertakings under this <u>Article 4</u>, voidable under applicable Debtor Relief Laws, and not for any greater amount). The obligations and undertakings of each Qualified ECP Guarantor under this <u>Section</u> <u>4.8</u> shall remain in full force and effect until the Guaranteed Obligations have been indefeasibly paid and performed in full and the commitments relating thereto have expired or terminated, or, with respect to any Guarantor, if earlier, such Guarantor is released from its Guaranteed Obligations in accordance with <u>Section</u> <u>10.10(a</u>). Each Qualified ECP Guarantor intends that this <u>Section</u> <u>4.8</u> constitute, and this <u>Section</u> <u>4.8</u> shall be deemed to constitute, a "keepwell, support, or other agreement" for the benefit of each Specified Credit Party for all purposes of section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

------

**Article 5<u> </u>**

**<u>CONDITIONS</u><u> </u><u>PRECEDENT</u>** 

Section 5.1 <u>Conditions</u><u> </u><u>Precedent</u><u> </u><u>to</u><u> </u><u>Initial</u><u> </u><u>Credit</u> <u>Extension</u><u>s</u>. The obligation of each Lender to make a Credit Extension on the Closing Date is subject to the satisfaction of the following conditions on or before the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Executed Credit Documents</u>. Receipt by the Administrative Agent of executed counterparts of this Agreement and the other Credit Documents, in each case, in form and substance reasonably satisfactory to the Administrative Agent and the Lenders and duly executed by the appropriate parties thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organizational Documents</u>. Receipt by the Administrative Agent of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Charter Documents</u>. Copies of articles of incorporation, certificate of organization or formation, or other like document for each of the Credit Parties certified as of a recent date by the appropriate Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Organizational Documents Certificate</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Copies of bylaws, operating agreement, partnership agreement or like document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) copies of resolutions approving the transactions contemplated in connection with the financing and authorizing execution and delivery of the Credit Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) incumbency certificates, for each of the Credit Parties, in each case, certified by an Authorized Officer in form and substance reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Good Standing Certificate</u>. Copies of certificates of good standing, existence or the like of a recent date for each of the Credit Parties from the appropriate Governmental Authority of its jurisdiction of formation or organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Closing Certificate</u>. Receipt by the Administrative Agent of a certificate from an Authorized Officer of the Borrower, in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders, confirming, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all consents, approvals, authorizations, registrations, or filings required to be made or obtained by the Borrower and the other Credit Parties, if any, in connection with this Agreement and the other Credit Documents and the transactions contemplated herein and therein have been obtained and are in full force and effect, and all waiting periods with respect thereto shall have expired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no investigation or inquiry by any Governmental Authority regarding this Agreement and the other Credit Documents and the transactions contemplated herein and therein is ongoing;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) since the date of the most-recent annual audited financial statements for the Borrower, there has been no event or circumstance which could be reasonably expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the most-recent annual audited financial statements were prepared in accordance with GAAP or SAP (as applicable) consistently applied, except as noted therein, and fairly present, in all material respects, the financial condition and results from operations of the Credit Parties, Subsidiaries and Regulated Entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Borrower, individually, and the Credit Parties, Subsidiaries and other Regulated Entities, taken as a whole, are Solvent after giving effect to the transactions contemplated hereby and the incurrence of Indebtedness related thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the conditions set forth in <u>Section</u> <u>5.2(c</u>) and <u>Section</u> <u>5.2(d</u>) have been satisfied as of the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) immediately *after* giving effect to any Credit Extensions to occur on the Closing Date, the Consolidated Leverage Ratio, determined on a Pro Forma Basis (except measured for the most recent Trailing Period in respect of which financial statements of the Credit Parties, Subsidiaries and other Regulated Entities approved by the Administrative Agent are available), is *not greater than* 1.75 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Opinions of Counsel</u>. Receipt by the Administrative Agent of customary opinions of counsel for each of the Credit Parties, including, among other things, opinions regarding the due authorization, execution and delivery of the Credit Documents and the enforceability thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Personal Property Collateral</u>. Receipt by the Collateral Agent of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>UCC Financing Statements</u>. Such UCC financing statements necessary or appropriate to perfect the security interests in the personal property collateral, as determined by the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Intellectual Property Filings</u>. Such patent, trademark and copyright notices, filings and recordations necessary or appropriate to perfect the security interests in intellectual property and intellectual property rights, as determined by the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Pledged Equity Interests</u>. Original certificates evidencing any certificated Equity Interests pledged as collateral, together with undated stock transfer powers executed in blank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Evidence of Insurance</u>. Certificates of insurance for casualty, liability and any other insurance required by the Credit Documents, identifying the Collateral Agent as lender's loss payee with respect to the casualty insurance and additional insured with respect to the liability insurance, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Financial Statements</u>. Receipt and satisfactory review by the Administrative Agent of copies of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the internally-prepared quarterly unaudited consolidated and consolidating financial statements of the Credit Parties, Subsidiaries and other Regulated Entities for (A) the Fiscal Quarter ending June 30, 2024, and (B) to the extent available prior to the Closing Date, the Fiscal Quarter ending September 30, 2024;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the audited consolidated and unaudited consolidating financial statements for the Credit Parties, Subsidiaries and other Regulated Entities for the Fiscal Year ending December 31, 2023 (the "*<u>Annual Financial Statements</u>*"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such other financial information in respect of the financial condition, results of operations and cash flows of the Credit Parties, Subsidiaries and other Regulated Entities as the Administrative Agent shall have reasonably requested prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Funding Notice; Funds Disbursement Instructions</u>. The Administrative Agent shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a duly executed Funding Notice with respect to the Credit Extension to occur on the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) duly executed disbursement instructions (with wiring instructions and account information) for all disbursements to be made on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Florida Taxes</u>. The Administrative Agent shall have received either: (i) execution and delivery affidavits evidencing execution and delivery of this Agreement and the Notes outside of the State of Florida; or (ii) evidence that all applicable Florida stamp tax fees have been paid or will be paid contemporaneously with closing of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Refinancing of Existing Indebtedness</u>. Receipt by the Administrative Agent of evidence of the payment in full of existing Indebtedness (other than Indebtedness permitted to remain outstanding after the Closing Date pursuant to <u>Section</u> <u>8.1</u>), and any releases, terminations or other documents reasonably required by the Administrative Agent to evidence the payoff of such Indebtedness and release or termination of liens related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Fees and Expenses</u>. The Administrative Agent shall have confirmation that all reasonable out-of-pocket fees and expenses (and all filing and recording fees and taxes) required to be paid on or before the Closing Date have been paid, including the reasonable out-of-pocket fees and expenses of counsel for the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Patriot Act; Anti-Money Laundering Laws</u>. The provision by the Credit Parties of all documentation and other information that the Administrative Agent or any Lender requests in order to comply with its ongoing obligations under applicable "know your customer" and anti-money laundering rules and regulations, including the Patriot Act, including, without limitation, certification regarding beneficial ownership of legal entity customers (each, a "*<u>Beneficial Ownership Certification</u>*").

For purposes of determining compliance with the conditions specified in this <u>Section</u> <u>5.1</u>, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by, or acceptable or satisfactory to, a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

The funding of the initial Loans hereunder on the Closing Date shall evidence the satisfaction of the foregoing conditions.

Section 5.2 <u>Conditions</u><u> </u><u>to</u><u> </u><u>Each</u><u> </u><u>Credit</u><u> </u><u>Extensi</u><u>on</u>. The obligation of each Lender to fund its respective Commitment Percentage of any Credit Extension on any Credit Date, including, without limitation, the Closing Date, are subject to the satisfaction, or waiver in accordance with <u>Section</u> <u>11.4</u>, of the following conditions precedent:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Administrative Agent shall have received a fully executed and delivered Funding Notice, together with the documentation and certifications required therein with respect to each Credit Extension;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) immediately after making the Credit Extension requested on such Credit Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Aggregate Revolving Credit Exposure shall *not exceed* the Aggregate Revolving Commitment Amount; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the aggregate outstanding principal balance of any Class of Term Loans shall *not exceed* the aggregate amount of the Commitments of the Lenders of such Class that were in effect on the date(s) that such Commitments were established (as such Commitments were subsequently reduced pursuant to <u>Section</u> <u>2.11(b</u>), as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as of such Credit Date, the representations and warranties contained herein and in the other Credit Documents shall be true and correct in all material respects (except to the extent that any such representations and warranties are qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) on and as of that Credit Date, to the same extent as though made on and as of that date, except, to the extent such representations and warranties specifically relate to an earlier date, in which case, such representations and warranties shall have been true and correct in all material respects (except to the extent that any such representations and warranties are qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) on and as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) as of such Credit Date, no event shall have occurred and be continuing, or would result from the consummation of the applicable Credit Extension, that would constitute an Event of Default or a Default; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *solely* in the case of a Credit Extension consisting of an advance under the Delayed Draw Term Loan, receipt by the Administrative Agent of a certificate, duly executed by an Authorized Officer of the Borrower, certifying, on behalf of the Borrower and each of the other Credit Parties, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) both immediately *before* and immediately *after* giving effect to such Credit Extension, the Credit Parties shall be in compliance, on a Pro Forma Basis, with each of the Financial Covenants; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately *after* giving effect to such Credit Extension, the Consolidated Leverage Ratio, determined on a Pro Forma Basis, shall be *less than* 1.75 to 1.0;

in each case of the foregoing <u>clauses (e)(i</u>) and (<u>e)(ii</u>), as supported by reasonably detailed calculations attached to such certificate.

**Article 6<u> </u>**

**<u>REPRESENTATIONS</u><u> </u><u>AND</u><u> </u><u>WARRANTIES</u>** 

In order to induce the Agents and the Lenders to enter into this Agreement and to make each Credit Extension to be made thereby, the Borrower and each other Credit Party represents and warrants to the Administrative Agent and each Lender as follows:

Section 6.1 <u>Organization; Requisite Power and Authority; Qualificatio</u><u>n</u>. Each Credit Party, each Subsidiary and each other Regulated Entity:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation or formation (as the case may be) as identified in <u>Schedule 6.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has all requisite power and authority to own and operate its respective Properties, to carry on its business as now conducted and as proposed to be conducted, to enter into the Credit Documents to which it is a party and to carry out the transactions contemplated thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is qualified to do business and in good standing in every jurisdiction where necessary to carry out its business and operations, except in jurisdictions where the failure to be so qualified or in good standing has *not* had, and could *not* be reasonably expected to have, a Material Adverse Effect.

Section 6.2 <u>Equity</u><u> </u><u>Interests,</u><u> </u><u>Ownership</u><u> </u><u>and</u><u> </u><u>Contro</u><u>l</u>. <u>Schedule</u><u> </u><u>6.2</u> correctly sets forth the ownership interest(s) or attorney-in-fact relationship(s), as applicable, of each Credit Party in or with (as applicable) each other Credit Party, Subsidiary and other Regulated Entity, together with the ownership interest(s) of each direct holder of outstanding Equity Interests in the Borrower, in each case of the foregoing, as of the Closing Date. The Equity Interests in each Credit Party, each Subsidiary and each other Regulated Entity have been duly authorized and validly issued and are fully paid and non-assessable. Except as set forth on <u>Schedule 6.2</u>, as of the Closing Date, there is no existing option, warrant, call, right, commitment, buy-sell, voting trust or other shareholder agreement or other agreement to which any Subsidiary is a party requiring, and there is no membership interest or other Equity Interests of any Subsidiary outstanding that, upon conversion or exchange, would require, the issuance by any Subsidiary of any additional membership interests or other Equity Interests of any Subsidiary or other Securities convertible into, exchangeable for or evidencing the right to subscribe for or purchase, a membership interest or other Equity Interests of any Subsidiary.

Section 6.3 <u>Due Authorizati</u><u>on</u>. The execution, delivery and performance of the Credit Documents have been duly authorized by all necessary action on the part of each Credit Party, each Subsidiary and each other Regulated Entity that is a party thereto.

Section 6.4 <u>No</u><u> </u><u>Confli</u><u>ct</u>. The execution, delivery and performance by Credit Parties, the Subsidiaries and the other Regulated Entities of the Credit Documents to which they are parties, and the consummation of the transactions contemplated by the Credit Documents, do *not* and will *not*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) violate, in any material respect, any provision of any Applicable Laws relating to any Credit Party, any Subsidiary or any other Regulated Entity, any of the Organizational Documents of any such Person, or any order, judgment or decree of any court or other agency of government binding on any such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) except as could *not* reasonably be expected to have a Material Adverse Effect, conflict with, result in a breach of or constitute (with due notice or lapse of time or both), a default under any other Contractual Obligations of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) result in, or require the creation or imposition of, any Lien upon any of the Property of any Credit Party, any Subsidiary or any other Regulated Entity (other than any Liens created under any of the Credit Documents in favor of the Collateral Agent, for the benefit of the holders of the Obligations), whether now owned or hereafter acquired; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) require any approval of stockholders, members or partners or any approval or consent of any Person under any Contractual Obligation of any Credit Party, any Subsidiary or any other Regulated Entity.

Section 6.5 <u>Governmental</u><u> </u><u>Consent</u><u>s</u>. The execution, delivery and performance by the Credit Parties, the Subsidiaries and the other Regulated Entities of the Credit Documents to which they are a party, and the consummation of the transactions contemplated by the Credit Documents, do *not* and will *not* require, as a condition to the effectiveness thereof, any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority, except for filings and recordings with respect to the Collateral to be

------

made, or otherwise delivered to the Collateral Agent for filing and/or recordation, (a) as of the Closing Date, with respect to each Credit Document executed on the Closing Date, and (b) as of such later date of execution, with respect to each Credit Document executed after the Closing Date, and other filings, recordings or consents which have been obtained or made, as applicable.

Section 6.6 <u>Binding Obligati</u><u>on</u>. Each Credit Document has been duly executed and delivered by each Credit Party, each Subsidiary and each other Regulated Entity that is a party thereto, and is the legally valid and binding obligation of each such Person, enforceable against each such Person in accordance with its respective terms, except as may be limited by Debtor Relief Laws or by equitable principles relating to enforceability.

Section 6.7 <u>Financial</u><u> </u><u>Statement</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The audited consolidated balance sheet, and related consolidated statements of income or operations and cash flows, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (to the extent required to be delivered in accordance with such Section) the unaudited combined balance sheet, and related combined statements of income or operations and cash flows, of the applicable Qualifying Reciprocal Entities, in each case of the foregoing, for the most recent Fiscal Year ended with respect to which the Borrower has delivered financial statements in accordance with <u>Section</u> <u>7.1(b</u>), and the summaries/schedules prepared by management of the Borrower related thereto, including the notes thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) were prepared in accordance with GAAP or SAP (as applicable) consistently applied throughout the period covered thereby, except as otherwise expressly noted therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) fairly present, in all material respects, the financial condition of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) on a consolidated basis or of the applicable Qualifying Reciprocal Entities on a combined basis (as the case may be) as of the date thereof and their respective results of operations and cash flows for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) show all material indebtedness and other liabilities, direct or contingent, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) or of the applicable Qualifying Reciprocal Entities (as the case may be) as of the date of such financial statements, including liabilities for taxes, material commitments and Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The unaudited consolidated balance sheet, and related consolidated statements of income or operations and cash flows, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (to the extent required to be delivered in accordance with such Section) the unaudited combined balance sheet, and related combined statements of income or operations and cash flows, of the applicable Qualifying Reciprocal Entities, in each case of the foregoing, for the most recent Fiscal Quarter ended with respect to which the Borrower has delivered financial statements in accordance with <u>Section</u> <u>7.1(a</u>), and the summaries/schedules prepared by management of the Borrower related thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) were prepared in accordance with GAAP or SAP (as applicable) consistently applied throughout the period covered thereby, except as otherwise expressly noted therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) fairly present, in all material respects, the financial condition of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) on a consolidated basis or of the applicable Qualifying Reciprocal Entities on a combined basis (as the case may be) as of the date thereof and their respective results of operations and cash flows for the period covered thereby, subject, in the case of each of the foregoing <u>clauses (b)(i</u>) and (<u>b)(ii</u>), to the absence of footnotes and to normal year-end audit adjustments; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) show all material indebtedness and other liabilities, direct or contingent, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) or of the applicable Qualifying Reciprocal Entities (as the case may be) as of the date of such financial statements, including liabilities for taxes, material commitments and Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The forecasted consolidated balance sheet, and related forecasted consolidated statements of income or operations and cash flows, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (to the extent required to be delivered in accordance with such Section) the forecasted combined balance sheet, and related forecasted combined statements of income or operations and cash flows, of the applicable Qualifying Reciprocal Entities, in each case of the foregoing, most recently delivered by the Borrower in accordance with <u>Section</u> <u>7.1(d</u>) were prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair in light of the conditions existing at the time of delivery of such forecasted financial statements, and represented, at the time of delivery, the Borrower's good faith estimate of the future financial condition and performance of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) or of the applicable Qualifying Reciprocal Entities (as the case may be) based upon assumptions believed by the Borrower to be reasonable at the time.

Section 6.8 <u>No</u><u> </u><u>Material</u> <u>Adverse</u><u> </u><u>Effect;</u><u> </u><u>No</u><u> </u><u>Default</u><u> </u><u>or</u><u> </u><u>Event</u><u> </u><u>of</u><u> </u><u>Def</u><u>ault</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Material Adverse Effect</u>. Since December 31, 2023, no event, circumstance or change has occurred that has caused or evidences, either in any case or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Default or Event of Default</u>. No Default or Event of Default has occurred and is continuing.

Section 6.9 <u>Tax</u><u> </u><u>Matter</u><u>s</u>. Each Credit Party, each Subsidiary, and each other Regulated Entity has (a) filed all federal and state tax returns required to be filed, and has paid all federal and state taxes levied or imposed upon them or their respective Property, income, businesses and franchises that are due and payable, and (b) filed all other material tax returns and reports required to be filed, and have paid all other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their respective Property, income, businesses and franchises otherwise due and payable, except: (i) those being actively contested in good faith and by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP; or (ii) *solely* with respect to the foregoing <u>clause (b</u>), to the extent that the failure to do so could *not* reasonably be expected to result, in the aggregate when taken together, in a Material Adverse Effect.

Section 6.10 <u>Properti</u><u>es</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Title</u>. Each Credit Party, each Subsidiary and each other Regulated Entity has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) good, sufficient and legal title to (in the case of fee-owned Real Estate Assets),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) valid leasehold interests in (in the case of leasehold interests in real or personal Property), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) good title to (in the case of all other personal Property),

all of their respective Properties reflected in their financial statements and other information referred to in <u>Section</u> <u>6.7</u> and in the most recent financial statements delivered pursuant to <u>Section</u> <u>7.1</u>, in each case, except for assets disposed of since the date of such financial statements as permitted under <u>Section</u> <u>8.10</u>. All such Properties are free and clear of Liens other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Real Estate</u>. As of the Closing Date, <u>Schedule 6.10(b</u>) contains a true, accurate and complete list of all Real Estate Assets of the Credit Parties.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Intellectual Property</u>. Each Credit Party, each Subsidiary and each other Regulated Entity owns, or is validly licensed to use, all Intellectual Property that is necessary for the present conduct of its business, free and clear of Liens (other than Permitted Liens), without conflict with the rights of any other Person, unless the failure to own or benefit from such valid license could *not*, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. To the knowledge of any Authorized Officer of any Credit Party, no Credit Party, Subsidiary or other Regulated Entity is infringing, misappropriating, diluting, or otherwise violating the Intellectual Property rights of any other Person unless such infringement, misappropriation, dilution or violation could *not*, individually or in the aggregate when taken together, reasonably be expected to have a Material Adverse Effect.

Section 6.11 <u>Environmental</u><u> </u><u>Matter</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Credit Party, nor any of its Subsidiaries, any other Regulated Entity nor any of their respective current Facilities (*solely* during, and with respect to, such Person's ownership thereof) or operations, and to their knowledge, no former Facilities (*solely* during, and with respect to, any Credit Party's, its Subsidiary's or any other Regulated Entity's ownership thereof), are subject to any outstanding order, consent decree or settlement agreement with any Person relating to any Environmental Law, any Environmental Claim, or any Hazardous Materials Activity that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Credit Party, nor any of its Subsidiaries nor any other Regulated Entity, has received any letter or request for information under Section 104 of the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9604) or any comparable state law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there are and, to the knowledge of any Authorized Officer of any Credit Party, have been, no Hazardous Materials Activities that could reasonably be expected to form the basis of an Environmental Claim against any Credit Party, any Subsidiary or any other Regulated Entity that, individually or in the aggregate when taken together, could reasonably be expected to have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) no Credit Party, Subsidiary or other Regulated Entity has filed any notice under any Environmental Law indicating past or present treatment of Hazardous Materials at any Facility (*solely* during, and with respect to, such Credit Party's, Subsidiary's or other Regulated Entity's ownership thereof), and no Credit Party's, Subsidiary's or other Regulated Entity's respective operations involve the generation, transportation, treatment, storage or disposal of hazardous waste, as defined under 40 C.F.R. Parts 260–270 or any equivalent state rule defining hazardous waste, except in compliance with all applicable Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Compliance with all current requirements pursuant to or under Environmental Laws could *not* be reasonably expected to have, individually or in the aggregate when taken together, a Material Adverse Effect.

Section 6.12 <u>No Default</u><u>s</u>. No Credit Party, Subsidiary or other Regulated Entity is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any of its Contractual Obligations, except, in each case, where the consequences, direct or indirect, of such default or defaults, if any, could *not* reasonably be expected to have a Material Adverse Effect.

Section 6.13 <u>No Litigation or other Adverse Proceedi</u><u>ngs</u>. There are no Adverse Proceedings that: (a) purport to affect or pertain to this Agreement or any other Credit Document, or any of the transactions contemplated hereby; or (b) could reasonably be expected to have a Material Adverse Effect. No Credit Party, Subsidiary or other Regulated Entity is subject to, or is in default with respect to, any final judgments, writs, injunctions, decrees, rules or regulations of any Governmental Authority that, individually or in the aggregate when taken together, could reasonably be expected to have a Material Adverse Effect.

------

Section 6.14 <u>Information Regarding Credit Parties, Subsidiaries and Other Regulated Entitie</u><u>s</u>. Set forth on <u>Schedule 6.14</u> is the jurisdiction of incorporation or formation (as the case may be), the exact legal name (and for the prior five (5) years or since the date of its incorporation or formation (as the case may be) has been) and the true and correct U.S. taxpayer identification number (or foreign equivalent, if any) of each Credit Party, each Subsidiary and each other Regulated Entity as of the Closing Date, together with an indication of whether such Person is a Credit Party, a Qualifying Reciprocal Entity, a Regulated Subsidiary, or a Subsidiary (other than a Regulated Subsidiary or a Credit Party).

Section 6.15 <u>Governmental</u><u> </u><u>Regulati</u><u>on</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Credit Party, Subsidiary or other Regulated Entity is subject to regulation under the Investment Company Act of 1940. No Credit Party, Subsidiary or other Regulated Entity is an "investment company" or a company "controlled" by a "registered investment company" or a "principal underwriter" of a "registered investment company" as such terms are defined in the Investment Company Act of 1940.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Credit Party, Subsidiary or other Regulated Entity is an "enemy" or an "ally of the enemy" within the meaning of Section 2 of the Trading with the Enemy Act of the United States of America (50 U.S.C. App. §§ 1 *et seq*.), as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the knowledge of any Authorized Officer of any Credit Party, no Credit Party, Subsidiary or other Regulated Entity is in violation of: (A) the Trading with the Enemy Act, as amended; (B) any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto; or (C) the Patriot Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No Credit Party, Subsidiary or other Regulated Entity: (A) is a blocked person described in Section 1 of the Anti-Terrorism Order; or (B) to the knowledge of any Authorized Officer of any Credit Party, engages in any dealings or transactions, or is otherwise associated, with any such blocked person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Credit Party, each Subsidiary and each other Regulated Entity, and each of their respective directors and officers and, to the knowledge of any Authorized Officer of any Credit Party, each of their respective employees and agents, are in compliance with applicable Sanctions and are *not* engaged in any activity that would reasonably be expected to result in any Credit Party, any Subsidiary or any other Regulated Entity being designated as a Sanctioned Person. No Credit Party, Subsidiary or other Regulated Entity nor, to the knowledge of any Authorized Officer of any Credit Party, any of their respective Affiliates are in violation of any of the country or list based economic and trade sanctions administered and enforced by OFAC that are described or referenced at http://www.ustreas.gov/offices/enforcement/ofac/ or as otherwise published from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Credit Party, Subsidiary or other Regulated Entity, nor, to the knowledge of any Authorized Officer of any Credit Party, any of their respective directors, officers, employees or Affiliates: (A) is a Sanctioned Person; (B) has any of its Property located in a Sanctioned Country (unless approved by the Lenders); or (C) derives any of its operating income from investments in, or transactions with Sanctioned Persons (unless approved by the Lenders).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The proceeds of any Credit Extension or other transaction contemplated by this Agreement or any other Credit Document have *not* been used: (A) in violation of any Sanctions; (B) to fund any operations in, finance any investments or activities in or make any payments to, a Sanctioned Person or a Sanctioned Country; or (C) in any other manner that would result in a violation of Sanctions by any Person (including the Administrative Agent, the Collateral Agent, the Lenders or any other Person participating in the Credit Extensions, whether as an underwriter, advisor, investor or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Credit Party, each Subsidiary and each other Regulated Entity, and, to the knowledge of any Authorized Officer of any Credit Party, each of their respective directors, officers, employees and Affiliates, is in material compliance with Anti-Corruption Laws. No Credit Party, Subsidiary or other Regulated Entity has made a payment, offering, or promise to pay, or authorized the payment of, money or anything of value: (i) in order to assist in obtaining or retaining business for or with, or directing business to, any foreign official, foreign political party, party official or candidate for foreign political office; (ii) to a foreign official, foreign political party or party official or any candidate for foreign political office; and (iii) with the intent to induce the recipient to misuse his or her official position to direct business wrongfully to any such member or to any other Person, in violation of any Anti-Corruption Law*.* No part of the proceeds of any Credit Extension or other transaction contemplated by this Agreement or any other Credit Document will violate Anti-Corruption Laws*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent applicable, each Credit Party, each Subsidiary and each other Regulated Entity is in compliance with Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001) (as amended from time to time, the "*<u>Patriot Act</u>*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No Credit Party, Subsidiary or other Regulated Entity is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any Margin Stock. No part of the proceeds of any Credit Extension made to any Credit Party will be used:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to purchase or carry any such Margin Stock, or to extend credit to others for the purpose of purchasing or carrying any such Margin Stock or for any purpose that violates, or is inconsistent with, the provisions of Regulation T, Regulation U or Regulation X of the Federal Reserve Board, as in effect from time to time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to finance or refinance any: (A) commercial paper issued by any Credit Party, Subsidiary or other Regulated Entity; or (B) any other Indebtedness, except for Indebtedness that a Credit Party incurred for general corporate or working capital purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No Credit Party, Subsidiary or other Regulated Entity is an Affected Financial Institution.

Section 6.16 <u>Employee Matter</u><u>s</u>. No Credit Party, Subsidiary or other Regulated Entity is engaged in any unfair labor practice that could reasonably be expected to have a Material Adverse Effect. There is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no unfair labor practice complaint pending against any Credit Party, any Subsidiary or any other Regulated Entity, or to the knowledge of any Authorized Officer of any Credit Party, threatened in writing against any of them before the National Labor Relations Board, and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement that is so pending against any Credit Party, any Subsidiary or any other Regulated Entity or, to the knowledge of any Authorized Officer of any Credit Party, threatened in writing against any of them,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no strike or work stoppage in existence or, to the knowledge of any Authorized Officer of any Credit Party, threatened in writing that involves any Credit Party, any Subsidiary or any other Regulated Entity, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to the knowledge of any Authorized Officer of any Credit Party, no union representation question existing with respect to the employees of any Credit Party, any Subsidiary or any other Regulated Entity and, to the knowledge of any Authorized Officer of any Credit Party, no union organization activity that is taking place, except (with respect to any matter specified in <u>clause (a</u>) through (<u>c</u>) above, either individually or in the aggregate when taken together) such as could *not* reasonably be expected to have a Material Adverse Effect.

------

Section 6.17 <u>Pension</u><u> </u><u>Pl</u><u>ans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as could *not* reasonably be expected to have a Material Adverse Effect, each Credit Party, each Subsidiary and each other Regulated Entity is in compliance with all applicable provisions and requirements of ERISA and the Internal Revenue Code and the regulations and published interpretations thereunder with respect to its Pension Plan, and have performed all their obligations under each Pension Plan in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Pension Plan that is intended to qualify under Section 401(a) of the Internal Revenue Code has received a favorable determination letter or is the subject of a favorable opinion letter from the Internal Revenue Service indicating that such Pension Plan is so qualified and, to the knowledge of any Authorized Officer of any Credit Party, nothing has occurred subsequent to the issuance of such determination letter that would cause such Pension Plan to lose its qualified status, except where such event could *not* reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as could *not* reasonably be expected to have a Material Adverse Effect, no liability to the PBGC (other than required premium payments), the Internal Revenue Service, any Pension Plan (other than for routine claims and required funding obligations in the ordinary course) or any trust established under Title IV of ERISA has been incurred by any Credit Party, any Subsidiary, any other Regulated Entity, or any of the ERISA Affiliates of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as would *not* reasonably be expected to result in liability to the Credit Parties, Subsidiaries and other Regulated Entities in *excess* of the Threshold Amount, no ERISA Event has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except to the extent required under Section 4980B of the Internal Revenue Code and Section 601 *et seq*. of ERISA or similar state laws, and except as could *not* reasonably be expected to have a Material Adverse Effect, no Pension Plan provides health or welfare benefits (through the purchase of insurance or otherwise) for any retired or former employee of any Credit Party, any Subsidiary or any other Regulated Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) As of the Closing Date, no Credit Party, or any Subsidiary or any other Regulated Entity, is a Benefit Plan.

Section 6.18 <u>Solven</u><u>cy</u>. The Borrower individually is, and the Credit Parties, Subsidiaries and other Regulated Entities taken as a whole are, and, upon the incurrence of any Credit Extension on any date on which this representation and warranty is made (including, without limitation, the Closing Date), each will be, Solvent.

Section 6.19 <u>Compliance with Law</u><u>s</u>. Each Credit Party, each Subsidiary and each other Regulated Entity is in compliance with: (a) the Patriot Act and OFAC rules and regulations, as provided in <u>Section</u> <u>6.15</u>; and (b) except such non-compliance with such other Applicable Laws that, individually or in the aggregate when taken together, could *not* reasonably be expected to result in a Material Adverse Effect, all other Applicable Laws. Each Credit Party, each Subsidiary and each other Regulated Entity possesses all certificates, authorities or permits issued by appropriate Governmental Authorities necessary to conduct the business now operated by them and the failure of which to have could reasonably be expected to have a Material Adverse Effect, and have *not* received any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit the failure of which to have or retain could reasonably be expected to have a Material Adverse Effect.

------

Section 6.20 <u>Disclosur</u><u>e</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No representation or warranty of any Credit Party or any Subsidiary contained in any Credit Document to which it is a party, or in any other documents, certificates or written statements furnished to the Lenders by, or on behalf of, any Credit Party or any Subsidiary for use in connection with the transactions contemplated hereby (other than projections and pro forma financial information contained in such materials), contains any untrue statement of a material fact or omits to state a material fact (known to any Authorized Officer of a Credit Party or Subsidiary, in the case of any document *not* furnished by any of them) necessary in order to make the statements contained herein or therein *not* misleading in any material manner in light of the circumstances in which the same were made. Any projections and pro forma financial information contained in such materials are based upon good faith estimates and assumptions believed by the Credit Parties to be reasonable at the time made, it being recognized by the Administrative Agent and the Lenders that such projections as to future events are *not* to be viewed as facts and that actual results during the period or periods covered by any such projections may differ from the projected results and that such differences may be material. There are no facts known to any Credit Party (other than matters of a general economic nature) that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect and that have *not* been disclosed herein or in such other documents, certificates and statements furnished to the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the Closing Date or as of such later date on which any Beneficial Ownership Certification was delivered to the Administrative Agent or a Lender, the information included in each Beneficial Ownership Certification is true and correct in all respects.

Section 6.21 <u>Insuranc</u><u>e</u>. The properties of the Credit Parties and Subsidiaries are insured with financially sound and licensed insurance companies, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the applicable Credit Party or Subsidiary operates. The insurance coverage of the Credit Parties and Subsidiaries as in effect on the Closing Date is outlined as to carrier, policy number, expiration date, type, amount and deductibles on <u>Schedule 6.21</u>.

Section 6.22 <u>Security Agreemen</u><u>t</u>. The Security Agreement is effective to create in favor of the Collateral Agent, for the ratable benefit of the holders of the Obligations, a legal, valid and enforceable security interest in the Collateral identified therein, except to the extent the enforceability thereof may be limited by applicable Debtor Relief Laws affecting creditors' rights generally and by equitable principles of law (regardless of whether enforcement is sought in equity or at law), and the Security Agreement shall create a fully perfected Lien on, and security interest in, all right, title and interest of the obligors thereunder in such Collateral, in each case prior and superior in right to any other Lien (other than Permitted Liens):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to any such Collateral that is a "security" (as such term is defined in the UCC) and is evidenced by a certificate, when such Collateral is delivered to the Collateral Agent with duly executed stock powers with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any such Collateral that is a "security" (as such term is defined in the UCC) but is *not* evidenced by a certificate, when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the pledgor or when "control" (as such term is defined in the UCC) is established by the Collateral Agent over such interests in accordance with the provision of Section 8–106 of the UCC, or any successor provision; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to any such Collateral that is *not* a "security" (as such term is defined in the UCC), when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the pledgor (to the extent such security interest can be perfected by filing under the UCC).

Section 6.23 <u>Mortgag</u><u>es</u>. Each of the Mortgages is effective to create in favor of the Collateral Agent, for the ratable benefit of the holders of the Obligations, a legal, valid and enforceable security interest in the Real Estate Assets identified therein in conformity with Applicable Laws, except to the extent the enforceability thereof may be limited by applicable Debtor Relief Laws affecting creditors' rights generally and by equitable

------

principles of law (regardless of whether enforcement is sought in equity or at law), and, when the Mortgages and UCC financing statements in appropriate form are duly recorded at the locations identified in the Mortgages, and recording or similar taxes, if any, are paid, the Mortgages shall constitute a legal, valid and enforceable Lien on, and security interest in, all right, title and interest of the grantors thereunder in such Real Estate Assets, in each case prior and superior in right to any other Lien (other than Permitted Liens).

Section 6.24 <u>No Casualt</u><u>y</u>. Neither the businesses nor the Properties of any Credit Party, any Subsidiary, or any other Regulated Entity are affected by any fire, explosion, accident, drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty (whether or not covered by insurance) that, either individually or in the aggregate when taken together, could reasonably be expected to have a Material Adverse Effect.

**Article 7**<u> </u>

**<u>AFFIRMATIVE</u><u> </u><u>COVENANTS</u>**

Each Credit Party covenants and agrees that, until the Obligations shall have been Paid in Full, such Credit Party shall perform, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to perform, all of the covenants set forth in this <u>Article 7</u>.

Section 7.1 <u>Financial Statements and Other Report</u><u>s</u>. The Borrower will deliver, or will cause to be delivered, to the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Quarterly Financial Statements</u>. By *no later than* the date that is forty-five (45) consecutive calendar days after the end of each Fiscal Quarter (including, for purposes of clarity, the last Fiscal Quarter of each Fiscal Year), (i) the unaudited consolidated and consolidating balance sheet of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) as of the end of such Fiscal Quarter together with the related consolidated and consolidating statements of income or operations and cash flows of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) for such Fiscal Quarter, and for the period from the beginning of the then current Fiscal Year through the end of such Fiscal Quarter, and (ii) *solely* to the extent that the financial results and operations of any Qualifying Reciprocal Entities are *not* included or otherwise accounted for on a non-controlling interest basis in any such consolidated and/or consolidating financial statements, the unaudited combined and combining balance sheet of such Qualifying Reciprocal Entities as of the end of such Fiscal Quarter together with the related combined and combining statements of income or operations and cash flows of such Qualifying Reciprocal Entities for such Fiscal Quarter, and for the period from the beginning of the then current Fiscal Year through the end of such Fiscal Quarter, in each case of the foregoing <u>clauses (a)(i</u>) and (<u>a)(ii</u>), setting forth, in each case in comparative form, the corresponding figures for the corresponding periods of the previous Fiscal Year, all in reasonable detail and consistent, in all material respects, with the manner of presentation as of the Closing Date, together with a Financial Officer Certification with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Financial Statements</u>. By *no later than* the date that is one hundred twenty (120) consecutive calendar days after the end of each Fiscal Year:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) the audited consolidated and consolidating balance sheet of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) as of the end of such Fiscal Year together with the related audited consolidated and consolidating statements of income or operations and cash flows of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) for such Fiscal Year, and (B) *solely* to the extent that the financial results and operations of any Qualifying Reciprocal Entities are *not* included or otherwise accounted for on a non-controlling interest basis in any such consolidated and/or consolidating financial statements, the unaudited combined and combining balance sheet of such Qualifying Reciprocal Entities as of the end of such Fiscal Year together with the related unaudited

------

combined and combining statements of income or operations and cash flows of such Qualifying Reciprocal Entities for such Fiscal Year, in each case of the foregoing <u>clauses (b)(i)(A</u>) and (<u>b)(i)(B</u>), setting forth, in each case in comparative form, the corresponding figures for the previous Fiscal Year, all in reasonable detail and consistent, in all material respects, with the manner of presentation as of the Closing Date, together with a Financial Officer Certification with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to such audited consolidated financial statements of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), a report thereon of PricewaterhouseCoopers LLP or other independent certified public accountants selected by the Borrower and reasonably acceptable to the Administrative Agent (it being understood and agreed that any of the other "Big Four" accounting firms, Grant Thornton, Alvarez & Marsal, RSM US LLP and BDO USA LLP are each acceptable to the Administrative Agent), which report shall be unqualified as to going concern and scope of audit (except to the extent any qualification results *solely* from a current maturity of any Indebtedness under this Agreement) and shall state that such consolidated financial statements fairly present, in all material respects, the consolidated financial position of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) as of the dates indicated, and the results of their operations and cash flows for the periods indicated, all in conformity with GAAP applied on a basis consistent with prior years (except as otherwise disclosed in such financial statements), and <u>further</u>, that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Compliance Certificate; Summaries / Schedules</u>. Together with each delivery of the financial statements pursuant to <u>clauses (a</u>) or (<u>b</u>) above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a duly completed Compliance Certificate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) summaries/schedules prepared by management of the Borrower, accompanied by a Financial Officer Certification with respect thereto, setting forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) consolidating and (if applicable) combining detail in respect of such financial statements in form and scope acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) principal and interest payments made by the Credit Parties and Subsidiaries (other than any Regulated Entities) with respect to intercompany Indebtedness owing by any Credit Party or Subsidiary (other than any Regulated Entity) to any Regulated Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) intercompany Indebtedness owing by any Credit Party or Subsidiary (other than any Regulated Entity) to any Regulated Entity that is eliminated upon consolidation in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Annual Budget</u>. Within sixty (60) consecutive calendar days following the end of each Fiscal Year, forecasts prepared by management of the Borrower, in form reasonably satisfactory to the Administrative Agent and the Required Lenders, of (i) the consolidated and consolidating balance sheet of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) together with the related consolidated and consolidating statements of income or operations and cash flows of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (ii) *solely* to the extent that the forecasted financial results and operations of any Qualifying Reciprocal Entities are *not* included or otherwise accounted for on a non-controlling interest basis in any such forecasted consolidated and/or consolidating financial statements, the combined and combining balance sheet of such Qualifying Reciprocal Entities together with the related combined and combining statements of income or operations and cash flows for such Qualifying Reciprocal Entities, in each case of the foregoing <u>clauses (d)(i</u>) and (<u>d)(ii</u>), prepared on a quarterly basis for the immediately following Fiscal Year (including, for purposes of clarity, any such Fiscal Year during which any of the Revolving Commitment Termination Date, the DDTL Commitment Termination Date or any applicable Maturity Date occurs);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Statutory Accounting Principles Statement</u>. Within forty-five (45) consecutive calendar days following the end of each of the first (1<sup>st</sup>) three (3) Fiscal Quarters of each Fiscal Year, and within ninety (90) consecutive calendar days following the end of each Fiscal Year, SAP statements for each Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Information Regarding Credit Parties</u>. Each Credit Party will furnish to the Collateral Agent prior written notice of any change in such Credit Party's: (i) legal name; (ii) corporate structure; (iii) Federal Taxpayer Identification Number; or (iv) jurisdiction of incorporation, formation or organization, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Securities and Exchange Commission Filings</u>. Promptly after the same are filed, copies of all annual, regular, periodic and special reports and registration statements that the Borrower may file, or be required to file, with the SEC under Section 13 or 15(d) of the Exchange Act, <u>provided</u>, <u>that</u>, any documents required to be delivered pursuant to this <u>clause (g</u>) shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower's website, or (ii) on which such documents are posted on the Borrower's behalf on SyndTrak or other relevant website, if any to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent). Notwithstanding anything to the contrary, as to any information contained in materials furnished pursuant to this <u>clause (g</u>), the Borrower shall not be separately required to furnish such information under <u>clauses (a</u>) or (<u>b</u>) above, or pursuant to any other requirement of this Agreement or any other Credit Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Notice of Default and Material Adverse Effect</u>. Promptly (and, in any event, within two (2) Business Days) upon any Authorized Officer of any Credit Party obtaining knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) of any condition or event that constitutes a Default or an Event of Default, or that notice has been given to any Credit Party, any Subsidiary, or any other Regulated Entity with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that any Person has given any notice to any Credit Party, any Subsidiary or any other Regulated Entity, or taken any other action with respect to any event or condition set forth in <u>Section</u> <u>9.1(b</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) of the occurrence of any Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) of the institution, or any Credit Party's, any Subsidiary's or any other Regulated Entity's receipt of any threat in writing of the institution, of any action, suit, investigation or proceeding against or affecting any Credit Party, any Subsidiary or any other Regulated Entity, including any such investigation or proceeding by any Insurance Regulatory Authority or other Governmental Authority (other than routine periodic inquiries, investigations or reviews), that could reasonably be expected, individually or in the aggregate when taken together, to have a Material Adverse Effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) of the receipt by any Credit Party, any Subsidiary, or any other Regulated Entity from any Insurance Regulatory Authority or other Governmental Authority of any notice of any actual or threatened suspension, limitation or revocation of, failure to renew, imposition of any restraining order, escrow or impoundment of funds in connection with, or the taking of any other materially adverse action in respect of, any license, permit, accreditation or authorization of any Credit Party, any Subsidiary or any other Regulated Entity, where such action could reasonably be expected to have a Materially Adverse Effect;

deliver to the Administrative Agent a certificate of its Authorized Officers specifying the nature and period of existence of such condition, event or change, or specifying the notice given and action taken by any such Person and the nature of such claimed Event of Default, Default, event or condition or change, and what action the Credit Parties, Subsidiaries and other Regulated Entities have taken, are and/or and propose to take with respect thereto;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>ERISA</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Promptly upon becoming aware of the occurrence of, or forthcoming occurrence of, any ERISA Event, a written notice specifying the nature thereof, what action(s) any Credit Party, any Subsidiary, any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, has taken, is taking and/or proposes to take with respect thereto and, when known, any action taken or threatened by the Internal Revenue Service, the Department of Labor or the PBGC with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) promptly upon reasonable request of the Administrative Agent, copies of each Schedule B (*Actuarial Information*) to the annual report (Form 5500 Series) filed by any Credit Party, any Subsidiary or any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, with respect to each Pension Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) promptly after their receipt, copies of all notices received by any Credit Party, any Subsidiary or any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, from a Multiemployer Plan sponsor concerning an ERISA Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Securities and Exchange Commission Investigations</u>. Promptly and, in any event, within five (5) Business Days after receipt thereof by any Credit Party, any Subsidiary or any other Regulated Entity thereof, copies of each notice or other correspondence received from the Securities and Exchange Commission (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or other inquiry by such agency regarding financial or other operational results of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Asset Sales, Involuntary Dispositions and Debt Transactions</u>. Concurrently with delivery of each Compliance Certificate, notice of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the occurrence and amount of Net Cash Proceeds of any Asset Sale or Involuntary Disposition (in each case, regardless of whether the Net Cash Proceeds therefrom fall below the threshold amounts set forth in <u>Section</u> <u>2.11(c)(ii</u>) and/or have already been, or are anticipated to be, re-invested pursuant to the reinvestment provisions thereof) in *excess* of the *product of* (A) fifty percent (50.0%), *multiplied by* (B) the Threshold Amount; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the occurrence of any Debt Transactions and the amount of Net Cash Proceeds therefrom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Changes in Accounting or Financial Reporting Practices</u>. Promptly and, in any event, within ten (10) Business Days after implementation thereof, notice of any material change in accounting policies or financial reporting practices of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Insurance Filings</u>. Within fifteen (15) Business Days after the required filing date, copies of any annual statement or quarterly statement required to be filed with any Insurance Regulatory Authority by any Credit Party, any Subsidiary or any other Regulated Entity, in each case, in the form filed with such Insurance Regulatory Authority in conformity with the requirements thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Other Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Promptly upon their becoming available, copies of all financial statements, reports, notices and proxy statements (other than minutes of the board of directors or managers (or equivalent governing body) thereof) sent or made available generally by the Borrower to its respective security holders acting in such capacity, or by any Subsidiary or any other Regulated Entity to its respective security holders, if any, other than the Borrower, another Credit Party, another Subsidiary or another Regulated Entity;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such other information and data with respect to the Credit Parties, Subsidiaries and other Regulated Entities as from time to time may be reasonably requested by the Administrative Agent (or by any Lender through the Administrative Agent); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) prompt written notice of any change to the information set forth in any Beneficial Ownership Certification that would result in a change to the list of beneficial owners set forth therein.

Each notice pursuant to <u>clauses (i</u>) and (j) above shall be accompanied by a statement of an Authorized Officer of the Borrower: (x) setting forth details of the occurrence referred to therein; and (y) stating what action(s) the Credit Parties, Subsidiaries and other Regulated Entities have taken and/or propose to take with respect thereto. Each notice pursuant to <u>clause (h</u>) above shall describe with particularity any and all provisions of this Agreement and any other Credit Document that have been breached.

Section 7.2 <u>Existenc</u><u>e</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, at all times preserve and keep in full force and effect (a) its existence, and (b) except to the extent that failure to do so would *not* reasonably be expected to result in a Material Adverse Effect, all rights and franchises, licenses and permits material to its business, except to the extent permitted by <u>Section</u> <u>8.10</u> or not constituting an Asset Sale hereunder.

Section 7.3 <u>Payment of Taxes and Claim</u><u>s</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, pay (a) all federal, state and other material taxes imposed upon it or any of its respective Properties or in respect of any of its income, businesses or franchises, before any penalty or fine accrues thereon, and (b) all claims (including claims for labor, services, materials and supplies) for sums that have become due and payable and that by law have or may become a Lien upon any of its Properties, prior to the time when any penalty or fine shall be incurred with respect thereto; <u>provided</u>, <u>that</u>, no such tax or claim need be paid if it is being contested in good faith by appropriate proceedings promptly instituted and diligently conducted, so long as (i) adequate reserve or other appropriate provision, as shall be required in conformity with GAAP shall have been made therefor, (ii) in the case of a tax or claim which has or may become a Lien against any of the Collateral, such contest proceedings conclusively operate to stay the sale of any portion of the Collateral to satisfy such tax or claim, and (iii) the failure to make payment pending such contest could *not* reasonably be expected to result in a Material Adverse Effect. No Credit Party will, nor will it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, file, or consent to the filing of, any consolidated or combined income tax return with any Person other than the Credit Parties, Subsidiaries and other Regulated Entities.

Section 7.4 <u>Maintenance</u><u> </u><u>of</u><u> </u><u>Propertie</u><u>s</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, maintain, or cause to be maintained, in good repair, working order and condition, ordinary wear and tear excepted, all material properties used or useful in the businesses of the Credit Parties, Subsidiaries and other Regulated Entities, and from time to time will make, or cause to be made, all appropriate repairs, renewals and replacements thereof, except where failure to do so would *not* materially adversely affect the operations of the businesses of the Credit Parties, Subsidiaries and other Regulated Entities, taken as a whole.

------

Section 7.5 <u>Insuranc</u><u>e</u>. The Credit Parties will maintain, or cause to be maintained, with financially sound and licensed insurers, property insurance, such public liability insurance, third party property damage insurance with respect to liabilities, losses or damage in respect of the Properties and businesses of the Credit Parties as may customarily be carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses, in each case in such amounts, with such deductibles, covering such risks and otherwise on such terms and conditions as shall be customary for such Persons. Without limiting the generality of the foregoing, each Credit Party will maintain, or cause to be maintained: (a) flood insurance with respect to each Flood Hazard Property, if any, that is located in a community that participates in the National Flood Insurance Program, in each case, in compliance with any applicable regulations of the Federal Reserve Board; and (b) replacement value casualty insurance on the Collateral under such policies of insurance, with such insurance companies, in such amounts, with such deductibles, and covering such risks as are at all times carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses. Each such policy of insurance shall: (i) name the Collateral Agent, on behalf of the holders of the Obligations, as an additional insured thereunder as its interests may appear; and (ii) in the case of each property insurance policy, contain a loss payable clause or endorsement, reasonably satisfactory in form and substance to the Collateral Agent, that names the Collateral Agent, on behalf of the holders of the Obligations, as the loss payee thereunder and provides for *at least* thirty (30) days' prior written notice (or such shorter prior written notice as may be agreed by the Collateral Agent in its reasonable discretion) to the Collateral Agent of any modification or cancellation of such policy.

Section 7.6 <u>Inspecti</u><u>ons</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, permit representatives and independent contractors of the Administrative Agent (which may include representatives of Lenders) to visit and inspect any of its properties, to conduct field audits, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; <u>provided</u>, <u>that</u>, (i) when an Event of Default exists the Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and without advance notice, and (ii) unless an Event of Default has occurred and is continuing, the Borrower shall *not* be responsible for the expense of any such inspections other than one (1) inspection per Fiscal Year by the Administrative Agent. Notwithstanding anything to the contrary in this <u>Section</u> <u>7.6</u>, neither any Credit Party nor any Subsidiary (including any Regulated Subsidiary) or any other Regulated Entity will be required to disclose, or to permit the inspection or discussion of, any document, information or other matter (x) in respect of which disclosure to the Administrative Agent or any Lender (or their representatives) is prohibited by Applicable Law, fiduciary duty or any binding agreement, or (y) that is subject to attorney client or similar privilege or constitutes attorney work product.

Section 7.7 <u>Lenders Meeting</u><u>s</u>. The Borrower will, upon the request of the Administrative Agent or the Required Lenders, participate in a meeting of the Administrative Agent and the Lenders once during each Fiscal Year to be held at the Borrower's corporate offices (or at such other physical location, or in lieu thereof being held "virtually" by telephone or video conference, in each case, as may be agreed to by the Borrower and the Administrative Agent) at such time as may be agreed to by the Borrower and the Administrative Agent.

Section 7.8 <u>Compliance</u><u> </u><u>with</u><u> </u><u>Laws</u><u> </u><u>and</u><u> </u><u>Material</u> <u>Contract</u><u>s</u>. Each Credit Party will comply, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and all other Persons (including any other Regulated Entities), if any, on or occupying any Facilities to comply, with (a) the Patriot Act and OFAC rules and regulations, and, (b) except where the failure to do so would *not* reasonably be expected to have a Material Adverse Effect, (i) all other Applicable Laws, and (ii) all Material Contracts entered into by any Credit Party, any Subsidiary (including any Regulated Subsidiary) or any other Regulated Entity.

------

Section 7.9 <u>Use</u><u> </u><u>of</u><u> </u><u>Procee</u><u>ds</u>. The Credit Parties shall use the proceeds of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans; Delayed Draw Term Loan</u>. All Revolving Loans and the Delayed Draw Term Loan *solely* (i) to finance permitted Investments in Regulated Entities, (ii) to finance Capital Expenditures, and (iii) for working capital and other general corporate purposes (and, in each case of the foregoing, to pay transaction fees, costs and expenses in connection therewith);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term Loan A</u>. The Term Loan A *solely* (i) to finance the payment on the Closing Date of the Closing Date Distribution, (ii) to refinance, in full, all existing Indebtedness of the Credit Parties, Subsidiaries and other Regulated Entities that is *not* permitted to remain outstanding after the Closing Date pursuant to this Agreement, and (iii) to pay transaction fees, costs and expenses in connection with the closing of this Agreement and the other Credit Documents on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Incremental Term Loans</u>. Each Incremental Term Loan *solely* for the purpose(s) set forth in the applicable Incremental Facility Agreement establishing such Incremental Term Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Letters of Credit</u>. All Letters of Credit *solely* for general corporate purposes;

in each case of the foregoing <u>clauses (a</u>) through (<u>d</u>), to the extent *not* in violation of any Applicable Laws or the terms of the Credit Documents.

Section 7.10 <u>Environmental</u> <u>Matter</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Environmental Disclosure</u>. Each Credit Party will deliver to the Administrative Agent and the Lenders, with reasonable promptness, such documents and/or information as from time to time may be reasonably requested by the Administrative Agent or any Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Hazardous Materials Activities, Etc</u>. Each Credit Party shall promptly take, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to promptly take, any and all actions necessary to (i) cure any violation of applicable Environmental Laws by such Credit Party, Subsidiary or other Regulated Entity that would reasonably be expected to have, individually or in the aggregate when taken together, a Material Adverse Effect, and (ii) respond to any Environmental Claim against any such Credit Party, Subsidiary or other Regulated Entity and discharge any obligations it may have to any Person thereunder where failure to do so would reasonably be expected to result, individually or in the aggregate when taken together, in a Material Adverse Effect.

Section 7.11 <u>Additional</u> <u>Real</u><u> </u><u>Estate</u><u> </u><u>Asset</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that any Credit Party owns or acquires a Real Estate Asset, then such Credit Party, by *no later than* ninety (90) consecutive calendar days (or by such later date as may be agreed in writing by the Collateral Agent in its sole discretion) after acquiring such Real Estate Asset, shall take all such actions and execute and deliver, or cause to be executed and delivered, all such Mortgages, documents, instruments, agreements, opinions and certificates similar to those described in <u>clause (b</u>) immediately below that the Collateral Agent shall reasonably request to create in favor of the Collateral Agent, for the benefit of the holders of the Obligations, a valid and, subject to any filing and/or recording referred to herein, enforceable Lien on, and security interest in such Real Estate Asset. The Administrative Agent may, in its reasonable judgment, grant extensions of time for compliance or exceptions with respect to the provisions of this <u>Section</u> <u>7.11</u> by any Credit Party. In addition to the foregoing, the applicable Credit Party shall, at the request of the Required Lenders, deliver, from time to time, to the Administrative Agent such appraisals as are required by Applicable Law of Real Estate Assets with respect to which the Collateral Agent has been granted a Lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In order to create in favor of the Collateral Agent, for the benefit of the holders of the Obligations, a valid and, subject to any filing and/or recording referred to herein, enforceable Lien on, and security interest in, any Real Estate Asset that is prior and superior in right to any other Lien (other than Permitted Liens), the Administrative Agent and the Collateral Agent (with copies sufficient for each Lender) shall have received from the applicable Credit Party with respect to such Real Estate Asset:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fully executed and notarized Mortgages, in proper form for recording in all appropriate places in all applicable jurisdictions, encumbering such Real Estate Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an opinion of counsel (which counsel shall be reasonably satisfactory to the Collateral Agent) in each state in which such Real Estate Asset is located with respect to the enforceability of the form(s) of Mortgages to be recorded in such state and such other matters as the Collateral Agent may reasonably request, in each case in form and substance reasonably satisfactory to the Collateral Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) ALTA mortgagee title insurance policies or unconditional commitments therefor issued by one or more title companies reasonably satisfactory to the Collateral Agent (each, a "*<u>Title Policy</u>*") with respect to such Real Estate Asset, in amounts *not less than* the fair market value of such Real Estate Asset, together with a title report issued by a title company with respect thereto and copies of all recorded documents listed as exceptions to title or otherwise referred to therein, each in form and substance reasonably satisfactory to the Collateral Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) evidence reasonably satisfactory to the Collateral Agent that the applicable Credit Party has paid to the title company or to the appropriate Governmental Authorities all expenses and premiums of the title company and all other sums required in connection with the issuance of each Title Policy and all recording and stamp taxes (including mortgage recording and intangible taxes) payable in connection with recording the Mortgage for such Real Estate Asset in the appropriate real estate records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a recently issued flood zone determination certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) evidence of flood insurance with respect to each Flood Hazard Property that is located in a community that participates in the National Flood Insurance Program, in each case in compliance with any applicable regulations of the Federal Reserve Board, in form and substance reasonably satisfactory to the Collateral Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if an exception to the Title Policy with respect to any Real Estate Asset subject to a Mortgage would arise without such ALTA surveys, ALTA surveys of such Real Estate Asset; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) reports and other reasonable information, in form, scope and substance reasonably satisfactory to the Administrative Agent, regarding environmental matters relating to such Real Estate Asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in the foregoing of this <u>Section</u> <u>7.11</u>, no Mortgage shall be granted with respect to any Real Estate Asset until the Administrative Agent shall have received written confirmation from each Lender of the satisfactory completion by such Lender of flood diligence with respect to such Real Estate Asset.

Section 7.12 <u>Pledge</u><u> </u><u>of</u><u> </u><u>Personal</u><u> </u><u>Property</u><u> </u><u>Asset</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Equity Interests</u>. The Borrower and each other Credit Party shall cause:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) one hundred percent (100.0%) of the issued and outstanding Equity Interests of each Domestic Subsidiary (including, without limitation, each Domestic Subsidiary resulting from the division or allocation of any limited liability company that is *not* a Regulated Subsidiary); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) sixty-five percent (65.0%) of the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956–2(c)(2)), and one hundred percent (100.0%) of the issued and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956–2(c)(2)), of each Foreign Subsidiary that is directly owned by any Credit Party or any Domestic Subsidiary;

------

to be subject, at all times, to a first priority lien (subject to any Permitted Lien) in favor of the Collateral Agent, for the benefit of the Lenders, pursuant to the terms and conditions of the Collateral Documents, together with opinions of counsel and any filings and deliveries or other items reasonably requested by the Collateral Agent necessary in connection therewith to perfect the security interests therein, all in form and substance reasonably satisfactory to the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Personal Property</u>. The Borrower and each other Credit Party shall (i) cause all of its owned and leased personal property (other than Excluded Property) to be subject, at all times, to first priority (subject to any Permitted Lien), perfected Liens in favor of the Collateral Agent, for the benefit of the holders of the Obligations, to secure the Obligations pursuant to the terms and conditions of the Collateral Documents or, with respect to any such property acquired subsequent to the Closing Date, such other additional security documents as the Collateral Agent shall reasonably request, subject in any case to Permitted Liens, and (ii) deliver such other documentation as the Collateral Agent may reasonably request in connection with the foregoing, including, without limitation, appropriate UCC–1 financing statements, certified resolutions and other organizational and authorizing documents of such Person, opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to above and the perfection of the Collateral Agent's Liens thereunder) and other items reasonably requested by the Collateral Agent necessary in connection therewith to perfect the security interests therein, all in form, content and scope reasonably satisfactory to the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Landlord Consents</u>. Upon the reasonable request of the Collateral Agent, the Credit Parties shall use commercially reasonable efforts to obtain landlord consents with respect to leased locations where corporate records or material amounts of personal property of any of the Credit Parties are maintained, which landlord consents shall be in form and substance reasonably acceptable to the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Controlled Account Agreements</u>. The Borrower and each other Credit Party shall, unless otherwise consented to by the Collateral Agent in writing, cause (in each case, as promptly as practicable and, in any event, by *no later than* (A) the date that is ninety (90) consecutive calendar days after the Closing Date (or by such later date as the Collateral Agent may agree in its sole discretion), in the case of any such accounts in existence on the Closing Date, and (B) the date that is ninety (90) consecutive calendar days after the date of establishment or acquisition of such account (or by such later date as the Collateral Agent may agree in its sole discretion), in the case of any such account(s) established or acquired after the Closing Date) each deposit, disbursement, lockbox, securities and/or commodities account of any Credit Party (including, without limitation, any such account(s) that are or will be held at Regions Bank), other than any Excluded Accounts, to be subject to a Controlled Account Agreement; <u>provided</u>, <u>that</u>, no Controlled Account Agreement shall be required, in any event, with respect to any such account that has a balance (or which holds Property with a fair market value) of *less than* Fifty Thousand Dollars ($50,000), in any individual instance, or One-Hundred Fifty Thousand Dollars ($150,000), when taken together with the account balances (or aggregate amount of the fair market value of Property) of all other deposit, disbursement, lockbox, securities and/or commodities accounts of any Credit Party (other than any Excluded Accounts) that are *not* subject to a Controlled Account Agreement.

Section 7.13 <u>Books and Record</u><u>s</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, keep proper books of record and account in which full, true and correct, in all material respects, entries shall be made of all dealings and transactions in relation to their respective businesses and activities to the extent necessary to prepare the consolidated financial statements of the Credit Parties and Subsidiaries both *inclusive* and *exclusive* of all Regulated Entities, in each case otherwise in conformity with GAAP.

------

Section 7.14 <u>Additional</u><u> </u><u>Subsidiarie</u><u>s</u>. Within forty-five (45) calendar days after the date of acquisition or formation of any Subsidiary (including, without limitation, upon the inception of any Subsidiary resulting from the division or allocation of a limited liability company or upon the reinstatement or reincorporation of a formerly dissolved Subsidiary) or of re-designation of any Immaterial Subsidiary as a Material Subsidiary in accordance with the definition of "*Immaterial Subsidiary*" in <u>Section</u> <u>1.1</u> (or, in any such case, by such later date as the Administrative Agent may agree in its sole discretion), the Credit Parties shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) notify the Administrative Agent thereof in writing, together with the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) jurisdiction of incorporation or formation (as the case may be);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) number of shares of each class of its Equity Interests outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) number and percentage of outstanding shares of each class owned (directly or indirectly) by any Credit Party, any Subsidiary or any other Regulated Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) number and effect, if exercised, of all outstanding options, warrants, rights of conversion or purchase and all other similar rights with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if such Subsidiary is *not* an Excluded Subsidiary, cause such Person to (i) become a Guarantor by executing and delivering to the Administrative Agent a Guarantor Joinder Agreement or such other documents as the Administrative Agent shall deem appropriate for such purpose, and (ii) deliver to the Administrative Agent documents of the types referred to in <u>Section</u> <u>5.1(b</u>) and <u>Section</u> <u>5.1(e</u>) and favorable opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to in the immediately foregoing <u>clause (b)(i</u>)), all in form, content and scope satisfactory to the Administrative Agent.

Section 7.15 <u>Maintenance of Reinsuran</u><u>ce</u>. The Credit Parties, Subsidiaries and other Regulated Entities shall maintain a program of reinsurance *at least* equal to that: (a) required by the applicable Insurance Regulatory Authority of the applicable state of domicile for each such Person; and (b) determined by Demotech, Inc. to be necessary for a company to obtain an "A" rating.

**Article 8**

<u>**NEGATIVE COVENANTS**</u>

Each Credit Party covenants and agrees that, until the Obligations shall have been Paid in Full, such Credit Party shall perform, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to perform, each of the covenants set forth in this <u>Article 8</u>.

Section 8.1 <u>Indebtednes</u><u>s</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries nor any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, create, incur, assume or guaranty, or otherwise become or remain directly or indirectly liable with respect to any Indebtedness, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Indebtedness of any Credit Party owing to any other Credit Party; (ii) Indebtedness of any Subsidiary or other Regulated Entity that (in any such case) is *not* a Credit Party owing to any other Subsidiary or other Regulated Entity that (in any such case) is *not* a Credit Party; and (iii) Indebtedness of any Credit Party owing to any Subsidiary or other Regulated Entity that (in any such case) is *not* a Credit Party, <u>provided</u>, <u>that</u>, the aggregate outstanding amount of Indebtedness incurred in reliance on this <u>clause (b)(iii</u>) shall *not exceed* Five-Hundred Thousand Dollars ($500,000) at any time;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Guarantees with respect to Indebtedness permitted under this <u>Section</u> <u>8.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Indebtedness existing on the Closing Date and described in <u>Schedule 8.1</u>, together with any Permitted Refinancing thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Indebtedness with respect to (i) Capital Leases (<u>provided</u>, <u>that</u>, any such Indebtedness shall be secured only by the asset subject to such Capital Lease), and (ii) purchase money Indebtedness (<u>provided</u>, <u>that</u>, any such Indebtedness shall be secured only by the asset acquired in connection with the incurrence of such Indebtedness); <u>provided</u>, <u>that</u>, the *sum of* the aggregate principal amount of any Indebtedness under this <u>clause (e</u>) at any time outstanding shall *not exceed* Five-Hundred Thousand Dollars ($500,000);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Indebtedness in respect of any Swap Agreement that is entered into in the ordinary course of business to hedge, limit or mitigate risks to which any Credit Party, any Subsidiary or any other Regulated Entity is exposed in the conduct of its business or the management of its liabilities (it being acknowledged by each Credit Party that a Swap Agreement entered into for speculative purposes, or otherwise of a speculative nature, is *not* a Swap Agreement entered into in the ordinary course of business to hedge, limit or mitigate risks);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to the extent constituting Indebtedness, all obligations in connection with each Permitted Acquisition (including, without limitation, Earn Out Obligations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Indebtedness representing deferred compensation to officers, directors, employees of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Guarantees by any Credit Party of Indebtedness of any Subsidiary (other than any Regulated Subsidiary) that is *not* a Credit Party, and by any Subsidiary (other than any Regulated Subsidiary) of Indebtedness of any Credit Party or of any other Subsidiary (other than any Regulated Subsidiary) that is *not* a Credit Party; <u>provided</u>, <u>that</u>, Guarantees by any Credit Party of Indebtedness of any Subsidiary (other than any Regulated Subsidiary) that is *not* a Credit Party shall be subject to compliance with <u>Section</u> <u>8.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Indebtedness owed to any Person (including obligations in respect of letters of credit for the benefit of such Person) providing workers' compensation, health, disability or other employee benefits or property, casualty, liability insurance, self-insurance, pursuant to reimbursement or indemnification obligations to such Person or to finance insurance premiums, in each case incurred in the ordinary course of business and consistent with past practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Indebtedness in respect of or guarantee of performance bonds, bid bonds, appeal bonds, surety bonds, performance and completion guarantees, workers' compensation claims, letters of credit, bank guarantees and banker's acceptances, warehouse receipts or similar instruments and similar obligations (other than in respect of other Indebtedness for borrowed money), in each case provided in the ordinary course of business and consistent with past practice; <u>provided</u>, <u>that</u>, any Indebtedness arising from the provision by any Credit Party of any of the foregoing for the benefit of any Person that is *not* a Credit Party is subject to compliance with <u>Section</u> <u>8.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) cash management obligations and other Indebtedness in respect of netting services, overdraft protection and similar arrangements, in each case, in connection with cash management and deposit accounts maintained in the ordinary course of business;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) to the extent constituting Indebtedness, Guarantees in the ordinary course of business of the obligations of suppliers, customers, franchisees and licensees of the Credit Parties and Subsidiaries (other than any Regulated Entities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) performance guarantees primarily guaranteeing performance of contractual obligations to a third party and *not* for the purpose of guaranteeing payment of Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) (i) Indebtedness of a Regulated Entity under "surplus notes" owing to one (1) or more other Credit Parties, Subsidiaries or other Regulated Entities, (ii) Indebtedness of a Qualifying Reciprocal Entity under "surplus notes" owing to one (1) or more Persons other than the Credit Parties, Subsidiaries and other Regulated Entities, and (iii) Indebtedness of a Regulated Subsidiary under "surplus notes" owing to one (1) or more Persons other than the Credit Parties, Subsidiaries and other Regulated Entities, <u>provided</u>, <u>that</u>, the aggregate principal amount of Indebtedness permitted in reliance on this <u>clause (o)(iii</u>) shall *not exceed* Fifty Million Dollars ($50,000,000) at any time outstanding; <u>provided</u>, <u>that</u>, in any such case of the foregoing <u>clauses (o)(i</u>) through (<u>o)(iii</u>), (A) such Indebtedness shall be subordinated to the policyholders of the applicable Regulated Entity, (B) payments of principal of, and interest on, such Indebtedness shall only be made upon the prior written consent of the applicable Governmental Authority, and (C) the principal amount of such Indebtedness shall constitute equity in accordance with SAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Indebtedness of any of the Regulated Entities owing to, and in the form of (or incurred pursuant to) loans, funding agreements, and/or guaranteed investment contracts entered into by such Regulated Entity with, a FHLB in connection with the membership of such Regulated Entity in or with such FHLB in the ordinary course of business; <u>provided</u>, <u>that</u>, any such Indebtedness incurred in reliance on this <u>clause (p</u>) is *not* recourse to any of the Credit Parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) other unsecured Indebtedness of the Credit Parties, Subsidiaries and other Regulated Entities in an aggregate amount *not exceeding* One Million Dollars ($1,000,000) at any time outstanding.

Accrual of interest or dividends, the accretion of accreted value, the accretion or amortization of original issue discount and the payment of interest, premium, fees or expenses, in the form of additional Indebtedness, or preferred stock (in each case, so long as such additional Indebtedness or preferred stock is in the same form and on the same terms as the Indebtedness to which such payment relates) shall *not* be deemed to be an incurrence of Indebtedness for purposes of this <u>Section</u> <u>8.1</u>.

Section 8.2 <u>Lie</u><u>ns</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, create, incur, assume, or permit to exist any Lien on, or with respect to, any Properties of any kind (including any document or instrument in respect of goods or accounts receivable) of any Credit Party, any Subsidiary or any other Regulated Entity, whether now owned or hereafter acquired, created or licensed or any income, profits or royalties therefrom, or file, or permit the filing of, or otherwise permit to remain in effect, any financing statement or other similar notice of any Lien with respect to any such Property, income, profits or royalties under the UCC of any State or under any similar recording or notice statute or under any Applicable Laws related to intellectual property, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens in favor of the Collateral Agent, for the benefit of the holders of the Obligations, granted pursuant to any Credit Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liens for Taxes *not* yet due, or for Taxes if obligations with respect to such Taxes are being contested in good faith by appropriate proceedings diligently conducted;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) statutory Liens of landlords, banks, carriers, warehousemen, mechanics, repairmen, workmen and materialmen, and other Liens imposed by Applicable Law (other than any such Lien imposed pursuant to Section 430(k) of the Internal Revenue Code or Section 303(k) or 4068 of ERISA that would constitute an Event of Default under <u>Section</u> <u>9.1(j</u>)), in each case, incurred in the ordinary course of business: (i) for amounts *not* yet overdue; or (ii) for amounts that are overdue and that are being contested in good faith by appropriate proceedings, so long as such reserves or other appropriate provisions, if any, as shall be required by GAAP shall have been made for any such contested amounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens incurred in the ordinary course of business in connection with workers' compensation, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, trade contracts, performance and return-of-money bonds and other similar obligations (exclusive of obligations for the payment of borrowed money or other Indebtedness), so long as no foreclosure, sale or similar proceedings have been commenced with respect to any portion of the Collateral on account thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) easements, rights-of-way, restrictions, encroachments, and other minor defects or irregularities in title, in each case, that do *not* and will *not* interfere, in any material respect, with the ordinary conduct of the businesses of any Credit Party, any Subsidiary or any other Regulated Entity, including, without limitation, all encumbrances shown on any policy of title insurance in favor of the Collateral Agent with respect to any Real Estate Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any interest or title of a lessor or sub-lessor under any lease of real estate permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Liens *solely* on any cash earnest money deposits made by any Credit Party or Subsidiary (other than any Regulated Subsidiary) in connection with any letter of intent, or purchase agreement permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) purported Liens evidenced by the filing of precautionary UCC financing statements relating

*solely* to operating leases of personal property entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any zoning or similar law or right reserved to, or vested in, any governmental office or agency to control or regulate the use of any real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) licenses of patents, trademarks, and other intellectual property rights granted by any Credit Party or Subsidiary (other than any Regulated Entity) in the ordinary course of business and *not* interfering in any respect with the ordinary conduct of the business of such Credit Party or Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Liens existing as of the Closing Date and described in <u>Schedule 8.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Liens securing purchase money Indebtedness and Capital Leases to the extent permitted pursuant to <u>Section</u> <u>8.1(e</u>); <u>provided</u>, <u>that</u>, any such Lien shall encumber only the asset acquired with the proceeds of such Indebtedness or the assets subject to such Capital Lease, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Liens in favor of the Issuing Bank or the Swingline Lender on cash collateral securing the obligations of a Defaulting Lender to fund risk participations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Liens consisting of judgment or judicial attachment liens relating to judgments which do *not*

constitute an Event of Default hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) licenses (including licenses of Intellectual Property), sublicenses, leases or subleases granted to third parties in the ordinary course of business;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Liens in favor of collecting banks under Section 4–210 of the UCC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Liens (including the right of set-off) in favor of a bank or other depository institution arising as a matter of law encumbering deposits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Liens on insurance policies and the proceeds thereof granted in the ordinary course of business to secure the financing of insurance premiums with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) Liens of bailees in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) utility and similar deposits in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Liens on Property (other than, in any event, Collateral) of the Regulated Entities securing Indebtedness permitted and incurred in reliance on <u>Section</u> <u>8.1(p</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) other Liens to the extent securing Indebtedness or other monetary obligations in an aggregate amount *not to exceed* Two-Hundred Fifty Thousand Dollars ($250,000) at any time outstanding.

Section 8.3 <u>No Further Negative Pled</u><u>ges</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, enter into any Contractual Obligation (other than this Agreement and the other Credit Documents) that limits the ability of any Credit Party, any Subsidiary or any other Regulated Entity to create, incur, assume or suffer to exist Liens on property of such Person; <u>provided</u>, <u>that</u>, this <u>Section</u> <u>8.3</u> shall *not* prohibit:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any negative pledge incurred or provided in favor of any holder of Indebtedness permitted under <u>Section</u> <u>8.1(e</u>), *solely* to the extent any such negative pledge relates to the Property financed by or subject to Permitted Liens securing such Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Permitted Lien or any document or instrument governing any Permitted Lien; <u>provided</u>, <u>that</u>, any such restriction contained therein relates only to the Property subject to such Permitted Lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) customary restrictions and conditions contained in any agreement relating to the disposition of any Property permitted under <u>Section</u> <u>8.10</u> pending the consummation of such disposition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) customary provisions restricting assignments, subletting or other transfers contained in leases, licenses, joint venture agreements and similar agreements entered into in the ordinary course of business.

Section 8.4 <u>Restricted Payment</u><u>s</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Subsidiary of the Borrower may make Restricted Payments to any Person that directly owns Equity Interests in such Subsidiary, ratably according to their respective holdings of the type of Equity Interests in respect of which such Restricted Payment is being made;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower may declare and make dividend payments or other distributions payable *solely* in common Equity Interests in the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the making of the Closing Date Distribution in cash on the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) other Restricted Payments paid in cash, so long as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default exists or would result therefrom; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately *after* giving effect to any such Restricted Payment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Consolidated Leverage Ratio, determined on a Pro Forma Basis, is *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the Consolidated Leverage Ratio required for the most recently ended Trailing Period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there remains *at least* Ten Million Dollars ($10,000,000) of Liquidity.

Section 8.5 <u>Burdensome</u><u> </u><u>Agreement</u><u>s</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, enter into, or permit to exist, any Contractual Obligation that encumbers or restricts the ability of any such Person to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pay dividends or make any other distributions to any Credit Party on its Equity Interests or with respect to any other interest or participation in, or measured by, its profits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) pay any Indebtedness or other obligation owed to any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) make loans or advances to any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) sell, lease or transfer any of its Property to any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) pledge its Property pursuant to the Credit Documents or any renewals, refinancings, exchanges, refundings or extension thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) act as a Credit Party pursuant to the Credit Documents or any renewals, refinancings, exchanges, refundings or extension thereof;

except (in respect of any of the matters referred to in <u>clauses (i</u>) through (<u>iv</u>) above) for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) this Agreement and the other Credit Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any document or instrument governing Indebtedness incurred pursuant to <u>Section</u> <u>8.1(e</u>); <u>provided</u>, <u>that</u>, any such restriction contained therein relates only to the Property constructed or acquired in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Permitted Lien or any document or instrument governing any Permitted Lien; <u>provided</u>, <u>that</u>, any such restriction contained therein relates only to the Property subject to such Permitted Lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) customary restrictions and conditions contained in any agreement relating to the sale of any Property permitted under <u>Section</u> <u>8.10</u> pending the consummation of such sale;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any restrictions regarding licensing or sublicensing by the Credit Parties, Subsidiaries and other Regulated Entities of Intellectual Property in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) customary provision in leases and other contracts restricting the assignment thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) restrictions that arise in connection with Indebtedness permitted to be incurred pursuant to <u>Section</u> <u>8.1(j</u>).

Section 8.6 <u>Investment</u><u>s</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, make or own any Investment in any Person, including any joint venture and any Foreign Subsidiary, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investments in cash and Cash Equivalents and deposit accounts or securities accounts in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) equity Investments owned as of the Closing Date in any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) intercompany loans to the extent permitted under <u>Section</u> <u>8.1(b</u>), and guarantees to the extent permitted under <u>Section</u> <u>8.1(c</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Investments existing on the Closing Date and described on <u>Schedule 8.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Investments constituting Swap Agreements permitted by <u>Section</u> <u>8.1(f</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Permitted Acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Investments constituting accounts receivable, trade debt and deposits for the purchase of goods, in each case made in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Investments made by Regulated Entities in the ordinary course of business that are consistent with the respective investment policies of each such Regulated Entity in effect on the Closing Date, as such policy may be amended or modified from time to time by board (or equivalent) approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Guarantees by any Credit Party, any Subsidiary or any other Regulated Entity constituting Indebtedness permitted by <u>Section</u> <u>8.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) loans or advances to employees, officers or directors of members of any Credit Party or Subsidiary (other than any Regulated Subsidiary) in the ordinary course of business for travel, relocation and related expenses; <u>provided</u>, <u>that</u>, the aggregate amount of all such loans and advances does *not exceed* Five-Hundred Thousand Dollars ($500,000) in the aggregate at any time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, customers and suppliers, or upon the foreclosure with respect to any secured Investment or other transfer of title with respect to any secured Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Investments resulting from pledges or deposits described in <u>Section</u> <u>8.2(d</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Investments consisting of cash earnest money deposits in connection with a Permitted Acquisition or other Investment permitted hereunder;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Investments consisting of endorsements for collection or deposit in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Investments by any Credit Party, any Subsidiary, or any other Regulated Entity in a Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Investments by Subsidiaries (including Regulated Subsidiaries) that are *not* Credit Parties or by Qualifying Reciprocal Entities, on the one hand, in other Subsidiaries (including Regulated Subsidiaries) that are *not* Credit Parties or in other Qualifying Reciprocal Entities, on the other hand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Investments by the Credit Parties in (including, without limitation, in the form of provision of a Letter of Credit for the benefit of) Regulated Entities to the extent required to provide capital support for such Regulated Entities, <u>provided</u>, <u>that</u>, each of the following conditions shall have been satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default exists or would result from such Investment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately *after* giving effect to any such Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis, shall be *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the maximum Consolidated Leverage Ratio then in effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there shall be *at least* Ten Million Dollars ($10,000,000) of Liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Investments made in connection with Indebtedness permitted and incurred in reliance on <u>Section</u> <u>8.1(p</u>) consisting of Equity Interests in an FHLB that are held by a Regulated Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) other Investments in an aggregate amount that does *not exceed* One Million Dollars ($1,000,000) outstanding at any time (measured on a cost basis, to the extent applicable).

Notwithstanding anything to the contrary in the foregoing, in no event shall any Credit Party, any Subsidiary or any other Regulated Entity make any Investment that results in or facilitates in any manner any Restricted Payment *not* otherwise permitted under the terms of <u>Section</u> <u>8.4</u>. For purposes of determining compliance with this <u>Section</u> <u>8.6</u>, any Investment that is written down, written off or forgiven by any Credit Party, any Subsidiary or any other Regulated Entity shall continue to count against any cap set forth in the clause or clauses of this <u>Section</u> <u>8.6</u> pursuant to which such Investment is permitted.

Section 8.7 <u>Use of Procee</u><u>ds</u>. No Credit Party shall use the proceeds of any Credit Extension of the Loans except pursuant to <u>Section</u> <u>7.9</u>. No Credit Party shall use, and each Credit Party shall ensure that each of its Subsidiaries, each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact, and each of the respective directors, officers, employees and agents of each of the foregoing, shall *not* use, the proceeds of any Credit Extension:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to refinance any commercial paper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in any manner that causes, or might cause, such Credit Extension, or the application of such proceeds, to violate any applicable Sanctions, Regulation T, Regulation U or Regulation X of the Federal Reserve Board, as in effect from time to time or any other regulation thereof, or to violate the Exchange Act;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country.

Section 8.8 <u>Financial</u><u> </u><u>Covenant</u><u>s</u>. The Credit Parties shall *not*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Consolidated Leverage Ratio</u>. Permit the Consolidated Leverage Ratio, as of the end of any Fiscal Quarter commencing with the Fiscal Quarter ending March 31, 2025, to be *greater than* 2.25 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consolidated Fixed Charge Coverage Ratio</u>. Permit the Consolidated Fixed Charge Coverage Ratio, as of the end of any Fiscal Quarter commencing with the Fiscal Quarter ending March 31, 2025, to be *less than* 1.25 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Combined Statutory Surplus</u>. Permit the Combined Statutory Surplus, as of the end of any Fiscal Quarter, to be *less than* the *sum of*: (i) eighty percent (80.0%) of the Combined Statutory Surplus, determined as of the end of the last Fiscal Quarter ending immediately *prior* to the Closing Date; *plus* (ii) eighty percent (80.0%) of the aggregate amount of Investments (including, for purposes of clarity, Investments in the form of "surplus notes") made after the Closing Date by any Credit Party or Subsidiary (other than a Regulated Entity) in any Regulated Entity (other than a Captive Reinsurance Company), including, for purposes of clarity, any such Investments made with the proceeds of Revolving Loans or an advance under the Delayed Draw Term Loan.

Section 8.9 <u>Fundamental Changes; Disposition of Assets; Acquisition</u><u>s</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, enter into any Acquisition or transaction of merger or consolidation, or liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution), or make any Asset Sale, or acquire by purchase or otherwise (other than purchases or other acquisitions of inventory and materials and the acquisition of equipment and capital expenditures in the ordinary course of business, subject to <u>Section</u> <u>8.9</u>) the business, property or fixed assets of, or Equity Interests or other evidence of beneficial ownership of, any Person or any division or line of business or other business unit of any Person (including, in each case, pursuant to the division or allocation of a limited liability company), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Subsidiary of any Credit Party may be merged with or into the Borrower or any other Subsidiary, or be liquidated, wound up or dissolved, or all, or any part, of its business or Property may be conveyed, sold, leased, transferred or otherwise disposed of, in one (1) transaction or a series of transactions, to the Borrower or any other Subsidiary; <u>provided</u>, <u>that</u>, in the case of such a merger, (i) if the Borrower is party to the merger, the Borrower shall be the continuing or surviving Person, and (ii) if any Guarantor is a party to such merger, then a Guarantor shall be the continuing or surviving Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Investments made in accordance with <u>Section</u> <u>8.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) sales of any Property made by any Regulated Entity in the ordinary course of business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Asset Sales, the proceeds of which, when aggregated with the proceeds of all other Asset Sales consummated within the same Fiscal Year in reliance on this <u>clause (d</u>), do *not exceed* One Million Dollars ($1,000,000); <u>provided</u>, <u>that</u>, (i) the consideration received by any Credit Party, Subsidiary or other Regulated Entity for the Property sold, or otherwise disposed of, pursuant to such Asset Sale shall be in an aggregate amount *at least* equal to the fair market value (as determined in good faith by the board of directors or managers (or similar governing body) of the applicable Credit Party, Subsidiary or other Regulated Entity) of such Property, and (ii) *no less than* seventy-five percent (75.0%) of such proceeds shall be paid in cash or Cash Equivalents.

------

Section 8.10 <u>Disposal of Subsidiary Interest</u><u>s</u>. Except for any sale of all of its interests in the Equity Interests of any of its Subsidiaries in compliance with the provisions of <u>Section</u> <u>8.9</u> and except for Liens securing the Obligations, no Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) directly or indirectly sell, assign, pledge, or otherwise encumber or dispose of any Equity Interests in any of its Subsidiaries, except to qualify directors if required by Applicable Laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) permit any of its Subsidiaries directly or indirectly to sell, assign, pledge, or otherwise encumber or dispose of any Equity Interests in any of its Subsidiaries, except to another Credit Party (subject to the restrictions on such disposition otherwise imposed hereunder), or to qualify directors if required by Applicable Laws.

Section 8.11 <u>Sales and Lease-Bac</u><u>ks</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, become or remain liable as lessee or as a guarantor or other surety with respect to any lease of any Property (whether real, personal or mixed), whether now owned or hereafter acquired, which the applicable Credit Party, Subsidiary or other Regulated Entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has sold or transferred, or is to sell or to transfer, to any other Person (other than any Credit Party); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) intends to use for substantially the same purpose as any other Property that has been, or is to be, sold or transferred by any Credit Party to any Person (other than any Credit Party) in connection with such lease.

Section 8.12 <u>Transactions with Affiliates and Insider</u><u>s</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, enter into or permit to exist any transaction (including the purchase, sale, lease or exchange of any Property or the rendering of any service) with any officer, director or Affiliate of any Credit Party, any Subsidiary or any other Regulated Entity on terms that are *less* favorable to such Credit Party, Subsidiary or other Regulated Entity, as the case may be, than those that might be obtained at the time from a Person who is *not* an officer, director or Affiliate of any Credit Party, any Subsidiary or any other Regulated Entity; <u>provided</u>, <u>that</u>, the foregoing restriction shall *not* apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any transaction exclusively between or among Credit Parties, and any transaction exclusively between or among Affiliates of any Credit Party, any Subsidiary or any other Regulated Entity that are *not* Credit Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) compensation (including bonuses and equity or other consideration) and employee benefit arrangements paid to, indemnities provided for the benefit of, and employment and severance arrangements entered into with, and reimbursement of expenses of officers and directors and approved by the Board of Directors of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Restricted Payment to the extent permitted by <u>Section</u> <u>8.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Investment to the extent permitted by <u>Section</u> <u>8.6</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any issuances of securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment agreements, employee stock options and employee stock ownership plans.

------

Section 8.13 <u>Modification or Payment of Certain Funded D</u><u>ebt</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) after the issuance thereof, amend or modify (or permit the termination, amendment or modification of) the terms of any Junior Debt in a manner adverse, in any material respect, to the interests of the Lenders (including specifically shortening any maturity or average life to maturity or requiring any payment sooner than previously scheduled or increasing the interest rate or fees applicable thereto), except to the extent any such amendment or modification constitutes a Permitted Refinancing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) pay, prepay, redeem, purchase, repurchase, defease, retire or extinguish, or otherwise satisfy, or obligate itself or any other Credit Party, Subsidiary or other Regulated Entity to do any of the foregoing, in respect of any Junior Debt other than any Indebtedness in the form of "surplus notes", except for payments of regularly scheduled interest, regularly scheduled amortization (if any) of principal, accrued fees and expenses and customary indemnification obligations, and other required payments at the scheduled maturity thereof, in each case of this <u>clause (b</u>), *solely* to the extent that each of the following conditions are satisfied in respect of such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default then exists or would result from the making of such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) both immediately *before* and immediately *after* giving effect to any such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis, shall be *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the maximum Consolidated Leverage Ratio then in effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there shall be *at least* Ten Million Dollars ($10,000,000) of Liquidity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction is permitted under any and all applicable subordination, standstill and/or similar provisions in any applicable Contractual Obligation of such Credit Party, Subsidiary or other Regulated Entity.

Section 8.14 <u>Conduct</u><u> </u><u>of</u><u> </u><u>Busines</u><u>s</u>. From and after the Closing Date, no Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, engage in any business other than the businesses engaged in by such Credit Party, Subsidiary or other Regulated Entity on the Closing Date and businesses that are substantially similar, related or incidental thereto.

Section 8.15 <u>Fiscal Yea</u><u>r</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, change its Fiscal Year-end from December 31.

------

Section 8.16 <u>Amendments to Organizational Agreements / Material Agreement</u><u>s</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to: (a) amend, or permit any amendments to, its Organizational Documents, if such amendment could reasonably be expected to be materially adverse to the Lenders, the Administrative Agent or the Collateral Agent; (b) amend or permit any amendments to, or terminate or waive any provision of, any Material Contract (other than any managing general agent, service company or attorney-in-fact agreement), unless such amendment, termination, or waiver would *not* have, and would *not* be expected to have, a Material Adverse Effect; or (c) amend or permit any amendments to, or terminate or waive any provision of, any managing general agent, service company or attorney-in-fact agreement entered into by any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the one hand, and a Regulated Entity, on the other hand, unless such amendment, termination, or waiver would *not* have, and would *not* be expected to have, an adverse effect on the Credit Parties, the Administrative Agent, the Collateral Agent or the Lenders, <u>provided</u>, <u>that</u>, notwithstanding anything to the contrary in the foregoing of this <u>clause (c</u>), so long as any such waiver is permitted as an Investment in accordance with <u>Section</u> <u>8.6</u>, the Credit Parties and Subsidiaries (other than Regulated Subsidiaries) shall be permitted to waive any provision of any managing general agent, service company or attorney-in-fact agreement entered into by any Credit Party or Subsidiary (other than a Regulated Subsidiary), on the one hand, and a Regulated Entity, on the other hand, in order to reduce or waive, in whole or in part, managing general agency, service company or attorney-in-fact fees that are then due and payable thereunder and/or have already been paid but which are subsequently waived in accordance with Applicable Law by the Credit Party or Subsidiary (other than a Regulated Subsidiary) to whom such fees would otherwise have been paid thereunder, as applicable.

Section 8.17 <u>Accounting and Reporting Change</u><u>s</u>. (i) No Credit Party or Subsidiary (other than any Regulated Entity) may make any significant change in accounting treatment or reporting practices, except as required by GAAP or the SEC; and (ii) no Regulated Entity may make any significant change in accounting treatment or reporting practices, except as required by SAP.

Section 8.18 <u>Statutory Capitalization / Risk-Based Capital Rati</u><u>o</u>. As of the end of each Fiscal Year, each Credit Party, Subsidiary and other Regulated Entity that is subject to any minimum statutory capitalization and/or risk-based capital ratio requirements imposed by any Insurance Regulatory Authority and/or Applicable Laws shall meet or exceed such requirements and, in any event, maintain a risk-based capital ratio of *at least* three-hundred percent (300.0%) of the authorized control level (or substantially equivalent term as used under Applicable Laws and/or by any applicable Insurance Regulatory Authority); <u>provided</u>, <u>that</u>, in the event of any failure to comply with any of the foregoing requirements, the Credit Parties, Subsidiaries and other Regulated Entities shall have a period of thirty (30) calendar days, measured from, and including, the date on which any of the Credit Parties, Subsidiaries and other Regulated Entities that are subject to any such requirements shall have reported, or have been required under Applicable Law or other requirement of an Insurance Regulatory Authority to report, any such capitalization and/or risk-based capital ratio information to an applicable Insurance Regulatory Authority, to return to compliance with such minimum statutory capitalization and/or risk-based capital ratio requirements.

Section 8.19 <u>Holdco Restriction</u><u>s</u>. The Borrower shall *not* incur any Indebtedness, grant any Liens upon any of its Property, or engage in any operations, business or activity whatsoever, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) incurring and carrying Indebtedness permitted under <u>Section</u> <u>8.1</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) owning and/or purchasing Equity Interests in Subsidiaries and serving as the attorney-in-fact for Qualifying Reciprocal Entities,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) granting a security interest in its Property pursuant to the terms of any Collateral Documents or otherwise as permitted by <u>Section</u> <u>8.2</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) providing a Guaranty of the Obligations pursuant to this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) maintaining its corporate or limited liability company (as applicable) existence,

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) participating in tax, accounting and other administrative activities for itself and/or as a member of the consolidated group of companies including the Credit Parties and Subsidiaries,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) executing and delivering, and exercising its respective rights and performing each of its respective obligations under, each of the Credit Documents to which it is a party, any Secured Swap Agreements and/or Secured Treasury Management Agreements to which it is a party, and any other Contractual Obligations to which it is a party,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) opening and maintaining bank accounts,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) making any Restricted Payments or Investments expressly permitted to be made pursuant to this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) providing customary indemnification to officers and directors in the ordinary course of business (including pursuant to any Acquisition agreement and related documents to which it is a party),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) owning cash and Cash Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) issuing securities or other payments, awards or grants in cash, securities, or otherwise pursuant to (or for the funding of, as applicable) employment agreements to which it is a party or related employee stock options and employee stock ownership plans, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) any activities incidental or reasonably related to the foregoing,

in each case of the foregoing <u>clauses (a</u>) through (<u>m</u>), in a lawful manner *not* in contravention of the terms of this Agreement and the other Credit Documents.

**Article 9** 

**<u>EVENTS OF DEFAULT</u>**<u>;</u> **<u>REMEDIES</u>**<u>;</u> **<u>APPLICATION OF FUNDS</u>**.

Section 9.1 <u>Events</u><u> </u><u>of</u><u> </u><u>Defaul</u><u>t</u>. If any one (1) or more of the following conditions or events shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Failure to Make Payments When Due</u>. Failure by any Credit Party to pay:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the principal of any Loan when due, whether at stated maturity, by acceleration or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within one (1) Business Day of when due, any amount payable to the Issuing Bank in reimbursement of any drawing under a Letter of Credit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) within five (5) Business Days of when due, any interest on any Loan or any fee or any other amount due hereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Default in Other Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Failure of any Credit Party, any Subsidiary, or any other Regulated Entity to pay when due any principal of or interest on, or any other amount payable in respect of, one or more items of Indebtedness (other than Indebtedness referred to in <u>clause (a</u>) above) in an aggregate principal amount in *excess* of the Threshold Amount, in each case, beyond the grace or cure period, if any, provided therefor; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) breach or default by any Credit Party, any Subsidiary, or any other Regulated Entity with respect to any other term of (A) one (1) or more items of Indebtedness in the aggregate principal amounts referred to in <u>clause (b)(i</u>) above, or (B) any loan agreement, mortgage, indenture or other agreement relating to such item(s) of Indebtedness, in each case, beyond the grace or cure period, if any, provided therefor, if the effect of such breach or default is to cause, or to permit the holder or holders of that Indebtedness (or a trustee on behalf of such holder or holders), to cause, that Indebtedness to become or be declared due and payable (or subject to a compulsory repurchase or redeemable) prior to its stated maturity or the stated maturity of any underlying obligation, as the case may be;

<u>provided</u>, <u>that</u>, so long as the Administrative Agent has *not* exercised any remedies under this <u>Article 9</u>, any Default or Event of Default under this <u>clause (b</u>) shall be immediately cured and no longer continuing (without any action on the part of the Administrative Agent, any Lender or otherwise) as and when any such failure (I) is remedied by applicable Credit Party, Subsidiary or other Regulated Entity, or (II) is waived (including in the form of amendment) by the requisite holders of the applicable item of Indebtedness; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Breach of Certain Covenants</u>. Failure of any Credit Party to perform or comply with any term or condition contained in <u>Section</u> <u>7.1(a</u>), <u>Section</u> <u>7.1(b</u>), <u>Section</u> <u>7.1(c</u>), <u>Section</u> <u>7.1(h</u>), <u>Section</u> <u>7.2(a</u>), <u>Section</u> <u>7.6</u>, <u>Section</u> <u>7.9</u> or <u>Section</u> <u>7.15</u>, or <u>Article 8</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Breach of Representations, etc</u>. Any representation, warranty, certification or other statement made, or deemed made, by any Credit Party or Subsidiary in any Credit Document to which it is a party, or in any statement or certificate at any time given by any Credit Party, Subsidiary or other Regulated Entity in writing pursuant hereto or thereto, or in connection herewith or therewith, shall be false in any material respect as of the date made or deemed made; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Other Defaults Under Credit Documents</u>. Any Credit Party, any Subsidiary or any other Regulated Entity shall default in the performance of, or compliance with, any term contained herein or in any of the other Credit Documents to which it is a party, other than any such term referred to in any other clause of this <u>Section</u> <u>9.1</u>, and such default shall *not* have been remedied or waived within thirty (30) days after the *earlier* to occur of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an Authorized Officer of any Credit Party becoming aware of such default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) receipt by the Borrower of notice from the Administrative Agent or the Required Lenders of such default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Involuntary Bankruptcy; Appointment of Receiver, etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A court of competent jurisdiction shall enter a decree or order for relief in respect of any Credit Party, any Subsidiary, or any other Regulated Entity in an involuntary case under the Bankruptcy Code or Debtor Relief Laws now or hereafter in effect, which decree or order is *not* stayed, or any other similar relief shall be granted under any applicable federal or state law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) an involuntary case shall be commenced against any Credit Party, any Subsidiary, or any other Regulated Entity under the Bankruptcy Code or other Debtor Relief Laws now or hereafter in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over any Credit Party, any Subsidiary or any other Regulated Entity, or over all, or a substantial part, of their respective Property, shall have been entered;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there shall have occurred the involuntary appointment of an interim receiver, trustee or other custodian of any Credit Party, any Subsidiary, or any other Regulated Entity for all, or a substantial part, of its respective Property; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) a warrant of attachment, execution or similar process shall have been issued against any substantial part of the Property of any Credit Party, any Subsidiary or any other Regulated Entity;

and any such event described in this <u>clause (f)(ii</u>) shall continue for sixty (60) days without having been dismissed, bonded or discharged; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Voluntary Bankruptcy; Appointment of Receiver, etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Credit Party, any Subsidiary, or any other Regulated Entity shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) have an order for relief entered with respect to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) commence a voluntary case under the Bankruptcy Code or other Debtor Relief Laws now or hereafter in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) consent to the appointment of, or taking possession by, a receiver, trustee or other custodian for all, or a substantial part, of its Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) make any assignment for the benefit of creditors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) be unable, or fail generally, or admit in writing its inability, to pay its debts as such debts become due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the board of directors (or similar governing body) of any Credit Party, any Subsidiary or any other Regulated Entity, or any committee thereof, shall adopt any resolution or otherwise authorize any action to approve any of the actions referred to in this <u>clause (g</u>) or in <u>clause (f</u>) above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Judgments and Attachments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any one or more final, non-appealable money judgments, writs or warrants of attachment or similar process involving an aggregate amount at any time in *excess* of the Threshold Amount (to the extent *not* adequately covered by insurance as to which a solvent and unaffiliated insurance company has acknowledged coverage in writing) shall be entered or filed against any Credit Party, any Subsidiary or any other Regulated Entity, or any of their respective Property, and shall remain undischarged, un-vacated, un-bonded or un-stayed for a period of sixty (60) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any non-monetary judgment or order shall be rendered against any Credit Party, any Subsidiary or any other Regulated Entity that could reasonably be expected to have a Material Adverse Effect, and shall remain undischarged, un-vacated, un-bonded or un-stayed for a period of sixty (60) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Dissolution</u>. Any order, judgment or decree shall be entered against any Credit Party, any Subsidiary or any other Regulated Entity decreeing the dissolution or split up of any such Person, and such order shall remain undischarged or un-stayed for a period in *excess* of thirty (30) days; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Pension Plans</u>. There shall occur one (1) or more ERISA Events that, individually or in the aggregate when taken together, results in liability to the Credit Parties, Subsidiaries and other Regulated Entities (taken together) in *excess* of the Threshold Amount during the term hereof and which is *not* paid by the applicable due date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Change in Control</u>. A Change in Control shall occur; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Invalidity of Credit Documents and Other Documents</u>. At any time after the execution and delivery thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) this Agreement or any other Credit Document ceases to be in full force and effect (other than by reason of (x) a release of Collateral in accordance with the terms of this Agreement and the other Credit Documents, or (y) the Payment in Full of the Obligations) or is declared to be null and void; or (B) the Collateral Agent shall *not* have, or shall cease to have, a valid and perfected Lien in any material portion of the Collateral purported to be covered by the Collateral Documents with the priority required by the relevant Collateral Document, except, in the case of this <u>clause (l)(i)(B</u>), to the extent that any such lapse is due to the failure by the Collateral Agent to (I) file any UCC financing statement or any continuation thereof, or (II) maintain possession of certificates, promissory notes, or other possessory Collateral pledged under the Collateral Documents (except to the extent that any such items were required to be delivered to the Collateral Agent pursuant to this Agreement and the other Credit Documents and were *not* so delivered within the applicable timeframe prescribed therefor in the applicable Credit Document(s)); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Credit Party, any Subsidiary, or any other Regulated Entity shall contest the validity or enforceability of any Credit Document in writing or deny in writing that any Credit Party has any further liability, including with respect to future advances by the Lenders, under any Credit Document to which it is a party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Risk Retention</u>. On June 1<sup>st</sup> of each calendar year, the net (of reinsurance coverage obtained) pre-tax catastrophe retention of any individual Regulated Entity (other than any Captive Reinsurance Company), whose Statutory Surplus is available for payment of claims on policies issued by the Regulated Entities (other than Captive Reinsurance Companies), *exceeds* twenty-five percent (25.0%) of the Statutory Surplus of such Regulated Entity, determined as of March 31<sup>st</sup> of the same calendar year in the event of a 1/100 Probable Maximum Loss followed by a subsequent event equivalent to a 1/50 Probable Maximum Loss, as measured by a catastrophe model that has been approved by the appropriate Insurance Regulatory Authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Reinsurer Concentration</u>. The aggregate amount of risk retention for catastrophe reinsurance (but *excluding* catastrophe reinsurance the full amount of which is collateralized as reasonably determined by the Administrative Agent) provided for payment of claims on policies purchased from the Credit Parties, Subsidiaries and other Regulated Entities provided by (i) any Qualifying Reinsurer (other than the Florida Hurricane Catastrophe Fund) with an "A+" or higher financial strength rating from A.M. Best Company (or any successor in interest thereto), on an annual contract year basis, *exceeds* thirty-five percent (35.0%), or (ii) any other individual (or affiliated) reinsurer (other than the Florida Hurricane Catastrophe Fund), on an annual contract year basis, *exceeds* twenty-five percent (25.0%), in each case of the foregoing <u>clauses (n)(i</u>) and (<u>n)(ii</u>), of the aggregate amount of all such risk retention provided by all reinsurers (other than the Florida Hurricane Catastrophe Fund); <u>provided</u>, <u>that</u>, (A) for purposes of determining whether an Event of Default exists under this <u>clause (n</u>), reinsurance provided by Non-Qualifying Reinsurers shall be *excluded* from the calculation of the aggregate amount of risk retention to the extent that the aggregate amount of reinsurance provided by Non-Qualifying Reinsurers *exceeds* ten percent (10.0%) of the aggregate amount of all reinsurance maintained by, or for the benefit of, the Regulated Entities whose Statutory Surpluses are available for payment of claims on policies issued by the Credit Parties, Subsidiaries and other Regulated Entities, and (B) no Event of Default shall arise under this <u>clause (n</u>) to the extent *solely* arising from the merger, after the Closing Date but *prior* to the renewal of the applicable reinsurance agreements, of any reinsurer into another reinsurer, so long as no party to any such merger is a Credit Party, a Subsidiary, another Regulated Entity, or an Affiliate of any of the foregoing; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Dissolution</u>. Any order, judgment or decree shall be entered against any Credit Party, any Subsidiary, or any other Regulated Entity decreeing the dissolution or split up of any such Person, and such order, judgement or decree shall remain undischarged or unstayed for a period in *excess* of thirty (30) calendar days.

Section 9.2 <u>Remedi</u><u>es</u>. Subject to any applicable restrictions set forth in <u>Section</u> <u>9.4</u> in connection with the making of a Specified Equity Contribution, upon (a) the occurrence of an Automatic Acceleration Event of Default, automatically, and (b) the occurrence, and during the continuance, of any other Event of Default, at the request of (or with the consent of) the Required Lenders, upon notice to the Borrower by the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Revolving Commitments, if any, of each Lender having such Revolving Commitments, and the obligation of the Issuing Bank to issue any Letter of Credit, each shall immediately terminate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the DDTL Commitments, if any, of each Lender having such DDTL Commitments shall immediately terminate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each of the following shall immediately become due and payable, in each case, without presentment, demand, protest or other requirements of any kind, all of which are hereby expressly waived by each of the Credit Parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the unpaid principal amount of, and accrued interest on, the Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) an amount equal to the maximum amount that may at any time be drawn under all Letters of Credit then outstanding (regardless of whether any beneficiary under any such Letter of Credit shall have presented, or shall be entitled at such time to present, the drafts or other documents or certificates required to draw under such Letters of Credit); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) all other Obligations;

<u>provided</u>, <u>that</u>, the foregoing <u>sub-clauses (ii)(A</u>), (<u>ii)(B</u>) and (<u>ii)(C</u>) shall *not* affect in any way the obligations of the Lenders under <u>Section</u> <u>2.2(b)(iii</u>) or <u>Section</u> <u>2.3(e</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Administrative Agent may cause the Collateral Agent to enforce any and all Liens and security interests created pursuant to Collateral Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Administrative Agent shall direct the Borrower to pay (and the Borrower hereby agrees, upon receipt of such notice, or automatically upon the occurrence of any Automatic Acceleration Event of Default, to pay) to the Administrative Agent such additional amounts of cash, to be held as security for the Borrower's reimbursement Obligations in respect of Letters of Credit then outstanding under arrangements acceptable to the Administrative Agent, equal to the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, at such time.

Notwithstanding anything herein or otherwise to the contrary, any Event of Default occurring hereunder shall continue to exist (and shall be deemed to be continuing) until such time as such Event of Default has been cured to the satisfaction of the Required Lenders or waived in writing in accordance with the terms of <u>Section</u> <u>11.4</u>.

------

Section 9.3 <u>Application</u><u> </u><u>of</u><u> </u><u>Funds</u>. After the exercise of remedies provided for in <u>Section</u> <u>9.2</u> (or after the Loans have automatically become immediately due and payable), any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>First</u>*, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (other than principal, interest and Letter of Credit Fees but including without limitation all reasonable out-of-pocket fees, expenses and disbursements of any law firm or other counsel and amounts payable under <u>Section</u> <u>3.1</u>, <u>Section</u> <u>3.2</u> and <u>Section</u> <u>3.3</u>) payable to the Administrative Agent and the Collateral Agent, in each case, in its capacity as such;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Second</u>*, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders, including, without limitation, all reasonable out-of-pocket fees, expenses and disbursements of any law firm or other counsel and amounts payable under <u>Section</u> <u>3.1</u>, <u>Section</u> <u>3.2</u> and <u>Section</u> <u>3.3</u>), ratably among the Lenders in proportion to the respective amounts described in this *<u>Second clause</u>* payable to them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Third</u>*, to payment of that portion of the Obligations constituting accrued and unpaid Letter of Credit Fees and interest on the Loans, Letter of Credit Borrowings and other Obligations ratably among such parties in proportion to the respective amounts described in this *<u>Third clause</u>* payable to them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Fourth</u>*, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) payment of that portion of the Obligations constituting unpaid principal of the Loans and Letter of Credit Borrowings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) payment of breakage, termination or other amounts owing in respect of any Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, to the extent such Swap Agreement is permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) payments of amounts due under any Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Administrative Agent for the account of the Issuing Bank, to Cash Collateralize that portion of the Letter of Credit Obligations comprised of the aggregate undrawn amount of Letters of Credit;

ratably among such parties in proportion to the respective amounts described in this *<u>Fourth clause</u>* payable to them; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Last</u>*, the balance, if any, after all of the Obligations have been Paid in Full, to the Borrower or as otherwise required by Applicable Laws.

Subject to <u>Section</u> <u>2.3</u>, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to the *<u>Fourth clause</u>* above shall be applied to satisfy drawings under such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above.

------

Excluded Swap Obligations with respect to any Guarantor shall *not* be paid with amounts received from such Guarantor or such Guarantor's assets, but appropriate adjustments shall be made with respect to payments from other Credit Parties to preserve the allocation to Obligations otherwise set forth above in this <u>Section</u> <u>9.3</u>.

Notwithstanding anything to the contrary in the foregoing, Secured Swap Obligations and Secured Treasury Management Obligations shall be excluded from the application described above if the Administrative Agent has not received a Secured Party Designation Notice, together with such supporting documentation as the Administrative Agent may request, from the applicable Qualifying Swap Provider or Qualifying Treasury Management Bank, as the case may be. Each Qualifying Swap Provider or Qualifying Treasury Management Bank not a party to this Agreement that has given the notice contemplated by the preceding sentence shall, by such notice, be deemed to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of <u>Article 10</u> for itself and its Affiliates as if a "*Lender*" party to this Agreement.

Section 9.4 <u>Cure Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any provision to the contrary contained in this Agreement or any other Credit Document, for purposes of determining compliance with the Financial Covenants set forth in <u>Section</u> <u>8.8(a</u>) and <u>Section</u> <u>8.8(b</u>), respectively, the proceeds ("*<u>Cure Proceeds</u>*") of any cash equity contribution (which equity shall be common Equity Interests or other Equity Interests *not* constituting Disqualified Equity Interests) that is made by any of the holders (direct or indirect) of outstanding Equity Interests in the Borrower to the Borrower after the end of the applicable Fiscal Quarter in respect of which such Cure Proceeds are contributed but, in any event, on or prior to the date that is fifteen (15) Business Days after the date on which financial statements have been, or are required to have been, delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>) in respect of such Fiscal Quarter (each such period, a "*<u>Cure Period</u>*"), will be included in the calculation of (and such Cure Proceeds shall increase) Consolidated EBITDA on a dollar-for-dollar basis *solely* for the limited purpose of determining compliance with the Financial Covenant set forth in <u>Section</u> <u>8.8(a</u>) and/or the Financial Covenant set forth in <u>Section</u> <u>8.8(b</u>) (as applicable) for (I) such Fiscal Quarter, and (II) any subsequent fiscal period including such Fiscal Quarter (each such contribution of Cure Proceeds, a "*<u>Specified Equity Contribution</u>*"), and, for the avoidance of doubt, such Cure Proceeds shall be disregarded and shall *not* affect the calculation of Consolidated EBITDA for all other purposes of this Agreement and the other Credit Documents (including, without limitation, for purposes of calculating compliance with any of such Financial Covenants with respect to any other fiscal period, calculating compliance with the Financial Covenant set forth in <u>Section</u> <u>8.8(c</u>) with respect to any fiscal period, calculation of the Applicable Margin, calculation of availability under any Financial Covenant-related basket, carveout or exception set forth in this Agreement or any other Credit Document, or calculation of compliance, on a Pro Forma Basis or otherwise, with any financial ratio-based test or condition related to determining whether the consummation of any Specified Transaction is permitted under this Agreement or any other Credit Document), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) with respect to each fiscal period consisting of two (2) consecutive full Fiscal Quarters, there shall be *at least* one (1) Fiscal Quarter during such period in respect of which no Specified Equity Contribution is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there shall be *no more than* five (5) Specified Equity Contributions made in the aggregate during the term of this Agreement (it being understood and agreed that, in the event that a Specified Equity Contribution is made in respect of multiple Financial Covenants each measured as of the end of a single Fiscal Quarter, then such Specified Equity Contribution for such Fiscal Quarter shall count as a single Specified Equity Contribution for purposes of this <u>clause (a)(ii</u>));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate amount of Cure Proceeds contributed in respect of any individual Specified Equity Contribution shall be *no greater than* the minimum amount required to cause the Credit Parties to be in compliance with the applicable Financial Covenant(s) for the applicable Fiscal Quarter in respect of which such Specified Equity Contribution is made;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all Specified Equity Contributions shall be disregarded for purposes of the calculation of Consolidated EBITDA for all purposes of this Agreement and the other Credit Documents, other than for the express purpose(s), and for the applicable period(s), as described in the foregoing of this <u>Section</u> <u>9.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) there shall be no *pro forma* or other reduction in Indebtedness, through either the netting of cash or prepayment of the Term Loans or otherwise, with any Cure Proceeds received by any Credit Party, any Subsidiary or any other Regulated Entity in respect of any Specified Equity Contribution for purposes of determining compliance with the Financial Covenants for any period(s) in respect of which such Specified Equity Contribution is included in Consolidated EBITDA in accordance with this <u>clause (a</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Borrower shall prepay the Obligations with the Cure Proceeds received by any Credit Party, any Subsidiary or any Regulated Entity in connection with any Specified Equity Contribution in accordance with <u>Section</u> <u>2.11(c)(iv</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary contained in this Agreement or any other Credit Document, upon the Administrative Agent's receipt of written notice from the Borrower that it intends, prior to the expiration of the applicable Cure Period (relating to the applicable Fiscal Quarter with respect to which the applicable Financial Covenant violation(s) relate), to effect an equity cure pursuant to this <u>Section</u> <u>9.4</u> (any such notice being irrevocable) and until the expiration of such Cure Period, and *solely* to the extent that no Event of Default exists at such time (other than in respect of a Financial Covenant tested for such Fiscal Quarter), neither the Administrative Agent nor any Lender shall be permitted to (i) accelerate the Obligations, (ii) terminate the Commitments, (iii) impose Default Interest, or (iv) exercise remedies under the Credit Documents (including against the Collateral), in each case of the foregoing <u>clauses (b)(i</u>) through (<u>b)(iv</u>), *solely* as a result of such Event(s) of Default resulting from a violation of any Financial Covenant(s) tested for such Fiscal Quarter. Notwithstanding anything to the contrary in the foregoing, no Lender shall be required to make any Loan, and the Issuing Bank shall *not* be required to issue any Letter of Credit, from and after the last day of the applicable Fiscal Quarter (with respect to which the breach of an applicable Financial Covenant(s) has occurred) until the date on which the applicable Credit Party, Subsidiary or other Regulated Entity shall have received the Cure Proceeds in accordance with this <u>Section</u> <u>9.4</u>.

**Article 10** 

**<u>AGENCY</u>**

Section 10.1 <u>Appointment</u><u> </u><u>and</u><u> </u><u>Authorit</u><u>y</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Lenders and the Issuing Bank hereby irrevocably appoints Regions Bank to act on its behalf as the Administrative Agent hereunder and under the other Credit Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this <u>Article 10</u> are *solely* for the benefit of the Administrative Agent, the Lenders and the Issuing Bank, and no Credit Party, Subsidiary or other Regulated Entity shall have rights as a third party beneficiary of any of such provisions. It is understood and agreed that the use of the term "*agent*" herein or in any other Credit Documents (or any other similar term) with reference to the Administrative Agent is *not* intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Lenders hereby irrevocably appoints, designates and authorizes the Collateral Agent to take such action on its behalf under the provisions of this Agreement and each Collateral Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any Collateral Document, together with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any Collateral Document, the Collateral Agent shall not have any duties or responsibilities, except those expressly set forth herein or therein, nor shall the Collateral Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any Collateral Document or otherwise exist against the Collateral Agent. Without limiting the generality of the foregoing sentence, the use of the term "*agent*" herein and in the Collateral Documents with reference to the Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. The Collateral Agent shall act on behalf of the Lenders with respect to any Collateral and the Collateral Documents, and the Collateral Agent shall have all of the benefits and immunities: (i) provided to the Administrative Agent under the Credit Documents with respect to any acts taken or omissions suffered by the Collateral Agent in connection with any Collateral or the Collateral Documents as fully as if the term "*Administrative Agent*" as used in such Credit Documents included the Collateral Agent with respect to such acts or omissions; and (ii) as additionally provided herein or in the Collateral Documents with respect to the Collateral Agent.

Section 10.2 <u>Rights</u><u> </u><u>as</u> <u>a</u><u> </u><u>Lende</u><u>r</u>. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender, and may exercise the same as though it were *not* the Administrative Agent, and the term "*Lender*" or "*Lenders*" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with, the Borrower, any Subsidiary or other Affiliate of the Borrower or any other Regulated Entity, as if such Person were *not* the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

Section 10.3 <u>Exculpatory</u><u> </u><u>Provisio</u><u>ns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Credit Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall *not* have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Credit Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Credit Documents), <u>provided</u>, <u>that</u>, the Administrative Agent shall *not* be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Credit Document or Applicable Law, including, for the avoidance of doubt, any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall *not*, except as expressly set forth herein and in the other Credit Documents, have any duty to disclose, and shall *not* be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall *not* be liable for any action taken or not taken by it: (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in <u>Section</u> <u>11.4</u> and <u>Section</u> <u>9.2</u>); or (ii) in the absence of its own gross negligence or willful misconduct, as determined by a court of competent jurisdiction by final and non-appealable judgment. The Administrative Agent shall be deemed *not* to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent in writing by the Borrower, a Lender or the Issuing Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall *not* be responsible for or have any duty to ascertain or inquire into:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any statement, warranty or representation made in or in connection with this Agreement or any other Credit Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Credit Document or any other agreement, instrument or document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the satisfaction of any condition set forth in <u>Article 5</u> or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent and any assignor of a Loan or seller of a participation hereunder shall be entitled to rely conclusively on a representation of the assignee Lender or Participant in any document delivered in connection with this Agreement, including, without limitation, the relevant Assignment Agreement or participation agreement, as applicable, that such assignee or purchaser is not a Disqualified Institution. The Administrative Agent shall *not* be responsible or have any liability for, or have any duty to ascertain, inquire into, monitor or enforce, compliance with the provisions hereof relating to Disqualified Institutions. Without limiting the generality of the foregoing, the Administrative Agent shall not (x) be obligated to ascertain, monitor or inquire as to whether any Lender or Participant or prospective Lender or Participant is a Disqualified Institution, or (y) have any liability with respect to or arising out of any assignment or participation of Loans, or disclosure of confidential information, to any Disqualified Institution.

Section 10.4 <u>Reliance by Administrative A</u><u>gent</u>. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the Issuing Bank, the Administrative Agent may presume that such condition is satisfactory to such Lender or the Issuing Bank unless the Administrative Agent shall have received notice to the contrary from such Lender or the Issuing Bank prior to the making of such Loan or the issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower and its Subsidiaries), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

------

Section 10.5 <u>Delegation of Duti</u><u>es</u>. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Credit Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this <u>Section</u> <u>10.5</u> shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

Section 10.6 <u>Resignation</u><u> </u><u>of</u><u> </u><u>Administrative</u><u> </u><u>Age</u><u>nt</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent may at any time give notice of its resignation to the Lenders, the Issuing Bank and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an office in the United States (but which shall not be a Disqualified Institution), or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the "*<u>Resignation Effective Date</u>*"), then the retiring Administrative Agent may (but shall not be obligated to) on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent meeting the qualifications set forth above. Whether or not a successor has been appointed such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Person serving as Administrative Agent is a Defaulting Lender pursuant to <u>clause (d</u>) of the definition thereof, the Required Lenders may, to the extent permitted by Applicable Law by notice in writing to the Borrower and such Person remove such Person as the Administrative Agent and, in consultation with the Borrower, appoint a successor. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days (or such earlier day as shall be agreed by the Required Lenders (the "*<u>Removal Effective Date</u>*")), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With effect from the Resignation Effective Date or the Removal Effective Date (as applicable): (1) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Credit Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders or the Issuing Bank under any of the Credit Documents, the retiring or removed Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed); and (2) except for any indemnity payments owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and the Issuing Bank directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments owed to the retiring or removed Administrative Agent), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Credit Documents (if not already discharged therefrom as provided above in this Section). The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor, unless otherwise agreed between the Borrower and such successor. After the retiring or removed Administrative Agent's resignation or removal hereunder and under the other Credit Documents, the provisions of this <u>Article 10</u> and <u>Section</u> <u>11.2</u> shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.

------

Section 10.7 <u>Non-Reliance</u> <u>on</u><u> </u><u>Administrative</u><u> </u><u>Agent</u><u> </u><u>and</u><u> </u><u>Other</u><u> </u><u>Lender</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Lenders and the Issuing Bank acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each of the Lenders and the Issuing Bank also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Credit Document or any related agreement or any document furnished hereunder or thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Lender hereby represents and warrants that: (i) (A) the Credit Documents set forth the terms of a commercial lending facility, and (B) such Lender is engaged in the making, acquiring or holding of commercial loans in the ordinary course, and is entering into this Agreement as a Lender for the purpose of making, acquiring or holding commercial loans and providing other credit facilities as set forth in this Agreement, as may be applicable to such Lender, and *not*, in any event, for the purpose of purchasing, acquiring or holding any other type of financial instrument or any security; and (ii) such Lender is sophisticated with respect to decisions to make, acquire and/or hold commercial loans and to provide other credit facilities as set forth in this Agreement, as may be applicable to such Lender, and either it, or the Person exercising discretion in making its decision to make, acquire and/or hold such commercial loans, and/or to provide such other credit facilities, as the case may be, is experienced in making, acquiring or holding such commercial loans and/or providing such other credit facilities. Each Lender agrees *not* to assert a claim in contravention of any of the foregoing of this <u>clause (b</u>).

Section 10.8 <u>No Other Duties, et</u><u>c</u>. Anything herein to the contrary notwithstanding, none of the Arrangers, Co-Documentation Agents or Syndication Agent listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Credit Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or the Issuing Bank hereunder.

Section 10.9 <u>Administrative Agent May File Proofs of Clai</u><u>m</u>. In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or Letter of Credit Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, Letter of Credit Obligations and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the Issuing Bank and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the Issuing Bank and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the Issuing Bank and the Administrative Agent under <u>Section</u> <u>2.10</u> and <u>Section</u> <u>11.2</u>) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and the Issuing Bank to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such

------

payments directly to the Lenders and the Issuing Bank, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under <u>Section</u> <u>2.10</u> and <u>Section</u> <u>11.2</u>).

Section 10.10 <u>Collateral</u><u> </u><u>and</u><u> </u><u>Guaranty</u><u> </u><u>Matter</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Lenders (including the Issuing Bank and the Swingline Lender) irrevocably authorize the Administrative Agent and the Collateral Agent, at its option and in its discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to release any Lien on any Property granted to, or held under, any Credit Document securing the Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) upon the Payment in Full of the Obligations under this Agreement and the other Credit Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) that is sold or otherwise disposed of, or to be sold or otherwise disposed of, as part of, or in connection with, any sale or other disposition permitted under the Credit Documents or consented to in accordance with the terms of this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) subject to <u>Section</u> <u>11.4</u>, if approved, authorized or ratified in writing by the Required Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to subordinate any Lien on any Property granted to, or held under, any Credit Document securing the Obligations to the holder of any Lien on such Property that is permitted by <u>Section</u> <u>8.2(m</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to release any Guarantor from its obligations under this Agreement and the other Credit Documents if such Person ceases to be a Guarantor as a result of a transaction permitted under the Credit Documents.

Upon request by the Administrative Agent or the Collateral Agent at any time, the Required Lenders will confirm in writing the Administrative Agent's authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under this Agreement pursuant to this <u>Section</u> <u>10.10</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall *not* be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Administrative Agent's Lien thereon, or any certificate prepared by any Credit Party in connection therewith, nor shall the Administrative Agent be responsible or liable to the Lenders for any failure to monitor or maintain any portion of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Anything contained in any of the Credit Documents to the contrary notwithstanding, each of the Credit Parties, the Administrative Agent, the Collateral Agent and each holder of the Obligations hereby agree that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no holder of the Obligations shall have any right individually to realize upon any of the Collateral or to enforce this Agreement, the Notes or any other Credit Document, it being understood and agreed that all powers, rights and remedies hereunder may be exercised *solely* by the Administrative Agent, on behalf of the holders of the Obligations in accordance with the terms hereof and all powers, rights and remedies under the Collateral Documents may be exercised *solely* by the Collateral Agent; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event of a foreclosure by the Collateral Agent on any of the Collateral pursuant to a public or private sale or other disposition, the Collateral Agent or any Lender may be the purchaser of any or all of such Collateral at any such sale or other disposition, and the Collateral Agent, as agent for and representative of the holders of the Obligations (but *not* any Lender or Lenders in its or their respective individual capacities, unless the Required Lenders shall otherwise agree in writing) shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all, or any portion, of the Collateral sold at any such public sale, to use and apply any of the Obligations as a credit on account of the purchase price for any collateral payable by the Collateral Agent at such sale or other disposition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Secured Swap Agreement or Secured Treasury Management Agreement will create (or be deemed to create) in favor of any Qualifying Swap Provider or any Qualifying Treasury Management Bank, respectively that is a party thereto any rights in connection with the management or release of any Collateral or of the obligations of the Borrower or any other Credit Party under the Credit Documents except as expressly provided herein or in the other Credit Documents. By accepting the benefits of the Collateral, each such Qualifying Swap Provider and Qualifying Treasury Management Bank shall be deemed to have appointed the Collateral Agent as its agent and agreed to be bound by the Credit Documents as a holder of the Obligations, subject to the limitations set forth in this <u>clause (d</u>). Furthermore, it is understood and agreed that the Qualifying Swap Provider and Qualifying Treasury Management Banks, in their capacity as such, shall *not* have any right to notice of any action or to consent to, direct or object to any action hereunder or under any of the other Credit Documents or otherwise in respect of the Collateral (including the release or impairment of any Collateral, or to any notice of or consent to any amendment, waiver or modification of the provisions hereof or of the other Credit Documents) other than in its capacity as a Lender and, in any case, only as expressly provided herein.

Section 10.11 <u>Erroneous</u><u> </u><u>Payment</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Administrative Agent notifies a Lender, the Issuing Bank, any other holder(s) of the Obligations or any other Person(s) who has received funds on behalf of a Lender, the Issuing Bank or any other holder(s) of the Obligations (any such Lender, Issuing Bank, other holder(s) of the Obligations or other recipient(s), a "*<u>Payment Recipient</u>*") that the Administrative Agent has determined in its sole discretion (whether or not after its receipt of any notice delivered pursuant to <u>clause (b</u>) below) that any funds received by such Payment Recipient from the Administrative Agent, or any of its Affiliates, were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient on its behalf) (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "*<u>Erroneous Payment</u>*") and demands the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall, at all times, remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in *no* event *later than* two (2) Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from, and including, the date on which such Erroneous Payment (or portion thereof) was received by such Payment Recipient to, and including, the date on which such amount is repaid to the Administrative Agent in same day funds at the *greater of* the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice delivered from the Administrative Agent to any Payment Recipient pursuant to this <u>clause (a</u>) shall be conclusive and binding, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting anything in the immediately foregoing <u>clause (a</u>), each Lender, the Issuing Bank, each other holder(s) of the Obligations party hereto and each other Payment Recipient party hereto hereby further agrees that, if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (I) that is in a different amount than, or on a different date from, that specified in a

------

notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (II) that was *not* preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (III) that such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient(s) otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part), in each case of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) in any such case of the immediately preceding <u>clauses (b)(I</u>) or (b)(<u>II</u>), an error shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary), or (B) in any such case of the immediately preceding <u>clause (b)(III</u>), an error has been made, in each case of the foregoing <u>clauses (b)(i)(A</u>) and (<u>b)(i)(B</u>), with respect to such payment, prepayment or repayment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient(s) shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in any event, within one (1) Business Day of its obtaining knowledge of such error) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this <u>clause</u> <u>(b</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Lender, the Issuing Bank, each other holder of the Obligations party hereto and each other Payment Recipient party hereto hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s) under any Credit Document, or otherwise payable or distributable by the Administrative Agent to such Lender, the Issuing Bank, such other holder(s) of the Obligations and/or such other Payment Recipient(s) from any source, against any amount due to the Administrative Agent under immediately preceding <u>clause (a</u>) or under the indemnification provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that an Erroneous Payment (or portion thereof) is *not* recovered by the Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance with foregoing <u>clause (a</u>), from any Lender, the Issuing Bank, any other holder(s) of the Obligations or any other Payment Recipient(s) that has received such Erroneous Payment (or portion thereof) (and/or from any other recipient who received such Erroneous Payment (or portion thereof) on the respective behalf of any of the foregoing) (such unrecovered amount, an "*<u>Erroneous Payment Return Deficiency</u>*"), upon the Administrative Agent's notice to such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, at any time: (i) such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, shall be deemed to have assigned (to the extent it has any such Loans) its Loans (but *not* its Commitments) of the relevant Class with respect to which such Erroneous Payment was made (the "*<u>Erroneous Payment Impacted Class</u>*") in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of such Loans (but *not* Commitments) of the Erroneous Payment Impacted Class, the "*<u>Erroneous</u> <u>Payment Deficiency Assignment</u>*") at par *plus* any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance), and such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, is hereby (together with the Borrower) deemed to have executed and delivered an Assignment Agreement (or, to the extent applicable, an agreement incorporating an Assignment Agreement by reference pursuant to Debtdomain, Intralinks, Syndtrak, or a substantially similar electronic transmission system as to which the Administrative Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and <u>further</u>, such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, shall deliver any Note(s) evidencing any such Loans to the Administrative Agent; (ii) the Administrative Agent, as the assignee Lender, shall be deemed to acquire the Erroneous Payment Deficiency Assignment; (iii) upon such deemed acquisition, the Administrative Agent, as the assignee Lender, shall become a Lender, the Issuing Bank or such other type of holder of the Obligations, as the case may be, hereunder with respect to such Erroneous Payment Deficiency Assignment, and <u>further</u>, the assigning Lender, the Issuing Bank or such other

------

holder(s) of the Obligations shall cease to be a Lender, the Issuing Bank or such other holder of the Obligations, as the case may be, hereunder with respect to such Erroneous Payment Deficiency Assignment, but *excluding*, for the avoidance of doubt, such Person's obligations under the indemnification provisions of this Agreement and its applicable Commitments, which shall survive as to such assigning Lender, Issuing Bank or other holder(s) of the Obligations; and (iv) the Administrative Agent may reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. The Administrative Agent may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and, upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender, the Issuing Bank, the other applicable holder(s) of the Obligations or the other such applicable Payment Recipient(s), as the case may be, shall be *reduced* by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be (and/or against any recipient that receives funds on the respective behalf of any of the foregoing). For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender or the Issuing Bank, and such Commitments shall remain available in accordance with the terms of this Agreement. In addition, each party hereto agrees that, except to the extent that the Administrative Agent has sold a Loan (or portion thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and irrespective of whether the Administrative Agent may be equitably subrogated, the Administrative Agent shall be contractually subrogated to all of the rights and interests of the applicable Lender, the Issuing Bank or any other applicable holder(s) of the Obligations under the Credit Documents with respect to each Erroneous Payment Return Deficiency (the "*<u>Erroneous Payment Subrogation Rights</u>*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each of the parties hereto agree that an Erroneous Payment shall *not* pay, prepay, repay, discharge, or otherwise satisfy any Obligations owed by the Borrower or any other Credit Party, except, in each case, to the extent that such Erroneous Payment is, and *solely* with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrower or any other Credit Party for the purpose of making such Erroneous Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent permitted by Applicable Law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and each party hereto, to the extent constituting a Payment Recipient, hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including, without limitation, waiver of any defense based on "*discharge for value*" or any similar doctrine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each party's respective obligations, agreements and waivers under this <u>Section</u> <u>10.11</u> shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, any Lender, the Issuing Bank or any other holder(s) of the Obligations, the termination of any or all of the Commitments, and/or the repayment, satisfaction or discharge of any or all of the Obligations (or any portion thereof) under any Credit Document.

**Article 11<u> </u>**

**<u>MISCELLANEOUS</u>** 

Section 11.1 <u>Notices;</u><u> </u><u>Effectiveness;</u><u> </u><u>Electronic</u><u> </u><u>Communicati</u><u>ons</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices Generally</u>. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in <u>clause (b</u>) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier or electronic mail as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Administrative Agent, the Borrower or any other Credit Party, to the address, telecopier number, electronic mail address or telephone number specified in <u>Appendix B</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to any Lender, the Issuing Bank or the Swingline Lender, to the address, telecopier number, electronic mail address or telephone number in its Administrative Questionnaire on file with the Administrative Agent.

Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by telecopier shall be deemed to have been given when sent (except that, if *not* given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices and other communications delivered through electronic communications to the extent provided in <u>clause (b</u>) below, shall be effective as provided in <u>clause (b</u>) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Electronic Communications</u>. Notices and other communications to the Lenders and the Issuing Bank hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, <u>provided</u>, <u>that</u>, the foregoing shall *not* apply to notices to any Lender or the Issuing Bank pursuant to <u>Article 2</u> if such Lender or the Issuing Bank, as applicable, has notified the Administrative Agent and the Borrower that it is incapable of receiving notices under such Article by electronic communication. The Administrative Agent or any Credit Party may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, <u>provided</u>, <u>that</u>, approval of such procedures may be limited to particular notices or communications.

Unless the Administrative Agent otherwise prescribes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "*return receipt requested*" function, as available, return e-mail or other written acknowledgement); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing <u>clause (b)(i</u>) of notification that such notice or communication is available and identifying the website address therefor,

<u>provided</u>, <u>that</u>, with respect to <u>clauses (b)(i</u>) and (<u>b)(ii</u>) above, if such notice or other communication is *not* sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Change of Address, Etc</u>. Any party hereto may change its address or telecopier number for notices and other communications hereunder by notice to the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Platform</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Credit Party agrees that the Administrative Agent may, but shall *not* be obligated to, make the Communications (as defined below) available to the Issuing Bank and the other Lenders by posting the Communications on Debtdomain, Intralinks, Syndtrak or a substantially similar electronic transmission system (the "*<u>Platform</u>*").

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Platform is provided "*as is*" and "*as available*". The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or the Platform. In no event shall the Administrative Agent or any of its Related Parties (collectively, the "*<u>Agent Parties</u>*") have any liability to the Borrower or the other Credit Parties, any Lender or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower's, any other Credit Party's or the Administrative Agent's transmission of communications through the Platform. "*<u>Communications</u>*" means, collectively, any notice, demand, communication, information, document or other material provided by, or on behalf of, any Credit Party pursuant to any Credit Document or the transactions contemplated therein which is distributed to the Administrative Agent, any Lender or the Issuing Bank by means of electronic communications pursuant to this Section, including through the Platform.

Section 11.2 <u>Expenses;</u> <u>Indemnity;</u><u> </u><u>Damage</u><u> </u><u>Waiv</u><u>er</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Costs and Expenses</u>. The Credit Parties shall pay, on a joint and several basis, each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all reasonable and documented costs and out-of-pocket expenses incurred by the Administrative Agent and its Affiliates (which, in the case of legal counsel, shall be limited to the reasonable fees, charges and disbursements of one primary counsel for the Administrative Agent, the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, one local counsel to the Administrative Agent, the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) if reasonably deemed necessary by the Administrative Agent, and, *solely* in the case of an actual or perceived conflict of interest, one additional primary counsel and, if reasonably deemed necessary by the Administrative Agent (or the relevant Lender or Lenders, as applicable), one additional counsel in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) for each group of such affected Persons similarly situated, taken as a whole) in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Credit Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all reasonable and documented costs and out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all reasonable and documented costs and out-of-pocket expenses incurred by the Administrative Agent, any Lender or the Issuing Bank (which, in the case of legal counsel, shall be limited to the reasonable fees, charges and disbursements of one primary counsel for the Administrative Agent, the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, one local counsel to the Administrative Agent, the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) if reasonably deemed necessary by the Administrative Agent, and, *solely* in the case of an actual or perceived conflict of interest, one additional primary counsel and, if reasonably deemed necessary by the Administrative Agent (or the relevant Lender or Lenders, as applicable), one additional counsel in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) for each group of such affected Persons similarly situated, taken as a whole) in connection with the enforcement or protection of its rights:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in connection with this Agreement and the other Credit Documents, including its rights under this Section; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification by the Credit Parties</u>. The Credit Parties shall indemnify, on a joint and several basis, the Administrative Agent (and any sub-agent thereof), the Collateral Agent (and any sub-agent thereof), each Lender and the Issuing Bank, and each Related Party of any of the foregoing Persons (each such Person being called an "*<u>Indemnitee</u>*") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (which, in the case of legal counsel, shall be limited to the reasonable fees, charges and disbursements of one primary counsel for the Indemnitees, taken as a whole, and of one special and local counsel to the Indemnitees, taken as a whole, in each applicable jurisdiction retained by the Administrative Agent and/or the Collateral Agent, and, in the event of any actual or potential conflict of interest, one additional primary, special and local counsel, as applicable, for each Indemnitee subject to a conflict), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Borrower or any other Credit Party) other than such Indemnitee or its Related Parties arising out of, in connection with, or as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the execution or delivery of this Agreement, any other Credit Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by any Credit Party, any Subsidiary or any other Regulated Entity, or any Environmental Liability related in any way to any Credit Party, any Subsidiary or any other Regulated Entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing <u>sub-clauses (b)(i</u>), (<u>b)(ii</u>), or (<u>b)(iii</u>), whether based on contract, tort or any other theory, whether brought by a third party or by any Credit Party, any Subsidiary or any other Regulated Entity, and regardless of whether any Indemnitee is a party thereto;

<u>provided</u>, <u>that</u>, such indemnity shall *not*, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses: (x) are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee; or (y) result from a claim brought by the Borrower or any Credit Party against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder or under any other Credit Document, if the Borrower or such Credit Party has obtained a final and non-appealable judgment in its favor on such claim as determined by a court of competent jurisdiction. This <u>clause (b</u>) shall *not* apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Reimbursement by Lenders</u>. To the extent that the Credit Parties for any reason fail to indefeasibly pay any amount required under <u>clauses (a</u>) or (<u>b</u>) above to be paid by it to the Administrative Agent (or any sub-agent thereof), the Collateral Agent (or any sub-agent thereof), the Issuing Bank or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the Collateral Agent (or any such sub-agent), the Issuing Bank or such Related Party, as the case may be, such Lender's *pro rata* share (in each case, determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount, <u>provided</u>, <u>that</u>, the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or the Issuing Bank in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) or the Issuing Bank in connection with such capacity. The obligations of the Lenders under this <u>clause (c</u>) are subject to the provisions of this Agreement that provide that their obligations are several in nature, and not joint and several.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Waiver of Consequential Damages, Etc</u>. To the fullest extent permitted by Applicable Law, none of the Credit Parties shall assert, and each hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Credit Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof. No Indemnitee referred to in <u>clause (b</u>) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Credit Documents or the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payments</u>. All amounts due under this Section shall be payable promptly, but in any event within ten (10) Business Days after written demand therefor (including delivery of copies of applicable invoices, if any).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Survival</u>. The provisions of this Section shall survive resignation or replacement of the Administrative Agent, Collateral Agent, the Issuing Bank, the Swingline Lender or any Lender, termination of the commitments hereunder and repayment, satisfaction and discharge of the loans and obligations hereunder.

Section 11.3 <u>Set-Of</u><u>f</u>. If an Event of Default shall have occurred and be continuing, each Lender, the Issuing Bank, and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, the Issuing Bank or any such Affiliate to or for the credit or the account of the Borrower or any other Credit Party against any and all of the obligations of the Borrower or such Credit Party now or hereafter existing under this Agreement or any other Credit Document to such Lender, the Issuing Bank or their respective Affiliates, irrespective of whether or not such Lender, the Issuing Bank or such Affiliate shall have made any demand under this Agreement or any other Credit Document and although such obligations of the Borrower or such Credit Party may be contingent or un-matured or are owed to a branch, office or Affiliate of such Lender or the Issuing Bank different from the branch or office holding such deposit or obligated on such indebtedness; <u>provided</u>, <u>that</u>, in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of <u>Section</u> <u>2.16</u> and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing Bank, and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender, the Issuing Bank and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, the Issuing Bank or their respective Affiliates may have. Each of the Lenders and the Issuing Bank agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application, <u>provided</u>, <u>that</u>, the failure to give such notice shall *not* affect the validity of such setoff and application.

------

Section 11.4 <u>Amendments</u><u> </u><u>and</u><u> </u><u>Waiver</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Required Lenders' Consent</u>. Subject to <u>clauses (b</u>) and (<u>c</u>) below, no amendment, modification, termination or waiver of any provision of the Credit Documents, or consent to any departure by any Credit Party therefrom, shall in any event be effective without the written concurrence of the Administrative Agent and the Required Lenders, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each of the Fee Letter and any Auto Borrow Agreement may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitments, Loans and/or Letter of Credit Obligations of such Lender may *not* be increased or extended without the consent of such Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each Lender is entitled to vote as such Lender sees fit on any bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the provisions of Section 1126(c) of the Bankruptcy Code of the United States supersedes the unanimous consent provisions set forth herein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Required Lenders shall determine whether or not to allow any Credit Party to use cash collateral in the context of a bankruptcy or insolvency proceeding and such determination shall be binding on all of the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Affected Lenders' Consent</u>. Without the written consent of each Lender (other than a Defaulting Lender except as provided in <u>clause (a)(ii</u>) above) that would be affected thereby, but subject to <u>Section</u> <u>3.1(a</u>), no amendment, modification, termination, or consent shall be effective if the effect thereof would:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) extend the Revolving Commitment Termination Date, the DDTL Commitment Termination Date, or any Maturity Date, or otherwise postpone the scheduled date for the termination or reduction of any Commitment of a Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) waive, reduce the amount of, or postpone or extend the time for payment of, any scheduled (including at maturity) payment or repayment (other than any mandatory prepayment) in respect of any Loan, Letter of Credit or other Obligation, whether of principal, interest, fees, reimbursement obligations or other amounts, or otherwise reduce the rate of interest applicable thereto; <u>provided</u>, <u>that</u>, only the consent of the Required Lenders shall be necessary to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) waive any imposition of the Default Rate pursuant to <u>Section</u> <u>2.9</u>, amend the definition of "*Default Rate*" in <u>Section</u> <u>1.1</u>, or otherwise waive any obligation of the Borrower to pay interest at the Default Rate; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) amend any Financial Covenant (or any defined term used therein) even if the effect of such amendment would be to reduce the rate of interest on any Loan or to reduce any fee payable hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) change the provisions of <u>Section</u> <u>2.12</u>, <u>Section</u> <u>2.14</u> or <u>Section</u> <u>9.3</u>, or otherwise alter in any manner the *pro rata* sharing of payments, *pro rata* reduction of Commitments and/or the order of application of funds or proceeds required thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) extend the stated expiration date of any Letter of Credit beyond the Revolving Commitment Termination Date;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amend, modify, terminate, or waive any provision of this <u>clause (b</u>), any provision of the below <u>clause (c</u>), or any other provision of this Agreement that expressly provides that the consent of all Lenders, or of all affected Lenders, is required to amend, modify, terminate, or waive such provision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) amend the definition of "*Required Lenders*" in <u>Section</u> <u>1.1</u>, or otherwise change the percentage of the Total Credit Exposures (or any component thereof) of all of the Lenders that is required for the Lenders, or any of them, to take any action hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) (A) release all, or substantially all, of the Guarantors from their respective obligations hereunder, or (B) limit the liability of such Guarantors under <u>Article 4</u> or under any other guaranty agreement Guaranteeing the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) release all, or substantially all, of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) consent to the assignment or transfer by the Borrower of any of its rights and obligations under any Credit Document (except pursuant to a transaction permitted hereunder);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) subordinate (or agree to subordinate), in whole or in part, (A) any of the Liens in favor of the Collateral Agent, for the benefit of the holders of the Obligations, securing any or all of the Obligations to any Liens securing any Indebtedness, or (B) any of the Obligations in contractual right of payment to any Indebtedness, in each case of the foregoing <u>clauses (b)(x)(A</u>) and (<u>b)(x)(B</u>), other than as expressly permitted or contemplated by this Agreement and the other Credit Documents as each are in effect on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Consents</u>. No amendment, modification, termination or waiver of any provision of the Credit Documents, or consent to any departure by the Borrower or any other Credit Party therefrom, shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) increase any Commitment of any Lender over the amount thereof then in effect without the consent of such Lender; <u>provided</u>, <u>that</u>, no amendment, modification or waiver of any condition precedent, covenant, Default or Event of Default shall constitute an increase in any Commitment of any Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) amend, modify, terminate or waive any provision hereof relating to the Swingline Sublimit or the Swingline Loans without the consent of the Swingline Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) amend, modify, terminate or waive any obligation of Lenders relating to the purchase of participations in Letters of Credit as provided in <u>Section</u> <u>2.3(e</u>) without the written consent of the Administrative Agent and of the Issuing Bank; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) amend, modify, terminate or waive any provision of this <u>Article 11</u> as the same applies to the Administrative Agent, or any other provision hereof as the same applies to the rights or obligations of the Administrative Agent, in each case, without the consent of the Administrative Agent.

Notwithstanding any of the foregoing to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) this Agreement may be amended: (I) pursuant to an Incremental Facility Agreement effected in accordance with <u>Section</u> <u>2.1(e</u>); (II) to effect Conforming Changes in accordance with <u>Section</u> <u>2.7(i</u>); and (III) in connection with the implementation of a Benchmark Replacement and/or any related Conforming Changes, all as provided in <u>Section</u> <u>3.1(g</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Borrower and the other Credit Parties shall *not* be required for any amendment, modification or waiver of the provisions of <u>Article 10</u> (other than the provisions of <u>Section</u> <u>10.6</u> or <u>Section</u> <u>10.10</u>), so long as such amendment is *not* adverse to the interests of the Borrower and the other Credit Parties;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the Credit Parties, the Administrative Agent and/or the Collateral Agent, without the consent of any Lender, may enter into any amendment, modification or waiver of any Credit Document, or enter into any new agreement or instrument, to effect the granting, perfection, protection, expansion or enhancement of any security interest in any Collateral or additional property to become Collateral for the benefit of the holders of the Obligations, or as required by local law to give effect to, or protect any security interest for the benefit of the holders of the Obligations, in any property or so that the security interests therein comply with applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the Administrative Agent, the Collateral Agent, and the Borrower may amend, modify or supplement this Agreement or any other Credit Document to cure or correct administrative or technical errors or omissions or any ambiguity, mistake, defect, inconsistency or obvious error, or to make any necessary or desirable administrative or technical change, and such amendment shall become effective without any further consent of any other party to such Credit Document, so long as such amendment, modification or supplement does *not* adversely affect the rights of any Lender or any other holder of the Obligations in any material respect, if the same is *not* objected to in writing by the Required Lenders within five (5) Business Days following receipt of notice thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) this Agreement may be amended and restated without the consent of any Lender (but with the consent of the Borrower and the Administrative Agent) if, upon giving effect to such amendment and restatement, such Lender shall no longer be a party to this Agreement (as so amended and restated), the Commitments of such Lender shall have terminated, such Lender shall have no other commitment or other obligation hereunder, and shall have been paid in full all principal, interest and other amounts owing to it, or accrued for its account, under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Execution of Amendments, etc</u>. The Administrative Agent may, but shall have no obligation to, with the concurrence of any Lender, execute amendments, modifications, waivers or consents on behalf of such Lender. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on any Credit Party in any case shall entitle any Credit Party to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver or consent effected in accordance with this <u>Section</u> <u>11.4</u> shall be binding upon the Administrative Agent, each Lender at the time outstanding, each future Lender and, if signed by the Borrower, on the Borrower.

Section 11.5 <u>Successors</u><u> </u><u>and</u><u> </u><u>Assi</u><u>gns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors and Assigns Generally</u>. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Credit Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to an assignee in accordance with the provisions of <u>clause (b</u>) below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) by way of participation in accordance with the provisions of <u>clause (d</u>) below; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) by way of pledge or assignment of a security interest subject to the restrictions of <u>clause</u> (e) below (and any other attempted assignment or transfer by any party hereto shall be null and void).

------

Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in <u>clause (d</u>) below and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignments by Lenders</u>. Any Lender may, at any time, assign to one or more assignees (other than to any Disqualified Institution) all, or a portion, of its rights and obligations under this Agreement (including all, or a portion, of its Commitments, Loans and obligations hereunder at the time owing to it), <u>provided</u>, <u>that</u>, any such assignment shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Minimum Amounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in the case of an assignment of the entire remaining amount of the assigning Lender's Commitments and Loans at the time owing to it of the relevant Class or contemporaneous assignments to Approved Funds (that equal *at least* the amounts specified in <u>clause (b)(i)(B</u>) below in the aggregate) or, in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in any case *not* described in <u>clause (b)(i)(A</u>) above, the aggregate amount of the Commitment(s), and/or the aggregate outstanding principal balance of the Loan(s), of the relevant Class of the assigning Lender subject to such assignment (determined as of the date the Assignment Agreement evidencing such assignment tis delivered to the Administrative Agent or, if a "*Trade Date*" is specified in such Assignment Agreement, as of the Trade Date) shall *not* be *less than* (I) Two Million Dollars ($2,000,000), in the case of any assignment of Revolving Loans or Revolving Commitments, and (II) Five Million Dollars ($5,000,000), in the case of any assignment of Term Loans or Term Loan Commitments, unless (in any such case of the foregoing <u>clauses (b)(i)(B)(I</u>) or (<u>b)(i)(B)(II</u>)) each of the Administrative Agent and, so long as no Event of Default shall have occurred and is continuing, the Borrower otherwise consents (each such consent *not* to be unreasonably withheld, conditioned or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Proportionate Amounts</u>. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Commitments and Loans assigned, except that this <u>clause (b)(ii</u>) shall *not* prohibit any Lender from assigning all, or a portion, of its rights and obligations on a non-*pro rata* basis as between its Revolving Commitment and/or Revolving Loans, on the one hand, and its Commitments in respect of Term Loans and/or its Term Loans, on the other the hand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Required Consents</u>. No consent shall be required for any assignment except to the extent required by <u>clause (b)(i)(B</u>) above and, in addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required, unless (I) an Event of Default shall have occurred and is continuing at the time of such assignment, or (II) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; <u>provided</u>, <u>that</u>, the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Administrative Agent (such consent *not* to be unreasonably withheld or delayed) shall be required for assignments in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) commitments under revolving credit facilities and unfunded commitments under term loan facilities if such assignment is to a Person that is *not* a Lender with a commitment in respect of such facility, an Affiliate of such Lender or an Approved Fund with respect to such Lender; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) a funded Term Loan to a Person who is *not* a Lender, an Affiliate of a Lender or an Approved Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the consent of the Issuing Bank (such consent *not* to be unreasonably withheld or delayed) shall be required for any assignment in respect of any Revolving Commitment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the consent of the Swingline Lender (such consent *not* to be unreasonably withheld or delayed) shall be required for any assignment in respect of any Revolving Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Assignment Agreement</u>. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment Agreement, together with a processing and recordation fee in the amount of Three Thousand Five-Hundred Dollars ($3,500), unless waived, in whole or in part by the Administrative Agent in its discretion. The assignee, if it is *not* a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Assignment to Certain Persons</u>. No such assignment shall be made to: (A) any Credit Party, any Subsidiary, any other Regulated Entity, or any Affiliate of any of the foregoing; (B) any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this <u>clause (b)(v)(B</u>); or (C) a Disqualified Institution, <u>provided</u>, <u>that</u>, any assignment made to a Disqualified Institution in violation of this <u>clause (b)(v)(C</u>) shall *not* be void, but the provisions of <u>clause (f)(ii</u>) below may apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>No Assignment to Natural Persons</u>. No such assignment shall be made to a natural person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <u>Certain Additional Payments</u>. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or sub-participations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable *pro rata* share of Loans previously requested but *not* funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to: (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent, the Issuing Bank, the Swingline Lender and each other Lender hereunder (and interest accrued thereon); and (y) acquire (and fund as appropriate) its full *pro rata* share of all Loans and participations in Letters of Credit and Swingline Loans in accordance with its Revolving Commitment Percentage. Notwithstanding anything to the contrary in the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under Applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to <u>clause (c</u>) below, from and after the effective date specified in each Assignment Agreement, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment Agreement, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment Agreement, be released from its obligations under this Agreement (and, in the case of an Assignment Agreement covering all of the assigning Lender's rights and obligations

------

under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of <u>Section</u> <u>2.16</u>, <u>Section</u> <u>2.17</u> and <u>Section</u> <u>11.2</u> with respect to facts and circumstances occurring prior to the effective date of such assignment; <u>provided</u>, <u>that</u>, except to the extent expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender. The Borrower will execute and deliver on request, at its own expense, a Note to the assignee evidencing the interests taken by way of assignment hereunder. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does *not* comply with this subsection (other than an assignment or transfer to a Disqualified Institution) shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with <u>clause (d</u>) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Register</u>. The Administrative Agent, acting *solely* for this purpose as an agent of the Borrower, shall maintain at one of its offices in the United States, a copy of each Assignment Agreement delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans and Obligations owing to, each Lender pursuant to the terms hereof from time to time (the "*<u>Register</u>*"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Participations</u>. Any Lender may at any time, without the consent of, or notice to, any Credit Party or the Administrative Agent, sell participations to any Person (other than a natural Person, a Credit Party, a Subsidiary, another Regulated Entity, another Affiliate of any of the foregoing, or a Disqualified Institution) (each, a "*<u>Participant</u>*") in all, or a portion, of such Lender's rights and/or obligations under this Agreement (including all, or a portion, of its Commitment and/or the Loans owing to it); <u>provided</u>, <u>that</u>, (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain *solely* responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower, the Administrative Agent, the Issuing Bank and Lenders shall continue to deal *solely* and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under <u>Section</u> <u>11.2(c</u>) with respect to any payments made by such Lender to its Participant(s).

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u>, <u>that</u>, such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in <u>clauses (b</u>) or (<u>c</u>) of <u>Section</u> <u>11.4</u> that affects such Participant; <u>provided</u>, <u>further</u>, <u>that</u>, any such agreement or instrument shall require the applicable Participant to represent and warrant for the benefit of the Borrower and such Lender that such Participant is *not* a Disqualified Institution. The Borrower agrees that each Participant shall be entitled to the benefits of <u>Section</u> <u>3.2</u>, <u>Section</u> <u>3.1</u> and <u>Section</u> <u>3.3</u> (subject to the requirements and limitations therein, including the requirements under <u>Section</u> <u>3.3(f</u>) (it being understood that the documentation required under <u>Section</u> <u>3.3(f</u>) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to <u>clause (b</u>) above; <u>provided</u>, <u>that</u>, such Participant (A) agrees to be subject to the provisions of <u>Section</u> <u>2.17</u> and <u>Section</u> <u>3.4</u> as if it were an assignee under <u>clause (b</u>) below, and (B) shall *not* be entitled to receive any greater payment under <u>Section</u> <u>3.2</u> or <u>Section</u> <u>3.3</u> with respect to any participation than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower's request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of <u>Section</u> <u>2.17</u> with respect to any Participant. To the extent permitted by Applicable Law, each Participant also shall be entitled to the benefits of <u>Section</u> <u>11.3</u> as though it were a Lender; <u>provided</u>, <u>that</u>, such Participant agrees to be subject to <u>Section</u> <u>2.14</u> as though it were a Lender. Each Lender that sells a participation

------

shall, acting *solely* for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Credit Documents (the "*<u>Participant Register</u>*"); <u>provided</u>, <u>that</u>, no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Credit Document) to any Person, except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103–1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certain Pledges</u>. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement, or any promissory notes evidencing its interests hereunder, to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this <u>Section</u> <u>11.5</u> shall *not* apply to any such pledge or assignment of a security interest; <u>provided</u>, <u>that</u>, no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Disqualified Institution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No assignment or participation shall be made to any Person that was a Disqualified Institution as of the date on which the assigning Lender entered into an Assignment Agreement or participation agreement, as applicable, with such Person (unless the Borrower has consented to such assignment to such entity, in which case, such entity will not be considered a Disqualified Institution for the purpose of such assignment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If any assignment or participation is made to any Disqualified Institution without the Borrower's prior written consent in violation of <u>clause (f)(i</u>) above, the Borrower may, at its sole expense and effort, upon notice to the applicable Disqualified Institution, (A) terminate any Revolving Commitment of such Disqualified Institution and repay all Obligations of the Borrower owing to such Disqualified Institution in connection with such Revolving Commitment, and (B) in the case of an outstanding portion of any Term Loan held by such Disqualified Institution, prepay or purchase such portion of the Term Loans, in each case, *plus* accrued interest, fees and other amounts payable to such Disqualified Institution hereunder; <u>provided</u>, <u>that</u>, the Borrower may not use the proceeds of any Revolving Loans to repay outstanding Obligations owing to a Disqualified Institution pursuant to the foregoing <u>clauses (f)(ii)(A</u>) and (<u>f)(ii)(B</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary herein, Disqualified Institutions (x) will *not* have the right to receive information, reports or other materials provided to the Lenders by the Borrower, the Administrative Agent or any other Lender, attend or participate in meetings attended by the Lenders and the Administrative Agent or access any electronic site established for the Lenders or confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders, and (y) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) under, this Agreement or any other Credit Document, each Competitor will be deemed to have consented in the same proportion as the Lenders that are not Disqualified Institutions consented to such matter. The Administrative Agent shall have the right, and the Borrower hereby expressly authorizes the Administrative Agent to post the Disqualified Institution List on the Platform, including the portion of the Platform that is designated for "public side" Lenders and/or provide the Disqualified Institution List to each Lender requesting the same.

------

Section 11.6 <u>Independence of Covenant</u><u>s</u>. All covenants hereunder shall be given independent effect so that, if a particular action or condition is *not* permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

Section 11.7 <u>Survival</u><u> </u><u>of</u><u> </u><u>Representations,</u><u> </u><u>Warranties</u><u> </u><u>and</u><u> </u><u>Agreement</u><u>s</u>. All representations, warranties and agreements made herein shall survive the execution and delivery hereof and the making of any Credit Extension. Notwithstanding anything herein or implied by law to the contrary, the agreements of each Credit Party set forth in <u>Section</u> <u>3.1(c</u>), <u>Section</u> <u>3.2</u>, <u>Section</u> <u>3.3</u>, <u>Section</u> <u>11.2</u>, <u>Section</u> <u>11.3</u>, and <u>Section</u> <u>11.10</u>, and the agreements of the Lenders and the Agents set forth in <u>Section</u> <u>2.14</u>, <u>Section</u> <u>10.3</u> and <u>Section</u> <u>11.2(c</u>), shall survive the payment of the Loans, the cancellation, expiration or cash collateralization of the Letters of Credit, and the termination hereof.

Section 11.8 <u>No Waiver; Remedies Cumulativ</u><u>e</u>. No failure or delay on the part of the Administrative Agent or any Lender in the exercise of any power, right or privilege hereunder or under any other Credit Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other power, right or privilege. The rights, powers and remedies given to the Administrative Agent and each Lender hereby are cumulative and shall be in addition to and independent of all rights, powers and remedies existing by virtue of any statute or rule of law or in any of the other Credit Documents, any Swap Agreements or any Treasury Management Agreements. Any forbearance or failure to exercise, and any delay in exercising, any right, power or remedy hereunder shall not impair any such right, power or remedy or be construed to be a waiver thereof, nor shall it preclude the further exercise of any such right, power or remedy.

Section 11.9 <u>Marshalling;</u><u> </u><u>Payments</u><u> </u><u>Set</u><u> </u><u>Asi</u><u>de</u>. Neither the Administrative Agent nor any Lender shall be under any obligation to marshal any assets in favor of any Credit Party or any other Person or against or in payment of any or all of the Obligations. To the extent that any Credit Party makes a payment or payments to the Administrative Agent, the Issuing Bank, the Swingline Lender or the Lenders (or to the Administrative Agent, on behalf of Lenders), or the Administrative Agent, the Collateral Agent, the Issuing Bank or the Lenders enforce any security interests or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any Debtor Relief Law, any other state or federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred.

Section 11.10 <u>Severabilit</u><u>y</u>. In case any provision in or obligation hereunder or any Note or other Credit Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

Section 11.11 <u>Obligations Several; Independent Nature of Lenders</u><u>'</u> <u>Right</u><u>s</u>. The obligations of the Lenders hereunder are several and no Lender shall be responsible for the obligations or Revolving Commitment of any other Lender hereunder. Nothing contained herein or in any other Credit Document, and no action taken by the Lenders pursuant hereto or thereto, shall be deemed to constitute the Lenders as a partnership, an association, a joint venture or any other kind of entity. The amounts payable at any time hereunder to each Lender shall be a separate and independent debt, and, subject to <u>Section</u> <u>10.10(c</u>), each Lender shall be entitled to protect and enforce its rights arising under this Agreement and the other Credit Documents and it shall not be necessary for any other Lender to be joined as an additional party in any proceeding for such purpose.

------

Section 11.12 <u>Heading</u><u>s</u>. Section headings herein are included herein for convenience of reference only and shall *not* constitute a part hereof for any other purpose or be given any substantive effect.

Section 11.13 <u>Applicable</u><u> </u><u>Law</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law</u>. This Agreement and the other Credit Documents and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of, or relating to this Agreement or any other Credit Document (except, as to any other Credit Document, as expressly set forth therein), and the transactions contemplated hereby and thereby, shall be construed in accordance with, and be governed by, the law of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Submission to Jurisdiction</u>. Each party hereto irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the State of New York sitting in the Borough of Manhattan and of the United States District Court of the Southern District, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Credit Document, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by Applicable Law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or in any other Credit Document shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Agreement or any other Credit Document against any Credit Party or its properties in the courts of any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver of Venue</u>. Each party hereto irrevocably and unconditionally waives, to the fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Credit Document in any court referred to in <u>clause (b</u>) above. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Service of Process</u>. Each party hereto irrevocably consents to service of process in the manner provided for notices in <u>Section</u> <u>11.1</u>. Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by Applicable Law.

Section 11.14 <u>WAIVER OF JURY TRIA</u><u>L</u>. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO: (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER; AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

Section 11.15 <u>Confidentialit</u><u>y</u>. Each of the Administrative Agent, the Collateral Agent, the Issuing Bank and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to its Affiliates and to its Related Parties (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent required or requested by any regulatory agency or authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to the extent required by Applicable Laws or regulations or by any subpoena or similar legal process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to any other party hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in connection with the exercise of any remedies hereunder or under any other Credit Document or any action or proceeding relating to this Agreement or any other Credit Document or the enforcement of rights hereunder or thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) subject to an agreement containing provisions substantially the same as those of this Section, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any assignee of or Participant in, or any prospective assignee of or Participant in (including, for purposes hereof, any new lenders invited to join hereunder on an increase in the Loans and Commitments hereunder, whether by exercise of an accordion, by way of amendment or otherwise), any of its rights or obligations under this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower or its obligations, this Agreement or payments hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) on a confidential basis to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any rating agency in connection with rating any of the Credit Parties, Subsidiaries or other Regulated Entities, or any of the credit facilities provided for herein; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the CUSIP Service Bureau or any similar agency or organization in connection with the application, issuance, publishing and monitoring of CUSIP numbers or other market identifiers with respect to the credit facilities provided for herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) with the consent of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent such Information: (x) becomes publicly available other than as a result of a breach of this <u>Section</u> <u>11.15</u>; or (y) becomes available to the Administrative Agent, any Lender, the Issuing Bank or any of their respective Affiliates on a non-confidential basis from a source other than the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) for purposes of establishing a "due diligence" defense.

In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry, and service providers (including potential or actual credit insurers and re-insurers) to the Administrative Agent or any Lender in connection with the administration of this Agreement, the other Credit Documents, and the Commitments.

------

For purposes of this Section, "*<u>Information</u>*" shall mean all information received from any Credit Party, any Subsidiary or any other Regulated Entity relating to any Credit Party, any Subsidiary or any other Regulated Entity, or any of the respective businesses of any of the foregoing, other than any such information that is available to the Administrative Agent, any Lender or the Issuing Bank on a non-confidential basis prior to disclosure by such Credit Party, Subsidiary or other Regulated Entity; <u>provided</u>, <u>that</u>, in the case of information received from any Credit Party, any Subsidiary or any other Regulated Entity after the Closing Date, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this <u>Section</u> <u>11.15</u> shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

Each of the Administrative Agent, the Collateral Agent, the Issuing Bank and the Lenders acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Information may include material non-public information concerning any Credit Party, any Subsidiary and/or any other Regulated Entity, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) it has developed compliance procedures regarding the use of material non-public information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) it will handle such material non-public information in accordance with Applicable Law, including United States federal and state securities laws.

For the avoidance of doubt, nothing set forth in this <u>Section</u> <u>11.15</u> shall prohibit any individual from communicating or disclosing information (including any Information) regarding suspected violations of Applicable Law to a Governmental Authority or applicable self-regulatory authority.

Section 11.16 <u>Usury Savings Claus</u><u>e</u>. Notwithstanding any other provision herein to the contrary, the aggregate interest rate charged or agreed to be paid with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the nature of interest under Applicable Laws shall *not exceed* the Highest Lawful Rate. If the rate of interest (determined without regard to the preceding sentence) under this Agreement at any time *exceeds* the Highest Lawful Rate, the aggregate outstanding principal amount of all Loans shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect. In addition, if when the Loans made hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is *less than* the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect, then to the extent permitted by Applicable Law, the Borrower shall pay to the Administrative Agent an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding anything to the contrary in the foregoing, it is the intention of the Lenders and each of the Credit Parties to conform strictly to any applicable usury laws. Accordingly, if any Lender contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such Lender's option be applied to the aggregate outstanding principal amount of all Loans or be refunded to each of the applicable Credit Parties. In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender *exceeds* the Highest Lawful Rate, such Person may, to the extent permitted by Applicable Laws:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) characterize any payment that is *not* principal as an expense, fee, or premium rather than interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) exclude voluntary prepayments and the effects thereof; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest, throughout the contemplated term of the Obligations hereunder.

Section 11.17 <u>Electronic</u><u> </u><u>Execution;</u> <u>Counterpart</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Electronic Execution</u>. Each of the parties hereto hereby agrees that: (i) the electronic signature of any party to this Agreement or to any other Credit Document shall be as valid as an original "*wet*" signature of such party thereto, and <u>further</u>, that such signature shall be effective to bind such party to this Agreement or to such other Credit Document, as applicable; and (ii) any electronically signed document (including, without limitation, this Agreement and each other Credit Document) shall be deemed to (A) be "*written*" or "*in writing*", (B) have been signed, (C) constitute a record established and maintained in the ordinary course of business, and (D) constitute an original written record when printed from electronic files. Such paper copies or "*printouts*", if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding, will be admissible as between the parties to the same extent, and under the same conditions, as other original business records created and maintained in documentary form. None of the parties hereto shall contest the admissibility of true and accurate copies of electronically signed documents on the basis of the best evidence rule or as *not* satisfying the business records exception to the hearsay rule. For purposes of this <u>Section</u> <u>11.17</u>: (I) "*<u>electronic signature</u>*" shall mean a manually-signed original signature that is then transmitted by electronic means; (II) "*<u>transmitted by</u> <u>electronic means</u>*" shall mean sent in the form of a facsimile or sent via the internet as a ".pdf" (portable document format) or other replicating image attached to an e-mail message; and (III) "*<u>electronically signed</u> <u>document</u>*" shall mean a document transmitted by electronic means and containing, or to which there is affixed, an electronic signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Counterparts</u>. This Agreement and each other Credit Document may be executed by one (1) or more of the parties to this Agreement or such other Credit Document (as the case may be) on any number of separate counterparts, and all of said counterparts shall, taken together, be deemed to constitute one (1) and the same instrument. Delivery of an executed counterpart of a signature page to this Agreement, or any other Credit Document, by facsimile transmission or any other electronic mail in ".pdf" format, shall be as effective as delivery of a manually executed counterpart of this Agreement or such other Credit Document.

Section 11.18 <u>No</u><u> </u><u>Advisory</u> <u>of</u><u> </u><u>Fiduciary</u><u> </u><u>Relationshi</u><u>p</u>. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Credit Document), each of the Credit Parties acknowledges and agrees, and acknowledges its Affiliates' understanding, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the arranging and other services regarding this Agreement provided by the Administrative Agent, are arm's-length commercial transactions between the Credit Parties, on the one hand, and the Administrative Agent, on the other hand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Credit Parties have consulted their own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each of the Credit Parties is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Credit Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Administrative Agent is and has been acting *solely* as a principal and, except as expressly agreed in writing by the relevant parties, has *not* been, is *not* and will *not* be acting as an advisor, agent or fiduciary, for any Credit Party or any of their Affiliates or any other Person; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Administrative Agent does *not* have any obligation to any Credit Party or any of their Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Credit Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Administrative Agent and its respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Credit Parties and their Affiliates, and the Administrative Agent does *not* have any obligation to disclose any of such interests to any Credit Party or its Affiliates.

To the fullest extent permitted by Applicable Law, each of the Credit Parties hereby waives and releases, any claims that it may have against the Administrative Agent with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

Section 11.19 <u>Integration; Effectivenes</u><u>s</u>. This Agreement and the other Credit Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Article 5, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.

Section 11.20 <u>USA PATRIOT A</u><u>ct</u>. Each Lender subject to the Patriot Act hereby notifies each of the Credit Parties that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies each of the Credit Parties, which information includes the name and address of each of the Credit Parties and other information that will allow such Lender to identify each of the Credit Parties in accordance with the Patriot Act.

Section 11.21 <u>Acknowledgement and Consent to Bail-In of Affected Financial Institutio</u><u>ns</u>. Notwithstanding anything to the contrary in any Credit Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender that is an Affected Financial Institution arising under any Credit Document, to the extent that such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority, and each party hereto agrees and consents to, and acknowledges and agrees to be bound by: (a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder that may be payable to it by any Lender that is an Affected Financial Institution; and (b) the effects of any Bail-In Action on any such liability, including, if applicable, (i) a reduction, in full or in part, or cancellation of any such liability, (ii) a conversion of all, or a portion, of such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to, or otherwise conferred on, it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Credit Document, or (iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

Section 11.22 <u>Certain</u><u> </u><u>ERISA</u><u> </u><u>Matter</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that at least one of the following is and will be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender is not using "plan assets" (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments or this Agreement;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84–14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95–60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90–1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91–38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96–23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84–14);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Revolving Commitments and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84–14; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84–14 are satisfied with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, unless either (1) <u>clause (a)(i</u>) above is true with respect to a Lender, or (2) a Lender has provided another representation, warranty and covenant as provided in <u>clause (a)(iv</u>) above, such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that the Administrative Agent is *not* a fiduciary with respect to the assets of such Lender involved in such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Credit Document or any documents related hereto or thereto).

Section 11.23 <u>Acknowledgment</u><u> </u><u>Regarding</u><u> </u><u>any</u><u> </u><u>Supported</u> <u>QFC</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent that the Credit Documents provide support, through a guarantee or otherwise, for any Swap Obligation or any other agreement or instrument that is a QFC (such support, "*<u>QFC Credit Support</u>*"; and each such QFC, a "*<u>Supported QFC</u>*"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Special Resolution Regimes</u>*") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Credit Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that a Covered Entity that is a party to a Supported QFC (each, a "*<u>Covered Party</u>*") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the Laws of the United States or a state of the United States. In the event that a Covered Party, or a BHC Act Affiliate of a Covered Party, becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Credit Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Credit Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

[*Remainder of Page Intentionally Left Blank*; *Signature Pages Follow*]

------

IN WITNESS WHEREOF, each of the parties hereto have caused a counterpart of this Agreement to be duly executed and delivered by its below duly authorized officer as of the day and year first written above.

---

| | | |
|:---|:---|:---|
| **BORROWER:** | **SAFEPOINT HOLDINGS. INC.,** | **SAFEPOINT HOLDINGS. INC.,** |
|  | a Florida corporation | a Florida corporation |
|  | By: | /s/ David Flitman |
|  | Name: | David Flitman |
|  | Title: | Chief Executive Officer |
| **GUARANTORS:** | **CAJUN UNDERWRITERS HOLDINGS, LLC,** | **CAJUN UNDERWRITERS HOLDINGS, LLC,** |
|  | a Delaware limited liability company | a Delaware limited liability company |
|  | **CAJUN UNDERWRITERS RISK MANAGEMENT LLC,** | **CAJUN UNDERWRITERS RISK MANAGEMENT LLC,** |
|  | a Delaware limited liability company | a Delaware limited liability company |
|  | **INSIGHT RISK SOLUTIONS, LLC,** | **INSIGHT RISK SOLUTIONS, LLC,** |
|  | a Florida limited liability company | a Florida limited liability company |
|  | **MANA TEE RISK MANAGEMENT LLC,** | **MANA TEE RISK MANAGEMENT LLC,** |
|  | a Florida limited liability company | a Florida limited liability company |
|  | **SAFEPOlNT MGA, LLC**, | **SAFEPOlNT MGA, LLC**, |
|  | a Florida limited liability company | a Florida limited liability company |
|  | By: | /s/ David Flitman |
|  | Name: | David Flitman |
|  | Title: | Chief Executive Officer |

---

*[Signature Pages Continue]* 

Signature Page to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | | |
|:---|:---|:---|
| ADMINISTRATIVE AGENT |  |  |
| AND COLLATERAL AGENT: | **REGIONS BANK,** | **REGIONS BANK,** |
|  | as Administrative Agent and Collateral Agent | as Administrative Agent and Collateral Agent |
|  | By: | /s/ Jon McRae |
|  | Name: | Jon McRae |
|  | Title: | Director |

---

Signature Page to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | | |
|:---|:---|:---|
| LENDERS: | **REGIONS BANK,** | **REGIONS BANK,** |
|  | as Issuing Bank, as Swingline Lender, and as a Lender | as Issuing Bank, as Swingline Lender, and as a Lender |
|  | By: | /s/ Jon McRae |
|  | Name: | Jon McRae |
|  | Title: | Director |

---

Signature Page to Credit Agreement (Safepoint Holdings, Inc.)

------

Confidential

---

| | |
|:---|:---|
| **TEXAS CAPITAL BANK** | **TEXAS CAPITAL BANK** |
| as a Lender | as a Lender |
| By: | /s/ Ben Beugelsdijk |
| Name: | Ben Beugelsdijk |
| Title: | Vice President |

---

*[Signature Pages Continue]* 

Signature Page to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **SYNOVUS BANK,**<br> as a Lender | **SYNOVUS BANK,**<br> as a Lender |
| By: | /s/ Will Fridlender |
| Name: | Will Fridlender |
| Title: | Director |

---

*[Signature Pages Continue]* 

Signature Page to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **DEUTSCHE BANK AG NEW YORK BRANCH,** | **DEUTSCHE BANK AG NEW YORK BRANCH,** |
| as a Lender | as a Lender |
| By: | /s/ Marko Lukin |
| Name: | Marko Lukin |
| Title: | Vice President |
| By: | /s/ Alison Lugo |
| Name: | Alison Lugo |
| Title: | Vice President |

---

*[Signature Pages End]* 

Signature Page to Credit Agreement (Safepoint Holdings, Inc.)

------

**<u>Appendix A-B</u>**

[On file with the Administrative Agent]

------

**<u>Schedules 6.1-8.6</u>**

[On file with the Administrative Agent]

------

**<u>Exhibits 1.1-11.5</u>**

[On file with the Administrative Agent]

## Exhibit 4.2

**Exhibit 4.2** 

***Executed Copy***

**FIRST AMENDMENT** 

dated as of April 11, 2025

to

CREDIT AGREEMENT

dated as of February 18, 2025

by and among

SAFEPOINT HOLDINGS, INC.,

as the Borrower,

CERTAIN SUBSIDIARIES OF THE BORROWER FROM TIME TO TIME PARTY THERETO,

as Guarantors,

THE LENDERS FROM TIME TO TIME PARTY THERETO,

and

REGIONS BANK,

as Administrative Agent, Collateral Agent, Issuing Bank, and Swingline Lender

REGIONS CAPITAL MARKETS,

a division of Regions Bank,

as Sole Lead Arranger and Sole Bookrunner for such Amendment

Cover Page to First Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

**<u>FIRST AMENDMENT TO CREDIT AGREEMENT</u>**

This FIRST AMENDMENT TO CREDIT AGREEMENT (this "*<u>Amendment</u>*"), dated as of April 11, 2025 (the "*<u>First Amendment Effective Date</u>*"), is entered into by and among SAFEPOINT HOLDINGS, INC., a Florida corporation (the "*<u>Borrower</u>*"), the Guarantors (here and hereafter as such term is defined in the Existing Credit Agreement (here and hereafter as such term is defined in the recitals below)) as of the First Amendment Effective Date, the First Amendment Joining Lender (here and hereafter as such term is defined in <u>Section</u> <u>2</u> below), the Lenders (here and hereafter as such term is defined in the Existing Credit Agreement) party to the Existing Credit Agreement as of the date that is immediately *prior* to the First Amendment Effective Date (collectively, the "*<u>Existing Lenders</u>*", and each of them individually, an "*<u>Existing Lender</u>*"), and REGIONS BANK ("*<u>Regions</u>*"), in its capacities as Administrative Agent, Collateral Agent, Swingline Lender, and Issuing Bank (each, here and hereafter as such term is defined in the Existing Credit Agreement).

R E C I T A L S

WHEREAS, the Borrower, the Guarantors from time to time party thereto, the Lenders from time to time party thereto, the Administrative Agent and the Collateral Agent are parties to that certain Credit Agreement, dated as of February 18, 2025 (as amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time *prior* to the First Amendment Effective Date, the "*<u>Existing Credit Agreement</u>*"; and the Existing Credit Agreement as amended by this Amendment on the First Amendment Effective Date, the "*<u>Amended</u> <u>Credit Agreement</u>*"; and the Amended Credit Agreement as it may be further amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time, the "*<u>Credit Agreement</u>*);

WHEREAS, the Borrower has requested that the First Amendment Joining Lender (i) join the Existing Credit Agreement as a "Lender" on the First Amendment Effective Date, (ii) establish its DDTL Commitment on the First Amendment Effective Date in the amount set forth in the applicable column opposite the First Amendment Joining Lender's name on Appendix A (*Lenders*, *Commitments and Commitment Percentages*) to the Amended Credit Agreement (the "*<u>Updated Commitment Schedule</u>*") as the First Amendment Joining Lender's "*DDTL Commitment*", such that the Aggregate DDTL Commitment Amount is increased, on the First Amendment Effective Date, from Fifteen Million Dollars ($15,000,000) (as in effect on the date that is immediately *prior* to the First Amendment Effective Date) to Twenty-Five Million Dollars ($25,000,000) (such increase in the Aggregate DDTL Commitment Amount, the "*<u>First Amendment DDTL Increase</u>*"), and (iii) assume its allocated portion and *pro rata* percentage share, as set forth in the Updated Commitment Schedule, of (A) the aggregate outstanding (as of the First Amendment Effective Date) principal balance of the Loans of each Class, (B) the Aggregate Revolving Commitments in effect on the First Amendment Effective Date, and (C) any other Revolving Credit Exposure of the Lenders as of the First Amendment Effective Date;

WHEREAS, the Borrower has further requested that the Lenders make: (i) certain other modifications to the terms of the Existing Credit Agreement as described in <u>Section</u> <u>5(a</u>) below; and (ii) certain modifications to Appendix A (*Lenders*, *Commitments and Commitment Percentages*) to the Existing Credit Agreement as described in <u>Section</u> <u>5(b</u>) below; and

WHEREAS, (a) the First Amendment Joining Lender has agreed to (i) join the Existing Credit Agreement as a Lender, (ii) establish its respective DDTL Commitment, and (iii) assume its respective allocated portion and *pro rata* percentage share, as set forth in the Updated Commitment Schedule, of (A)

First Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

the aggregate outstanding (as of the First Amendment Effective Date) principal balance of the Loans of each Class, (B) the Aggregate Revolving Commitments in effect on the First Amendment Effective Date, and (C) any other Revolving Credit Exposure of the Lenders as of the First Amendment Effective Date, (b) each of the Existing Lenders has agreed to, *solely* if, and to the extent, set forth in <u>Section</u> <u>3</u> below, assign and re-allocate a portion of its outstanding Loan(s) of each Class (if any), its existing Commitment (if any) of each Class, and its other Revolving Credit Exposure (if any) to the First Amendment Joining Lender in accordance with the respective allocated portions and *pro rata* percentages shares of the Lenders as set forth in the Updated Commitment Schedule, and (c) each of the Lenders has agreed to consent to the other modifications to the terms and provisions of the Existing Credit Agreement (including the Annexes thereto) as set forth in this Amendment, in each case of the foregoing <u>clauses (a</u>) through (<u>c</u>), on the terms, and subject to the conditions, set forth in this Amendment.

NOW, THEREFORE, in consideration of the agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the parties to this Amendment hereby agrees as follows:

A G R E E M E N T

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>INTRODUCTORY PARAGRAPH AND RECITALS; DEFINITIONS</u>. The above introductory paragraph and recitals (including any terms defined therein) of this Amendment are incorporated herein by reference as if fully set forth in the body of this Amendment. Capitalized terms used in this Amendment but not otherwise defined herein shall have the respective meanings provided for such terms in the Existing Credit Agreement or in the Amended Credit Agreement, as the context may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>LENDER JOINDER</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Joinder Agreement</u>. Lake Forest Bank & Trust Company, National Association (a subsidiary of Wintrust Financial Corporation) (the "*<u>First Amendment Joining Lender</u>*") hereby:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) agrees to establish its DDTL Commitment on the First Amendment Effective Date in the amount that is designated, in the applicable column opposite the First Amendment Joining Lender's name in the table set forth on the Updated Commitment Schedule, as the First Amendment Joining Lender's "*DDTL Commitment*";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) represents and warrants to the Administrative Agent, the Collateral Agent, the Issuing Bank, each of the other Lenders, and each of the Credit Parties that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) it has full power and authority, and has taken all necessary action(s), to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) execute and deliver this Amendment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) establish its DDTL Commitment in the amount set forth as the First Amendment Joining Lender's "*DDTL Commitment*" in the applicable column opposite the First Amendment Joining Lender's name in the table set forth on the Updated Commitment Schedule;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) assume its allocated portion and *pro rata* percentage share of (1) the aggregate outstanding (as of the First Amendment Effective Date) principal balance of the Loans of each Class, (2) the Aggregate Revolving Commitments in effect on the First Amendment Effective Date, and (3) any other Revolving Credit Exposure of the Lenders as of the First Amendment Effective Date, in each case of the foregoing <u>clauses (a)(ii)(A)(III)(1</u>) through (<u>a)(ii)(A)(III)(3</u>), as set forth on the Updated Commitment Schedule and in accordance with <u>Section</u> <u>3</u> below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) fund its portion(s) of any Borrowing(s) contemplated to occur on the First Amendment Effective Date in connection with this Amendment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(V) become a Lender under the Amended Credit Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VI) perform its obligations under this Amendment and the Amended Credit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) it satisfies each of the requirements specified in the Amended Credit Agreement that are required to be satisfied by it in order to become a Lender under the Amended Credit Agreement in accordance with the terms thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) it has reviewed the current Disqualified Institutions List provided by the Borrower to, and acknowledged and maintained by, the Administrative Agent (if any) in connection with the Credit Agreement, and it is *not* a Disqualified Institution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) from and after the First Amendment Effective Date, it shall be bound by the provisions of the Amended Credit Agreement and the other Credit Documents as a Lender and shall have all of the obligations of a Lender as if it had executed the Amended Credit Agreement as of the First Amendment Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) it has received a copy of the Existing Credit Agreement and of the Amended Credit Agreement, together with copies of the most recent financial statements delivered to the Administrative Agent pursuant to each of Section 7.1(a) (*Quarterly Financial Statements*) and Section 7.1(b) (*Annual Financial Statements*) of the Existing Credit Agreement (or, to the extent no such financial statements have yet been delivered pursuant to such Section(s) of the Existing Credit Agreement, copies of the financial statements delivered to the Administrative Agent in anticipation of the closing of the Credit Agreement on the Closing Date in satisfaction of Section 5.1(f) (*Financial Statements*) of the Credit Agreement), together with such other documents and information as it has deemed appropriate to make its own credit analysis and decision to execute this Amendment, to be bound by the terms of this Amendment and the Amended Credit Agreement, and to become a Lender under the Amended Credit Agreement, on the basis of which it has made such analysis and decision independently and without reliance on any of the Administrative Agent, the Collateral Agent, the Issuing Bank, or any other Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) if it is a Foreign Lender, it has delivered to the Administrative Agent all documentation required to be delivered by it to the Administrative Agent pursuant to the terms of the Amended Credit Agreement as a result of it being a Foreign Lender, all duly completed and executed by it; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) from and after the First Amendment Effective Date, it shall be deemed to be a party to the Amended Credit Agreement and a "*Lender*" for all purposes of the Amended Credit Agreement and the other Credit Documents, it shall be bound by the provisions of the Amended Credit Agreement and the other Credit Documents as a Lender, and it shall have all of the obligations of a Lender as if it had executed the Amended Credit Agreement as of the First Amendment Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) it will, independently and without reliance on any of the Administrative Agent, the Collateral Agent, the Issuing Bank, or any other Lender, and based on such documents and information as it shall deem appropriate at the time in its sole discretion, continue to make its own credit decisions and analysis in taking, or not taking, any action(s) under, or in connection with, the Amended Credit Agreement and the other Credit Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) it will perform, in accordance with the terms of all applicable Credit Documents, all of the obligations that, by the terms of the Credit Documents, are required to be performed by it as a Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Borrower Acknowledgement</u>. The Borrower hereby acknowledges and agrees that, from and after the First Amendment Effective Date, the First Amendment Joining Lender shall: (i) be deemed to be a party to the Amended Credit Agreement and a "*Lender*" for all purposes of the Amended Credit Agreement and the other Credit Documents; and (ii) have all of the rights and obligations of a Lender under the Amended Credit Agreement and the other Credit Documents as if it had executed the Amended Credit Agreement as of the First Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notices</u>. The mailing address, facsimile number, and electronic mail address of the First Amendment Joining Lender for purposes of Section 11.1 (*Notices*) of the Amended Credit Agreement is as set forth in the First Amendment Joining Lender's Administrative Questionnaire delivered by the First Amendment Joining Lender to the Administrative Agent on or prior to the First Amendment Effective Date, or such other mailing address, facsimile number, and/or electronic mail address as shall be designated by the First Amendment Joining Lender in a written notice delivered to the Administrative Agent after the First Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>RE-ALLOCATION OF LOANS, COMMITMENTS AND REVOLVING CREDIT</u> <u>EXPOSURES</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Assignment and Reallocation</u>. Each of the parties to this Amendment hereby agrees that the Borrower, the Guarantors, the Lenders (including the First Amendment Joining Lender), the Issuing Bank, the Administrative Agent and the Collateral Agent shall be deemed, on the First Amendment Effective Date automatically without any further action(s) (including execution of any Assignment Agreements or any other assignment documentation) of any Person(s), to have irrevocably authorized, directed and instructed the Administrative Agent to effect such assignments, prepayments, borrowings, and reallocations as are (in the reasonable determination of the Administrative Agent) necessary in order to effectuate the modifications to the outstanding Loans of each Class, the existing Commitments of each Class, and the other Revolving Credit Exposures (and to the respective allocated Dollar amounts and applicable *pro rata* percentage shares thereof that are attributable to each Lender (including the First Amendment Joining Lender)) as are contemplated by this Amendment and the Updated Commitment Schedule such that, on the First Amendment Effective Date immediately *after* giving effect to this Amendment, each of the Lenders (including the First Amendment Joining Lender) shall hold and be allocated a respective (for each Class and for each Lender) portion and *pro rata* percentage share of (i) the aggregate outstanding principal balance of the Loans of each Class, (ii) the Aggregate Revolving

------

Commitments and the Aggregate DDTL Commitments, and (iii) the other Revolving Credit Exposures of the Lenders, in each case of the foregoing <u>clauses (a)(i</u>) through (<u>a)(iii</u>), in accordance with the respective allocated Dollar and percentage amount(s) (as applicable) set forth in the applicable column opposite such Lender's name in the table set forth on the Updated Commitment Schedule, without any further requirement to comply with the terms and provisions set forth in Section 11.5 (*Successors and Assigns*) of the Existing Credit Agreement. Each Lender (including, without limitation, the First Amendment Joining Lender) hereby waives any right to demand reimbursement pursuant to Section 3.1(c) (*Compensation for Breakage or Non*-*Commencement of Interest Periods*) of the Credit Agreement of any "breakage" or break-funding costs incurred *solely* as a result of the assignments, prepayments, borrowings, and reallocations described in the immediately foregoing sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Lender Affirmation</u>. Each of the Lenders (including, without limitation, the First Amendment Joining Lender) hereby acknowledges, accepts, and confirms (i) the Dollar amount of its Revolving Commitment, (ii) its respective allocated *pro rata* percentage share of the Aggregate Revolving Commitments, (iii) the Dollar amount of its DDTL Commitment, (iv) its respective allocated *pro rata* percentage share of the Aggregate DDTL Commitments, and (v) its respective allocated outstanding principal amount held, and allocated *pro rata* percentage share, of the aggregate outstanding principal balance of the Loans of each Class made by the Lenders, in each case of the foregoing <u>clauses</u> <u>(b)(i</u>) through (<u>b)(v</u>), as of the First Amendment Effective Date, all as set forth on the Updated Commitment Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>NO ACCORDION UTILIZATION</u>. For purposes of clarity, the First Amendment DDTL Increase established on the First Amendment Effective Date pursuant to this Amendment is *not* established or effected, in whole or in part, pursuant to Section 2.1(e) (*Incremental Facilities*) of the Existing Credit Agreement. As such, the First Amendment DDTL Increase shall *not* constitute an "*Incremental Facility*" or an "*Incremental DDTL Increase*", and this Amendment shall *not* constitute an "*Incremental Facility Amendment*", in each case of the foregoing, as such terms are defined and used in the Amended Credit Agreement and the other Credit Documents; and <u>further</u>, no portion of the aggregate amount of the First Amendment DDTL Increase (or any Borrowing(s) under the DDTL Commitment of the First Amendment Joining Lender established in connection therewith) shall decrease (or otherwise count against or reduce) the available amount under the Incremental Cap (which, for purposes of clarity, is Fifty Million Dollars ($50,000,000) on the First Amendment Effective Date immediately *after* giving effect to this Amendment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>AMENDMENTS TO EXISTING CREDIT AGREEMENT</u>. In accordance with Section 11.4 (*Amendments and Waivers*) of the Existing Credit Agreement, the Existing Credit Agreement is hereby amended in the following respects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Terms of Existing Credit Agreement</u>. The terms of the Existing Credit Agreement (but *not* the Appendices, Schedules and/or Exhibits thereto) are amended and replaced in their entirety to read as set forth in the copy of the entire body of the Amended Credit Agreement attached hereto as <u>Annex I</u> to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Appendix to Existing Credit Agreement</u>. Appendix A (*Lenders*, *Commitments and Commitment Percentages*) to the Existing Credit Agreement is amended by amending and restating such Appendix in its entirety with the Appendix attached hereto as <u>Annex II</u> to this Amendment.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>EFFECTIVENESS; CONDITIONS PRECEDENT</u>. This Amendment shall become effective as of the First Amendment Effective Date upon the satisfaction of each of the following conditions precedent (in each case, in form and substance satisfactory to the Administrative Agent and the Collateral Agent):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendment</u>. Receipt by the Administrative Agent of a counterpart of this Amendment duly executed by each of the Credit Parties, the First Amendment Joining Lender, each of the Existing Lenders, the Issuing Bank, the Administrative Agent, and the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organizational Documents; Resolutions and Certificates</u>. Receipt by the Administrative Agent of a duly executed certificate of the secretary or assistant secretary of each Credit Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) certifying that there have been no change(s) to the Organizational Documents of such Credit Party since the Closing Date (except as may be disclosed in such certificate, and, in the event of any such change(s), such certificate shall attach copies of such changed Organizational Document(s), as in effect on the First Amendment Effective Date, that (in the case of any certificate or articles of incorporation, formation or organization, any certificate of limited partnership, or any other registered Organizational Document of any such Person) are certified, as of a recent date, by the applicable Governmental Authority of such Person's jurisdiction of incorporation or formation (as the case may be));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) attaching and certifying a copy of resolutions (or unanimous written consents) of the board of directors or managers (or equivalent governing body) of such Credit Party, authorizing: (A) the timely execution and delivery of this Amendment and the performance by such Credit Party of its respective obligations under this Amendment and the Amended Credit Agreement; (B) the establishment of the First Amendment DDTL Increase as described herein; and (C) any Credit Extension(s) to occur on the First Amendment Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if, and to the extent that, the Administrative Agent shall *not* have already received an executed, original incumbency certificate (in form and substance reasonably satisfactory to the Administrative Agent) with respect to any Authorized Officer of such Credit Party signing this Amendment, and/or any other document, agreement, letter, certificate and/or instrument executed, or required to be executed, in connection herewith (including, without limitation, the certificate(s) described in this <u>clause (b</u>)), on its behalf, certifying the name, title, and true signature with respect to each such Authorized Officer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) certifying and attaching a copy of a certificate of good standing, existence, or the like for such Credit Party, certified, as of a recent date, by the applicable Governmental Authority of such Credit Party's jurisdiction of incorporation or formation (as the case may be).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Opinions of Counsel</u>. Receipt by the Administrative Agent of customary written opinions of counsel to the Credit Parties, addressed to the Administrative Agent, the Collateral Agent, the Issuing Bank, and each of the Lenders (including the First Amendment Joining Lender), and covering such customary matters relating to the Credit Parties, this Amendment, the Amended Credit Agreement, and the transactions contemplated hereby, as are in form and substance reasonably satisfactory to the Administrative Agent and the Collateral Agent (which opinions of counsel shall (i) include, without limitation, customary legal opinions relating to (A)

------

existence, good standing, and corporate authority of the Credit Parties, and (B) governing law and enforceability of this Amendment and the Amended Credit Agreement, and (ii) in any event, expressly permit reliance by the successors and permitted assigns of the Administrative Agent, the Collateral Agent, the Issuing Bank, and the Lenders (including the First Amendment Joining Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Diligence Searches</u>. Receipt by the Collateral Agent of copies of UCC lien search results and, if (and to the extent) requested by the Collateral Agent, tax and judgment lien search results (in each case of the foregoing, as required by the Collateral Agent in its reasonable discretion) in the jurisdiction of incorporation or formation, as the case may be, of each Credit Party, together with any such diligence search results in any other necessary or appropriate jurisdiction(s) as reasonably requested by the Collateral Agent, indicating that there are no prior Liens on any of the Collateral, other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Sources and Uses</u>. Receipt by the Administrative Agent of a duly executed funds disbursement or funds direction agreement (including wiring instructions and bank account information), together with a certified report setting forth the sources and uses of, without limitation, the proceeds of any Credit Extension(s) to occur on the First Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Florida Taxes</u>. Receipt by the Administrative Agent of evidence reasonably satisfactory to the Administrative Agent that either: (i) this Amendment and any Notes being executed in connection with this Amendment (including, without limitation, any Note(s) issued in favor of the First Amendment Joining Lender) have been executed by the applicable Credit Parties outside of the State of Florida (which evidence shall include a duly executed and notarized affidavit of out-of-state execution); or (ii) all applicable documentary stamp Taxes and intangibles Taxes due and owing to the Florida Department of Revenue under the Laws of the State of Florida in connection with the execution of this Amendment by the Credit Parties, and/or the execution of any Notes being executed in connection with this Amendment (including, without limitation, any Note(s) issued in favor of the First Amendment Joining Lender) by the Borrower, either have been paid to the Florida Department of Revenue or are being paid to the Florida Department of Revenue substantially concurrently with the closing of this Amendment on the First Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Fees and Expenses</u>. Receipt by the Administrative Agent of payment of all fees, costs, expenses, charges, disbursements and other amounts due and payable by, or on behalf of, any of the Credit Parties to any of the Administrative Agent, the Collateral Agent, any Arranger, the Swingline Lender, the Issuing Bank, the First Amendment Joining Lender, and/or the Existing Lenders (or any of them) on, or prior to, the First Amendment Effective Date, including, without limitation, (i) payment of those certain fees described in that certain engagement letter agreement, dated as of February 26, 2025, by and between Regions Capital Markets, a division of Regions Bank, and the Borrower (the "*<u>Post</u>*<u>-</u>*<u>Closing Syndication Engagement Letter</u>*") in respect of the DDTL Commitment of the First Amendment Joining Lender established in connection with the First Amendment DDTL Increase (in each case, in conformity with the acknowledgements set forth in <u>Section</u> <u>9(b</u>) of this Amendment), and (ii) reimbursement or payment of all reasonable and documented costs and out-of-pocket expenses of the Administrative Agent and its Affiliates (including, without limitation, all filing and recording fees and Taxes and all reasonable and documented fees, charges and disbursements of counsel to the Administrative Agent and the Collateral Agent) required to be reimbursed or paid by any of the Credit Parties under this Amendment, the Amended Credit Agreement, any other Credit Document, and/or any other agreement(s) with the Administrative Agent or any of its Affiliates.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Other Information and Documents</u>. Delivery to the Administrative Agent and/or the Collateral Agent of such other information and/or documents as the Administrative Agent, the Collateral Agent, and/or any Lender may reasonably request or require in connection with this Amendment.

Without limiting the generality of the foregoing provisions of this <u>Section</u> <u>6</u>, for purposes of determining compliance with the conditions specified in this <u>Section</u> <u>6</u>, each Lender (including the First Amendment Joining Lender) that has signed this Amendment shall be deemed to have consented to, approved of, accepted, or been satisfied with, each document or other matter required hereunder to be consented to or approved by, or acceptable or satisfactory to, a Lender, unless the Administrative Agent shall have received notice from such Lender prior to the proposed First Amendment Effective Date specifying its objection thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>REPRESENTATIONS AND WARRANTIES OF CREDIT PARTIES</u>. Each Credit Party hereby represents and warrants to the Administrative Agent, the Collateral Agent, the Issuing Bank, and each of the Lenders (including the First Amendment Joining Lender) as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Bring-Down</u>. Both immediately *before* and immediately *after* giving effect to each of (A) the execution and delivery of this Amendment on the First Amendment Effective Date, (B) the establishment of the First Amendment DDTL Increase on the First Amendment Effective Date as described herein, and (C) any Credit Extension(s) to occur on the First Amendment Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no event shall have occurred and be continuing that would constitute an Event of Default or a Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all representations and warranties of each Credit Party set forth in the Credit Documents are true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties are true and correct in all respects), except to the extent that such representations and warranties specifically relate to an *earlier* date, in which case, such representations and warranties are true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties are true and correct in all respects) as of such earlier date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Borrower individually is, and the Credit Parties, Subsidiaries and other Regulated Entities taken as a whole are, Solvent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Financial Condition</u>. Immediately *after* giving effect to each of (A) the execution and delivery of this Amendment on the First Amendment Effective Date, (B) the establishment of the First Amendment DDTL Increase on the First Amendment Effective Date as described herein, and (C) any Credit Extension(s) to occur on the First Amendment Effective Date, the Credit Parties shall be in compliance, on a Pro Forma Basis, with each of the Financial Covenants, as demonstrated by reasonably detailed financial calculations attached to this Amendment as <u>Annex</u> <u>III</u> hereto.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Authorization</u>. The execution and delivery by each Credit Party of this Amendment, and the performance by each Credit Party of its respective obligations under this Amendment and the Amended Credit Agreement, is within such Credit Party's organizational powers. Each Credit Party has taken all necessary organizational, and if required, shareholder, partner, trustee or member (as the case may be) action to duly authorize each of (i) the execution and delivery of this Amendment on the First Amendment Effective Date and the performance by each Credit Party of its respective obligations under this Amendment and the Amended Credit Agreement, (ii) the establishment of the First Amendment DDTL Increase on the First Amendment Effective Date as described herein, and (iii) any Credit Extension(s) to occur on the First Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Validity; Enforceability</u>. This Amendment has been duly executed and delivered by each Credit Party and constitutes a legal, valid and binding obligation of each Credit Party, enforceable against each Credit Party in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar Applicable Laws affecting the enforcement of creditors' rights generally and by general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Required Consents and Approvals</u>. The Credit Parties have received all consents (including, without limitation, any necessary governmental consents, as applicable), approvals, authorizations, registrations, filings and orders required or advisable to be made or obtained (as the case may be) under any Applicable Law, under the Organizational Documents of any Credit Party, or pursuant to any Contractual Obligation of any Credit Party, in each case of the foregoing, in connection with any of the execution, delivery, validity and enforceability of this Amendment and/or the performance by each Credit Party of its respective obligations under this Amendment and the Amended Credit Agreement, or in connection with any Credit Extension(s) to occur on the First Amendment Effective Date and/or any of the transactions contemplated hereby, and such consents, approvals, authorizations, registrations, filings and orders are currently in full force and effect and all applicable waiting periods have expired, and no investigation or inquiry by any Governmental Authority regarding any of the Commitments (including, without limitation, any of the Commitments of the First Amendment Joining Lender established pursuant to this Amendment), any transaction(s) being financed (in whole or in part) with the proceeds of any Loans, this Amendment, or any of the transactions contemplated hereby, is ongoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Beneficial Ownership</u>. As of the First Amendment Effective Date, the information included in each Beneficial Ownership Certification (as applicable) is true and correct in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Florida Taxes</u>. All applicable documentary stamp taxes and intangibles Taxes that will be due and owing to the Florida Department of Revenue under the Applicable Laws of the State of Florida in connection with the closing of this Amendment on the First Amendment Effective Date (including, without limitation, as a result of the execution by the Borrower of any Note(s) in favor of the First Amendment Joining Lender) have either been paid to the Florida Department of Revenue or are being paid to the Florida Department of Revenue substantially concurrently with the closing of this Amendment on the First Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>REAFFIRMATION</u>. Each Credit Party hereby: (a) (i) acknowledges and consents to all of the terms and conditions of this Amendment, (ii) affirms all of its respective obligations under the Existing Credit Agreement and each of the other Credit Documents to which it is a party (as expressly amended by this Amendment, to the extent so amended), and (iii) agrees that this Amendment, and all documents, agreements, letters, certificates and/or instruments executed in connection with this Amendment, do *not* operate to reduce or discharge any Credit Party's obligations under the Existing Credit Agreement or any of the other Credit Documents to which it is a party (as expressly amended by this Amendment, to the extent so amended); and (b) (i) affirms that each of the Liens granted in, or pursuant to, the Credit Documents is valid and subsisting, and (ii) agrees that this Amendment, and all documents, agreements, certificates and/or instruments executed in connection with this Amendment, do *not*, in any manner, impair, or otherwise adversely affect, any of the Liens granted in, or pursuant to, any of the Credit Documents.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>MISCELLANEOUS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Credit Document; Reference of Terms</u>. This Amendment is hereby deemed to be, and shall be, a Credit Document, and all references to a "*Credit Document*" or the "*Credit Documents*" in the Amended Credit Agreement, in any other Credit Document, or in any other document, agreement, letter, certificate and/or instrument executed and delivered pursuant to the terms thereof, whether executed on, prior to or after the First Amendment Effective Date (including, without limitation, all such references in the representations and warranties of the Credit Parties set forth in the Amended Credit Agreement and the other Credit Documents to which they are a party), shall be deemed to include, and shall include, this Amendment. All references to "*this Agreement*" in the Amended Credit Agreement, and all references to the "*Credit Agreement*" in any other Credit Document or in any other document, agreement, letter, certificate and/or instrument executed and delivered pursuant to the terms thereof, whether executed on, prior to or after the First Amendment Effective Date (including, without limitation, all such references in the representations and warranties of the Credit Parties set forth in the Amended Credit Agreement and the other Credit Documents to which they are a party), are hereby amended so that any reference to "*this Agreement*" or the "*Credit Agreement*" therein, as the case may be, shall be, and be deemed to be, a reference to the Amended Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Post-Closing Syndication Fees Acknowledgment</u>. This Amendment is an "*Increase Amendment*" as such term is defined and used in the Post-Closing Syndication Engagement Letter; the full amount of the DDTL Commitment of the First Amendment Joining Lender established in connection with the First Amendment DDTL Increase constitutes a "*New Commitment*" as such term is defined and used in the Post-Closing Syndication Engagement Letter; the First Amendment Joining Lender is a "*Joining Lender*" as such term is defined and used in the Post-Closing Syndication Engagement Letter; and the First Amendment Effective Date is an "*Amendment Effective Date*" as such term is defined and used in the Post-Closing Syndication Engagement Letter. It is further acknowledged that the execution and delivery of this Amendment, and the establishment of the First Amendment DDTL Increase, on the First Amendment Effective Date does *not* constitute the "completion of the syndication, arrangement and/or placement of the New Commitments" as such phrase is used in clause (ii) of Section E.2. (*Termination*) of the Post-Closing Syndication Engagement Letter; and <u>accordingly</u>, that the Post-Closing Syndication Engagement Letter shall (i) survive the execution and delivery of this Amendment and the establishment of the First Amendment DDTL Increase on the First Amendment Effective Date, and (ii) remain in full force and effect in accordance with the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Full Force and Effect</u>. Except as expressly modified and amended by this Amendment, all of the terms, provisions and conditions of the Credit Documents (including in any Appendices, Schedules and/or Exhibits thereto) shall remain in full force and effect according to their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Counterparts; Delivery</u>. This Amendment may be executed by one (1) or more of the parties to this Amendment on any number of separate counterparts, and all of said counterparts shall, taken together, be deemed to constitute one (1) and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment, by facsimile transmission or any other electronic imaging means (including in ".pdf" format), shall be as effective as delivery of a manually executed counterpart of this Amendment.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Electronic Execution</u>. Each of the parties to this Amendment hereby agrees that: (i) the electronic signature of any party to this Amendment shall be as valid as an original "wet" signature of such party hereto, and <u>further</u>, <u>that</u>, such signature shall be effective to bind such party to this Amendment; and (ii) any electronically signed document (including, without limitation, this Amendment) shall be deemed to (A) be "written" or "in writing", (B) have been signed, (C) constitute a record established and maintained in the ordinary course of business, and (D) constitute an original written record when printed from electronic files. Such paper copies or "printouts", if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding, will be admissible as between the parties to the same extent, and under the same conditions, as other original business records created and maintained in documentary form. None of the parties to this Amendment shall contest the admissibility of true and accurate copies of electronically signed documents on the basis of the best evidence rule or as not satisfying the business records exception to the hearsay rule. For purposes of this <u>clause (e</u>): (I) "*<u>electronic signature</u>*" shall mean a manually-signed original signature that is then transmitted by electronic means; (II) "*<u>transmitted by electronic means</u>*" shall mean sent in the form of a facsimile or sent via the internet as a ".pdf" (portable document format) or other replicating image attached to an e-mail message; and (III) "*<u>electronically signed document</u>*" shall mean a document transmitted by electronic means and containing, or to which there is affixed, an electronic signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Governing Law</u>. THIS AMENDMENT AND ANY CLAIMS, CONTROVERSIES, DISPUTES AND/OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF, OR RELATING TO THIS AMENDMENT AND/OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Fees and Expenses</u>. The Borrower hereby agrees to pay all reasonable and documented costs, fees and out-of-pocket expenses of the Administrative Agent and the Collateral Agent in connection with the preparation, execution and delivery of this Amendment, including, without limitation, the reasonable and documented fees, charges, out-of-pocket expenses and disbursements of Haynes and Boone, LLP, as counsel to the Administrative Agent and the Collateral Agent.

[*Remainder of Page Intentionally Left Blank*; *Signature Pages Follow*]

------

IN WITNESS WHEREOF, each of the parties to this Amendment have caused a counterpart of this Amendment to be duly executed and delivered by its below respective duly authorized officer as of the First Amendment Effective Date.

---

| | | |
|:---|:---|:---|
| BORROWER: | **SAFEPOINT HOLDINGS, INC.,**<br> a Florida corporation | **SAFEPOINT HOLDINGS, INC.,**<br> a Florida corporation |
|  | By: | /s/ David Flitman |
|  | Name: David Flitman | Name: David Flitman |
|  | Title: Chief Executive Officer | Title: Chief Executive Officer |
| GUARANTORS: | **CAJUN UNDERWRITERS HOLDINGS, LLC,** | **CAJUN UNDERWRITERS HOLDINGS, LLC,** |
|  | a Delaware limited liability company | a Delaware limited liability company |
|  | **CAJUN UNDERWRITERS RISK MANAGEMENT, LLC,** | **CAJUN UNDERWRITERS RISK MANAGEMENT, LLC,** |
|  | a Delaware limited liability company | a Delaware limited liability company |
|  | **INSIGHT RISK SOLUTIONS, LLC,** | **INSIGHT RISK SOLUTIONS, LLC,** |
|  | a Florida limited liability company | a Florida limited liability company |
|  | **MANATEE RISK MANAGEMENT LLC,** | **MANATEE RISK MANAGEMENT LLC,** |
|  | a Florida limited liability company | a Florida limited liability company |
|  | **SAFEPOINT MGA, LLC,** | **SAFEPOINT MGA, LLC,** |
|  | a Florida limited liability company | a Florida limited liability company |
|  | By: | /s/ David Flitman |
|  | Name: David Flitman | Name: David Flitman |
|  | Title: Chief Executive Officer | Title: Chief Executive Officer |

---

[*Signature Pages Continue*]

Signature Page to First Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | | |
|:---|:---|:---|
| ADMINISTRATIVE AGENT |  |  |
| AND COLLATERAL AGENT: | **REGIONS BANK,** | **REGIONS BANK,** |
|  | as Administrative Agent and Collateral Agent | as Administrative Agent and Collateral Agent |
|  | By: | /s/ Jon McRae |
|  | Name: Jon McRae | Name: Jon McRae |
|  | Title: Director | Title: Director |

---

[*Signature Pages Continue*]

Signature Page to First Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | | |
|:---|:---|:---|
| LENDERS: | **REGIONS BANK,** | **REGIONS BANK,** |
|  | as Issuing Bank, as Swingline Lender, and as a Lender | as Issuing Bank, as Swingline Lender, and as a Lender |
|  | By: | /s/ Jon McRae |
|  | Name: Jon McRae | Name: Jon McRae |
|  | Title: Director | Title: Director |

---

[*Signature Pages Continue*]

Signature Page to First Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **LAKE FOREST BANK & TRUST COMPANY,** | **LAKE FOREST BANK & TRUST COMPANY,** |
| **NATIONAL ASSOCIATION *(a subsidiary of Wintrust<br>Financial Corporation),*** | **NATIONAL ASSOCIATION *(a subsidiary of Wintrust<br>Financial Corporation),*** |
| as the First Amendment Joining Lender and as a Lender | as the First Amendment Joining Lender and as a Lender |
| By: | /s/ Chris Martorelli |
| Name: Chris Martorelli | Name: Chris Martorelli |
| Title: Vice President | Title: Vice President |

---

[*Signature Pages Continue*]

Signature Page to First Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **TEXAS CAPITAL BANK,** | **TEXAS CAPITAL BANK,** |
| as a Lender | as a Lender |
| By: | /s/ Ben Beugelsdijk |
| Name: Ben Beugelsdijk | Name: Ben Beugelsdijk |
| Title: Vice President | Title: Vice President |

---

[*Signature Pages Continue*]

Signature Page to First Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **SYNOVUS BANK,** | **SYNOVUS BANK,** |
| as a Lender | as a Lender |
| By: | /s/ Will Fridlender |
| Name: Will Fridlender | Name: Will Fridlender |
| Title: Director | Title: Director |

---

[*Signature Pages Continue*]

Signature Page to First Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **DEUTSCHE BANK AG NEW YORK BRANCH,** | **DEUTSCHE BANK AG NEW YORK BRANCH,** |
| as a Lender | as a Lender |
| By: | /s/ Douglas Darman |
| Name: Douglas Darman | Name: Douglas Darman |
| Title: Director | Title: Director |
| By: | /s/ Alison Lugo |
| Name: Alison Lugo | Name: Alison Lugo |
| Title: Vice President | Title: Vice President |

---

[*Signature Pages End*]

Signature Page to First Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

ANNEX I

TO FIRST AMENDMENT TO CREDIT AGREEMENT

**BODY OF CREDIT AGREEMENT** 

See attached.

[*Remainder of Page Intentionally Left Blank*]

Annex I to First Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

ANNEX I

TO FIRST AMENDMENT TO CREDIT AGREEMENT

**CREDIT AGREEMENT** 

dated as of February 18, 2025

by and among

SAFEPOINT HOLDINGS, INC.

as the Borrower,

CERTAIN SUBSIDIARIES OF THE BORROWER FROM TIME TO TIME PARTY HERETO,

as Guarantors,

THE LENDERS FROM TIME TO TIME PARTY HERETO,

and

REGIONS BANK,

as the Administrative Agent, the Collateral Agent, the Issuing Bank and the Swingline Lender

TEXAS CAPITAL BANK,

as Syndication Agent

SYNOVUS BANK,

as Documentation Agent

REGIONS CAPITAL MARKETS, a division of Regions Bank,

TCBI SECURITIES, INC.,

and

SYNOVUS BANK,

as Joint Lead Arrangers and Joint Bookrunners

Cover Page to Credit Agreement (Safepoint Holdings, Inc.)

------

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
|  |  | *Page* |
| **Article 1 — DEFINITIONS AND INTERPRETATION** | **Article 1 — DEFINITIONS AND INTERPRETATION** | **1** |
| Section 1.1 | Definitions | 1 |
| Section 1.2 | Accounting Terms | 55 |
| Section 1.3 | Rules of Interpretation | 57 |
| Section 1.4 | Rules of Interpretation with Respect to Regulated Subsidiaries | 59 |
| Section 1.5 | Classifications of Loans and Borrowings | 60 |
| Section 1.6 | Cashless Rollovers | 60 |
| Section 1.7 | Interest Rate Disclosure | 60 |
| **Article 2 — LOANS AND LETTERS OF CREDIT** | **Article 2 — LOANS AND LETTERS OF CREDIT** | **61** |
| Section 2.1 | Revolving Loans and Term Loans | 61 |
| Section 2.2 | Swingline Loans | 65 |
| Section 2.3 | Issuances of Letters of Credit and Purchase of Participations Therein | 68 |
| Section 2.4 | Pro Rata Shares; Availability of Funds | 73 |
| Section 2.5 | Evidence of Debt; Register; Lenders' Books and Records; Notes | 74 |
| Section 2.6 | Scheduled Principal Payments | 74 |
| Section 2.7 | Interest on Loans | 75 |
| Section 2.8 | Conversion / Continuation | 77 |
| Section 2.9 | Default Rate of Interest | 78 |
| Section 2.10 | Fees | 78 |
| Section 2.11 | Prepayments/Commitment Reductions | 80 |
| Section 2.12 | Application of Prepayments | 83 |
| Section 2.13 | General Provisions Regarding Payments | 83 |
| Section 2.14 | Sharing of Payments by Lenders | 84 |
| Section 2.15 | Cash Collateral | 85 |
| Section 2.16 | Defaulting Lenders | 86 |
| Section 2.17 | Removal or Replacement of Lenders | 89 |
| **Article 3 — YIELD PROTECTION** | **Article 3 — YIELD PROTECTION** | **90** |
| Section 3.1 | Making or Maintaining SOFR Loans; Benchmark Replacement | 90 |
| Section 3.2 | Increased Costs | 94 |
| Section 3.3 | Taxes | 95 |
| Section 3.4 | Mitigation Obligations; Designation of a Different Lending Office | 99 |
| **Article 4 — GUARANTY** | **Article 4 — GUARANTY** | **99** |
| Section 4.1 | The Guaranty | 99 |
| Section 4.2 | Obligations Unconditional | 100 |
| Section 4.3 | Reinstatement | 101 |
| Section 4.4 | Certain Additional Waivers | 101 |
| Section 4.5 | Remedies | 101 |
| Section 4.6 | Rights of Contribution | 101 |
| Section 4.7 | Guarantee of Payment; Continuing Guarantee | 101 |
| Section 4.8 | Keepwell | 101 |
| **Article 5 — CONDITIONS PRECEDENT** | **Article 5 — CONDITIONS PRECEDENT** | **102** |
| Section 5.1 | Conditions Precedent to Initial Credit Extensions | 102 |
| Section 5.2 | Conditions to Each Credit Extension | 105 |

---

**Table of Contents** to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | | |
|:---|:---|:---|
| **Article 6 — REPRESENTATIONS AND WARRANTIES** | **Article 6 — REPRESENTATIONS AND WARRANTIES** | **106** |
| Section 6.1 | Organization; Requisite Power and Authority; Qualification | 106 |
| Section 6.2 | Equity Interests and Ownership | 106 |
| Section 6.3 | Due Authorization | 106 |
| Section 6.4 | No Conflict | 107 |
| Section 6.5 | Governmental Consents | 107 |
| Section 6.6 | Binding Obligation | 107 |
| Section 6.7 | Financial Statements | 107 |
| Section 6.8 | No Material Adverse Effect; No Default or Event of Default | 109 |
| Section 6.9 | Tax Matters | 109 |
| Section 6.10 | Properties | 109 |
| Section 6.11 | Environmental Matters | 110 |
| Section 6.12 | No Defaults | 110 |
| Section 6.13 | No Litigation or other Adverse Proceedings | 110 |
| Section 6.14 | Information Regarding Credit Parties, Subsidiaries and Other Regulated Entities | 110 |
| Section 6.15 | Governmental Regulation | 111 |
| Section 6.16 | Employee Matters | 112 |
| Section 6.17 | Pension Plans | 113 |
| Section 6.18 | Solvency | 113 |
| Section 6.19 | Compliance with Laws | 113 |
| Section 6.20 | Disclosure | 114 |
| Section 6.21 | Insurance | 114 |
| Section 6.22 | Pledge and Security Agreement | 114 |
| Section 6.23 | Mortgages | 115 |
| Section 6.24 | No Casualty | 115 |
| **Article 7 — AFFIRMATIVE COVENANTS** | **Article 7 — AFFIRMATIVE COVENANTS** | **115** |
| Section 7.1 | Financial Statements and Other Reports | 115 |
| Section 7.2 | Existence | 119 |
| Section 7.3 | Payment of Taxes and Claims | 120 |
| Section 7.4 | Maintenance of Properties | 120 |
| Section 7.5 | Insurance | 120 |
| Section 7.6 | Inspections | 121 |
| Section 7.7 | Lenders Meetings | 121 |
| Section 7.8 | Compliance with Laws and Material Contracts | 121 |
| Section 7.9 | Use of Proceeds | 121 |
| Section 7.10 | Environmental Matters | 122 |
| Section 7.11 | Additional Real Estate Assets | 122 |
| Section 7.12 | Pledge of Personal Property Assets | 123 |
| Section 7.13 | Books and Records | 124 |
| Section 7.14 | Additional Subsidiaries | 125 |
| Section 7.15 | Maintenance of Reinsurance | 125 |
| **Article 8 — NEGATIVE COVENANTS** | **Article 8 — NEGATIVE COVENANTS** | **125** |
| Section 8.1 | Indebtedness | 125 |
| Section 8.2 | Liens | 128 |
| Section 8.3 | No Further Negative Pledges | 130 |
| Section 8.4 | Restricted Payments | 130 |
| Section 8.5 | Burdensome Agreements | 131 |

---

ii

------

---

| | | |
|:---|:---|:---|
| Section 8.6 | Investments | 131 |
| Section 8.7 | Use of Proceeds | 133 |
| Section 8.8 | Financial Covenants | 134 |
| Section 8.9 | Fundamental Changes; Disposition of Assets; Acquisitions | 134 |
| Section 8.10 | Disposal of Subsidiary Interests | 135 |
| Section 8.11 | Sales and Lease-Backs | 135 |
| Section 8.12 | Transactions with Affiliates and Insiders | 135 |
| Section 8.13 | Modification or Payment of Certain Funded Debt | 136 |
| Section 8.14 | Conduct of Business | 136 |
| Section 8.15 | Fiscal Year | 137 |
| Section 8.16 | Amendments to Organizational Agreements / Material Agreements | 137 |
| Section 8.17 | Accounting and Reporting Changes | 137 |
| Section 8.18 | Statutory Capitalization / Risk-Based Capital Ratio | 137 |
| Section 8.19 | Holdco Restrictions | 137 |
| **Article 9 — EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS** | **Article 9 — EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS** | **138** |
| Section 9.1 | Events of Default | 138 |
| Section 9.2 | Remedies | 142 |
| Section 9.3 | Application of Funds | 143 |
| **Article 10 — AGENCY** | **Article 10 — AGENCY** | **146** |
| Section 10.1 | Appointment and Authority | 146 |
| Section 10.2 | Rights as a Lender | 147 |
| Section 10.3 | Exculpatory Provisions | 147 |
| Section 10.4 | Reliance by Administrative Agent | 148 |
| Section 10.5 | Delegation of Duties | 149 |
| Section 10.6 | Resignation of Administrative Agent | 149 |
| Section 10.7 | Non-Reliance on Administrative Agent and Other Lenders | 150 |
| Section 10.8 | No Other Duties, etc. | 150 |
| Section 10.9 | Administrative Agent May File Proofs of Claim | 150 |
| Section 10.10 | Collateral and Guaranty Matters | 151 |
| Section 10.11 | Erroneous Payments | 152 |
| **Article 11 — MISCELLANEOUS** | **Article 11 — MISCELLANEOUS** | **155** |
| Section 11.1 | Notices; Effectiveness; Electronic Communications | 155 |
| Section 11.2 | Expenses; Indemnity; Damage Waiver | 156 |
| Section 11.3 | Set-Off | 159 |
| Section 11.4 | Amendments and Waivers | 159 |
| Section 11.5 | Successors and Assigns | 163 |
| Section 11.6 | Independence of Covenants | 167 |
| Section 11.7 | Survival of Representations, Warranties and Agreements | 167 |
| Section 11.8 | No Waiver; Remedies Cumulative | 168 |
| Section 11.9 | Marshalling; Payments Set Aside | 168 |
| Section 11.10 | Severability | 168 |
| Section 11.11 | Obligations Several; Independent Nature of Lenders' Rights | 168 |
| Section 11.12 | Headings | 168 |
| Section 11.13 | Applicable Laws | 169 |
| Section 11.14 | WAIVER OF JURY TRIAL | 169 |
| Section 11.15 | Confidentiality | 170 |
| Section 11.16 | Usury Savings Clause | 171 |
| Section 11.17 | Electronic Execution; Counterparts | 172 |

---

iii

------

---

| | | |
|:---|:---|:---|
| Section 11.18 | No Advisory or Fiduciary Relationship | 172.0 |
| Section 11.19 | Integration; Effectiveness | 173.0 |
| Section 11.20 | USA PATRIOT Act | 173.0 |
| Section 11.21 | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 173.0 |
| Section 11.22 | Certain ERISA Matters | 174.0 |
| Section 11.23 | Acknowledgment Regarding any Supported QFCs | 175.0 |

---

iv

------

<u>Appendices</u>:

---

| | |
|:---|:---|
| Appendix A | Lenders, Commitments and Commitment Percentages |
| Appendix B | Notice Information |

---

<u>Schedules</u>:

---

| | |
|:---|:---|
| Schedule 6.1 | Organization; Requisite Power and Authority; Qualification |
| Schedule 6.2 | Equity Interests and Ownership |
| Schedule 6.10(b) | Real Estate Assets |
| Schedule 6.14 | Names, Jurisdictions and Tax Identification Numbers |
| Schedule 6.21 | Insurance Coverage |
| Schedule 8.1 | Existing Indebtedness |
| Schedule 8.2 | Existing Liens |
| Schedule 8.6 | Existing Investments |

---

<u>Exhibits</u>:

---

| | |
|:---|:---|
| Exhibit 1.1 | [*Form of*] Secured Party Designation Notice |
| Exhibit 2.1 | [*Form of*] Funding Notice |
| Exhibit 2.3 | [*Form of*] Issuance Notice |
| Exhibit 2.5 | [*Form of*] Note |
| Exhibit 2.8 | [*Form of*] Conversion / Continuation Notice |
| Exhibit 3.3 | [*Forms of*] U.S. Tax Compliance Certificates (Forms 1 – 4) |
| Exhibit 7.1(c) | [*Form of*] Compliance Certificate |
| Exhibit 7.14 | [*Form of*] Guarantor Joinder Agreement |
| Exhibit 11.5 | [*Form of*] Assignment Agreement |

---

v

------

**CREDIT AGREEMENT** 

This CREDIT AGREEMENT (as amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time, this "*<u>Agreement</u>*"), dated as of February 18, 2025 (the "*<u>Closing Date</u>*"), is entered into by and among SAFEPOINT HOLDINGS, INC., a Florida corporation (the "*<u>Borrower</u>*"), certain Subsidiaries of the Borrower from time to time party hereto, as Guarantors, the Lenders from time to time party hereto, and REGIONS BANK, as administrative agent (in such capacity, together with its successors and permitted assigns in such capacity, the "*<u>Administrative Agent</u>*") and collateral agent (in such capacity, together with its successors and permitted assigns in such capacity, the "*<u>Collateral Agent</u>*").

R E C I T A L S

WHEREAS, the Borrower has requested that the Lenders provide, in its favor, (i) a Twenty-Five Million Dollar ($25,000,000) revolving credit facility, (ii) a term loan, advanced in a single installment on the Closing Date, in an original principal amount of One-Hundred Million Dollars ($100,000,000), and (iii) a delayed draw term loan, to be advanced in up to five (5) separate installments during the DDTL Availability Period (here and hereafter as such term is defined in <u>Section</u> <u>1.1</u>), in an aggregate original principal amount (for all such installments, taken together) of up to Twenty-Five Million Dollars ($25,000,000) (as increased pursuant to the First Amendment); and

WHEREAS, the Lenders have agreed to make the requested credit facilities available to the Borrower, in each case, on the terms, and subject to the conditions, set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements contained herein, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, each of the parties to this Agreement hereby covenant and agree as follows:

A G R E E M E N T

**Article 1** 

**<u>DEFINITIONS AND INTERPRETATION</u>**

Section 1.1 <u>Definitions</u>. The following terms used herein, including in the introductory paragraph, recitals, appendices, exhibits and schedules hereto, shall have the following meanings:

"*<u>Acquisition</u>*" shall mean, with respect to any Person, the acquisition by such Person, in a single transaction or in a series of related transactions, of: (a) all, or any substantial portion, of the Property of another Person, or any division, line of business or other business unit of another Person; or (b) *at least* a majority of the Voting Stock of another Person, in each case, whether or not involving a merger or consolidation with such other Person and whether for cash, property, services, assumption of Indebtedness, securities or otherwise.

"*<u>Additional Incremental Lender</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.1(d)(i)(D</u>).

Credit Agreement (Safepoint Holdings, Inc.)

------

"*<u>Administrative Agent</u>*" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"*<u>Administrative Questionnaire</u>*" shall mean an administrative questionnaire provided by the Lenders in a form supplied by the Administrative Agent.

"*<u>Adverse Proceeding</u>*" shall mean any action, suit, proceeding (whether administrative, judicial or otherwise), governmental investigation or arbitration (whether or not purportedly on behalf of any Credit Party, any Subsidiary or any other Regulated Entity) at law or in equity, or before or by any Governmental Authority, whether pending, threatened in writing against any Credit Party, any Subsidiary or any other Regulated Entity or any material Property of any Credit Party, any Subsidiary or any other Regulated Entity.

"*<u>Affected Financial Institution</u>*" shall mean: (a) any EEA Financial Institution; or (b) any UK Financial Institution.

"*<u>Affected Lender</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.1(b</u>).

"*<u>Affected Loans</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.1(b</u>).

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

"*<u>Agent</u>*" shall mean, collectively, the Administrative Agent and the Collateral Agent.

"*<u>Aggregate DDTL Commitment Amount</u>*" shall mean, at any time, the amount of the Aggregate DDTL Commitments in effect at such time. On the First Amendment Effective Date immediately after giving effect to the First Amendment DDTL Increase (as such term is defined in the First Amendment), the Aggregate DDTL Commitment Amount is Twenty-Five Million Dollars ($25,000,000).

"*<u>Aggregate DDTL Commitments</u>*" shall mean, at any time, the DDTL Commitments of all of the Lenders in effect at such time, taken together.

"*<u>Aggregate Revolving Commitment Amount</u>*" shall mean, at any time, the amount of the Aggregate Revolving Commitments in effect at such time. On the Closing Date as of the time of initial effectiveness of this Agreement, the Aggregate Revolving Commitment Amount was Twenty-Five Million Dollars ($25,000,000).

"*<u>Aggregate Revolving Commitments</u>*" shall mean, at any time, the Revolving Commitments of all of the Lenders in effect at such time, taken together.

"*<u>Aggregate Revolving Credit Exposure</u>*" shall mean, at any time, the *sum of* the Revolving Credit Exposures of all of the Lenders at such time, taken together.

"*<u>Aggregate Term Loan A Commitment Amount</u>*" shall mean, at any time, the amount of the Aggregate Term Loan A Commitments in effect at such time. On the Closing Date as of the time of initial effectiveness of this Agreement (but *prior* to giving effect to the Borrowing of the Term Loan A on the Closing Date), the Aggregate Term Loan A Commitment Amount was One-Hundred Million Dollars ($100,000,000).

------

"*<u>Aggregate Term Loan A Commitments</u>*" shall mean, at any time, the Term Loan A Commitments of all of the Lenders in effect at such time, taken together.

"*<u>Agreement</u>*" shall have the meaning specified for such term in the introductory paragraph of this Agreement.

"*<u>All</u>*<u>-</u>*<u>In Yield</u>*" shall mean, as to any Indebtedness, the yield thereof (without giving effect to any underlying fluctuations in the underlying base rate), whether in the form of interest rate, margin, original issue discount, upfront fees, a SOFR or Base Rate floor (or any floor on any SOFR-Based Rate or any other interest rate that is derived from SOFR, the SOFR Reference Rate for an applicable tenor or the Base Rate), or otherwise, in each case of the foregoing, incurred or payable by the Borrower generally to all of the lenders of such Indebtedness; <u>provided</u>, <u>that</u>, (i) original issue discount and upfront fees shall be equated to interest rate assuming a four (4) year life to maturity (or, if less, the stated life to maturity at the time of incurrence of the applicable Indebtedness), (ii) "*All*-*In Yield*" shall *not* include customary arrangement fees, structuring fees, commitment fees, underwriting fees, amendment fees and similar fees (regardless of whether paid, in whole or in part, to any or all of lenders of such Indebtedness), or other fees *not* paid generally to all lenders of such Indebtedness, and (iii) if such Indebtedness includes a SOFR or Base Rate floor (or any floor on any SOFR-Based Rate or any other interest rate that is derived from SOFR, the SOFR Reference Rate for an applicable tenor, or the Base Rate) that is *greater than* the SOFR or Base Rate floor (or any floor on any SOFR-Based Rate or any other interest rate that is derived from SOFR, the SOFR Reference Rate for an applicable tenor, or the Base Rate) applicable to any existing Class of Term Loans, such differential between interest rate floors shall be included in the calculation of All-In Yield, but only to the extent that an increase in the interest rate floor applicable to such existing Class of Term Loans would cause an increase in the interest rate then in effect thereunder, and in such case, the interest rate floor (but *not* the Applicable Margin) applicable to such existing Class of Term Loans shall be increased to the extent of such differential between interest rate floors.

"*<u>ALTA</u>*" shall mean the American Land Title Association.

"*<u>Annual Financial Statements</u>*" shall have the meaning specified for such term in <u>Section</u> <u>5.1(f)(ii</u>).

"*<u>Anti</u>*<u>-</u>*<u>Corruption Laws</u>*" shall mean the Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd–1, *et seq*.*,* the UK Bribery Act of 2010, and all other laws, rules, and regulations of any jurisdiction applicable to any Credit Party or any of its Affiliates from time to time concerning or relating to bribery or corruption.

"*<u>Applicable Laws</u>*" shall mean all applicable laws, including all applicable provisions of constitutions, statutes, rules, ordinances, regulations and orders of all Governmental Authorities and all orders, rulings, writs and decrees of all courts, tribunals and arbitrators.

"*<u>Applicable Margin</u>*" shall mean, except as otherwise set forth in (A) any Incremental Facility Agreement with respect to any Incremental Term Loan established thereunder, or (B) any Auto Borrow Agreement with respect to any Swingline Loan advanced pursuant to an Auto Borrow Agreement then in effect, as of any date of determination, (a) during the period from the Closing Date through, and including, the date that is two (2) Business Days immediately following the date on which the financial statements and related Compliance Certificate are delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>) and <u>Section</u> <u>7.1(c</u>), respectively, for the Fiscal Quarter ending March 31, 2025, the applicable percentage per annum based upon Pricing Level III as set forth in the table immediately below, and (b) thereafter, the applicable percentage per annum determined by reference to the table set forth immediately below, using the Consolidated Leverage Ratio as set forth in the Compliance Certificate

------

most recently delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(c</u>), with any increase or decrease in the Applicable Margin resulting from a change in the Consolidated Leverage Ratio becoming effective on the date that is two (2) Business Days immediately following the date on which such Compliance Certificate is delivered.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Pricing<br>Level** | **Consolidated Leverage Ratio** | **SOFR Loans and<br>Letter of Credit Fee** | **Base Rate Loans** | **Commitment<br>Fee** |
| I | < 1.25 to 1 | 3.25% | 2.25% | 0.400% |
| II | < 1.75 to 1.0, *but*<br> ≥ 1.25 to 1.0 | 3.50% | 2.50% | 0.450% |
| III | ≥ 1.75 to 1 | 3.75% | 2.75% | 0.500% |

---

Notwithstanding anything to the contrary in the foregoing: (i) if, at any time, a Compliance Certificate and/or the accompanying financial statements are *not* delivered when due in accordance herewith, then Pricing Level III as set forth in the table immediately above shall apply as of the first (1<sup>st</sup>) Business Day after the date on which such Compliance Certificate and accompanying financial statements were required to have been delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>) and <u>Section</u> <u>7.1(c</u>), respectively, and such Pricing Level shall remain in effect until the date on which such Compliance Certificate and such accompanying financial statements are delivered to the Administrative Agent; and (ii) the determination of the Applicable Margin for any period shall be subject to the provisions of <u>Section</u> <u>2.7(e</u>). The Applicable Margin with respect to any Incremental Term Loan shall be as provided in the Incremental Facility Agreement establishing such Incremental Term Loan.

"*<u>Approved Fund</u>*" shall mean any Fund that is administered or managed by: (a) a Lender; (b) an Affiliate of a Lender; or (c) an entity, or an Affiliate of an entity, that administers or manages a Lender.

"*<u>Arrangers</u>*" shall mean each of Regions Capital Markets, a division of Regions Bank, TCBI Securities, Inc., and Synovus Bank, in their respective capacities as joint lead arranger and joint bookrunner under this Agreement.

"*<u>Asset Sale</u>*" shall mean a sale, lease, Sale and Leaseback Transaction, assignment, conveyance, exclusive license (as licensor), Securitization Transaction, transfer or other disposition to, or any exchange of Property with, any Person, in one transaction or a series of transactions, of any Credit Party, any Subsidiary or any other Regulated Entity or of all, or any part, of any of their respective businesses or Properties of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, created, leased or licensed, including the Equity Interests in any Subsidiary, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) dispositions of surplus, obsolete or worn-out Property, or Property no longer used or useful in the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity, whether now owned or hereafter acquired, in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) dispositions of inventory sold, and Intellectual Property licensed, in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) dispositions of accounts or payment intangibles (each as defined in the UCC) resulting from the compromise or settlement thereof in the ordinary course of business for *less than* the full amount thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) dispositions of cash and Cash Equivalents in the ordinary course of business;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) licenses, sublicenses, leases or subleases granted to any third parties in arm's-length commercial transactions in the ordinary course of business that do *not* interfere, in any material respect, with the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) dispositions of Property held by Regulated Entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the termination or surrender of any real property lease of any Credit Party, any Subsidiary or any other Regulated Entity in the ordinary course of business, so long as the loss of such leased location could *not* be reasonably expected to have an adverse and material effect on any of the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the abandonment or other disposition of Intellectual Property, whether now or hereafter owned or leased or acquired in connection with an Acquisition or other permitted Investment, that is, in the reasonable business judgment of the Borrower, no longer economically practicable or commercially desirable to maintain or used or useful in the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any issuance of Equity Interests in the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) to the extent constituting a sale, transfer, lease, or other disposition of an asset, any Restricted Payment made pursuant to <u>Section</u> <u>8.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) sales, transfers, or other dispositions of Investments to the extent permitted under <u>Section</u> <u>8.6</u> in joint ventures to the extent required by, or made pursuant to customary buy/sell arrangements between, the parties set forth in joint venture arrangements and similar binding agreements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) dispositions of Property to the extent that: (i) such Property is exchanged for credit against the purchase price of substantially similar replacement Property; or (ii) the proceeds of such disposition are promptly applied to the purchase price of substantially similar replacement Property.

"*<u>Assignment Agreement</u>*" shall mean an assignment agreement entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by <u>Section</u> <u>11.5(b)(iii</u>)) and accepted by the Administrative Agent, in substantially the form of <u>Exhibit 11.5</u> or any other form (including electronic documentation generated by MarkitClear or other electronic platform) approved by the Administrative Agent.

"*<u>Attributable Principal Amount</u>*" shall mean, in the case of: (a) Capital Leases, the amount of Capital Lease obligations determined in accordance with GAAP; (b) Synthetic Leases, an amount determined by capitalization of the remaining lease payments thereunder as if it were a Capital Lease determined in accordance with GAAP; (c) Securitization Transactions, the outstanding principal amount of such financing, after taking into account reserve amounts and making appropriate adjustments, determined by the Administrative Agent in its reasonable judgment; and (d) Sale and Leaseback Transactions, the present value (discounted in accordance with GAAP at the debt rate implied in the applicable lease) of the obligations of the lessee for rental payments during the term of such lease.

"*<u>Authorized Officer</u>*" shall mean, as applied to any Person, any individual holding the position of chairman of the board (if an officer), chief executive officer, president or one (1) of its vice presidents (or the equivalent thereof), chief financial officer or treasurer and, *solely* for purposes of making the certifications required under <u>Section</u> <u>5.1(b)(ii</u>) and <u>Section</u> <u>5.1(c</u>), any secretary or assistant secretary.

"*<u>Auto Borrow Agreement</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.2(b)(vi</u>).

------

"*<u>Automatic Acceleration Event of Default</u>* shall mean an Event of Default pursuant to <u>Section</u> <u>9.1(f</u>) or <u>Section</u> <u>9.1(g</u>).

"*<u>Available Tenor</u>*" shall mean, as of any date of determination and with respect to the then-current Benchmark, as applicable, any tenor for such Benchmark or any payment period for interest calculated with reference to such Benchmark, as applicable, that is, or may be, used for determining the length of any interest period (including any Interest Period) pursuant to this Agreement as of such date of determination.

"*<u>Bail</u>*<u>-</u>*<u>In Action</u>*" shall mean the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"*<u>Bail</u>*<u>-</u>*<u>In Legislation</u>*" shall mean: (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing Law for such EEA Member Country from time to time which is described in the applicable EU Bail-In Legislation Schedule; and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act of 2009 (as amended from time to time), and any other Law applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions, or any affiliates of any of the foregoing (other than through liquidation, administration, or other insolvency proceedings).

"*<u>Bankruptcy Code</u>*" shall mean Title 11 of the United States Code entitled "*Bankruptcy*," as now and hereafter in effect, or any successor statute.

"*<u>Base Rate</u>*" shall mean, for any date of determination, a rate per annum equal to the *highest* of (a) the rate of interest that Regions announces from time to time as its prime lending rate, as in effect from time to time (the "*<u>Prime Rate</u>*"), (b) the Federal Funds Rate, as in effect from time to time, *plus* one-half of one percent (0.50%) per annum, (c) Term SOFR in effect on such day for a forward-looking Interest Period of one (1) month commencing on such day, *plus* one percent (1.00%) per annum (with any change(s) in any of the rates described in the foregoing <u>clauses (a</u>) through (<u>c</u>) to be effective as of the date of any such change(s) in such rates), and (d) the Floor. The Prime Rate is a reference rate and does *not* necessarily represent the lowest or best rate actually charged to any customer. The Administrative Agent and the Lenders may make commercial loans, or other loans, at rates of interest at, above, or below the Prime Rate. Any change(s) to the Base Rate due to a change in the Prime Rate, the Federal Funds Rate and/or Term SOFR, as the case may be, will be deemed to be effective from, and including, the date of effectiveness of such change(s) to the Prime Rate, the Federal Funds Rate and/or Term SOFR. For the avoidance of doubt and notwithstanding anything to the contrary in the foregoing, if, at any time, the Base Rate is *less than* the Floor, then the Base Rate shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents.

"*<u>Base Rate Borrowing</u>*" shall mean a Borrowing, the Loans in respect of which bear interest at a rate determined by reference to the Base Rate (including, for the avoidance of doubt, pursuant to clause (c) of the definition of "*Base Rate*" above).

"*<u>Base Rate Loan</u>*" shall mean a Loan bearing interest at a rate determined by reference to the Base Rate (including, for the avoidance of doubt, pursuant to clause (c) of the definition of "*Base Rate*" above).

"*<u>Benchmark</u>*" shall mean, as of the Closing Date, the SOFR Reference Rate for any applicable tenor; <u>provided</u>, <u>that</u>, if any Benchmark Replacement has been incorporated into this Agreement after the Closing Date pursuant to <u>Section</u> <u>3.1</u>, then "*Benchmark*" shall mean the applicable Benchmark Replacement.

------

"*<u>Benchmark Illegality</u>* <u>/</u> *<u>Impracticability Event</u>*" shall mean the occurrence of one (1) or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the making, maintaining and/or continuation of the then-current Benchmark by any Lender shall have become unlawful as a result of compliance by such Lender in good faith with any law, treaty, governmental rule, regulation, guideline or order (or would conflict with any such treaty, governmental rule, regulation, guideline or order *not* having the force of law, even though the failure to comply therewith would *not* be unlawful);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any Benchmark, any successor administrator of the published screen rate for such Benchmark, or any Governmental Authority having jurisdiction over the Administrative Agent or the administrator of such Benchmark, shall have made a public statement establishing a specific date (whether expressly or by virtue of such public statement) after which an Available Tenor of such Benchmark, or the published screen rate for such Benchmark, shall or will no longer be representative or made available, or otherwise used for determining the interest rate of loans, or shall or will otherwise cease; <u>provided</u>, <u>that</u>, at the time of such statement, there is no successor administrator that is satisfactory to the Administrative Agent that will continue to provide such representative interest periods of such Benchmark after such specific date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the making, maintaining and/or continuation of the then-current Benchmark by any Lender has become impracticable, as a result of contingencies occurring after the Closing Date that materially and adversely affect the ability of a Lender to make, maintain and/or continue its Loans at the then-current Benchmark (including, without limitation, because the published screen rate for such Benchmark in a relevant tenor is *not* available or published on a current basis and such circumstances are unlikely to be temporary); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) with respect to any Lender, the then-current Benchmark (including any related mathematical or other adjustments thereto) does or will *not* adequately and fairly reflect the cost to such Lender of making, funding and/or maintaining its Loans at the then-current Benchmark.

For the avoidance of doubt, a "*Benchmark Illegality* / *Impracticability Event*" shall be deemed to have occurred, with respect to any Benchmark, if a public statement or publication of information as described above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"*<u>Benchmark Replacement</u>*" shall mean Daily Simple SOFR for any payment period for interest calculated that can be determined by the Administrative Agent, without any amendment to, or further action or consent of any other party to, this Agreement or any other Credit Document.

"*<u>Benchmark Replacement Adjustment</u>*" shall mean, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or equal to zero), that has been selected by the Administrative Agent and the Borrower, giving due consideration to: (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body; or (b) any evolving, or then-prevailing, market convention for determining a spread adjustment, or a method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

------

"*<u>Benchmark Replacement Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.1(g)(i</u>).

"*<u>Beneficial Ownership Certification</u>*" shall have the meaning specified for such term in <u>Section</u> <u>5.1(k</u>).

"*<u>Benefit Plan</u>*" shall mean any of: (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA; (b) a "plan" as defined in, and subject to, Section 4975 of the Internal Revenue Code; or (c) any Person whose assets include (for purposes of ERISA Section 3(42), or otherwise for purposes of Title I of ERISA or Section 4975 of the Internal Revenue Code) the assets of any such "employee benefit plan" or "plan".

"*<u>BHC Act Affiliate</u>*" of a party shall mean an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. § 1841(k)) of such party.

"*<u>Borrower</u>*" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"*<u>Borrowing</u>*" shall mean, as the context may require, a borrowing consisting of: (a) Loans of the same Class and Type, made, converted or continued on the same date, and, in the case of SOFR Loans, as to which a single Interest Period is in effect; or (b) a Swingline Loan.

"*<u>Business Day</u>*" shall mean any day, other than a Saturday, a Sunday, or any other day that is a legal holiday under the laws of the state of New York or is a day on which banking institutions located in such state are authorized, or are required by Applicable Law or any Governmental Act, to close; <u>provided</u>, <u>that</u>, with respect to notices and determinations in connection with, and payments of principal and/or interest on, SOFR Loans, such day is also a U.S. Government Securities Business Day.

"*<u>Capital Expenditures</u>*" shall mean, with respect to any Person for any period of measurement, the *sum of* (without duplication) (a) the additions to property, plant and equipment and other capital expenditures of such Person that are (or would be required to be) set forth on a consolidated statement of cash flows of such Person for such period, prepared in accordance with GAAP, *plus* (b) the Attributable Principal Amount of Capital Leases incurred by such Person during such period, but *excluding* any such expenditures to the extent that such expenditures are: (i) made with the Net Cash Proceeds of any Asset Sale or Involuntary Disposition to the extent that such expenditures are used to purchase Property that is the same as, or substantially functionally equivalent to, the Property subject to such Asset Sale or Involuntary Disposition (and including, for purposes of clarity, the purchase price of replacement Property that is purchased, to the extent that the gross amount of such purchase price is reduced by the credit granted by the seller of such replacement Property for such existing Property being traded in at such time); or (ii) part of the aggregate amounts payable in connection with, or constitute other consideration for, any Permitted Acquisition or other Investment permitted under this Agreement (whether consummated during, or prior to, such period of measurement).

"*<u>Capital Lease</u>*" shall mean, as applied to any Person, any lease of any Property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person.

------

"*<u>Captive Reinsurance Companies</u>*" shall mean, collectively: (a) each of (i) Bobcat Re Ltd., (ii) Canal Re Ltd., (iii) Pompano Re Ltd., and (iv) Tarpon Ltd.; and (b) any controlled Affiliate of any Credit Party that is primarily engaged in the provision of reinsurance services to other Credit Parties, Subsidiaries and/or Regulated Entities.

"*<u>Cash Collateralize</u>*" shall mean to pledge and deposit with, or deliver to, the Administrative Agent, the Collateral Agent, the Issuing Bank or the Swingline Lender, as applicable, as collateral for the Letter of Credit Obligations or Swingline Loans, as applicable, or obligations of Lenders to fund participations in respect thereof, cash or deposit account balances or, if the Administrative Agent, the Collateral Agent, the Issuing Bank or Swingline Lender, as applicable, may agree in their sole discretion, other credit support, in each case, pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent, the Collateral Agent, the Issuing Bank and/or the Swingline Lender, as applicable. "*Cash Collateral*" shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.

"*<u>Cash Equivalents</u>*" shall mean, as of any date of determination, any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) marketable securities (i) issued or directly and unconditionally guaranteed as to interest and principal by the United States government, or (ii) issued by any agency of the United States the obligations of which are backed by the full faith and credit of the United States, in each case of the foregoing <u>clauses (a)(i</u>) and (<u>a)(ii</u>), maturing within one (1) year after such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) marketable direct obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof, in each case, maturing within one (1) year after such date and having, at the time of the acquisition thereof, a rating of *at least* A–1 from S&P or *at least* P–1 from Moody's;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) commercial paper maturing *no more than* one (1) year from the date of creation thereof and having, at the time of the acquisition thereof, a rating of *at least* A–1 from S&P or *at least* P–1 from Moody's;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) certificates of deposit or bankers' acceptances maturing within one (1) year after such date and issued or accepted by any Lender or by any commercial bank organized under the laws of the United States, or of any state thereof or the District of Columbia, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is *at least* "adequately capitalized" (as defined in the regulations of its primary federal banking regulator); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has Tier 1 capital (as defined in such regulations) of *not less than* One-Hundred Million Dollars ($100,000,000); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) shares of any money market mutual fund that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) has substantially all of its assets invested continuously in the types of investments referred to in <u>clauses (a</u>) and (<u>b</u>) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has net assets of *not less than* Five-Hundred Million Dollars ($500,000,000); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) has the highest rating obtainable from either S&P or Moody's.

------

"*<u>CFC</u>*" shall mean a "controlled foreign corporation" within the meaning of Section 957 of the Code.

"*<u>Change in Control</u>*" shall mean the occurrence of one (1) or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Permitted Holders, taken together, shall cease to own and control, beneficially and of record, directly or indirectly, *at least* forty-four percent (44.0%) of the outstanding Voting Stock in the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) David Flitman, an individual resident of the state of Florida, shall cease to be the duly appointed, acting chief executive officer of the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the acquisition of ownership, directly or indirectly, beneficially or of record, by any "person" or "group" (within the meaning of the Exchange Act, as in effect on the Closing Date), other than the Permitted Holders, of thirty percent (30.0%) or more of the outstanding Voting Stock in the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) except pursuant to a transaction that is expressly permitted under this Agreement and the other Credit Documents, the Borrower shall cease to possess the right to elect (through contract, ownership of Voting Stock, or otherwise), at all times, a majority of the board of directors or managers (or equivalent governing body) of each of its Subsidiaries and/or to direct the management policies and decisions of each such Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) except pursuant to a transaction that is expressly permitted under this Agreement and the other Credit Documents, any Person that, on the Closing Date or at any time thereafter, is: (i) a Captive Reinsurance Company shall cease to be a Captive Reinsurance Company pursuant to clause (b) of the definition of "*Captive Reinsurance Company*" above; or (ii) a Qualifying Reciprocal Entity shall thereafter cease to be a Qualifying Reciprocal Entity pursuant to clause (b) of the definition of "*Qualifying Reciprocal Entity*" below; or (iii) a Regulated Subsidiary (other than a Captive Reinsurance Company) shall cease to be a Regulated Subsidiary (other than a Captive Reinsurance Company) pursuant to clause (b) of the definition of "*Regulated Subsidiary*" below.

"*<u>Change in Law</u>*" shall mean the occurrence, after the Closing Date, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty, or in the administration, interpretation, implementation or application thereof, by any Governmental Authority, or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; <u>provided</u>, <u>that</u>, notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith, (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, and (iii) all requests, rules, guidelines or directives issued by a Governmental Authority in connection with a Lender's submission or re-submission of a capital plan under 12 C.F.R. § 225.8 or a Governmental Authority's assessment thereof shall, in each case, be deemed to be a "*Change in Law*", regardless of the date enacted, adopted or issued.

"*<u>Class</u>*", when used in reference to any Loan or Borrowing, shall refer to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Swingline Loans, the Term Loan A, the Delayed Draw Term Loan, or a specified Incremental Term Loan, and, when used in reference to any Commitment, refers to whether such Commitment is a Revolving Commitment, a Swingline Commitment, a Term Loan A Commitment, a DDTL Commitment, or an Incremental Term Loan Commitment in respect of a specified Incremental Term Loan.

------

"*<u>Closing Date</u>*" shall have the meaning provided for such term in the introductory paragraph to this Agreement.

"*<u>Closing Date Distribution</u>*" shall mean a one-time tax distribution of proceeds of the Borrowing of the Term Loan A on the Closing Date, in an amount of up to Thirty-One Million Eight-Hundred Ninety-Four Thousand Nine-Hundred Dollars ($31,894,900), by the Borrower to the owners of its outstanding Equity Interests in accordance with the terms of this Agreement.

"*<u>Collateral</u>*" shall mean the collateral identified in, and at any time covered by, the Collateral Documents.

"*<u>Collateral Agent</u>*" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"*<u>Collateral Documents</u>*" shall mean, collectively, the Security Agreement, the Mortgages, and all other instruments, documents and/or agreements delivered by any Credit Party pursuant to this Agreement or any of the other Credit Documents in order to grant to the Collateral Agent, for the benefit of the holders of the Obligations, a Lien on any real, personal or mixed Property of any Credit Party as security for the Obligations.

"*<u>Combined Statutory Surplus</u>*" shall mean, as of any date of determination, the aggregate Statutory Surplus of all of the Regulated Entities that are *not* Captive Reinsurance Companies, taken together on a combined basis.

"*<u>Commitment Fee</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.10(a</u>).

"*<u>Commitment Percentage</u>*" shall mean, for each Lender and with respect to: (a) any Revolving Loans (or any Borrowing thereof) or any Swingline Loans (or any Borrowing thereof), such Lender's Revolving Commitment Percentage; (b) the Term Loan A (or any Borrowing thereof), such Lender's Term Loan A Commitment Percentage; (c) the Delayed Draw Term Loan (or any Borrowing of an advance thereunder), such Lender's DDTL Commitment Percentage; and (d) any Incremental Term Loan (or any Borrowing thereof or thereunder), such Lender's Incremental Term Loan Commitment Percentage in respect of such Incremental Term Loan.

"*<u>Commitments</u>*" shall mean, collectively, the Revolving Commitments, the Term Loan A Commitments, the DDTL Commitments, and any Incremental Term Loan Commitments.

"*<u>Commodity Exchange Act</u>*" shall mean the Commodity Exchange Act (7 U.S.C. § 1 *et seq*.), as amended.

"*<u>Competitor</u>*" shall mean any competitor of any Credit Party, Subsidiary or other Regulated Entity that is in the same or a similar line of business as any Credit Party, Subsidiary or other Regulated Entity.

"*<u>Compliance Certificate</u>*" shall mean a Compliance Certificate substantially in the form of <u>Exhibit 7.1(c</u>).

------

"*<u>Conforming Changes</u>*" shall mean, with respect to (a) the use and/or administration of, and/or any conventions associated with, SOFR, the SOFR Reference Rate for any applicable tenor and/or any SOFR-Based Rate (for any Interest Period, as applicable), or (b) the use, administration, adoption and/or implementation of, and/or any conventions associated with, any Benchmark Replacement, in each case of the foregoing <u>clauses (a</u>) and (<u>b</u>), any technical, administrative and/or operational change(s) (including, without limitation, any such change(s) to the definition of "*Base Rate*" above, the definition of "*Business Day*" above, the definition of "*Daily Simple SOFR*" below, the definition of "*Interest Period*" below (or any similar or analogous definition, or the addition of an applicable concept of "interest period"), the definition of "*SOFR*" below, the definition of "*SOFR Reference Rate*" below, the definition of "*Term SOFR*" below, the definition of "*U*.*S*. *Government Securities Business Day*" below, the timing and frequency of determining rates and making payments of interest, the timing of delivery of any Funding Notices (or other requests for borrowing of Loans), the timing of delivery of any notices of optional reduction or termination of any Commitment(s), the timing of delivery of any notices of optional or voluntary prepayment of any Loans (or any other notices of prepayment of any Loans), the timing of delivery of any Conversion / Continuation Notices (or other notices of the continuation or conversion of Loans), the applicability and length of lookback periods, the applicability of <u>Section</u> <u>3.1(c</u>), and any other technical, administrative and/or operational matters) that the Administrative Agent determines, in its reasonable discretion, may be appropriate to reflect the adoption and/or implementation of any such rate and/or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent determines, in its reasonable discretion, that (i) the adoption and/or implementation of, or of any portion of, such market practice is *not* administratively feasible for the Administrative Agent, or (ii) no market practice for the administration of any such rate exists, then, in each case of the foregoing <u>clauses (i</u>) and (<u>ii</u>), permit the use and administration thereof by the Administrative Agent in such other manner of administration as the Administrative Agent determines is reasonably necessary in connection with the administration of this Agreement and the other Credit Documents).

"*<u>Connection Income Taxes</u>*" shall mean Other Connection Taxes that are imposed on, or measured by, net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"*<u>Consolidated EBITDA</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, an amount equal to the *sum of*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Consolidated Net Income (*exclusive*, for purposes of clarity, of Regulated Entities) for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the following, in each case, *solely* to the extent deducted in calculating such Consolidated Net Income (and without duplication):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Consolidated Interest Charges for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the provision for federal, state, local and foreign income taxes payable by the Credit Parties and Subsidiaries (other than Regulated Entities) for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) depreciation and amortization expense for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) non-cash stock compensation issued for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all out-of-pocket fees, costs and expenses payable, or otherwise incurred, in connection with the closing of this Agreement and the other Credit Documents; <u>provided</u>, <u>that</u>, such fees, costs and expenses are payable or otherwise incurred *prior* to the date that is three (3) months after the Closing Date; *plus*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the aggregate amount of managing general agency, service company or attorney-in-fact fees that are due and owing, or that have already been paid, by any Regulated Entity, on the one hand, to any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the other hand, pursuant to any managing general agent, service company or attorney-in-fact agreement entered into between any Credit Party or Subsidiary (other than any Regulated Subsidiary) and any Regulated Entity, but which have been waived in accordance with this Agreement by the Credit Party or Subsidiary (other than a Regulated Subsidiary) to whom such fees would have been, or, in the case of any such fees that have already been paid and are subsequently so waived, have been, paid, in each case of the foregoing of this <u>clause (b)(vi</u>), to the extent supported (so long as any such documentation is readily available to, or preparable by, the Credit Parties, Subsidiaries and other Regulated Entities) by documentation provided, and reasonably acceptable, to the Administrative Agent; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) other non-cash charges and non-cash expenses reducing such Consolidated Net Income, including any write-offs or write-downs (but *excluding* any such non-cash charge or non-cash expense to the extent that such non-cash charge or non-cash expense (A) represents an accrual of, or reserve for, cash charges or cash expenses in any future period, or amortization of a prepaid cash expense or cash charge that was paid in a prior period but *not* included in the calculation of Consolidated EBITDA for such prior period, or (B) is an expense or charge related to accounts receivable or other current assets); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all non-cash items increasing such Consolidated Net Income (but *excluding* any items that represent the reversal of an accrual of, or reserve for, anticipated cash charges or cash expenses that reduced Consolidated EBITDA in any prior period).

"*<u>Consolidated Fixed Charge Coverage Ratio</u>*" shall mean, as of any date of determination, the ratio of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Consolidated EBITDA; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Consolidated Unfinanced Capital Expenditures; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Consolidated Taxes; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate amount of Restricted Payments paid in cash by the Credit Parties and Subsidiaries (other than Regulated Entities) to Persons other than Credit Parties (but *excluding* the Closing Date Distribution); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the aggregate amount, determined on a cost basis, of Investments (including, without limitation, Investments consisting of the forgiveness of fees as described in the last sentence of the definition of "*Investments*" below) made by any Credit Party in any Person that is *not* itself a Credit Party (including, for purposes of clarity, in any Regulated Entity), but *excluding* any such Investments to the extent financed with the proceeds of Loans (including Revolving Loans) or other long-term, non-revolving Indebtedness, net of the amount (if any) of Returned Reinsurance Investments received by the Credit Parties;

all as determined in accordance with GAAP or SAP (as applicable); to

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Consolidated Fixed Charges,

in each case of the foregoing, measured on a consolidated basis for the Credit Parties and Subsidiaries (other than Regulated Entities) for the Trailing Period most recently ended as of such date; <u>provided</u>, <u>that</u>, notwithstanding anything to the contrary in the foregoing or elsewhere in this Agreement or any other Credit Document, the calculation of Consolidated Fixed Charges, for purposes of the calculation of the Consolidated Fixed Charge Coverage Ratio measured for the Trailing Period ending:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) March 31, 2025, shall be deemed to equal the *product of*: (A) actual Consolidated Fixed Charges paid in cash, measured for the period of one (1) Fiscal Quarter then ended; *multiplied by* (B) four (4);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) June 30, 2025, shall be deemed to equal the *product of*: (A) actual Consolidated Fixed Charges paid in cash, measured for the period consisting of the two (2) consecutive full Fiscal Quarters then ended; *multiplied by* (B) two (2); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) September 30, 2025, shall be deemed to equal the *product of*: (A) actual Consolidated Fixed Charges paid in cash, measured for the period consisting of the three (3) consecutive full Fiscal Quarters then ended; *multiplied by* (B) four thirds (4/3).

"*<u>Consolidated Fixed Charges</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, an amount equal to the *sum of*: (a) Consolidated Interest Charges for such period; *plus* (b) Consolidated Scheduled Funded Debt Payments for such period.

"*<u>Consolidated Funded Debt</u>*" shall mean all Funded Debt of the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis determined in accordance with GAAP; <u>provided</u>, <u>that</u>, for the avoidance of doubt, "*Consolidated Funded Debt*" shall include any intercompany Indebtedness owing by any Credit Party or Subsidiary (other than a Regulated Entity) to any Regulated Entity.

"*<u>Consolidated Interest Charges</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, an amount equal to the *sum of*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all interest, premium payments, debt discount, fees, charges, and related expenses in connection with Funded Debt of a type described in clauses (a) or (b) of the definition of "*Funded Debt*" below (other than, for purposes of clarity, payments in respect of Earn Out Obligations), in each case, to the extent treated as interest in accordance with GAAP; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the portion of rent expense with respect to such period under Capital Leases that is treated as interest in accordance with GAAP; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the implied interest component of Synthetic Leases with respect to such period;

<u>provided</u>, <u>that</u>, for the avoidance of doubt, "*Consolidated Interest Charges*" shall include all interest, premium, payments, debt discount, fees, charges and related expenses in connection with any intercompany Indebtedness owing by any Credit Party or Subsidiary (other than a Regulated Entity) to any Regulated Entity.

------

"*<u>Consolidated Leverage Ratio</u>*" shall mean, as of any date of determination, the ratio of: (a) Consolidated Funded Debt as of such date; to (b) Consolidated EBITDA, measured for the most recently ended Trailing Period.

"*<u>Consolidated Net Income</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (including or excluding Regulated Entities, as so specified textually in the relevant instance of calculation) on a consolidated basis, the net income of the Credit Parties and Subsidiaries (but *excluding*, in any event, extraordinary gains) for such period, as determined in accordance with GAAP; <u>provided</u>, <u>that</u>, for purposes of any determination of Consolidated Net Income that is exclusive of Regulated Entities, any dividends or other distributions paid by a Regulated Entity to another Credit Party or Subsidiary during the relevant period of measurement shall be disregarded and shall *not*, in any event, be considered net income of any Credit Party or Subsidiary (other than such Regulated Entity) for such period.

"*<u>Consolidated Scheduled Funded Debt Payments</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis, the *sum of* all scheduled payments of principal on Consolidated Funded Debt, as determined in accordance with GAAP. For purposes of this definition, "*<u>scheduled payments of principal</u>*" shall: (a) be determined without giving effect to any reduction of such scheduled payments resulting from the application of any voluntary or mandatory prepayments made during the applicable period; (b) be deemed to include payments with respect to the Attributable Principal Amount in respect of Capital Leases, Securitization Transactions, Sale and Leaseback Transactions and Synthetic Leases; and (c) *not* include any voluntary prepayments or mandatory prepayments required pursuant to <u>Section</u> <u>2.11</u>.

"*<u>Consolidated Taxes</u>*" shall mean, for any period of measurement, the aggregate amount of all Taxes paid in cash, as determined in accordance with GAAP, by the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis; <u>provided</u>, <u>that</u>, "*Consolidated Taxes*" shall include all Taxes paid in cash by the Credit Parties and Subsidiaries (other than Regulated Entities) on account of, on behalf of, or attributable to, any Regulated Entity to the extent that such Regulated Entity has *not* made Restricted Payments to the party paying such Taxes pursuant to <u>Section</u> <u>8.4(a</u>) within two (2) months of such tax liabilities becoming due and payable, or actually being paid in cash, by the paying party.

"*<u>Consolidated Unfinanced Capital Expenditures</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, the aggregate amount actually paid in cash by the Credit Parties and Subsidiaries (other than Regulated Entities) on account of Capital Expenditures, but *excluding* Capital Expenditures to the extent financed with the proceeds of Loans (including Revolving Loans) or other long-term, non-revolving Indebtedness.

"*<u>Contractual Obligation</u>*" shall mean, as applied to any Person, any provision of any Security issued by that Person or of any indenture, mortgage, deed of trust, contract, undertaking, agreement or other instrument to which that Person is a party or by which it, or any of its Properties, is bound, or to which it, or any of its Properties, is otherwise subject.

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

"*<u>Controlled Account Agreement</u>*" shall mean any tri-party agreement by and among a Credit Party, the Collateral Agent, and a depositary bank or securities or commodities intermediary (as applicable) at which such Credit Party maintains one (1) or more deposit, disbursement, lockbox, securities and/or commodities accounts granting "control" (as defined in the UCC) to the Collateral Agent with respect to such account(s), in each case, in form and substance reasonably satisfactory to the Collateral Agent.

------

"*<u>Conversion</u>* <u>/</u> *<u>Continuation Date</u>*" shall mean the effective date of a continuation or conversion, as the case may be, as set forth in the applicable Conversion / Continuation Notice.

"*<u>Conversion</u>* <u>/</u> *<u>Continuation Notice</u>*" shall mean a Conversion / Continuation Notice substantially in the form of <u>Exhibit 2.8</u>.

"*<u>Covered Entity</u>*" shall mean any of the following: (a) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §–252.82(b); (b) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §–47.3(b); and (c) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §–382.2(b).

"*<u>Covered Party</u>*" shall mean have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

"*<u>Credit Date</u>*" shall mean, with respect to any Credit Extension, the date on which such Credit Extension is made.

"*<u>Credit Document</u>*" shall mean any of this Agreement, each Note, each Issuer Document, the Collateral Documents, any Guarantor Joinder Agreement, the Fee Letter, any Auto Borrow Agreement, any Incremental Facility Agreement, any documents or certificates executed by any Credit Party in favor of the Issuing Bank relating to Letters of Credit, and, to the extent evidencing or securing the Obligations, all other documents, instruments or agreements executed and delivered by any Credit Party for the benefit of the Administrative Agent, the Collateral Agent, the Issuing Bank or any Lender in connection herewith or therewith, and including, for the avoidance of doubt, any Guarantor Joinder Agreement (but specifically *excluding* any Secured Swap Agreements and any Secured Treasury Management Agreements).

"*<u>Credit Extension</u>*" shall mean the making of a Loan or the issuing or extending of a Letter of Credit.

"*<u>Credit Parties</u>*" shall mean, collectively, the Borrower and each Guarantor.

"*<u>Cure Period</u>*" shall have the meaning specified for such term in <u>Section</u> <u>9.4(a</u>).

"*<u>Cure Proceeds</u>*" shall have the meaning specified for such term in <u>Section</u> <u>9.4(a</u>).

"*<u>Daily Simple SOFR</u>*" shall mean, for any date of determination, SOFR, with the conventions for such rate (which shall include a lookback) being established by the Administrative Agent in accordance with the conventions for such rate selected or recommended by the Relevant Governmental Body for determining "*Daily Simple SOFR*" for business loans; <u>provided</u>, <u>that</u>, (a) if the Administrative Agent decides that any such convention is *not* administratively feasible for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion, and (b) if, at any time, Daily Simple SOFR (determined in accordance with such convention(s)) is *less than* the Floor, then Daily Simple SOFR shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents.

"*<u>DDTL Amortization Payment Amount</u>*" shall mean, at any time with respect to each advance under the Delayed Draw Term Loan during the DDTL Availability Period (to the extent made), an amount equal to the *quotient* of: (a) the *product of* (i) the aggregate original principal amount of such advance under the Delayed Draw Term Loan, *multiplied by* (ii) ten percent (10.0%); *divided by* (b) four (4).

------

"*<u>DDTL Availability Period</u>*" shall mean the period from, but *excluding*, the Closing Date to, but *excluding*, the DDTL Commitment Termination Date.

"*<u>DDTL Commitment</u>*" shall mean, with respect to each Lender, the obligation of such Lender to advance its respective portion of principal under the Delayed Draw Term Loan, in up to five (5) separate advances during the DDTL Availability Period, in each case pursuant to <u>Section</u> <u>2.1(c</u>), in an aggregate original principal amount advanced by such Lender during the DDTL Availability Period (for all such advances, taken together) *not to exceed* the applicable amount set forth with respect to such Lender as such Lender's "*DDTL Commitment*" on <u>Appendix A</u>, subject to any increase(s), adjustment(s) and/or reduction(s) pursuant to the terms and conditions of this Agreement.

"*<u>DDTL Commitment Percentage</u>*" shall mean, with respect to each Lender at any time, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the *sum of* (i) the amount of such Lender's respective DDTL Commitment (if any) in effect at such time, *plus* (ii) the aggregate principal balance of the portion of the Delayed Draw Term Loan advanced by such Lender that is outstanding at such time; and (b) the *denominator* of which is the *sum of* (i) the Aggregate DDTL Commitment Amount in effect at such time, *plus* (ii) the aggregate outstanding principal balance of the Delayed Draw Term Loan at such time. The DDTL Commitment Percentages of each Lender as of the First Amendment Effective Date are set forth on <u>Appendix A</u>.

"*<u>DDTL Commitment Termination Date</u>*" shall mean the *earliest* to occur of: (a) the first (1<sup>st</sup>) Business Day after the date that is the second (2<sup>nd</sup>) anniversary of the Closing Date; (b) the date on which five (5) separate advances under the Delayed Draw Term Loan shall have been made in accordance with this Agreement; (c) the date on which the Borrower shall have provided written notice to the Administrative Agent of its election to terminate the Aggregate DDTL Commitments in accordance with <u>Section</u> <u>2.11(b</u>); and (d) the date on which the Aggregate DDTL Commitments shall have been terminated, and/or all amounts outstanding under this Agreement shall have been declared, or automatically have become, due and payable, in each case of the foregoing of this <u>clause (d</u>), pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise).

"*<u>Debt Transaction</u>*" shall mean, with respect to any Credit Party, any Subsidiary or any other Regulated Entity, any sale, issuance, placement, assumption or guaranty of Funded Debt, whether or not evidenced by a promissory note or other written evidence of Indebtedness, except for Funded Debt permitted to be incurred and remain outstanding after the Closing Date pursuant to <u>Section</u> <u>8.1</u>.

"*<u>Debtor Relief Laws</u>*" shall mean the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect.

"*<u>Default</u>*" shall mean a condition or event that, after notice or lapse of time or both, would constitute an Event of Default.

"*<u>Default Rate</u>*" shall mean an interest rate equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to Obligations (including, for purposes of clarity, Loans bearing interest at the Base Rate determined pursuant to clause (c) of the definition of "*Base Rate*" above) other than SOFR Loans and the Letter of Credit Fee, the Base Rate *plus* the Applicable Margin, if any, applicable to such Obligations *plus* two percent (2.0%) per annum;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to SOFR Loans, Term SOFR *plus* the Applicable Margin, if any, applicable to SOFR Loans *plus* two percent (2.0%) per annum; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to the Letter of Credit Fee, the Applicable Margin for the Letter of Credit Fee *plus* two percent (2.0%) per annum.

"*<u>Default Right</u>*" shall have the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§–252.81, 47.2 or 382.1, as applicable.

"*<u>Defaulting Lender</u>*" shall mean, subject to <u>Section</u> <u>2.16(b</u>), any Lender that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has failed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fund all, or any portion, of its Loans within two (2) Business Days of the date such Loans were required to be funded hereunder, unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such

Lender's determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has *not* been satisfied; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) pay to the Administrative Agent, the Collateral Agent, the Issuing Bank, the Swingline Lender, or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in any Letters of Credit or Swingline Loans) within two (2) Business Days of the date when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has notified the Borrower, the Administrative Agent, the Issuing Bank, or the Swingline Lender in writing that it does *not* intend to comply with its funding obligations hereunder, or has made a public statement to that effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) has failed, within three (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (<u>provided</u>, <u>that</u>, such Lender shall cease to be a Defaulting Lender pursuant to this <u>clause (c</u>) upon receipt of such written confirmation by the Administrative Agent and the Borrower); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) has, or has a direct or indirect parent company that has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) become the subject of a proceeding under any Debtor Relief Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) become the subject of a Bail-In Action;

------

<u>provided</u>, <u>that</u>, a Lender shall *not* be a Defaulting Lender *solely* by virtue of the ownership or acquisition of any equity interest in that Lender, or any direct or indirect parent company thereof, by a Governmental Authority, so long as such ownership interest does *not* result in or provide such Lender with immunity from the jurisdiction of courts within the United States, or from the enforcement of judgments or writs of attachment on its assets, or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of <u>clauses (a</u>) through (<u>d</u>) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to <u>Section</u> <u>2.16(b</u>)) upon delivery of written notice of such determination to the Borrower, the Issuing Bank, the Swingline Lender and each Lender.

"*<u>Delayed Draw Term Loan</u>*" shall have the meaning provided for such term in <u>Section</u> <u>2.1(c</u>). The Delayed Draw Term Loan may also be referred to in this Agreement and the other Credit Documents as the "*<u>DDTL</u>*".

"*<u>Disqualified Equity Interests</u>*" shall mean, with respect to any Person, any Equity Interests in such Person that, by their terms (or by the terms of any security or other Equity Interests into which they are convertible, or for which they are exchangeable), or upon the happening of any event or condition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) matures (but *excluding* any maturity as a result of an optional redemption by the issuer thereof the exercise of which, by the terms of such Equity Interests, is contingent upon such redemption *not* being prohibited by this Agreement or any of the other Credit Documents) or is mandatorily redeemable (other than (i) *solely* in exchange for Equity Interests that are *not* otherwise Disqualified Equity Interests, or (ii) as a result of a redemption that, by the terms of such Equity Interests, is contingent upon such redemption *not* being prohibited by this Agreement or any of the other Credit Documents), pursuant to a sinking fund obligation or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is redeemable at the option of the holder thereof (other than (i) *solely* in exchange for Equity Interests that are *not* otherwise Disqualified Equity Interests, or (ii) as a result of a redemption that, by the terms of such Equity Interests, is contingent upon such redemption *not* being prohibited by this Agreement or any of the other Credit Documents), in whole or in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) provides for the scheduled payment of dividends in cash; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is or becomes convertible into, or exchangeable for, Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests;

in each case of the foregoing <u>clauses (a</u>) through (<u>d</u>), on or prior to the date that is one-hundred eighty one (181) calendar days after the Latest Maturity Date; <u>provided</u>, <u>that</u>, (I) to the extent that any such Equity Interests are issued pursuant to a Benefit Plan for the benefit of any Credit Party or Subsidiary to any employees of any Credit Party or Subsidiary, such Equity Interests shall *not* constitute Disqualified Equity Interests *solely* as a result of such Equity Interests being required to be repurchased by a Credit Party or Subsidiary in order to satisfy requirements under applicable Law, and (II) in the case of the foregoing <u>clauses (a</u>) and (<u>b</u>), if any Equity Interests constitute Disqualified Equity Interests as a result of the occurrence of a Change in Control, the consummation of an Asset Sale or other disposition, or the consummation of any other Specified Transaction or other transaction, then such Equity Interests shall *not* constitute Disqualified Equity Interests for purposes of this Agreement and the other Credit Documents so long as any rights of the holder(s) thereof upon the occurrence of such a Change in Control, the consummation of such an Asset Sale or other disposition, or the consummation of such other Specified Transaction(s) or other transaction(s) are, in any such case, subject to the prior occurrence of the Payment in Full of all Obligations.

------

"*<u>Disqualified Institution</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) those Competitors and other Persons identified on a list provided by the Borrower to the Administrative Agent and made available to the Lenders on the Closing Date (the "*<u>Disqualified Institution List</u>*") (as such Disqualified Institution List may be supplemented from time to time by the Borrower pursuant to <u>clause (c</u>) below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Person that is reasonably identifiable (based *solely* to the extent such legal entity has the name of a Person set forth on the Disqualified Institution List in its legal name) as an Affiliate of any Person set forth on the Disqualified Institution List; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other Competitor identified by legal name in writing to the Administrative Agent at any time after the Closing Date (other than during the continuance of an Event of Default) (it being understood and agreed that the Borrower shall be required to provide a fully updated Disqualified Institution List to the Administrative Agent in order to supplement such list after the Closing Date), which designation shall become effective one (1) day after the date that such written designation to the Administrative Agent is made available to the Lenders on IntraLinks, Syndtrak, Debtdomain or a similar electronic transmission system, but which shall *not* apply retroactively to disqualify any Persons that have previously acquired an assignment or participation interest in the Loans and/or Commitments.

Notwithstanding anything to the contrary in the foregoing, a Person that would be a Disqualified Institution as a result of being an Affiliate of a Competitor pursuant to <u>clause (b</u>) above shall *not* constitute a Disqualified Institution if such Person is a financial institution, bona fide debt fund or investment vehicle that is engaged in the business of making, purchasing, holding or otherwise investing in commercial loans, notes, bonds and similar extensions of credit or securities in the ordinary course of business to unaffiliated third parties and no Disqualified Institution makes investment decisions for such Person.

"*<u>Disqualified Institution List</u>*" shall have the meaning set forth in the definition of "*Disqualified Institution*" above.

"*<u>Dollars</u>*" and the sign "<u>$</u>" shall mean the lawful money of the United States.

"*<u>Domestic Subsidiary</u>*" shall mean any Subsidiary that is incorporated or formed (as the case may be) under the Applicable Laws of the United States or of any state, district or other political subdivision thereof, other than any such Subsidiary of the type(s) described in clauses (b) or (c) of the definition of "*Foreign Subsidiary*" below.

"*<u>Earn Out Obligations</u>*" shall mean, with respect to any Acquisition or other Investment permitted under this Agreement consisting of the purchase of Equity Interests, all obligations of any Credit Party, any Subsidiary or any other Regulated Entity to make earn out or other similar contingent payments that are payable based on the achievement of specified financial results over time (but *excluding*, for the avoidance of doubt, payments in respect of purchase price adjustments, working capital adjustments and non-competition and/or consulting agreements) pursuant to the definitive documentation relating to such Acquisition or other Investment.

"*<u>EEA Financial Institution</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any credit institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA Resolution Authority;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any entity established in an EEA Member Country that is a parent of an institution described in <u>clause (a</u>) above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in <u>clauses (a</u>) or (<u>b</u>) above and is subject to consolidated supervision with its parent.

"*<u>EEA Member Country</u>*" shall mean any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"*<u>EEA Resolution Authority</u>*" shall mean any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"*<u>Eligible Assignee</u>*" shall mean any Person that meets the requirements to be an assignee under <u>Section</u> <u>11.5(b</u>), subject to any consents and representations, if any as may be required therein.

"*<u>Environmental Claim</u>*" shall mean any known investigation, written notice, notice of violation, written claim, action, suit, proceeding, written demand, abatement order or other written order or directive (conditional or otherwise), by any Person arising:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) pursuant to, or in connection with, any actual or alleged violation of any Environmental Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in connection with any actual or alleged damage, injury, threat or harm to human health, safety, natural resources or the environment.

"*<u>Environmental Laws</u>*" shall mean any and all current or future federal or state (or any subdivision of either of them), statutes, ordinances, orders, rules, regulations, judgments, Governmental Authorizations, or any other written requirements of Governmental Authorities relating to: (a) any Hazardous Materials Activity; (b) the generation, use, storage, transportation or disposal of Hazardous Materials; or (c) protection of human health and the environment from pollution, in any manner applicable to any Credit Party, any Subsidiary, any Regulated Entity, or any of the respective Facilities of any of the foregoing.

"*<u>Environmental Liability</u>*" shall mean any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of any Credit Party, any Subsidiary or any other Regulated Entity directly or indirectly resulting from or based upon: (a) violation of any Environmental Law; (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials; (c) exposure to any Hazardous Materials; (d) the Release, or threatened Release, of any Hazardous Materials into the environment; or (e) any contract, agreement or other consensual arrangement pursuant to which any Credit Party, any Subsidiary or any other Regulated Entity assumed liability with respect to any of the foregoing.

"*<u>Equity Interests</u>*" shall mean, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.

------

"*<u>Equity Transaction</u>*" shall mean, with respect to any Credit Party, any Subsidiary or any other Regulated Entity, any issuance or sale by any such Person of shares of its Equity Interests, other than an issuance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the Borrower or any of its Wholly Owned Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in connection with a conversion of debt securities to equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in connection with the exercise by a present or former employee, officer or director under a stock incentive plan, stock option plan or other equity-based compensation plan or arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) that occurred *prior* to the Closing Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in connection with the consummation of any Permitted Acquisition or the making of any Capital Expenditures permitted under this Agreement.

"*<u>ERISA</u>*" shall mean the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

"*<u>ERISA Affiliate</u>*" shall mean, as applied to any Person: (a) any corporation which is a member of a controlled group of corporations within the meaning of Section 414(b) of the Internal Revenue Code of which that Person is a member; (b) any trade or business (whether or not incorporated) which is a member of a group of trades or businesses under common control within the meaning of Section 414(c) of the Internal Revenue Code of which that Person is a member; and (c) any member of an affiliated service group within the meaning of Section 414(m) or (o) of the Internal Revenue Code of which that Person, any corporation described in <u>clause (a</u>) above or any trade or business described in <u>clause (b</u>) above is a member.

"*<u>ERISA Event</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a "reportable event" within the meaning of Section 4043 of ERISA and the regulations issued thereunder with respect to any Pension Plan (but *excluding* those for which notice to the PBGC has been waived by regulation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the failure to meet the minimum funding standard of Section 412 of the Internal Revenue Code with respect to any Pension Plan (whether or not waived in accordance with Section 412(c) of the Internal Revenue Code), the failure to make by its due date any minimum required contribution or any required installment under Section 430(j) of the Internal Revenue Code with respect to any Pension Plan or the failure to make by its due date any required contribution to a Multiemployer Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the provision by the administrator of any Pension Plan pursuant to Section 4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress termination described in Section 4041(c) of ERISA;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the withdrawal from any Pension Plan with two (2) or more contributing sponsors or the termination of any such Pension Plan, in either case resulting in material liability pursuant to Section 4063 or 4064 of ERISA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the institution by the PBGC of proceedings to terminate any Pension Plan, or the occurrence of any event or condition reasonably likely to constitute grounds under ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the imposition of liability pursuant to Section 4062(a) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA, each case reasonably likely to result in material liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the withdrawal of any Credit Party, any Subsidiary, any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, in a complete or partial withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if such withdrawal is reasonably likely to result in material liability, or the receipt by any Credit Party, any Subsidiary, any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, of notice from any Multiemployer Plan that it is in insolvency pursuant to Section 4241 or 4245 of ERISA, or that it is in "critical" or "endangered" status within the meaning of Section 305 of ERISA, or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA, if such insolvency or termination is reasonably likely to result in material liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the imposition of fines, penalties, taxes or related charges under Chapter 43 of the Internal Revenue Code, Section 502(c), (i) or (l), or Section 4071 of ERISA in respect of any Pension Plan if such fines, penalties, taxes or related charges are reasonably likely to result in material liability to the Credit Parties, the Subsidiaries, the other Regulated Entities, and/or their respective ERISA Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) receipt from the Internal Revenue Service of a final written determination of the failure of any Pension Plan intended to be qualified under Section 401(a) of the Internal Revenue Code to qualify under Section 401(a) of the Internal Revenue Code, or the failure of any trust forming part of any such plan to qualify for exemption from taxation under Section 501(a) of the Internal Revenue Code; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the imposition of a lien pursuant to Section 430(k) of the Internal Revenue Code or pursuant to Section 303(k) or 4068 of ERISA.

"*<u>Erroneous Payment</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(a</u>).

"*<u>Erroneous Payment Deficiency Assignment</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>Erroneous Payment Impacted Class</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>Erroneous Payment Return Deficiency</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>Erroneous Payment Subrogation Rights</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>EU Bail</u>*<u>-</u>*<u>In Legislation Schedule</u>*" shall mean the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

------

"*<u>Event of Default</u>*" shall mean each of the conditions or events set forth in <u>Section</u> <u>9.1</u>.

"*<u>Exchange Act</u>*" shall mean the Securities Exchange Act of 1934, as amended from time to time, and any successor statute.

"*<u>Excluded Accounts</u>*" shall mean: (a) deposit and/or securities accounts used *solely* for the payment of Taxes, the balance of which consists exclusively of (i) withheld income taxes, federal, state or local employment taxes and sales taxes, in such amounts as are required, in the reasonable judgment of the Borrower, to be paid to the IRS or state or local Governmental Authorities, or (ii) amounts required to be paid over to an employee benefit plan pursuant to DOL Reg. §–2510.3–102 on behalf of, or for the benefit of, employees of one (1) or more Credit Parties; (b) all accounts used *solely* for payroll, accounts maintained *solely* in trust for the benefit of third parties and fiduciary purposes (including fiduciary tax accounts), escrow and trust accounts, zero balance or swept accounts, and healthcare and other employee benefit accounts (including 401(k) accounts and pension fund accounts), in each case of this <u>clause (b</u>), so long as such account is used *solely* for such purpose; (c) any deposit and/or securities account maintained in a jurisdiction outside of the United States or owned by a Foreign Subsidiary; and (d) accounts the balance of which consists exclusively of amounts to be paid to employees in the ordinary course of business.

"*<u>Excluded Property</u>*" shall mean, with respect to the Borrower and each other Credit Party, including any Person that becomes a Credit Party after the Closing Date as contemplated by <u>Section</u> <u>7.14</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Excluded Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Real Estate Asset owned in fee or leased by a Credit Party that is located outside of the United States, or any Real Estate Asset leased by a Credit Party that is located in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Real Estate Asset owned in fee by a Credit Party that is located in the United States having a fair market value *not* in *excess* of One Million Dollars ($1,000,000) (as reasonably determined by the Borrower on the Closing Date or on the date of later purchase of such Real Estate Asset, as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any personal Property (including, without limitation, motor vehicles) in respect of which perfection of a Lien is *not*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) governed by the UCC; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) effected by appropriate evidence of the Lien being filed in either the United States Copyright Office or the United States Patent and Trademark Office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Equity Interests in any direct Foreign Subsidiary or any Regulated Entity, to the extent *not* required to be pledged to secure the Obligations pursuant to <u>Section</u> <u>7.12(a</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Property which, subject to the terms of <u>Section</u> <u>8.3</u>, is subject to a Lien of the type described in <u>Section</u> <u>8.2(m</u>) pursuant to documents which prohibit the applicable Credit Party from granting any other Liens in such Property;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any Property to the extent that the grant of a security interest therein would violate Applicable Laws, require a consent *not* obtained of any Governmental Authority, or constitute a breach of or default under, or result in the termination of or require a consent *not* obtained under, any contract, lease, license or other agreement evidencing or giving rise to such Property, or result in the invalidation thereof or provide any party thereto with a right of termination (other than to the extent that any such term would be rendered ineffective pursuant to Section 9–406, 9–407, 9–408 or 9–409 of the applicable UCC or any other Applicable Law or principles of equity);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any lease, license, certificate, permit, agreement or other authorization issued by any Governmental Authority, or any Properties subject to any such lease, license, certificate, permit, agreement or other authorization, in each case of the foregoing, in existence on the Closing Date or upon the acquisition of the relevant Subsidiary party thereto (other than any such lease, license, certificate, permit, agreement or other authorization entered into in contemplation of this Agreement in order that any Property would constitute "*Excluded Property*" by operation of this <u>clause (h</u>)), *solely* if, and to the extent that, the grant of a security interest therein would: (i) violate or invalidate such lease, license, certificate, permit, agreement or other authorization (in each case, only if such violation or invalidation is *not* rendered ineffective pursuant to Section 9– 406, 9–407, 9–408 or 9–409 of the applicable UCC or any other Applicable Law or principles of equity); (ii) create a right of termination in favor of any party thereto other than any Credit Party (or an Affiliate thereof); or (iii) otherwise require the consent of any Person that is *not* a Credit Party (or an Affiliate thereof), unless such consent has been obtained (<u>provided</u>, <u>that</u>, the Credit Parties shall have no obligation or responsibility to obtain such consent);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Margin Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any intent-to-use trademark application prior to the filing of a "Statement of Use" or "Amendment to Allege Use" with respect thereto, *solely* if, and to the extent, if any, that, and *solely* during the period, if any, during which, the grant or enforcement of a security interest therein would impair the validity or enforceability of such intent-to-use trademark application under Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any ownership interest of such Credit Party in the Property of, and/or any Equity Interests in, any joint venture entity and/or any Subsidiary that is *not* Wholly Owned Subsidiary, *solely* to the extent that (i) a security interest therein is *not* permitted to be granted by such Credit Party pursuant to the terms of the Organizational Documents of such joint venture entity or non-Wholly Owned Subsidiary (in each case, as in effect on the Closing Date or on such later date of initial acquisition by such Credit Party of Equity Interests in such joint venture entity or non-Wholly Owned Subsidiary), or (ii) the granting of a security interest therein by such Credit Party would require, pursuant to such Organizational Documents or the terms of other Contractual Obligations of such Credit Party (in each case, as in effect on the Closing Date or on such later date of initial acquisition by such Credit Party of Equity Interests in such joint venture entity or non-Wholly Owned Subsidiary), the consent of a Person that is *not* a Credit Party (or an Affiliate thereof) (in each case, after giving effect to Section 9–406, 9–407, 9–408 or 9–409 of the applicable UCC or any other Applicable Law or principle of equity, the assignment of which is expressly deemed to be effective under the UCC or other Applicable Law or principle of equity notwithstanding such provision), unless such consent has been obtained (<u>provided</u>, <u>that</u>, the Credit Parties shall have no obligation or responsibility to obtain such consent); <u>provided</u>, <u>that</u>, no such Organizational Documents or Contractual Obligations were formed, created, assumed or entered into (as applicable) with the intention of causing such Property to constitute "*Excluded Property*" by operation of this <u>clause (k</u>); 

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) any Property of any Credit Party to the extent that the costs, burdens (including tax and/or regulatory burdens, if applicable), difficulty or consequence of obtaining a security interest therein or perfection thereof *exceeds*, in the reasonable determination and agreement in writing of the Collateral Agent and the Borrower, the benefit to the holders of the Obligations afforded thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) proceeds and products of any and all of the foregoing excluded Property described in <u>clauses (a</u>) through (<u>l</u>) above only to the extent such proceeds and products would constitute Property or assets of the type described in <u>clauses (a</u>) through (<u>l</u>) above;

<u>provided</u>, <u>that</u>, the security interest granted to the Collateral Agent under the Security Agreement or any other Credit Document shall attach immediately to any asset of any Obligor (as such term is defined in the Security Agreement) at such time as such asset ceases to meet any of the criteria for "*Excluded Property*" described in any of the foregoing <u>clauses (a</u>) through (<u>m</u>) above.

"*<u>Excluded Swap Obligation</u>*" shall mean, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all, or a portion, of the Guaranty of such Guarantor of, or the grant under a Credit Document by such Guarantor of a security interest to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act (or the application or official interpretation thereof) by virtue of such Guarantor's failure for any reason to constitute an "eligible contract participant" as defined in the Commodity Exchange Act (determined after giving effect to <u>Section</u> <u>4.8</u> hereof and any and all guarantees of such Guarantor's Swap Obligations by other Credit Parties) at the time the Guaranty of such Guarantor, or grant by such Guarantor of a security interest, becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a Master Agreement governing more than one Swap Agreement, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to Swap Agreements for which such Guaranty or security interest becomes illegal.

"*<u>Excluded Subsidiary</u>*" shall mean, collectively, each Subsidiary of the Borrower (other than, in any event, any Subsidiary that was, at any time *prior* to the relevant date of determination, a Guarantor and/or an Obligor (as such term is defined in the Security Agreement)):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prohibited by Applicable Laws from providing a Guarantee of the Obligations and/or granting a Lien in favor of the Collateral Agent, for the benefit of the holders of the Obligations, in substantially all of its Property (other than any Excluded Property);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a Regulated Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a Foreign Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) an Immaterial Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent that the Administrative Agent, the Collateral Agent and the Borrower mutually determine and agree in writing that the costs and/or burden (including tax and/or regulatory burdens, if applicable) of obtaining a Guarantee by such Subsidiary of the Obligations would outweigh the benefit to the holders of the Obligations of obtaining such Guarantee.

------

"*<u>Excluded Taxes</u>*" shall mean any of the following Taxes imposed on, or with respect to, a Recipient or required to be withheld or deducted from a payment to a Recipient:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Taxes imposed on, or measured by, net income (however denominated), profits, or overall gross income or receipts, franchise or similar Taxes, and branch profits Taxes, in each case,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that are Other Connection Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to, or for the account of, such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under <u>Section</u> <u>2.17</u>), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender changes its lending office,

except, in each case, to the extent that, pursuant to <u>Section</u> <u>3.3</u>, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Taxes attributable to such Recipient's failure to comply with <u>Section</u> <u>3.3(f</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any U.S. federal withholding Taxes imposed under FATCA.

"*<u>Facility</u>*" shall mean any real property including all buildings, fixtures or other improvements located on such real property now, hereafter or heretofore owned, leased, operated or used by any Credit Party, any Subsidiary or any other Regulated Entity, or any of their respective predecessors.

"*<u>FATCA</u>*" shall mean Sections 1471 through 1474 of the Internal Revenue Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and *not* materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code.

"*<u>Federal Funds Rate</u>*" shall mean, for any day, the rate per annum (expressed, as a decimal, rounded upwards, if necessary, to the next higher one one-hundredth of one percent (0.01%)) equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the FRBNY on the Business Day next succeeding such day; <u>provided</u>, <u>that</u>, (a) if such day is *not* a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate charged to Regions Bank or any other Lender selected by the Administrative Agent on such day on such transactions as determined by the Administrative Agent.

"*<u>Federal Reserve Board</u>*" shall mean the Board of Governors of the Federal Reserve System (or any successor).

"*<u>Fee Letter</u>*" shall mean that certain fee letter agreement, dated as of September 19, 2024, by and among the Borrower, Regions Bank and Regions Capital Markets, a division of Regions Bank.

------

"*<u>FHLB</u>*" shall mean any federal home loan bank.

"*<u>Financial Covenants</u>*" shall mean, collectively, each of the financial covenants set forth in <u>Section</u> <u>8.8(a</u>), <u>Section</u> <u>8.8(b</u>) and <u>Section</u> <u>8.8(c</u>).

"*<u>Financial Officer Certification</u>*" shall mean, with respect to the financial statements for which such certification is required, the certification of the chief financial officer of the Borrower that such financial statements fairly present, in all material respects, the financial condition of the Credit Parties and Subsidiaries (including or excluding Regulated Entities, as so specified textually in the relevant instance of calculation) as of the dates indicated and the results of their operations and their cash flows for the periods indicated, subject to changes resulting from audit and normal year-end adjustments.

"*<u>First Amendment</u>*" shall mean that certain First Amendment to Credit Agreement, dated as of the First Amendment Effective Date, by and among the Loan Parties, the Lenders party thereto (including the Swingline Lender), the Issuing Bank, the Collateral Agent and the Administrative Agent.

"*<u>First Amendment Effective Date</u>*" shall mean April 11, 2025.

"*<u>Fiscal Quarter</u>*" shall mean a fiscal quarter of any Fiscal Year.

"*<u>Fiscal Year</u>*" shall mean the fiscal year of the Borrower ending on December 31 of each calendar year.

"*<u>Flood Hazard Property</u>*" shall mean any Real Estate Asset subject to a mortgage or deed of trust in favor of the Collateral Agent, for the benefit of the holders of the Obligations, and located in an area designated by the Federal Emergency Management Agency as having special flood or mud slide hazards.

"*<u>Floor</u>*" shall mean a rate of interest equal to zero percent (0.00%) per annum (subject to the proviso to the last sentence of <u>Section</u> <u>3.1(g)(v</u>)).

"*<u>Foreign Lender</u>*" shall mean a Lender that is *not* a U.S. Person.

"*<u>Foreign Subsidiary</u>*" shall mean any Subsidiary that: (a) is *not* a Domestic Subsidiary; (b) is a FSHCO; or (c) is a direct or indirect Subsidiary of a CFC (other than any such Subsidiary treated as a C-corporation for U.S. federal income tax purposes).

"*<u>FRBNY</u>*" shall mean the Federal Reserve Bank of New York (or any successor).

"*<u>Fronting Exposure</u>*" shall mean, at any time there is a Defaulting Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to the Issuing Bank, such Defaulting Lender's Revolving Commitment Percentage of the outstanding Letter of Credit Obligations with respect to Letters of Credit issued by the Issuing Bank, other than Letter of Credit Obligations as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to the Swingline Lender, such Defaulting Lender's Revolving Commitment Percentage of outstanding Swingline Loans made by the Swingline Lender, other than Swingline Loans as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders.

------

"*<u>FSHCO</u>*" shall mean any Domestic Subsidiary that does *not* own any material Property other than the Equity Interests in, and/or Indebtedness (if any) of, one (1) or more CFCs (or other FSHCOs).

"*<u>Fund</u>*" shall mean any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.

"*<u>Funded Debt</u>*" shall mean, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all obligations for borrowed money, whether current or long-term (including the Obligations hereunder), all obligations evidenced by bonds, debentures, notes, loan or credit agreements or other similar instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all obligations in respect of the deferred purchase price of Property or services (other than trade accounts payable in the ordinary course of business and, in each case, *not* past due for *more than* sixty (60) calendar days), including, without limitation, any Earn Out Obligations recognized as a liability on the balance sheet of such Person in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all unreimbursed obligations of such Person with respect to draw amounts under letters of credit, bankers' acceptances and similar instruments (including bank guaranties);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Attributable Principal Amount of Capital Leases, Synthetic Leases, Securitization Transactions and Sale and Leaseback Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Disqualified Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all Funded Debt of others secured by (or for which the holder of such Funded Debt has an existing right, contingent or otherwise, to be secured by) any Lien on, or payable out of the proceeds of production from, Property owned or acquired by such Person, whether or not the obligations secured thereby have been assumed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all Guarantees in respect of Funded Debt of another Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Funded Debt of any partnership or joint venture or other similar entity in which such Person is a general partner or joint venturer, and, as such, has personal liability for such obligations, but only to the extent there is recourse to such Person for payment thereof.

For purposes hereof, the amount of Funded Debt shall be determined based on: (i) the outstanding principal amount thereof, in the case of borrowed money indebtedness under <u>clause (a</u>) above and purchase money indebtedness and deferred purchase obligations under <u>clause (b</u>) above; and (ii) the amount of Funded Debt that is the subject of such Guarantees, in the case of Guarantees under <u>clause (g</u>) above.

"*<u>Funding Notice</u>*" shall mean a notice substantially in the form of <u>Exhibit 2.1</u>.

"*<u>GAAP</u>*" shall mean, subject to the limitations on the application thereof set forth in <u>Section</u> <u>1.2</u>, accounting principles generally accepted in the United States in effect as of the date of determination thereof.

------

"*<u>Governmental Acts</u>*" shall mean any act or omission, whether rightful or wrongful, of any present or future *de jure* or *de facto* government or Governmental Authority.

"*<u>Governmental Authority</u>*" shall mean the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank and any group or body charged with setting financial accounting or regulatory capital rules or standards).

"*<u>Governmental Authorization</u>*" shall mean any permit, license, authorization, plan, directive, consent order or consent decree of or from any Governmental Authority.

"*<u>Guarantee</u>*" shall mean, as to any Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any obligation, contingent or otherwise, of such Person guaranteeing, or having the economic effect of guaranteeing, any Indebtedness or other obligation payable or performable by another Person (the "*<u>primary obligor</u>*") in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to purchase or lease Property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien).

The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term "*Guarantee*" as a verb has a corresponding meaning.

"*<u>Guaranteed Obligations</u>*" shall have the meaning specified for such term in <u>Section</u> <u>4.1</u>.

"*<u>Guarantor Joinder Agreement</u>*" shall mean a guarantor joinder agreement substantially in the form of <u>Exhibit 7.14</u> delivered by a Domestic Subsidiary pursuant to <u>Section</u> <u>7.14</u>.

------

"*<u>Guarantors</u>*" shall mean: (a) each existing and future direct and indirect Domestic Subsidiary that is *not* an Excluded Subsidiary; (b) each Person identified as a "*Guarantor*" on the signature pages to this Agreement; (c) each other Person that joins as a Guarantor pursuant to <u>Section</u> <u>7.14</u>; (d) with respect to (i) Secured Swap Obligations, (ii) Secured Treasury Management Obligations, and (iii) Swap Obligations of a Specified Credit Party (determined before giving effect to <u>Section</u> <u>4.1</u> and <u>Section</u> <u>4.8</u>) under the Guaranty hereunder, the Borrower; and (e) their successors and permitted assigns.

"*<u>Guaranty</u>*" shall mean the Guarantee made by the Guarantors in favor of the Administrative Agent, the Lenders and the other holders of the Obligations pursuant to <u>Article 4</u>.

"*<u>Hazardous Materials</u>*" shall mean any hazardous substances defined by the Comprehensive Environmental Response Compensation and Liability Act, 42 USCA 9601, *et seq*., as amended ("<u>CERCLA</u>"), including any hazardous waste as defined under 40 C.F.R. Parts 260–270, gasoline or petroleum (including crude oil or any fraction thereof), asbestos or polychlorinated biphenyls.

"*<u>Hazardous Materials Activity</u>*" shall mean any past, current, proposed or threatened activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, presence, existence, location, Release, threatened Release, discharge, placement, generation, transportation, processing, construction, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.

"*<u>Highest Lawful Rate</u>*" shall mean the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under Applicable Laws relating to any Lender which are currently in effect or, to the extent allowed under such Applicable Laws, which may hereafter be in effect and which allow a higher maximum non-usurious interest rate than Applicable Laws now allow.

"*<u>Immaterial Subsidiary</u>*" shall mean, as of any date of determination, each Subsidiary that has been designated by the Borrower, in writing to the Administrative Agent, as an "*Immaterial Subsidiary*" for purposes of this Agreement (and *not* re-designated as a Material Subsidiary as provided below), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for purposes of this Agreement and the other Credit Documents, at no time shall

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the aggregate book value of the total Property of (I) all Immaterial Subsidiaries, as of the last day of the most recently ended Trailing Period, *equal* or *exceed* five percent (5.0%), or (II) any individual Immaterial Subsidiary, as of the last day of the most recently ended Trailing Period, *equal* or *exceed* two and one-half of one percent (2.5%), in each case of the foregoing <u>clauses (a)(i)(A)(I</u>) and (<u>a)(i)(A)(II</u>), of the aggregate book value of the total Property of the Credit Parties and Subsidiaries as of such date, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the gross revenues of (I) all Immaterial Subsidiaries for the most recently ended Trailing Period *equal* or *exceed* five percent (5.0%), or (II) any individual Immaterial Subsidiary for the most recently ended Trailing Period *equal* or *exceed* two and one-half of one percent (2.5%), in each case of the foregoing <u>clauses (a)(i)(B)(I</u>) and (<u>a)(i)(B)(II</u>), of the gross revenues of the Credit Parties and Subsidiaries for such period, in each case of the foregoing <u>clauses (a)(i)(A</u>) and (<u>a)(i)(B</u>), determined on a consolidated basis in accordance with GAAP, or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the portion of Consolidated EBITDA, recomputed as of the last day of the most recently ended Trailing Period, attributable to the operations of (I) all Immaterial Subsidiaries, taken together, *equal* or *exceed* five percent (5.0%), or (II) any individual Immaterial Subsidiary *equal* or *exceed* two and one-half of one percent (2.5%), in each case of the foregoing <u>clauses (a)(i)(C)(I</u>) and (<u>a)(i)(C)(II</u>), of Consolidated EBITDA for such period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower shall *not* designate any new Immaterial Subsidiary if such designation would *not* comply with the provisions set forth in the foregoing <u>clause (a)(i</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the event that, on any Subsidiary Determination Date, the aggregate book value of the total Property, gross revenues or attributable portion of Consolidated EBITDA of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) all Subsidiaries so designated by the Borrower as "*Immaterial Subsidiaries*" (and *not* re-designated as "*Material Subsidiaries*"), taken together, or 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any individual Subsidiary so designated by the Borrower as an "*Immaterial Subsidiary*" (and *not* re-designated as a "*Material Subsidiary*"),

shall, in any such case of the foregoing <u>clauses (a)(iii)(A</u>) or (<u>a)(iii)(B</u>), *exceed* the respective limits set forth in the foregoing <u>clause (a)(i</u>), then the Borrower shall, promptly and, in any event, within five (5) Business Days after the applicable Subsidiary Determination Date, re-designate one (1) or more Immaterial Subsidiaries as Material Subsidiaries by providing written notice of such re-designation(s) to the Administrative Agent, so that (immediately after giving effect to such re-designation(s)) the aggregate book value of total Property, gross revenues and attributable portion of Consolidated EBITDA of (I) all Subsidiaries still designated as "*Immaterial Subsidiaries*", taken together, and (II) each individual Subsidiary still designated as an "*Individual Subsidiary*", in each case of the foregoing <u>clauses (a)(iii)(I</u>) and (<u>a)(iii)(II</u>), shall *not exceed* such respective limits; and <u>further</u> (and for purposes of clarity), upon any such re-designation made in accordance with the foregoing of this definition, each individual Subsidiary so re-designated shall be required to become a Guarantor in accordance with <u>Section</u> <u>7.14</u> (it being understood and agreed that the forty-five (45) calendar day period referred to in such Section shall be deemed to have commenced as of the applicable Subsidiary Determination Date); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower may designate and re-designate a Subsidiary as an Immaterial Subsidiary at any time, subject to the restrictions and limitations set forth in the foregoing <u>clause (a</u>).

"*<u>Incremental Cap</u>*" shall mean, as of any date of determination, the *difference* between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fifty Million Dollars ($50,000,000); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the aggregate original principal or committed amount of all Incremental Facilities previously established and/or incurred as of such date.

"*<u>Incremental DDTL Increase</u>*" shall mean any increase in the Aggregate DDTL Commitment Amount established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>).

------

"*<u>Incremental Facility</u>*" shall mean any Incremental Revolver Increase, any Incremental Term Loan A Increase, any Incremental DDTL Increase, or any other Incremental Term Loan.

"*<u>Incremental Facility Agreement</u>*" shall mean, with respect to any Incremental Facility, the definitive amendment, credit, commitment, joinder and/or other legal documentation executed and delivered by the Borrower pursuant to which such Incremental Facility is established, which amendment, credit, commitment, joinder and/or other legal documentation shall be in form and detail reasonably satisfactory to the Administrative Agent.

"*<u>Incremental Revolver Increase</u>*" shall mean any increase in the Aggregate Revolving Commitment Amount established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>).

"*<u>Incremental Term Loan</u>*" shall mean any additional Term Loan established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>) (including, for purposes of clarity, (i) any additional advance under the Term Loan A or the Delayed Draw Term Loan established in connection with an Incremental Term Loan A Increase or an Incremental DDTL Increase, as well as (ii) any additional Term Loan of a separate Class established after the Closing Date pursuant to such Section).

"*<u>Incremental Term Loan A Increase</u>*" shall mean any increase in the Aggregate Term Loan A Commitment Amount established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>).

"*<u>Incremental Term Loan Commitment</u>*" shall mean, with respect to any Person(s) identified as an "*Incremental Lender*" (or substantially similar designation) in respect of an Incremental Term Loan in the Incremental Facility Agreement establishing such Incremental Term Loan, the respective commitment of such Person(s) (together with their respective successors and permitted assigns) to advance their respective portion of principal under such Incremental Term Loan in accordance with the terms of such Incremental Facility Agreement and this Agreement; <u>provided</u>, <u>that</u>, at any time after the establishment and incurrence of such Incremental Term Loan, the determination of "*Required Lenders*" shall thereafter include the aggregate outstanding principal balance of such Incremental Term Loan.

"*<u>Incremental Term Loan Commitment Percentage</u>*" shall mean, with respect to each Lender at any time and for any Incremental Term Loan, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the *sum of* (i) the amount of such Lender's Incremental Term Loan Commitment (if any) in respect of such Incremental Term Loan in effect at such time, *plus* (ii) the aggregate principal balance of the portion of such Incremental Term Loan advanced by such Lender that is outstanding at such time; and (b) the *denominator* of which is the *sum of* (i) the aggregate amount of the Incremental Term Loan Commitments of all of the Lenders, taken together, in respect of such Incremental Term Loan in effect at such time, *plus* (ii) the aggregate outstanding principal balance of such Incremental Term Loan at such time.

"*<u>Indebtedness</u>*" shall mean, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Funded Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) net obligations under any Swap Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Guarantees in respect of Indebtedness of another Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Indebtedness of the types referred to in <u>clauses (a</u>) through (<u>c</u>) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or joint venturer, unless such Indebtedness is expressly made non-recourse to such Person.

------

For purposes hereof, the amount of Indebtedness shall be determined based on the Swap Termination Value in the case of net obligations under any Swap Agreement pursuant to <u>clause (b</u>) above.

"*<u>Indemnified Taxes</u>*" shall mean: (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by, or on account of, any obligation of any Credit Party under any Credit Document; and (b) to the extent *not* otherwise described in <u>clause (a</u>), Other Taxes.

"*<u>Indemnitee</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.2(b</u>).

"*<u>Insurance Regulatory Authority</u>*" shall mean, with respect to any Regulated Entity, the insurance department or similar Governmental Authority charged with regulating insurance companies or insurance holding companies, in its jurisdiction of domicile and, to the extent that it has regulatory authority over such Regulated Entity, in each other jurisdiction in which such Regulated Entity conducts business or is licensed to conduct business.

"*<u>Intellectual Property</u>*" shall mean all trademarks, service marks, trade names, copyrights, patents, patent rights, franchises related to intellectual property, licenses related to intellectual property and other intellectual property rights.

"*<u>Interest Payment Date</u>*" shall mean, with respect to: (a) any Base Rate Loan and any Swingline Loan, (i) the last Business Day of each calendar quarter, commencing on the first (1<sup>st</sup>) such date to occur after the Closing Date, (ii) the Revolving Commitment Termination Date, (iii) the DDTL Commitment Termination Date, and (iv) the applicable Maturity Date therefor; and (b) any SOFR Loan, (i) the last day of each Interest Period applicable to such Loan, <u>provided</u>, <u>that</u>, in the case of each Interest Period of longer than three (3) months "*Interest Payment Date*" shall also include each date that is three (3) months, or an integral multiple thereof, after the commencement of such Interest Period, (ii) the Revolving Commitment Termination Date, (iii) the DDTL Commitment Termination Date, and (iv) the applicable Maturity Date therefor.

"*<u>Interest Period</u>*" shall mean, in connection with a SOFR Loan, an interest period of one (1), three (3) or six (6) months (in each case, subject to availability), as selected by the Borrower in the applicable Funding Notice or Conversion / Continuation Notice, (a) initially, commencing on the Credit Date or Conversion / Continuation Date thereof, as the case may be, and (b) thereafter, commencing on the day on which the immediately preceding Interest Period expires, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if an Interest Period would otherwise expire on a day that is *not* a Business Day, such Interest Period shall expire on the next succeeding Business Day unless no further Business Day occurs in such month, in which case, such Interest Period shall expire on the immediately preceding Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall, subject to <u>clause (iii</u>) below, end on the last Business Day of a calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no Interest Period with respect to any Term Loan shall extend beyond any principal amortization payment date, except to the extent that the portion of such Term Loan that is comprised of SOFR Loans that is expiring prior to the applicable principal amortization payment date *equals* or *exceeds* the amount of the principal amortization payment then due;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) no Interest Period with respect to any portion of the Revolving Loans shall extend beyond the Revolving Commitment Termination Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no Interest Period with respect to any portion of the Delayed Draw Term Loan shall extend beyond the DDTL Commitment Termination Date.

"*<u>Interest Rate Determination Date</u>*" shall mean, with respect to any Interest Period, the date that is two (2) Business Days prior to the first (1<sup>st</sup>) day of such Interest Period.

"*<u>Internal Revenue Code</u>*" shall mean the Internal Revenue Code of 1986.

"*<u>Investment</u>*" shall mean, as to any Person, any direct or indirect acquisition of or relating to, or investment by, such Person (including pursuant to any merger with any Person that was *not* a Wholly Owned Subsidiary prior to such merger), whether by means of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the purchase or other acquisition of Equity Interests of another Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such other Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an Acquisition.

For purposes of calculating compliance with any of the Financial Covenants (and, for purposes of any calculations substantially based on, or derivative from, such compliance), the amount of any Investment shall be deemed to be the amount *actually* invested, without adjustment for subsequent increases or decreases in the value of such Investment. For the avoidance of doubt, any forgiveness (in whole or in part) by the Credit Parties (or any of them) of any fees otherwise owed by, or on behalf of, any Regulated Entity, on the one hand, to, or for the benefit of, the Credit Parties (or any of them), on the other hand, pursuant to any managing general agent, service company or attorney-in-fact agreement between any such Regulated Entity, on the one hand, and the Credit Parties (or any of them), on the other hand, shall, in any such case of the foregoing, constitute an "*Investment*" by such Credit Party or Credit Parties (as applicable) in such Regulated Entity, in the aggregate amount of such fees that are so forgiven.

"*<u>Involuntary Disposition</u>*" shall mean the receipt by any Credit Party, any Subsidiary, or any other Regulated Entity of any cash insurance proceeds or condemnation awards payable by reason of theft, loss, physical destruction or damage, taking or similar event with respect to any of its Property.

"*<u>IRS</u>*" shall mean the United States Internal Revenue Service.

"*<u>ISP</u>*" shall mean, with respect to any Letter of Credit, the "International Standby Practices 1998" published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance of such Letter of Credit).

"*<u>Issuance Notice</u>*" shall mean an Issuance Notice substantially in the form of <u>Exhibit 2.3</u>.

------

"*<u>Issuer Documents</u>*" shall mean with respect to any Letter of Credit, the Letter of Credit Application, and any other document, agreement and instrument entered into by the Issuing Bank and any Credit Party, any Subsidiary or any other Regulated Entity, or otherwise in favor of the Issuing Bank and relating to such Letter of Credit.

"*<u>Issuing Bank</u>*" shall mean Regions Bank in its capacity as issuer of Letters of Credit hereunder, together with its permitted successors and assigns in such capacity.

"*<u>Junior Debt</u>*" shall mean any Funded Debt of any Credit Party, Subsidiary or other Regulated Entity that is: (a) unsecured; (b) secured by any or all of the Collateral and subordinated in respect of lien priority to the Liens granted in favor of the Collateral Agent, for the benefit of the holders of the Obligations; or (c) subordinated in right of payment to the prior payment of any or all of the Obligations.

"*<u>Latest Maturity Date</u>*" shall mean, as of any date of determination, the *latest* to occur of: (a) the Revolving Commitment Termination Date; (b) the DDTL Commitment Termination Date; and (c) the latest Maturity Date applicable to any Term Loan.

"*<u>Leasehold Property</u>*" shall mean any leasehold interest of any Credit Party, as lessee or tenant, in any Real Estate Asset, or any Property right pursuant to a lease, rental, easement, servitude or similar agreement, however termed, in each case now held or hereafter acquired.

"*<u>Lenders</u>*" shall mean, collectively, each financial institution with a Commitment, together with its successors and permitted assigns. The initial Lenders as of the Closing Date are identified on the signature pages to this Agreement.

"*<u>Letter of Credit</u>*" shall mean any standby letter of credit issued hereunder.

"*<u>Letter of Credit Application</u>*" shall mean an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the Issuing Bank.

"*<u>Letter of Credit Borrowing</u>*" shall mean any Credit Extension resulting from a drawing under any Letter of Credit that has *not* been reimbursed or refinanced as a Borrowing of Revolving Loans.

"*<u>Letter of Credit Fees</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.10(b)(i</u>).

"*<u>Letter of Credit Obligations</u>*" shall mean, at any time, the *sum of*: (a) the maximum amount available to be drawn under Letters of Credit then outstanding, assuming compliance with all requirements for drawings referenced therein; *plus* (b) the aggregate amount of all drawings under Letters of Credit that have *not* been reimbursed by the Borrower, including Letter of Credit Borrowings. For all purposes of this Agreement, (i) amounts available to be drawn under Letters of Credit will be calculated as provided in <u>Section</u> <u>1.3(i</u>), and (ii) if a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be "outstanding" in the amount so remaining available to be drawn.

"*<u>Letter of Credit Sublimit</u>*" shall mean, as of any date of determination, the aggregate unused amount of the Revolving Commitments then in effect.

"*<u>Lien</u>*" shall mean: (a) any lien, mortgage, pledge, assignment, security interest, charge or encumbrance of any kind (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, and any lease or license in the nature thereof) and any option, trust or other preferential arrangement having the practical effect of any of the foregoing; and (b) in the case of Securities, any purchase option, call or similar right of a third party with respect to such Securities.

------

"*<u>Liquidity</u>*" shall mean, as of any date of determination, the *sum of*: (a) unrestricted cash and Cash Equivalents held by the Credit Parties on such date; *plus* (b) the aggregate amount actually available to be drawn by the Borrower under the Aggregate Revolving Commitments on such date. For the avoidance of doubt, the terms "*cash*" and "*Cash Equivalents*" as used in this definition shall only apply to any such Property that is directly owned by a Credit Party, and shall *not* include any amounts of consolidated or combined cash and/or Cash Equivalents consisting of funds owned by: (i) a Subsidiary (including any Regulated Subsidiary) that is *not* a Credit Party; or (ii) any other Regulated Entity.

"*<u>Loan</u>*" shall mean any Revolving Loan, any Swingline Loan or any Term Loan, and the Base Rate Loans and SOFR Loans comprising such Loans.

"*<u>Margin Stock</u>*" shall have the meaning specified for such term in Regulation U of the Federal Reserve Board, as in effect from time to time.

"*<u>Master Agreement</u>*" shall have the meaning specified for such term in the definition of "*Swap Agreement*" below.

"*<u>Material Adverse Effect</u>*" shall mean any effect, event, condition, action, omission, change or state of facts that, individually or in the aggregate, has resulted in, or could reasonably be expected to result in, a material adverse effect with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the business operations, assets, Property or financial condition of the Credit Parties, Subsidiaries and other Regulated Entities, taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the ability of the Credit Parties, taken as a whole, to fully and timely perform the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the legality, validity, binding effect, or enforceability against a Credit Party of any Credit Document to which it is a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the value of the whole, or any material part, of the Collateral, or the priority of Liens in the whole, or any material part, of the Collateral in favor of the Collateral Agent, for the benefit of the holders of the Obligations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the material rights, remedies and benefits available to, or conferred upon, the Agent, any Lender, and/or any other holder of Obligations under any Credit Document.

"*<u>Material Contract</u>*" shall mean: (a) any managing general agent or service company agreement entered into between any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the one hand, and any Regulated Entity, on the other hand; (b) any attorney-in-fact agreement entered into between any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the one hand, and any Qualifying Reciprocal Entity, on the other hand; and (c) any other Contractual Obligation to which any Credit Party, any Subsidiary or any other Regulated Entity, or any of their respective Properties, are bound (other than those evidenced by the Credit Documents) pursuant to which a default, breach or termination thereof could reasonably be expected to result in a Material Adverse Effect.

"*<u>Material Subsidiary</u>*" shall mean, as of any date of determination, each Subsidiary that is *not* an Immaterial Subsidiary.

------

"*<u>Maturity Date</u>*" shall mean: (a) with respect to the Term Loan A and the Delayed Draw Term Loan, the *earlier* to occur of (i) the date that is the fifth (5<sup>th</sup>) anniversary of the Closing Date (or, if such date is *not* a Business Day, the immediately prior Business Day), and (ii) the date on which the aggregate outstanding principal balance(s) of the Term Loan A and/or the Delayed Draw Term Loan (as applicable) have been declared, or automatically have become, due and payable pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise); and (b) with respect to any Incremental Term Loan, the *earlier* to occur of (i) the maturity date identified in the applicable Incremental Facility Agreement establishing such Incremental Term Loan, and (ii) the date on which the aggregate outstanding principal balance of such Incremental Term Loan has been declared, or automatically has become, due and payable pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise).

"*<u>Moody</u>*<u>'</u>*<u>s</u>*" shall mean Moody's Investor Services, Inc., together with its successors.

"*<u>Mortgages</u>*" shall mean the mortgages, deeds of trust or deeds to secure debt that purport to grant to the Collateral Agent, for the benefit of the holders of the Obligations, a security interest in any Real Estate Asset.

"*<u>Multiemployer Plan</u>*" shall mean any "multiemployer plan" as defined in Section 3(37) of ERISA which is sponsored, maintained or contributed to by, or required to be contributed to by, any of the Credit Parties, Subsidiaries or Regulated Entities, or any of their respective ERISA Affiliates, or with respect to which any of the Credit Parties, Subsidiaries or Regulated Entities, or any of their respective ERISA Affiliates, previously sponsored, maintained or contributed to or was required to contributed to, and still has liability.

"*<u>NAIC</u>*" shall mean the National Association of Insurance Commissioners (or any successor to any of its principal functions).

"*<u>Net Cash Proceeds</u>*" shall mean the aggregate proceeds paid in cash or Cash Equivalents received by any Credit Party, any Subsidiary or any other Regulated Entity in connection with any Specified Transaction, net of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) direct costs incurred or estimated costs for which reserves are maintained, in connection therewith (including legal, accounting and investment banking fees and expenses, sales commissions and underwriting discounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) estimated Taxes paid or payable (including sales, use or other transactional taxes and any net marginal increase in income taxes) as a result thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the amount required to retire any Indebtedness secured by a Lien on related Property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reasonable reserves in accordance with GAAP for any liabilities or indemnification payments (fixed or contingent) attributable to seller's indemnities and representations and warranties to purchasers and other retained liabilities in respect of any Asset Sale undertaken by any Credit Party, any Subsidiary or any other Regulated Entity; <u>provided</u>, <u>that</u>, to the extent that any such amount ceases to be so reserved (other than any reduction in such reserve to make a payment in respect of such liability or indemnification obligations), the amount thereof shall be deemed to be Net Cash Proceeds of such Asset Sale at such time.

------

For purposes hereof, "*Net Cash Proceeds*" includes any cash or Cash Equivalents received upon the disposition of any non-cash consideration received by any Credit Party, any Subsidiary or any other Regulated Entity in any Specified Transaction.

"*<u>Non</u>*<u>-</u>*<u>Consenting Lender</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.17</u>.

"*<u>Non</u>*<u>-</u>*<u>Defaulting Lender</u>*" shall mean, at any time, each Lender that is *not* a Defaulting Lender at such time.

"*<u>Non</u>*<u>-</u>*<u>Qualifying Reinsurer</u>*" shall mean any reinsurer that is *not* a Qualifying Reinsurer.

"*<u>Note</u>*" shall mean a promissory note in the form of <u>Exhibit 2.5</u> issued by the Borrower in favor of a Lender, as such promissory note may be amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time.

"*<u>Notice</u>*" shall mean a Funding Notice, an Issuance Notice or a Conversion / Continuation Notice.

"*<u>Obligations</u>*" shall mean all obligations, indebtedness and other liabilities of every nature of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Credit Party from time to time owing to the Agents (including any former Agents), the Issuing Bank, the Lenders (including former Lenders in their capacity as such) or any of them, the Qualifying Swap Providers and the Qualifying Treasury Management Banks under any Credit Document, any Secured Swap Agreement or any Secured Treasury Management Agreement, and (without duplication)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each Subsidiary and other Regulated Entity from time to time owing to the Qualifying Swap Providers and the Qualifying Treasury Management Banks under any Secured Swap Agreement or ant Secured Treasury Management Agreement,

in each case of the foregoing <u>clause (a</u>) and (<u>b</u>), together with all renewals, extensions, modifications or refinancings thereof, whether for principal, interest (including fees and interest which, but for the filing of a petition in bankruptcy with respect to such Credit Party, Subsidiary or other Regulated Entity, would have accrued on any Obligation, whether or not a claim is allowed against such Credit Party, Subsidiary or other Regulated Entity for such interest or fees in the related bankruptcy proceeding), reimbursement of amounts drawn under Letters of Credit, payments for early termination of Swap Agreements, fees, expenses, indemnification or otherwise, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Erroneous Payment Subrogation Rights;

<u>provided</u>, <u>that</u>, the "*<u>Obligations</u>*" of a Credit Party, Subsidiary or other Regulated Entity shall *exclude* any Excluded Swap Obligations with respect to such Credit Party, Subsidiary or other Regulated Entity. Notwithstanding anything to the contrary contained herein or under any of the other Credit Documents, the obligations of any Credit Party, any Subsidiary or any other Regulated Entity under any Secured Swap Agreement or any Secured Treasury Management Agreement shall be secured and guaranteed pursuant to the Credit Documents only to the extent that, and for so long as, the Obligations (other than any Obligations with respect to Secured Swap Agreements and Secured Treasury Management Agreements) are so secured and guaranteed.

"*<u>OFAC</u>*" shall mean the U.S. Department of the Treasury's Office of Foreign Assets Control.

------

"*<u>Organizational Documents</u>*" shall mean, with respect to: (a) any corporation, its certificate or articles of incorporation or organization, as amended, and its by-laws, as amended; (b) any limited partnership, its certificate of limited partnership, as amended, and its partnership agreement, as amended; (c) any general partnership, its partnership agreement, as amended; and (d) any limited liability company, its articles of organization, certificate of formation or comparable documents, as amended, and its operating agreement, as amended. In the event any term or condition of this Agreement or any other Credit Document requires any Organizational Document to be certified by a secretary of state or similar governmental official, the reference to any such "*Organizational Document*" shall only be to a document of a type customarily certified by such governmental official.

"*<u>Other Connection Taxes</u>*" shall mean, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Credit Document, or sold or assigned an interest in any Loan or Credit Document).

"*<u>Other Taxes</u>*" shall mean all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Credit Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to <u>Section</u> <u>2.17</u>).

"*<u>Participant</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.5(d</u>).

"*<u>Participant Register</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.5(d</u>).

"*<u>Patriot Act</u>*" shall have the meaning specified for such term in <u>Section</u> <u>6.15(f</u>).

"*<u>Payment Event of Default</u>*" shall mean an Event of Default pursuant to <u>Section p.1(a</u>).

The "*<u>Payment in Full</u>*" of the Obligations (or any specified Class thereof), and the Obligations (or any specified Class thereof) being "*<u>Paid in Full</u>*", shall, in each case, mean the expiration or earlier termination of all of the Commitments (or of all of the Commitments of the specified Class thereof, as applicable), the payment in full, in immediately available funds, of all of the Obligations (or such specified Class thereof), and, as applicable, the expiration or earlier termination (or Cash Collateralization to the satisfaction of the Issuing Bank) of all Letters of Credit (in each case, without any pending draw) and the reimbursement of all other Letter of Credit Obligations, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) contingent indemnification and expense reimbursement Obligations, in each case of this <u>clause (a</u>), *solely* to the extent that no claim(s) giving rise thereto have been asserted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) obligations, indebtedness and other liabilities under any Secured Swap Agreement or any Secured Treasury Management Agreement owed by any Credit Party, any Subsidiary, or any other Regulated Entity to any Qualifying Swap Provider or any Qualifying Treasury Management Bank (as applicable), *solely* to the extent that security, guarantee and/or other arrangements satisfactory to such Qualifying Swap Provider or such Qualifying Treasury Management Bank with respect to such obligations, indebtedness and other liabilities shall have been made;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) contingent Obligations for which (i) Cash Collateral, (ii) backstopping letters of credit, or (iii) other arrangements have been made, in each case of the foregoing <u>clauses (c)(i</u>) through (<u>c)(iii</u>), that are satisfactory to the holder(s) of such contingent Obligations.

"*<u>Payment Recipient</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(a</u>).

"*<u>PBGC</u>*" shall mean the Pension Benefit Guaranty Corporation or any successor thereto.

"*<u>Pension Plan</u>*" shall mean any "employee pension benefit plan" as defined in Section 3(2) of ERISA other than a Multiemployer Plan, which is subject to Section 412 of the Internal Revenue Code or Section 302 of ERISA and which is sponsored, maintained or contributed to by, or required to be contributed to by, any Credit Party, any Subsidiary or any other Regulated Entity, or with respect to which any Credit Party, any Subsidiary or any other Regulated Entity previously sponsored, maintained or contributed to, or was required to contribute to, and still has liability.

"*<u>Periodic Term SOFR Determination Date</u>*" shall have the meaning specified for such term in the definition of "*Term SOFR*" below.

"*<u>Permitted Acquisition</u>*" shall mean (x) any portfolio investment made by any Regulated Entity in the ordinary course of business, as well as (y) any Acquisition that, *solely* in the case of this <u>clause (y</u>), satisfies each of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Property to be acquired (or the Property of the Person to be acquired) in such Acquisition is a business, or is used or useful in a business, permitted under <u>Section</u> <u>8.14</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the board of directors (or other comparable governing body) of the Person to be acquired (or owning the Property to be acquired) shall have approved the Acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) both immediately *before* and immediately *after* giving effect to such Acquisition (and to the payment of all cash consideration and any incurrence or assumption of Indebtedness in connection therewith, but without giving effect to any "netting" of the cash proceeds thereof against Consolidated Funded Debt):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default shall exist and be continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the representations and warranties made by each of the Credit Parties in each Credit Document to which they are a party shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) as if made on, and as of, the date of consummation of such Acquisition (after giving effect thereto), except to the extent that such representations and warranties expressly relate to an earlier date, in which case, such representations and warranties shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Credit Parties shall be in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis, shall be *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the maximum Consolidated Leverage Ratio then permitted under <u>Section</u> <u>8.8(a</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) there shall be *at least* Ten Million Dollars ($10,000,000) of Liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the aggregate cash and non-cash consideration (including any assumption of Indebtedness, deferred purchase price and any Earn Out Obligations and any equity consideration) paid by the Credit Parties, Subsidiaries and other Regulated Entities (and including, for purposes of clarity, any such Captive Reinsurance Companies) for all such Acquisitions occurring during the term of this Agreement shall *not exceed* twenty-five percent (25.0%) of the consolidated stockholders' equity of the Credit Parties, Subsidiaries and other Regulated Entities (determined based on the consolidated financial statements most recently delivered to the Administrative Agent pursuant to this Agreement at the time of consummation of any such Acquisition); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *at least* five (5) Business Days prior to the consummation of such Acquisition, an Authorized Officer of the Borrower shall provide a certificate, in form and detail reasonably satisfactory to the Administrative Agent, affirming compliance with each of the items set forth in <u>clauses (a</u>) through (<u>d</u>) above.

"*<u>Permitted Holders</u>*" shall mean, collectively: (a) each of (i) David Flitman, an individual resident of the state of Florida, and (ii) Steven Hoffman, an individual resident of the state of Florida; and (b) any trust or other estate-planning vehicle established for the benefit of (i) any such individual referred to in the foregoing <u>clause (a</u>), or (ii) any other individual having a relationship by blood (to the second (2<sup>nd</sup>) degree of consanguinity), marriage, or adoption to any such individual referred to in the foregoing <u>clause (a</u>), and, in each case of the foregoing <u>clauses (b)(i</u>) and (<u>b)(ii</u>), in respect of which such individual referred to in the foregoing <u>clause (a</u>) serves as sole trustee or in a similar capacity.

"*<u>Permitted Liens</u>*" shall mean each of the Liens permitted pursuant to <u>Section</u> <u>8.2</u>.

"*<u>Permitted Refinancing</u>*" shall mean, with respect to any existing Indebtedness, any extension, renewal, refinancing and/or replacement of any such Indebtedness, so long as any such extension, renewal, refinancing and/or replacement of such Indebtedness:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has market terms and conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has a maturity date that is *later than* that of the Indebtedness being extended, renewed or refinanced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) has an average life to maturity that is *greater than* that of the Indebtedness being extended, renewed or refinanced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) does *not* include an obligor that was *not* an obligor with respect to the Indebtedness being extended, renewed or refinanced, unless such obligor is also a Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) remains subordinated if, and to the same extent that, the Indebtedness being extended, renewed or refinanced was subordinated to the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) remains unsecured if the Indebtedness being extended, renewed or refinanced was unsecured;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) does *not exceed* in a principal amount the principal amount of the Indebtedness being renewed, extended, refinanced or replaced, *plus* accrued and unpaid interest and reasonable fees and expenses, premiums and penalties incurred in connection therewith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) is *not* incurred, created or assumed if any Default or Event of Default then exists or would arise therefrom.

"*<u>Person</u>*" shall mean any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"*<u>Platform</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.1(d</u>).

"*<u>Prime Rate</u>*" shall mean the per annum rate which the Administrative Agent publicly announces from time to time to be its prime lending rate, as in effect from time to time. The Administrative Agent's prime lending rate is a reference rate and does *not* necessarily represent the lowest or best rate charged to customers.

"*<u>Principal Office</u>*" shall mean, for the Administrative Agent, the Collateral Agent, the Swingline Lender and the Issuing Bank, such Person's "*Principal Office*" as set forth on <u>Appendix B</u>, or such other office as it may from time to time designate in writing to the Borrower and each Lender.

"*<u>Pro Forma Basis</u>*" shall mean, with respect to any Specified Transaction, whether actual or proposed, for purposes of determining compliance with any of the Financial Covenants (or with any condition(s) and/or test(s) based on such compliance that are subject to calculation on a "*Pro Forma Basis*" as indicated in this Agreement or any other Credit Document, including for purposes of determining the Applicable Margin), Consolidated EBITDA and/or Combined Statutory Surplus (or with any condition(s) and/or test(s) based on Consolidated EBITDA and/or Combined Statutory Surplus that are subject to calculation on a "*Pro Forma Basis*" as indicated in this Agreement or any other Credit Document), that such actual or proposed Specified Transaction shall be deemed to have occurred on, and as of, (I) the first (1<sup>st</sup>) day of the most recently ended Trailing Period, in the case of either of the Financial Covenants set forth in <u>Section</u> <u>8.8(a</u>) or <u>Section</u> <u>8.8(b</u>), or (II) the first (1<sup>st</sup>) day of the most recently ended Fiscal Quarter, in the case of the Financial Covenant set forth in <u>Section</u> <u>8.8(c</u>) (or, in any such case of the foregoing <u>clauses (I</u>) and (<u>II</u>), on, and as of, the first (1<sup>st</sup>) day of such other historical period of time as may be expressly specified in this Agreement or another Credit Document for a specific purpose), and <u>further</u>, the following pro forma adjustments shall be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Asset Sale or Involuntary Disposition, income statement and cash flow statement items (whether positive or negative) attributable to the Property disposed of shall be *excluded* to the extent relating to any period occurring *prior* to the date of such Asset Sale or Involuntary Disposition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Acquisition, income statement items attributable to the Person or Property acquired shall be *included* to the extent relating to any period applicable in such calculations to the extent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) such items are *not* otherwise included in such income statement items for the Credit Parties, Subsidiaries and other Regulated Entities in accordance with GAAP or in accordance with any defined terms set forth in <u>Section</u> <u>1.1</u>; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) such items are supported by financial statements or other information satisfactory to the Administrative Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Indebtedness incurred or assumed by any Credit Party, any Subsidiary, or any other Regulated Entity (including the Person or Property acquired) in connection with such transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall be deemed to have been incurred as of the first (1<sup>st</sup>) day of the applicable period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if such Indebtedness has a floating or formula rate, shall have an implied rate of interest for the applicable period for purposes of this definition determined by utilizing the rate that is, or would be, in effect with respect to such Indebtedness as of the relevant date of determination.

"*<u>Probable Maximum Loss</u>*" shall have the meaning specified and as used by each applicable Insurance Regulatory Authority.

"*<u>Property</u>*" shall mean an interest of any kind in any property or asset, whether real, personal or mixed, and whether tangible or intangible.

"*<u>PTE</u>*" shall mean a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"*<u>QFC</u>*" shall have the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. §–5390(c)(8)(D).

"*<u>QFC Credit Support</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

"*<u>Qualified ECP Guarantor</u>*" shall mean, in respect of any Swap Obligation, each Credit Party that, at the time the Guaranty (or grant of security interest, as applicable) becomes or would become effective with respect to such Swap Obligation, has total assets *exceeding* Ten Million Dollars ($10,000,000) or such other Credit Party as constitutes an "eligible contract participant" under the Commodity Exchange Act and which may cause another Person to qualify as an "eligible contract participant" with respect to such Swap Obligation at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

"*<u>Qualifying Reciprocal Entity</u>*" shall mean, collectively: (a) each of (i) Cajun Underwriters Reciprocal Exchange, and (ii) Manatee Insurance Exchange; and (b) any reciprocal insurance exchange or other similar entity (other than a Regulated Subsidiary or other risk-bearing insurance company Subsidiary) in respect of which a Credit Party whose Equity Interests are pledged as Collateral in accordance with <u>Section</u> <u>7.12(a</u>) is, at all times during the term of this Agreement after the formation of such reciprocal insurance exchange or other similar entity, duly appointed as the attorney-in-fact of such reciprocal insurance exchange pursuant to documentation reasonable acceptable to the Administrative Agent.

"*<u>Qualifying Reinsurer</u>*" shall mean: (a) the Florida Hurricane Catastrophe Fund; (b) any Person (which may include Affiliates of any Credit Party, including Captive Reinsurance Companies) providing reinsurance services with *at least* an "A–" financial strength rating from A.M. Best Company (or any successor in interest thereto); or (c) any Person (which may include Affiliates of any Credit Party, including Captive Reinsurance Companies) providing reinsurance services that has collateralized its obligations to the Regulated Entities at a level consistent with NAIC's requirements for credit on Schedule F of the statutory financial statements of the Regulated Entities.

------

"*<u>Qualifying Swap Provider</u>*" shall mean: (a) any of Regions Bank and its Affiliates; and (b) any Person that (i) at the time it enters into a Swap Agreement with any Credit Party, any Subsidiary or any other Regulated Entity, is a Lender or an Affiliate of a Lender, or (ii) in the case of a Swap Agreement with any Credit Party, any Subsidiary or any other Regulated Entity in effect on or prior to the Closing Date, is, as of the Closing Date or within thirty (30) days thereafter, a Lender or an Affiliate of a Lender, and, in each such case under this <u>clause (b</u>), shall have provided a Secured Party Designation Notice to the Administrative Agent. For purposes hereof, the term "*Lender*" shall be deemed to include the

Administrative Agent.

"*<u>Qualifying Treasury Management Bank</u>*" shall mean: (a) any of Regions Bank and its Affiliates; and (b) any Person that (A) at the time it enters into a Treasury Management Agreement, is a Lender or an Affiliate of a Lender, or (B) in the case of a Treasury Management Agreement in effect on or prior to the Closing Date, is, as of the Closing Date or within thirty (30) days thereafter, a Lender or an Affiliate of a Lender, and, in each such case under this <u>clause (b</u>), shall have provided a Secured Party Designation Notice to the Administrative Agent. For purposes hereof, the term "*Lender*" shall be deemed to include the Administrative Agent.

"*<u>Real Estate Asset</u>*" shall mean, at any time of determination, any interest (fee, leasehold or otherwise) then owned by any Credit Party, any Subsidiary or any other Regulated Entity in any real property.

"*<u>Recipient</u>*" shall mean (a) the Administrative Agent, (b) the Collateral Agent, (c) any Lender, and (d) the Issuing Bank, as applicable.

"*<u>Refunded Swingline Loans</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.2(b)(iii</u>).

"*<u>Register</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.5(c</u>).

"*<u>Regulated Entity</u>*" shall mean, collectively: (a) each Qualifying Reciprocal Entity; and (b) each Regulated Subsidiary.

"*<u>Regulated Subsidiary</u>*" shall mean: (a) each of (i) Safepoint Insurance Company, and (ii) each Captive Reinsurance Company; and (b) any Domestic Subsidiary (i) that is a risk retention entity subject to regulation by a Governmental Authority and/or required by Applicable Laws to utilize SAP and submit them to a Governmental Authority, and (ii) with respect to which the Administrative Agent has received prior written notification that such Domestic Subsidiary constitutes a Regulated Subsidiary.

"*<u>Reimbursement Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.3(d</u>).

"*<u>Related Parties</u>*" shall mean, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"*<u>Release</u>*" shall mean any release, spill, emission, leaking, pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material into the indoor or outdoor environment (including the abandonment or disposal of any barrels, containers or other closed receptacles containing any Hazardous Material), including the movement of any Hazardous Material through the air, soil, surface water or groundwater.

------

"*<u>Relevant Governmental Body</u>*" shall mean the Federal Reserve Board and/or the FRBNY, or a committee officially endorsed or convened by the Federal Reserve Board and/or the FRBNY, or any successor thereto.

"*<u>Removal Effective Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.6(b</u>).

"*<u>Required DDTL Lenders</u>*" shall mean, as of any date of determination, *at least* two (2) unaffiliated Lenders (unless there is only one (1) Lender at such time, in which case, such Lender) having Total Credit Exposures of the types described in clauses (a) (*solely* with respect to the Delayed Draw Term Loan) and (c) of the definition of "*Total Credit Exposure*" below, taken together, representing *more than* fifty percent (50.0%) of the *sum of* the Total Credit Exposures of such types of all of the Lenders at such time, taken together; <u>provided</u>, <u>that</u>, the Total Credit Exposure of any Defaulting Lender shall be *excluded* for purposes of making a determination of Required DDTL Lenders.

"*<u>Required Lenders</u>*" shall mean, as of any date of determination, *at least* two (2) unaffiliated Lenders (unless there is only one (1) Lender at such time, in which case, such Lender) having Total Credit Exposures, taken together, representing *more than* fifty percent (50.0%) of the *sum of* the Total Credit Exposures of all of the Lenders at such time, taken together; <u>provided</u>, <u>that</u>, the Total Credit Exposure of any Defaulting Lender shall be *excluded* for purposes of making a determination of Required Lenders.

"*<u>Required Revolving Lenders</u>*" shall mean, as of any date of determination, *at least* two (2) unaffiliated Lenders (unless there is only one (1) Lender at such time, in which case, such Lender) having Total Credit Exposures of the types described in clauses (b) and (d) of the definition of "*Total Credit Exposure*" below, taken together, representing *more than* fifty percent (50.0%) of the *sum of* the Total Credit Exposures of such types of all of the Lenders at such time, taken together; <u>provided</u>, <u>that</u>, the Total Credit Exposure of any Defaulting Lender shall be *excluded* for purposes of making a determination of Required Revolving Lenders.

"*<u>Resignation Effective Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.6(a</u>).

"*<u>Resolution Authority</u>*" shall mean an EEA Resolution Authority, or, with respect to any UK Financial Institution, a UK Resolution Authority.

"*<u>Restricted Payment</u>*" shall mean any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in any Credit Party or Subsidiary, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests, or on account of any return of capital to such Person's stockholders, partners or members (or the equivalent Person thereof), or any setting apart of funds or Property for any of the foregoing (but *not* including, for purposes of clarity, any dividend or other distribution (whether in cash, securities or other Property) made by any Qualifying Reciprocal Entity to any of its policyholders).

"*<u>Returned Reinsurance Investments</u>*" shall mean, with respect to any Investment (the "*<u>original</u> <u>Investment</u>*" for a Returned Reinsurance Investment) made by the Credit Parties in a Captive Reinsurance Company during the treaty period for an applicable reinsurance agreement that is used (or the Net Cash Proceeds of which are used) by such Captive Reinsurance Company to provide cash collateral in connection with such reinsurance agreement, the portion of the Net Cash Proceeds of such original Investment that are returned to the Credit Parties in satisfaction of such original Investment by *not later than* the date that is ninety (90) calendar days after the end of such treaty period.

------

"*<u>Revolver Availability Period</u>*" shall mean the period from, and including, the Closing Date to, but *excluding*, the Revolving Commitment Termination Date.

"*<u>Revolving Commitment</u>*" shall mean, with respect to each Lender, the obligation of such Lender to advance (or to otherwise fund) its respective portion of principal under Revolving Loans from time to time made during the Revolver Availability Period pursuant to <u>Section</u> <u>2.1(a</u>) and to otherwise acquire participations in Letters of Credit and Swingline Loans in accordance with the terms of this Agreement, in an aggregate principal amount advanced (or otherwise funded or acquired) by such Lender *not to exceed* the applicable amount set forth with respect to such Lender as such Lender's "*Revolving Commitment*" on <u>Appendix A</u> (or in the applicable Assignment Agreement pursuant to which such Lender becomes a party to this Agreement after the First Amendment Effective Date, as applicable) at any time outstanding, subject to any increase(s), adjustment(s) and/or reduction(s) pursuant to the terms and conditions of this Agreement.

"*<u>Revolving Commitment Percentage</u>*" shall mean, with respect to each Lender at any time, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the amount of such Lender's Revolving Commitment (if any) in effect at such time; and (b) the *denominator* of which is the Aggregate Revolving Commitment Amount in effect at such time. The Revolving Commitment Percentages of each Lender as of the First Amendment Effective Date are set forth on <u>Appendix A</u>.

"*<u>Revolving Commitment Termination Date</u>*" shall mean the *earliest* to occur of: (a) the date that is the fifth (5<sup>th</sup>) anniversary of the Closing Date (or, if such date is *not* a Business Day, the immediately prior Business Day); (b) the date on which the Borrower shall have provided written notice to the Administrative Agent of its election to terminate the Aggregate Revolving Commitments in accordance with <u>Section</u> <u>2.11(b</u>); and (c) the date on which the Aggregate Revolving Commitments shall have been terminated, and/or all amounts outstanding under this Agreement shall have been declared, or automatically have become, due and payable, in each case of the foregoing of this <u>clause (c</u>), pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise).

"*<u>Revolving Credit Exposure</u>*" shall mean, with respect to any Lender at any time, the *sum of*: (a) the aggregate outstanding principal balances of the respective portions of each then outstanding Revolving Loan advanced by such Lender, taken together, at such time; *plus* (b) the aggregate amount of such Lender's participation obligations in respect of Letters of Credit Obligations and Swingline Loans, taken together, at such time.

"*<u>Revolving Loan</u>*" shall mean a Loan made by the Lenders to the Borrower pursuant to <u>Section</u> <u>2.1(a</u>).

"*<u>Revolving Obligations</u>*" shall mean, collectively, the Revolving Loans, the Letter of Credit Obligations, and the Swingline Loans.

"*<u>S&P</u>*" shall mean Standard & Poor's, a Standard & Poor's Financial Services LLC business, together with its successors.

"*<u>Sale and Leaseback Transaction</u>*" shall mean, with respect to any Credit Party, any Subsidiary or any other Regulated Entity, any arrangement, directly or indirectly, with any Person (other than a Credit Party) whereby any such Person(s) shall sell or transfer any Property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such Property or other Property that it intends to use for substantially the same purpose(s) as the Property being sold or transferred.

------

"*<u>SAP</u>*" shall mean the statutory accounting practices prescribed or permitted by the insurance commissioner (or other similar authority) as of the Closing Date in the jurisdiction of incorporation or formation (as applicable) of an applicable Regulated Entity for the preparation of annual statements and other financial reports by insurance companies of the same type as such Regulated Entity.

"*<u>Sanctioned Country</u>*" shall mean (a) a country, a territory, or a government of a country or territory, (b) an agency of the government of a country or a territory, or (c) an organization directly or indirectly owned or controlled by a country, a territory or its government, in each case of the foregoing <u>clauses (a</u>) through (<u>c</u>), that is subject to Sanctions.

"*<u>Sanctioned Person</u>*" shall mean: (a) a Person named on the list of "Specially Designated Nationals" or any other Sanctions related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union or any European Union member state; (b) any Person operating, organized or resident in a Sanctioned Country; or (c) any Person owned or controlled by any such Person or Persons described in the foregoing <u>clauses (a</u>) or (<u>b</u>).

"*<u>Sanctions</u>*" shall mean economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by: (a) the U.S. government, including those administered by OFAC or the U.S. Department of State; (b) the United Nations Security Council; (c) the European Union; (d) any European Union member state; (e) His Majesty's Treasury of the United Kingdom; or (f) any other relevant sanctions authority.

"*<u>SEC</u>*" shall mean the United States Securities and Exchange Commission.

"*<u>Secured Party Designation Notice</u>*" shall mean a notice in the form of <u>Exhibit 1.1</u> (or other writing in form and substance satisfactory to the Administrative Agent) from a Qualifying Swap Provider or a Qualifying Treasury Management Bank to the Administrative Agent that it holds Obligations entitled to share in the guaranties and collateral interests provided herein in respect of a Secured Swap Agreement or Secured Treasury Management Agreement, as appropriate.

"*<u>Secured Swap Agreement</u>*" shall mean any Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and a Qualifying Swap Provider, on the other hand. For the avoidance of doubt, a holder of Obligations in respect of a Secured Swap Agreement shall be subject to the provisions of <u>Section</u> <u>9.3</u> and <u>Section</u> <u>10.10</u>.

"*<u>Secured Swap Obligations</u>*" shall mean all obligations owing to a Qualifying Swap Provider in connection with any Secured Swap Agreement including any and all cancellations, buy backs, reversals, terminations or assignments of any Secured Swap Agreement, any and all renewals, extensions and modifications of any Secured Swap Agreement and any and all substitutions for any Secured Swap Agreement, including all fees, costs, expenses and indemnities, whether primary, secondary, direct, fixed or otherwise (including any monetary obligations incurred during the pendency of any bankruptcy or insolvency proceedings, regardless of whether allowed or allowable in such bankruptcy or insolvency proceedings), in each case, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising.

"*<u>Secured Treasury Management Agreement</u>*" shall mean any Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and a Qualifying Treasury Management Bank, on the other hand. For the avoidance of doubt, a holder of Obligations in respect of a Secured Treasury Management Agreement shall be subject to the provisions of <u>Section</u> <u>9.3</u> and <u>Section</u> <u>10.10</u>.

------

"*<u>Secured Treasury Management Obligations</u>*" shall mean all obligations owing to a Qualifying Treasury Management Bank under a Secured Treasury Management Agreement, including all fees, costs, expenses and indemnities, whether primary, secondary, direct, fixed or otherwise (including any monetary obligations incurred during the pendency of any bankruptcy or insolvency proceedings, regardless of whether allowed or allowable in such bankruptcy or insolvency proceedings), in each case, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising.

"*<u>Securities</u>*" shall mean any stock, shares, partnership interests, limited liability company interests, voting trust certificates, certificates of interest or participation in any profit-sharing agreement or arrangement (*e*.*g*., stock appreciation rights), options, warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as "securities" or any certificates of interest, shares or participations in temporary or interim certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing.

"*<u>Security Agreement</u>*" shall mean that certain Security and Pledge Agreement, dated as of the Closing Date, given by the Credit Parties, as obligors, to the Collateral Agent, for the benefit of the holders of the Obligations, and any other pledge agreements or security agreements that may be given by any Person pursuant to the terms hereof, in each case, as the same may be amended, restated, amended and restated, supplemented, replaced, and/or otherwise modified in writing from time to time.

"*<u>Securitization Transaction</u>*" shall mean any financing or factoring or similar transaction (or series of such transactions) entered by any Credit Party, any Subsidiary or any other Regulated Entity pursuant to which any such Person(s) may sell, convey or otherwise transfer, or grant a security interest in, accounts, payments, receivables, rights to future lease payments or residuals or similar rights to payment (the "*<u>Securitization Receivables</u>*") to a special purpose subsidiary or affiliate (a "*<u>Securitization</u> <u>Subsidiary</u>*") or any other Person.

"*<u>SOFR</u>*" shall mean, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator's Website on the immediately succeeding U.S. Government Securities Business Day; <u>provided</u>, <u>that</u>, if such published rate is subsequently corrected and provided by the SOFR Administrator, or on the SOFR Administrator's Website, within the *longer* of (i) one (1) hour of the time when such rate was first published, and (ii) the republication cut-off time for SOFR, if any, as specified by the SOFR Administrator in the applicable SOFR benchmark methodology, then "*SOFR*" shall instead mean such secured overnight financing rate for such Business Day subject to those corrections.

"*<u>SOFR Administrator</u>*" shall mean the FRBNY (or any successor administrator of the secured overnight financing rate).

"*<u>SOFR Administrator</u>*<u>'</u>*<u>s Website</u>*" shall mean the website of the FRBNY accessible at (as of the Closing Date) <u>https://www.newyorkfed.org,</u> or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

"*<u>SOFR</u>*<u>-</u>*<u>Based Rate</u>*" shall mean each of Term SOFR for any Interest Period and Daily Simple SOFR.

"*<u>SOFR Borrowing</u>*" shall mean a Borrowing, the Loans in respect of which bear interest at a rate determined by reference to Term SOFR for any available Interest Period, other than pursuant to clause (c) of the definition of "*Base Rate*" above.

------

"*<u>SOFR Loan</u>*" shall mean a Loan bearing interest at a rate determined by reference to Term SOFR for any available Interest Period, other than pursuant to clause (c) of the definition of "*Base Rate*" above.

"*<u>SOFR Reference Rate</u>*" shall mean the rate per annum determined by the Administrative Agent as the forward-looking term rate based on SOFR for an applicable tenor.

"*<u>Solvent</u>*" or "*<u>Solvency</u>*" shall mean, with respect to any Person as of a particular date, that on such date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such Person is able to pay its debts and other liabilities, contingent obligations and other commitments as they mature in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Person does *not* intend to, and does *not* believe that it will, incur debts or liabilities beyond such Person's ability to pay as such debts and liabilities mature in their ordinary course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such Person is *not* engaged in a business or a transaction, and is *not* about to engage in a business or a transaction, for which such Person's Property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which such Person is engaged or is to engage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the fair value of the Property of such Person is *greater than* the total amount of liabilities, including, without limitation, contingent liabilities, of such Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the present fair salable value of the Property of such Person is *not less than* the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured.

In computing the amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

"*<u>Specified Credit Party</u>*" shall mean any Credit Party that is, at the time on which the Guaranty (or grant of security interest, as applicable) becomes effective with respect to a Swap Obligation, a corporation, partnership, proprietorship, organization, trust or other entity that would *not* be an "eligible contract participant" under the Commodity Exchange Act at such time but for the effect of <u>Section</u> <u>4.8</u>.

"*<u>Specified Equity Contribution</u>*" shall have the meaning provided for such term in <u>Section</u> <u>9.4(a</u>).

"*<u>Specified Transaction</u>*" shall mean any Asset Sale, any Involuntary Disposition, any Acquisition, the making of any Investment, the declaration and/or making of any Restricted Payment, the establishment and/or incurrence of any Incremental Facility, any Debt Transaction, any Equity Transaction or any other contribution of equity capital (whether in cash or otherwise), any Sale and Leaseback Transaction, any Securitization Transaction, and/or any other transaction that is subject to calculation on a "*Pro Forma Basis*" as indicated in this Agreement or any other Credit Document (or in any other agreement, document, certificate and/or instrument executed and/or delivered in connection herewith or therewith).

"*<u>Statutory Surplus</u>*" shall mean, as of any date of determination for any Regulated Entity, the total capital and surplus of such Regulated Entity, determined in accordance with SAP.

------

"*<u>Subsidiary</u>*" shall mean, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which *more than* fifty percent (50.0%) of the Voting Stock is at the time owned or controlled, directly or indirectly, by that Person, or the accounts of which would be consolidated with those of such Person in its consolidated financial statements in accordance with GAAP, if such statements were prepared as of such date, or one or more of the other Subsidiaries of that Person or a combination thereof; <u>provided</u>, <u>that</u>, (i) in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a "qualifying share" of the former Person shall be deemed to be outstanding, and (ii) notwithstanding anything to the contrary in the foregoing of this definition, each Regulated Subsidiary shall be deemed to be a Subsidiary of the Borrower. Unless otherwise expressly stated, all references to "Subsidiary" in this Agreement and each other Credit Document shall refer to a Subsidiary of the Borrower (including, for purposes of clarity, each Regulated Subsidiary).

"*<u>Subsidiary Determination Date</u>*" shall mean any date on which financial statements and/or any related Compliance Certificate are, or are required to be, delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>).

"*<u>Supported QFC</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

"*<u>Swap Agreement</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, currency swap transactions, cross-currency rate swap transactions, currency options, cap transactions, floor transactions, collar transactions, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options or warrants to enter into any of the foregoing), whether or not any such transaction is governed by, or otherwise subject to, any master agreement or any netting agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any and all transactions or arrangements of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement (or similar documentation) published from time to time by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such agreement or documentation, together with any related schedules, a "*<u>Master Agreement</u>*"), including any such obligations or liabilities under any Master Agreement.

"*<u>Swap Obligation</u>*" shall mean, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a "swap" within the meaning of Section 1a(47) of the Commodity Exchange Act.

"*<u>Swap Termination Value</u>*" shall mean, in respect of any one or more Swap Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Agreements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any date on or after the date such Swap Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any date prior to the date referenced in <u>clause (a</u>), the amount(s) determined as the mark-to-market value(s) for such Swap Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Agreements (which may include a Lender or any Affiliate of a Lender).

------

"*<u>Swingline Lender</u>*" shall mean Regions Bank in its capacity as Swingline Lender hereunder, together with its permitted successors and assigns in such capacity.

"*<u>Swingline Loan</u>*" shall mean a Loan made by the Swingline Lender to the Borrower pursuant to <u>Section</u> <u>2.2</u>.

"*<u>Swingline Rate</u>*" shall mean the Base Rate *plus* the Applicable Margin applicable to Base Rate Loans (or, with respect to any Swingline Loan advanced pursuant to an Auto Borrow Agreement, such other rate as separately agreed in writing between the Borrower and the Swingline Lender).

"*<u>Swingline Sublimit</u>*" shall mean, as of any date of determination, the *lesser* of: (a) Four Million Dollars ($4,000,000); and (b) the aggregate unused amount of the Revolving Commitments then in effect.

"*<u>Synthetic Lease</u>*" shall mean a lease transaction under which the parties intend that: (a) the lease will be treated as an "operating lease" by the lessee pursuant to Statement of Financial Accounting Standards No. 13, as amended; and (b) the lessee will be entitled to various tax and other benefits ordinarily available to owners (as opposed to lessees) of like Property.

"*<u>Taxes</u>*" shall mean all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"*<u>Term Loans</u>*" shall mean, collectively, the Term Loan A, the Delayed Draw Term Loan, and any Incremental Term Loans.

"*<u>Term Loan A</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.1(b</u>).

"*<u>Term Loan A Commitment</u>*" shall mean, with respect to each Lender, the obligation of such Lender to advance its respective portion of principal under the Term Loan A on the Closing Date pursuant to <u>Section</u> <u>2.1(b</u>), in an aggregate original principal amount advanced by such Lender on the Closing Date equal to the applicable amount set forth with respect to such Lender as such Lender's "*Term Loan A Commitment*" on <u>Appendix A</u>.

"*<u>Term Loan A Commitment Percentage</u>*" shall mean, with respect to each Lender at any time, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the *sum of* (i) the amount of such Lender's Term Loan A Commitment (if any) in effect at such time, *plus* (ii) the aggregate principal balance of the portion of the Term Loan A advanced by such Lender that is outstanding at such time; and (b) the *denominator* of which is the *sum of* (i) the Aggregate Term Loan A Commitment Amount in effect at such time, *plus* (ii) the aggregate outstanding principal balance of the Term Loan A at such time. The Term Loan A Commitment Percentages of each Lender as of the Closing Date are set forth on <u>Appendix A</u>.

"*<u>Term Loan Commitments</u>*" shall mean, collectively, the Term Loan A Commitments, the DDTL Commitments and any Incremental Term Loan Commitments.

------

"*<u>Term SOFR</u>*" means, as of any date of determination, for any calculations with respect to a SOFR Loan and/or a SOFR Borrowing and/or any determination of the Base Rate pursuant to clause (c) of the definition of "*Base Rate*" above, the rate per annum equal to the SOFR Reference Rate for a

forward-looking tenor comparable to the then applicable or selected (as applicable) Interest Period for such SOFR Loan or SOFR Borrowing (or for a forward-looking one (1) month tenor, in the case of any determination of the Base Rate pursuant to clause (c) of the definition of "*Base Rate*" above), determined as of the date (such date, a "*<u>Periodic Term SOFR Determination Date</u>*") that is two (2) U.S. Government Securities Business Days *prior* to the first (1<sup>st</sup>) day of such Interest Period, as such rate is published by the Term SOFR Administrator on such Periodic Term SOFR Determination Date; <u>provided</u>, <u>that</u>, (a) if, as of 11:00 a.m. (New York City time) on any Periodic Term SOFR Determination Date, the SOFR Reference Rate for the applicable tenor has *not* been published by the Term SOFR Administrator, then "*Term SOFR*" shall instead mean the SOFR Reference Rate for such applicable tenor as published by the Term SOFR Administrator on the first (1<sup>st</sup>) preceding U.S. Government Securities Business Day for which such SOFR Reference Rate for such applicable tenor was published by the Term SOFR Administrator, subject to <u>Section</u> <u>3.1</u>, and (b) if, at any time, Term SOFR (determined in accordance with the foregoing of this definition of "*Term SOFR*", including in accordance with the foregoing <u>clause (a</u>) of this proviso) is *less than* the Floor, then Term SOFR shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents. Any change(s) in Term SOFR for any Interest Period due to any change(s) in the SOFR Reference Rate for a comparable tenor shall be effective from, and including, the effective date of any such change(s) in such SOFR Reference Rate, without further notice to any Credit Party, any Subsidiary, any other Regulated Entity, any other party to this Agreement or any other Credit Document, or any other Person.

"*<u>Term SOFR Administrator</u>*" means, the CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the SOFR Reference Rate for any applicable tenor selected by the Administrative Agent in its reasonable discretion).

"*<u>Threshold Amount</u>*" shall mean One Million Dollars ($1,000,000).

"*<u>Title Policy</u>*" shall have the meaning specified for such term in <u>Section</u> <u>7.11(b)(iii</u>).

"*<u>Total Credit Exposure</u>*" shall mean, with respect to any Lender at any time, the *sum of*: (a) the *sum of* the aggregate outstanding principal balances of the respective portions of each then outstanding Term Loan advanced by such Lender, taken together, at such time; *plus* (b) the unused amount of such Lender's respective Revolving Commitment in effect at such time; *plus* (c) the unused amount of such Lender's respective DDTL Commitment in effect at such time; *plus* (d) such Lender's Revolving Credit Exposure at such time.

"*<u>Trailing Period</u>*" shall mean, as of any date of determination, the period consisting of the four (4) consecutive full Fiscal Quarters most recently ended as of such date of determination.

"*<u>Treasury Management Agreement</u>*" shall mean any agreement governing the provision of treasury or cash management services, including deposit accounts, funds transfer, automated clearinghouse, commercial credit cards, purchasing cards, cardless e-payable services, debit cards, stored value cards, zero balance accounts, returned check concentration, controlled disbursement, lockbox, account reconciliation and reporting and trade finance services.

"*<u>Type</u>*", when used in reference to a Loan or Borrowing, shall refer to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to Term SOFR for any Interest Period (other than pursuant to clause (c) of the definition of "*Base Rate*" above) or the Base Rate (including, for the avoidance of doubt, pursuant to clause (c) of the definition of "*Base Rate*" above).

"*<u>UCC</u>*" shall mean the Uniform Commercial Code (or any similar or equivalent legislation) as in effect in the State of New York (or any other applicable jurisdiction, as the context may require).

------

"*<u>UK Financial Institution</u>*" shall mean any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"*<u>UK Resolution Authority</u>*" shall mean the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"*<u>United States</u>*" or "*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u>" shall mean the United States of America.

"*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Government Securities Business Day</u>*" shall mean any day, other than: (a) a Saturday or a Sunday; or (b) any day on which SIFMA recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in U.S. government securities.

"*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Person</u>*" shall mean any Person that is a "United States person" as defined in Section 7701(a)(30) of the Internal Revenue Code.

"*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Special Resolution Regime</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

"*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Tax Compliance Certificate</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.3(f</u>).

"*<u>Unadjusted Benchmark Replacement</u>*" shall mean the applicable Benchmark Replacement without giving effect to the Benchmark Replacement Adjustment.

"*<u>Voting Stock</u>*" shall mean, with respect to any Person, Equity Interests issued by such Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even though the right so to vote has been suspended by the happening of such a contingency.

"*<u>Weighted Average Life</u>*" shall mean, when applied to any Indebtedness as of any date of determination, the number of years obtained by *dividing*: (a) the *sum of* the products obtained by *multiplying* (i) the amount of each then-remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof, *by* (ii) the number of years (calculated to the nearest one-twelfth (1/12)) that will elapse between such date and the making of such payment; *by* (b) the then-outstanding principal amount of such Indebtedness.

"*<u>Wholly Owned Subsidiary</u>*" shall mean, as of any date of determination, with respect to any Person, any Subsidiary of such Person of which all of the Equity Interests (other than, in the case of a Foreign Subsidiary, Equity Interests in such Foreign Subsidiary issued to (i) qualify directors, to the extent required by Applicable Law, or (ii) satisfy other requirements of Applicable Law with respect to the ownership of Equity Interests in such Foreign Subsidiary) are, as of such date, directly or indirectly owned and controlled by such Person or by one (1) or more other Wholly Owned Subsidiaries of such Person (or by a combination of the foregoing). Unless otherwise expressly stated, all references to "Wholly Owned Subsidiary" in this Agreement and each other Credit Document shall refer to a Wholly Owned Subsidiary of the Borrower (including, for purposes of clarity, each Regulated Subsidiary that is a Wholly Owned Subsidiary of the Borrower).

------

"*<u>Withholding Agent</u>*" shall mean any Credit Party and the Administrative Agent.

"*<u>Write</u>*<u>-</u>*<u>Down and Conversion Powers</u>*" shall mean: (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule; and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution, or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that Person or any other Person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it, or to suspend any obligation in respect of that liability, or any of the powers under that Bail-In legislation that are related or ancillary to any of those powers.

Section 1.2 <u>Accounting Terms</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise expressly provided in this Agreement or any other Credit Document, all accounting terms used in this Agreement and the other Credit Documents shall be interpreted, all accounting determinations under this Agreement and the other Credit Documents shall be made, and all financial statements required to be delivered under this Agreement and the other Credit Documents shall be prepared, in each case of the foregoing, in accordance with GAAP or SAP (as applicable), as in effect from time to time, applied on a basis consistent with the most recent consolidated financial statements of the Credit Parties and Subsidiaries delivered pursuant to <u>Section</u> <u>7.1(b</u>) (or, if, at any time, no such financial statements have been delivered pursuant to <u>Section</u> <u>7.1(b</u>), then on a basis consistent with the Annual Financial Statements); <u>provided</u>, <u>that</u>, if the Borrower notifies the Administrative Agent that the Borrower wishes to amend any Financial Covenant to eliminate the effect of any change(s) in GAAP or SAP (as applicable) on the operation of such Financial Covenant (or, if the Administrative Agent notifies the Borrower that the Required Lenders wish to amend <u>Section</u> <u>8.8</u> for such purpose), then the Credit Parties' compliance with such Financial Covenant shall be determined on the basis of GAAP or SAP (as applicable) as in effect on the date immediately *prior* to the date on which the relevant change(s) in GAAP or SAP (as applicable) became effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Borrower and the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, at any time, any change in GAAP or SAP, or in the consistent application thereof, would affect the computation of any Financial Covenant or any other requirement set forth in any Credit Document, and either the Borrower or the Required Lenders shall object in writing to determining compliance based on such change, then the Lenders and the Borrower shall negotiate in good faith to amend such Financial Covenant, other requirement or applicable defined term(s) to preserve the original intent thereof in light of such change to GAAP or SAP (as applicable), <u>provided</u>, <u>that</u>, until so amended such computations shall continue to be made on a basis consistent with the most recent financial statements delivered pursuant to <u>Section</u> <u>7.1</u> as to which no such objection has been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in the foregoing or elsewhere in this Agreement or any other Credit Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all terms of an accounting or financial nature used in this Agreement or any other Credit Document shall be construed, and all computations of amounts and ratios referred to in this Agreement or any other Credit Document shall be made, in each case of the foregoing, without giving effect to any election under Accounting Standards Codification Section 825–10 (or any other Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of any Credit Party, any Subsidiary or any other Regulated Entity at "fair value" (as defined therein); and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for purposes of determining compliance with any covenant (including the computation of any Financial Covenant) set forth in this Agreement or any other Credit Document, Indebtedness of the Credit Parties, Subsidiaries and other Regulated Entities shall be deemed to be carried at one hundred percent (100.0%) of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470–20 on financial liabilities shall be disregarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary in the foregoing, the parties hereto acknowledge and agree that (A) all calculations in accordance with <u>Section</u> <u>8.8</u> of the Financial Covenants (but *not* including, for purposes of clarity, the testing of any availability, basket or other condition set forth in any Article or Section of this Agreement or any other Credit Document other than in <u>Section</u> <u>8.8</u> that requires, by its terms, that any Financial Covenant measurement(s) be calculated on a Pro Forma Basis), and (B) all calculations of the Consolidated Leverage Ratio for purposes of determining the Applicable Margin, in each case of the foregoing <u>clauses (c)(A</u>) and (<u>c)(B</u>), shall be made on a Pro Forma Basis *solely* with respect to (i) any Asset Sale of all of the outstanding Equity Interests in, or all, or substantially all, of the Property of, any Credit Party, any Subsidiary or any other Regulated Entity, (ii) any Asset Sale of a line of business or division of any Credit Party, any Subsidiary or any other Regulated Entity, or (iii) any Acquisition (including any related incurrence or assumption of Indebtedness), in each case of the foregoing <u>clauses (c)(i</u>) through (<u>c)(iii</u>), consummated during the applicable period of measurement, and no other Specified Transactions consummated during the applicable period of measurement shall be given effect on a Pro Forma Basis for purposes of such specified calculations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For purposes of determining compliance with any applicable basket permission(s) set forth in <u>Article 8</u> with respect to any item incurred, granted, paid, invested, made or disposed of (as applicable) in reliance on such basket permission(s) that is denominated in any currency other than Dollars, the amount of such item shall be deemed to be the Dollar-equivalent amount (as determined by the Administrative Agent) of the amount (denominated in a currency other than Dollars) of such item. In the event that any basket permission set forth in <u>Article 8</u> is exceeded *solely* as a result of fluctuations, after the last time that such basket permission was utilized or relied on by a Credit Party, Subsidiary or other Regulated Entity, between the amount (denominated in a currency other than Dollars) of any item incurred, granted, paid, invested, made or disposed of (as applicable) measured as of such time, on the one hand, and the Dollar-equivalent amount thereof (as determined by the Administrative Agent), on the other hand, then such basket permission shall *not* be deemed to have been exceeded *solely* as a result of such currency exchange rate fluctuations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything to the contrary in this Agreement or any other Credit Document, any calculation of "extraordinary gains", "extraordinary losses" and/or "extraordinary charges" shall, in each case for all purposes of this Agreement and the other Credit Documents (including, without limitation, for any determination of Consolidated EBITDA or Consolidated Net Income), be determined by reference to GAAP as in effect immediately *prior* to giving effect to FASB's Accounting Standards Update No. 2015–01.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event that any Lien, any Indebtedness (whether tested at the time of initial incurrence, upon application of all, or any portion, of the proceeds thereof, or otherwise), any Asset Sale or other disposition, any Acquisition or other Investment, any Restricted Payment, any Affiliate transaction, any restrictive agreement and/or any prepayment of Indebtedness (as applicable), or any other transaction that is subject to any of the negative covenant restrictions set forth in <u>Article 8</u>, meets the criteria of one (1) or more of the categories of transactions then expressly permitted pursuant to any clause of the applicable Section(s) of <u>Article 8</u>, then such transaction (or portion thereof, as applicable) at any time shall be permitted under one (1) or more of such clauses of such Section(s) as the Borrower may determine in its sole discretion at such time (unless otherwise expressly and specifically restricted

------

pursuant to the terms of this Agreement), and, for the avoidance of doubt, unless otherwise expressly and specifically restricted pursuant to the terms of this Agreement, the Borrower may subsequently reclassify or divide (as applicable) such transaction (or portion thereof, as applicable) among such permitting clauses of such applicable Section(s) and shall only be required, at any given time, to count such transaction (or portion thereof, as applicable) as permitted in reliance on one (1) of such permitting clauses of such applicable Section(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) For purposes of determining the amount of any Earn Out Obligations and/or other deferred purchase price obligations of any Person for purposes of this Agreement and the other Credit Documents, the amount of such Earn Out Obligations and/or other deferred purchase price obligations shall be deemed to be the aggregate liability in respect thereof required to be reflected as a liability on the balance sheet of such Person in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything to the contrary in this Agreement or any other Credit Document, all liability amounts shall be determined *excluding* any liability relating to any operating lease, all asset amounts shall be determined *excluding* any right-of-use assets relating to any operating lease, all amortization amounts shall be determined *excluding* any amortization of a right-of-use asset relating to any operating lease, and all interest amounts shall be determined *excluding* any deemed interest comprising a portion of fixed rent payable under any operating lease, in each case of the foregoing, to the extent that such liability, asset, amortization or interest pertains to an operating lease under which the covenantor or a member of its consolidated group is the lessee and would *not* have been accounted for as such under GAAP as in effect on December 31, 2015.

Section 1.3 <u>Rules of Interpretation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Terms Generally</u>. The definitions of terms used in this Agreement and the other Credit Documents shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "*include*", "*includes*" and "*including*" shall be deemed to be followed by the phrase ", *without limitation*,". The word "*will*" shall be construed to have the same meaning and effect as the word "*shall*". In the computation of periods of time from a specified date to a later specified date, unless otherwise specified, the word "*from*" shall mean "*from*, *and including*," and the word "*to*" shall mean "*to*, *but excluding*,". In addition, unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any definition of, or reference to, any agreement, instrument or other document (including any Organizational Document) shall be construed as referring to such agreement, instrument or other document as it was originally executed, or as it may from time to time be amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing, as applicable (subject to any restrictions on such amendments, restatements, amendments and restatements, supplements, increases, extensions, refinancings, renewals, replacements, and/or other written modifications as set forth in this Agreement or any other Credit Document);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any reference in any Credit Document to any Person shall be construed to include such Person's successors and permitted assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the words "*hereof*", "*herein*" and "*hereunder*", and words of similar import, when used in any Credit Document, shall be construed to refer to such Credit Document as a whole, and *not* to any particular provision hereof or thereof;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all references in any Credit Document to Articles, Sections, Appendices, Exhibits and/or Schedules shall be construed to refer to Articles, Sections, Appendices, Exhibits and/or Schedules, as applicable, to or of the Credit Document in which such reference appears;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all references contained in a Section, clause, sub-clause or definition to clauses, sub-clauses or definitions occurring "above" or "below", or to any "foregoing", "preceding" or "proceeding" clauses, sub-clauses or definitions, in each case of the foregoing, shall refer to the applicable clause or sub-clause of, or definition set forth in, such Section or such clause, sub-clause or definition, as the case may be, and all general references contained in a Section, or a clause or sub-clause thereof, to "the above" or "the below" shall refer, collectively, to all provisions of such Section, clause or sub-clause, as applicable, occurring prior to or after, as applicable, the occurrence of such general reference;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all references herein to sums denominated in Dollars or dollars, or with the symbol "$", refer to the lawful currency of the United States, unless such reference specifically identifies another currency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any reference in any Credit Document to a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term shall be deemed to apply to a division of or by a limited liability company or a limited partnership, or an allocation of assets to a series of a limited liability company or a limited partnership (or the unwinding of such a division or allocation), as if it were a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term, as applicable, to, of, or with a separate Person, and any division of a limited liability company or a limited partnership shall constitute a separate Person hereunder or thereunder (and each division of any limited liability company or limited partnership that is a subsidiary, joint venture, or any other like term shall also constitute such a Person);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any definition of, or reference to, any Applicable Law shall include all statutory and regulatory rules, regulations, orders and provisions consolidating, amending, replacing, and/or interpreting such Applicable Law, and any definition of, or reference to, any Applicable Law shall, unless otherwise expressly specified, refer to such Applicable Law as amended, modified, and/or supplemented from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the words "*asset*" and "*property*" shall be construed to have the same meaning and effect, and to refer to any and all real and personal, tangible and intangible Properties, including, without limitation, cash, securities, accounts and contract rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) unless otherwise expressly specified, all references in this Agreement or any other Credit Document to times of day shall be references to Eastern time (daylight or standard, as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) the terms "*lease*" and "*license*" shall include any sub-lease and/or any sub-license, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) all terms (whether or not capitalized in occurrence) used in this Agreement and the other Credit Documents that are *not* specifically defined in this Agreement or any other Credit Document, or under GAAP, but are defined in the UCC, shall have the respective meanings provided for such terms in the UCC, with the term "*instrument*" having the meaning provided for such term in Article 9 of the UCC;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) (A) whenever the phrase "appraised value" (or words of like or similar import) is used in this Agreement or any other Credit Document with respect to any Real Estate Asset, such "appraised value" (or words of like or similar import) shall mean the value of such Real Estate Asset determined using an Appraisal; and (B) whenever the phrases "updated Appraisal", "updated appraisal" or "an update thereof" (or words of like or similar import) relating to an Appraisal or other appraisal are used in this Agreement or any other Credit Document, any such "update" shall be in form and substance, and from a third-party provider, reasonably acceptable to the Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) whenever the phrase "*to the knowledge of*" (or words of like or similar import) relating to the knowledge of any Credit Party, any Subsidiary or any other Regulated Entity is used in this Agreement or any other Credit Document, such phrase shall mean, and refer to, the actual knowledge of any Authorized Officer of such Person(s) after due inquiry; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) for purposes of clarity and unless the context expressly provides otherwise, any references in this Agreement or any other Credit Document to a Regulated Entity that is *not* a Subsidiary (or to a Regulated Entity that is *not* a Regulated Subsidiary) shall be, and are intended as, a reference to one (1) or more Qualifying Reciprocal Entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Letter of Credit Amounts</u>. Unless otherwise expressly specified in this Agreement or another Credit Document, the amount of a Letter of Credit, at any time, shall be deemed to be the stated amount of such Letter of Credit in effect at such time (after giving effect to any actual permanent reductions in the stated amount of such Letter of Credit pursuant to the terms of such Letter of Credit); <u>provided</u>, <u>that</u>, with respect to any Letter of Credit that, by its terms or the terms of any other Issuer Document related thereto, provides for one (1) or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit, after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Section Headings</u>. Section headings in this Agreement and the other Credit Documents are included herein or therein (as applicable) for convenience of reference only and shall *not* constitute a part hereof or thereof for any other purpose, or otherwise be given any substantive effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Informed Negotiation</u>. This Agreement and the other Credit Documents are the result of negotiations among, and have been reviewed by counsel to, among others, the Agent and each of the Credit Parties, and this Agreement, and each of the other Credit Documents, are the product of discussions and negotiations among such parties. Accordingly, this Agreement and the other Credit Documents are *not* intended to be construed against the Agent, the Issuing Bank or any of the Lenders merely on account of any such Person's (or its counsel's) involvement in the preparation and/or closing of this Agreement and/or any other Credit Document.

Section 1.4 <u>Rules of Interpretation with Respect to Regulated Entities</u>. Should an applicable Governmental Authority notify any Credit Party or Subsidiary of a potentially actionable issue or concern related to control of a Regulated Entity or determine that all or any of the Lenders, the Administrative Agent and/or the Collateral Agent is or are acting as control persons, as defined or used under the Florida Insurance Code or other Applicable Laws, of any Regulated Entity due to one or more provisions of this Agreement, the parties agree to promptly further negotiate in good faith to modify this Agreement such that none of the Lenders, the Administrative Agent and the Collateral Agent are considered by such Governmental Authority to be control persons of the Regulated Entities and to effect the original intent of the parties as closely as possible in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

------

Section 1.5 <u>Classifications of Loans and Borrowings</u>. For purposes of this Agreement and the other Credit Documents, Loans may be classified and referred to by Class (*e*.*g*., a "*Revolving Loan*", the "*Term Loan A*" or the "*Delayed Draw Term Loan*"), by Type (*e*.*g*., a "*SOFR Loan*" or a "*Base Rate Loan*"), or by Class and Type (*e*.*g*., a "*Revolving SOFR Loan*"). Borrowings also may be classified and referred to by Class (*e*.*g*., a "*Revolving Borrowing*"), by Type (*e*.*g*., a "*SOFR Borrowing*" or a "*Base Rate Borrowing*"), or by Class and Type (*e*.*g*., a "*Revolving SOFR Borrowing*").

Section 1.6 <u>Cashless Rollovers</u>. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, to the extent that any Lender agrees to extend the maturity date of, or replaces, renews and/or refinances any of, its then-existing Loans pursuant to any Borrowing under an Incremental Facility and/or any loans incurred under a new credit facility (including, without limitation, a new credit facility documented as an amendment and restatement of this Agreement), in each case of the foregoing, to the extent that such extension, replacement, renewal and/or refinancing is effected by means of a "cashless roll" by such Lender, then such extension, replacement, renewal and/or refinancing shall be deemed to comply with any requirement(s) under this Agreement or any other Credit Document that any related payment(s) to be made in effectuating such extension, replacement, renewal and/or refinancing be made "in Dollars", "in immediately available funds", "in cash" or any other similar requirement.

Section 1.7 <u>Interest Rate Disclosure</u>. The Administrative Agent does *not* warrant or accept responsibility for, and shall *not* have any liability whatsoever with respect to: (a) the continuation, administration, submission and/or calculation of, or any other matter related to, any of the Base Rate, the SOFR Reference Rate (for any applicable tenor) and/or any SOFR-Based Rate (for any Interest Period, as applicable), or any component definition used or referred to in, or any rate(s) used or referred to in, the definitions of any of the foregoing in <u>Section</u> <u>1.1</u>, or for any alternative, successor or replacement rate thereto (including, without limitation, any Benchmark Replacement), including whether the composition and/or characteristics of any such actual or proposed alternative, successor or replacement rate (including, without limitation, any Benchmark Replacement) is or will be similar to, or produces or will produce the same or substantially equivalent value or economic equivalence of, or has or will have the same or a comparable volume or liquidity as, any of the Base Rate, the SOFR Reference Rate (for any applicable tenor), any SOFR-Based Rate (for any Interest Period, as applicable) and/or any other Benchmark prior to its discontinuance or unavailability; or (b) the effect, implementation and/or composition of any Conforming Changes. The Administrative Agent, together with its Affiliates and other related entities, may engage in transactions that affect the calculation of any of the Base Rate, the SOFR Reference Rate (for any applicable tenor), any SOFR-Based Rate (for any Interest Period, as applicable), any alternative, successor or replacement rate of any of the foregoing (including, without limitation, any Benchmark Replacement), and/or any relevant adjustments to any of the foregoing, in any such case of the foregoing, in a manner adverse to the Borrower and the other Credit Parties. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain any of the Base Rate, the SOFR Reference Rate (for any applicable tenor), any SOFR-Based Rate (for any Interest Period, as applicable), and/or any other Benchmark, in each case of the foregoing, pursuant to the terms of this Agreement, and the Administrative Agent shall have no liability whatsoever to any Credit Party, any Subsidiary, any other Regulated Entity, any Lender and/or any other Person for damages of any kind, including direct or indirect, special, punitive, incidental and/or consequential damages, costs, losses and/or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or any component thereof) provided by any such information source or service.

------

**Article 2** 

**<u>LOANS AND LETTERS OF CREDIT</u>** 

Section 2.1 <u>Revolving Loans and Term Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans</u>. Subject to the terms and conditions set forth herein (including the conditions precedent to Borrowing set forth in <u>Section</u> <u>5.2</u>), each of the Lenders hereby severally agrees to advance its respective Revolving Commitment Percentage of revolving loans (each such loan, a "*<u>Revolving Loan</u>*") to the Borrower, in Dollars from time to time during the Revolver Availability Period, in an aggregate principal amount outstanding at any time for each Lender up to, but *not exceeding*, the amount of such Lender's respective Revolving Commitment; <u>provided</u>, <u>that</u>, immediately after giving effect to the Borrowing of any Revolving Loan, (i) the Aggregate Revolving Credit Exposure shall *not exceed* the Aggregate Revolving Commitment Amount, and (ii) the Revolving Credit Exposure of any Lender shall *not exceed* the amount of such Lender's respective Revolving Commitment. Revolving Loans may be disbursed from time to time during the Revolver Availability Period, and may be outstanding from time to time, as Base Rate Loans or SOFR Loans (or a combination thereof), as the Borrower may request in accordance with this Agreement. Revolving Loans borrowed pursuant to this clause (a) may be repaid, in whole or in part, and re-borrowed from time to time during the Revolver Availability Period without premium or penalty (subject to <u>Section</u> <u>3.1(c</u>)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term Loan A</u>. Subject to the terms and conditions set forth herein (including the conditions precedent to Borrowing set forth in <u>Section</u> <u>5.2</u>), each of the Lenders hereby severally agreed to advance their respective Term Loan A Commitment Percentage of a term loan (the "*<u>Term Loan A</u>*") to the Borrower, in Dollars in a single disbursement on the Closing Date, in an original principal amount for each Lender equal to the amount of such Lender's respective Term Loan A Commitment in effect on the Closing Date. The Term Loan A was disbursed on the Closing Date, and may be outstanding from time to time thereafter, as Base Rate Loans or SOFR Loans (or a combination thereof), as the Borrower may request in accordance with this Agreement. Amounts repaid on the Term Loan A may *not* be reborrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delayed Draw Term Loan</u>. Subject to the terms and conditions set forth herein (including the conditions precedent to Borrowing set forth in <u>Section</u> <u>5.2</u>), each of the Lenders hereby severally agrees to advance their respective DDTL Commitment Percentage of a delayed draw term loan (the "*<u>Delayed Draw Term Loan</u>*") to the Borrower, in Dollars in up to five (5) separate advances during the DDTL Availability Period, in an aggregate original principal amount for each Lender (for all advances under the Delayed Draw Term Loan, taken together) of *not greater than* the amount of such Lender's respective DDTL Commitment. The Delayed Draw Term Loan may be disbursed from time to time during the DDTL Availability Period, and may be outstanding from time to time during the term of this Agreement, as Base Rate Loans or SOFR Loans (or a combination thereof), as the Borrower may request in accordance with this Agreement. Amounts repaid on the Delayed Draw Term Loan may *not* be reborrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Borrowing Mechanics</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All Term Loans and, except pursuant to <u>Section</u> <u>2.2(b)(iii</u>), all Revolving Loans shall be made in an aggregate minimum amount of Five-Hundred Thousand Dollars ($500,000) and, if greater, in an integral multiple of One-Hundred Thousand Dollars ($100,000) in excess thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Whenever the Borrower desires that the Lenders make a Term Loan or a Revolving Loan, the Borrower shall deliver to the Administrative Agent a fully executed Funding Notice by *no later than* (A) 1:00 p.m. (Eastern time) *at least* three (3) Business Days in advance of the proposed Credit Date, in the case of a SOFR Loan, and (B) 1:00 p.m. (Eastern time) *at least* one (1) Business Day in advance of the proposed Credit Date, in the case of a Base Rate Loan (<u>provided</u>, <u>that</u>, a Funding Notice delivered by the Borrower may be expressly conditioned

------

in writing upon the consummation of any specified transaction or event, in which case, such Funding Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed). Except as otherwise provided herein, any Funding Notice for any Loans that are SOFR Loans shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to make a borrowing in accordance therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notice of receipt of each Funding Notice in respect of each Revolving Loan or Term Loan, together with the amount of each Lender's Commitment Percentage of the relevant Class in respect thereof, if any, together with the applicable interest rate, shall be provided by the Administrative Agent to each applicable Lender by telefacsimile with reasonable promptness, but (<u>provided</u>, <u>that</u>, the Administrative Agent shall have received such notice by 1:00 p.m. (Eastern time)) by *not later than* 4:00 p.m. (Eastern time) on the same day as the Administrative Agent's receipt of such notice from the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Each Lender shall make its respective Commitment Percentage of the requested Loan available to the Administrative Agent by *not later than* 11:00 a.m. (Eastern time) on the applicable Credit Date by wire transfer of same day funds in Dollars, at the Administrative Agent's Principal Office. Except as provided herein, upon satisfaction or waiver of the applicable conditions precedent specified herein, the Administrative Agent shall make the proceeds of such Credit Extension available to the Borrower on the applicable Credit Date by causing an amount of same day funds in Dollars equal to the proceeds of all Loans received by the Administrative Agent in connection with the Credit Extension from the Lenders to be credited to the account of the Borrower at the Administrative Agent's Principal Office (or to such other account as may be designated in writing to the Administrative Agent by the Borrower).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Incremental Facilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the terms and conditions set forth in this Agreement, the Borrower shall have the right, from time to time upon *at least* ten (10) Business Days' prior written notice to the Administrative Agent (or such shorter period of notice as the Administrative Agent may agree in its sole discretion), to (I) increase the Aggregate Revolving Commitment Amount, (II) increase the Aggregate Term Loan A Commitment Amount, and/or (III) increase the Aggregate DDTL Commitment Amount, and/or (IV) establish one (1) or more additional term loans of a separate Class, subject, however, in any such case of the foregoing <u>clauses (e)(i)(I</u>) through (<u>e)(i)(IV</u>), to the satisfaction of each of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the aggregate original principal or committed amount of all such Incremental Facilities, taken together, shall *not exceed* the Incremental Cap in effect at the time of the establishment and/or incurrence (as applicable) of any Incremental Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) each Incremental Facility shall be in a minimum principal or committed amount of Five Million Dollars ($5,000,000), and, if greater, in an integral multiple of Five-Hundred Thousand Dollars ($500,000) in excess thereof (or such lesser amounts as the Administrative Agent may agree in its sole discretion);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the establishment and incurrence (as applicable) of each Incremental Facility shall be contingent upon the receipt by the Administrative Agent of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) additional Commitments of the applicable Class in a corresponding amount to such requested increase in the aggregate amount of Commitments of such Class, or Incremental Term Loan Commitments in a corresponding amount to the aggregate original principal amount of such requested Incremental Term Loan of a separate Class, in each case of the foregoing of this <u>clause (e)(i)(C)(I</u>), from either existing Lenders or from one (1) or more other financial institutions (each such other financial institution, an "*<u>Additional Incremental Lender</u>*") that: (1) qualifies as an Eligible Assignee; and (2) is approved (such approval *not* to be unreasonably withheld, conditioned or delayed) by the Administrative Agent and, in the case of any increased or new Commitment in respect of an Incremental Revolver Increase, each of the Issuing Bank and the Swingline Lender, or from a combination of existing Lenders and/or Additional Incremental Lenders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) documentation from each existing Lender or Additional Incremental Lender providing a Commitment in respect of such Incremental Facility, in form and substance reasonably acceptable to the Administrative Agent, evidencing its: (I) agreement to provide such Commitment; and (II) acceptance of its obligations as a Lender under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the Administrative Agent shall have received all customary officer's certificates, legal opinions and other documents (including, without limitation, resolutions of the board of directors or managers (or equivalent governing body) of each Credit Party and customary opinions of counsel to the Credit Parties, if required to be provided by the existing Lenders and Additional Incremental Lenders providing Commitments in respect of such Incremental Facility) it may reasonably request relating to the corporate, limited liability company or other necessary authority for the establishing of such Incremental Facility and the validity thereof, and any other matters relevant thereto, all in form and substance reasonably satisfactory to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) the Borrower shall have delivered to the Administrative Agent a certificate, dated as of the date of establishment and/or incurrence (as applicable) of such Incremental Facility, and duly executed by an Authorized Officer of the Borrower, certifying, on behalf of the Borrower and each other Credit Party, that, both immediately *before* and immediately *after* giving effect to the establishment and/or incurrence (as applicable) of such Incremental Facility and the consummation of any related transactions (including, without limitation, any Acquisitions) substantially contemporaneously in connection therewith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) no Default or Event of Default shall have occurred and be continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) all representations and warranties of each Credit Party set forth in the Credit Documents (including, without limitation, the representations and warranties of each Credit Party set forth in <u>Article 6</u>) are true and correct, in all material respects (or, if such representation and warranty is qualified by materiality or Material Adverse Effect, in all respects), on, and as of, such date, except to the extent that such representations and warranties specifically relate to an earlier date, in which case, they are true and correct, in all material respects (or, if such representation and warranty is qualified by materiality or Material Adverse Effect, in all respects), as of such earlier date; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) the Collateral Agent shall have received such amendments to the Collateral Documents as the Collateral Agent shall request in order to cause the Collateral Documents to secure the Obligations (in a manner consistent with the terms of the Collateral Documents as in effect immediately *prior* to the date of establishment and/or incurrence (as applicable) of such Incremental Facility) after giving effect to the establishment and/or incurrence (as applicable) of such Incremental Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) if any Revolving Loans are outstanding at the time of establishment of any Incremental Revolver Increase, then the Borrower shall, if applicable, prepay one (1) or more of the then outstanding Revolving Loans (any such prepayment to be subject to <u>Section</u> <u>3.1(c</u>)) in an amount necessary such that, after giving effect to such Incremental Revolver Increase, each Lender will hold its respective *pro rata* share of outstanding Revolving Loans; <u>provided</u>, <u>that</u>, any such prepayment may be effected, in whole or in part, pursuant to a cashless rollover in accordance with <u>Section</u> <u>1.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any increased or new Commitments established in respect of an existing (as of the date that is immediately *prior* to the date of establishment of such Incremental Facility) Class of Commitments shall have terms substantially identical to those for Commitments of such Class under this Agreement as of the date that is immediately *prior* to the date of establishment of such Incremental Facility, except for fees payable to the Lenders providing increased or new Commitments in respect of such Incremental Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) the terms and provisions applicable to any Incremental Term Loan of a separate Class shall (to the extent *not* in conflict with the terms and provisions of this Agreement pertaining to Incremental Term Loans) be as set forth in the applicable Incremental Facility Agreement establishing such Incremental Term Loan, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) such Incremental Term Loan shall have a final maturity date that is coterminous with, or later than, the Latest Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) the Weighted Average Life of such Incremental Term Loan shall *not* be *less than* the Weighted Average Life of any other then-outstanding Term Loan (including of the Term Loan A, the Delayed Draw Term Loan and any other then outstanding Incremental Term Loan); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) the All-In Yield applicable to any Incremental Term Loan shall *not* be *more than* one-half of one percent (0.50%) *higher than* the corresponding All-In Yield applicable to any other then-outstanding Term Loan (including the Term Loan A, the Delayed Draw Term Loan and any other then outstanding Incremental Term Loan) (it being understood and agreed that interest on any other then-outstanding Term Loan may be increased to the extent necessary to satisfy this requirement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J) the Borrower shall have paid any applicable upfront and/or arrangement fee(s) in connection with the establishment and/or incurrence (as applicable) of such Incremental Facility, as agreed by the Borrower in writing; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K) except to the extent otherwise required or expressly permitted pursuant to this Agreement (including, for purposes of clarity, the foregoing of this <u>clause (e)(i</u>)), all other terms and conditions of any Incremental Term Loan of a Class separate from the Term Loan A and the Delayed Draw Term Loan shall be reasonably satisfactory to the Administrative Agent and the Collateral Agent.

Notwithstanding anything to the contrary in the foregoing of this <u>clause (e)(i</u>): (I) neither Administrative Agent, the Collateral Agent nor any Lender, nor any Affiliate of any of the foregoing (nor any of their respective successors or assigns), shall have any obligation to agree to increase any Class of its Commitments or any of its other obligations under this Agreement and the other Credit Documents, or to otherwise provide all, or any portion, of any Incremental Facility, and any decision by a Lender to agree to any such increase or to otherwise provide all, or any portion, of an Incremental Facility shall be made in its sole and absolute discretion, independently from, and without reliance upon, any other existing Lender or Additional Incremental Lender; and (II) neither any Arranger, the Administrative Agent, the Collateral Agent nor any Lender, nor any Affiliate of any of the foregoing (nor any of their respective successors or assigns), shall have any responsibility for arranging any Commitments in respect of any Incremental Facility, in each case of this <u>clause (e)(i)(II</u>), without their prior written consent and subject to such conditions (including, without limitation, fee arrangements) as they may require in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Administrative Agent, the Collateral Agent, the Credit Parties, and the existing Lenders and/or Additional Incremental Lenders providing any Commitment(s) in respect of any Incremental Facility, without the further consent of any other Person, are expressly permitted to enter into an Incremental Facility Agreement to establish any such Incremental Facility effected in accordance with the foregoing <u>clause (e)(i</u>), which Incremental Facility Agreement may amend this Agreement and the other Credit Documents to implement such technical, administrative and/or mechanical changes as may be necessary or advisable to be implemented in connection therewith (including, without limitation, to ensure continuing *pro rata* allocations of Loans and Commitments and to implement ratable participations in Letters of Credit).

Section 2.2 <u>Swingline Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Swingline Loans Commitments</u>. During the Revolver Availability Period, subject to the terms and conditions hereof, the Swingline Lender shall make Swingline Loans to the Borrower in an aggregate amount up to, but *not exceeding*, the Swingline Sublimit; <u>provided</u>, <u>that</u>, after giving effect to the making of any Swingline Loan, in no event shall (i) the Aggregate Revolving Credit Exposure *exceed* the Aggregate Revolving Commitment Amount, and (ii) the aggregate amount of Revolving Credit Exposure of any Lender *exceed* the amount of such Lender's respective Revolving Commitment. Amounts borrowed pursuant to this <u>Section</u> <u>2.2</u> may be repaid and reborrowed during the Revolver Availability Period. The Swingline Lender's Revolving Commitment shall expire on the Revolving Commitment Termination Date and all Swingline Loans, and all other amounts owed hereunder with respect to the Swingline Loans and the Revolving Commitments, shall be Paid in Full by *no later than* such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Borrowing Mechanics for Swingline Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to <u>clause (b)(vi</u>) below, whenever the Borrower desires that the Swingline Lender make a Swingline Loan, the Borrower shall deliver to the Administrative Agent a Funding Notice by *no later than* 11:00 a.m. on the proposed Credit Date (<u>provided</u>, <u>that</u>, a Funding Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Funding Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Swingline Lender shall make the amount of its Swingline Loan available to the Administrative Agent by *not later than* 3:00 p.m. (Eastern time) on the applicable Credit Date by wire transfer of same day funds in Dollars, at the Administrative Agent's Principal Office. Except as provided herein, upon satisfaction or waiver of the conditions precedent specified herein, the Administrative Agent shall make the proceeds of such Swingline Loans available to the Borrower on the applicable Credit Date by causing an amount of same day funds in Dollars equal to the proceeds of all such Swingline Loans received by the Administrative Agent from the Swingline Lender to be credited to the account of the Borrower at the Administrative Agent's Principal Office, or to such other account as may be designated in writing to the Administrative Agent by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) With respect to any Swingline Loans that have *not* been voluntarily prepaid by the Borrower pursuant to <u>Section</u> <u>2.11</u>, the Swingline Lender may, at any time in its sole and absolute discretion, deliver to the Administrative Agent (with a copy to the Borrower), by *no later than* 11:00 a.m. (Eastern time) on the day of the proposed Credit Date, a notice (which shall be deemed to be a Funding Notice given by the Borrower) requesting that each Lender holding a Revolving Commitment make Revolving Loans that are Base Rate Loans to the Borrower on such Credit Date in an aggregate principal amount equal to the principal amount of such Swingline Loans (the "*<u>Refunded Swingline Loans</u>*") outstanding on the date such notice is given which the Swingline Lender requests the Lenders to prepay (<u>provided</u>, <u>that</u>, a Funding Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Funding Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed). Notwithstanding anything to the contrary in this Agreement: (A) the proceeds of such Revolving Loans made by the Lenders other than the Swingline Lender shall be immediately delivered by the Administrative Agent to the Swingline Lender (and *not* to the Borrower) and applied to repay a corresponding portion of the Refunded Swingline Loans; and (B) on the day that such Revolving Loans are made, the Swingline Lender's Revolving Commitment Percentage of the Refunded Swingline Loans shall be deemed to be paid with the proceeds of a Revolving Loan made by the Swingline Lender to the Borrower, and such portion of the Swingline Loans deemed to be so paid shall no longer be outstanding as Swingline Loans but shall instead constitute part of the Swingline Lender's outstanding Revolving Loans to the Borrower. The Borrower hereby authorizes the Administrative Agent and the Swingline Lender to charge the Borrower's accounts with the Administrative Agent and the Swingline Lender (up to the amount available in each such account) in order to immediately pay the Swingline Lender the amount of the Refunded Swingline Loans to the extent the proceeds of such Revolving Loans made by the Lenders, including the Revolving Loans deemed to be made by the Swingline Lender, are insufficient to repay in full the Refunded Swingline Loans. If any portion of any such amount paid (or deemed to be paid) to the Swingline Lender should be recovered by, or on behalf of, the Borrower from the Swingline Lender in bankruptcy, by assignment for the benefit of creditors or otherwise, the loss of the amount so recovered shall be ratably shared among all Lenders in the manner contemplated by <u>Section</u> <u>2.14</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If, for any reason, Revolving Loans are *not* made pursuant to <u>clause (b)(iii</u>) above in an amount sufficient to repay any amounts owed to the Swingline Lender in respect of any outstanding Swingline Loans on or before the third (3<sup>rd</sup>) Business Day after demand for payment thereof by the Swingline Lender, each Lender holding a Revolving Commitment shall be deemed

------

to, and hereby agrees to, have purchased a participation in such outstanding Swingline Loans, and in an amount equal to its Revolving Commitment Percentage of the applicable unpaid amount together with accrued interest thereon; <u>provided</u>, <u>that</u>, any such participation purchased by a Lender shall be limited to an amount that would *not* cause the aggregate amount of Revolving Credit Exposure of such Lender (immediately after giving effect to such participation) to *exceed* the amount of such Lender's respective Revolving Commitment. On the Business Day that notice is provided by the Swingline Lender (or by the 11:00 a.m. (Eastern time) on the following Business Day, if such notice is provided after 2:00 p.m. (Eastern time)), each Lender holding a Revolving Commitment shall deliver to the Swingline Lender an amount equal to its respective participation in the applicable unpaid amount in same day funds at the Principal Office of the Swingline Lender. In order to evidence such participation each Lender holding a Revolving Commitment agrees to enter into a participation agreement at the request of the Swingline Lender in form and substance reasonably satisfactory to the Swingline Lender. In the event that any Lender holding a Revolving Commitment fails to make available to the Swingline Lender the amount of such Lender's participation as provided in this <u>clause (b)(v</u>), the Swingline Lender shall be entitled to recover such amount on demand from such Lender together with interest thereon for three (3) Business Days at the rate customarily used by the Swingline Lender for the correction of errors among banks and thereafter at the Base Rate, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notwithstanding anything contained herein to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) each Lender's obligation to make Revolving Loans for the purpose of repaying any Refunded Swingline Loans pursuant to <u>clause (b)(iii</u>) above, and each Lender's obligation to purchase a participation in any unpaid Swingline Loans pursuant to the immediately preceding paragraph, shall be absolute and unconditional and shall *not* be affected by any circumstance, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) any set-off, counterclaim, recoupment, defense or other right which such Lender may have against the Swingline Lender, any Credit Party or any other Person for any reason whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) the occurrence or continuation of a Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) any adverse change in the business, operations, properties, assets, condition (financial or otherwise) or prospects of any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) any breach of this Agreement or any other Credit Document by any party thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(V) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing;

<u>provided</u>, <u>that</u>, such obligations of each Lender are subject to the condition that the Swingline Lender had *not* received prior notice from the Borrower or the Required Revolving Lenders that any of the conditions under <u>Section</u> <u>5.2</u> to the making of the applicable Refunded Swingline Loans or other unpaid Swingline Loans were *not* satisfied at the time such Refunded Swingline Loans or other unpaid Swingline Loans were made; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Swingline Lender shall *not* be obligated to make any Swingline Loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) if it has elected *not* to do so after the occurrence, and during the continuation, of a Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) it does *not* in good faith believe that all conditions under <u>Section</u> <u>5.2</u> to the making of such Swingline Loan have been satisfied or waived by the Required Revolving Lenders; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) at a time when a Defaulting Lender exists, unless the Swingline Lender has entered into arrangements satisfactory to it and the Borrower to eliminate the Swingline Lender's risk with respect to the Defaulting Lender's participation in such Swingline Loan, including by Cash Collateralizing such Defaulting Lender's Revolving Commitment Percentage of the outstanding Swingline Loans in a manner reasonably satisfactory to the Swingline Lender and the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) In order to facilitate the borrowing of Swingline Loans, the Borrower and the Swingline Lender may mutually agree, and are hereby authorized, to enter into an auto borrow agreement in form and substance satisfactory to the Swingline Lender and the Administrative Agent (the "*<u>Auto Borrow Agreement</u>*") providing for the automatic advance by the Swingline Lender of Swingline Loans under the conditions set forth in the Auto Borrow Agreement, subject to the conditions set forth in this Agreement. At any time that an Auto Borrow Agreement is in effect, advances under the Auto Borrow Agreement shall be deemed Swingline Loans for all purposes of this Agreement and the other Credit Documents, except that Borrowings of Swingline Loans under the Auto Borrow Agreement shall be made in accordance with the Auto Borrow Agreement. For purposes of determining the Aggregate Revolving Credit Exposure at any time during which an Auto Borrow Agreement is in effect, the aggregate outstanding principal balance of all Swingline Loans shall be deemed to equal the *sum of*: (A) the aggregate outstanding principal balance of all Swingline Loans at such time; *plus* (B) the maximum unused amount available to be borrowed under such Auto Borrow Agreement at such time.

Section 2.3 <u>Issuances of Letters of Credit and Purchase of Participations Therein</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Letters of Credit</u>. During the Revolver Availability Period, subject to the terms and conditions hereof, the Issuing Bank agrees to issue Letters of Credit for the account of the Borrower or any of its Subsidiaries in the aggregate amount up to, but *not exceeding*, the Letter of Credit Sublimit, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each Letter of Credit shall be denominated in Dollars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the stated amount of each Letter of Credit shall *not* be *less than* Fifty Thousand Dollars ($50,000) or such lesser amount as may be approved in writing by the Issuing Bank in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) immediately *after* giving effect to such issuance, in no event shall: (A) the Aggregate Revolving Credit Exposure *exceed* the Aggregate Revolving Commitment Amount; (B) the Revolving Credit Exposure of any Lender *exceed* the amount of such Lender's respective Revolving Commitment; and (C) the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, *exceed* the Letter of Credit Sublimit; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in no event shall any Letter of Credit have an expiration date that is *later than* the *earlier* to occur of: (A) seven (7) calendar days *prior* to the Revolving Commitment Termination Date; and (B) the date which is one (1) year from the date of issuance of such Letter of Credit.

Subject to the foregoing (other than <u>clause (a)(iv</u>)) the Issuing Bank may agree that a Letter of Credit will automatically be extended for one or more successive periods *not to exceed* one (1) year each, unless the Issuing Bank elects *not* to extend for any such additional period; <u>provided</u>, <u>that</u>, (I) the Issuing Bank shall *not* extend any such Letter of Credit if it has received written notice that an Event of Default has occurred and is continuing at the time the Issuing Bank must elect to allow such extension, and (II) in the event that any Lender is at such time a Defaulting Lender, unless the Issuing Bank has entered into arrangements satisfactory to the Issuing Bank (in its sole discretion) with the Borrower or such Defaulting Lender to eliminate the Issuing Bank's Fronting Exposure with respect to such Lender (after giving effect to <u>Section</u> <u>2.16(a)(iv</u>) and any Cash Collateral provided by the Defaulting Lender), including by Cash Collateralizing such Defaulting Lender's Revolving Commitment Percentage of the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, in a manner reasonably satisfactory to Agents, the Issuing Bank shall *not* be obligated to issue or extend any Letter of Credit hereunder. The Issuing Bank may send a Letter of Credit or conduct any communication to or from the beneficiary via the Society for Worldwide Interbank Financial Telecommunication ("*<u>SWIFT</u>*") message or overnight courier, or any other commercially reasonable means of communicating with a beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice of Issuance</u>. Whenever the Borrower desires the issuance of a Letter of Credit, the Borrower shall deliver to the Administrative Agent an Issuance Notice by *no later than* 1:00 p.m. (Eastern time) *at least* three (3) Business Days in advance of the proposed date of issuance (or such shorter period as may be agreed to by the Issuing Bank in any particular instance) (<u>provided</u>, <u>that</u>, an Issuance Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Issuance Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed). Upon satisfaction or waiver of the conditions set forth in <u>Section</u> <u>5.2</u>, the Issuing Bank shall issue the requested Letter of Credit only in accordance the Issuing Bank's standard operating procedures (including, without limitation, the delivery by the Borrower of such executed documents and information pertaining to such requested Letter of Credit, including any Issuer Documents, as the Issuing Bank or the Administrative Agent may require). Upon the issuance of any Letter of Credit or amendment or modification to a Letter of Credit, the Issuing Bank shall promptly notify the Administrative Agent and each Lender of such issuance, which notice shall be accompanied by a copy of such Letter of Credit or amendment or modification to a Letter of Credit and the amount of such Lender's respective participation in such Letter of Credit pursuant to <u>clause (e</u>) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Responsibility of Issuing Bank With Respect to Requests for Drawings and Payments</u>. In determining whether to honor any drawing under any Letter of Credit by the beneficiary thereof, the Issuing Bank shall be responsible only to examine the documents delivered under such Letter of Credit with reasonable care so as to ascertain whether they appear on their face to be in accordance with the terms and conditions of such Letter of Credit. As between the Borrower and the Issuing Bank, the Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit issued by the Issuing Bank, by the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, the Issuing Bank shall *not* be responsible for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for and issuance of any such Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) failure of the beneficiary of any such Letter of Credit to comply fully with any conditions required in order to draw upon such Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) errors in interpretation of technical terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any such Letter of Credit or of the proceeds thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any consequences arising from causes beyond the control of the Issuing Bank, including any Governmental Acts; none of the above shall affect or impair, or prevent the vesting of, the Issuing Bank's rights or powers hereunder.

Without limiting the foregoing and in furtherance thereof, any action taken or omitted by the Issuing Bank under or in connection with the Letters of Credit or any documents and certificates delivered thereunder, if taken or omitted in good faith, shall not give rise to any liability on the part of the Issuing Bank to any Credit Party. Notwithstanding anything to the contrary contained in this <u>clause</u> <u>(c</u>), the Borrower shall retain any and all rights it may have against the Issuing Bank for any liability arising solely out of the gross negligence or willful misconduct of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Reimbursement by the Borrower of Amounts Drawn or Paid Under Letters of Credit</u>. In the event the Issuing Bank has determined to honor a drawing under a Letter of Credit, it shall immediately notify the Borrower and the Administrative Agent, and the Borrower shall reimburse the Issuing Bank on or before the Business Day immediately following the date on which such drawing is honored (the "*<u>Reimbursement Date</u>*") in an amount in Dollars and in same day funds equal to the amount of such honored drawing; <u>provided</u>, <u>that</u>, (i) anything contained herein to the contrary notwithstanding, (A) unless the Borrower shall have notified the Administrative Agent and the Issuing Bank *prior* to 11:00 a.m. (Eastern time) on the date such drawing is honored that the Borrower intends to reimburse the Issuing Bank for the amount of such honored drawing with funds other than the proceeds of Revolving Loans, the Borrower shall be deemed to have given a timely Funding Notice to the Administrative Agent requesting the Lenders to make Revolving Loans that are Base Rate Loans on the Reimbursement Date in an amount in Dollars equal to the amount of such honored drawing, and (B) subject to satisfaction or waiver of the conditions specified in <u>Section</u> <u>5.2</u>, the Lenders shall, on the Reimbursement Date, make Revolving Loans that are Base Rate Loans in the amount of such honored drawing, the proceeds of which shall be applied directly by the Administrative Agent to reimburse the Issuing Bank for the amount of such honored drawing, and (ii) if, for any reason, proceeds of Revolving Loans are *not* received by the Issuing Bank on the Reimbursement Date in an amount equal to the amount of such honored drawing, the Borrower shall reimburse the Issuing Bank, on demand, in an amount in same day funds equal to the *excess* of the amount of such honored drawing *over* the aggregate amount of such Revolving Loans, if any, which are so received. Nothing in this <u>clause (d</u>) shall be deemed to relieve any Lender from its obligation to make Revolving Loans on the terms and conditions set forth herein, and the Borrower shall retain any and all rights it may have against any Lender resulting from the failure of such Lender to make such Revolving Loans under this <u>clause (d</u>).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Lenders' Purchase of Participations in Letters of Credit</u>. Immediately upon the issuance of each Letter of Credit, each Lender having a Revolving Commitment shall be deemed to have purchased, and hereby agrees to irrevocably purchase, from the Issuing Bank a participation in such Letter of Credit and any drawings honored thereunder in an amount equal to such Lender's Revolving Commitment Percentage (with respect to the Revolving Commitments) of the maximum amount which is or at any time may become available to be drawn thereunder; <u>provided</u>, <u>that</u>, any such participation purchased by a Lender shall be limited to an amount that would *not* cause the aggregate amount of Revolving Credit Exposure of such Lender (immediately after giving effect to such participation) to *exceed* the amount of such Lender's respective Revolving Commitment. In the event that the Borrower shall fail, for any reason, to reimburse the Issuing Bank as provided in <u>clause (d</u>) above, the Issuing Bank shall promptly notify each Lender of the unreimbursed amount of such honored drawing and of such Lender's respective participation therein based on such Lender's Revolving Commitment Percentage. Each Lender shall make available to the Issuing Bank an amount equal to its respective participation, in Dollars and in same day funds, at the office of the Issuing Bank specified in such notice, by *not later than* 12:00 p.m. (Eastern time) on the first (1<sup>st</sup>) Business Day (under the laws of the jurisdiction in which such office of the Issuing Bank is located) after the date notified by the Issuing Bank. In the event that any Lender fails to make available to the Issuing Bank on such Business Day the amount of such Lender's participation in such Letter of Credit as provided in this <u>clause (e</u>), the Issuing Bank shall be entitled to recover such amount on demand from such Lender together with interest thereon for three (3) Business Days at the rate customarily used by the Issuing Bank for the correction of errors among banks and thereafter at the Base Rate. Nothing in this <u>clause (e</u>) shall be deemed to prejudice the right of any Lender to recover from the Issuing Bank any amounts made available by such Lender to the Issuing Bank pursuant to this Section in the event that it is determined that the payment with respect to a Letter of Credit in respect of which payment was made by such Lender constituted gross negligence or willful misconduct on the part of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order. In the event the Issuing Bank shall have been reimbursed by other Lenders pursuant to this <u>clause (e</u>) for all or any portion of any drawing honored by the Issuing Bank under a Letter of Credit, the Issuing Bank shall distribute to each Lender which has paid all amounts payable by it under this <u>clause (e</u>) with respect to such honored drawing such Lender's Revolving Commitment Percentage of all payments subsequently received by the Issuing Bank from the Borrower in reimbursement of such honored drawing when such payments are received. Any such distribution shall be made to a Lender at its primary address set forth below its name on <u>Appendix B</u> or at such other address as such Lender may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Obligations Absolute</u>. The obligation of the Borrower to reimburse the Issuing Bank for drawings honored under the Letters of Credit issued by it and to repay any Revolving Loans made by the Lenders pursuant to <u>clause (d</u>) above and the obligations of the Lenders under <u>clause (e</u>) above shall be unconditional and irrevocable and shall be paid strictly in accordance with the terms hereof under all circumstances including any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any lack of validity or enforceability of any Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the existence of any claim, set-off, defense (other than that such drawing has been repaid) or other right which the Borrower or any Lender may have at any time against a beneficiary or any transferee of any Letter of Credit (or any Persons for whom any such transferee may be acting), the Issuing Bank, a Lender or any other Person or, in the case of a Lender, against the Borrower, whether in connection herewith, the transactions contemplated herein or any unrelated transaction (including any underlying transaction between the Borrower or any of its Subsidiaries and the beneficiary for which any Letter of Credit was procured);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any draft or other document presented under any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) payment by the Issuing Bank under any Letter of Credit against presentation of a draft or other document which does *not* substantially comply with the terms of such Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any adverse change in the business, operations, properties, assets, or financial condition of the Borrower or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any breach hereof or any other Credit Document by any party thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the fact that an Event of Default or a Default shall have occurred and be continuing;

<u>provided</u>, <u>that</u>, in each case, that payment by the Issuing Bank under the applicable Letter of Credit shall *not* have constituted gross negligence or willful misconduct of the Issuing Bank under the circumstances in question, as determined by a court of competent jurisdiction in a final, non-appealable order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Indemnification</u>. Without duplication of any obligation of the Credit Parties under <u>Section</u> <u>11.2</u>, in addition to amounts payable as provided herein, each of the Credit Parties hereby agrees, on a joint and several basis, to protect, indemnify, pay and save harmless the Issuing Bank from and against any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including reasonable out-of-pocket fees, expenses and disbursements of counsel) which the Issuing Bank may incur or be subject to as a consequence, direct or indirect, of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the issuance of any Letter of Credit by the Issuing Bank, other than as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the gross negligence or willful misconduct of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the wrongful dishonor by the Issuing Bank of a proper demand for payment made under any Letter of Credit issued by it; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the failure of the Issuing Bank to honor a drawing under any such Letter of Credit as a result of any Governmental Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Applicability of ISP</u>. Unless otherwise expressly agreed by the Issuing Bank and the Borrower when a Letter of Credit is issued, the rules of the ISP shall apply to each Letter of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Letters of Credit Issued for Subsidiaries</u>. Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary of the Borrower, the Borrower shall be obligated to reimburse the Issuing Bank hereunder for any and all drawings under such Letter of Credit. The Borrower hereby acknowledges that the issuance of Letters of Credit for the account of the Subsidiaries inures to the benefit of the Borrower, and that the Borrower's business derives substantial benefits from the businesses of such Subsidiaries.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Conflict with Issuer Documents</u>. In the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control.

Section 2.4 <u>Pro Rata Shares; Availability of Funds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Pro Rata Shares</u>. All Loans shall be made, and all participations purchased, by the Lenders simultaneously and proportionately to their respective *pro rata* shares of the Loans, it being understood that no Lender shall be responsible for any default by any other Lender in such other Lender's obligation to make a Loan requested hereunder or purchase a participation required hereby nor shall any Commitment, or the portion of the aggregate outstanding principal balance of any Loans, of any Lender be increased or decreased as a result of a default by any other Lender in such other Lender's obligation to make a Loan requested hereunder or purchase a participation required hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Availability of Funds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Funding by Lenders; Presumption by Administrative Agent</u>. Unless the Administrative Agent shall have received notice from a Lender *prior* to the proposed date of any Borrowing (or, in the case of any Borrowing of Base Rate Loans, prior to 12:00 p.m. (Noon) (Eastern time) on the date of such Borrowing) that such Lender will *not* make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with <u>Section</u> <u>2.1(d</u>) or, in the case of a Borrowing of Base Rate Loans, that such Lender has made such share available in accordance with, and at the time required by, <u>Section</u> <u>2.1(d</u>) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has *not* in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from, and including, the date such amount is made available to the Borrower to, but *excluding*, the date of payment to the Administrative Agent, at, (A) in the case of a payment to be made by such Lender, the *greater of* the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Loans, *plus*, in either case, any administrative, processing or similar fees customarily charged by the Administrative Agent in connection therewith. If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period. If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender's Loan included in such Borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Payments by the Borrower; Presumptions by Administrative Agent</u>. Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may

------

be, the amount due. In such event, if the Borrower has *not* in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or the Issuing Bank, in immediately available funds with interest thereon, for each day from, and including, the date such amount is distributed to it to, but *excluding*, the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

Notices given by the Administrative Agent under this <u>clause (b</u>) shall be conclusive absent manifest error.

Section 2.5 <u>Evidence of Debt; Register; Lenders' Books and Records; Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Lenders' Evidence of Debt</u>. Each Lender shall maintain on its internal records an account or accounts evidencing the Obligations of the Borrower and each other Credit Party to such Lender, including the amounts of the Loans made by it and each repayment and prepayment in respect thereof. Any such recordation shall be conclusive and binding on the Borrower, absent manifest error; <u>provided</u>, <u>that</u>, (i) the failure to make any such recordation, or any error in such recordation, shall *not* affect any Lender's Commitment or the Borrower's obligations in respect of any applicable Loans, and (ii) in the event of any inconsistency between the Register and any Lender's records, the recordations in the Register shall govern in the absence of demonstrable error therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notes</u>. The Borrower shall execute and deliver to (i) each Lender on the Closing Date, (ii) each Person who is a permitted assignee of such a Lender pursuant to <u>Section</u> <u>11.5</u>, and (iii) each Additional Incremental Lender, in each case, to the extent requested by such Person, a Note to evidence such Person's respective portion of the Revolving Loans, Swingline Loans, Term Loans and other Obligations.

Section 2.6 <u>Scheduled Principal Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans</u>. The aggregate outstanding principal balance of Revolving Loans (together with any unpaid accrued interest and fees with respect thereto) shall become due and payable, and be repaid, in full on the Revolving Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Swingline Loans</u>. The aggregate outstanding principal balance of Swingline Loans (together with any unpaid accrued interest and fees with respect thereto) shall become due and payable, and be repaid, in full on the *earlier* to occur of: (i) the date of demand therefor by the Swingline Lender; and (ii) the Revolving Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Term Loan A</u>. The outstanding principal balance of the Term Loan A shall be repaid in equal quarterly installments, beginning on the last Business Day of the Fiscal Quarter ending June 30, 2025, in an amount of Two Million Five-Hundred Thousand Dollars ($2,500,000) per Fiscal Quarter, payable on the last Business Day of each Fiscal Quarter (as such quarterly installments may hereafter be adjusted as a result of prepayments made pursuant to <u>Section</u> <u>2.11</u>), unless accelerated sooner pursuant to <u>Article 9</u>, with the outstanding principal balance of the Term Loan A (together with any unpaid accrued interest and fees with respect thereto) being due and payable in full on the Maturity Date for the Term Loan A.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delayed Draw Term Loan</u>. The outstanding principal balance of each advance made under the Delayed Draw Term Loan during the DDTL Availability Period shall be repaid in equal quarterly installments, beginning on the last Business Day of the first (1<sup>st</sup>) full Fiscal Quarter ending after the date on which such advance is made, in an amount equal to the DDTL Amortization Payment Amount per Fiscal Quarter, payable on the last Business Day of each Fiscal Quarter (as such quarterly installments may hereafter be adjusted as a result of prepayments made pursuant to <u>Section</u> <u>2.11</u>), unless accelerated sooner pursuant to <u>Article 9</u>, with the outstanding principal balance of each advance under the Delayed Draw Term Loan (together with any unpaid accrued interest and fees with respect thereto) being due and payable in full on the Maturity Date for the Delayed Draw Term Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Incremental Term Loans</u>. The outstanding principal balance of any Incremental Term Loans shall be repaid in installments on the date(s), and in the amount(s), set forth in the applicable Incremental Facility Agreement establishing such Incremental Term Loan.

Section 2.7 <u>Interest on Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise set forth herein, each Loan shall bear interest on the unpaid principal amount thereof from the date made through repayment (whether by acceleration or otherwise) thereof as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of Revolving Loans, the Term Loan A and the Delayed Draw Term Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) to the extent outstanding as Base Rate Loans, at the Base Rate *plus* the Applicable Margin; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) to the extent outstanding as SOFR Loans, at Term SOFR *plus* the Applicable Margin; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of Swingline Loans, at the Swingline Rate (or with respect to any Swingline Loan advanced pursuant to an Auto Borrow Agreement, such other rate as separately agreed in writing between the Borrower and the Swingline Lender);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any Incremental Term Loan, at the percentages per annum specified in the applicable Incremental Facility Agreement establishing such Incremental Term Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The basis for determining the rate of interest with respect to any Loan (except a Swingline Loan, which may only be made and maintained at the Swingline Rate (unless and until converted into a Revolving Loan pursuant to the terms and conditions hereof)), and the Interest Period with respect to any SOFR Loan, shall be selected by the Borrower and notified to the Administrative Agent and the Lenders pursuant to the applicable Funding Notice or Conversion / Continuation Notice, as the case may be. If, on any day, a Loan is outstanding with respect to which a Funding Notice or Conversion / Continuation Notice has *not* been delivered to the Administrative Agent in accordance with the terms hereof specifying the applicable basis for determining the rate of interest, then for that day: (i) if such Loan is a SOFR Loan, such Loan shall become a Base Rate Loan; and (ii) if such Loan is a Base Rate Loan, such Loan shall remain a Base Rate Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with SOFR Loans, there shall be *no more than* eight (8) Interest Periods outstanding at any time. In the event the Borrower fails to specify between a Base Rate Loan or a SOFR Loan in the applicable Funding Notice or Conversion / Continuation Notice, such Loan: (i) if outstanding as a SOFR Loan, will be automatically continued, on the last day of the then-current Interest Period for such Loan, as a SOFR Loan with an equivalent Interest Period; and (ii) if outstanding as a Base Rate Loan will remain as, or (if *not* then outstanding) will be made as, a Base Rate Loan. In the event the Borrower

------

fails to specify an Interest Period for any SOFR Loan in the applicable Funding Notice or Conversion / Continuation Notice, the Borrower shall be deemed to have selected an Interest Period of one (1) month. As soon as practicable *after* 10:00 a.m. (Eastern time) on each Interest Rate Determination Date, the Administrative Agent shall determine (which determination shall, absent manifest error, be final, conclusive and binding upon all parties) the interest rate that shall apply to each of the SOFR Loans for which an interest rate is then being determined (and for the applicable Interest Period) and shall promptly give notice thereof (in writing or by telephone confirmed in writing) to the Borrower and each Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Interest payable pursuant to this <u>Section</u> <u>2.7</u> shall be computed on the basis of: (i) for interest at the Base Rate, year of three hundred sixty-five (365) or three hundred sixty-six (366) days, as the case may be; and (ii) for all other computations of fees and interest, a year of three hundred sixty (360) days, in each case, for the actual number of days elapsed in the period during which it accrues. In computing interest on any Loan, the date of the making of such Loan, or the first (1<sup>st</sup>) day of an Interest Period applicable to such Loan, or, with respect to a Base Rate Loan being converted from a SOFR Loan, the date of conversion of such SOFR Loan to such Base Rate Loan, as the case may be, shall be included, and the date of payment of such Loan or the expiration date of an Interest Period applicable to such Loan or, with respect to a Base Rate Loan being converted to a SOFR Loan, the date of conversion of such Base Rate Loan to such SOFR Loan, as the case may be, shall be excluded; <u>provided</u>, <u>that</u>, if a Loan is repaid on the same day on which it is made, one (1) day's interest shall be paid on that Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If, as a result of any restatement of, or other adjustment to, the financial statements of the Borrower or for any other reason, the Borrower or the Lenders determine that (i) the Consolidated Leverage Ratio, as calculated by the Borrower as of any applicable date, was inaccurate, and (ii) a proper calculation of the Consolidated Leverage Ratio would have resulted in higher pricing for such period, then the Borrower shall immediately and retroactively be obligated to pay to the Administrative Agent, for the account of the holders of the Obligations, promptly on demand (and, in any event, by *not later than* ten (10) consecutive calendar days after the date of such demand) by the Administrative Agent (or, after the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower or any other Credit Party under the Bankruptcy Code or other Debtor Relief Law, automatically and any without further action(s) by the Agent or any Lender), an amount equal to the *excess* of the amount of interest and fees that should have been paid for such period *over* the amount of interest and fees actually paid for such period. This <u>clause (e</u>) shall *not* limit the rights of the Agent or any Lender, as the case may be, under any other provision of this Agreement. The Borrower's obligations under this <u>clause (e</u>) shall survive the termination of the Commitments and the repayment of all other Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as otherwise set forth herein, interest on each Loan shall accrue on a daily basis and shall be payable in arrears on and to: (i) each Interest Payment Date applicable to that Loan; (ii) upon any prepayment of that Loan (other than a voluntary prepayment of a Revolving Loan or Term Loan which interest shall be payable in accordance with <u>clause (f)(i</u>) above), to the extent accrued on the amount being prepaid; and (iii) at maturity, including final maturity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Borrower agrees to pay to the Issuing Bank, with respect to drawings honored under any Letter of Credit issued by the Issuing Bank, interest on the amount paid by the Issuing Bank in respect of each such honored drawing from, and including, the date such drawing is honored to, but *excluding*, the date such amount is reimbursed by, or on behalf of, the Borrower at a rate equal to: 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for the period from, and including, the date such drawing is honored to, but *excluding*, the applicable Reimbursement Date, the rate of interest otherwise payable hereunder with respect to Revolving Loans that are Base Rate Loans; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) thereafter, a rate which is the *lesser* of: (y) two percent (2.0%) per annum in *excess* of the rate of interest otherwise payable hereunder with respect to Revolving Loans that are Base Rate Loans; and (z) the Highest Lawful Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Interest payable pursuant to <u>clause (g</u>) above shall be computed on the basis of a year of three hundred sixty-five (365) or three hundred sixty-six (366) days, as the case may be, for the actual number of days elapsed in the period during which it accrues, and shall be payable on demand or, if no demand is made, on the date on which the related drawing under a Letter of Credit is reimbursed in full. Promptly upon receipt by the Issuing Bank of any payment of interest pursuant to <u>clause (g</u>) above, the Issuing Bank shall distribute to each Lender, out of the interest received by the Issuing Bank in respect of the period from the date such drawing is honored to, but *excluding*, the date on which the Issuing Bank is reimbursed for the amount of such drawing (including any such reimbursement out of the proceeds of any Revolving Loans), the amount that such Lender would have been entitled to receive in respect of the letter of credit fee that would have been payable in respect of such Letter of Credit for such period if no drawing had been honored under such Letter of Credit. In the event the Issuing Bank shall have been reimbursed by the Lenders for all or any portion of such honored drawing, the Issuing Bank shall distribute to each Lender which has paid all amounts payable by it under <u>Section</u> <u>2.3(e</u>) with respect to such honored drawing such Lender's Revolving Commitment Percentage of any interest received by the Issuing Bank in respect of that portion of such honored drawing so reimbursed by the Lenders for the period from the date on which the Issuing Bank was so reimbursed by the Lenders to but excluding the date on which such portion of such honored drawing is reimbursed by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In connection with the use and/or administration of SOFR, the SOFR Reference Rate for any applicable tenor and/or any SOFR-Based Rate, the Administrative Agent shall have the right to make Conforming Changes in consultation with the Borrower from time to time and, notwithstanding anything to the contrary in this Agreement or in any other Credit Document, any amendment(s) implementing any such Conforming Changes shall become effective without any further action(s) and/or consent(s) of any other party to this Agreement or any other Credit Document or of any other Person. The Administrative Agent shall promptly notify the Borrower and the Lenders of the effectiveness of any Conforming Changes implemented in connection with the use and/or administration of SOFR, the SOFR Reference Rate for any applicable tenor and/or any SOFR-Based Rate.

Section 2.8 <u>Conversion / Continuation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So long as no Default or Event of Default shall have occurred and then be continuing or would result therefrom, the Borrower shall have the option:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to convert at any time all, or any part, of any Loan equal to One-Hundred Thousand Dollars ($100,000) and, if greater, in an integral multiple of Fifty Thousand Dollars ($50,000) in excess thereof from one Type of Loan to another Type of Loan; <u>provided</u>, <u>that</u>, a SOFR Loan may only be converted on the expiration of the Interest Period applicable to such SOFR Loan unless the Borrower shall pay all amounts due under <u>Section</u> <u>3.1(c</u>) in connection with any such conversion; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon the expiration of any Interest Period applicable to any SOFR Loan, to continue all or any portion of such Loan as a SOFR Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall deliver a Conversion / Continuation Notice to the Administrative Agent by *no later than* 1:00 p.m. (Eastern time) *at least* three (3) Business Days in advance of the proposed Conversion / Continuation Date. Except as otherwise provided herein, a Conversion / Continuation Notice for conversion to, or continuation of, any SOFR Loans (or telephonic notice in lieu thereof) shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to effect a conversion or continuation in accordance therewith.

------

Section 2.9 <u>Default Rate of Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any amount of principal of any Loan is *not* paid when due, whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any amount (other than principal of any Loan) payable by the Borrower under any Credit Document is *not* paid when due (after the expiration of any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then, at the request of the Required Lenders, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the occurrence and during the continuance of an Automatic Acceleration Event of Default or a Payment Event of Default, the Borrower shall pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the occurrence and during the continuance of an Event of Default other than an Automatic Acceleration Event of Default and a Payment Event of Default, the Borrower shall, at the request of the Required Lenders, pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the case of any SOFR Loan, upon the expiration of the Interest Period in effect at the time the Default Rate of interest is effective, each such SOFR Loan shall thereupon become a Base Rate Loan and shall thereafter bear interest at the Default Rate then in effect for Base Rate Loans. Payment or acceptance of the increased rates of interest provided for in this <u>Section</u> <u>2.9</u> is *not* a permitted alternative to timely payment and shall *not* constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Administrative Agent or any Lender.

Section 2.10 <u>Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Commitment Fee</u>. The Borrower shall pay to the Administrative Agent, for the account of each Lender in accordance with its Revolving Commitment Percentage and its DDTL Commitment Percentage (as applicable), a commitment fee (the "*<u>Commitment Fee</u>*") equal to the *sum of*: (i) the *product of* (A) the Applicable Margin, *multiplied by* (B) the actual daily amount by which the Aggregate Revolving Commitment Amount *exceeds* the Aggregate Revolving Credit Exposure, subject to adjustment(s) as provided in <u>Section</u> <u>2.16</u>; *plus* (ii) the *product of* (A) the Applicable Margin, *multiplied by* (B) the Aggregate DDTL Commitment Amount then in effect. The Commitment Fee shall accrue at all times during the Revolver Availability Period and at all times during the DDTL Commitment Period, including at any time during which one or more of the conditions in <u>Article 5</u> is *not* met, and shall be due and payable quarterly in arrears on the last Business Day of each March, June, September and December, commencing with the first (1<sup>st</sup>) such date to occur after the Closing Date, on the Revolving Commitment Termination Date and on the DDTL Commitment Termination Date; <u>provided</u>, <u>that</u>, (I) no Commitment Fee shall accrue on any Revolving Commitment or any DDTL Commitment of any Defaulting Lender so

------

long as such Lender shall be a Defaulting Lender, and (II) any Commitment Fee accrued with respect to any Revolving Commitment or any DDTL Commitment of a Defaulting Lender during the period *prior* to the time that such Lender became a Defaulting Lender that remains unpaid at such time shall *not* be payable by the Borrower so long as such Lender shall be a Defaulting Lender. The Commitment Fee shall be calculated quarterly in arrears, and, if there is any change in the Applicable Margin during any quarter, the actual daily amount shall be computed and *multiplied by* the Applicable Margin separately for each period during such quarter that such Applicable Margin was in effect. For purposes of calculation of the Commitment Fee, Swingline Loans shall *not* be counted toward, or be considered as usage of, the Aggregate Revolving Commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Letter of Credit Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Letter of Credit Fees</u>. The Borrower shall pay to the Administrative Agent for the account of each Lender, in accordance with its Revolving Commitment Percentage, a Letter of Credit fee for each Letter of Credit equal to the Applicable Margin *multiplied by* the daily maximum amount available to be drawn under such Letter of Credit (collectively, the "*<u>Letter of</u> <u>Credit Fees</u>*"). For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with <u>Section</u> <u>1.3(b</u>). The Letter of Credit Fees shall be computed on a quarterly basis in arrears, and shall be due and payable on the last Business Day of each March, June, September and December, commencing with the first (1<sup>st</sup>) such date to occur after the issuance of such Letter of Credit, on the expiration date thereof and thereafter on demand; <u>provided</u>, <u>that</u>, (1) no Letter of Credit Fees shall accrue in favor of a Defaulting Lender so long as such Lender shall be a Defaulting Lender, and (2) any Letter of Credit Fees accrued in favor of a Defaulting Lender during the period prior to the time such Lender became a Defaulting Lender and unpaid at such time shall *not* be payable by the Borrower so long as such Lender shall be a Defaulting Lender. If there is any change in the Applicable Margin during any quarter, the daily maximum amount available to be drawn under each Letter of Credit shall be computed and *multiplied by* the Applicable Margin separately for each period during such quarter that such Applicable Margin was in effect. Notwithstanding anything to the contrary contained herein, upon the occurrence and during the continuance of an Automatic Acceleration Event of Default or a Payment Event of Default, all Letter of Credit Fees shall accrue at the Default Rate; and, upon the occurrence and during the continuance of an Event of Default other than an Automatic Acceleration Event of Default and a Payment Event of Default, then upon the request of the Required Lenders, all Letter of Credit Fees shall accrue at the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Fronting Fee and Documentary and Processing Charges Payable to Issuing Bank</u>. The Borrower shall pay, directly to the Issuing Bank for its own account, a fronting fee with respect to each Letter of Credit, at the rate per annum specified in the Fee Letter, computed on the daily amount available to be drawn under such Letter of Credit on a quarterly basis in arrears. Such fronting fee shall be due and payable on the last Business Day of each March, June, September and December in respect of the most recently-ended quarterly period (or portion thereof, in the case of the first (1<sup>st</sup>) payment), commencing with the first (1<sup>st</sup>) such date to occur after the issuance of such Letter of Credit, on its expiration date and thereafter on demand. For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with <u>Section</u> <u>1.3(b</u>). In addition, the Borrower shall pay directly to the Issuing Bank for its own account the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of the Issuing Bank relating to letters of credit as from time to time in effect. Such customary fees and standard costs and charges are due and payable on demand and are non-refundable.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Fees</u>. The Borrower shall pay to Regions Capital Markets, a division of Regions Bank, and the Administrative Agent, for their own respective accounts, fees in the amounts, and at the times, specified in the Fee Letter. Such fees shall be fully earned when paid and shall *not* be refundable for any reason whatsoever, except to the extent set forth in the Fee Letter.

Section 2.11 <u>Prepayments / Commitment Reductions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voluntary Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any time and from time to time, the Loans may be repaid in whole or in part without premium or penalty (subject to <u>Section</u> <u>3.1</u>):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) with respect to Base Rate Loans, the Borrower may prepay any such Loans on any Business Day, in whole or in part, in an aggregate minimum amount of Five-Hundred Thousand Dollars ($500,000) and, if greater, in an integral multiple of One-Hundred Thousand Dollars ($100,000) in excess thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) with respect to SOFR Loans, the Borrower may prepay any such Loans on any Business Day, in whole or in part (together with any amounts due pursuant to <u>Section</u> <u>3.1(c</u>)), in an aggregate minimum amount of Five-Hundred Thousand Dollars ($500,000) and, if greater, in an integral multiple of One-Hundred Thousand Dollars ($100,000) in excess thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) with respect to Swingline Loans, the Borrower may prepay any such Loans on any Business Day, in whole or in part, in any amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All such prepayments shall be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) upon written or telephonic notice on the date of prepayment in the case of Base Rate Loans or Swingline Loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) upon *not less than* three (3) Business Days' prior written or telephonic notice in the case of SOFR Loans;

in each case, given to the Administrative Agent or the Swingline Lender, as the case may be, by 11:00 a.m. (Eastern time) on the date required and, if given by telephone, promptly confirmed in writing to the Administrative Agent (and the Administrative Agent will promptly transmit such telephonic or original notice for a Credit Extension by telefacsimile or telephone to each Lender) (<u>provided</u>, <u>that</u>, a notice of prepayment delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such notice of prepayment shall be revoked or extended if such event or transaction does *not* occur or is delayed). Upon the giving of any such notice, the principal amount of the Loans specified in such notice shall become due and payable on the prepayment date specified therein. Any such voluntary prepayment shall be applied as specified in <u>Section</u> <u>2.12(a</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Commitment Reductions / Terminations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower may, from time to time upon *not less than* three (3) Business Days' prior written or telephonic notice confirmed in writing to the Administrative Agent (which original written or telephonic notice the Administrative Agent will promptly transmit by telefacsimile or telephone to each applicable Lender), at any time and from time to time, terminate, in whole or permanently reduce in part, the Revolving Commitments (ratably among the Lenders in accordance with their respective commitment percentage thereof), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any such partial reduction of the Revolving Commitments shall be in an aggregate minimum amount of Five Million Dollars ($5,000,000) and, if greater, in an integral multiple of One Million Dollars ($1,000,000) in excess thereof;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Borrower shall *not* terminate or reduce the Aggregate Revolving Commitments if, immediately *after* giving effect thereto and to any concurrent prepayments hereunder, the Aggregate Revolving Credit Exposure *exceeds* the Aggregate Revolving Commitment Amount; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) if, immediately after giving effect to any reduction of the Aggregate Revolving Commitment Amount, the Letter of Credit Sublimit and/or the Swingline Sublimit *exceed* the Aggregate Revolving Commitment Amount, then the Letter of Credit Sublimit and/or the Swingline Sublimit, as applicable, shall be automatically reduced by the amount of such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower's notice to the Administrative Agent shall designate the date (which shall be a Business Day) of such termination or reduction and the amount of any partial reduction, and such termination or reduction of the Aggregate Revolving Commitments shall be effective on the date specified in the Borrower's notice and shall reduce the Revolving Commitments of each Lender proportionately to its Revolving Commitment Percentage thereof (<u>provided</u>, <u>that</u>, a notice of termination or reduction of the Aggregate Revolving Commitments delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such notice of termination or reduction shall be revoked or extended if such event or transaction does *not* occur or is delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary in the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Aggregate Term Loan A Commitments terminated automatically on the Closing Date upon the Borrowing of the Term Loan A on the Closing Date pursuant to this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Aggregate DDTL Commitments shall (I) be automatically reduced, on a Dollar-for-Dollar basis, by the aggregate original principal amount of each advance made under the Delayed Draw Term Loan during the DDTL Availability Period at the time such advance is made, and (II) terminate automatically on the DDTL Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mandatory Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Revolving Commitments</u>. If, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Aggregate Revolving Credit Exposure shall *exceed* the Aggregate Revolving Commitment Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, shall *exceed* the Letter of Credit Sublimit; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the aggregate outstanding principal balance of all Swingline Loans, taken together, shall *exceed* the Swingline Sublimit;

then immediate prepayment will be made on, or in respect of, the Revolving Obligations in an amount equal to such excess; <u>provided</u>, <u>that</u>, except with respect to the foregoing <u>clause (c)(i)(B</u>), Letter of Credit Obligations will *not* be Cash Collateralized hereunder until the Revolving Loans and Swingline Loans shall have been Paid in Full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Asset Sales and Involuntary Dispositions</u>. Prepayment will be made on the Obligations on the third Business Day following receipt of Net Cash Proceeds in an amount equal to one hundred percent (100.0%) of the Net Cash Proceeds received from any Asset Sale or Involuntary Disposition involving any asset of any Credit Party, any Subsidiary or any other Regulated Entity (other than (A) any Asset Sales the aggregate amount of Net Cash Proceeds of which does *not exceed* Five-Hundred Thousand Dollars ($500,000) in any Fiscal Year, and (B) any Involuntary Dispositions the aggregate amount of Net Cash Proceeds of which does *not exceed* Five-Hundred Thousand Dollars ($500,000) in any Fiscal Year, in each case, to the extent such Net Cash Proceeds are *not* reinvested in the assets (but *excluding* current assets as classified by GAAP) of the Credit Parties, Subsidiaries and other Regulated Entities within one hundred eighty (180) days of the date of such Asset Sale or Involuntary Disposition (it being understood that such prepayment shall be due immediately upon the expiration of such 180-day period); <u>provided</u>, <u>that</u>, no such reinvestment shall be made upon the occurrence and during the continuance of any Event of Default). Notwithstanding anything to the contrary in the foregoing, no prepayments will be required to be made on the Obligations with respect to the receipt of Net Cash Proceeds from the sale of any portfolio assets by any Regulated Entity in the ordinary course of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Debt Transactions</u>. Prepayment will be made on the Obligations in an amount equal to one hundred percent (100.0%) of the Net Cash Proceeds from any Debt Transactions on the Business Day following receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Specified Equity Contributions</u>. Prepayment will be made on the Obligations in an amount equal to one hundred percent (100.0%) of the Net Cash Proceeds from any Specified Equity Contribution on the Business Day following receipt thereof.

Notwithstanding any other provision of this <u>Section</u> <u>2.11</u>, with respect to any amount of Net Cash Proceeds subject to any of the foregoing <u>clauses (c)(ii</u>) through (<u>c)(iv</u>) attributable to a Foreign Subsidiary, in the event that the Borrower determines in good faith in consultation with the Administrative Agent that the upstreaming of cash equal to such amount by such Foreign Subsidiary would (i) violate any local law (*e*.*g*., financial assistance, thin capitalization, corporate benefit, or the fiduciary and statutory duties of the directors of such Foreign Subsidiary) or any term of any Organizational Document applicable to such Foreign Subsidiary required by Applicable Law, or (ii) cause any material adverse tax consequence to the Credit Parties, Subsidiaries and other Regulated Entities, then such amount shall be *excluded* from such Net Cash Proceeds; <u>provided</u>, <u>that</u>, for one (1) year from the date on which the obligation to make the applicable prepayment arose, the Borrower and such Foreign Subsidiary shall use all commercially reasonable efforts to overcome or eliminate any such restrictions or minimize any such costs of prepayment and, if successful, shall promptly make the applicable prepayment, unless the Borrower shall have determined in good faith in consultation with the Administrative Agent that such actions would require the expenditure of a material amount of funds.

------

Section 2.12 <u>Application of Prepayments</u>. Within each Loan, prepayments will be applied, *<u>first</u>*, to Base Rate Loans, and *<u>then</u>*, to SOFR Loans in direct order of Interest Period maturities. In addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voluntary Prepayments</u>. Voluntary prepayments will be applied as specified by the Borrower, <u>provided</u>, <u>that</u>, in the case of prepayments on any of the Term Loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the prepayment will be applied ratably to the Term Loans then outstanding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to each Term Loan then outstanding, the prepayments will be applied to remaining principal installments thereunder as directed by the Borrower (and, absent such direction, in direct order of maturity thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mandatory Prepayments</u>. Mandatory prepayments will be applied as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Mandatory prepayments in respect of the Revolving Commitments under <u>Section</u> <u>2.11(c)(i</u>) above shall be applied to the respective Revolving Obligations, as appropriate, but without a permanent reduction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Mandatory prepayments in respect of Asset Sales and Involuntary Dispositions under <u>Section</u> <u>2.11(c)(ii</u>), Debt Transactions under <u>Section</u> <u>2.11(c)(iii</u>), and Specified Equity Contributions under <u>Section</u> <u>2.11(c)(iv</u>) shall be applied as follows: (A)*<u>first</u>*, ratably to the Term Loans, until the same are paid in full; and (B)*<u>then</u>*, to the Revolving Obligations (without a permanent reduction thereof) as follows, (I)*<u>first</u>*, to the principal balance of the Swingline Loans, until the same shall have been paid in full, to the Swingline Lender, (II)*<u>second</u>*, to the principal balance of the Revolving Loans, until the same shall have been paid in full, *pro rata* to the Lenders based on their respective Revolving Commitments, and (III)*<u>third</u>*, to Cash Collateralize the Letters of Credit as of such date *plus* any accrued and unpaid fees thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Mandatory prepayments with respect to each of the Term Loans will be applied to remaining principal installments thereunder (including the installment due on the applicable Maturity Date therefor) on a *pro rata* basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Prepayments on the Obligations will be paid by the Administrative Agent to the Lenders ratably in accordance with their respective interests therein (except for Defaulting Lenders where their share will be applied as provided in <u>Section</u> <u>2.16(a)(ii</u>) hereof).

Section 2.13 <u>General Provisions Regarding Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments by the Borrower of principal, interest, fees and other Obligations hereunder or under any other Credit Document shall be made in Dollars in immediately available funds, without defense, recoupment, setoff or counterclaim, free of any restriction or condition. The Administrative Agent shall, and the Borrower hereby authorizes the Administrative Agent to, debit a deposit account of the Borrower or any of its Subsidiaries held with the Administrative Agent or any of its Affiliates and designated for such purpose by the Borrower or such Subsidiary in order to cause timely payment to be made to the Administrative Agent of all principal, interest and fees due hereunder or under any other Credit Document (subject to sufficient funds being available in its accounts for that purpose).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the Administrative Agent is unable to debit a deposit account of the Borrower or any of its Subsidiaries held with the Administrative Agent or any of its Affiliates in order to cause timely payment to be made to the Administrative Agent of all principal, interest and fees due hereunder or any other Credit Document (including because insufficient funds are available in its accounts for that purpose), payments hereunder and under any other Credit Document shall be delivered to the Administrative Agent, for the account of the Lenders, *not later than* 2:00 p.m. on the date due at the Principal Office of the Administrative Agent or via wire transfer of immediately available funds to an account designated by the Administrative Agent (or at such other location as may be designated in writing by the Administrative Agent from time to time); for purposes of computing interest and fees, funds received by the Administrative Agent after that time on such due date shall be deemed to have been paid by the Borrower on the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All payments in respect of the principal amount of any Loan (other than voluntary repayments of Revolving Loans) shall be accompanied by payment of accrued interest on the principal amount being repaid or prepaid, and all such payments (and, in any event, any payments in respect of any Loan on a date when interest is due and payable with respect to such Loan) shall be applied to the payment of interest then due and payable before application to principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall promptly distribute to each Lender at such address as such Lender shall indicate in writing, such Lender's applicable *pro rata* share of all payments and prepayments of principal and interest due to such Lender hereunder, together with all other amounts due with respect thereto, including all fees payable with respect thereto, to the extent received by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary in the foregoing provisions hereof, if any Conversion / Continuation Notice is withdrawn as to any Affected Lender or if any Affected Lender makes Base Rate Loans in lieu of its *pro rata* share of any SOFR Loans, the Administrative Agent shall give effect thereto in apportioning payments received thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subject to the provisos set forth in the definition of "*Interest Period*", whenever any payment to be made hereunder shall be stated to be due on a day that is *not* a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest hereunder or of the Commitment Fee hereunder, but such payment shall be deemed to have been made on the date therefor for all other purposes hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Administrative Agent may, but shall *not* be obligated to, deem any payment by, or on behalf of, the Borrower hereunder that is *not* made in same day funds prior to 2:00 p.m. to be a non-conforming payment. Any such payment shall *not* be deemed to have been received by the Administrative Agent until the *later* of: (i) the time such funds become available funds; and (ii) the applicable next Business Day. The Administrative Agent shall give prompt telephonic notice to the Borrower and each applicable Lender (confirmed in writing) if any payment is non-conforming. Any non-conforming payment may constitute or become a Default or Event of Default in accordance with the terms of <u>Section</u> <u>9.1(a</u>). Interest shall continue to accrue on any principal as to which a non-conforming payment is made until such funds become available funds (but in no event *less than* the period from the date of such payment to the next succeeding applicable Business Day) at the Default Rate (unless otherwise provided by the Required Lenders) from the date such amount was due and payable until the date such amount is Paid in Full.

Section 2.14 <u>Sharing of Payments by Lenders</u>. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of, or interest on, any of its Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of such Loans and accrued interest thereon or other such obligations *greater than* its *pro rata* share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the

------

Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of, and accrued interest on, their respective Loans and other amounts owing them; <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the provisions of this Section shall *not* be construed to apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any payment made by the Borrower pursuant to, and in accordance with, the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any amounts applied by the Swingline Lender to outstanding Swingline Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any amounts applied to Letter of Credit Obligations by the Issuing Bank or Swingline Loans by the Swingline Lender, as appropriate, from Cash Collateral provided under <u>Section</u> <u>2.15</u> or <u>Section</u> <u>2.16</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any payment obtained by a Lender as consideration for the assignment of, or sale of, a participation in any of its Loans, or participations in Letter of Credit Obligations, Swingline Loans or other obligations hereunder, to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this <u>Section</u> <u>2.14</u> shall apply).

Each of the Credit Parties consents to the foregoing and agrees, to the extent it may effectively do so under Applicable Laws, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Credit Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Credit Party in the amount of such participation.

Section 2.15 <u>Cash Collateral</u>. At any time that there shall exist a Defaulting Lender, within one (1) Business Day following the written request of the Administrative Agent or the Issuing Bank (with a copy to the Administrative Agent) the Borrower shall Cash Collateralize the Issuing Bank's Fronting Exposure with respect to such Defaulting Lender in an amount sufficient to cover the applicable Fronting Exposure (after giving effect to <u>Section</u> <u>2.16(a)(iv</u>) and any Cash Collateral provided by the Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant of Security Interest</u>. The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grants to the Administrative Agent, for the benefit of the Issuing Bank, and agrees to maintain, a perfected first priority security interest in all such Cash Collateral as security for the Defaulting Lenders' obligation to fund participations in respect of Letter of Credit Obligations, to be applied pursuant to <u>clause (b</u>) below. If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent and the Issuing Bank as herein provided, or that the total amount of such Cash Collateral is less than the applicable Fronting Exposure, the Borrower will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Application</u>. Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this <u>Section</u> <u>2.15</u> or <u>Section</u> <u>2.16</u> in respect of Letters of Credit shall be applied to the satisfaction of the Defaulting Lender's obligation to fund participations in respect of Letter of Credit Obligations (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided for herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Requirement</u>. Cash Collateral (or the appropriate portion thereof) provided to reduce the Issuing Bank's Fronting Exposure shall no longer be required to be held as Cash Collateral pursuant to this <u>Section</u> <u>2.15</u> following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the elimination of the applicable Fronting Exposure (including by the termination of Defaulting Lender status of the applicable Lender); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the determination by the Administrative Agent and the Issuing Bank that there exists excess Cash Collateral;

<u>provided</u>, <u>that</u>, (x) that Cash Collateral furnished by, or on behalf of, a Credit Party shall *not* be released during the continuance of a Default or Event of Default (and, following application as provided in this <u>Section</u> <u>2.15</u>, may be otherwise applied in accordance with <u>Section</u> <u>9.3</u>) but shall be released upon the cure, termination or waiver of such Default or Event of Default in accordance with the terms of this Agreement, and (y) the Person providing Cash Collateral and the Issuing Bank or Swingline Lender, as applicable, may agree that Cash Collateral shall *not* be released, but instead held to support future anticipated Fronting Exposure or other obligations.

Section 2.16 <u>Defaulting Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Defaulting Lender Adjustments</u>. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Waivers and Amendments</u>. Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in <u>Section</u> <u>11.4(a)(iii</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Defaulting Lender Waterfall</u>. Any payment of principal, interest, fees or other amount (other than fees which any Defaulting Lender is not entitled to receive pursuant to <u>clause</u> <u>(a)(iii</u>) below) received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to <u>Article 9</u> or otherwise, and including any amounts made available to the Administrative Agent by that Defaulting Lender pursuant to <u>Section</u> <u>11.3</u>), shall be applied at such time or times as may be determined by the Administrative Agent as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) *<u>first</u>*, to the payment of any amounts owing by that Defaulting Lender to the Administrative Agent hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) *<u>second</u>*, to the payment on a *pro rata* basis of any amounts owing by that Defaulting Lender to the Issuing Bank or the Swingline Lender hereunder;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) *<u>third</u>*, to Cash Collateralize the Issuing Bank's Fronting Exposure with respect to such Defaulting Lender in accordance with <u>Section</u> <u>2.15</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) *<u>fourth</u>*, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which that Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) *<u>fifth</u>*, if so determined by the Administrative Agent and the Borrower, to be held in a non-interest bearing deposit account and released in order to: (I) satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this Agreement; and (II) Cash Collateralize the Issuing Bank's future Fronting Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with <u>Section</u> <u>2.15</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) *<u>sixth</u>*, to the payment of any amounts owing to the Lenders, the Issuing Bank or the Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the Issuing Bank or the Swingline Lender against that Defaulting Lender as a result of that Defaulting Lender's breach of its obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) *<u>seventh</u>*, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against that Defaulting Lender as a result of that Defaulting Lender's breach of its obligations under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) *<u>eighth</u>*, to that Defaulting Lender or as otherwise directed by a court of competent jurisdiction;

<u>provided</u>, <u>that</u>, if (x) such payment is a payment of the principal amount of any Loans or Letter of Credit Borrowings in respect of which that Defaulting Lender has *not* fully funded its appropriate share, and (y) such Loans or Letter of Credit Borrowings were made at a time when the conditions set forth in <u>Section</u> <u>5.2</u> were satisfied or waived, such payment shall be applied *solely* to the pay the Loans of, and Letter of Credit Borrowings owed to, all Non-Defaulting Lenders on a *pro rata* basis, prior to being applied to the payment of any Loans of, or Letter of Credit Borrowings owed to, such Defaulting Lender, until such time as all Loans and funded and unfunded participations in Letter of Credit Obligations and Swingline Loans are held by the Lenders *pro rata* in accordance with their Revolving Commitments without giving effect to <u>clause (a)(iv</u>) below. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this <u>clause (a)(ii</u>) shall be deemed paid to (and the underlying obligations satisfied to the extent of such payment) and redirected by that Defaulting Lender, and each Lender irrevocably consents hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Certain Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Such Defaulting Lender shall *not* be entitled to receive any Commitment Fee, any fees with respect to Letters of Credit (except as provided in <u>clause (b</u>) below) or any other fees hereunder for any period during which that Lender is a Defaulting Lender (and the Borrower shall *not* be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Each Defaulting Lender shall be entitled to receive Letter of Credit Fees for any period during which that Lender is a Defaulting Lender only to the extent allocable to its Revolving Commitment Percentage of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to <u>Section</u> <u>2.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) With respect to any fee *not* required to be paid to any Defaulting Lender pursuant to <u>clause (a)(iii)(A</u>) or (<u>a)(iii)(B</u>) above, the Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender's participation in Letter of Credit Obligations or Swingline Loans that has been reallocated to such Non-Defaulting Lender pursuant to <u>clause (a)(iv</u>) below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) pay to the Issuing Bank and Swingline Lender, as applicable, the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to the Issuing Bank's or Swingline Lender's Fronting Exposure to such Defaulting Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) *not* be required to pay the remaining amount of any such fee. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Reallocation of Participations to Reduce Fronting Exposure</u>. All, or any part, of such Defaulting Lender's participation in Letter of Credit Obligations and Swingline Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Revolving Commitment Percentages (calculated without regard to such Defaulting Lender's Revolving Commitment), but only to the extent that: (x) the conditions set forth in <u>Section</u> <u>5.2</u> are satisfied at the time of such reallocation (and, unless the Borrower shall have otherwise notified the Administrative Agent at such time, the Borrower shall be deemed to have represented and warranted that such conditions are satisfied at such time); and (y) such reallocation does *not* cause the aggregate Revolving Credit Exposure at such time to *exceed* such Non-Defaulting Lender's Revolving Commitment. No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non- Defaulting Lender's increased exposure following such reallocation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Cash Collateral, Repayment of Swingline Loans</u>. If the reallocation described in <u>clause (a)(iv</u>) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) *<u>first</u>*, prepay Swingline Loans in an amount equal to the Swingline Lender's Fronting Exposure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) *<u>second</u>*, Cash Collateralize the Issuing Bank's Fronting Exposure in accordance with the procedures set forth in <u>Section</u> <u>2.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Defaulting Lender Cure</u>. If the Borrower, the Administrative Agent and the Swingline Lender and the Issuing Bank agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon, as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit

------

and Swingline Loans to be held *pro rata* by the Lenders in accordance with the Revolving Commitments (without giving effect to <u>clause (a)(iv</u>) above), whereupon such Lender will cease to be a Defaulting Lender; <u>provided</u>, <u>that</u>, no adjustments will be made retroactively with respect to fees accrued or payments made by, or on behalf of, the Borrower while that Lender was a Defaulting Lender; and <u>provided</u>, <u>further</u>, <u>that</u>, except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>New Swingline Loans / Letters of Credit</u>. So long as any Lender is a Defaulting Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Swingline Lender shall *not* be required to fund Swingline Loans unless it is satisfied that it will have no Fronting Exposure after giving effect to such Swingline Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Issuing Bank shall *not* be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.

Section 2.17 <u>Removal or Replacement of Lenders</u>. If:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender requests compensation under <u>Section</u> <u>3.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Credit Party is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>3.3</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Lender gives notice of an inability to fund SOFR Loans under <u>Section</u> <u>3.1(b</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any Lender is a Defaulting Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any Lender (a "*<u>Non</u>*<u>-</u>*<u>Consenting Lender</u>*") does *not* consent (including by way of a failure to respond in writing to a proposed amendment, consent or waiver by the date and time specified by the Administrative Agent) to a proposed amendment, consent, change, waiver, discharge or termination hereunder or with respect to any Credit Document that has been approved by the Required Lenders;

then, the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate without recourse (in accordance with, and subject to, the restrictions contained in, and consents required by, <u>Section</u> <u>11.5</u>), all of its interests, rights (other than its rights under <u>Section</u> <u>3.2</u>, <u>Section</u> <u>3.3</u> and <u>Section</u> <u>11.2</u>) and obligations under this Agreement and the related Credit Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower shall have paid to the Administrative Agent the assignment fee specified in <u>Section</u> <u>11.5(b)(iv</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in Letter of Credit Borrowings, as applicable, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Credit Documents (including any amounts under <u>Section</u> <u>3.1(c</u>)) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any such assignment resulting from a claim for compensation under <u>Section</u> <u>3.2</u> or payments required to be made pursuant to <u>Section</u> <u>3.3</u>, such assignment is reasonably expected to result in a reduction in such compensation or payments thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such assignment does *not* conflict with Applicable Laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in the case of any such assignment resulting from a Non-Consenting Lender's failure to consent to a proposed amendment, consent, change, waiver, discharge or termination, the successor replacement Lender shall have consented to the proposed amendment, consent, change, waiver, discharge or termination.

Each Lender agrees that in the event it, or its interests in the Loans and obligations hereunder, shall become subject to the replacement and removal provisions of this Section, it will cooperate with the Borrower and the Administrative Agent to give effect to the provisions hereof, including execution and delivery of an Assignment Agreement in connection therewith, but the replacement and removal provisions of this Section shall be effective regardless of whether an Assignment Agreement shall have been given.

A Lender shall *not* be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

**Article 3** 

**<u>YIELD PROTECTION</u>**

Section 3.1 <u>Making or Maintaining SOFR Loans; Benchmark Replacement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Inability to Determine Rates</u>. Notwithstanding anything to the contrary in this Agreement or any other Credit Document (<u>provided</u>, <u>that</u>, for the avoidance of doubt, any Swap Agreement shall be deemed *not* to be a "*Credit Document*" for purposes of this <u>Section</u> <u>3.1</u>), in the event that the Administrative Agent shall have determined (which determination shall be final and conclusive and binding upon all parties to this Agreement), on any Interest Rate Determination Date with respect to any SOFR Loans, that reasonable and adequate means do *not* exist for ascertaining the interest rate applicable to such SOFR Loans on the basis provided for in the definition of "*Term SOFR*" (and any related defined terms used therein) in <u>Section</u> <u>1.1</u>, then the Administrative Agent shall give notice (either by telefacsimile or by telephone confirmed in writing) to the Borrower and each Lender of such determination, whereupon and whereafter, (i) no Loans may or shall be made as, or continued as or converted into, SOFR Loans until such time as the Administrative Agent shall have notified the Borrower and the Lenders in writing that the event(s) and/or circumstance(s) giving rise to such initial determination no longer exist, (ii) any Funding Notice(s) and/or any Conversion / Continuation Notice(s) given by the Borrower with respect to any Loan(s) in respect of which such determination was made shall be deemed to have been rescinded by the Borrower, and (iii) all such Loan(s) described in the foregoing <u>clause (a)(ii</u>) shall be automatically made or continued as, or converted into, as applicable, Base Rate Loans on the last day of the then-current Interest Period applicable thereto (without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u>), unless the Borrower shall have prepaid such Loan(s) in accordance with this Agreement; <u>provided</u>, <u>that</u>, if the event(s) and/or circumstance(s) giving rise to such initial determination shall have occurred but only with respect to certain (but *not* all) of the tenors of the then applicable term rate Benchmark (including, for the avoidance of doubt, the SOFR Reference Rate for any applicable tenor), then (A) the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any

------

similar or analogous definition) for any Benchmark settings at or after such time to remove such illegal or impracticable tenor, and (B) if a tenor that was removed pursuant to the foregoing <u>clause (a)(A</u>) is subsequently displayed on a screen or information service for a Benchmark, then the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Illegality or Impracticability of the Benchmark</u>. Subject to <u>clause (g</u>) below, in the event that, on any date, any Lender shall have determined (which determination (A) shall be final and conclusive and binding upon all parties to this Agreement, but (B) shall be made only after written notice to, and consultation with, the Borrower and the Administrative Agent) that a Benchmark Illegality / Impracticability Event has occurred with respect to such Lender, then such Lender shall be an "*<u>Affected</u> <u>Lender</u>*" and such Lender shall, on that date, give notice (either by telefacsimile or by telephone confirmed in writing) to the Borrower and the Administrative Agent of such determination (which notice the Administrative Agent shall promptly transmit to each other Lender). Thereafter: (i) the obligation of such Affected Lender to make Loans as, or to continue Loans as or to convert Loans to, SOFR Loans shall be suspended, until such notice shall have been withdrawn by such Affected Lender in writing to the Administrative Agent and the Borrower; (ii) to the extent that such determination by such Affected Lender relates to a SOFR Loan, or to a continuation thereof or a conversion of outstanding Loans thereto, then being requested by the Borrower pursuant to a Funding Notice or Conversion / Continuation Notice (as applicable), then the Affected Lender shall make such Loan as (or convert such Loan to, as applicable) a Base Rate Loan, determined without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u>; (iii) such Affected Lender's obligation to maintain its outstanding SOFR Loans (the "*<u>Affected</u> <u>Loans</u>*") shall be terminated at the *earlier* to occur of (A) the expiration of the Interest Period then in effect with respect to such Affected Loans, or (B) when required by Applicable Law; and (iv) such Affected Loans shall automatically convert into Base Rate Loans, determined without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u>, on the date of such termination described in the foregoing <u>clause (b)(iii</u>). Notwithstanding anything to the contrary in the foregoing of this <u>clause (b</u>), to the extent that a determination by an Affected Lender as described above relates to a SOFR Loan (or a continuation thereof or a conversion of outstanding Loans thereto) then being requested by the Borrower pursuant to a Funding Notice or Conversion / Continuation Notice (as applicable), then the Borrower shall have the option, subject to the provisions of the foregoing <u>clause (a</u>), to rescind such Funding Notice or Conversion / Continuation Notice (as applicable) as to all Lenders by giving notice (either by telefacsimile or telephone confirmed in writing) to the Administrative Agent of such rescission on the date on which such Affected Lender gives notice of its determination as described in the foregoing of this <u>clause (b</u>) (which notice of rescission the Administrative Agent shall promptly transmit to each other Lender). Except as otherwise provided in the immediately preceding sentence, nothing in this <u>clause (b</u>) shall affect the obligation of any Lender, other than an Affected Lender, to make or maintain Loans as, or to continue outstanding Loans as or convert outstanding Loans into, SOFR Loans in accordance with the terms of this Agreement. Notwithstanding anything to the contrary in the foregoing, if a Benchmark Illegality / Impracticability Event shall have occurred but only with respect to certain (but *not* all) of the tenors of the then applicable term rate Benchmark (including, for the avoidance of doubt, the SOFR Reference Rate for any applicable tenor), then: (I) the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such illegal or impracticable tenor; and (II) if a tenor that was removed pursuant to the foregoing <u>clause (b)(I</u>) is *not*, or is no longer, subject to a Benchmark Illegality / Impracticability Event, then the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Compensation for Breakage or Non-Commencement of Interest Periods</u>. The Borrower shall compensate each Lender, upon written request by such Lender (which request shall set forth the basis for requesting such amounts), for all reasonable out-of-pocket losses, expenses and liabilities (including any interest paid, or calculated to be due and payable, by such Lender to lenders of funds borrowed by it to make or carry its SOFR Loans, and any loss, expense or liability sustained by such Lender in connection with the liquidation or re-employment of such funds, but *excluding* loss of anticipated profits) that such Lender sustains if: (i) for any reason (other than a default by such Lender), a borrowing of any SOFR Loans does *not* occur on a date specified therefor in a Funding Notice (or a telephonic request for borrowing), or a conversion to, or continuation of, any SOFR Loans does *not* occur on a date specified therefor in a Conversion / Continuation Notice (or a telephonic request for conversion or continuation); (ii) any prepayment or other principal payment of, or any conversion of, any of its SOFR Loans occurs on any day other than the last day of an Interest Period applicable to that Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise), including as a result of an assignment in connection with the replacement of a Lender pursuant to <u>Section</u> <u>2.17</u>; or (iii) any prepayment of any of its SOFR Loans is *not* made on any date specified in a notice of prepayment given by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Booking of SOFR Loans</u>. Any Lender may make, carry or transfer SOFR Loans at, to, or for the account of any of its branch offices or the office of an Affiliate of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certificates for Reimbursement</u>. A certificate of a Lender setting forth, in reasonable detail, the amount(s) necessary to compensate such Lender, as specified in the foregoing <u>clause (c</u>), and the circumstances giving rise thereto, shall be delivered to the Borrower and shall be conclusive absent manifest error. In the absence of any such manifest error, the Borrower shall pay to the applicable Lender or the Issuing Bank, as the case may be, the amount(s) shown as due on any such certificate promptly and, in any event, within ten (10) Business Days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Delay in Requests</u>. The Borrower shall *not* be required to compensate a Lender pursuant to the foregoing <u>clause (c</u>) for any such amount(s) incurred *more than* six (6) calendar months *prior* to the date on which such Lender shall have delivered to the Borrower the certificate referenced in the foregoing <u>clause (e</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Benchmark Replacement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Generally</u>*. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, if the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error), or the Required Lenders (individually or jointly) notify the Administrative Agent (with, in the case of the Required Lenders, a copy delivered to the Borrower) that the Required Lenders (as applicable) have determined, that a Benchmark Illegality / Impracticability Event has occurred, then, on a date and time determined by the Administrative Agent (any such date, a "*<u>Benchmark Replacement Date</u>*"), which date shall be at the end of an Interest Period or on the relevant Interest Payment Date, as applicable, for interest calculated, the then current Benchmark shall be replaced under this Agreement and the other Credit Documents with the Benchmark Replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Amendment</u>*. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, (A) if the Administrative Agent determines that any alternative Benchmark (other than the SOFR Reference Rate for any applicable tenor) set forth in the definition of "*Benchmark Replacement*" in <u>Section</u> <u>1.1</u> is available on, or prior to, the applicable Benchmark Replacement Date, or (B) a Benchmark Illegality / Impracticability Event has occurred with respect to a Benchmark Replacement (other than the SOFR Reference Rate for any applicable tenor) then in effect, then, in each case of the foregoing <u>clauses (g)(ii)(A</u>) and (<u>g)(ii)(B</u>), the Administrative Agent and the Borrower may amend this Agreement *solely* for the

------

purpose of replacing the SOFR Reference Rate (for any applicable tenor), or any then current Benchmark Replacement, in accordance with this <u>Section</u> <u>3.1</u> at the end of any applicable Interest Period, relevant Interest Payment Date or payment period for interest calculated, as applicable, with another alternate benchmark rate, in any such case, giving due consideration to any evolving, or then existing, convention(s) for similar Dollar-denominated syndicated credit facilities for such alternative benchmark(s), and, in each case, including any mathematical or other adjustments to such benchmark(s) (giving due consideration to any evolving, or then existing, convention(s) for similar Dollar-denominated syndicated credit facilities for such benchmark(s)), which adjustment(s), or method(s) for calculating such adjustment(s), shall be published on an information service as selected by the Administrative Agent from time to time in its reasonable discretion and may be periodically updated. For the avoidance of doubt, any such proposed rate and adjustment(s) shall constitute a Benchmark Replacement. Any such amendment shall become effective at 5:00 P.M. (New York City time) on the date that is five (5) Business Days *after* the date on which the Administrative Agent shall have posted a copy of such proposed amendment to all Lenders and the Borrower, without any further action(s) and/or consent(s) of any Credit Party, any other party to this Agreement or any other Credit Document and/or any other Person, so long as the Administrative Agent has *not* received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>Notices</u>*. The Administrative Agent shall notify (in one (1) or more notices) the Borrower and each Lender of the implementation of any Benchmark Replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *<u>Administration of Benchmark Replacement</u>*. Any Benchmark Replacement shall be applied in a manner consistent with market practice; <u>provided</u>, <u>that</u>, to the extent that such market practice is *not* administratively feasible for the Administrative Agent, then such Benchmark Replacement shall be applied in a manner as otherwise reasonably determined by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *<u>Floor</u>*. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, if, at any time, any Benchmark Replacement, as determined in accordance with this <u>Section</u> <u>3.1</u> and the related definitions in <u>Section</u> <u>1.1</u>, shall be *less than* the Floor, then such Benchmark Replacement shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents; <u>provided</u>, <u>that</u>, notwithstanding anything to the contrary in this Agreement or in any other Credit Document, at any time that the applicable interest rate for Base Rate Loans is determined without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u> by operation of this <u>Section</u> <u>3.1</u>, then the "*Floor*", for purposes of calculating such applicable interest rate, shall be increased by one percent (1.00%) per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *<u>Conforming Changes</u>*. In connection with the use, administration, adoption and/or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Conforming Changes from time to time in consultation with the Borrower, and, notwithstanding anything to the contrary in this Agreement or in any other Credit Document, any amendments implementing such Conforming Changes will become effective without any further action(s) and/or consent(s) of any Credit Party, any other party to this Agreement or any other Credit Document and/or any other Person; <u>provided</u>, <u>that</u>, with respect to any such amendment effected in reliance on this <u>clause (g)(vi</u>), the Administrative Agent shall post a copy of such amendment implementing such Conforming Changes to the Borrower and the Lenders reasonably promptly after such amendment becomes effective.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) *<u>Standards for Decisions and Determinations</u>*. Any determination, decision, or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this <u>clause (g</u>), including, without limitation, any determination with respect to a tenor, rate or adjustment, or of the occurrence or non-occurrence of an event, circumstance or date, and any decision to take, or refrain from taking, any action or any selection, will be conclusive and binding absent manifest error, and may be made in its or their, as applicable, sole discretion, and, in any event, without consent from any Credit Party, any other party to this Agreement or any other Credit Document or any other Person, except, in each case, as expressly required pursuant to this <u>clause (g</u>).

Section 3.2 <u>Increased Costs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Increased Costs Generally</u>. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender or the Issuing Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in <u>clauses (b</u>) through (<u>d</u>) of the definition of "*Excluded Taxes*", and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on any Lender or the Issuing Bank or the secured overnight financing or any other applicable interbank lending market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its obligation to make any such Loan, or to increase the cost to such Lender, the Issuing Bank or such other Recipient of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender, Issuing Bank or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, Issuing Bank or other Recipient, the Borrower will pay to such Lender, Issuing Bank or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender, Issuing Bank or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Capital and Liquidity Requirements</u>. If any Lender, the Issuing Bank or the Swingline Lender (for purposes hereof, may be referred to collectively as "*the Lenders*" or a "*Lender*") determines that any Change in Law affecting such Lender or any lending office of such Lender or such Lender's holding company, if any, regarding capital or liquidity ratios or requirements has or would have the effect of reducing the rate of return on such Lender's capital or on the capital of such Lender's holding company, if any, as a consequence of this Agreement, the commitments of such Lender hereunder or the Loans made by, or participations in Letters of Credit and Swingline Loans held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or such Lender's holding company could have achieved but for such Change in Law (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender, as the case may be, such additional amount or amounts as will compensate such Lender or such Lender's holding company for any such reduction suffered.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificates for Reimbursement</u>. A certificate of a Lender or the Issuing Bank setting forth in reasonable detail the amount or amounts necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be, as specified in <u>clauses (a</u>) or (<u>b</u>) above and the circumstances giving rise thereto shall be delivered to the Borrower and shall be conclusive absent manifest error. In the absence of any such manifest error, the Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within ten

(10) Business Days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delay in Requests</u>. Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section shall *not* constitute a waiver of such Lender's or the Issuing Bank's right to demand such compensation, <u>provided</u>, <u>that</u>, the Borrower shall *not* be required to compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs incurred or reductions suffered *more than* six (6) months prior to the date that such Lender or the Issuing Bank, as the case may be, delivers to the Borrower the certificate referenced in <u>clause (c</u>) above and notifies the Borrower of such Lender's or the Issuing Bank's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).

Section 3.3 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Issuing Bank</u>. For purposes of this <u>Section</u> <u>3.3</u>, the term "*Lender*" shall include the Issuing Bank and the term "*Applicable Laws*" shall include FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes</u>. Any and all payments by, or on account of, any obligation of any Credit Party hereunder or under any other Credit Document shall be made without deduction or withholding for any Taxes, except as required by Applicable Laws. If any Applicable Laws (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Laws and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Credit Party shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment of Other Taxes by the Credit Parties</u>. The Credit Parties shall timely pay to the relevant Governmental Authority in accordance with Applicable Laws, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Tax Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Credit Parties shall jointly and severally indemnify each Recipient and shall make payment in respect thereof within ten (10) Business Days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly

------

or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of any such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Lender shall severally indemnify the Administrative Agent, within ten (10) Business Days after demand therefor, for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Indemnified Taxes attributable to such Lender (but only to the extent that any Credit Party has *not* already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Credit Parties to do so);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Taxes attributable to such Lender's failure to comply with the provisions of <u>Section</u> <u>11.5(d</u>) relating to the maintenance of a Participant Register; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Excluded Taxes attributable to such Lender;

in each case, that are payable or paid by the Administrative Agent in connection with any Credit Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Credit Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this <u>clause (d)(ii</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by any Credit Party to a Governmental Authority pursuant to this Section, such Credit Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of a return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Status of Lenders; Tax Documentation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Credit Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by Applicable Laws or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two (2) sentences, the completion, execution and submission of such documentation (other than such documentation set forth in <u>clauses (f)(ii)(A</u>), (<u>f)(ii)(B</u>) and (<u>f)(ii)(D</u>) below) shall *not* be required if, in the Lender's reasonable judgment, such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), duly completed and executed originals of IRS Form W–9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party: (x) with respect to payments of interest under any Credit Document, duly completed and executed originals of IRS Form W–8BEN–E (or W–8BEN as applicable) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty; and (y) with respect to any other applicable payments under any Credit Document, IRS Form W–8BEN–E (or W–8BEN as applicable) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) duly completed and executed originals of IRS Form W–8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 871 or 881(c) of the Internal Revenue Code: (x) a certificate substantially in the form of <u>Exhibit 3.3–1</u> to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Internal Revenue Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Internal Revenue Code (a "*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Tax Compliance Certificate</u>*"); and (y) duly completed and executed originals of IRS Form W–8BEN–E (or W–8BEN as applicable); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) to the extent a Foreign Lender is not the beneficial owner, duly completed and executed originals of IRS Form W–8IMY, accompanied by IRS Form W–8ECI, IRS Form W–8BEN–E (or W–8BEN as applicable), a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit 3.3–2</u> or <u>Exhibit 3.3–</u> <u>3</u>, IRS Form W–9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u>, <u>that</u>, if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit 3.3–4</u> on behalf of each such direct and indirect partner;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), duly executed originals of any other form prescribed by Applicable Laws as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Laws to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if a payment made to a Lender under any Credit Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by Applicable Laws (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this <u>clause (f)(ii)(D</u>), "*<u>FATCA</u>*" shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that, if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Treatment of Certain Refunds</u>. Unless required by Applicable Laws, at no time shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a Lender, or have any obligation to pay to any Lender, any refund of Taxes withheld or deducted from funds paid for the account of such Lender. If any indemnified party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this <u>Section</u> <u>3.3</u> (including by the payment of additional amounts pursuant to this <u>Section</u> <u>3.3</u>), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this <u>Section</u> <u>3.3</u> with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of the indemnified party, shall repay to such indemnified party the amount paid over pursuant to this <u>clause (g</u>) (*plus* any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this <u>clause (g</u>), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this <u>clause (g</u>) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification, and giving rise to such refund, had not been deducted, withheld or otherwise imposed, and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Survival</u>. Each party's obligations under this <u>Section</u> <u>3.3</u> shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Credit Document.

Section 3.4 <u>Mitigation Obligations; Designation of a Different Lending Office</u>. If any Lender requests compensation under <u>Section</u> <u>3.2</u>, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>3.3</u>, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment: (i) would eliminate or reduce amounts payable pursuant to <u>Section</u> <u>3.2</u> or <u>Section</u> <u>3.3</u>, as the case may be, in the future; and (ii) would *not* subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

**Article 4** 

**<u>GUARANTY</u>**

Section 4.1 <u>The Guaranty</u>. Each of the Guarantors hereby jointly and severally guarantees to the Administrative Agent, the Lenders, the Qualifying Swap Providers, the Qualifying Treasury Management Banks and the other holders of the Obligations as hereinafter provided, as primary obligor and not as surety, the prompt payment of the Obligations (the "*<u>Guaranteed Obligations</u>*") in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise) strictly in accordance with the terms thereof. The Guarantors hereby further agree that, if any of the Obligations are *not* Paid in Full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise), the Guarantors will, jointly and severally, promptly pay the same, without any demand or notice whatsoever, and that, in the case of any extension of time of payment or renewal of any of the Obligations, the same will be promptly Paid in Full when due (whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise) in accordance with the terms of such extension or renewal.

Notwithstanding any provision to the contrary contained herein, in any other of the Credit Documents, Swap Agreements, Treasury Management Agreements or other documents relating to the Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the obligations of each Guarantor under this Agreement and the other Credit Documents shall be limited to an aggregate amount equal to the largest amount that would *not* render such obligations subject to avoidance under the Debtor Relief Laws or any comparable provisions of any applicable state law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Guaranteed Obligations of a Guarantor shall *exclude* any Excluded Swap Obligations with respect to such Guarantor.

------

Section 4.2 <u>Obligations Unconditional</u>. The obligations of the Guarantors under <u>Section</u> <u>4.1</u> are joint and several, absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of any of the Credit Documents, Swap Agreements or Treasury Management Agreements, or any other agreement or instrument referred to therein, or any substitution, release, impairment or exchange of any other guarantee of or security for any of the Obligations, and, to the fullest extent permitted by Applicable Laws, irrespective of any law or regulation or other circumstance whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this <u>Section</u> <u>4.2</u> that the obligations of the Guarantors hereunder shall be absolute and unconditional under any and all circumstances. Each Guarantor agrees that such Guarantor shall have no right of subrogation, indemnity, reimbursement or contribution against the Borrower or any other Guarantor for amounts paid under this <u>Article 4</u> until such time as the Obligations have been Paid in Full. Without limiting the generality of the foregoing, it is agreed that, to the fullest extent permitted by Applicable Law, the occurrence of any one or more of the following shall not alter or impair the liability of any Guarantor hereunder, which shall remain absolute and unconditional as described above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at any time or from time to time, without notice to any Guarantor, the time for any performance of or compliance with any of the Obligations shall be extended, or such performance or compliance shall be waived;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any of the acts mentioned in any of the provisions of any of the Credit Documents, any Secured Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, or any Secured Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand, or any other agreement or instrument referred to in the Credit Documents, such Secured Swap Agreements or such Secured Treasury Management Agreements shall be done or omitted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the maturity of any of the Obligations shall be accelerated, or any of the Obligations shall be modified, supplemented or amended in any respect, or any right under any of the Credit Documents, any Secured Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, or any Secured Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand, or any other agreement or instrument referred to in the Credit Documents, such Secured Swap Agreements or such Secured Treasury Management Agreements shall be waived or any other guarantee of any of the Obligations or any security therefor shall be released, impaired or exchanged in whole or in part or otherwise dealt with;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Lien granted to, or in favor of, the Administrative Agent or any Lender or Lenders as security for any of the Obligations shall fail to attach or be perfected; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any of the Obligations shall be determined to be void or voidable (including, without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to the claims of any Person (including, without limitation, any creditor of any Guarantor).

With respect to its obligations hereunder, each Guarantor hereby expressly waives diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that the Administrative Agent or any Lender exhaust any right, power or remedy or proceed against any Person under any of the Credit Documents, any Secured Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, or any Secured Treasury Management Agreement between any Credit Party, any Subsidiary

------

or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand, or any other agreement or instrument referred to in the Credit Documents, such Secured Swap Agreements or such Secured Treasury Management Agreements, or against any other Person under any other guarantee of, or security for, any of the Obligations.

Section 4.3 <u>Reinstatement</u>. The obligations of the Guarantors under this <u>Article 4</u> shall be automatically reinstated if, and to the extent that, for any reason, any payment by, or on behalf of, any Person in respect of the Obligations is rescinded or must be otherwise restored by any holder of any of the Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and each Guarantor agrees that it will indemnify the Administrative Agent and each Lender on demand for all reasonable costs and expenses (including, without limitation, the fees, charges and disbursements of counsel) incurred by the Administrative Agent or such Lender in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.

Section 4.4 <u>Certain Additional Waivers</u>. Each Guarantor agrees that such Guarantor shall have no right of recourse to security for the Obligations, except through the exercise of rights of subrogation pursuant to <u>Section</u> <u>4.2</u> and through the exercise of rights of contribution pursuant to <u>Section</u> <u>4.6</u>.

Section 4.5 <u>Remedies</u>. The Guarantors agree that, to the fullest extent permitted by Applicable Law, as between the Guarantors, on the one hand, and the Administrative Agent and the Lenders, on the other hand, the Obligations may be declared to be forthwith due and payable as provided in <u>Section</u> <u>9.2</u> (and shall be deemed to have become automatically due and payable in the circumstances provided in said <u>Section</u> <u>9.2</u>) for purposes of <u>Section</u> <u>4.1</u> notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Obligations from becoming automatically due and payable) as against any other Person and that, in the event of such declaration (or the Obligations being deemed to have become automatically due and payable), the Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by the Guarantors for purposes of <u>Section</u> <u>4.1</u>. The Guarantors acknowledge and agree that their obligations hereunder are secured in accordance with the terms of the Collateral Documents and that the Lenders may exercise their remedies thereunder in accordance with the terms thereof.

Section 4.6 <u>Rights of Contribution</u>. The Guarantors agree among themselves that, in connection with payments made hereunder, each Guarantor shall have contribution rights against the other Guarantors as permitted under Applicable Laws. Such contribution rights shall be subordinate and subject in right of payment to the obligations of such Guarantors under the Credit Documents and no Guarantor shall exercise such rights of contribution until all Obligations have been Paid in Full.

Section 4.7 <u>Guarantee of Payment; Continuing Guarantee</u>. The guarantee in this <u>Article 4</u> is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to all Obligations whenever arising.

Section 4.8 <u>Keepwell</u>. Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Specified Credit Party to honor all of such Specified Credit Party's obligations under the Guaranty and the Collateral Documents in respect of Swap Obligations (<u>provided</u>, <u>that</u>, each Qualified ECP Guarantor shall only be liable under this <u>Section</u> <u>4.8</u> for the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor's obligations and undertakings under this <u>Article 4</u>, voidable under applicable Debtor Relief Laws, and not

------

for any greater amount). The obligations and undertakings of each Qualified ECP Guarantor under this <u>Section</u> <u>4.8</u> shall remain in full force and effect until the Guaranteed Obligations have been indefeasibly paid and performed in full and the commitments relating thereto have expired or terminated, or, with respect to any Guarantor, if earlier, such Guarantor is released from its Guaranteed Obligations in accordance with <u>Section</u> <u>10.10(a</u>). Each Qualified ECP Guarantor intends that this <u>Section</u> <u>4.8</u> constitute, and this <u>Section</u> <u>4.8</u> shall be deemed to constitute, a "keepwell, support, or other agreement" for the benefit of each Specified Credit Party for all purposes of section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

**Article 5** 

**<u>CONDITIONS PRECEDENT</u>**

Section 5.1 <u>Conditions Precedent to Initial Credit Extensions</u>. The obligation of each Lender to make a Credit Extension on the Closing Date is subject to the satisfaction of the following conditions on or before the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Executed Credit Documents</u>. Receipt by the Administrative Agent of executed counterparts of this Agreement and the other Credit Documents, in each case, in form and substance reasonably satisfactory to the Administrative Agent and the Lenders and duly executed by the appropriate parties thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organizational Documents</u>. Receipt by the Administrative Agent of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Charter Documents</u>. Copies of articles of incorporation, certificate of organization or formation, or other like document for each of the Credit Parties certified as of a recent date by the appropriate Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Organizational Documents Certificate</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Copies of bylaws, operating agreement, partnership agreement or like document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) copies of resolutions approving the transactions contemplated in connection with the financing and authorizing execution and delivery of the Credit Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) incumbency certificates, for each of the Credit Parties, in each case, certified by an Authorized Officer in form and substance reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Good Standing Certificate</u>. Copies of certificates of good standing, existence or the like of a recent date for each of the Credit Parties from the appropriate Governmental Authority of its jurisdiction of formation or organization.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Closing Certificate</u>. Receipt by the Administrative Agent of a certificate from an Authorized Officer of the Borrower, in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders, confirming, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all consents, approvals, authorizations, registrations, or filings required to be made or obtained by the Borrower and the other Credit Parties, if any, in connection with this Agreement and the other Credit Documents and the transactions contemplated herein and therein have been obtained and are in full force and effect, and all waiting periods with respect thereto shall have expired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no investigation or inquiry by any Governmental Authority regarding this Agreement and the other Credit Documents and the transactions contemplated herein and therein is ongoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) since the date of the most-recent annual audited financial statements for the Borrower, there has been no event or circumstance which could be reasonably expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the most-recent annual audited financial statements were prepared in accordance with GAAP or SAP (as applicable) consistently applied, except as noted therein, and fairly present, in all material respects, the financial condition and results from operations of the Credit Parties, Subsidiaries and Regulated Entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Borrower, individually, and the Credit Parties, Subsidiaries and other Regulated Entities, taken as a whole, are Solvent after giving effect to the transactions contemplated hereby and the incurrence of Indebtedness related thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the conditions set forth in <u>Section</u> <u>5.2(c</u>) and <u>Section</u> <u>5.2(d</u>) have been satisfied as of the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) immediately *after* giving effect to any Credit Extensions to occur on the Closing Date, the Consolidated Leverage Ratio, determined on a Pro Forma Basis (except measured for the most recent Trailing Period in respect of which financial statements of the Credit Parties, Subsidiaries and other Regulated Entities approved by the Administrative Agent are available), is *not greater than* 1.75 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Opinions of Counsel</u>. Receipt by the Administrative Agent of customary opinions of counsel for each of the Credit Parties, including, among other things, opinions regarding the due authorization, execution and delivery of the Credit Documents and the enforceability thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Personal Property Collateral</u>. Receipt by the Collateral Agent of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>UCC Financing Statements</u>. Such UCC financing statements necessary or appropriate to perfect the security interests in the personal property collateral, as determined by the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Intellectual Property Filings</u>. Such patent, trademark and copyright notices, filings and recordations necessary or appropriate to perfect the security interests in intellectual property and intellectual property rights, as determined by the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Pledged Equity Interests</u>. Original certificates evidencing any certificated Equity Interests pledged as collateral, together with undated stock transfer powers executed in blank.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Evidence of Insurance</u>. Certificates of insurance for casualty, liability and any other insurance required by the Credit Documents, identifying the Collateral Agent as lender's loss payee with respect to the casualty insurance and additional insured with respect to the liability insurance, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Financial Statements</u>. Receipt and satisfactory review by the Administrative Agent of copies of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the internally-prepared quarterly unaudited consolidated and consolidating financial statements of the Credit Parties, Subsidiaries and other Regulated Entities for (A) the Fiscal Quarter ending June 30, 2024, and (B) to the extent available prior to the Closing Date, the Fiscal Quarter ending September 30, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the audited consolidated and unaudited consolidating financial statements for the Credit Parties, Subsidiaries and other Regulated Entities for the Fiscal Year ending December 31, 2023 (the "*<u>Annual Financial Statements</u>*"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such other financial information in respect of the financial condition, results of operations and cash flows of the Credit Parties, Subsidiaries and other Regulated Entities as the Administrative Agent shall have reasonably requested prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Funding Notice; Funds Disbursement Instructions</u>. The Administrative Agent shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a duly executed Funding Notice with respect to the Credit Extension to occur on the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) duly executed disbursement instructions (with wiring instructions and account information) for all disbursements to be made on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Florida Taxes</u>. The Administrative Agent shall have received either: (i) execution and delivery affidavits evidencing execution and delivery of this Agreement and the Notes outside of the State of Florida; or (ii) evidence that all applicable Florida stamp tax fees have been paid or will be paid contemporaneously with closing of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Refinancing of Existing Indebtedness</u>. Receipt by the Administrative Agent of evidence of the payment in full of existing Indebtedness (other than Indebtedness permitted to remain outstanding after the Closing Date pursuant to <u>Section</u> <u>8.1</u>), and any releases, terminations or other documents reasonably required by the Administrative Agent to evidence the payoff of such Indebtedness and release or termination of liens related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Fees and Expenses</u>. The Administrative Agent shall have confirmation that all reasonable out-of-pocket fees and expenses (and all filing and recording fees and taxes) required to be paid on or before the Closing Date have been paid, including the reasonable out-of-pocket fees and expenses of counsel for the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Patriot Act; Anti-Money Laundering Laws</u>. The provision by the Credit Parties of all documentation and other information that the Administrative Agent or any Lender requests in order to comply with its ongoing obligations under applicable "know your customer" and anti- money laundering rules and regulations, including the Patriot Act, including, without limitation, certification regarding beneficial ownership of legal entity customers (each, a "*<u>Beneficial</u> <u>Ownership Certification</u>*").

------

For purposes of determining compliance with the conditions specified in this <u>Section</u> <u>5.1</u>, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by, or acceptable or satisfactory to, a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

The funding of the initial Loans hereunder on the Closing Date shall evidence the satisfaction of the foregoing conditions.

Section 5.2 <u>Conditions to Each Credit Extension</u>. The obligation of each Lender to fund its respective Commitment Percentage of any Credit Extension on any Credit Date, including, without limitation, the Closing Date, are subject to the satisfaction, or waiver in accordance with <u>Section</u> <u>11.4</u>, of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Administrative Agent shall have received a fully executed and delivered Funding Notice, together with the documentation and certifications required therein with respect to each Credit Extension;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) immediately after making the Credit Extension requested on such Credit Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Aggregate Revolving Credit Exposure shall *not exceed* the Aggregate Revolving Commitment Amount; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the aggregate outstanding principal balance of any Class of Term Loans shall *not exceed* the aggregate amount of the Commitments of the Lenders of such Class that were in effect on the date(s) that such Commitments were established (as such Commitments were subsequently reduced pursuant to <u>Section</u> <u>2.11(b</u>), as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as of such Credit Date, the representations and warranties contained herein and in the other Credit Documents shall be true and correct in all material respects (except to the extent that any such representations and warranties are qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) on and as of that Credit Date, to the same extent as though made on and as of that date, except, to the extent such representations and warranties specifically relate to an earlier date, in which case, such representations and warranties shall have been true and correct in all material respects (except to the extent that any such representations and warranties are qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) on and as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) as of such Credit Date, no event shall have occurred and be continuing, or would result from the consummation of the applicable Credit Extension, that would constitute an Event of Default or a Default; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *solely* in the case of a Credit Extension consisting of an advance under the Delayed Draw Term Loan, receipt by the Administrative Agent of a certificate, duly executed by an Authorized Officer of the Borrower, certifying, on behalf of the Borrower and each of the other Credit Parties, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) both immediately *before* and immediately *after* giving effect to such Credit Extension, the Credit Parties shall be in compliance, on a Pro Forma Basis, with each of the Financial Covenants; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately *after* giving effect to such Credit Extension, the Consolidated Leverage Ratio, determined on a Pro Forma Basis, shall be *less than* 1.75 to 1.0;

in each case of the foregoing <u>clauses (e)(i</u>) and (<u>e)(ii</u>), as supported by reasonably detailed calculations attached to such certificate.

**Article 6** 

**<u>REPRESENTATIONS AND WARRANTIES</u>**

In order to induce the Agents and the Lenders to enter into this Agreement and to make each Credit Extension to be made thereby, the Borrower and each other Credit Party represents and warrants to the Administrative Agent and each Lender as follows:

Section 6.1 <u>Organization; Requisite Power and Authority; Qualification</u>. Each Credit Party, each Subsidiary and each other Regulated Entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation or formation (as the case may be) as identified in <u>Schedule 6.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has all requisite power and authority to own and operate its respective Properties, to carry on its business as now conducted and as proposed to be conducted, to enter into the Credit Documents to which it is a party and to carry out the transactions contemplated thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is qualified to do business and in good standing in every jurisdiction where necessary to carry out its business and operations, except in jurisdictions where the failure to be so qualified or in good standing has *not* had, and could *not* be reasonably expected to have, a Material Adverse Effect.

Section 6.2 <u>Equity Interests, Ownership and Control</u>. <u>Schedule 6.2</u> correctly sets forth the ownership interest(s) or attorney-in-fact relationship(s), as applicable, of each Credit Party in or with (as applicable) each other Credit Party, Subsidiary and other Regulated Entity, together with the ownership interest(s) of each direct holder of outstanding Equity Interests in the Borrower, in each case of the foregoing, as of the Closing Date. The Equity Interests in each Credit Party, each Subsidiary and each other Regulated Entity have been duly authorized and validly issued and are fully paid and non-assessable. Except as set forth on <u>Schedule 6.2</u>, as of the Closing Date, there is no existing option, warrant, call, right, commitment, buy-sell, voting trust or other shareholder agreement or other agreement to which any Subsidiary is a party requiring, and there is no membership interest or other Equity Interests of any Subsidiary outstanding that, upon conversion or exchange, would require, the issuance by any Subsidiary of any additional membership interests or other Equity Interests of any Subsidiary or other Securities convertible into, exchangeable for or evidencing the right to subscribe for or purchase, a membership interest or other Equity Interests of any Subsidiary.

Section 6.3 <u>Due Authorization</u>. The execution, delivery and performance of the Credit Documents have been duly authorized by all necessary action on the part of each Credit Party, each Subsidiary and each other Regulated Entity that is a party thereto.

------

Section 6.4 <u>No Conflict</u>. The execution, delivery and performance by Credit Parties, the Subsidiaries and the other Regulated Entities of the Credit Documents to which they are parties, and the consummation of the transactions contemplated by the Credit Documents, do *not* and will *not*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) violate, in any material respect, any provision of any Applicable Laws relating to any Credit Party, any Subsidiary or any other Regulated Entity, any of the Organizational Documents of any such Person, or any order, judgment or decree of any court or other agency of government binding on any such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) except as could *not* reasonably be expected to have a Material Adverse Effect, conflict with, result in a breach of or constitute (with due notice or lapse of time or both), a default under any other Contractual Obligations of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) result in, or require the creation or imposition of, any Lien upon any of the Property of any Credit Party, any Subsidiary or any other Regulated Entity (other than any Liens created under any of the Credit Documents in favor of the Collateral Agent, for the benefit of the holders of the Obligations), whether now owned or hereafter acquired; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) require any approval of stockholders, members or partners or any approval or consent of any Person under any Contractual Obligation of any Credit Party, any Subsidiary or any other Regulated Entity.

Section 6.5 <u>Governmental Consents</u>. The execution, delivery and performance by the Credit Parties, the Subsidiaries and the other Regulated Entities of the Credit Documents to which they are a party, and the consummation of the transactions contemplated by the Credit Documents, do *not* and will *not* require, as a condition to the effectiveness thereof, any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority, except for filings and recordings with respect to the Collateral to be made, or otherwise delivered to the Collateral Agent for filing and/or recordation, (a) as of the Closing Date, with respect to each Credit Document executed on the Closing Date, and (b) as of such later date of execution, with respect to each Credit Document executed after the Closing Date, and other filings, recordings or consents which have been obtained or made, as applicable.

Section 6.6 <u>Binding Obligation</u>. Each Credit Document has been duly executed and delivered by each Credit Party, each Subsidiary and each other Regulated Entity that is a party thereto, and is the legally valid and binding obligation of each such Person, enforceable against each such Person in accordance with its respective terms, except as may be limited by Debtor Relief Laws or by equitable principles relating to enforceability.

Section 6.7 <u>Financial Statements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The audited consolidated balance sheet, and related consolidated statements of income or operations and cash flows, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (to the extent required to be delivered in accordance with such Section) the unaudited combined balance sheet, and related combined statements of income or operations and cash flows, of the applicable Qualifying Reciprocal Entities, in each case of the foregoing, for the most recent Fiscal Year ended with respect to which the Borrower has delivered financial statements in accordance with <u>Section</u> <u>7.1(b</u>), and the summaries/schedules prepared by management of the Borrower related thereto, including the notes thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) were prepared in accordance with GAAP or SAP (as applicable) consistently applied throughout the period covered thereby, except as otherwise expressly noted therein;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) fairly present, in all material respects, the financial condition of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) on a consolidated basis or of the applicable Qualifying Reciprocal Entities on a combined basis (as the case may be) as of the date thereof and their respective results of operations and cash flows for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) show all material indebtedness and other liabilities, direct or contingent, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) or of the applicable Qualifying Reciprocal Entities (as the case may be) as of the date of such financial statements, including liabilities for taxes, material commitments and Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The unaudited consolidated balance sheet, and related consolidated statements of income or operations and cash flows, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (to the extent required to be delivered in accordance with such Section) the unaudited combined balance sheet, and related combined statements of income or operations and cash flows, of the applicable Qualifying Reciprocal Entities, in each case of the foregoing, for the most recent Fiscal Quarter ended with respect to which the Borrower has delivered financial statements in accordance with <u>Section</u> <u>7.1(a</u>), and the summaries/schedules prepared by management of the Borrower related thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) were prepared in accordance with GAAP or SAP (as applicable) consistently applied throughout the period covered thereby, except as otherwise expressly noted therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) fairly present, in all material respects, the financial condition of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) on a consolidated basis or of the applicable Qualifying Reciprocal Entities on a combined basis (as the case may be) as of the date thereof and their respective results of operations and cash flows for the period covered thereby, subject, in the case of each of the foregoing <u>clauses (b)(i</u>) and (<u>b)(ii</u>), to the absence of footnotes and to normal year-end audit adjustments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) show all material indebtedness and other liabilities, direct or contingent, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) or of the applicable Qualifying Reciprocal Entities (as the case may be) as of the date of such financial statements, including liabilities for taxes, material commitments and Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The forecasted consolidated balance sheet, and related forecasted consolidated statements of income or operations and cash flows, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (to the extent required to be delivered in accordance with such Section) the forecasted combined balance sheet, and related forecasted combined statements of income or operations and cash flows, of the applicable Qualifying Reciprocal Entities, in each case of the foregoing, most recently delivered by the Borrower in accordance with <u>Section</u> <u>7.1(d</u>) were prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair in light of the conditions existing at the time of delivery of such forecasted financial statements, and represented, at the time of delivery, the Borrower's good faith estimate of the future financial condition and performance of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) or of the applicable Qualifying Reciprocal Entities (as the case may be) based upon assumptions believed by the Borrower to be reasonable at the time.

------

Section 6.8 <u>No Material Adverse Effect; No Default or Event of Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Material Adverse Effect</u>. Since December 31, 2023, no event, circumstance or change has occurred that has caused or evidences, either in any case or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Default or Event of Default</u>. No Default or Event of Default has occurred and is continuing.

Section 6.9 <u>Tax Matters</u>. Each Credit Party, each Subsidiary, and each other Regulated Entity has (a) filed all federal and state tax returns required to be filed, and has paid all federal and state taxes levied or imposed upon them or their respective Property, income, businesses and franchises that are due and payable, and (b) filed all other material tax returns and reports required to be filed, and have paid all other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their respective Property, income, businesses and franchises otherwise due and payable, except: (i) those being actively contested in good faith and by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP; or (ii) *solely* with respect to the foregoing <u>clause (b</u>), to the extent that the failure to do so could *not* reasonably be expected to result, in the aggregate when taken together, in a Material Adverse Effect.

Section 6.10 <u>Properties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Title</u>. Each Credit Party, each Subsidiary and each other Regulated Entity has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) good, sufficient and legal title to (in the case of fee-owned Real Estate Assets),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) valid leasehold interests in (in the case of leasehold interests in real or personal Property), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) good title to (in the case of all other personal Property),

all of their respective Properties reflected in their financial statements and other information referred to in <u>Section</u> <u>6.7</u> and in the most recent financial statements delivered pursuant to <u>Section</u> <u>7.1</u>, in each case, except for assets disposed of since the date of such financial statements as permitted under <u>Section</u> <u>8.10</u>. All such Properties are free and clear of Liens other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Real Estate</u>. As of the Closing Date, <u>Schedule 6.10(b</u>) contains a true, accurate and complete list of all Real Estate Assets of the Credit Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Intellectual Property</u>. Each Credit Party, each Subsidiary and each other Regulated Entity owns, or is validly licensed to use, all Intellectual Property that is necessary for the present conduct of its business, free and clear of Liens (other than Permitted Liens), without conflict with the rights of any other Person, unless the failure to own or benefit from such valid license could *not*, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. To the knowledge of any Authorized Officer of any Credit Party, no Credit Party, Subsidiary or other Regulated Entity is infringing, misappropriating, diluting, or otherwise violating the Intellectual Property rights of any other Person unless such infringement, misappropriation, dilution or violation could *not*, individually or in the aggregate when taken together, reasonably be expected to have a Material Adverse Effect.

------

Section 6.11 <u>Environmental Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Credit Party, nor any of its Subsidiaries, any other Regulated Entity nor any of their respective current Facilities (*solely* during, and with respect to, such Person's ownership thereof) or operations, and to their knowledge, no former Facilities (*solely* during, and with respect to, any Credit Party's, its Subsidiary's or any other Regulated Entity's ownership thereof), are subject to any outstanding order, consent decree or settlement agreement with any Person relating to any Environmental Law, any Environmental Claim, or any Hazardous Materials Activity that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Credit Party, nor any of its Subsidiaries nor any other Regulated Entity, has received any letter or request for information under Section 104 of the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9604) or any comparable state law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there are and, to the knowledge of any Authorized Officer of any Credit Party, have been, no Hazardous Materials Activities that could reasonably be expected to form the basis of an Environmental Claim against any Credit Party, any Subsidiary or any other Regulated Entity that, individually or in the aggregate when taken together, could reasonably be expected to have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) no Credit Party, Subsidiary or other Regulated Entity has filed any notice under any Environmental Law indicating past or present treatment of Hazardous Materials at any Facility (*solely* during, and with respect to, such Credit Party's, Subsidiary's or other Regulated Entity's ownership thereof), and no Credit Party's, Subsidiary's or other Regulated Entity's respective operations involve the generation, transportation, treatment, storage or disposal of hazardous waste, as defined under 40 C.F.R. Parts 260–270 or any equivalent state rule defining hazardous waste, except in compliance with all applicable Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Compliance with all current requirements pursuant to or under Environmental Laws could *not* be reasonably expected to have, individually or in the aggregate when taken together, a Material Adverse Effect.

Section 6.12 <u>No Defaults</u>. No Credit Party, Subsidiary or other Regulated Entity is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any of its Contractual Obligations, except, in each case, where the consequences, direct or indirect, of such default or defaults, if any, could *not* reasonably be expected to have a Material Adverse Effect.

Section 6.13 <u>No Litigation or other Adverse Proceedings</u>. There are no Adverse Proceedings that: (a) purport to affect or pertain to this Agreement or any other Credit Document, or any of the transactions contemplated hereby; or (b) could reasonably be expected to have a Material Adverse Effect. No Credit Party, Subsidiary or other Regulated Entity is subject to, or is in default with respect to, any final judgments, writs, injunctions, decrees, rules or regulations of any Governmental Authority that, individually or in the aggregate when taken together, could reasonably be expected to have a Material Adverse Effect.

Section 6.14 <u>Information Regarding Credit Parties, Subsidiaries and Other Regulated Entities</u>. Set forth on <u>Schedule 6.14</u> is the jurisdiction of incorporation or formation (as the case may be), the exact legal name (and for the prior five (5) years or since the date of its incorporation or formation (as the case may be) has been) and the true and correct U.S. taxpayer identification number (or foreign equivalent, if any) of each Credit Party, each Subsidiary and each other Regulated Entity as of the Closing Date, together with an indication of whether such Person is a Credit Party, a Qualifying Reciprocal Entity, a Regulated Subsidiary, or a Subsidiary (other than a Regulated Subsidiary or a Credit Party).

------

Section 6.15 <u>Governmental Regulation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Credit Party, Subsidiary or other Regulated Entity is subject to regulation under the Investment Company Act of 1940. No Credit Party, Subsidiary or other Regulated Entity is an "investment company" or a company "controlled" by a "registered investment company" or a "principal underwriter" of a "registered investment company" as such terms are defined in the Investment Company

Act of 1940.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Credit Party, Subsidiary or other Regulated Entity is an "enemy" or an "ally of the enemy" within the meaning of Section 2 of the Trading with the Enemy Act of the United States of America (50 U.S.C. App. §§ 1 *et seq*.), as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the knowledge of any Authorized Officer of any Credit Party, no Credit Party, Subsidiary or other Regulated Entity is in violation of: (A) the Trading with the Enemy Act, as amended; (B) any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto; or (C) the Patriot Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No Credit Party, Subsidiary or other Regulated Entity: (A) is a blocked person described in Section 1 of the Anti-Terrorism Order; or (B) to the knowledge of any Authorized Officer of any Credit Party, engages in any dealings or transactions, or is otherwise associated, with any such blocked person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Credit Party, each Subsidiary and each other Regulated Entity, and each of their respective directors and officers and, to the knowledge of any Authorized Officer of any Credit Party, each of their respective employees and agents, are in compliance with applicable Sanctions and are *not* engaged in any activity that would reasonably be expected to result in any Credit Party, any Subsidiary or any other Regulated Entity being designated as a Sanctioned Person. No Credit Party, Subsidiary or other Regulated Entity nor, to the knowledge of any Authorized Officer of any Credit Party, any of their respective Affiliates are in violation of any of the country or list based economic and trade sanctions administered and enforced by OFAC that are described or referenced at http://www.ustreas.gov/offices/enforcement/ofac/ or as otherwise published from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Credit Party, Subsidiary or other Regulated Entity, nor, to the knowledge of any Authorized Officer of any Credit Party, any of their respective directors, officers, employees or Affiliates: (A) is a Sanctioned Person; (B) has any of its Property located in a Sanctioned Country (unless approved by the Lenders); or (C) derives any of its operating income from investments in, or transactions with Sanctioned Persons (unless approved by the Lenders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The proceeds of any Credit Extension or other transaction contemplated by this Agreement or any other Credit Document have *not* been used: (A) in violation of any Sanctions; (B) to fund any operations in, finance any investments or activities in or make any payments to, a Sanctioned Person or a Sanctioned Country; or (C) in any other manner that would result in a violation of Sanctions by any Person (including the Administrative Agent, the Collateral Agent, the Lenders or any other Person participating in the Credit Extensions, whether as an underwriter, advisor, investor or otherwise).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Credit Party, each Subsidiary and each other Regulated Entity, and, to the knowledge of any Authorized Officer of any Credit Party, each of their respective directors, officers, employees and Affiliates, is in material compliance with Anti-Corruption Laws. No Credit Party, Subsidiary or other Regulated Entity has made a payment, offering, or promise to pay, or authorized the payment of, money or anything of value: (i) in order to assist in obtaining or retaining business for or with, or directing business to, any foreign official, foreign political party, party official or candidate for foreign political office; (ii) to a foreign official, foreign political party or party official or any candidate for foreign political office; and (iii) with the intent to induce the recipient to misuse his or her official position to direct business wrongfully to any such member or to any other Person, in violation of any Anti-Corruption Law*.* No part of the proceeds of any Credit Extension or other transaction contemplated by this Agreement or any other Credit Document will violate Anti-Corruption Laws*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent applicable, each Credit Party, each Subsidiary and each other Regulated Entity is in compliance with Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001) (as amended from time to time, the "*<u>Patriot Act</u>*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No Credit Party, Subsidiary or other Regulated Entity is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any Margin Stock. No part of the proceeds of any Credit Extension made to any Credit Party will be used:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to purchase or carry any such Margin Stock, or to extend credit to others for the purpose of purchasing or carrying any such Margin Stock or for any purpose that violates, or is inconsistent with, the provisions of Regulation T, Regulation U or Regulation X of the Federal Reserve Board, as in effect from time to time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to finance or refinance any: (A) commercial paper issued by any Credit Party, Subsidiary or other Regulated Entity; or (B) any other Indebtedness, except for Indebtedness that a Credit Party incurred for general corporate or working capital purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No Credit Party, Subsidiary or other Regulated Entity is an Affected Financial Institution.

Section 6.16 <u>Employee Matters</u>. No Credit Party, Subsidiary or other Regulated Entity is engaged in any unfair labor practice that could reasonably be expected to have a Material Adverse Effect. There is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no unfair labor practice complaint pending against any Credit Party, any Subsidiary or any other Regulated Entity, or to the knowledge of any Authorized Officer of any Credit Party, threatened in writing against any of them before the National Labor Relations Board, and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement that is so pending against any Credit Party, any Subsidiary or any other Regulated Entity or, to the knowledge of any Authorized Officer of any Credit Party, threatened in writing against any of them,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no strike or work stoppage in existence or, to the knowledge of any Authorized Officer of any Credit Party, threatened in writing that involves any Credit Party, any Subsidiary or any other Regulated Entity, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to the knowledge of any Authorized Officer of any Credit Party, no union representation question existing with respect to the employees of any Credit Party, any Subsidiary or any other Regulated Entity and, to the knowledge of any Authorized Officer of any Credit Party, no union organization activity that is taking place, except (with respect to any matter specified in <u>clause (a</u>) through (<u>c</u>) above, either individually or in the aggregate when taken together) such as could *not* reasonably be expected to have a Material Adverse Effect.

------

Section 6.17 <u>Pension Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as could *not* reasonably be expected to have a Material Adverse Effect, each Credit Party, each Subsidiary and each other Regulated Entity is in compliance with all applicable provisions and requirements of ERISA and the Internal Revenue Code and the regulations and published interpretations thereunder with respect to its Pension Plan, and have performed all their obligations under each Pension Plan in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Pension Plan that is intended to qualify under Section 401(a) of the Internal Revenue Code has received a favorable determination letter or is the subject of a favorable opinion letter from the Internal Revenue Service indicating that such Pension Plan is so qualified and, to the knowledge of any Authorized Officer of any Credit Party, nothing has occurred subsequent to the issuance of such determination letter that would cause such Pension Plan to lose its qualified status, except where such event could *not* reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as could *not* reasonably be expected to have a Material Adverse Effect, no liability to the PBGC (other than required premium payments), the Internal Revenue Service, any Pension Plan (other than for routine claims and required funding obligations in the ordinary course) or any trust established under Title IV of ERISA has been incurred by any Credit Party, any Subsidiary, any other Regulated Entity, or any of the ERISA Affiliates of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as would *not* reasonably be expected to result in liability to the Credit Parties, Subsidiaries and other Regulated Entities in *excess* of the Threshold Amount, no ERISA Event has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except to the extent required under Section 4980B of the Internal Revenue Code and Section 601 *et seq*. of ERISA or similar state laws, and except as could *not* reasonably be expected to have a Material Adverse Effect, no Pension Plan provides health or welfare benefits (through the purchase of insurance or otherwise) for any retired or former employee of any Credit Party, any Subsidiary or any other Regulated Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) As of the Closing Date, no Credit Party, or any Subsidiary or any other Regulated Entity, is a Benefit Plan.

Section 6.18 <u>Solvency</u>. The Borrower individually is, and the Credit Parties, Subsidiaries and other Regulated Entities taken as a whole are, and, upon the incurrence of any Credit Extension on any date on which this representation and warranty is made (including, without limitation, the Closing Date), each will be, Solvent.

Section 6.19 <u>Compliance with Laws</u>. Each Credit Party, each Subsidiary and each other Regulated Entity is in compliance with: (a) the Patriot Act and OFAC rules and regulations, as provided in <u>Section</u> <u>6.15</u>; and (b) except such non-compliance with such other Applicable Laws that, individually or in the aggregate when taken together, could *not* reasonably be expected to result in a Material Adverse Effect, all other Applicable Laws. Each Credit Party, each Subsidiary and each other Regulated Entity possesses all certificates, authorities or permits issued by appropriate Governmental Authorities necessary to conduct the business now operated by them and the failure of which to have could reasonably be expected to have a Material Adverse Effect, and have *not* received any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit the failure of which to have or retain could reasonably be expected to have a Material Adverse Effect.

------

Section 6.20 <u>Disclosure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No representation or warranty of any Credit Party or any Subsidiary contained in any Credit Document to which it is a party, or in any other documents, certificates or written statements furnished to the Lenders by, or on behalf of, any Credit Party or any Subsidiary for use in connection with the transactions contemplated hereby (other than projections and pro forma financial information contained in such materials), contains any untrue statement of a material fact or omits to state a material fact (known to any Authorized Officer of a Credit Party or Subsidiary, in the case of any document *not* furnished by any of them) necessary in order to make the statements contained herein or therein *not* misleading in any material manner in light of the circumstances in which the same were made. Any projections and pro forma financial information contained in such materials are based upon good faith estimates and assumptions believed by the Credit Parties to be reasonable at the time made, it being recognized by the Administrative Agent and the Lenders that such projections as to future events are *not* to be viewed as facts and that actual results during the period or periods covered by any such projections may differ from the projected results and that such differences may be material. There are no facts known to any Credit Party (other than matters of a general economic nature) that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect and that have *not* been disclosed herein or in such other documents, certificates and statements furnished to the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the Closing Date or as of such later date on which any Beneficial Ownership Certification was delivered to the Administrative Agent or a Lender, the information included in each Beneficial Ownership Certification is true and correct in all respects.

Section 6.21 <u>Insurance</u>. The properties of the Credit Parties and Subsidiaries are insured with financially sound and licensed insurance companies, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the applicable Credit Party or Subsidiary operates. The insurance coverage of the Credit Parties and Subsidiaries as in effect on the Closing Date is outlined as to carrier, policy number, expiration date, type, amount and deductibles on <u>Schedule 6.21</u>.

Section 6.22 <u>Security Agreement</u>. The Security Agreement is effective to create in favor of the Collateral Agent, for the ratable benefit of the holders of the Obligations, a legal, valid and enforceable security interest in the Collateral identified therein, except to the extent the enforceability thereof may be limited by applicable Debtor Relief Laws affecting creditors' rights generally and by equitable principles of law (regardless of whether enforcement is sought in equity or at law), and the Security Agreement shall create a fully perfected Lien on, and security interest in, all right, title and interest of the obligors thereunder in such Collateral, in each case prior and superior in right to any other Lien (other than Permitted Liens):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to any such Collateral that is a "security" (as such term is defined in the UCC) and is evidenced by a certificate, when such Collateral is delivered to the Collateral Agent with duly executed stock powers with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any such Collateral that is a "security" (as such term is defined in the UCC) but is *not* evidenced by a certificate, when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the pledgor or when "control" (as such term is defined in the UCC) is established by the Collateral Agent over such interests in accordance with the provision of Section 8–106 of the UCC, or any successor provision; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to any such Collateral that is *not* a "security" (as such term is defined in the UCC), when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the pledgor (to the extent such security interest can be perfected by filing under the UCC).

Section 6.23 <u>Mortgages</u>. Each of the Mortgages is effective to create in favor of the Collateral Agent, for the ratable benefit of the holders of the Obligations, a legal, valid and enforceable security interest in the Real Estate Assets identified therein in conformity with Applicable Laws, except to the extent the enforceability thereof may be limited by applicable Debtor Relief Laws affecting creditors' rights generally and by equitable principles of law (regardless of whether enforcement is sought in equity or at law), and, when the Mortgages and UCC financing statements in appropriate form are duly recorded at the locations identified in the Mortgages, and recording or similar taxes, if any, are paid, the Mortgages shall constitute a legal, valid and enforceable Lien on, and security interest in, all right, title and interest of the grantors thereunder in such Real Estate Assets, in each case prior and superior in right to any other Lien (other than Permitted Liens).

Section 6.24 <u>No Casualty</u>. Neither the businesses nor the Properties of any Credit Party, any Subsidiary, or any other Regulated Entity are affected by any fire, explosion, accident, drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty (whether or not covered by insurance) that, either individually or in the aggregate when taken together, could reasonably be expected to have a Material Adverse Effect.

**Article 7** 

**<u>AFFIRMATIVE COVENANTS</u>**

Each Credit Party covenants and agrees that, until the Obligations shall have been Paid in Full, such Credit Party shall perform, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to perform, all of the covenants set forth in this <u>Article 7</u>.

Section 7.1 <u>Financial Statements and Other Reports</u>. The Borrower will deliver, or will cause to be delivered, to the Administrative Agent (for prompt further distribution by the Administrative Agent to each Lender):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Quarterly Financial Statements</u>. By *no later than* the date that is forty-five (45) consecutive calendar days after the end of each Fiscal Quarter (including, for purposes of clarity, the last Fiscal Quarter of each Fiscal Year), (i) the unaudited consolidated and consolidating balance sheet of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) as of the end of such Fiscal Quarter together with the related consolidated and consolidating statements of income or operations and cash flows of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) for such Fiscal Quarter, and for the period from the beginning of the then current Fiscal Year through the end of such Fiscal Quarter, and (ii) *solely* to the extent that the financial results and operations of any Qualifying Reciprocal Entities are *not* included or otherwise accounted for on a non-controlling interest basis in any such consolidated and/or consolidating financial statements, the unaudited combined and combining balance sheet of such Qualifying Reciprocal Entities as of the end of such Fiscal Quarter together with the related combined and combining statements of income or operations and cash flows of such Qualifying Reciprocal Entities for such Fiscal Quarter, and for the period from the beginning of the then current Fiscal Year through the end of such Fiscal Quarter, in each case of the foregoing <u>clauses (a)(i</u>) and (<u>a)(ii</u>), setting forth, in each case in comparative form, the corresponding figures for the corresponding periods of the previous Fiscal Year, all in reasonable detail and consistent, in all material respects, with the manner of presentation as of the Closing Date, together with a Financial Officer Certification with respect thereto;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Financial Statements</u>. By *no later than* the date that is one hundred twenty (120) consecutive calendar days after the end of each Fiscal Year:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) the audited consolidated and consolidating balance sheet of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) as of the end of such Fiscal Year together with the related audited consolidated and consolidating statements of income or operations and cash flows of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) for such Fiscal Year, and (B) *solely* to the extent that the financial results and operations of any Qualifying Reciprocal Entities are *not* included or otherwise accounted for on a non-controlling interest basis in any such consolidated and/or consolidating financial statements, the unaudited combined and combining balance sheet of such Qualifying Reciprocal Entities as of the end of such Fiscal Year together with the related unaudited combined and combining statements of income or operations and cash flows of such Qualifying Reciprocal Entities for such Fiscal Year, in each case of the foregoing <u>clauses (b)(i)(A</u>) and (<u>b)(i)(B</u>), setting forth, in each case in comparative form, the corresponding figures for the previous Fiscal Year, all in reasonable detail and consistent, in all material respects, with the manner of presentation as of the Closing Date, together with a Financial Officer Certification with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to such audited consolidated financial statements of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), a report thereon of PricewaterhouseCoopers LLP or other independent certified public accountants selected by the Borrower and reasonably acceptable to the Administrative Agent (it being understood and agreed that any of the other "Big Four" accounting firms, Grant Thornton, Alvarez & Marsal, RSM US LLP and BDO USA LLP are each acceptable to the Administrative Agent), which report shall be unqualified as to going concern and scope of audit (except to the extent any qualification results *solely* from a current maturity of any Indebtedness under this Agreement) and shall state that such consolidated financial statements fairly present, in all material respects, the consolidated financial position of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) as of the dates indicated, and the results of their operations and cash flows for the periods indicated, all in conformity with GAAP applied on a basis consistent with prior years (except as otherwise disclosed in such financial statements), and <u>further</u>, that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Compliance Certificate; Summaries / Schedules</u>. Together with each delivery of the financial statements pursuant to <u>clauses (a</u>) or (<u>b</u>) above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a duly completed Compliance Certificate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) summaries/schedules prepared by management of the Borrower, accompanied by a Financial Officer Certification with respect thereto, setting forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) consolidating and (if applicable) combining detail in respect of such financial statements in form and scope acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) principal and interest payments made by the Credit Parties and Subsidiaries (other than any Regulated Entities) with respect to intercompany Indebtedness owing by any Credit Party or Subsidiary (other than any Regulated Entity) to any Regulated Entity; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) intercompany Indebtedness owing by any Credit Party or Subsidiary (other than any Regulated Entity) to any Regulated Entity that is eliminated upon consolidation in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Annual Budget</u>. Within sixty (60) consecutive calendar days following the end of each Fiscal Year, forecasts prepared by management of the Borrower, in form reasonably satisfactory to the Administrative Agent and the Required Lenders, of (i) the consolidated and consolidating balance sheet of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) together with the related consolidated and consolidating statements of income or operations and cash flows of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (ii) *solely* to the extent that the forecasted financial results and operations of any Qualifying Reciprocal Entities are *not* included or otherwise accounted for on a non-controlling interest basis in any such forecasted consolidated and/or consolidating financial statements, the combined and combining balance sheet of such Qualifying Reciprocal Entities together with the related combined and combining statements of income or operations and cash flows for such Qualifying Reciprocal Entities, in each case of the foregoing <u>clauses (d)(i</u>) and (<u>d)(ii</u>), prepared on a quarterly basis for the immediately following Fiscal Year (including, for purposes of clarity, any such Fiscal Year during which any of the Revolving Commitment Termination Date, the DDTL Commitment Termination Date or any applicable Maturity Date occurs);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Statutory Accounting Principles Statement</u>. Within forty-five (45) consecutive calendar days following the end of each of the first (1<sup>st</sup>) three (3) Fiscal Quarters of each Fiscal Year, and within ninety (90) consecutive calendar days following the end of each Fiscal Year, SAP statements for each Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Information Regarding Credit Parties</u>. Each Credit Party will furnish to the Collateral Agent prior written notice of any change in such Credit Party's: (i) legal name; (ii) corporate structure; (iii) Federal Taxpayer Identification Number; or (iv) jurisdiction of incorporation, formation or organization, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Securities and Exchange Commission Filings</u>. Promptly after the same are filed, copies of all annual, regular, periodic and special reports and registration statements that the Borrower may file, or be required to file, with the SEC under Section 13 or 15(d) of the Exchange Act, <u>provided</u>, <u>that</u>, any documents required to be delivered pursuant to this <u>clause (g</u>) shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower's website, or (ii) on which such documents are posted on the Borrower's behalf on SyndTrak or other relevant website, if any to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent). Notwithstanding anything to the contrary, as to any information contained in materials furnished pursuant to this <u>clause (g</u>), the Borrower shall not be separately required to furnish such information under <u>clauses (a</u>) or (<u>b</u>) above, or pursuant to any other requirement of this Agreement or any other Credit Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Notice of Default and Material Adverse Effect</u>. Promptly (and, in any event, within two (2) Business Days) upon any Authorized Officer of any Credit Party obtaining knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) of any condition or event that constitutes a Default or an Event of Default, or that notice has been given to any Credit Party, any Subsidiary, or any other Regulated Entity with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that any Person has given any notice to any Credit Party, any Subsidiary or any other Regulated Entity, or taken any other action with respect to any event or condition set forth in <u>Section</u> <u>9.1(b</u>);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) of the occurrence of any Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) of the institution, or any Credit Party's, any Subsidiary's or any other Regulated Entity's receipt of any threat in writing of the institution, of any action, suit, investigation or proceeding against or affecting any Credit Party, any Subsidiary or any other Regulated Entity, including any such investigation or proceeding by any Insurance Regulatory Authority or other Governmental Authority (other than routine periodic inquiries, investigations or reviews), that could reasonably be expected, individually or in the aggregate when taken together, to have a Material Adverse Effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) of the receipt by any Credit Party, any Subsidiary, or any other Regulated Entity from any Insurance Regulatory Authority or other Governmental Authority of any notice of any actual or threatened suspension, limitation or revocation of, failure to renew, imposition of any restraining order, escrow or impoundment of funds in connection with, or the taking of any other materially adverse action in respect of, any license, permit, accreditation or authorization of any Credit Party, any Subsidiary or any other Regulated Entity, where such action could reasonably be expected to have a Materially Adverse Effect;

deliver to the Administrative Agent a certificate of its Authorized Officers specifying the nature and period of existence of such condition, event or change, or specifying the notice given and action taken by any such Person and the nature of such claimed Event of Default, Default, event or condition or change, and what action the Credit Parties, Subsidiaries and other Regulated Entities have taken, are and/or and propose to take with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>ERISA</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Promptly upon becoming aware of the occurrence of, or forthcoming occurrence of, any ERISA Event, a written notice specifying the nature thereof, what action(s) any Credit Party, any Subsidiary, any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, has taken, is taking and/or proposes to take with respect thereto and, when known, any action taken or threatened by the Internal Revenue Service, the Department of Labor or the PBGC with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) promptly upon reasonable request of the Administrative Agent, copies of each Schedule B (*Actuarial Information*) to the annual report (Form 5500 Series) filed by any Credit Party, any Subsidiary or any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, with respect to each Pension Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) promptly after their receipt, copies of all notices received by any Credit Party, any Subsidiary or any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, from a Multiemployer Plan sponsor concerning an ERISA Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Securities and Exchange Commission Investigations</u>. Promptly and, in any event, within five (5) Business Days after receipt thereof by any Credit Party, any Subsidiary or any other Regulated Entity thereof, copies of each notice or other correspondence received from the Securities and Exchange Commission (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or other inquiry by such agency regarding financial or other operational results of any Credit Party, any Subsidiary or any other Regulated Entity;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Asset Sales, Involuntary Dispositions and Debt Transactions</u>. Concurrently with delivery of each Compliance Certificate, notice of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the occurrence and amount of Net Cash Proceeds of any Asset Sale or Involuntary Disposition (in each case, regardless of whether the Net Cash Proceeds therefrom fall below the threshold amounts set forth in <u>Section</u> <u>2.11(c)(ii</u>) and/or have already been, or are anticipated to be, re-invested pursuant to the reinvestment provisions thereof) in *excess* of the *product of* (A) fifty percent (50.0%), *multiplied by* (B) the Threshold Amount; and 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the occurrence of any Debt Transactions and the amount of Net Cash Proceeds therefrom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Changes in Accounting or Financial Reporting Practices</u>. Promptly and, in any event, within ten (10) Business Days after implementation thereof, notice of any material change in accounting policies or financial reporting practices of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Insurance Filings</u>. Within fifteen (15) Business Days after the required filing date, copies of any annual statement or quarterly statement required to be filed with any Insurance Regulatory Authority by any Credit Party, any Subsidiary or any other Regulated Entity, in each case, in the form filed with such Insurance Regulatory Authority in conformity with the requirements thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Other Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Promptly upon their becoming available, copies of all financial statements, reports, notices and proxy statements (other than minutes of the board of directors or managers (or equivalent governing body) thereof) sent or made available generally by the Borrower to its respective security holders acting in such capacity, or by any Subsidiary or any other Regulated Entity to its respective security holders, if any, other than the Borrower, another Credit Party, another Subsidiary or another Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such other information and data with respect to the Credit Parties, Subsidiaries and other Regulated Entities as from time to time may be reasonably requested by the Administrative Agent (or by any Lender through the Administrative Agent); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) prompt written notice of any change to the information set forth in any Beneficial Ownership Certification that would result in a change to the list of beneficial owners set forth therein.

Each notice pursuant to <u>clauses (i</u>) and (<u>j</u>) above shall be accompanied by a statement of an Authorized Officer of the Borrower: (x) setting forth details of the occurrence referred to therein; and (y) stating what action(s) the Credit Parties, Subsidiaries and other Regulated Entities have taken and/or propose to take with respect thereto. Each notice pursuant to <u>clause (h</u>) above shall describe with particularity any and all provisions of this Agreement and any other Credit Document that have been breached.

Section 7.2 <u>Existence</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, at all times preserve and keep in full force and effect (a) its existence, and (b) except to the extent that failure to do so would *not* reasonably be expected to result in a Material Adverse Effect, all rights and franchises, licenses and permits material to its business, except to the extent permitted by <u>Section</u> <u>8.10</u> or not constituting an Asset Sale hereunder.

------

Section 7.3 <u>Payment of Taxes and Claims</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, pay (a) all federal, state and other material taxes imposed upon it or any of its respective Properties or in respect of any of its income, businesses or franchises, before any penalty or fine accrues thereon, and (b) all claims (including claims for labor, services, materials and supplies) for sums that have become due and payable and that by law have or may become a Lien upon any of its Properties, prior to the time when any penalty or fine shall be incurred with respect thereto; <u>provided</u>, <u>that</u>, no such tax or claim need be paid if it is being contested in good faith by appropriate proceedings promptly instituted and diligently conducted, so long as (i) adequate reserve or other appropriate provision, as shall be required in conformity with GAAP shall have been made therefor, (ii) in the case of a tax or claim which has or may become a Lien against any of the Collateral, such contest proceedings conclusively operate to stay the sale of any portion of the Collateral to satisfy such tax or claim, and (iii) the failure to make payment pending such contest could *not* reasonably be expected to result in a Material Adverse Effect. No Credit Party will, nor will it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, file, or consent to the filing of, any consolidated or combined income tax return with any Person other than the Credit Parties, Subsidiaries and other Regulated Entities.

Section 7.4 <u>Maintenance of Properties</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, maintain, or cause to be maintained, in good repair, working order and condition, ordinary wear and tear excepted, all material properties used or useful in the businesses of the Credit Parties, Subsidiaries and other Regulated Entities, and from time to time will make, or cause to be made, all appropriate repairs, renewals and replacements thereof, except where failure to do so would *not* materially adversely affect the operations of the businesses of the Credit Parties, Subsidiaries and other Regulated Entities, taken as a whole.

Section 7.5 <u>Insurance</u>. The Credit Parties will maintain, or cause to be maintained, with financially sound and licensed insurers, property insurance, such public liability insurance, third party property damage insurance with respect to liabilities, losses or damage in respect of the Properties and businesses of the Credit Parties as may customarily be carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses, in each case in such amounts, with such deductibles, covering such risks and otherwise on such terms and conditions as shall be customary for such Persons. Without limiting the generality of the foregoing, each Credit Party will maintain, or cause to be maintained: (a) flood insurance with respect to each Flood Hazard Property, if any, that is located in a community that participates in the National Flood Insurance Program, in each case, in compliance with any applicable regulations of the Federal Reserve Board; and (b) replacement value casualty insurance on the Collateral under such policies of insurance, with such insurance companies, in such amounts, with such deductibles, and covering such risks as are at all times carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses. Each such policy of insurance shall: (i) name the Collateral Agent, on behalf of the holders of the Obligations, as an additional insured thereunder as its interests may appear; and (ii) in the case of each property insurance policy, contain a loss payable clause or endorsement, reasonably satisfactory in form and substance to the Collateral Agent, that names the Collateral Agent, on behalf of the holders of the Obligations, as the loss payee thereunder and provides for *at least* thirty (30) days' prior written notice (or such shorter prior written notice as may be agreed by the Collateral Agent in its reasonable discretion) to the Collateral Agent of any modification or cancellation of such policy.

------

Section 7.6 <u>Inspections</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, permit representatives and independent contractors of the Administrative Agent (which may include representatives of Lenders) to visit and inspect any of its properties, to conduct field audits, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; <u>provided</u>, <u>that</u>, (i) when an Event of Default exists the Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and without advance notice, and (ii) unless an Event of Default has occurred and is continuing, the Borrower shall *not* be responsible for the expense of any such inspections other than one (1) inspection per Fiscal Year by the Administrative Agent. Notwithstanding anything to the contrary in this <u>Section</u> <u>7.6</u>, neither any Credit Party nor any Subsidiary (including any Regulated Subsidiary) or any other Regulated Entity will be required to disclose, or to permit the inspection or discussion of, any document, information or other matter (x) in respect of which disclosure to the Administrative Agent or any Lender (or their representatives) is prohibited by Applicable Law, fiduciary duty or any binding agreement, or (y) that is subject to attorney client or similar privilege or constitutes attorney work product.

Section 7.7 <u>Lenders Meetings</u>. The Borrower will, upon the request of the Administrative Agent or the Required Lenders, participate in a meeting of the Administrative Agent and the Lenders once during each Fiscal Year to be held at the Borrower's corporate offices (or at such other physical location, or in lieu thereof being held "virtually" by telephone or video conference, in each case, as may be agreed to by the Borrower and the Administrative Agent) at such time as may be agreed to by the Borrower and the Administrative Agent.

Section 7.8 <u>Compliance with Laws and Material Contracts</u>. Each Credit Party will comply, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and all other Persons (including any other Regulated Entities), if any, on or occupying any Facilities to comply, with (a) the Patriot Act and OFAC rules and regulations, and, (b) except where the failure to do so would *not* reasonably be expected to have a Material Adverse Effect, (i) all other Applicable Laws, and (ii) all Material Contracts entered into by any Credit Party, any Subsidiary (including any Regulated Subsidiary) or any other Regulated Entity.

Section 7.9 <u>Use of Proceeds</u>. The Credit Parties shall use the proceeds of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans; Delayed Draw Term Loan</u>. All Revolving Loans and the Delayed Draw Term Loan *solely* (i) to finance permitted Investments in Regulated Entities, (ii) to finance Capital Expenditures, and (iii) for working capital and other general corporate purposes (and, in each case of the foregoing, to pay transaction fees, costs and expenses in connection therewith);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term Loan A</u>. The Term Loan A *solely* (i) to finance the payment on the Closing Date of the Closing Date Distribution, (ii) to refinance, in full, all existing Indebtedness of the Credit Parties, Subsidiaries and other Regulated Entities that is *not* permitted to remain outstanding after the Closing Date pursuant to this Agreement, and (iii) to pay transaction fees, costs and expenses in connection with the closing of this Agreement and the other Credit Documents on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Incremental Term Loans</u>. Each Incremental Term Loan *solely* for the purpose(s) set forth in the applicable Incremental Facility Agreement establishing such Incremental Term Loan; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Letters of Credit</u>. All Letters of Credit *solely* for general corporate purposes;

in each case of the foregoing <u>clauses (a</u>) through (<u>d</u>), to the extent *not* in violation of any Applicable Laws or the terms of the Credit Documents.

Section 7.10 <u>Environmental Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Environmental Disclosure</u>. Each Credit Party will deliver to the Administrative Agent and the Lenders, with reasonable promptness, such documents and/or information as from time to time may be reasonably requested by the Administrative Agent or any Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Hazardous Materials Activities, Etc</u>. Each Credit Party shall promptly take, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to promptly take, any and all actions necessary to (i) cure any violation of applicable Environmental Laws by such Credit Party, Subsidiary or other Regulated Entity that would reasonably be expected to have, individually or in the aggregate when taken together, a Material Adverse Effect, and (ii) respond to any Environmental Claim against any such Credit Party, Subsidiary or other Regulated Entity and discharge any obligations it may have to any Person thereunder where failure to do so would reasonably be expected to result, individually or in the aggregate when taken together, in a Material Adverse Effect.

Section 7.11 <u>Additional Real Estate Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that any Credit Party owns or acquires a Real Estate Asset, then such Credit Party, by *no later than* ninety (90) consecutive calendar days (or by such later date as may be agreed in writing by the Collateral Agent in its sole discretion) after acquiring such Real Estate Asset, shall take all such actions and execute and deliver, or cause to be executed and delivered, all such Mortgages, documents, instruments, agreements, opinions and certificates similar to those described in <u>clause (b</u>) immediately below that the Collateral Agent shall reasonably request to create in favor of the Collateral Agent, for the benefit of the holders of the Obligations, a valid and, subject to any filing and/or recording referred to herein, enforceable Lien on, and security interest in such Real Estate Asset. The Administrative Agent may, in its reasonable judgment, grant extensions of time for compliance or exceptions with respect to the provisions of this <u>Section</u> <u>7.11</u> by any Credit Party. In addition to the foregoing, the applicable Credit Party shall, at the request of the Required Lenders, deliver, from time to time, to the Administrative Agent such appraisals as are required by Applicable Law of Real Estate Assets with respect to which the Collateral Agent has been granted a Lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In order to create in favor of the Collateral Agent, for the benefit of the holders of the Obligations, a valid and, subject to any filing and/or recording referred to herein, enforceable Lien on, and security interest in, any Real Estate Asset that is prior and superior in right to any other Lien (other than Permitted Liens), the Administrative Agent and the Collateral Agent (with copies sufficient for each Lender) shall have received from the applicable Credit Party with respect to such Real Estate Asset:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fully executed and notarized Mortgages, in proper form for recording in all appropriate places in all applicable jurisdictions, encumbering such Real Estate Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an opinion of counsel (which counsel shall be reasonably satisfactory to the Collateral Agent) in each state in which such Real Estate Asset is located with respect to the enforceability of the form(s) of Mortgages to be recorded in such state and such other matters as the Collateral Agent may reasonably request, in each case in form and substance reasonably satisfactory to the Collateral Agent;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) ALTA mortgagee title insurance policies or unconditional commitments therefor issued by one or more title companies reasonably satisfactory to the Collateral Agent (each, a "*<u>Title Policy</u>*") with respect to such Real Estate Asset, in amounts *not less than* the fair market value of such Real Estate Asset, together with a title report issued by a title company with respect thereto and copies of all recorded documents listed as exceptions to title or otherwise referred to therein, each in form and substance reasonably satisfactory to the Collateral Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) evidence reasonably satisfactory to the Collateral Agent that the applicable Credit Party has paid to the title company or to the appropriate Governmental Authorities all expenses and premiums of the title company and all other sums required in connection with the issuance of each Title Policy and all recording and stamp taxes (including mortgage recording and intangible taxes) payable in connection with recording the Mortgage for such Real Estate Asset in the appropriate real estate records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a recently issued flood zone determination certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) evidence of flood insurance with respect to each Flood Hazard Property that is located in a community that participates in the National Flood Insurance Program, in each case in compliance with any applicable regulations of the Federal Reserve Board, in form and substance reasonably satisfactory to the Collateral Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if an exception to the Title Policy with respect to any Real Estate Asset subject to a Mortgage would arise without such ALTA surveys, ALTA surveys of such Real Estate Asset; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) reports and other reasonable information, in form, scope and substance reasonably satisfactory to the Administrative Agent, regarding environmental matters relating to such Real Estate Asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in the foregoing of this <u>Section</u> <u>7.11</u>, no Mortgage shall be granted with respect to any Real Estate Asset until the Administrative Agent shall have received written confirmation from each Lender of the satisfactory completion by such Lender of flood diligence with respect to such Real Estate Asset.

Section 7.12 <u>Pledge of Personal Property Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Equity Interests</u>. The Borrower and each other Credit Party shall cause:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) one hundred percent (100.0%) of the issued and outstanding Equity Interests of each Domestic Subsidiary (including, without limitation, each Domestic Subsidiary resulting from the division or allocation of any limited liability company that is *not* a Regulated Subsidiary); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) sixty-five percent (65.0%) of the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956–2(c)(2)), and one hundred percent (100.0%) of the issued and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956–2(c)(2)), of each Foreign Subsidiary that is directly owned by any Credit Party or any Domestic Subsidiary;

------

to be subject, at all times, to a first priority lien (subject to any Permitted Lien) in favor of the Collateral Agent, for the benefit of the Lenders, pursuant to the terms and conditions of the Collateral Documents, together with opinions of counsel and any filings and deliveries or other items reasonably requested by the Collateral Agent necessary in connection therewith to perfect the security interests therein, all in form and substance reasonably satisfactory to the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Personal Property</u>. The Borrower and each other Credit Party shall (i) cause all of its owned and leased personal property (other than Excluded Property) to be subject, at all times, to first priority (subject to any Permitted Lien), perfected Liens in favor of the Collateral Agent, for the benefit of the holders of the Obligations, to secure the Obligations pursuant to the terms and conditions of the Collateral Documents or, with respect to any such property acquired subsequent to the Closing Date, such other additional security documents as the Collateral Agent shall reasonably request, subject in any case to Permitted Liens, and (ii) deliver such other documentation as the Collateral Agent may reasonably request in connection with the foregoing, including, without limitation, appropriate UCC–1 financing statements, certified resolutions and other organizational and authorizing documents of such Person, opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to above and the perfection of the Collateral Agent's Liens thereunder) and other items reasonably requested by the Collateral Agent necessary in connection therewith to perfect the security interests therein, all in form, content and scope reasonably satisfactory to the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Landlord Consents</u>. Upon the reasonable request of the Collateral Agent, the Credit Parties shall use commercially reasonable efforts to obtain landlord consents with respect to leased locations where corporate records or material amounts of personal property of any of the Credit Parties are maintained, which landlord consents shall be in form and substance reasonably acceptable to the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Controlled Account Agreements</u>. The Borrower and each other Credit Party shall, unless otherwise consented to by the Collateral Agent in writing, cause (in each case, as promptly as practicable and, in any event, by *no later than* (A) the date that is ninety (90) consecutive calendar days after the Closing Date (or by such later date as the Collateral Agent may agree in its sole discretion), in the case of any such accounts in existence on the Closing Date, and (B) the date that is ninety (90) consecutive calendar days after the date of establishment or acquisition of such account (or by such later date as the Collateral Agent may agree in its sole discretion), in the case of any such account(s) established or acquired after the Closing Date) each deposit, disbursement, lockbox, securities and/or commodities account of any Credit Party (including, without limitation, any such account(s) that are or will be held at Regions Bank), other than any Excluded Accounts, to be subject to a Controlled Account Agreement; <u>provided</u>, <u>that</u>, no Controlled Account Agreement shall be required, in any event, with respect to any such account that has a balance (or which holds Property with a fair market value) of *less than* Fifty Thousand Dollars ($50,000), in any individual instance, or One-Hundred Fifty Thousand Dollars ($150,000), when taken together with the account balances (or aggregate amount of the fair market value of Property) of all other deposit, disbursement, lockbox, securities and/or commodities accounts of any Credit Party (other than any Excluded Accounts) that are *not* subject to a Controlled Account Agreement.

Section 7.13 <u>Books and Records</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, keep proper books of record and account in which full, true and correct, in all material respects, entries shall be made of all dealings and transactions in relation to their respective businesses and activities to the extent necessary to prepare the consolidated financial statements of the Credit Parties and Subsidiaries both *inclusive* and *exclusive* of all Regulated Entities, in each case otherwise in conformity with GAAP.

------

Section 7.14 <u>Additional Subsidiaries</u>. Within forty-five (45) calendar days after the date of acquisition or formation of any Subsidiary (including, without limitation, upon the inception of any Subsidiary resulting from the division or allocation of a limited liability company or upon the reinstatement or reincorporation of a formerly dissolved Subsidiary) or of re-designation of any Immaterial Subsidiary as a Material Subsidiary in accordance with the definition of "*Immaterial Subsidiary*" in <u>Section</u> <u>1.1</u> (or, in any such case, by such later date as the Administrative Agent may agree in its sole discretion), the Credit Parties shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) notify the Administrative Agent thereof in writing, together with the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) jurisdiction of incorporation or formation (as the case may be);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) number of shares of each class of its Equity Interests outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) number and percentage of outstanding shares of each class owned (directly or indirectly) by any Credit Party, any Subsidiary or any other Regulated Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) number and effect, if exercised, of all outstanding options, warrants, rights of conversion or purchase and all other similar rights with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if such Subsidiary is *not* an Excluded Subsidiary, cause such Person to (i) become a Guarantor by executing and delivering to the Administrative Agent a Guarantor Joinder Agreement or such other documents as the Administrative Agent shall deem appropriate for such purpose, and (ii) deliver to the Administrative Agent documents of the types referred to in <u>Section</u> <u>5.1(b</u>) and <u>Section</u> <u>5.1(e</u>) and favorable opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to in the immediately foregoing <u>clause (b)(i</u>)), all in form, content and scope satisfactory to the Administrative Agent.

Section 7.15 <u>Maintenance of Reinsurance</u>. The Credit Parties, Subsidiaries and other Regulated Entities shall maintain a program of reinsurance *at least* equal to that: (a) required by the applicable Insurance Regulatory Authority of the applicable state of domicile for each such Person; and

(b) determined by Demotech, Inc. to be necessary for a company to obtain an "A" rating.

**Article 8** 

**<u>NEGATIVE COVENANTS</u>**

Each Credit Party covenants and agrees that, until the Obligations shall have been Paid in Full, such Credit Party shall perform, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to perform, each of the covenants set forth in this <u>Article 8</u>.

Section 8.1 <u>Indebtedness</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries nor any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, create, incur, assume or guaranty, or otherwise become or remain directly or indirectly liable with respect to any Indebtedness, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Obligations;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Unsecured Indebtedness of any Credit Party owing to any other Credit Party; (ii) unsecured Indebtedness of any Subsidiary or other Regulated Entity that (in any such case) is *not* a Credit Party owing to any other Subsidiary or other Regulated Entity that (in any such case) is *not* a Credit Party; and (iii) unsecured Indebtedness of any Credit Party owing to any Subsidiary or other Regulated Entity that (in any such case) is *not* a Credit Party, <u>provided</u>, <u>that</u>, (A) the aggregate outstanding amount of Indebtedness incurred in reliance on this <u>clause (b)(iii</u>) shall *not exceed* Five-Hundred Thousand Dollars ($500,000) at any time, and (B) any such Indebtedness incurred or outstanding in reliance on this <u>clause (b)(iii</u>) shall be subordinated in right of payment (by operation of the terms of an applicable subordination agreement entered into with the Administrative Agent) to the prior Payment in Full of the Obligations on terms reasonably acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Guarantees with respect to Indebtedness otherwise permitted under this <u>Section</u> <u>8.1</u>; <u>provided</u>, <u>that</u>, any Guarantees granted or in effect in reliance on this <u>clause (c</u>) shall be subordinated to the Obligations if, and to the extent that, the Indebtedness guaranteed thereby is subordinated to the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Indebtedness existing on the Closing Date and described in <u>Schedule 8.1</u>, together with any Permitted Refinancing thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Indebtedness with respect to (i) Capital Leases (<u>provided</u>, <u>that</u>, any such Indebtedness shall be secured only by the asset subject to such Capital Lease), and (ii) purchase money Indebtedness (<u>provided</u>, <u>that</u>, any such Indebtedness shall be secured only by the asset acquired in connection with the incurrence of such Indebtedness); <u>provided</u>, <u>that</u>, the *sum of* the aggregate principal amount of any Indebtedness under this <u>clause (e</u>) at any time outstanding shall *not exceed* Five-Hundred Thousand Dollars ($500,000); 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Indebtedness in respect of any Swap Agreement that is entered into in the ordinary course of business to hedge, limit or mitigate risks to which any Credit Party, any Subsidiary or any other Regulated Entity is exposed in the conduct of its business or the management of its liabilities (it being acknowledged by each Credit Party that a Swap Agreement entered into for speculative purposes, or otherwise of a speculative nature, is *not* a Swap Agreement entered into in the ordinary course of business to hedge, limit or mitigate risks);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to the extent constituting Indebtedness, all obligations in connection with each Permitted Acquisition (including, without limitation, Earn Out Obligations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Indebtedness representing deferred compensation to officers, directors, employees of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Guarantees (i) by any Credit Party of Indebtedness of any Subsidiary (other than any Regulated Subsidiary) that is *not* a Credit Party, and (ii) by any Subsidiary (other than any Regulated Subsidiary) of Indebtedness of any Credit Party or of any other Subsidiary (other than any Regulated Subsidiary) that is *not* a Credit Party; <u>provided</u>, <u>that</u>, (A) Guarantees by any Credit Party of Indebtedness of any Subsidiary (other than any Regulated Subsidiary) that is *not* a Credit Party shall be subject to compliance with <u>Section</u> <u>8.6</u>, and (B) any Guarantees granted or in effect in reliance on this <u>clause (i</u>) shall be subordinated to the Obligations if, and to the extent that, the Indebtedness guaranteed thereby is subordinated to the Obligations;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Indebtedness owed to any Person (including obligations in respect of letters of credit for the benefit of such Person) providing workers' compensation, health, disability or other employee benefits or property, casualty, liability insurance, self-insurance, pursuant to reimbursement or indemnification obligations to such Person or to finance insurance premiums, in each case incurred in the ordinary course of business and consistent with past practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Indebtedness in respect of or guarantee of performance bonds, bid bonds, appeal bonds, surety bonds, performance and completion guarantees, workers' compensation claims, letters of credit, bank guarantees and banker's acceptances, warehouse receipts or similar instruments and similar obligations (other than in respect of other Indebtedness for borrowed money), in each case provided in the ordinary course of business and consistent with past practice; <u>provided</u>, <u>that</u>, any Indebtedness arising from the provision by any Credit Party of any of the foregoing for the benefit of any Person that is *not* a Credit Party is subject to compliance with <u>Section</u> <u>8.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) cash management obligations and other Indebtedness in respect of netting services, overdraft protection and similar arrangements, in each case, in connection with cash management and deposit accounts maintained in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) to the extent constituting Indebtedness, Guarantees in the ordinary course of business of the obligations of suppliers, customers, franchisees and licensees of the Credit Parties and Subsidiaries (other than any Regulated Entities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) performance guarantees primarily guaranteeing performance of contractual obligations to a third party and *not* for the purpose of guaranteeing payment of Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) (i) Indebtedness of a Regulated Entity under "surplus notes" owing to one (1) or more other Credit Parties, Subsidiaries or other Regulated Entities, (ii) Indebtedness of a Qualifying Reciprocal Entity under "surplus notes" owing to one (1) or more Persons other than the Credit Parties, Subsidiaries and other Regulated Entities, and (iii) Indebtedness of a Regulated Subsidiary under "surplus notes" owing to one (1) or more Persons other than the Credit Parties, Subsidiaries and other Regulated Entities, <u>provided</u>, <u>that</u>, the aggregate principal amount of Indebtedness permitted in reliance on this <u>clause (o)(iii</u>) shall *not exceed* Fifty Million Dollars ($50,000,000) at any time outstanding; <u>provided</u>, <u>that</u>, in any such case of the foregoing <u>clauses</u> <u>(o)(i</u>) through (<u>o)(iii</u>), (A) such Indebtedness shall be subordinated to the policyholders of the applicable Regulated Entity, (B) payments of principal of, and interest on, such Indebtedness shall only be made upon the prior written consent of the applicable Governmental Authority, and (C) the principal amount of such Indebtedness shall constitute equity in accordance with SAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Indebtedness of any of the Regulated Entities owing to, and in the form of (or incurred pursuant to) loans, funding agreements, and/or guaranteed investment contracts entered into by such Regulated Entity with, a FHLB in connection with the membership of such Regulated Entity in or with such FHLB in the ordinary course of business; <u>provided</u>, <u>that</u>, any such Indebtedness incurred in reliance on this <u>clause (p</u>) is *not* recourse to any of the Credit Parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) other unsecured Indebtedness of the Credit Parties, Subsidiaries and other Regulated Entities in an aggregate amount *not exceeding* One Million Dollars ($1,000,000) at any time outstanding.

Accrual of interest or dividends, the accretion of accreted value, the accretion or amortization of original issue discount and the payment of interest, premium, fees or expenses, in the form of additional Indebtedness, or preferred stock (in each case, so long as such additional Indebtedness or preferred stock is in the same form and on the same terms as the Indebtedness to which such payment relates) shall *not* be deemed to be an incurrence of Indebtedness for purposes of this <u>Section</u> <u>8.1</u>.

------

Section 8.2 <u>Liens</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, create, incur, assume, or permit to exist any Lien on, or with respect to, any Properties of any kind (including any document or instrument in respect of goods or accounts receivable) of any Credit Party, any Subsidiary or any other Regulated Entity, whether now owned or hereafter acquired, created or licensed or any income, profits or royalties therefrom, or file, or permit the filing of, or otherwise permit to remain in effect, any financing statement or other similar notice of any Lien with respect to any such Property, income, profits or royalties under the UCC of any State or under any similar recording or notice statute or under any Applicable Laws related to intellectual property, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens in favor of the Collateral Agent, for the benefit of the holders of the Obligations, granted pursuant to any Credit Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liens for Taxes *not* yet due, or for Taxes if obligations with respect to such Taxes are being contested in good faith by appropriate proceedings diligently conducted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) statutory Liens of landlords, banks, carriers, warehousemen, mechanics, repairmen, workmen and materialmen, and other Liens imposed by Applicable Law (other than any such Lien imposed pursuant to Section 430(k) of the Internal Revenue Code or Section 303(k) or 4068 of ERISA that would constitute an Event of Default under <u>Section</u> <u>9.1(j</u>)), in each case, incurred in the ordinary course of business: (i) for amounts *not* yet overdue; or (ii) for amounts that are overdue and that are being contested in good faith by appropriate proceedings, so long as such reserves or other appropriate provisions, if any, as shall be required by GAAP shall have been made for any such contested amounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens incurred in the ordinary course of business in connection with workers' compensation, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, trade contracts, performance and return-of-money bonds and other similar obligations (exclusive of obligations for the payment of borrowed money or other Indebtedness), so long as no foreclosure, sale or similar proceedings have been commenced with respect to any portion of the Collateral on account thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) easements, rights-of-way, restrictions, encroachments, and other minor defects or irregularities in title, in each case, that do *not* and will *not* interfere, in any material respect, with the ordinary conduct of the businesses of any Credit Party, any Subsidiary or any other Regulated Entity, including, without limitation, all encumbrances shown on any policy of title insurance in favor of the Collateral Agent with respect to any Real Estate Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any interest or title of a lessor or sub-lessor under any lease of real estate permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Liens *solely* on any cash earnest money deposits made by any Credit Party or Subsidiary (other than any Regulated Subsidiary) in connection with any letter of intent, or purchase agreement permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) purported Liens evidenced by the filing of precautionary UCC financing statements relating *solely* to operating leases of personal property entered into in the ordinary course of business;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any zoning or similar law or right reserved to, or vested in, any governmental office or agency to control or regulate the use of any real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) licenses of patents, trademarks, and other intellectual property rights granted by any Credit Party or Subsidiary (other than any Regulated Entity) in the ordinary course of business and *not* interfering in any respect with the ordinary conduct of the business of such Credit Party or Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Liens existing as of the Closing Date and described in <u>Schedule 8.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Liens securing purchase money Indebtedness and Capital Leases to the extent permitted pursuant to <u>Section</u> <u>8.1(e</u>); <u>provided</u>, <u>that</u>, any such Lien shall encumber only the asset acquired with the proceeds of such Indebtedness or the assets subject to such Capital Lease, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Liens in favor of the Issuing Bank or the Swingline Lender on cash collateral securing the obligations of a Defaulting Lender to fund risk participations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Liens consisting of judgment or judicial attachment liens relating to judgments which do *not* constitute an Event of Default hereunder; 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) licenses (including licenses of Intellectual Property), sublicenses, leases or subleases granted to third parties in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Liens in favor of collecting banks under Section 4–210 of the UCC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Liens (including the right of set-off) in favor of a bank or other depository institution arising as a matter of law encumbering deposits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Liens on insurance policies and the proceeds thereof granted in the ordinary course of business to secure the financing of insurance premiums with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) Liens of bailees in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) utility and similar deposits in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Liens on Property (other than, in any event, Collateral) of the Regulated Entities securing Indebtedness permitted and incurred in reliance on <u>Section</u> <u>8.1(p</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) other Liens to the extent securing Indebtedness or other monetary obligations in an aggregate amount *not to exceed* Two-Hundred Fifty Thousand Dollars ($250,000) at any time outstanding.

------

Section 8.3 <u>No Further Negative Pledges</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, enter into any Contractual Obligation (other than this Agreement and the other Credit Documents) that limits the ability of any Credit Party, any Subsidiary or any other Regulated Entity to create, incur, assume or suffer to exist Liens on property of such Person; <u>provided</u>, <u>that</u>, this <u>Section</u> <u>8.3</u> shall *not* prohibit:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any negative pledge incurred or provided in favor of any holder of Indebtedness permitted under <u>Section</u> <u>8.1(e</u>), *solely* to the extent any such negative pledge relates to the Property financed by or subject to Permitted Liens securing such Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Permitted Lien or any document or instrument governing any Permitted Lien; <u>provided</u>, <u>that</u>, any such restriction contained therein relates only to the Property subject to such Permitted Lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) customary restrictions and conditions contained in any agreement relating to the disposition of any Property permitted under <u>Section</u> <u>8.10</u> pending the consummation of such disposition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) customary provisions restricting assignments, subletting or other transfers contained in leases, licenses, joint venture agreements and similar agreements entered into in the ordinary course of business.

Section 8.4 <u>Restricted Payments</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Subsidiary of the Borrower may make Restricted Payments to any Person that directly owns Equity Interests in such Subsidiary, ratably according to their respective holdings of the type of Equity Interests in respect of which such Restricted Payment is being made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower may declare and make dividend payments or other distributions payable *solely* in common Equity Interests in the Borrower; 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the making of the Closing Date Distribution in cash on the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) other Restricted Payments paid in cash, so long as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default exists or would result therefrom; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately *after* giving effect to any such Restricted Payment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Consolidated Leverage Ratio, determined on a Pro Forma Basis, is *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the Consolidated Leverage Ratio required for the most recently ended Trailing Period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there remains *at least* Ten Million Dollars ($10,000,000) of Liquidity.

------

Section 8.5 <u>Burdensome Agreements</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, enter into, or permit to exist, any Contractual Obligation that encumbers or restricts the ability of any such Person to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pay dividends or make any other distributions to any Credit Party on its Equity Interests or with respect to any other interest or participation in, or measured by, its profits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) pay any Indebtedness or other obligation owed to any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) make loans or advances to any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) sell, lease or transfer any of its Property to any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) pledge its Property pursuant to the Credit Documents or any renewals, refinancings, exchanges, refundings or extension thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) act as a Credit Party pursuant to the Credit Documents or any renewals, refinancings, exchanges, refundings or extension thereof;

except (in respect of any of the matters referred to in <u>clauses (i</u>) through (<u>iv</u>) above) for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) this Agreement and the other Credit Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any document or instrument governing Indebtedness incurred pursuant to <u>Section</u> <u>8.1(e</u>); <u>provided</u>, <u>that</u>, any such restriction contained therein relates only to the Property constructed or acquired in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Permitted Lien or any document or instrument governing any Permitted Lien; <u>provided</u>, <u>that</u>, any such restriction contained therein relates only to the Property subject to such Permitted Lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) customary restrictions and conditions contained in any agreement relating to the sale of any Property permitted under <u>Section</u> <u>8.10</u> pending the consummation of such sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any restrictions regarding licensing or sublicensing by the Credit Parties, Subsidiaries and other Regulated Entities of Intellectual Property in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) customary provision in leases and other contracts restricting the assignment thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) restrictions that arise in connection with Indebtedness permitted to be incurred pursuant to <u>Section</u> <u>8.1(j</u>).

Section 8.6 <u>Investments</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, make or own any Investment in any Person, including any joint venture and any Foreign Subsidiary, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investments in cash and Cash Equivalents and deposit accounts or securities accounts in connection therewith;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) equity Investments owned as of the Closing Date in any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) intercompany loans to the extent permitted under <u>Section</u> <u>8.1(b</u>), and guarantees to the extent permitted under <u>Section</u> <u>8.1(c</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Investments existing on the Closing Date and described on <u>Schedule 8.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Investments constituting Swap Agreements permitted by <u>Section</u> <u>8.1(f</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Permitted Acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Investments constituting accounts receivable, trade debt and deposits for the purchase of goods, in each case made in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Investments made by Regulated Entities in the ordinary course of business that are consistent with the respective investment policies of each such Regulated Entity in effect on the Closing Date, as such policy may be amended or modified from time to time by board (or equivalent) approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Guarantees by any Credit Party, any Subsidiary or any other Regulated Entity constituting Indebtedness permitted by <u>Section</u> <u>8.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) loans or advances to employees, officers or directors of members of any Credit Party or Subsidiary (other than any Regulated Subsidiary) in the ordinary course of business for travel, relocation and related expenses; <u>provided</u>, <u>that</u>, the aggregate amount of all such loans and advances does *not exceed* Five-Hundred Thousand Dollars ($500,000) in the aggregate at any time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, customers and suppliers, or upon the foreclosure with respect to any secured Investment or other transfer of title with respect to any secured Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Investments resulting from pledges or deposits described in <u>Section</u> <u>8.2(d</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Investments consisting of cash earnest money deposits in connection with a Permitted Acquisition or other Investment permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Investments consisting of endorsements for collection or deposit in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Investments by any Credit Party, any Subsidiary, or any other Regulated Entity in a Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Investments by Subsidiaries (including Regulated Subsidiaries) that are *not* Credit Parties or by Qualifying Reciprocal Entities, on the one hand, in other Subsidiaries (including Regulated Subsidiaries) that are *not* Credit Parties or in other Qualifying Reciprocal Entities, on the other hand;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Investments by the Credit Parties in (including, without limitation, in the form of provision of a Letter of Credit for the benefit of) Regulated Entities to the extent required to provide capital support for such Regulated Entities, <u>provided</u>, <u>that</u>, each of the following conditions shall have been satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default exists or would result from such Investment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately *after* giving effect to any such Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis, shall be *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the maximum Consolidated Leverage Ratio then in effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there shall be *at least* Ten Million Dollars ($10,000,000) of Liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Investments made in connection with Indebtedness permitted and incurred in reliance on <u>Section</u> <u>8.1(p</u>) consisting of Equity Interests in an FHLB that are held by a Regulated Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) other Investments in an aggregate amount that does *not exceed* One Million Dollars ($1,000,000) outstanding at any time (measured on a cost basis, to the extent applicable).

Notwithstanding anything to the contrary in the foregoing, in no event shall any Credit Party, any Subsidiary or any other Regulated Entity make any Investment that results in or facilitates in any manner any Restricted Payment *not* otherwise permitted under the terms of <u>Section</u> <u>8.4</u>. For purposes of determining compliance with this <u>Section</u> <u>8.6</u>, any Investment that is written down, written off or forgiven by any Credit Party, any Subsidiary or any other Regulated Entity shall continue to count against any cap set forth in the clause or clauses of this <u>Section</u> <u>8.6</u> pursuant to which such Investment is permitted.

Section 8.7 <u>Use of Proceeds</u>. No Credit Party shall use the proceeds of any Credit Extension of the Loans except pursuant to <u>Section</u> <u>7.9</u>. No Credit Party shall use, and each Credit Party shall ensure that each of its Subsidiaries, each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact, and each of the respective directors, officers, employees and agents of each of the foregoing, shall *not* use, the proceeds of any Credit Extension:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to refinance any commercial paper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in any manner that causes, or might cause, such Credit Extension, or the application of such proceeds, to violate any applicable Sanctions, Regulation T, Regulation U or Regulation X of the Federal Reserve Board, as in effect from time to time or any other regulation thereof, or to violate the Exchange Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country.

------

Section 8.8 <u>Financial Covenants</u>. The Credit Parties shall *not*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Consolidated Leverage Ratio</u>. Permit the Consolidated Leverage Ratio, as of the end of any Fiscal Quarter commencing with the Fiscal Quarter ending March 31, 2025, to be *greater than* 2.25 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consolidated Fixed Charge Coverage Ratio</u>. Permit the Consolidated Fixed Charge Coverage Ratio, as of the end of any Fiscal Quarter commencing with the Fiscal Quarter ending March 31, 2025, to be *less than* 1.25 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Combined Statutory Surplus</u>. Permit the Combined Statutory Surplus, as of the end of any Fiscal Quarter, to be *less than* the *sum of*: (i) eighty percent (80.0%) of the Combined Statutory Surplus, determined as of the end of the last Fiscal Quarter ending immediately *prior* to the Closing Date; *plus* (ii) eighty percent (80.0%) of the aggregate amount of Investments (including, for purposes of clarity, Investments in the form of "surplus notes") made after the Closing Date by any Credit Party or Subsidiary (other than a Regulated Entity) in any Regulated Entity (other than a Captive Reinsurance Company), including, for purposes of clarity, any such Investments made with the proceeds of Revolving Loans or an advance under the Delayed Draw Term Loan.

Section 8.9 <u>Fundamental Changes; Disposition of Assets; Acquisitions</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, enter into any Acquisition or transaction of merger or consolidation, or liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution), or make any Asset Sale, or acquire by purchase or otherwise (other than purchases or other acquisitions of inventory and materials and the acquisition of equipment and capital expenditures in the ordinary course of business, subject to <u>Section</u> <u>8.9</u>) the business, property or fixed assets of, or Equity Interests or other evidence of beneficial ownership of, any Person or any division or line of business or other business unit of any Person (including, in each case, pursuant to the division or allocation of a limited liability company), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Subsidiary of any Credit Party may be merged with or into the Borrower or any other Subsidiary, or be liquidated, wound up or dissolved, or all, or any part, of its business or Property may be conveyed, sold, leased, transferred or otherwise disposed of, in one (1) transaction or a series of transactions, to the Borrower or any other Subsidiary; <u>provided</u>, <u>that</u>, in the case of such a merger, (i) if the Borrower is party to the merger, the Borrower shall be the continuing or surviving Person, and (ii) if any Guarantor is a party to such merger, then a Guarantor shall be the continuing or surviving Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Investments made in accordance with <u>Section</u> <u>8.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) sales of any Property made by any Regulated Entity in the ordinary course of business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Asset Sales, the proceeds of which, when aggregated with the proceeds of all other Asset Sales consummated within the same Fiscal Year in reliance on this <u>clause (d</u>), do *not exceed* One Million Dollars ($1,000,000); <u>provided</u>, <u>that</u>, (i) the consideration received by any Credit Party, Subsidiary or other Regulated Entity for the Property sold, or otherwise disposed of, pursuant to such Asset Sale shall be in an aggregate amount *at least* equal to the fair market value (as determined in good faith by the board of directors or managers (or similar governing body) of the applicable Credit Party, Subsidiary or other Regulated Entity) of such Property, (ii) *no less than* seventy-five percent (75.0%) of such proceeds shall be paid in cash or Cash Equivalents, and (iii) no Default or Event of Default exists at the time of consummation of such Asset Sale or would result therefrom.

------

Section 8.10 <u>Disposal of Subsidiary Interests</u>. Except for any sale of all of its interests in the Equity Interests of any of its Subsidiaries in compliance with the provisions of <u>Section</u> <u>8.9</u> and except for Liens securing the Obligations, no Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) directly or indirectly sell, assign, pledge, or otherwise encumber or dispose of any Equity Interests in any of its Subsidiaries, except to qualify directors if required by Applicable Laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) permit any of its Subsidiaries directly or indirectly to sell, assign, pledge, or otherwise encumber or dispose of any Equity Interests in any of its Subsidiaries, except to another Credit Party (subject to the restrictions on such disposition otherwise imposed hereunder), or to qualify directors if required by Applicable Laws.

Section 8.11 <u>Sales and Lease-Backs</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, become or remain liable as lessee or as a guarantor or other surety with respect to any lease of any Property (whether real, personal or mixed), whether now owned or hereafter acquired, which the applicable Credit Party, Subsidiary or other Regulated Entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has sold or transferred, or is to sell or to transfer, to any other Person (other than any Credit Party); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) intends to use for substantially the same purpose as any other Property that has been, or is to be, sold or transferred by any Credit Party to any Person (other than any Credit Party) in connection with such lease.

Section 8.12 <u>Transactions with Affiliates and Insiders</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, enter into or permit to exist any transaction (including the purchase, sale, lease or exchange of any Property or the rendering of any service) with any officer, director or Affiliate of any Credit Party, any Subsidiary or any other Regulated Entity on terms that are *less* favorable to such Credit Party, Subsidiary or other Regulated Entity, as the case may be, than those that might be obtained at the time from a Person who is *not* an officer, director or Affiliate of any Credit Party, any Subsidiary or any other Regulated Entity; <u>provided</u>, <u>that</u>, the foregoing restriction shall *not* apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any transaction exclusively between or among Credit Parties, and any transaction exclusively between or among Affiliates of any Credit Party, any Subsidiary or any other Regulated Entity that are *not* Credit Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) compensation (including bonuses and equity or other consideration) and employee benefit arrangements paid to, indemnities provided for the benefit of, and employment and severance arrangements entered into with, and reimbursement of expenses of officers and directors and approved by the Board of Directors of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Restricted Payment to the extent permitted by <u>Section</u> <u>8.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Investment to the extent permitted by <u>Section</u> <u>8.6</u>; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any issuances of securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment agreements, employee stock options and employee stock ownership plans.

Section 8.13 <u>Modification or Payment of Certain Funded Debt</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) after the issuance thereof, amend or modify (or permit the termination, amendment or modification of) the terms of any Junior Debt in a manner adverse, in any material respect, to the interests of the Lenders (including specifically shortening any maturity or average life to maturity or requiring any payment sooner than previously scheduled or increasing the interest rate or fees applicable thereto), except to the extent any such amendment or modification constitutes a Permitted Refinancing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) pay, prepay, redeem, purchase, repurchase, defease, retire or extinguish, or otherwise satisfy, or obligate itself or any other Credit Party, Subsidiary or other Regulated Entity to do any of the foregoing, in respect of any Junior Debt other than any Indebtedness in the form of "surplus notes", except for payments of regularly scheduled interest, regularly scheduled amortization (if any) of principal, accrued fees and expenses and customary indemnification obligations, and other required payments at the scheduled maturity thereof, in each case of this <u>clause (b</u>), *solely* to the extent that each of the following conditions are satisfied in respect of such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default then exists or would result from the making of such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) both immediately *before* and immediately *after* giving effect to any such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis, shall be *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the maximum Consolidated Leverage Ratio then in effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there shall be *at least* Ten Million Dollars ($10,000,000) of Liquidity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction is permitted under any and all applicable subordination, standstill and/or similar provisions in any applicable Contractual Obligation of such Credit Party, Subsidiary or other Regulated Entity.

Section 8.14 <u>Conduct of Business</u>. From and after the Closing Date, no Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, engage in any business other than the businesses engaged in by such Credit Party, Subsidiary or other Regulated Entity on the Closing Date and businesses that are substantially similar, related or incidental thereto.

------

Section 8.15 <u>Fiscal Year</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, change its Fiscal Year-end from December 31.

Section 8.16 <u>Amendments to Organizational Agreements / Material Agreements</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to: (a) amend, or permit any amendments to, its Organizational Documents, if such amendment could reasonably be expected to be materially adverse to the Lenders, the Administrative Agent or the Collateral Agent; (b) amend or permit any amendments to, or terminate or waive any provision of, any Material Contract (other than any managing general agent, service company or attorney-in-fact agreement), unless such amendment, termination, or waiver would *not* have, and would *not* be expected to have, a Material Adverse Effect; or (c) amend or permit any amendments to, or terminate or waive any provision of, any managing general agent, service company or attorney-in-fact agreement entered into by any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the one hand, and a Regulated Entity, on the other hand, unless such amendment, termination, or waiver would *not* have, and would *not* be expected to have, an adverse effect on the Credit Parties, the Administrative Agent, the Collateral Agent or the Lenders, <u>provided</u>, <u>that</u>, notwithstanding anything to the contrary in the foregoing of this <u>clause (c</u>), so long as any such waiver is permitted as an Investment in accordance with <u>Section</u> <u>8.6</u>, the Credit Parties and Subsidiaries (other than Regulated Subsidiaries) shall be permitted to waive any provision of any managing general agent, service company or attorney-in-fact agreement entered into by any Credit Party or Subsidiary (other than a Regulated Subsidiary), on the one hand, and a Regulated Entity, on the other hand, in order to reduce or waive, in whole or in part, managing general agency, service company or attorney-in-fact fees that are then due and payable thereunder and/or have already been paid but which are subsequently waived in accordance with Applicable Law by the Credit Party or Subsidiary (other than a Regulated Subsidiary) to whom such fees would otherwise have been paid thereunder, as applicable.

Section 8.17 <u>Accounting and Reporting Changes</u>. (i) No Credit Party or Subsidiary (other than any Regulated Entity) may make any significant change in accounting treatment or reporting practices, except as required by GAAP or the SEC; and (ii) no Regulated Entity may make any significant change in accounting treatment or reporting practices, except as required by SAP.

Section 8.18 <u>Statutory Capitalization / Risk-Based Capital Ratio</u>. As of the end of each Fiscal Year, each Credit Party, Subsidiary and other Regulated Entity that is subject to any minimum statutory capitalization and/or risk-based capital ratio requirements imposed by any Insurance Regulatory Authority and/or Applicable Laws shall meet or exceed such requirements and, in any event, maintain a risk-based capital ratio of *at least* three-hundred percent (300.0%) of the authorized control level (or substantially equivalent term as used under Applicable Laws and/or by any applicable Insurance Regulatory Authority); <u>provided</u>, <u>that</u>, in the event of any failure to comply with any of the foregoing requirements, the Credit Parties, Subsidiaries and other Regulated Entities shall have a period of thirty (30) calendar days, measured from, and including, the date on which any of the Credit Parties, Subsidiaries and other Regulated Entities that are subject to any such requirements shall have reported, or have been required under Applicable Law or other requirement of an Insurance Regulatory Authority to report, any such capitalization and/or risk-based capital ratio information to an applicable Insurance Regulatory Authority, to return to compliance with such minimum statutory capitalization and/or risk-based capital ratio requirements.

Section 8.19 <u>Holdco Restrictions</u>. The Borrower shall *not* incur any Indebtedness, grant any Liens upon any of its Property, or engage in any operations, business or activity whatsoever, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) incurring and carrying Indebtedness permitted under <u>Section</u> <u>8.1</u>,

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) owning and/or purchasing Equity Interests in Subsidiaries and serving as the attorney-in-fact for Qualifying Reciprocal Entities,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) granting a security interest in its Property pursuant to the terms of any Collateral Documents or otherwise as permitted by <u>Section</u> <u>8.2</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) providing a Guaranty of the Obligations pursuant to this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) maintaining its corporate or limited liability company (as applicable) existence,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) participating in tax, accounting and other administrative activities for itself and/or as a member of the consolidated group of companies including the Credit Parties and Subsidiaries,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) executing and delivering, and exercising its respective rights and performing each of its respective obligations under, each of the Credit Documents to which it is a party, any Secured Swap Agreements and/or Secured Treasury Management Agreements to which it is a party, and any other Contractual Obligations to which it is a party,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) opening and maintaining bank accounts,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) making any Restricted Payments or Investments expressly permitted to be made pursuant to this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) providing customary indemnification to officers and directors in the ordinary course of business (including pursuant to any Acquisition agreement and related documents to which it is a party),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) owning cash and Cash Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) issuing securities or other payments, awards or grants in cash, securities, or otherwise pursuant to (or for the funding of, as applicable) employment agreements to which it is a party or related employee stock options and employee stock ownership plans, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) any activities incidental or reasonably related to the foregoing,

in each case of the foregoing <u>clauses (a</u>) through (<u>m</u>), in a lawful manner *not* in contravention of the terms of this Agreement and the other Credit Documents.

**Article 9** 

**<u>EVENTS OF DEFAULT</u><u>;</u> <u>REMEDIES</u><u>;</u> <u>APPLICATION OF FUNDS</u>.** 

Section 9.1 <u>Events of Default</u>. If any one (1) or more of the following conditions or events shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Failure to Make Payments When Due</u>. Failure by any Credit Party to pay:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the principal of any Loan when due, whether at stated maturity, by acceleration or otherwise;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within one (1) Business Day of when due, any amount payable to the Issuing Bank in reimbursement of any drawing under a Letter of Credit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) within five (5) Business Days of when due, any interest on any Loan or any fee or any other amount due hereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Default in Other Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Failure of any Credit Party, any Subsidiary, or any other Regulated Entity to pay when due any principal of or interest on, or any other amount payable in respect of, one or more items of Indebtedness (other than Indebtedness referred to in <u>clause (a</u>) above) in an aggregate principal amount in *excess* of the Threshold Amount, in each case, beyond the grace or cure period, if any, provided therefor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) breach or default by any Credit Party, any Subsidiary, or any other Regulated Entity with respect to any other term of (A) one (1) or more items of Indebtedness in the aggregate principal amounts referred to in <u>clause (b)(i</u>) above, or (B) any loan agreement, mortgage, indenture or other agreement relating to such item(s) of Indebtedness, in each case, beyond the grace or cure period, if any, provided therefor, if the effect of such breach or default is to cause, or to permit the holder or holders of that Indebtedness (or a trustee on behalf of such holder or holders), to cause, that Indebtedness to become or be declared due and payable (or subject to a compulsory repurchase or redeemable) prior to its stated maturity or the stated maturity of any underlying obligation, as the case may be;

<u>provided</u>, <u>that</u>, so long as the Administrative Agent has *not* exercised any remedies under this <u>Article 9</u>, any Default or Event of Default under this <u>clause (b</u>) shall be immediately cured and no longer continuing (without any action on the part of the Administrative Agent, any Lender or otherwise) as and when any such failure (I) is remedied by applicable Credit Party, Subsidiary or other Regulated Entity, or (II) is waived (including in the form of amendment) by the requisite holders of the applicable item of Indebtedness; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Breach of Certain Covenants</u>. Failure of any Credit Party to perform or comply with any term or condition contained in <u>Section</u> <u>7.1(a</u>), <u>Section</u> <u>7.1(b</u>), <u>Section</u> <u>7.1(c</u>), <u>Section</u> <u>7.1(h</u>), <u>Section</u> <u>7.2(a</u>), <u>Section</u> <u>7.6</u>, <u>Section</u> <u>7.9</u> or <u>Section</u> <u>7.15</u>, or <u>Article 8</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Breach of Representations, etc</u>. Any representation, warranty, certification or other statement made, or deemed made, by any Credit Party or Subsidiary in any Credit Document to which it is a party, or in any statement or certificate at any time given by any Credit Party, Subsidiary or other Regulated Entity in writing pursuant hereto or thereto, or in connection herewith or therewith, shall be false in any material respect as of the date made or deemed made; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Other Defaults Under Credit Documents</u>. Any Credit Party, any Subsidiary or any other Regulated Entity shall default in the performance of, or compliance with, any term contained herein or in any of the other Credit Documents to which it is a party, other than any such term referred to in any other clause of this <u>Section</u> <u>9.1</u>, and such default shall *not* have been remedied or waived within thirty (30) days after the *earlier* to occur of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an Authorized Officer of any Credit Party becoming aware of such default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) receipt by the Borrower of notice from the Administrative Agent or the Required Lenders of such default; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Involuntary Bankruptcy; Appointment of Receiver, etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A court of competent jurisdiction shall enter a decree or order for relief in respect of any Credit Party, any Subsidiary, or any other Regulated Entity in an involuntary case under the Bankruptcy Code or Debtor Relief Laws now or hereafter in effect, which decree or order is *not* stayed, or any other similar relief shall be granted under any applicable federal or state law; or 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) an involuntary case shall be commenced against any Credit Party, any Subsidiary, or any other Regulated Entity under the Bankruptcy Code or other Debtor Relief Laws now or hereafter in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over any Credit Party, any Subsidiary or any other Regulated Entity, or over all, or a substantial part, of their respective Property, shall have been entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there shall have occurred the involuntary appointment of an interim receiver, trustee or other custodian of any Credit Party, any Subsidiary, or any other Regulated Entity for all, or a substantial part, of its respective Property; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) a warrant of attachment, execution or similar process shall have been issued against any substantial part of the Property of any Credit Party, any Subsidiary or any other Regulated Entity;

and any such event described in this <u>clause (f)(ii</u>) shall continue for sixty (60) days without having been dismissed, bonded or discharged; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Voluntary Bankruptcy; Appointment of Receiver, etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Credit Party, any Subsidiary, or any other Regulated Entity shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) have an order for relief entered with respect to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) commence a voluntary case under the Bankruptcy Code or other Debtor Relief Laws now or hereafter in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) consent to the appointment of, or taking possession by, a receiver, trustee or other custodian for all, or a substantial part, of its Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) make any assignment for the benefit of creditors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) be unable, or fail generally, or admit in writing its inability, to pay its debts as such debts become due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the board of directors (or similar governing body) of any Credit Party, any Subsidiary or any other Regulated Entity, or any committee thereof, shall adopt any resolution or otherwise authorize any action to approve any of the actions referred to in this <u>clause (g</u>) or in <u>clause (f</u>) above; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Judgments and Attachments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any one or more final, non-appealable money judgments, writs or warrants of attachment or similar process involving an aggregate amount at any time in *excess* of the Threshold Amount (to the extent *not* adequately covered by insurance as to which a solvent and unaffiliated insurance company has acknowledged coverage in writing) shall be entered or filed against any Credit Party, any Subsidiary or any other Regulated Entity, or any of their respective Property, and shall remain undischarged, un-vacated, un-bonded or un-stayed for a period of sixty (60) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any non-monetary judgment or order shall be rendered against any Credit Party, any Subsidiary or any other Regulated Entity that could reasonably be expected to have a Material Adverse Effect, and shall remain undischarged, un-vacated, un-bonded or un-stayed for a period of sixty (60) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Dissolution</u>. Any order, judgment or decree shall be entered against any Credit Party, any Subsidiary or any other Regulated Entity decreeing the dissolution or split up of any such Person, and such order shall remain undischarged or un-stayed for a period in *excess* of thirty (30) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Pension Plans</u>. There shall occur one (1) or more ERISA Events that, individually or in the aggregate when taken together, results in liability to the Credit Parties, Subsidiaries and other Regulated Entities (taken together) in *excess* of the Threshold Amount during the term hereof and which is *not* paid by the applicable due date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Change in Control</u>. A Change in Control shall occur; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Invalidity of Credit Documents and Other Documents</u>. At any time after the execution and delivery thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) this Agreement or any other Credit Document ceases to be in full force and effect (other than by reason of (x) a release of Collateral in accordance with the terms of this Agreement and the other Credit Documents, or (y) the Payment in Full of the Obligations) or is declared to be null and void; or (B) the Collateral Agent shall *not* have, or shall cease to have, a valid and perfected Lien in any material portion of the Collateral purported to be covered by the Collateral Documents with the priority required by the relevant Collateral Document, except, in the case of this <u>clause (l)(i)(B</u>), to the extent that any such lapse is due to the failure by the Collateral Agent to (I) file any UCC financing statement or any continuation thereof, or (II) maintain possession of certificates, promissory notes, or other possessory Collateral pledged under the Collateral Documents (except to the extent that any such items were required to be delivered to the Collateral Agent pursuant to this Agreement and the other Credit Documents and were *not* so delivered within the applicable timeframe prescribed therefor in the applicable Credit Document(s)); or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Credit Party, any Subsidiary, or any other Regulated Entity shall contest the validity or enforceability of any Credit Document in writing or deny in writing that any Credit Party has any further liability, including with respect to future advances by the Lenders, under any Credit Document to which it is a party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Risk Retention</u>. On June 1<sup>st</sup> of each calendar year, the net (of reinsurance coverage obtained) pre-tax catastrophe retention of any individual Regulated Entity (other than any Captive Reinsurance Company), whose Statutory Surplus is available for payment of claims on policies issued by the Regulated Entities (other than Captive Reinsurance Companies), *exceeds* twenty-five percent (25.0%) of the Statutory Surplus of such Regulated Entity, determined as of March 31<sup>st</sup> of the same calendar year in the event of a 1/100 Probable Maximum Loss followed by a subsequent event equivalent to a 1/50 Probable Maximum Loss, as measured by a catastrophe model that has been approved by the appropriate Insurance Regulatory Authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Reinsurer Concentration</u>. The aggregate amount of risk retention for catastrophe reinsurance (but *excluding* catastrophe reinsurance the full amount of which is collateralized as reasonably determined by the Administrative Agent) provided for payment of claims on policies purchased from the Credit Parties, Subsidiaries and other Regulated Entities provided by (i) any Qualifying Reinsurer (other than the Florida Hurricane Catastrophe Fund) with an "A+" or higher financial strength rating from A.M. Best Company (or any successor in interest thereto), on an annual contract year basis, *exceeds* thirty-five percent (35.0%), or (ii) any other individual (or affiliated) reinsurer (other than the Florida Hurricane Catastrophe Fund), on an annual contract year basis, *exceeds* twenty-five percent (25.0%), in each case of the foregoing <u>clauses (n)(i</u>) and (<u>n)(ii</u>), of the aggregate amount of all such risk retention provided by all reinsurers (other than the Florida Hurricane Catastrophe Fund); <u>provided</u>, <u>that</u>, (A) for purposes of determining whether an Event of Default exists under this <u>clause (n</u>), reinsurance provided by Non-Qualifying Reinsurers shall be *excluded* from the calculation of the aggregate amount of risk retention to the extent that the aggregate amount of reinsurance provided by Non-Qualifying Reinsurers *exceeds* ten percent (10.0%) of the aggregate amount of all reinsurance maintained by, or for the benefit of, the Regulated Entities whose Statutory Surpluses are available for payment of claims on policies issued by the Credit Parties, Subsidiaries and other Regulated Entities, and (B) no Event of Default shall arise under this <u>clause (n</u>) to the extent *solely* arising from the merger, after the Closing Date but *prior* to the renewal of the applicable reinsurance agreements, of any reinsurer into another reinsurer, so long as no party to any such merger is a Credit Party, a Subsidiary, another Regulated Entity, or an Affiliate of any of the foregoing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Dissolution</u>. Any order, judgment or decree shall be entered against any Credit Party, any Subsidiary, or any other Regulated Entity decreeing the dissolution or split up of any such Person, and such order, judgement or decree shall remain undischarged or unstayed for a period in *excess* of thirty (30) calendar days.

Section 9.2 <u>Remedies</u>. Subject to any applicable restrictions set forth in <u>Section</u> <u>9.4</u> in connection with the making of a Specified Equity Contribution, upon (a) the occurrence of an Automatic Acceleration Event of Default, automatically, and (b) the occurrence, and during the continuance, of any other Event of Default, at the request of (or with the consent of) the Required Lenders, upon notice to the Borrower by the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Revolving Commitments, if any, of each Lender having such Revolving Commitments, and the obligation of the Issuing Bank to issue any Letter of Credit, each shall immediately terminate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the DDTL Commitments, if any, of each Lender having such DDTL Commitments shall immediately terminate;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each of the following shall immediately become due and payable, in each case, without presentment, demand, protest or other requirements of any kind, all of which are hereby expressly waived by each of the Credit Parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the unpaid principal amount of, and accrued interest on, the Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) an amount equal to the maximum amount that may at any time be drawn under all Letters of Credit then outstanding (regardless of whether any beneficiary under any such Letter of Credit shall have presented, or shall be entitled at such time to present, the drafts or other documents or certificates required to draw under such Letters of Credit); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) all other Obligations;

<u>provided</u>, <u>that</u>, the foregoing <u>sub-clauses (ii)(A</u>), (<u>ii)(B</u>) and (<u>ii)(C</u>) shall *not* affect in any way the obligations of the Lenders under <u>Section</u> <u>2.2(b)(iii</u>) or <u>Section</u> <u>2.3(e</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Administrative Agent shall cause the Collateral Agent to enforce any and all Liens and security interests created pursuant to Collateral Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Administrative Agent shall direct the Borrower to pay (and the Borrower hereby agrees, upon receipt of such notice, or automatically upon the occurrence of any Automatic Acceleration Event of Default, to pay) to the Administrative Agent such additional amounts of cash, to be held as security for the Borrower's reimbursement Obligations in respect of Letters of Credit then outstanding under arrangements acceptable to the Administrative Agent, equal to the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, at such time.

Notwithstanding anything herein or otherwise to the contrary, any Event of Default occurring hereunder shall continue to exist (and shall be deemed to be continuing) until such time as such Event of Default has been cured to the satisfaction of the Required Lenders or waived in writing in accordance with the terms of <u>Section</u> <u>11.4</u>.

Section 9.3 <u>Application of Funds</u>. After the exercise of remedies provided for in <u>Section</u> <u>9.2</u> (or after the Loans have automatically become immediately due and payable), any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>First</u>*, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (other than principal, interest and Letter of Credit Fees but including without limitation all reasonable out-of-pocket fees, expenses and disbursements of any law firm or other counsel and amounts payable under <u>Section</u> <u>3.1</u>, <u>Section</u> <u>3.2</u> and <u>Section</u> <u>3.3</u>) payable to the Administrative Agent and the Collateral Agent, in each case, in its capacity as such;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Second</u>*, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders, including, without limitation, all reasonable out-of-pocket fees, expenses and disbursements of any law firm or other counsel and amounts payable under <u>Section</u> <u>3.1</u>, <u>Section</u> <u>3.2</u> and <u>Section</u> <u>3.3</u>), ratably among the Lenders in proportion to the respective amounts described in this *<u>Second clause</u>* payable to them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Third</u>*, to payment of that portion of the Obligations constituting accrued and unpaid Letter of Credit Fees and interest on the Loans, Letter of Credit Borrowings and other Obligations ratably among such parties in proportion to the respective amounts described in this *<u>Third clause</u>* payable to them; 

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Fourth</u>*, to: 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) payment of that portion of the Obligations constituting unpaid principal of the Loans and Letter of Credit Borrowings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) payment of breakage, termination or other amounts owing in respect of any Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, to the extent such Swap Agreement is permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) payments of amounts due under any Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Administrative Agent for the account of the Issuing Bank, to Cash Collateralize that portion of the Letter of Credit Obligations comprised of the aggregate undrawn amount of Letters of Credit;

ratably among such parties in proportion to the respective amounts described in this *<u>Fourth</u> <u>clause</u>* payable to them; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Last</u>*, the balance, if any, after all of the Obligations have been Paid in Full, to the Borrower or as otherwise required by Applicable Laws.

Subject to <u>Section</u> <u>2.3</u>, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to the *<u>Fourth clause</u>* above shall be applied to satisfy drawings under such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above.

Excluded Swap Obligations with respect to any Guarantor shall *not* be paid with amounts received from such Guarantor or such Guarantor's assets, but appropriate adjustments shall be made with respect to payments from other Credit Parties to preserve the allocation to Obligations otherwise set forth above in this <u>Section</u> <u>9.3</u>.

Notwithstanding anything to the contrary in the foregoing, Secured Swap Obligations and Secured Treasury Management Obligations shall be excluded from the application described above if the Administrative Agent has not received a Secured Party Designation Notice, together with such supporting documentation as the Administrative Agent may request, from the applicable Qualifying Swap Provider or Qualifying Treasury Management Bank, as the case may be. Each Qualifying Swap Provider or Qualifying Treasury Management Bank not a party to this Agreement that has given the notice contemplated by the preceding sentence shall, by such notice, be deemed to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of <u>Article 10</u> for itself and its Affiliates as if a "*Lender*" party to this Agreement.

Section 9.4 <u>Cure Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any provision to the contrary contained in this Agreement or any other Credit Document, for purposes of determining compliance with the Financial Covenants set forth in <u>Section</u> <u>8.8(a</u>) and <u>Section</u> <u>8.8(b</u>), respectively, the proceeds ("*<u>Cure Proceeds</u>*") of any cash equity contribution (which equity shall be common Equity Interests or other Equity Interests *not* constituting

------

Disqualified Equity Interests) that is made by any of the holders (direct or indirect) of outstanding Equity Interests in the Borrower to the Borrower after the end of the applicable Fiscal Quarter in respect of which such Cure Proceeds are contributed but, in any event, on or prior to the date that is fifteen (15) Business Days after the date on which financial statements have been, or are required to have been, delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>) in respect of such Fiscal Quarter (each such period, a "*<u>Cure Period</u>*"), will be included in the calculation of (and such Cure Proceeds shall increase) Consolidated EBITDA on a dollar-for-dollar basis *solely* for the limited purpose of determining compliance with the Financial Covenant set forth in <u>Section</u> <u>8.8(a</u>) and/or the Financial Covenant set forth in <u>Section</u> <u>8.8(b</u>) (as applicable) for (I) such Fiscal Quarter, and (II) any subsequent fiscal period including such Fiscal Quarter (each such contribution of Cure Proceeds, a "*<u>Specified Equity Contribution</u>*"), and, for the avoidance of doubt, such Cure Proceeds shall be disregarded and shall *not* affect the calculation of Consolidated EBITDA for all other purposes of this Agreement and the other Credit Documents (including, without limitation, for purposes of calculating compliance with any of such Financial Covenants with respect to any other fiscal period, calculating compliance with the Financial Covenant set forth in <u>Section</u> <u>8.8(c</u>) with respect to any fiscal period, calculation of the Applicable Margin, calculation of availability under any Financial Covenant-related basket, carveout or exception set forth in this Agreement or any other Credit Document, or calculation of compliance, on a Pro Forma Basis or otherwise, with any financial ratio-based test or condition related to determining whether the consummation of any Specified Transaction is permitted under this Agreement or any other Credit Document), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) with respect to each fiscal period consisting of two (2) consecutive full Fiscal Quarters, there shall be *at least* one (1) Fiscal Quarter during such period in respect of which no Specified Equity Contribution is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there shall be *no more than* five (5) Specified Equity Contributions made in the aggregate during the term of this Agreement (it being understood and agreed that, in the event that a Specified Equity Contribution is made in respect of multiple Financial Covenants each measured as of the end of a single Fiscal Quarter, then such Specified Equity Contribution for such Fiscal Quarter shall count as a single Specified Equity Contribution for purposes of this <u>clause (a)(ii</u>));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate amount of Cure Proceeds contributed in respect of any individual Specified Equity Contribution shall be *no greater than* the minimum amount required to cause the Credit Parties to be in compliance with the applicable Financial Covenant(s) for the applicable Fiscal Quarter in respect of which such Specified Equity Contribution is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all Specified Equity Contributions shall be disregarded for purposes of the calculation of Consolidated EBITDA for all purposes of this Agreement and the other Credit Documents, other than for the express purpose(s), and for the applicable period(s), as described in the foregoing of this <u>Section</u> <u>9.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) there shall be no *pro forma* or other reduction in Indebtedness, through either the netting of cash or prepayment of the Term Loans or otherwise, with any Cure Proceeds received by any Credit Party, any Subsidiary or any other Regulated Entity in respect of any Specified Equity Contribution for purposes of determining compliance with the Financial Covenants for any period(s) in respect of which such Specified Equity Contribution is included in Consolidated EBITDA in accordance with this <u>clause (a</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Borrower shall prepay the Obligations with the Cure Proceeds received by any Credit Party, any Subsidiary or any Regulated Entity in connection with any Specified Equity Contribution in accordance with <u>Section</u> <u>2.11(c)(iv</u>).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary contained in this Agreement or any other Credit Document, upon the Administrative Agent's receipt of written notice from the Borrower that it intends, prior to the expiration of the applicable Cure Period (relating to the applicable Fiscal Quarter with respect to which the applicable Financial Covenant violation(s) relate), to effect an equity cure pursuant to this <u>Section</u> <u>9.4</u> (any such notice being irrevocable) and until the expiration of such Cure Period, and *solely* to the extent that no Event of Default exists at such time (other than in respect of a Financial Covenant tested for such Fiscal Quarter), neither the Administrative Agent nor any Lender shall be permitted to (i) accelerate the Obligations, (ii) terminate the Commitments, (iii) impose Default Interest, or (iv) exercise remedies under the Credit Documents (including against the Collateral), in each case of the foregoing <u>clauses (b)(i</u>) through (<u>b)(iv</u>), *solely* as a result of such Event(s) of Default resulting from a violation of any Financial Covenant(s) tested for such Fiscal Quarter. Notwithstanding anything to the contrary in the foregoing, no Lender shall be required to make any Loan, and the Issuing Bank shall *not* be required to issue any Letter of Credit, from and after the last day of the applicable Fiscal Quarter (with respect to which the breach of an applicable Financial Covenant(s) has occurred) until the date on which the applicable Credit Party, Subsidiary or other Regulated Entity shall have received the Cure Proceeds in accordance with this <u>Section</u> <u>9.4</u>.

**Article 10** 

**<u>AGENCY</u>** 

Section 10.1 <u>Appointment and Authority</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Lenders and the Issuing Bank hereby irrevocably appoints Regions Bank to act on its behalf as the Administrative Agent hereunder and under the other Credit Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this <u>Article 10</u> are *solely* for the benefit of the Administrative Agent, the Lenders and the Issuing Bank, and no Credit Party, Subsidiary or other Regulated Entity shall have rights as a third party beneficiary of any of such provisions. It is understood and agreed that the use of the term "*agent*" herein or in any other Credit Documents (or any other similar term) with reference to the Administrative Agent is *not* intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Lenders hereby irrevocably appoints, designates and authorizes the Collateral Agent to take such action on its behalf under the provisions of this Agreement and each Collateral Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any Collateral Document, together with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any Collateral Document, the Collateral Agent shall not have any duties or responsibilities, except those expressly set forth herein or therein, nor shall the Collateral Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any Collateral Document or otherwise exist against the Collateral Agent. Without limiting the generality of the foregoing sentence, the use of the term "*agent*" herein and in the Collateral Documents with reference to the Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between

------

independent contracting parties. The Collateral Agent shall act on behalf of the Lenders with respect to any Collateral and the Collateral Documents, and the Collateral Agent shall have all of the benefits and immunities: (i) provided to the Administrative Agent under the Credit Documents with respect to any acts taken or omissions suffered by the Collateral Agent in connection with any Collateral or the Collateral Documents as fully as if the term "*Administrative Agent*" as used in such Credit Documents included the Collateral Agent with respect to such acts or omissions; and (ii) as additionally provided herein or in the Collateral Documents with respect to the Collateral Agent.

Section 10.2 <u>Rights as a Lender</u>. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender, and may exercise the same as though it were *not* the Administrative Agent, and the term "*Lender*" or "*Lenders*" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with, the Borrower, any Subsidiary or other Affiliate of the Borrower or any other Regulated Entity, as if such Person were *not* the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

Section 10.3 <u>Exculpatory Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Credit Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall *not* have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Credit Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Credit Documents), <u>provided</u>, <u>that</u>, the Administrative Agent shall *not* be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Credit Document or Applicable Law, including, for the avoidance of doubt, any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall *not*, except as expressly set forth herein and in the other Credit Documents, have any duty to disclose, and shall *not* be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall *not* be liable for any action taken or not taken by it: (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in <u>Section</u> <u>11.4</u> and <u>Section</u> <u>9.2</u>); or (ii) in the absence of its own gross negligence or willful misconduct, as determined by a court of competent jurisdiction by final and non-appealable judgment. The Administrative Agent shall be deemed *not* to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent in writing by the Borrower, a Lender or the Issuing Bank.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall *not* be responsible for or have any duty to ascertain or inquire into:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any statement, warranty or representation made in or in connection with this Agreement or any other Credit Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Credit Document or any other agreement, instrument or document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the satisfaction of any condition set forth in <u>Article 5</u> or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent and any assignor of a Loan or seller of a participation hereunder shall be entitled to rely conclusively on a representation of the assignee Lender or Participant in any document delivered in connection with this Agreement, including, without limitation, the relevant Assignment Agreement or participation agreement, as applicable, that such assignee or purchaser is not a Disqualified Institution. The Administrative Agent shall *not* be responsible or have any liability for, or have any duty to ascertain, inquire into, monitor or enforce, compliance with the provisions hereof relating to Disqualified Institutions. Without limiting the generality of the foregoing, the Administrative Agent shall not (x) be obligated to ascertain, monitor or inquire as to whether any Lender or Participant or prospective Lender or Participant is a Disqualified Institution, or (y) have any liability with respect to or arising out of any assignment or participation of Loans, or disclosure of confidential information, to any Disqualified Institution.

Section 10.4 <u>Reliance by Administrative Agent</u>. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the Issuing Bank, the Administrative Agent may presume that such condition is satisfactory to such Lender or the Issuing Bank unless the Administrative Agent shall have received notice to the contrary from such Lender or the Issuing Bank prior to the making of such Loan or the issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower and its Subsidiaries), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

------

Section 10.5 <u>Delegation of Duties</u>. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Credit Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this <u>Section</u> <u>10.5</u> shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

Section 10.6 <u>Resignation of Administrative Agent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent may at any time give notice of its resignation to the Lenders, the Issuing Bank and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an office in the United States (but which shall not be a Disqualified Institution), or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the "*<u>Resignation Effective Date</u>*"), then the retiring Administrative Agent may (but shall not be obligated to) on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent meeting the qualifications set forth above. Whether or not a successor has been appointed such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Person serving as Administrative Agent is a Defaulting Lender pursuant to <u>clause</u> <u>(d</u>) of the definition thereof, the Required Lenders may, to the extent permitted by Applicable Law by notice in writing to the Borrower and such Person remove such Person as the Administrative Agent and, in consultation with the Borrower, appoint a successor. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days (or such earlier day as shall be agreed by the Required Lenders (the "*<u>Removal Effective Date</u>*")), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With effect from the Resignation Effective Date or the Removal Effective Date (as applicable): (1) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Credit Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders or the Issuing Bank under any of the Credit Documents, the retiring or removed Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed); and (2) except for any indemnity payments owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and the Issuing Bank directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments owed to the retiring or removed Administrative Agent), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Credit Documents (if not already discharged therefrom as provided above in this Section). The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor, unless otherwise agreed between the Borrower and such successor. After the retiring or removed Administrative Agent's

------

resignation or removal hereunder and under the other Credit Documents, the provisions of this <u>Article 10</u> and <u>Section</u> <u>11.2</u> shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.

Section 10.7 <u>Non-Reliance on Administrative Agent and Other Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Lenders and the Issuing Bank acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each of the Lenders and the Issuing Bank also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Credit Document or any related agreement or any document furnished hereunder or thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Lender hereby represents and warrants that: (i) (A) the Credit Documents set forth the terms of a commercial lending facility, and (B) such Lender is engaged in the making, acquiring or holding of commercial loans in the ordinary course, and is entering into this Agreement as a Lender for the purpose of making, acquiring or holding commercial loans and providing other credit facilities as set forth in this Agreement, as may be applicable to such Lender, and *not*, in any event, for the purpose of purchasing, acquiring or holding any other type of financial instrument or any security; and (ii) such Lender is sophisticated with respect to decisions to make, acquire and/or hold commercial loans and to provide other credit facilities as set forth in this Agreement, as may be applicable to such Lender, and either it, or the Person exercising discretion in making its decision to make, acquire and/or hold such commercial loans, and/or to provide such other credit facilities, as the case may be, is experienced in making, acquiring or holding such commercial loans and/or providing such other credit facilities. Each Lender agrees *not* to assert a claim in contravention of any of the foregoing of this <u>clause (b</u>).

Section 10.8 <u>No Other Duties, etc</u>. Anything herein to the contrary notwithstanding, none of the Arrangers, Co-Documentation Agents or Syndication Agent listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Credit Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or the Issuing Bank hereunder.

Section 10.9 <u>Administrative Agent May File Proofs of Claim</u>. In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or Letter of Credit Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, Letter of Credit Obligations and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the Issuing Bank and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the Issuing Bank and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the Issuing Bank and the Administrative Agent under <u>Section</u> <u>2.10</u> and <u>Section</u> <u>11.2</u>) allowed in such judicial proceeding; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and the Issuing Bank to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders and the Issuing Bank, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under <u>Section</u> <u>2.10</u> and <u>Section</u> <u>11.2</u>).

Section 10.10 <u>Collateral and Guaranty Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Lenders (including the Issuing Bank and the Swingline Lender) irrevocably authorize the Administrative Agent and the Collateral Agent, at its option and in its discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to release any Lien on any Property granted to, or held under, any Credit Document securing the Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) upon the Payment in Full of the Obligations under this Agreement and the other Credit Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) that is sold or otherwise disposed of, or to be sold or otherwise disposed of, as part of, or in connection with, any sale or other disposition permitted under the Credit Documents or consented to in accordance with the terms of this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) subject to <u>Section</u> <u>11.4</u>, if approved, authorized or ratified in writing by the Required Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to subordinate any Lien on any Property granted to, or held under, any Credit Document securing the Obligations to the holder of any Lien on such Property that is permitted by <u>Section</u> <u>8.2(m</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to release any Guarantor from its obligations under this Agreement and the other Credit Documents if such Person ceases to be a Guarantor as a result of a transaction permitted under the Credit Documents.

Upon request by the Administrative Agent or the Collateral Agent at any time, the Required Lenders will confirm in writing the Administrative Agent's authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under this Agreement pursuant to this <u>Section</u> <u>10.10</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall *not* be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Administrative Agent's Lien thereon, or any certificate prepared by any Credit Party in connection therewith, nor shall the Administrative Agent be responsible or liable to the Lenders for any failure to monitor or maintain any portion of the Collateral.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Anything contained in any of the Credit Documents to the contrary notwithstanding, each of the Credit Parties, the Administrative Agent, the Collateral Agent and each holder of the Obligations hereby agree that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no holder of the Obligations shall have any right individually to realize upon any of the Collateral or to enforce this Agreement, the Notes or any other Credit Document, it being understood and agreed that all powers, rights and remedies hereunder may be exercised *solely* by the Administrative Agent, on behalf of the holders of the Obligations in accordance with the terms hereof and all powers, rights and remedies under the Collateral Documents may be exercised *solely* by the Collateral Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event of a foreclosure by the Collateral Agent on any of the Collateral pursuant to a public or private sale or other disposition, the Collateral Agent or any Lender may be the purchaser of any or all of such Collateral at any such sale or other disposition, and the Collateral Agent, as agent for and representative of the holders of the Obligations (but *not* any Lender or Lenders in its or their respective individual capacities, unless the Required Lenders shall otherwise agree in writing) shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all, or any portion, of the Collateral sold at any such public sale, to use and apply any of the Obligations as a credit on account of the purchase price for any collateral payable by the Collateral Agent at such sale or other disposition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Secured Swap Agreement or Secured Treasury Management Agreement will create (or be deemed to create) in favor of any Qualifying Swap Provider or any Qualifying Treasury Management Bank, respectively that is a party thereto any rights in connection with the management or release of any Collateral or of the obligations of the Borrower or any other Credit Party under the Credit Documents except as expressly provided herein or in the other Credit Documents. By accepting the benefits of the Collateral, each such Qualifying Swap Provider and Qualifying Treasury Management Bank shall be deemed to have appointed the Collateral Agent as its agent and agreed to be bound by the Credit Documents as a holder of the Obligations, subject to the limitations set forth in this <u>clause (d</u>). Furthermore, it is understood and agreed that the Qualifying Swap Provider and Qualifying Treasury Management Banks, in their capacity as such, shall *not* have any right to notice of any action or to consent to, direct or object to any action hereunder or under any of the other Credit Documents or otherwise in respect of the Collateral (including the release or impairment of any Collateral, or to any notice of or consent to any amendment, waiver or modification of the provisions hereof or of the other Credit Documents) other than in its capacity as a Lender and, in any case, only as expressly provided herein.

Section 10.11 <u>Erroneous Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Administrative Agent notifies a Lender, the Issuing Bank, any other holder(s) of the Obligations or any other Person(s) who has received funds on behalf of a Lender, the Issuing Bank or any other holder(s) of the Obligations (any such Lender, Issuing Bank, other holder(s) of the Obligations or other recipient(s), a "*<u>Payment Recipient</u>*") that the Administrative Agent has determined in its sole discretion (whether or not after its receipt of any notice delivered pursuant to <u>clause (b</u>) below) that any funds received by such Payment Recipient from the Administrative Agent, or any of its Affiliates, were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient on its behalf) (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "*<u>Erroneous Payment</u>*") and demands the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall, at all times, remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in *no* event *later than* two (2) Business Days thereafter, return to the Administrative Agent the amount of

------

any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from, and including, the date on which such Erroneous Payment (or portion thereof) was received by such Payment Recipient to, and including, the date on which such amount is repaid to the Administrative Agent in same day funds at the *greater of* the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice delivered from the Administrative Agent to any Payment Recipient pursuant to this <u>clause (a</u>) shall be conclusive and binding, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting anything in the immediately foregoing <u>clause (a</u>), each Lender, the Issuing Bank, each other holder(s) of the Obligations party hereto and each other Payment Recipient party hereto hereby further agrees that, if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (I) that is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (II) that was *not* preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (III) that such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient(s) otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part), in each case of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) in any such case of the immediately preceding <u>clauses (b)(I</u>) or (b)(<u>II</u>), an error shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary), or (B) in any such case of the immediately preceding <u>clause (b)(III</u>), an error has been made, in each case of the foregoing <u>clauses (b)(i)(A</u>) and (<u>b)(i)(B</u>), with respect to such payment, prepayment or repayment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient(s) shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in any event, within one (1) Business Day of its obtaining knowledge of such error) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this <u>clause (b</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Lender, the Issuing Bank, each other holder of the Obligations party hereto and each other Payment Recipient party hereto hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s) under any Credit Document, or otherwise payable or distributable by the Administrative Agent to such Lender, the Issuing Bank, such other holder(s) of the Obligations and/or such other Payment Recipient(s) from any source, against any amount due to the Administrative Agent under immediately preceding <u>clause (a</u>) or under the indemnification provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that an Erroneous Payment (or portion thereof) is *not* recovered by the Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance with foregoing <u>clause (a</u>), from any Lender, the Issuing Bank, any other holder(s) of the Obligations or any other Payment Recipient(s) that has received such Erroneous Payment (or portion thereof) (and/or from any other recipient who received such Erroneous Payment (or portion thereof) on the respective behalf of any of the foregoing) (such unrecovered amount, an "*<u>Erroneous Payment Return Deficiency</u>*"), upon the Administrative Agent's notice to such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, at any time: (i) such Lender, the

------

Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, shall be deemed to have assigned (to the extent it has any such Loans) its Loans (but *not* its Commitments) of the relevant Class with respect to which such Erroneous Payment was made (the "*<u>Erroneous Payment Impacted Class</u>*") in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of such Loans (but *not* Commitments) of the Erroneous Payment Impacted Class, the "*<u>Erroneous Payment Deficiency</u> <u>Assignment</u>*") at par *plus* any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance), and such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, is hereby (together with the Borrower) deemed to have executed and delivered an Assignment Agreement (or, to the extent applicable, an agreement incorporating an Assignment Agreement by reference pursuant to Debtdomain, Intralinks, Syndtrak, or a substantially similar electronic transmission system as to which the Administrative Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and <u>further</u>, such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, shall deliver any Note(s) evidencing any such Loans to the Administrative Agent; (ii) the Administrative Agent, as the assignee Lender, shall be deemed to acquire the Erroneous Payment Deficiency Assignment; (iii) upon such deemed acquisition, the Administrative Agent, as the assignee Lender, shall become a Lender, the Issuing Bank or such other type of holder of the Obligations, as the case may be, hereunder with respect to such Erroneous Payment Deficiency Assignment, and <u>further</u>, the assigning Lender, the Issuing Bank or such other holder(s) of the Obligations shall cease to be a Lender, the Issuing Bank or such other holder of the Obligations, as the case may be, hereunder with respect to such Erroneous Payment Deficiency Assignment, but *excluding*, for the avoidance of doubt, such Person's obligations under the indemnification provisions of this Agreement and its applicable Commitments, which shall survive as to such assigning Lender, Issuing Bank or other holder(s) of the Obligations; and (iv) the Administrative Agent may reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. The Administrative Agent may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and, upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender, the Issuing Bank, the other applicable holder(s) of the Obligations or the other such applicable Payment Recipient(s), as the case may be, shall be *reduced* by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be (and/or against any recipient that receives funds on the respective behalf of any of the foregoing). For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender or the Issuing Bank, and such Commitments shall remain available in accordance with the terms of this Agreement. In addition, each party hereto agrees that, except to the extent that the Administrative Agent has sold a Loan (or portion thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and irrespective of whether the Administrative Agent may be equitably subrogated, the Administrative Agent shall be contractually subrogated to all of the rights and interests of the applicable Lender, the Issuing Bank or any other applicable holder(s) of the Obligations under the Credit Documents with respect to each Erroneous Payment Return Deficiency (the "*<u>Erroneous Payment Subrogation Rights</u>*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each of the parties hereto agree that an Erroneous Payment shall *not* pay, prepay, repay, discharge, or otherwise satisfy any Obligations owed by the Borrower or any other Credit Party, except, in each case, to the extent that such Erroneous Payment is, and *solely* with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrower or any other Credit Party for the purpose of making such Erroneous Payment.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent permitted by Applicable Law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and each party hereto, to the extent constituting a Payment Recipient, hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including, without limitation, waiver of any defense based on "*discharge for value*" or any similar doctrine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each party's respective obligations, agreements and waivers under this <u>Section</u> <u>10.11</u> shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, any Lender, the Issuing Bank or any other holder(s) of the Obligations, the termination of any or all of the Commitments, and/or the repayment, satisfaction or discharge of any or all of the Obligations (or any portion thereof) under any Credit Document.

**Article 11** 

**<u>MISCELLANEOUS</u>** 

Section 11.1 <u>Notices; Effectiveness; Electronic Communications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices Generally</u>. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in <u>clause (b</u>) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier or electronic mail as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Administrative Agent, the Borrower or any other Credit Party, to the address, telecopier number, electronic mail address or telephone number specified in <u>Appendix B</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to any Lender, the Issuing Bank or the Swingline Lender, to the address, telecopier number, electronic mail address or telephone number in its Administrative Questionnaire on file with the Administrative Agent.

Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by telecopier shall be deemed to have been given when sent (except that, if *not* given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices and other communications delivered through electronic communications to the extent provided in <u>clause (b</u>) below, shall be effective as provided in <u>clause (b</u>) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Electronic Communications</u>. Notices and other communications to the Lenders and the Issuing Bank hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, <u>provided</u>, <u>that</u>, the foregoing shall *not* apply to notices to any Lender or the Issuing Bank pursuant to <u>Article 2</u> if such Lender or the Issuing Bank, as applicable, has notified the Administrative Agent and the Borrower that it is incapable of receiving notices under such Article by electronic communication. The Administrative Agent or any Credit Party may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, <u>provided</u>, <u>that</u>, approval of such procedures may be limited to particular notices or communications.

------

Unless the Administrative Agent otherwise prescribes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "*return receipt requested*" function, as available, return e-mail or other written acknowledgement); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing <u>clause (b)(i</u>) of notification that such notice or communication is available and identifying the website address therefor,

<u>provided</u>, <u>that</u>, with respect to <u>clauses (b)(i</u>) and (<u>b)(ii</u>) above, if such notice or other communication is *not* sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Change of Address, Etc</u>. Any party hereto may change its address or telecopier number for notices and other communications hereunder by notice to the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Platform</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Credit Party agrees that the Administrative Agent may, but shall *not* be obligated to, make the Communications (as defined below) available to the Issuing Bank and the other Lenders by posting the Communications on Debtdomain, Intralinks, Syndtrak or a substantially similar electronic transmission system (the "*<u>Platform</u>*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Platform is provided "*as is*" and "*as available*". The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or the Platform. In no event shall the Administrative Agent or any of its Related Parties (collectively, the "*<u>Agent Parties</u>*") have any liability to the Borrower or the other Credit Parties, any Lender or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower's, any other Credit Party's or the Administrative Agent's transmission of communications through the Platform. "*<u>Communications</u>*" means, collectively, any notice, demand, communication, information, document or other material provided by, or on behalf of, any Credit Party pursuant to any Credit Document or the transactions contemplated therein which is distributed to the Administrative Agent, any Lender or the Issuing Bank by means of electronic communications pursuant to this Section, including through the Platform.

Section 11.2 <u>Expenses; Indemnity; Damage Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Costs and Expenses</u>. The Credit Parties shall pay, on a joint and several basis, each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all reasonable and documented costs and out-of-pocket expenses incurred by the Administrative Agent and its Affiliates (which, in the case of legal counsel, shall be limited to the reasonable fees, charges and disbursements of one primary counsel for the Administrative Agent,

------

the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, one local counsel to the Administrative Agent, the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) if reasonably deemed necessary by the Administrative Agent, and, *solely* in the case of an actual or perceived conflict of interest, one additional primary counsel and, if reasonably deemed necessary by the Administrative Agent (or the relevant Lender or Lenders, as applicable), one additional counsel in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) for each group of such affected Persons similarly situated, taken as a whole) in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Credit Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all reasonable and documented costs and out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all reasonable and documented costs and out-of-pocket expenses incurred by the Administrative Agent, any Lender or the Issuing Bank (which, in the case of legal counsel, shall be limited to the reasonable fees, charges and disbursements of one primary counsel for the Administrative Agent, the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, one local counsel to the Administrative Agent, the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) if reasonably deemed necessary by the Administrative Agent, and, *solely* in the case of an actual or perceived conflict of interest, one additional primary counsel and, if reasonably deemed necessary by the Administrative Agent (or the relevant Lender or Lenders, as applicable), one additional counsel in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) for each group of such affected Persons similarly situated, taken as a whole) in connection with the enforcement or protection of its rights:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in connection with this Agreement and the other Credit Documents, including its rights under this Section; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification by the Credit Parties</u>. The Credit Parties shall indemnify, on a joint and several basis, the Administrative Agent (and any sub-agent thereof), the Collateral Agent (and any sub-agent thereof), each Lender and the Issuing Bank, and each Related Party of any of the foregoing Persons (each such Person being called an "*<u>Indemnitee</u>*") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (which, in the case of legal counsel, shall be limited to the reasonable fees, charges and disbursements of one primary counsel for the Indemnitees, taken as a whole, and of one special and local counsel to the Indemnitees, taken as a whole, in each applicable jurisdiction retained by the Administrative Agent and/or the Collateral Agent, and, in the event of any actual or potential conflict of interest, one additional primary, special and local counsel, as applicable, for each Indemnitee subject to a conflict), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Borrower or any other Credit Party) other than such Indemnitee or its Related Parties arising out of, in connection with, or as a result of:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the execution or delivery of this Agreement, any other Credit Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by any Credit Party, any Subsidiary or any other Regulated Entity, or any Environmental Liability related in any way to any Credit Party, any Subsidiary or any other Regulated Entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing <u>sub-clauses (b)(i</u>), (<u>b)(ii</u>), or (<u>b)(iii</u>), whether based on contract, tort or any other theory, whether brought by a third party or by any Credit Party, any Subsidiary or any other Regulated Entity, and regardless of whether any Indemnitee is a party thereto;

<u>provided</u>, <u>that</u>, such indemnity shall *not*, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses: (x) are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee; or (y) result from a claim brought by the Borrower or any Credit Party against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder or under any other Credit Document, if the Borrower or such Credit Party has obtained a final and non-appealable judgment in its favor on such claim as determined by a court of competent jurisdiction. This <u>clause (b</u>) shall *not* apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Reimbursement by Lenders</u>. To the extent that the Credit Parties for any reason fail to indefeasibly pay any amount required under <u>clauses (a</u>) or (<u>b</u>) above to be paid by it to the Administrative Agent (or any sub-agent thereof), the Collateral Agent (or any sub-agent thereof), the Issuing Bank or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the Collateral Agent (or any such sub-agent), the Issuing Bank or such Related Party, as the case may be, such Lender's *pro rata* share (in each case, determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount, <u>provided</u>, <u>that</u>, the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or the Issuing Bank in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) or the Issuing Bank in connection with such capacity. The obligations of the Lenders under this <u>clause (c</u>) are subject to the provisions of this Agreement that provide that their obligations are several in nature, and not joint and several.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Waiver of Consequential Damages, Etc</u>. To the fullest extent permitted by Applicable Law, none of the Credit Parties shall assert, and each hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Credit

------

Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof. No Indemnitee referred to in <u>clause (b</u>) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Credit Documents or the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payments</u>. All amounts due under this Section shall be payable promptly, but in any event within ten (10) Business Days after written demand therefor (including delivery of copies of applicable invoices, if any).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Survival</u>. The provisions of this Section shall survive resignation or replacement of the Administrative Agent, Collateral Agent, the Issuing Bank, the Swingline Lender or any Lender, termination of the commitments hereunder and repayment, satisfaction and discharge of the loans and obligations hereunder.

Section 11.3 <u>Set-Off</u>. If an Event of Default shall have occurred and be continuing, each Lender, the Issuing Bank, and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, the Issuing Bank or any such Affiliate to or for the credit or the account of the Borrower or any other Credit Party against any and all of the obligations of the Borrower or such Credit Party now or hereafter existing under this Agreement or any other Credit Document to such Lender, the Issuing Bank or their respective Affiliates, irrespective of whether or not such Lender, the Issuing Bank or such Affiliate shall have made any demand under this Agreement or any other Credit Document and although such obligations of the Borrower or such Credit Party may be contingent or un-matured or are owed to a branch, office or Affiliate of such Lender or the Issuing Bank different from the branch or office holding such deposit or obligated on such indebtedness; <u>provided</u>, <u>that</u>, in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of <u>Section</u> <u>2.16</u> and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing Bank, and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender, the Issuing Bank and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, the Issuing Bank or their respective Affiliates may have. Each of the Lenders and the Issuing Bank agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application, <u>provided</u>, <u>that</u>, the failure to give such notice shall *not* affect the validity of such setoff and application.

Section 11.4 <u>Amendments and Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Required Lenders' Consent</u>. Subject to <u>clauses (b</u>) and (<u>c</u>) below, no amendment, modification, termination or waiver of any provision of the Credit Documents, or consent to any departure by any Credit Party therefrom, shall in any event be effective without the written concurrence of the Administrative Agent and the Required Lenders, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each of the Fee Letter and any Auto Borrow Agreement may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitments, Loans and/or Letter of Credit Obligations of such Lender may *not* be increased or extended without the consent of such Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each Lender is entitled to vote as such Lender sees fit on any bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the provisions of Section 1126(c) of the Bankruptcy Code of the United States supersedes the unanimous consent provisions set forth herein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Required Lenders shall determine whether or not to allow any Credit Party to use cash collateral in the context of a bankruptcy or insolvency proceeding and such determination shall be binding on all of the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Affected Lenders' Consent</u>. Without the written consent of each Lender (other than a Defaulting Lender except as provided in <u>clause (a)(ii</u>) above) that would be affected thereby (it being understood and agreed, for purposes of clarity, that all Lenders shall be deemed to be affected Lenders for purposes of any amendment, modification, termination, or consent described in <u>clauses (b)(v</u>), (<u>b)(vii</u>), (<u>b)(viii</u>) and (<u>b)(ix</u>) below), but subject to <u>Section</u> <u>3.1(a</u>), no amendment, modification, termination, or consent shall be effective if the effect thereof would be to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) extend the Revolving Commitment Termination Date, the DDTL Commitment Termination Date, or any Maturity Date, or otherwise postpone the scheduled date for the termination or reduction of any Commitment of a Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) waive, reduce the amount (or the amount payable in cash) of, or postpone or extend the time for payment (in cash or otherwise) of, any scheduled (including at maturity) payment or repayment (other than any mandatory prepayment) in respect of any Loan, Letter of Credit or other Obligation, whether of principal, interest, fees, reimbursement obligations or other amounts, or otherwise reduce the rate of interest applicable thereto; <u>provided</u>, <u>that</u>, only the consent of the Required Lenders shall be necessary to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) waive any imposition of the Default Rate pursuant to <u>Section</u> <u>2.9</u>, amend the definition of "*Default Rate*" in <u>Section</u> <u>1.1</u>, or otherwise waive any obligation of the Borrower to pay interest at the Default Rate; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) amend any Financial Covenant (or any defined term used therein) even if the effect of such amendment would be to reduce the rate of interest on any Loan or to reduce any fee payable hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) change the provisions of: (A) <u>Section</u> <u>2.12</u>, <u>Section</u> <u>2.14</u> or <u>Section</u> <u>9.3</u> in any respect; or (B) <u>Section</u> <u>2.11</u> in any manner that would alter the *pro rata* sharing of payments, the *pro rata* reduction of Commitments, and/or the order of application of funds or proceeds required thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) extend the stated expiration date of any Letter of Credit beyond the Revolving Commitment Termination Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amend, modify, terminate, or waive any provision of this <u>clause (b</u>), any provision of the below <u>clause (c</u>), or any other provision of this Agreement that expressly provides that the consent of all Lenders, or of all affected Lenders, is required to amend, modify, terminate, or waive such provision;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) amend the definitions of "*Required DDTL Lenders*", "*Required Lenders*" or "*Required Revolving Lenders*" in <u>Section</u> <u>1.1</u>, or otherwise change the percentage of the Total Credit Exposures (or any component(s) thereof) of all of the Lenders that is required for the Lenders, or any of them, to take any action hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) (A) release all, or substantially all, of the Guarantors from their respective obligations hereunder, or (B) limit the liability of such Guarantors under <u>Article 4</u> or under any other guaranty agreement Guaranteeing the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) release all, or substantially all, of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) consent to the assignment or transfer by the Borrower of any of its rights and obligations under any Credit Document, or otherwise to the release of the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) subordinate (or consent to the subordination of), in whole or in part, (A) any of the Liens in favor of the Collateral Agent, for the benefit of the holders of the Obligations, securing any or all of the Obligations to any Liens securing any Indebtedness, or (B) any of the Obligations in right of payment to any Indebtedness, in each case of the foregoing <u>clauses</u> <u>(b)(x)(A</u>) and (<u>b)(x)(B</u>), other than as expressly permitted by this Agreement as in effect on the Closing Date with respect to Indebtedness of the type described in <u>Section</u> <u>8.1(e</u>) (as in effect on the Closing Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Consents</u>. No amendment, modification, termination or waiver of any provision of the Credit Documents, or consent to any departure by the Borrower or any other Credit Party therefrom, shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) increase any Commitment of any Lender over the amount thereof then in effect (or otherwise reinstate any previously terminated Commitment of any Lender) without the consent of such Lender; <u>provided</u>, <u>that</u>, no amendment, modification or waiver of any condition precedent, covenant, Default or Event of Default shall constitute an increase in any Commitment of any Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) amend, modify, terminate or waive any provision hereof relating to the Swingline Sublimit or the Swingline Loans without the consent of the Swingline Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) amend, modify, terminate or waive any obligation of Lenders relating to the purchase of participations in Letters of Credit as provided in <u>Section</u> <u>2.3(e</u>) without the written consent of the Administrative Agent and of the Issuing Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) amend, modify, terminate or waive any provision of this <u>Article 11</u> as the same applies to the Administrative Agent, or any other provision hereof as the same applies to the rights or obligations of the Administrative Agent, in each case, without the consent of the Administrative Agent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amend, modify, terminate or waive any condition precedent to the obligation of each Lender to fund its respective Commitment Percentage of any Credit Extension on any Credit Date set forth in <u>Section</u> <u>5.2</u>, without the consent of the Required Revolving Lenders (in the case of the making of a Revolving Loan or the issuing or extending of a Letter of Credit) or the

------

Required DDTL Lenders (in the case of the making of an advance under the Delayed Draw Term Loan), as applicable (it being understood and agreed that the consent of the Required Lenders, in addition to the consent of the Required DDTL Lenders or the Required Revolving Lenders (as applicable), shall *not* be required for any such amendment, modification, termination or waiver).

Notwithstanding any of the foregoing to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) this Agreement may be amended: (I) to implement technical, administrative and/or mechanical changes pursuant to an Incremental Facility Agreement effected in accordance with <u>Section</u> <u>2.1(e)(ii</u>); (II) to effect Conforming Changes in accordance with <u>Section</u> <u>2.7(i</u>); and (III) in connection with the implementation of a Benchmark Replacement and/or any related Conforming Changes, all as provided in <u>Section</u> <u>3.1(g</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Borrower and the other Credit Parties shall *not* be required for any amendment, modification or waiver of the provisions of <u>Article 10</u> (other than the provisions of <u>Section</u> <u>10.6</u> or <u>Section</u> <u>10.10</u>), so long as such amendment is *not* adverse to the interests of the Borrower and the other Credit Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the Credit Parties, the Administrative Agent and/or the Collateral Agent, without the consent of any Lender, may enter into any amendment, modification or waiver of any Credit Document, or enter into any new agreement or instrument, to effect the granting, perfection, protection, expansion or enhancement of any security interest in any Collateral or additional property to become Collateral for the benefit of the holders of the Obligations, or as required by local law to give effect to, or protect any security interest for the benefit of the holders of the Obligations, in any property or so that the security interests therein comply with Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the Administrative Agent, the Collateral Agent, and the Borrower may amend, modify or supplement this Agreement or any other Credit Document to cure or correct administrative or technical errors or omissions or any ambiguity, mistake, defect, inconsistency or obvious error, or to make any necessary or desirable administrative or technical change, and such amendment shall become effective without any further consent of any other party to such Credit Document, so long as such amendment, modification or supplement does *not* adversely affect the rights of any Lender or any other holder of the Obligations in any material respect, if the same is *not* objected to in writing by the Required Lenders within five (5) Business Days following receipt of notice thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) this Agreement may be amended and restated without the consent of any Lender (but with the consent of the Borrower and the Administrative Agent) if, upon giving effect to such amendment and restatement, such Lender shall no longer be a party to this Agreement (as so amended and restated), the Commitments of such Lender shall have terminated, such Lender shall have no other commitment or other obligation hereunder, and shall have been paid in full all principal, interest and other amounts owing to it, or accrued for its account, under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Execution of Amendments, etc</u>. The Administrative Agent may, but shall have no obligation to, with the concurrence of any Lender, execute amendments, modifications, waivers or consents on behalf of such Lender. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on any Credit Party in any

------

case shall entitle any Credit Party to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver or consent effected in accordance with this <u>Section</u> <u>11.4</u> shall be binding upon the Administrative Agent, each Lender at the time outstanding, each future Lender and, if signed by the Borrower, on the Borrower.

Section 11.5 <u>Successors and Assigns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors and Assigns Generally</u>. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Credit Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to an assignee in accordance with the provisions of <u>clause (b</u>) below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) by way of participation in accordance with the provisions of <u>clause (d</u>) below; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) by way of pledge or assignment of a security interest subject to the restrictions of <u>clause (e</u>) below (and any other attempted assignment or transfer by any party hereto shall be null and void).

Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in <u>clause (d</u>) below and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignments by Lenders</u>. Any Lender may, at any time, assign to one or more assignees (other than to any Disqualified Institution) all, or a portion, of its rights and obligations under this Agreement (including all, or a portion, of its Commitments, Loans and obligations hereunder at the time owing to it), <u>provided</u>, <u>that</u>, any such assignment shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Minimum Amounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in the case of an assignment of the entire remaining amount of the assigning Lender's Commitments and Loans at the time owing to it of the relevant Class or contemporaneous assignments to Approved Funds (that equal *at least* the amounts specified in <u>clause (b)(i)(B</u>) below in the aggregate) or, in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in any case *not* described in <u>clause (b)(i)(A</u>) above, the aggregate amount of the Commitment(s), and/or the aggregate outstanding principal balance of the Loan(s), of the relevant Class of the assigning Lender subject to such assignment (determined as of the date the Assignment Agreement evidencing such assignment tis delivered to the Administrative Agent or, if a "*Trade Date*" is specified in such Assignment Agreement, as of the Trade Date) shall *not* be *less than* (I) Two Million Dollars ($2,000,000), in the case of any assignment of Revolving Loans or Revolving Commitments, and (II) Five Million Dollars ($5,000,000), in the case of any assignment of Term Loans or Term Loan Commitments, unless (in any such case of the foregoing <u>clauses (b)(i)(B)(I</u>) or (<u>b)(i)(B)(II</u>)) each of the Administrative Agent and, so long as no Event of Default shall have occurred and is continuing, the Borrower otherwise consents (each such consent *not* to be unreasonably withheld, conditioned or delayed).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Proportionate Amounts</u>. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Commitments and Loans assigned, except that this <u>clause (b)(ii</u>) shall *not* prohibit any Lender from assigning all, or a portion, of its rights and obligations on a non-*pro rata* basis as between its Revolving Commitment and/or Revolving Loans, on the one hand, and its Commitments in respect of Term Loans and/or its Term Loans, on the other the hand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Required Consents</u>. No consent shall be required for any assignment except to the extent required by <u>clause (b)(i)(B</u>) above and, in addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required, unless (I) an Event of Default shall have occurred and is continuing at the time of such assignment, or (II) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; <u>provided</u>, <u>that</u>, the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Administrative Agent (such consent *not* to be unreasonably withheld or delayed) shall be required for assignments in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) commitments under revolving credit facilities and unfunded commitments under term loan facilities if such assignment is to a Person that is *not* a Lender with a commitment in respect of such facility, an Affiliate of such Lender or an Approved Fund with respect to such Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) a funded Term Loan to a Person who is *not* a Lender, an Affiliate of a Lender or an Approved Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the consent of the Issuing Bank (such consent *not* to be unreasonably withheld or delayed) shall be required for any assignment in respect of any Revolving Commitment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the consent of the Swingline Lender (such consent *not* to be unreasonably withheld or delayed) shall be required for any assignment in respect of any Revolving Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Assignment Agreement</u>. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment Agreement, together with a processing and recordation fee in the amount of Three Thousand Five-Hundred Dollars ($3,500), unless waived, in whole or in part by the Administrative Agent in its discretion. The assignee, if it is *not* a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Assignment to Certain Persons</u>. No such assignment shall be made to: (A) any Credit Party, any Subsidiary, any other Regulated Entity, or any Affiliate of any of the foregoing; (B) any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this <u>clause (b)(v)(B</u>); or (C) a Disqualified Institution, <u>provided</u>, <u>that</u>, any assignment made to a Disqualified Institution in violation of this <u>clause (b)(v)(C</u>) shall *not* be void, but the provisions of <u>clause (f)(ii</u>) below may apply.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>No Assignment to Natural Persons</u>. No such assignment shall be made to a natural person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <u>Certain Additional Payments</u>. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or sub-participations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable *pro rata* share of Loans previously requested but *not* funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to: (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent, the Issuing Bank, the Swingline Lender and each other Lender hereunder (and interest accrued thereon); and (y) acquire (and fund as appropriate) its full *pro rata* share of all Loans and participations in Letters of Credit and Swingline Loans in accordance with its Revolving Commitment Percentage. Notwithstanding anything to the contrary in the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under Applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to <u>clause (c</u>) below, from and after the effective date specified in each Assignment Agreement, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment Agreement, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment Agreement, be released from its obligations under this Agreement (and, in the case of an Assignment Agreement covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of <u>Section</u> <u>2.16</u>, <u>Section</u> <u>2.17</u> and <u>Section</u> <u>11.2</u> with respect to facts and circumstances occurring prior to the effective date of such assignment; <u>provided</u>, <u>that</u>, except to the extent expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender. The Borrower will execute and deliver on request, at its own expense, a Note to the assignee evidencing the interests taken by way of assignment hereunder. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does *not* comply with this subsection (other than an assignment or transfer to a Disqualified Institution) shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with <u>clause (d</u>) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Register</u>. The Administrative Agent, acting *solely* for this purpose as an agent of the Borrower, shall maintain at one of its offices in the United States, a copy of each Assignment Agreement delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans and Obligations owing to, each Lender pursuant to the terms hereof from time to time (the "*<u>Register</u>*"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Participations</u>. Any Lender may at any time, without the consent of, or notice to, any Credit Party or the Administrative Agent, sell participations to any Person (other than a natural Person, a Credit Party, a Subsidiary, another Regulated Entity, another Affiliate of any of the foregoing, or a Disqualified Institution) (each, a "*<u>Participant</u>*") in all, or a portion, of such Lender's rights and/or obligations under this Agreement (including all, or a portion, of its Commitment and/or the Loans owing to it); <u>provided</u>, <u>that</u>, (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain *solely* responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower, the Administrative Agent, the Issuing Bank and Lenders shall continue to deal *solely* and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under <u>Section</u> <u>11.2(c</u>) with respect to any payments made by such Lender to its Participant(s).

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u>, <u>that</u>, such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in <u>clauses (b</u>) or (<u>c</u>) of <u>Section</u> <u>11.4</u> that affects such Participant; <u>provided</u>, <u>further</u>, <u>that</u>, any such agreement or instrument shall require the applicable Participant to represent and warrant for the benefit of the Borrower and such Lender that such Participant is *not* a Disqualified Institution. The Borrower agrees that each Participant shall be entitled to the benefits of <u>Section</u> <u>3.2</u>, <u>Section</u> <u>3.1</u> and <u>Section</u> <u>3.3</u> (subject to the requirements and limitations therein, including the requirements under <u>Section</u> <u>3.3(f</u>) (it being understood that the documentation required under <u>Section</u> <u>3.3(f</u>) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to <u>clause (b</u>) above; <u>provided</u>, <u>that</u>, such Participant (A) agrees to be subject to the provisions of <u>Section</u> <u>2.17</u> and <u>Section</u> <u>3.4</u> as if it were an assignee under <u>clause (b</u>) below, and (B) shall *not* be entitled to receive any greater payment under <u>Section</u> <u>3.2</u> or <u>Section</u> <u>3.3</u> with respect to any participation than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower's request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of <u>Section</u> <u>2.17</u> with respect to any Participant. To the extent permitted by Applicable Law, each Participant also shall be entitled to the benefits of <u>Section</u> <u>11.3</u> as though it were a Lender; <u>provided</u>, <u>that</u>, such Participant agrees to be subject to <u>Section</u> <u>2.14</u> as though it were a Lender. Each Lender that sells a participation shall, acting *solely* for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Credit Documents (the "*<u>Participant Register</u>*"); <u>provided</u>, <u>that</u>, no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Credit Document) to any Person, except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103–1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certain Pledges</u>. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement, or any promissory notes evidencing its interests hereunder, to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this <u>Section</u> <u>11.5</u> shall *not* apply to any such pledge or assignment of a security interest; <u>provided</u>, <u>that</u>, no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Disqualified Institution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No assignment or participation shall be made to any Person that was a Disqualified Institution as of the date on which the assigning Lender entered into an Assignment Agreement or participation agreement, as applicable, with such Person (unless the Borrower has consented to such assignment to such entity, in which case, such entity will not be considered a Disqualified Institution for the purpose of such assignment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If any assignment or participation is made to any Disqualified Institution without the Borrower's prior written consent in violation of <u>clause (f)(i</u>) above, the Borrower may, at its sole expense and effort, upon notice to the applicable Disqualified Institution, (A) terminate any Revolving Commitment of such Disqualified Institution and repay all Obligations of the Borrower owing to such Disqualified Institution in connection with such Revolving Commitment, and (B) in the case of an outstanding portion of any Term Loan held by such Disqualified Institution, prepay or purchase such portion of the Term Loans, in each case, *plus* accrued interest, fees and other amounts payable to such Disqualified Institution hereunder; <u>provided</u>, <u>that</u>, the Borrower may not use the proceeds of any Revolving Loans to repay outstanding Obligations owing to a Disqualified Institution pursuant to the foregoing <u>clauses (f)(ii)(A</u>) and (<u>f)(ii)(B</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary herein, Disqualified Institutions (x) will *not* have the right to receive information, reports or other materials provided to the Lenders by the Borrower, the Administrative Agent or any other Lender, attend or participate in meetings attended by the Lenders and the Administrative Agent or access any electronic site established for the Lenders or confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders, and (y) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) under, this Agreement or any other Credit Document, each Competitor will be deemed to have consented in the same proportion as the Lenders that are not Disqualified Institutions consented to such matter. The Administrative Agent shall have the right, and the Borrower hereby expressly authorizes the Administrative Agent to post the Disqualified Institution List on the Platform, including the portion of the Platform that is designated for "public side" Lenders and/or provide the Disqualified Institution List to each Lender requesting the same.

Section 11.6 <u>Independence of Covenants</u>. All covenants hereunder shall be given independent effect so that, if a particular action or condition is *not* permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

Section 11.7 <u>Survival of Representations, Warranties and Agreements</u>. All representations, warranties and agreements made herein shall survive the execution and delivery hereof and the making of any Credit Extension. Notwithstanding anything herein or implied by law to the contrary, the agreements

------

of each Credit Party set forth in <u>Section</u> <u>3.1(c</u>), <u>Section</u> <u>3.2</u>, <u>Section</u> <u>3.3</u>, <u>Section</u> <u>11.2</u>, <u>Section</u> <u>11.3</u>, and <u>Section</u> <u>11.10</u>, and the agreements of the Lenders and the Agents set forth in <u>Section</u> <u>2.14</u>, <u>Section</u> <u>10.3</u> and <u>Section</u> <u>11.2(c</u>), shall survive the payment of the Loans, the cancellation, expiration or cash collateralization of the Letters of Credit, and the termination hereof.

Section 11.8 <u>No Waiver; Remedies Cumulative</u>. No failure or delay on the part of the Administrative Agent or any Lender in the exercise of any power, right or privilege hereunder or under any other Credit Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other power, right or privilege. The rights, powers and remedies given to the Administrative Agent and each Lender hereby are cumulative and shall be in addition to and independent of all rights, powers and remedies existing by virtue of any statute or rule of law or in any of the other Credit Documents, any Swap Agreements or any Treasury Management Agreements. Any forbearance or failure to exercise, and any delay in exercising, any right, power or remedy hereunder shall not impair any such right, power or remedy or be construed to be a waiver thereof, nor shall it preclude the further exercise of any such right, power or remedy.

Section 11.9 <u>Marshalling; Payments Set Aside</u>. Neither the Administrative Agent nor any Lender shall be under any obligation to marshal any assets in favor of any Credit Party or any other Person or against or in payment of any or all of the Obligations. To the extent that any Credit Party makes a payment or payments to the Administrative Agent, the Issuing Bank, the Swingline Lender or the Lenders (or to the Administrative Agent, on behalf of Lenders), or the Administrative Agent, the Collateral Agent, the Issuing Bank or the Lenders enforce any security interests or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any Debtor Relief Law, any other state or federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred.

Section 11.10 <u>Severability</u>. In case any provision in or obligation hereunder or any Note or other Credit Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

Section 11.11 <u>Obligations Several; Independent Nature of Lenders' Rights</u>. The obligations of the Lenders hereunder are several and no Lender shall be responsible for the obligations or Revolving Commitment of any other Lender hereunder. Nothing contained herein or in any other Credit Document, and no action taken by the Lenders pursuant hereto or thereto, shall be deemed to constitute the Lenders as a partnership, an association, a joint venture or any other kind of entity. The amounts payable at any time hereunder to each Lender shall be a separate and independent debt, and, subject to <u>Section</u> <u>10.10(c</u>), each Lender shall be entitled to protect and enforce its rights arising under this Agreement and the other Credit Documents and it shall not be necessary for any other Lender to be joined as an additional party in any proceeding for such purpose.

Section 11.12 <u>Headings</u>. Section headings herein are included herein for convenience of reference only and shall *not* constitute a part hereof for any other purpose or be given any substantive effect.

------

Section 11.13 <u>Applicable Laws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law</u>. This Agreement and the other Credit Documents and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of, or relating to this Agreement or any other Credit Document (except, as to any other Credit Document, as expressly set forth therein), and the transactions contemplated hereby and thereby, shall be construed in accordance with, and be governed by, the law of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Submission to Jurisdiction</u>. Each party hereto irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the State of New York sitting in the Borough of Manhattan and of the United States District Court of the Southern District, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Credit Document, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by Applicable Law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or in any other Credit Document shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Agreement or any other Credit Document against any Credit Party or its properties in the courts of any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver of Venue</u>. Each party hereto irrevocably and unconditionally waives, to the fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Credit Document in any court referred to in <u>clause (b</u>) above. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Service of Process</u>. Each party hereto irrevocably consents to service of process in the manner provided for notices in <u>Section</u> <u>11.1</u>. Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by Applicable Law.

Section 11.14 <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO: (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER; AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

------

Section 11.15 <u>Confidentiality</u>. Each of the Administrative Agent, the Collateral Agent, the Issuing Bank and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to its Affiliates and to its Related Parties (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent required or requested by any regulatory agency or authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to the extent required by Applicable Laws or regulations or by any subpoena or similar legal process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to any other party hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in connection with the exercise of any remedies hereunder or under any other Credit Document or any action or proceeding relating to this Agreement or any other Credit Document or the enforcement of rights hereunder or thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) subject to an agreement containing provisions substantially the same as those of this Section, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any assignee of or Participant in, or any prospective assignee of or Participant in (including, for purposes hereof, any new lenders invited to join hereunder on an increase in the Loans and Commitments hereunder, whether by exercise of an accordion, by way of amendment or otherwise), any of its rights or obligations under this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower or its obligations, this Agreement or payments hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) on a confidential basis to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any rating agency in connection with rating any of the Credit Parties, Subsidiaries or other Regulated Entities, or any of the credit facilities provided for herein; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the CUSIP Service Bureau or any similar agency or organization in connection with the application, issuance, publishing and monitoring of CUSIP numbers or other market identifiers with respect to the credit facilities provided for herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) with the consent of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent such Information: (x) becomes publicly available other than as a result of a breach of this <u>Section</u> <u>11.15</u>; or (y) becomes available to the Administrative Agent, any Lender, the Issuing Bank or any of their respective Affiliates on a non-confidential basis from a source other than the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) for purposes of establishing a "due diligence" defense.

------

In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry, and service providers (including potential or actual credit insurers and re-insurers) to the Administrative Agent or any Lender in connection with the administration of this Agreement, the other Credit Documents, and the Commitments.

For purposes of this Section, "*<u>Information</u>*" shall mean all information received from any Credit Party, any Subsidiary or any other Regulated Entity relating to any Credit Party, any Subsidiary or any other Regulated Entity, or any of the respective businesses of any of the foregoing, other than any such information that is available to the Administrative Agent, any Lender or the Issuing Bank on a non-confidential basis prior to disclosure by such Credit Party, Subsidiary or other Regulated Entity; <u>provided</u>, <u>that</u>, in the case of information received from any Credit Party, any Subsidiary or any other Regulated Entity after the Closing Date, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this <u>Section</u> <u>11.15</u> shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

Each of the Administrative Agent, the Collateral Agent, the Issuing Bank and the Lenders acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Information may include material non-public information concerning any Credit Party, any Subsidiary and/or any other Regulated Entity, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) it has developed compliance procedures regarding the use of material non-public information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) it will handle such material non-public information in accordance with Applicable Law, including United States federal and state securities laws.

For the avoidance of doubt, nothing set forth in this <u>Section</u> <u>11.15</u> shall prohibit any individual from communicating or disclosing information (including any Information) regarding suspected violations of Applicable Law to a Governmental Authority or applicable self-regulatory authority.

Section 11.16 <u>Usury Savings Clause</u>. Notwithstanding any other provision herein to the contrary, the aggregate interest rate charged or agreed to be paid with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the nature of interest under Applicable Laws shall *not exceed* the Highest Lawful Rate. If the rate of interest (determined without regard to the preceding sentence) under this Agreement at any time *exceeds* the Highest Lawful Rate, the aggregate outstanding principal amount of all Loans shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect. In addition, if when the Loans made hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is *less than* the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect, then to the extent permitted by Applicable Law, the Borrower shall pay to the Administrative Agent an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding anything to the contrary in the foregoing, it is the intention of the Lenders and each of the Credit Parties to conform strictly to any applicable usury laws. Accordingly, if any Lender contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such Lender's option be applied to the aggregate outstanding principal amount of all Loans or be refunded to each of the applicable Credit

------

Parties. In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender *exceeds* the Highest Lawful Rate, such Person may, to the extent permitted by Applicable Laws:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) characterize any payment that is *not* principal as an expense, fee, or premium rather than interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) exclude voluntary prepayments and the effects thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest, throughout the contemplated term of the Obligations hereunder.

Section 11.17 <u>Electronic Execution; Counterparts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Electronic Execution</u>. Each of the parties hereto hereby agrees that: (i) the electronic signature of any party to this Agreement or to any other Credit Document shall be as valid as an original "*wet*" signature of such party thereto, and <u>further</u>, that such signature shall be effective to bind such party to this Agreement or to such other Credit Document, as applicable; and (ii) any electronically signed document (including, without limitation, this Agreement and each other Credit Document) shall be deemed to (A) be "*written*" or "*in writing*", (B) have been signed, (C) constitute a record established and maintained in the ordinary course of business, and (D) constitute an original written record when printed from electronic files. Such paper copies or "*printouts*", if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding, will be admissible as between the parties to the same extent, and under the same conditions, as other original business records created and maintained in documentary form. None of the parties hereto shall contest the admissibility of true and accurate copies of electronically signed documents on the basis of the best evidence rule or as *not* satisfying the business records exception to the hearsay rule. For purposes of this <u>Section</u> <u>11.17</u>: (I) "*<u>electronic signature</u>*" shall mean a manually-signed original signature that is then transmitted by electronic means; (II) "*<u>transmitted</u> <u>by electronic means</u>*" shall mean sent in the form of a facsimile or sent via the internet as a ".pdf" (portable document format) or other replicating image attached to an e-mail message; and (III) "*<u>electronically signed document</u>*" shall mean a document transmitted by electronic means and containing, or to which there is affixed, an electronic signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Counterparts</u>. This Agreement and each other Credit Document may be executed by one (1) or more of the parties to this Agreement or such other Credit Document (as the case may be) on any number of separate counterparts, and all of said counterparts shall, taken together, be deemed to constitute one (1) and the same instrument. Delivery of an executed counterpart of a signature page to this Agreement, or any other Credit Document, by facsimile transmission or any other electronic mail in ".pdf" format, shall be as effective as delivery of a manually executed counterpart of this Agreement or such other Credit Document.

Section 11.18 <u>No Advisory of Fiduciary Relationship</u>. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Credit Document), each of the Credit Parties acknowledges and agrees, and acknowledges its Affiliates' understanding, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the arranging and other services regarding this Agreement provided by the Administrative Agent, are arm's-length commercial transactions between the Credit Parties, on the one hand, and the Administrative Agent, on the other hand;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Credit Parties have consulted their own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each of the Credit Parties is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Credit Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Administrative Agent is and has been acting *solely* as a principal and, except as expressly agreed in writing by the relevant parties, has *not* been, is *not* and will *not* be acting as an advisor, agent or fiduciary, for any Credit Party or any of their Affiliates or any other Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Administrative Agent does *not* have any obligation to any Credit Party or any of their Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Credit Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Administrative Agent and its respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Credit Parties and their Affiliates, and the Administrative Agent does *not* have any obligation to disclose any of such interests to any Credit Party or its Affiliates.

To the fullest extent permitted by Applicable Law, each of the Credit Parties hereby waives and releases, any claims that it may have against the Administrative Agent with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

Section 11.19 <u>Integration; Effectiveness</u>. This Agreement and the other Credit Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Article 5, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.

Section 11.20 <u>USA PATRIOT Act</u>. Each Lender subject to the Patriot Act hereby notifies each of the Credit Parties that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies each of the Credit Parties, which information includes the name and address of each of the Credit Parties and other information that will allow such Lender to identify each of the Credit Parties in accordance with the Patriot Act.

Section 11.21 <u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>. Notwithstanding anything to the contrary in any Credit Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender that is an Affected Financial Institution arising under any Credit Document, to the extent that such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority, and each party hereto agrees and consents to, and acknowledges and agrees to be bound by: (a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder that may be payable to it by any Lender that is an Affected Financial Institution; and (b) the effects of any Bail-In Action on any such liability, including, if

------

applicable, (i) a reduction, in full or in part, or cancellation of any such liability, (ii) a conversion of all, or a portion, of such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to, or otherwise conferred on, it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Credit Document, or (iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

Section 11.22 <u>Certain ERISA Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that at least one of the following is and will be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender is not using "plan assets" (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments or this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84–14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95–60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90–1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91–38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96–23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84–14);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Revolving Commitments and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84–14; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84–14 are satisfied with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, unless either (1) <u>clause (a)(i</u>) above is true with respect to a Lender, or (2) a Lender has provided another representation, warranty and covenant as provided in <u>clause (a)(iv</u>) above, such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that the Administrative Agent is *not* a fiduciary with respect to the assets of such Lender involved in such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Credit Document or any documents related hereto or thereto).

Section 11.23 <u>Acknowledgment Regarding any Supported QFCs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent that the Credit Documents provide support, through a guarantee or otherwise, for any Swap Obligation or any other agreement or instrument that is a QFC (such support, "*<u>QFC Credit Support</u>*"; and each such QFC, a "*<u>Supported QFC</u>*"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Special Resolution</u> <u>Regimes</u>*") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Credit Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that a Covered Entity that is a party to a Supported QFC (each, a "*<u>Covered</u> <u>Party</u>*") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the Laws of the United States or a state of the United States. In the event that a Covered Party, or a BHC Act Affiliate of a Covered Party, becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Credit Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Credit Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

*[Remainder of Page Intentionally Left Blank]* 

------

ANNEX II

TO FIRST AMENDMENT TO CREDIT AGREEMENT

<u>APPENDIX A</u>

[On file with the Administrative Agent]

------

ANNEX III

TO FIRST AMENDMENT TO CREDIT AGREEMENT

[On file with the Administrative Agent]

## Exhibit 4.3

**Exhibit 4.3** 

***Executed Copy***

**SECOND AMENDMENT** 

dated as of May 30, 2025

to

CREDIT AGREEMENT

dated as of February 18, 2025

by and among

SAFEPOINT HOLDINGS, INC.,

as the Borrower,

CERTAIN SUBSIDIARIES OF THE BORROWER FROM TIME TO TIME PARTY THERETO,

as Guarantors,

THE LENDERS FROM TIME TO TIME PARTY THERETO,

and

REGIONS BANK,

as Administrative Agent, Collateral Agent, Issuing Bank, and Swingline Lender

REGIONS CAPITAL MARKETS,

a division of Regions Bank,

as Sole Lead Arranger and Sole Bookrunner for such Amendment

Cover Page to Second Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

**<u>SECOND AMENDMENT TO CREDIT AGREEMENT</u>** 

This SECOND AMENDMENT TO CREDIT AGREEMENT (this "*<u>Amendment</u>*"), dated as of May 30, 2025 (the "*<u>Second Amendment Effective Date</u>*"), is entered into by and among SAFEPOINT HOLDINGS, INC., a Florida corporation (the "*<u>Borrower</u>*"), the Guarantors (here and hereafter as such term is defined in the Existing Credit Agreement (here and hereafter as such term is defined in the recitals below)) as of the Second Amendment Effective Date, the Second Amendment Joining Lenders (here and hereafter as such term is defined in <u>Section</u> <u>2</u> below), the Lenders (here and hereafter as such term is defined in the Existing Credit Agreement) party to the Existing Credit Agreement as of the date that is immediately *prior* to the Second Amendment Effective Date (collectively, the "*<u>Existing Lenders</u>*", and each of them individually, an "*<u>Existing Lender</u>*"), and REGIONS BANK ("*<u>Regions</u>*"), in its capacities as Administrative Agent, Collateral Agent, Swingline Lender, and Issuing Bank (each, here and hereafter as such term is defined in the Existing Credit Agreement).

R E C I T A L S

WHEREAS, the Borrower, the Guarantors from time to time party thereto, the Lenders from time to time party thereto, the Administrative Agent and the Collateral Agent are parties to that certain Credit Agreement, dated as of February 18, 2025 (as amended by that certain First Amendment to Credit Agreement, dated as of April 11, 2025, and as further amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time *prior* to the Second Amendment Effective Date, the "*<u>Existing Credit Agreement</u>*"; and the Existing Credit Agreement as amended by this Amendment on the Second Amendment Effective Date, the "*<u>Amended Credit Agreement</u>*"; and the Amended Credit Agreement as it may be further amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time, the "*<u>Credit Agreement</u>*");

WHEREAS, the Borrower has requested that (i) each of the Second Amendment Joining Lenders (A) join the Existing Credit Agreement as a "Lender" on the Second Amendment Effective Date, and (B) establish its respective Revolving Commitment and respective DDTL Commitment on the Second Amendment Effective Date in the respective amounts set forth in the applicable columns opposite such Second Amendment Joining Lender's name on Appendix A (*Lenders*, *Commitments and Commitment Percentages*) to the Amended Credit Agreement (the "*<u>Updated Commitment Schedule</u>*") as such Second Amendment Joining Lender's "*Revolving Commitment*" and such Second Amendment Joining Lender's "*DDTL Commitment*", respectively, and (ii) certain of the Existing Lenders increase the amount of their respective Revolving Commitments and/or DDTL Commitments on the Second Amendment Effective Date, so that, after giving effect to both (I) the establishment of the Revolving Commitments and DDTL Commitments of the Second Amendment Joining Lenders as described in the foregoing <u>clause (i</u>), and (II) the increase in the respective amounts of the Revolving Commitments and DDTL Commitments of certain of the Existing Lenders as described in the foregoing <u>clause (ii</u>): (a) the Aggregate Revolving Commitment Amount is increased, on the Second Amendment Effective Date, from Twenty-Five Million Dollars ($25,000,000) (as in effect on the date that is immediately *prior* to the Second Amendment Effective Date) to Fifty Million Dollars ($50,000,000) (such increase in the Aggregate Revolving Commitment Amount resulting from the establishment of the Revolving Commitments of the Second Amendment Joining Lenders as described in the foregoing <u>clause (i</u>) and the increase in the respective amounts of the Revolving Commitments of certain of the Existing Lenders as described in the foregoing <u>clause (ii</u>), taken together, the "*<u>Second Amendment Revolver Increase</u>*"); and (b) the Aggregate DDTL Commitment Amount is increased, on the Second Amendment Effective Date, from Zero Dollars ($0.00) (as in effect on the date that is immediately *prior* to the Second Amendment Effective Date) to Sixty-Five

Second Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

Million Dollars ($65,000,000) (such increase in the Aggregate DDTL Commitment Amount resulting from the establishment of the DDTL Commitments of the Second Amendment Joining Lenders as described in the foregoing <u>clause (i</u>) and the increase in the respective amounts of the DDTL Commitments of certain of the Existing Lenders as described in the foregoing <u>clause (ii</u>), taken together, the "*<u>Second Amendment DDTL Increase</u>*");

WHEREAS, the Borrower has further requested that the Lenders (including the Second Amendment Joining Lenders and the Existing Lenders): (i) *solely* if, and to the extent, set forth in <u>Section</u> <u>4</u> below, (A) assume their respective allocated portions and *pro rata* percentage shares of the outstanding Loans of each Class, the existing Commitments of each Class and the other existing Revolving Credit Exposures, and/or (B) assign and re-allocate a portion of their outstanding Loans of each Class (if any), their existing Commitments of each Class (if any) and their other existing Revolving Credit Exposures (if any), in each case of the foregoing <u>clauses (i)(A</u>) and (<u>i)(B</u>), all in accordance with the respective allocated portions and *pro rata* percentage shares of the Lenders as set forth in the Updated Commitment Schedule; and (ii) make (A) certain other modifications to the terms of the Existing Credit Agreement as described in <u>Section</u> <u>6(a</u>) below, and (B) certain modifications to Appendix A (*Lenders*, *Commitments and Commitment Percentages*) to the Existing Credit Agreement as described in <u>Section</u> <u>6(b</u>) below; and

WHEREAS, (a) each of the Second Amendment Joining Lenders has agreed to (i) join the Existing Credit Agreement as a Lender, and (ii) establish its respective Revolving Commitment and DDTL Commitment, (b) each of the Existing Lenders with (i) a Revolving Commitment as set forth in the Updated Commitment Schedule that is *greater than* the amount of such Existing Lender's existing Revolving Commitment as in effect immediately prior to the Second Amendment Effective Date (each such Existing Lender, an "*<u>Existing Revolver Increase Lender</u>*", and collectively, the "*<u>Existing Revolver</u> <u>Increase Lenders</u>*") has agreed to increase the amount of its existing Revolving Commitment, and (ii) a DDTL Commitment as set forth in the Updated Commitment Schedule that is *greater than* the amount of such Existing Lender's existing DDTL Commitment as in effect immediately prior to the Second Amendment Effective Date (each such Existing Lender, an "*<u>Existing DDTL Increase Lender</u>*", and collectively, the "*<u>Existing DDTL Increase Lenders</u>*") has agreed to increase the amount of its existing DDTL Commitment, and (c) each of the Lenders has agreed to (i) *solely* if, and to the extent, set forth in <u>Section</u> <u>4</u> below, (A) assume its respective allocated portions and *pro rata* percentage shares of the outstanding Loans of each Class, the existing Commitments of each Class and the other existing Revolving Credit Exposures, and/or (B) assign and re-allocate a portion of its outstanding Loans of each Class (if any), its existing Commitments of each Class (if any) and its other existing Revolving Credit Exposures (if any), in each case of the foregoing <u>clauses (c)(i)(A</u>) and (<u>c)(i)(B</u>), all in accordance with the respective allocated portions and *pro rata* percentage shares of the Lenders as set forth in the Updated Commitment Schedule, and (ii) consent to the other modifications to the terms and provisions of the Existing Credit Agreement (including the Appendices thereto) as set forth in this Amendment, in each case of the foregoing <u>clauses (a</u>) through (<u>c</u>), on the terms, and subject to the conditions, set forth in this Amendment.

NOW, THEREFORE, in consideration of the agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the parties to this Amendment hereby agrees as follows:

A G R E E M E N T

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>INTRODUCTORY PARAGRAPH AND RECITALS; DEFINITIONS</u>. The above introductory paragraph and recitals (including any terms defined therein) of this Amendment are incorporated herein by reference as if fully set forth in the body of this Amendment. Capitalized terms used in this Amendment but not otherwise defined herein shall have the respective meanings provided for such terms in the Existing Credit Agreement or in the Amended Credit Agreement, as the context may require.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>LENDER JOINDER</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Joinder Agreement</u>. Each of KEYBANK NATIONAL ASSOCIATION ("*<u>KeyBank</u>*"), CITIZENS BANK, N.A. ("*<u>Citizens</u>*"), EAST WEST BANK ("*<u>East West</u>*"), and TRUIST BANK ("*<u>Truist</u>*"; and Truist together with East West, Citizens and KeyBank, collectively, the "*<u>Second</u> <u>Amendment Joining Lenders</u>*", and each of them individually, a "*<u>Second Amendment Joining Lender</u>*") hereby:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) agrees to establish its respective Revolving Commitment on the Second Amendment Effective Date in the amount that is designated, in the applicable column opposite such Second Amendment Joining Lender's name in the table set forth on the Updated Commitment Schedule, as such Second Amendment Joining Lender's "*Revolving Commitment*";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) agrees to establish its respective DDTL Commitment on the Second Amendment Effective Date in the amount that is designated, in the applicable column opposite such Second Amendment Joining Lender's name in the table set forth on the Updated Commitment Schedule, as such Second Amendment Joining Lender's "*DDTL Commitment*";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) represents and warrants to the Administrative Agent, the Collateral Agent, the Issuing Bank, each of the other Lenders, and each of the Credit Parties that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) it has full power and authority, and has taken all necessary action(s), to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) execute and deliver this Amendment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) establish its respective Revolving Commitment in the amount set forth as such Second Amendment Joining Lender's "*Revolving Commitment*" in the applicable column opposite such Second Amendment Joining Lender's name in the table set forth on the Updated Commitment Schedule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) establish its respective DDTL Commitment in the amount set forth as such Second Amendment Joining Lender's "*DDTL Commitment*" in the applicable column opposite such Second Amendment Joining Lender's name in the table set forth on the Updated Commitment Schedule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) assume its respective allocated portions and *pro rata* percentage shares of (1) the aggregate outstanding (as of the Second Amendment Effective Date) principal balance of the Loans of each Class, (2) the Aggregate Revolving Commitments and Aggregate DDTL Commitments in effect on the Second Amendment Effective Date, and (3) any other Revolving Credit Exposures of the Lenders as of the Second Amendment Effective Date, in each case of the foregoing <u>clauses (a)(iii)(A)(IV)(1</u>) through (<u>a)(iii)(A)(IV)(3</u>), all as set forth on the Updated Commitment Schedule and in accordance with <u>Section</u> <u>4</u> below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(V) fund its respective portion(s) of any Borrowing(s) to occur on the Second Amendment Effective Date in connection with this Amendment;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VI) become a Lender under the Amended Credit Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VII) perform its respective obligations under this Amendment and the Amended Credit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) it satisfies each of the requirements specified in the Amended Credit Agreement that are required to be satisfied by it in order to become a Lender under the Amended Credit Agreement in accordance with the terms thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) it has reviewed the current Disqualified Institutions List provided by the Borrower to, and acknowledged and maintained by, the Administrative Agent (if any) in connection with the Credit Agreement, and it is *not* a Disqualified Institution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) from and after the Second Amendment Effective Date, it shall be bound by the provisions of the Amended Credit Agreement and the other Credit Documents as a Lender and shall have all of the obligations of a Lender as if it had executed the Amended Credit Agreement as of the Second Amendment Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) it has received a copy of the Existing Credit Agreement and of the Amended Credit Agreement, together with copies of the most recent financial statements delivered to the Administrative Agent pursuant to each of Section 7.1(a) (*Quarterly Financial Statements*) and Section 7.1(b) (*Annual Financial Statements*) of the Existing Credit Agreement (or, to the extent no such financial statements have yet been delivered pursuant to such Section(s) of the Existing Credit Agreement, copies of the financial statements delivered to the Administrative Agent in anticipation of the closing of the Credit Agreement on the Closing Date in satisfaction of Section 5.1(f) (*Financial Statements*) of the Credit Agreement), together with such other documents and information as it has deemed appropriate to make its own credit analysis and decision to execute this Amendment, to be bound by the terms of this Amendment and the Amended Credit Agreement, and to become a Lender under the Amended Credit Agreement, on the basis of which it has made such analysis and decision independently and without reliance on any of the Administrative Agent, the Collateral Agent, the Issuing Bank, or any other Lender (including the other Second Amendment Joining Lender); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) if it is a Foreign Lender, it has delivered to the Administrative Agent all documentation required to be delivered by it to the Administrative Agent pursuant to the terms of the Amended Credit Agreement as a result of it being a Foreign Lender, all duly completed and executed by it; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) from and after the Second Amendment Effective Date, it shall be deemed to be a party to the Amended Credit Agreement and a "*Lender*" for all purposes of the Amended Credit Agreement and the other Credit Documents, it shall be bound by the provisions of the Amended Credit Agreement and the other Credit Documents as a Lender, and it shall have all of the obligations of a Lender as if it had executed the Amended Credit Agreement as of the Second Amendment Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) it will, independently and without reliance on any of the Administrative Agent, the Collateral Agent, the Issuing Bank, or any other Lender (including the other Second Amendment Joining Lender), and based on such documents and information as it shall deem appropriate at the time in its sole discretion, continue to make its own credit decisions and analysis in taking, or not taking, any action(s) under, or in connection with, the Amended Credit Agreement and the other Credit Documents; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) it will perform, in accordance with the terms of all applicable Credit Documents, all of the obligations that, by the terms of the Credit Documents, are required to be performed by it as a Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Borrower Acknowledgement</u>. The Borrower hereby acknowledges and agrees that, from and after the Second Amendment Effective Date, each Second Amendment Joining Lender shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) be deemed to be a party to the Amended Credit Agreement and a "*Lender*" for all purposes of the Amended Credit Agreement and the other Credit Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) have all of the rights and obligations of a Lender under the Amended Credit Agreement and the other Credit Documents as if it had executed the Amended Credit Agreement as of the Second Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notices</u>. The applicable mailing address, facsimile number, and electronic mail address of each Second Amendment Joining Lender for purposes of Section 11.1 (*Notices*) of the Amended Credit Agreement are as set forth in such Second Amendment Joining Lender's Administrative Questionnaire delivered by such Second Amendment Joining Lender to the Administrative Agent on or prior to the Second Amendment Effective Date, or such other mailing address, facsimile number, and/or electronic mail address as shall be designated by such Second Amendment Joining Lender in a written notice delivered to the Administrative Agent after the Second Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>INCREASE OF EXISTING COMMITMENTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Existing Revolving Commitments</u>. Subject to the terms and conditions set forth in this Amendment, each of the Existing Revolver Increase Lenders hereby agrees to increase the amount of its respective Revolving Commitment on the Second Amendment Effective Date by an amount equal to the *difference* between: (i) the amount set forth in the applicable column opposite such Existing Revolver Increase Lender's name on the Updated Commitment Schedule as such Existing Revolver Increase Lender's "*Revolving Commitment*" in effect on the Second Amendment Effective Date; *minus* (ii) the amount of such Existing Revolver Increase Lender's existing Revolving Commitment as in effect on the date that is immediately *prior* to the Second Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Existing DDTL Commitments</u>. Subject to the terms and conditions set forth in this Amendment, each of the Existing DDTL Increase Lenders hereby agrees to increase the amount of its respective DDTL Commitment on the Second Amendment Effective Date by an amount equal to the *difference* between: (i) the amount set forth in the applicable column opposite such Existing DDTL Increase Lender's name on the Updated Commitment Schedule as such Existing DDTL Increase Lender's "*DDTL Commitment*" in effect on the Second Amendment Effective Date; *minus* (ii) the amount of such Existing DDTL Increase Lender's existing DDTL Commitment as in effect on the date that is immediately *prior* to the Second Amendment Effective Date (which, for purposes of clarity, was Zero Dollars ($0.00) for each Existing Lender).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Acknowledgement</u>. Each party to this Amendment hereby acknowledges, accepts, and confirms that (i) the names of each of the Existing Revolver Increase Lenders, together with the corresponding Dollar amounts by which each of their respective Revolving Commitments are increased on the Second Amendment Effective Date pursuant to the foregoing <u>clause (a</u>), and (ii) the names of each of the Existing DDTL Increase Lenders, together with the corresponding Dollar amounts by which each of their respective DDTL Commitments are increased on the Second Amendment Effective Date pursuant to the foregoing <u>clause (b</u>), in each case of the foregoing <u>clauses (c)(i</u>) and (<u>c)(ii</u>), are as set forth in the table immediately below:

---

| | | | |
|:---|:---|:---|:---|
| ***Existing Revolver<br>Increase Lender*** | ***Amount of<br>Increase in<br>Revolving<br>Commitment*** | ***Existing DDTL<br>Increase Lender*** | ***Amount of<br>Increase in DDTL<br>Commitment*** |
|  Regions Bank | $3333333.33 | Regions Bank | $11481481.49 |
|  Texas Capital Bank | $3555555.55 | Texas Capital Bank | $11074074.08 |
|  Synovus Bank | $2333333.34 | Synovus Bank | $8037037.03 |
|  Lake Forest Bank & Trust Company, National Association (a subsidiary of Wintrust Financial Corporation) | $666666.66 | Lake Forest Bank & Trust Company, National Association (a subsidiary of Wintrust Financial Corporation) | $2296296.30 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>RE-ALLOCATION OF LOANS, COMMITMENTS AND REVOLVING CREDIT EXPOSURES</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Assignment and Reallocation</u>. Each of the parties to this Amendment hereby agrees that the Borrower, the Guarantors, the Lenders (including the Second Amendment Joining Lenders), the Issuing Bank, the Administrative Agent and the Collateral Agent shall be deemed, on the Second Amendment Effective Date automatically without any further action(s) (including execution of any Assignment Agreements or any other assignment documentation) of any Person(s), to have irrevocably authorized, directed and instructed the Administrative Agent to effect such assignments, prepayments, borrowings, and reallocations as are (in the reasonable determination of the Administrative Agent) necessary in order to effectuate the modifications to the outstanding Loans of each Class, the existing Commitments of each Class, and the other Revolving Credit Exposures (and to the respective allocated Dollar amounts and applicable *pro rata* percentage shares thereof that are attributable to each Lender (including each Second Amendment Joining Lender)) as are contemplated by this Amendment and the Updated Commitment Schedule such that, on the Second Amendment Effective Date immediately *after* giving effect to this Amendment, the Second Amendment Revolver Increase and the Second Amendment DDTL Increase (but immediately *prior* to giving effect to any Borrowing(s) to occur on the Second Amendment Effective Date), each of the Lenders (including each Second Amendment Joining Lender) shall hold and be allocated a respective (for each Class and for each Lender) portion and *pro rata* percentage share of (i) the aggregate outstanding principal balance of the Loans of each Class, (ii) the Aggregate Revolving Commitments and the Aggregate DDTL Commitments in effect, and (iii) any other Revolving Credit Exposures of the Lenders, in each case of the foregoing <u>clauses (a)(i</u>) through (<u>a)(iii</u>), in accordance with the respective allocated Dollar and percentage amount(s) (as applicable) set forth in the applicable column opposite such Lender's name in the table set forth on the Updated Commitment Schedule, without any further requirement to comply with the terms and provisions set forth in Section 11.5 (*Successors and Assigns*) of the Existing Credit Agreement. Each Lender (including, without limitation, each Second Amendment Joining Lender) hereby waives any right to demand reimbursement pursuant to Section 3.1(c) (*Compensation for Breakage or Non*-*Commencement of Interest Periods*) of the Credit Agreement of any "breakage" or break-funding costs incurred *solely* as a result of the assignments, prepayments, borrowings, and reallocations described in the immediately foregoing sentence.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Lender Affirmation</u>. Each of the Lenders (including, without limitation, each Second Amendment Joining Lender) hereby acknowledges, accepts, and confirms (i) the Dollar amount of its Revolving Commitment, (ii) its respective allocated *pro rata* percentage share of the Aggregate Revolving Commitments, (iii) the Dollar amount of its DDTL Commitment, (iv) its respective allocated *pro rata* percentage share of the Aggregate DDTL Commitments, and (v) its respective allocated outstanding principal amount held, and allocated *pro rata* percentage share, of the aggregate outstanding principal balance of the Loans of each Class made by the Lenders, in each case of the foregoing <u>clauses</u> <u>(b)(i</u>) through (<u>b)(v</u>), as of the Second Amendment Effective Date, all as set forth on the Updated Commitment Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>NO ACCORDION UTILIZATION</u>. For purposes of clarity, neither the Second Amendment Revolver Increase nor the Second Amendment DDTL Increase established on the Second Amendment Effective Date pursuant to this Amendment are established or effected, in whole or in part, pursuant to Section 2.1(e) (*Incremental Facilities*) of the Existing Credit Agreement. As such, neither the Second Amendment Revolver Increase nor the Second Amendment DDTL Increase shall constitute an "*Incremental Facility*", an "*Incremental Revolver Increase*", an "*Incremental DDTL Increase*", or the establishment of an "*Incremental Term Loan*" or any "*Incremental Term Loan Commitments*", and this Amendment shall *not* constitute an "*Incremental Facility Agreement*", in each case of the foregoing, as such terms are defined and used in the Amended Credit Agreement and the other Credit Documents; and <u>further</u>, no portion of the aggregate amount of the Second Amendment Revolver Increase (or any Borrowing(s) under the new or increased Revolving Commitments established in connection therewith) or the Second Amendment DDTL Increase (or any Borrowing(s) under the new or increased DDTL Commitments established in connection therewith) shall decrease (or otherwise count against or reduce) the available amount under the Incremental Cap (which, for purposes of clarity, is Fifty Million Dollars ($50,000,000) on the Second Amendment Effective Date immediately *after* giving effect to this Amendment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>AMENDMENTS TO EXISTING CREDIT AGREEMENT</u>. In accordance with Section 11.4 (*Amendments and Waivers*) of the Existing Credit Agreement, the Existing Credit Agreement is hereby amended in the following respects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Terms of Existing Credit Agreement</u>. The terms of the Existing Credit Agreement (but *not* the Appendices, Schedules and/or Exhibits thereto) are amended and replaced in their entirety to read as set forth in the copy of the entire body of the Amended Credit Agreement attached hereto as <u>Annex I</u> to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Appendix to Existing Credit Agreement</u>. Appendix A (*Lenders*, *Commitments and Commitment Percentages*) to the Existing Credit Agreement is amended by amending and restating such Appendix in its entirety with the Appendix attached hereto as <u>Annex II</u> to this Amendment.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>EFFECTIVENESS; CONDITIONS PRECEDENT</u>. This Amendment shall become effective as of the Second Amendment Effective Date upon the satisfaction of each of the following conditions precedent (in each case, in form and substance satisfactory to the Administrative Agent and the Collateral Agent):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendment</u>. Receipt by the Administrative Agent of a counterpart of this Amendment duly executed by each of the Credit Parties, each of the Second Amendment Joining Lenders, each of the Existing Lenders, the Issuing Bank, the Administrative Agent, and the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organizational Documents; Resolutions and Certificates</u>. Receipt by the Administrative Agent of a duly executed certificate of the secretary or assistant secretary of each Credit Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) certifying that there have been no change(s) to the Organizational Documents of such Credit Party since the First Amendment Effective Date (except as may be disclosed in such certificate, and, in the event of any such change(s), such certificate shall attach copies of such changed Organizational Document(s), as in effect on the Second Amendment Effective Date, that (in the case of any certificate or articles of incorporation, formation or organization, any certificate of limited partnership, or any other registered Organizational Document of any such Person) are certified, as of a recent date, by the applicable Governmental Authority of such Person's jurisdiction of incorporation or formation (as the case may be));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) attaching and certifying a copy of resolutions (or unanimous written consents) of the board of directors or managers (or equivalent governing body) of such Credit Party, authorizing: (A) the timely execution and delivery of this Amendment and the performance by such Credit Party of its respective obligations under this Amendment and the Amended Credit Agreement; (B) the establishment of the Second Amendment Revolver Increase as described herein; (C) the establishment of the Second Amendment DDTL Increase as described herein; and (D) any Credit Extension(s) to occur on the Second Amendment Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if, and to the extent that, the Administrative Agent shall *not* have already received an executed, original incumbency certificate (in form and substance reasonably satisfactory to the Administrative Agent) with respect to any Authorized Officer of such Credit Party signing this Amendment, and/or any other document, agreement, letter, certificate and/or instrument executed, or required to be executed, in connection herewith (including, without limitation, the certificate(s) described in this <u>clause (b</u>)), on its behalf, certifying the name, title, and true signature with respect to each such Authorized Officer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) certifying and attaching a copy of a certificate of good standing, existence, or the like for such Credit Party, certified, as of a recent date, by the applicable Governmental Authority of such Credit Party's jurisdiction of incorporation or formation (as the case may be).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Opinions of Counsel</u>. Receipt by the Administrative Agent of customary written opinions of counsel to the Credit Parties, addressed to the Administrative Agent, the Collateral Agent, the Issuing Bank, and each of the Lenders (including each Second Amendment Joining Lender), and covering such customary matters relating to the Credit Parties, this Amendment, the Amended Credit Agreement, and the transactions contemplated hereby, as are in form and substance reasonably satisfactory to the Administrative Agent and the Collateral Agent (which opinions of counsel shall (i) include, without limitation, customary legal opinions relating to (A) existence, good standing, and corporate authority of the Credit Parties, and (B) governing law and enforceability of this Amendment and the Amended Credit Agreement, and (ii) in any event, expressly permit reliance by the successors and permitted assigns of the Administrative Agent, the Collateral Agent, the Issuing Bank, and the Lenders (including each Second Amendment Joining Lender)).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Diligence Searches</u>. Receipt by the Collateral Agent of copies of UCC lien search results and, if (and to the extent) requested by the Collateral Agent, tax and judgment lien search results (in each case of the foregoing, as required by the Collateral Agent in its reasonable discretion) in the jurisdiction of incorporation or formation, as the case may be, of each Credit Party, together with any such diligence search results in any other necessary or appropriate jurisdiction(s) as reasonably requested by the Collateral Agent, indicating that there are no prior Liens on any of the Collateral, other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Sources and Uses</u>. Receipt by the Administrative Agent of a duly executed funds disbursement or funds direction agreement (including wiring instructions and bank account information), together with a certified report setting forth the sources and uses of, without limitation, the proceeds of any Credit Extension(s) to occur on the Second Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Florida Taxes</u>. Receipt by the Administrative Agent of evidence reasonably satisfactory to the Administrative Agent that either: (i) this Amendment and any Notes being executed in connection with this Amendment (including, without limitation, any Note(s) issued in favor of a Second Amendment Joining Lender) have been executed by the applicable Credit Parties outside of the State of Florida (which evidence shall include a duly executed and notarized affidavit of out-of-state execution); or (ii) all applicable documentary stamp Taxes and intangibles Taxes due and owing to the Florida Department of Revenue under the Laws of the State of Florida in connection with the execution of this Amendment by the Credit Parties, and/or the execution of any Notes being executed in connection with this Amendment (including, without limitation, any Note(s) issued in favor of a Second Amendment Joining Lender) by the Borrower, either have been paid to the Florida Department of Revenue or are being paid to the Florida Department of Revenue substantially concurrently with the closing of this Amendment on the Second Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Fees and Expenses</u>. Receipt by the Administrative Agent of payment of all fees, costs, expenses, charges, disbursements and other amounts due and payable by, or on behalf of, any of the Credit Parties to any of the Administrative Agent, the Collateral Agent, any Arranger, the Swingline Lender, the Issuing Bank, the Second Amendment Joining Lenders (or either of them), and/or the Existing Lenders (or any of them) on, or prior to, the Second Amendment Effective Date, including, without limitation, (i) payment of those certain fees described in that certain engagement letter agreement, dated as of February 26, 2025, by and between Regions Capital Markets, a division of Regions Bank, and the Borrower (the "*<u>Post</u>*<u>-</u>*<u>Closing Syndication</u> <u>Engagement Letter</u>*") in respect of each of (A) the full amount of the new aggregate Revolving Commitments of the Second Amendment Joining Lenders established in connection with the Second Amendment Revolver Increase, (B) the aggregate amount of the respective increases in the existing Revolving Commitments of the Existing Revolver Increase Lenders established in connection with the Second Amendment Revolver Increase, (C) the full amount of the aggregate new DDTL Commitments of the Second Amendment Joining Lenders established in connection with the Second Amendment DDTL Increase, and (D) the aggregate amount of the respective increases in the existing DDTL Commitments of the Existing DDTL Increase Lenders established in connection with the Second Amendment DDTL Increase (in each case of the foregoing <u>clauses</u> <u>(g)(i)(A</u>) through (<u>g)(i)(D</u>), in conformity with the acknowledgements set forth in <u>Section</u> <u>11(b</u>) of this Amendment), and (ii) reimbursement or payment of all reasonable and documented costs

------

and out-of-pocket expenses of the Administrative Agent and its Affiliates (including, without limitation, all filing and recording fees and Taxes and all reasonable and documented fees, charges and disbursements of counsel to the Administrative Agent and the Collateral Agent) required to be reimbursed or paid by any of the Credit Parties under this Amendment, the Amended Credit Agreement, any other Credit Document, and/or any other agreement(s) with the Administrative Agent or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Other Information and Documents</u>. Delivery to the Administrative Agent and/or the Collateral Agent of such other information and/or documents as the Administrative Agent, the Collateral Agent, and/or any Lender may reasonably request or require in connection with this Amendment.

Without limiting the generality of the foregoing provisions of this <u>Section</u> <u>7</u>, for purposes of determining compliance with the conditions specified in this <u>Section</u> <u>7</u>, each Lender (including each Second Amendment Joining Lender) that has signed this Amendment shall be deemed to have consented to, approved of, accepted, or been satisfied with, each document or other matter required hereunder to be consented to or approved by, or acceptable or satisfactory to, a Lender, unless the Administrative Agent shall have received notice from such Lender prior to the proposed Second Amendment Effective Date specifying its objection thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>ACKNOWLEDGEMENT REGARDING DDTL COMMITMENTS</u>. Each of the parties to this Amendment hereby acknowledges, accepts and confirms that: (a) prior to the Second Amendment Effective Date, the full amount of the Aggregate DDTL Commitments, as previously increased pursuant to the First Amendment, was drawn by the Borrower in accordance with the Existing Credit Agreement; (b) immediately *prior* to the effectiveness of this Amendment, (i) the Aggregate DDTL Commitment Amount was Zero Dollars ($0.00), and (ii) the aggregate outstanding principal balance of the Delayed Draw Term Loan was Twenty-Five Million Dollars ($25,000,000); and (c) the new and increased DDTL Commitments established in connection with the Second Amendment DDTL Increase, if and to the extent drawn in accordance with the Amended Credit Agreement, will increase the currently outstanding aggregate principal balance under the Delayed Draw Term Loan. Accordingly, the maximum original principal amount that may (subject to satisfaction of the conditions precedent to Borrowings set forth in Section 5.2 (*Conditions to Each Credit Extension*) of the Amended Credit Agreement) be advanced under the Delayed Draw Term Loan during the portion of the DDTL Availability Period occurring after the Second Amendment Effective Date is Sixty-Five Million Dollars ($65,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>REPRESENTATIONS AND WARRANTIES OF CREDIT PARTIES</u>. Each Credit Party hereby represents and warrants to the Administrative Agent, the Collateral Agent, the Issuing Bank, and each of the Lenders (including each Second Amendment Joining Lender) as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Bring-Down</u>. Both immediately *before* and immediately *after* giving effect to each of (A) the execution and delivery of this Amendment on the Second Amendment Effective Date, (B) the establishment of the Second Amendment Revolver Increase on the Second Amendment Effective Date as described herein, (C) the establishment of the Second Amendment DDTL Increase on the Second Amendment Effective Date as described herein, and (D) any Credit Extension(s) to occur on the Second Amendment Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no event shall have occurred and be continuing that would constitute an Event of Default or a Default;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all representations and warranties of each Credit Party set forth in the Credit Documents are true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties are true and correct in all respects), except to the extent that such representations and warranties specifically relate to an *earlier* date, in which case, such representations and warranties are true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties are true and correct in all respects) as of such earlier date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Borrower individually is, and the Credit Parties, Subsidiaries and other Regulated Entities taken as a whole are, Solvent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Financial Condition</u>. Immediately *after* giving effect to each of (A) the execution and delivery of this Amendment on the Second Amendment Effective Date, (B) the establishment of the Second Amendment Revolver Increase on the Second Amendment Effective Date as described herein, (C) the establishment of the Second Amendment DDTL Increase on the Second Amendment Effective Date as described herein, and (D) any Credit Extension(s) to occur on the Second Amendment Effective Date, the Credit Parties shall be in compliance, on a Pro Forma Basis, with each of the Financial Covenants, as demonstrated by reasonably detailed financial calculations attached to this Amendment as <u>Annex III</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Authorization</u>. The execution and delivery by each Credit Party of this Amendment, and the performance by each Credit Party of its respective obligations under this Amendment and the Amended Credit Agreement, is within such Credit Party's organizational powers. Each Credit Party has taken all necessary organizational, and if required, shareholder, partner, trustee or member (as the case may be) action to duly authorize each of (i) the execution and delivery of this Amendment on the Second Amendment Effective Date and the performance by each Credit Party of its respective obligations under this Amendment and the Amended Credit Agreement, (ii) the establishment of the Second Amendment Revolver Increase on the Second Amendment Effective Date as described herein, (iii) the establishment of the Second Amendment DDTL Increase on the Second Amendment Effective Date as described herein, and (iv) any Credit Extension(s) to occur on the Second Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Validity; Enforceability</u>. This Amendment has been duly executed and delivered by each Credit Party and constitutes a legal, valid and binding obligation of each Credit Party, enforceable against each Credit Party in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar Applicable Laws affecting the enforcement of creditors' rights generally and by general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Required Consents and Approvals</u>. The Credit Parties have received all consents (including, without limitation, any necessary governmental consents, as applicable), approvals, authorizations, registrations, filings and orders required or advisable to be made or obtained (as the case may be) under any Applicable Law, under the Organizational Documents of any Credit Party, or pursuant to any Contractual Obligation of any Credit Party, in each case of the foregoing, in connection with any of the execution, delivery, validity and enforceability of this Amendment and/or the performance by each Credit Party of its respective obligations under this Amendment and the Amended Credit Agreement, or in connection with any Credit Extension(s) to occur on the Second Amendment Effective Date and/or any of the transactions contemplated hereby, and such consents, approvals, authorizations, registrations, filings and orders are currently in full force and effect and all applicable waiting periods have expired, and no investigation or inquiry by any Governmental Authority regarding any of the Commitments (including, without limitation, any of the Commitments of the Second Amendment Joining Lenders established pursuant to this Amendment), any transaction(s) being financed (in whole or in part) with the proceeds of any Loans, this Amendment, or any of the transactions contemplated hereby, is ongoing.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Beneficial Ownership</u>. As of the Second Amendment Effective Date, the information included in each Beneficial Ownership Certification (as applicable) is true and correct in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Florida Taxes</u>. All applicable documentary stamp taxes and intangibles Taxes that will be due and owing to the Florida Department of Revenue under the Applicable Laws of the State of Florida in connection with the closing of this Amendment on the Second Amendment Effective Date (including, without limitation, as a result of the execution by the Borrower of any Note(s) in favor of any Second Amendment Joining Lender(s)) have either been paid to the Florida Department of Revenue or are being paid to the Florida Department of Revenue substantially concurrently with the closing of this Amendment on the Second Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>REAFFIRMATION</u>. Each Credit Party hereby: (a) (i) acknowledges and consents to all of the terms and conditions of this Amendment, (ii) affirms all of its respective obligations under the Existing Credit Agreement and each of the other Credit Documents to which it is a party (as expressly amended by this Amendment, to the extent so amended), and (iii) agrees that this Amendment, and all documents, agreements, letters, certificates and/or instruments executed in connection with this Amendment, do *not* operate to reduce or discharge any Credit Party's obligations under the Existing Credit Agreement or any of the other Credit Documents to which it is a party (as expressly amended by this Amendment, to the extent so amended); and (b) (i) affirms that each of the Liens granted in, or pursuant to, the Credit Documents is valid and subsisting, and (ii) agrees that this Amendment, and all documents, agreements, certificates and/or instruments executed in connection with this Amendment, do *not*, in any manner, impair, or otherwise adversely affect, any of the Liens granted in, or pursuant to, any of the Credit Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>MISCELLANEOUS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Credit Document; Reference of Terms</u>. This Amendment is hereby deemed to be, and shall be, a Credit Document, and all references to a "*Credit Document*" or the "*Credit Documents*" in the Amended Credit Agreement, in any other Credit Document, or in any other document, agreement, letter, certificate and/or instrument executed and delivered pursuant to the terms thereof, whether executed on, prior to or after the Second Amendment Effective Date (including, without limitation, all such references in the representations and warranties of the Credit Parties set forth in the Amended Credit Agreement and the other Credit Documents to which they are a party), shall be deemed to include, and shall include, this Amendment. All references to "*this Agreement*" in the Amended Credit Agreement, and all references to the "*Credit Agreement*" in any other Credit Document or in any other document, agreement, letter, certificate and/or instrument executed and delivered pursuant to the terms thereof, whether executed on, prior to or after the Second Amendment Effective Date (including, without limitation, all such references in the representations and warranties of the Credit Parties set forth in the Amended Credit Agreement and the other Credit Documents to which they are a party), are hereby amended so that any reference to "*this Agreement*" or the "*Credit Agreement*" therein, as the case may be, shall be, and be deemed to be, a reference to the Amended Credit Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Post-Closing Syndication Fees Acknowledgment</u>. This Amendment is an "*Increase Amendment*" as such term is defined and used in the Post-Closing Syndication Engagement Letter; the full amount of the Second Amendment Revolver Increase (which includes, for purposes of clarity, the full amount of the aggregate new Revolving Commitments of the Second Amendment Joining Lenders as well as the aggregate amount of the respective increases in the existing Revolving Commitments of the Existing Revolver Increase Lenders, in each case of the foregoing, established in connection with the Second Amendment Revolver Increase), which is Fifteen Million Dollars ($15,000,000), constitutes "*New Commitments*" as such term as such term is defined and used in the Post-Closing Syndication Engagement Letter; the full amount of the Second Amendment DDTL Increase (which includes, for purposes of clarity, the full amount of the aggregate new DDTL Commitments of the Second Amendment Joining Lenders as well as the aggregate amount of the respective increases in the existing DDTL Commitments of the Existing DDTL Increase Lenders, in each case of the foregoing, established in connection with the Second Amendment DDTL Increase), which is Thirty-Five Million Dollars ($35,000,000), constitutes "*New Commitments*" as such term as such term is defined and used in the Post-Closing Syndication Engagement Letter; each of the Second Amendment Joining Lenders is a "*Joining Lender*" as such term is defined and used in the Post-Closing Syndication Engagement Letter; and the Second Amendment Effective Date is an "*Amendment Effective Date*" as such term is defined and used in the Post-Closing Syndication Engagement Letter. It is further acknowledged that none of the execution and delivery of this Amendment, the establishment of the Second Amendment Revolver Increase or the establishment of the Second Amendment DDTL Increase, in each case of the foregoing, on the Second Amendment Effective Date constitutes (whether individually or taken together in the aggregate) the "completion of the syndication, arrangement and/or placement of the New Commitments" as such phrase is used in clause (ii) of Section E.2. (*Termination*) of the Post-Closing Syndication Engagement Letter; and <u>accordingly</u>, that the Post-Closing Syndication Engagement Letter shall (i) survive the execution and delivery of this Amendment, the establishment of the Second Amendment Revolver Increase and the establishment of the Second Amendment DDTL Increase on the Second Amendment Effective Date, and (ii) remain in full force and effect in accordance with the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Full Force and Effect</u>. Except as expressly modified and amended by this Amendment, all of the terms, provisions and conditions of the Credit Documents (including in any Appendices, Schedules and/or Exhibits thereto) shall remain in full force and effect according to their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Counterparts; Delivery</u>. This Amendment may be executed by one (1) or more of the parties to this Amendment on any number of separate counterparts, and all of said counterparts shall, taken together, be deemed to constitute one (1) and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment, by facsimile transmission or any other electronic imaging means (including in ".pdf" format), shall be as effective as delivery of a manually executed counterpart of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Electronic Execution</u>. Each of the parties to this Amendment hereby agrees that: (i) the electronic signature of any party to this Amendment shall be as valid as an original "wet" signature of such party hereto, and <u>further</u>, <u>that</u>, such signature shall be effective to bind such party to this Amendment; and (ii) any electronically signed document (including, without limitation, this Amendment) shall be deemed to (A) be "written" or "in writing", (B) have been signed, (C) constitute a record established and maintained in the ordinary course of business, and (D) constitute an original written record when printed from electronic files. Such paper copies or "printouts", if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding, will be admissible as between the parties to the same extent, and under the same conditions, as other original business records created and maintained in documentary form. None of the parties to this Amendment shall contest the admissibility of true and accurate copies of electronically signed documents on the basis of the best evidence rule or as not satisfying the business records exception to the hearsay rule. For purposes of this <u>clause (e</u>): (I) "*<u>electronic signature</u>*" shall mean a manually-signed original signature that is then transmitted by electronic means; (II) "*<u>transmitted by electronic means</u>*" shall mean sent in the form of a facsimile or sent via the internet as a ".pdf" (portable document format) or other replicating image attached to an e-mail message; and (III) "*<u>electronically signed document</u>*" shall mean a document transmitted by electronic means and containing, or to which there is affixed, an electronic signature.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Governing Law</u>. THIS AMENDMENT AND ANY CLAIMS, CONTROVERSIES, DISPUTES AND/OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF, OR RELATING TO THIS AMENDMENT AND/OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Fees and Expenses</u>. The Borrower hereby agrees to pay all reasonable and documented costs, fees and out-of-pocket expenses of the Administrative Agent and the Collateral Agent in connection with the preparation, execution and delivery of this Amendment, including, without limitation, the reasonable and documented fees, charges, out-of-pocket expenses and disbursements of Haynes and Boone, LLP, as counsel to the Administrative Agent and the Collateral Agent.

[*Remainder of Page Intentionally Left Blank*; *Signature Pages Follow*]

------

IN WITNESS WHEREOF, each of the parties to this Amendment have caused a counterpart of this Amendment to be duly executed and delivered by its below respective duly authorized officer as of the Second Amendment Effective Date.

---

| | | |
|:---|:---|:---|
| BORROWER: | **SAFEPOINT HOLDINGS**, **INC**., | **SAFEPOINT HOLDINGS**, **INC**., |
|  | a Florida corporation | a Florida corporation |
|  | By: | /s/ David Flitman |
|  | Name: | David Flitman |
|  | Title: | Chief Executive Officer |
| GUARANTORS: | **CAJUN UNDERWRITERS HOLDINGS**, **LLC**, | **CAJUN UNDERWRITERS HOLDINGS**, **LLC**, |
|  | a Delaware limited liability company | a Delaware limited liability company |
|  | **CAJUN UNDERWRITERS RISK MANAGEMENT**, **LLC**, | **CAJUN UNDERWRITERS RISK MANAGEMENT**, **LLC**, |
|  | a Delaware limited liability company | a Delaware limited liability company |
|  | **INSIGHT RISK SOLUTIONS**, **LLC**, | **INSIGHT RISK SOLUTIONS**, **LLC**, |
|  | a Florida limited liability company | a Florida limited liability company |
|  | **MANATEE RISK MANAGEMENT LLC**, | **MANATEE RISK MANAGEMENT LLC**, |
|  | a Florida limited liability company | a Florida limited liability company |
|  | **SAFEPOINT MGA**, **LLC**, | **SAFEPOINT MGA**, **LLC**, |
|  | a Florida limited liability company | a Florida limited liability company |
|  | By: | /s/ David Flitman |
|  | Name: | David Flitman |
|  | Title: | Chief Executive Officer |

---

[*Signature Pages Continue*]

Signature Page to Second Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | | |
|:---|:---|:---|
| ADMINISTRATIVE AGENT |  |  |
| AND COLLATERAL AGENT: | **REGIONS BANK,** | **REGIONS BANK,** |
|  | as Administrative Agent and Collateral Agent | as Administrative Agent and Collateral Agent |
|  | By: | /s/ Jon McRae |
|  | Name: | Jon McRae |
|  | Title: | Director |

---

[*Signature Pages Continue*]

Signature Page to Second Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | | |
|:---|:---|:---|
| LENDERS: | **REGIONS BANK,** | **REGIONS BANK,** |
|  | as Issuing Bank, as Swingline Lender, as an Existing Revolver Increase Lender, as an Existing DDTL Increase Lender, and as a Lender | as Issuing Bank, as Swingline Lender, as an Existing Revolver Increase Lender, as an Existing DDTL Increase Lender, and as a Lender |
|  | By: | /s/ Jon McRae |
|  | Name: | Jon McRae |
|  | Title: | Director |

---

[*Signature Pages Continue*]

Signature Page to Second Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **KEYBANK NATIONAL ASSOCIATION,** | **KEYBANK NATIONAL ASSOCIATION,** |
| as a Second Amendment Joining Lender and as a Lender | as a Second Amendment Joining Lender and as a Lender |
| By: | /s/ Amra Rausche |
| Name: | Amra Rausche |
| Title: | Senior Vice President |

---

[*Signature Pages Continue*]

Signature Page to Second Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **CITIZENS BANK, N.A.,** | **CITIZENS BANK, N.A.,** |
| as a Second Amendment Joining Lender and as a Lender | as a Second Amendment Joining Lender and as a Lender |
| By: | /s/ Donald A. Wright |
| Name: | Donald A. Wright |
| Title: | SVP |

---

[*Signature Pages Continue*]

Signature Page to Second Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **EAST WEST BANK,** | **EAST WEST BANK,** |
| as a Second Amendment Joining Lender and as a Lender | as a Second Amendment Joining Lender and as a Lender |
| By: | /s/ Ken Phelps |
| Name: | Ken Phelps |
| Title: | SVP |

---

[*Signature Pages Continue*]

Signature Page to Second Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **TRUIST BANK,** | **TRUIST BANK,** |
| as a Second Amendment Joining Lender and as a Lender | as a Second Amendment Joining Lender and as a Lender |
| By: | /s/ David Fournier |
| Name: | David Fournier |
| Title: | Managing Director |

---

[*Signature Pages Continue*]

Signature Page to Second Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **TEXAS CAPITAL BANK,** | **TEXAS CAPITAL BANK,** |
| as an Existing Revolver Increase Lender, as an Existing DDTL Increase Lender, and as a Lender | as an Existing Revolver Increase Lender, as an Existing DDTL Increase Lender, and as a Lender |
| By: | /s/ Ben Beugelsdijk |
| Name: | Ben Beugelsdijk |
| Title: | Vice President |

---

[*Signature Pages Continue*]

Signature Page to Second Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **SYNOVUS BANK,** | **SYNOVUS BANK,** |
| as an Existing Revolver Increase Lender, as an Existing DDTL Increase Lender, and as a Lender | as an Existing Revolver Increase Lender, as an Existing DDTL Increase Lender, and as a Lender |
| By | /s/ Jeffrey Sinkele |
| Name: | Jeffrey Sinkele |
| Title: | Vice President |

---

[*Signature Pages Continue*]

Signature Page to Second Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **DEUTSCHE BANK AG NEW YORK BRANCH,** | **DEUTSCHE BANK AG NEW YORK BRANCH,** |
| as a Lender | as a Lender |
| By | /s/ Ming K Chu |
| Name: | Ming K Chu |
| Title: | Director |
| By: | /s/ Marko Lukin |
| Name: | Marko Lukin |
| Title: | Vice President |

---

[*Signature Pages Continue*]

Signature Page to Second Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **LAKE FOREST BANK & TRUST COMPANY, NATIONAL ASSOCIATION (a subsidiary of Wintrust Financial Corporation),** | **LAKE FOREST BANK & TRUST COMPANY, NATIONAL ASSOCIATION (a subsidiary of Wintrust Financial Corporation),** |
| as an Existing Revolver Increase Lender, as an Existing DDTL Increase Lender, and as a Lender | as an Existing Revolver Increase Lender, as an Existing DDTL Increase Lender, and as a Lender |
| By: | /s/ Chris Martorelli |
| Name: | Chris Martorelli |
| Title: | Vice President |

---

[*Signature Pages End*]

Signature Page to Second Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

ANNEX I

TO SECOND AMENDMENT TO CREDIT AGREEMENT

**BODY OF CREDIT AGREEMENT** 

See attached.

[*Remainder of Page Intentionally Left Blank*]

Annex I to Second Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

ANNEX I

TO SECOND AMENDMENT TO CREDIT AGREEMENT

**CREDIT AGREEMENT** 

dated as of February 18, 2025

by and among

SAFEPOINT HOLDINGS, INC.

as the Borrower,

CERTAIN SUBSIDIARIES OF THE BORROWER FROM TIME TO TIME PARTY HERETO,

as Guarantors,

THE LENDERS FROM TIME TO TIME PARTY HERETO,

and

REGIONS BANK,

as the Administrative Agent, the Collateral Agent, the Issuing Bank and the Swingline Lender

TEXAS CAPITAL BANK,

as Syndication Agent

SYNOVUS BANK,

and

KEYBANK NATIONAL ASSOCIATION,

as Documentation Agent

REGIONS CAPITAL MARKETS, a division of Regions Bank,

TCBI SECURITIES, INC.,

SYNOVUS BANK,

and

KEYBANK NATIONAL ASSOCIATION,

as Joint Lead Arrangers and Joint Bookrunners

Cover Page to Credit Agreement (Safepoint Holdings, Inc.)

------

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
|  |  | *Page* |
| **Article 1 — DEFINITIONS AND INTERPRETATION** | **Article 1 — DEFINITIONS AND INTERPRETATION** | **1** |
| Section 1.1 | Definitions | 1 |
| Section 1.2 | Accounting Terms | 55 |
| Section 1.3 | Rules of Interpretation | 57 |
| Section 1.4 | Rules of Interpretation with Respect to Regulated Subsidiaries | 60 |
| Section 1.5 | Classifications of Loans and Borrowings | 60 |
| Section 1.6 | Cashless Rollovers | 60 |
| Section 1.7 | Interest Rate Disclosure | 60 |
| **Article 2 — LOANS AND LETTERS OF CREDIT** | **Article 2 — LOANS AND LETTERS OF CREDIT** | **61** |
| Section 2.1 | Revolving Loans and Term Loans | 61 |
| Section 2.2 | Swingline Loans | 65 |
| Section 2.3 | Issuances of Letters of Credit and Purchase of Participations Therein | 68 |
| Section 2.4 | Pro Rata Shares; Availability of Funds | 73 |
| Section 2.5 | Evidence of Debt; Register; Lenders' Books and Records; Notes | 74 |
| Section 2.6 | Scheduled Principal Payments | 74 |
| Section 2.7 | Interest on Loans | 75 |
| Section 2.8 | Conversion / Continuation | 77 |
| Section 2.9 | Default Rate of Interest | 78 |
| Section 2.10 | Fees | 79 |
| Section 2.11 | Prepayments/Commitment Reductions | 80 |
| Section 2.12 | Application of Prepayments | 83 |
| Section 2.13 | General Provisions Regarding Payments | 83 |
| Section 2.14 | Sharing of Payments by Lenders | 85 |
| Section 2.15 | Cash Collateral | 85 |
| Section 2.16 | Defaulting Lenders | 86 |
| Section 2.17 | Removal or Replacement of Lenders | 89 |
| **Article 3 — YIELD PROTECTION** | **Article 3 — YIELD PROTECTION** | **90** |
| Section 3.1 | Making or Maintaining SOFR Loans; Benchmark Replacement | 90 |
| Section 3.2 | Increased Costs | 94 |
| Section 3.3 | Taxes | 95 |
| Section 3.4 | Mitigation Obligations; Designation of a Different Lending Office | 99 |
| **Article 4 — GUARANTY** | **Article 4 — GUARANTY** | **99** |
| Section 4.1 | The Guaranty | 99 |
| Section 4.2 | Obligations Unconditional | 100 |
| Section 4.3 | Reinstatement | 101 |
| Section 4.4 | Certain Additional Waivers | 101 |
| Section 4.5 | Remedies | 101 |
| Section 4.6 | Rights of Contribution | 101 |
| Section 4.7 | Guarantee of Payment; Continuing Guarantee | 102 |
| Section 4.8 | Keepwell | 102 |
| **Article 5 — CONDITIONS PRECEDENT** | **Article 5 — CONDITIONS PRECEDENT** | **102** |
| Section 5.1 | Conditions Precedent to Initial Credit Extensions | 102 |
| Section 5.2 | Conditions to Each Credit Extension | 105 |

---

**Table of Contents** to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | | |
|:---|:---|:---|
| **Article 6 — REPRESENTATIONS AND WARRANTIES** | **Article 6 — REPRESENTATIONS AND WARRANTIES** | **106** |
| Section 6.1 | Organization; Requisite Power and Authority; Qualification | 106 |
| Section 6.2 | Equity Interests and Ownership | 107 |
| Section 6.3 | Due Authorization | 107 |
| Section 6.4 | No Conflict | 107 |
| Section 6.5 | Governmental Consents | 107 |
| Section 6.6 | Binding Obligation | 107 |
| Section 6.7 | Financial Statements | 108 |
| Section 6.8 | No Material Adverse Effect; No Default or Event of Default | 109 |
| Section 6.9 | Tax Matters | 109 |
| Section 6.10 | Properties | 109 |
| Section 6.11 | Environmental Matters | 110 |
| Section 6.12 | No Defaults | 110 |
| Section 6.13 | No Litigation or other Adverse Proceedings | 110 |
| Section 6.14 | Information Regarding Credit Parties, Subsidiaries and Other Regulated Entities | 111 |
| Section 6.15 | Governmental Regulation | 111 |
| Section 6.16 | Employee Matters | 112 |
| Section 6.17 | Pension Plans | 113 |
| Section 6.18 | Solvency | 114 |
| Section 6.19 | Compliance with Laws | 114 |
| Section 6.20 | Disclosure | 114 |
| Section 6.21 | Insurance | 114 |
| Section 6.22 | Pledge and Security Agreement | 114 |
| Section 6.23 | Mortgages | 115 |
| Section 6.24 | No Casualty | 115 |
| **Article 7 — AFFIRMATIVE COVENANTS** | **Article 7 — AFFIRMATIVE COVENANTS** | **115** |
| Section 7.1 | Financial Statements and Other Reports | 116 |
| Section 7.2 | Existence | 120 |
| Section 7.3 | Payment of Taxes and Claims | 120 |
| Section 7.4 | Maintenance of Properties | 120 |
| Section 7.5 | Insurance | 120 |
| Section 7.6 | Inspections | 121 |
| Section 7.7 | Lenders Meetings | 121 |
| Section 7.8 | Compliance with Laws and Material Contracts | 121 |
| Section 7.9 | Use of Proceeds | 122 |
| Section 7.10 | Environmental Matters | 122 |
| Section 7.11 | Additional Real Estate Assets | 122 |
| Section 7.12 | Pledge of Personal Property Assets | 124 |
| Section 7.13 | Books and Records | 125 |
| Section 7.14 | Additional Subsidiaries | 125 |
| Section 7.15 | Maintenance of Reinsurance | 125 |
| **Article 8 — NEGATIVE COVENANTS** | **Article 8 — NEGATIVE COVENANTS** | **126** |
| Section 8.1 | Indebtedness | 126 |
| Section 8.2 | Liens | 128 |
| Section 8.3 | No Further Negative Pledges | 130 |
| Section 8.4 | Restricted Payments | 130 |
| Section 8.5 | Burdensome Agreements | 131 |

---

ii

------

---

| | | |
|:---|:---|:---|
| Section 8.6 | Investments | 132 |
| Section 8.7 | Use of Proceeds | 134 |
| Section 8.8 | Financial Covenants | 134 |
| Section 8.9 | Fundamental Changes; Disposition of Assets; Acquisitions | 134 |
| Section 8.10 | Disposal of Subsidiary Interests | 135 |
| Section 8.11 | Sales and Lease-Backs | 135 |
| Section 8.12 | Transactions with Affiliates and Insiders | 136 |
| Section 8.13 | Modification or Payment of Certain Funded Debt | 136 |
| Section 8.14 | Conduct of Business | 137 |
| Section 8.15 | Fiscal Year | 137 |
| Section 8.16 | Amendments to Organizational Agreements / Material Agreements | 137 |
| Section 8.17 | Accounting and Reporting Changes | 138 |
| Section 8.18 | Statutory Capitalization / Risk-Based Capital Ratio | 138 |
| Section 8.19 | Holdco Restrictions | 138 |
| **Article 9 — EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS** | **Article 9 — EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS** | **139** |
| Section 9.1 | Events of Default | 139 |
| Section 9.2 | Remedies | 143 |
| Section 9.3 | Application of Funds | 144 |
| **Article 10 — AGENCY** | **Article 10 — AGENCY** | **147** |
| Section 10.1 | Appointment and Authority | 147 |
| Section 10.2 | Rights as a Lender | 147 |
| Section 10.3 | Exculpatory Provisions | 148 |
| Section 10.4 | Reliance by Administrative Agent | 149 |
| Section 10.5 | Delegation of Duties | 149 |
| Section 10.6 | Resignation of Administrative Agent | 149 |
| Section 10.7 | Non-Reliance on Administrative Agent and Other Lenders | 150 |
| Section 10.8 | No Other Duties, etc. | 151 |
| Section 10.9 | Administrative Agent May File Proofs of Claim | 151 |
| Section 10.10 | Collateral and Guaranty Matters | 152 |
| Section 10.11 | Erroneous Payments | 153 |
| **Article 11 — MISCELLANEOUS** | **Article 11 — MISCELLANEOUS** | **156** |
| Section 11.1 | Notices; Effectiveness; Electronic Communications | 156 |
| Section 11.2 | Expenses; Indemnity; Damage Waiver | 157 |
| Section 11.3 | Set-Off | 160 |
| Section 11.4 | Amendments and Waivers | 160 |
| Section 11.5 | Successors and Assigns | 163 |
| Section 11.6 | Independence of Covenants | 168 |
| Section 11.7 | Survival of Representations, Warranties and Agreements | 168 |
| Section 11.8 | No Waiver; Remedies Cumulative | 168 |
| Section 11.9 | Marshalling; Payments Set Aside | 169 |
| Section 11.10 | Severability | 169 |
| Section 11.11 | Obligations Several; Independent Nature of Lenders' Rights | 169 |
| Section 11.12 | Headings | 169 |
| Section 11.13 | Applicable Laws | 169 |
| Section 11.14 | WAIVER OF JURY TRIAL | 170 |
| Section 11.15 | Confidentiality | 170 |
| Section 11.16 | Usury Savings Clause | 172 |
| Section 11.17 | Electronic Execution; Counterparts | 173 |

---

iii

------

---

| | | |
|:---|:---|:---|
|  Section 11.18 | No Advisory or Fiduciary Relationship | 173.0 |
|  Section 11.19 | Integration; Effectiveness | 174.0 |
|  Section 11.20 | USA PATRIOT Act | 174.0 |
|  Section 11.21 | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 174.0 |
|  Section 11.22 | Certain ERISA Matters | 175.0 |
|  Section 11.23 | Acknowledgment Regarding any Supported QFCs | 176.0 |

---

iv

------

<u>Appendices</u>:

---

| | |
|:---|:---|
| Appendix A | Lenders, Commitments and Commitment Percentages |
| Appendix B | Notice Information |

---

<u>Schedules</u>:

---

| | |
|:---|:---|
| Schedule 6.1 | Organization; Requisite Power and Authority; Qualification |
| Schedule 6.2 | Equity Interests and Ownership |
| Schedule 6.10(b) | Real Estate Assets |
| Schedule 6.14 | Names, Jurisdictions and Tax Identification Numbers |
| Schedule 6.21 | Insurance Coverage |
| Schedule 8.1 | Existing Indebtedness |
| Schedule 8.2 | Existing Liens |
| Schedule 8.6 | Existing Investments |

---

<u>Exhibits</u>:

---

| | |
|:---|:---|
| Exhibit 1.1 | [*Form of*] Secured Party Designation Notice |
| Exhibit 2.1 | [*Form of*] Funding Notice |
| Exhibit 2.3 | [*Form of*] Issuance Notice |
| Exhibit 2.5 | [*Form of*] Note |
| Exhibit 2.8 | [*Form of*] Conversion / Continuation Notice |
| Exhibit 3.3 | [*Forms of*] U.S. Tax Compliance Certificates (Forms 1 – 4) |
| Exhibit 7.1(c) | [*Form of*] Compliance Certificate |
| Exhibit 7.14 | [*Form of*] Guarantor Joinder Agreement |
| Exhibit 11.5 | [*Form of*] Assignment Agreement |

---

v

------

**CREDIT AGREEMENT** 

This CREDIT AGREEMENT (as amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time, this "*<u>Agreement</u>*"), dated as of February 18, 2025 (the "*<u>Closing Date</u>*"), is entered into by and among SAFEPOINT HOLDINGS, INC., a Florida corporation (the "*<u>Borrower</u>*"), certain Subsidiaries of the Borrower from time to time party hereto, as Guarantors, the Lenders from time to time party hereto, and REGIONS BANK, as administrative agent (in such capacity, together with its successors and permitted assigns in such capacity, the "*<u>Administrative Agent</u>*") and collateral agent (in such capacity, together with its successors and permitted assigns in such capacity, the "*<u>Collateral Agent</u>*").

R E C I T A L S

WHEREAS, the Borrower has requested that the Lenders provide, in its favor, (i) a Fifty Million Dollar ($50,000,000) revolving credit facility (as increased pursuant to the Second Amendment), (ii) a term loan, advanced in a single installment on the Closing Date, in an original principal amount of One-Hundred Million Dollars ($100,000,000), and (iii) a delayed draw term loan, to be advanced in up to five (5) separate installments during the DDTL Availability Period (here and hereafter as such term is defined in <u>Section</u> <u>1.1</u>), in an aggregate original principal amount (for all such installments, taken together) of up to Ninety Million Dollars ($90,000,000) (as increased pursuant to the First Amendment and the Second Amendment); and

WHEREAS, the Lenders have agreed to make the requested credit facilities available to the Borrower, in each case, on the terms, and subject to the conditions, set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements contained herein, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, each of the parties to this Agreement hereby covenant and agree as follows:

A G R E E M E N T

**Article 1** 

**<u>DEFINITIONS AND INTERPRETATION</u>**

Section 1.1 <u>Definitions</u>. The following terms used herein, including in the introductory paragraph, recitals, appendices, exhibits and schedules hereto, shall have the following meanings:

"*<u>Acquisition</u>*" shall mean, with respect to any Person, the acquisition by such Person, in a single transaction or in a series of related transactions, of: (a) all, or any substantial portion, of the Property of another Person, or any division, line of business or other business unit of another Person; or (b) *at least* a majority of the Voting Stock of another Person, in each case, whether or not involving a merger or consolidation with such other Person and whether for cash, property, services, assumption of Indebtedness, securities or otherwise.

"*<u>Additional Incremental Lender</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.1(d)(i)(D</u>).

Credit Agreement (Safepoint Holdings, Inc.)

------

"*<u>Administrative Agent</u>*" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"*<u>Administrative Questionnaire</u>*" shall mean an administrative questionnaire provided by the Lenders in a form supplied by the Administrative Agent.

"*<u>Adverse Proceeding</u>*" shall mean any action, suit, proceeding (whether administrative, judicial or otherwise), governmental investigation or arbitration (whether or not purportedly on behalf of any Credit Party, any Subsidiary or any other Regulated Entity) at law or in equity, or before or by any Governmental Authority, whether pending, threatened in writing against any Credit Party, any Subsidiary or any other Regulated Entity or any material Property of any Credit Party, any Subsidiary or any other Regulated Entity.

"*<u>Affected Financial Institution</u>*" shall mean: (a) any EEA Financial Institution; or (b) any UK Financial Institution.

"*<u>Affected Lender</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.1(b</u>).

"*<u>Affected Loans</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.1(b</u>).

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

"*<u>Agent</u>*" shall mean, collectively, the Administrative Agent and the Collateral Agent.

"*<u>Aggregate DDTL Commitment Amount</u>*" shall mean, at any time, the amount of the Aggregate DDTL Commitments in effect at such time. On the Second Amendment Effective Date immediately *after* giving effect to the Second Amendment DDTL Increase (as such term is defined in the Second Amendment), the Aggregate DDTL Commitment Amount is Sixty-Five Million Dollars ($65,000,000).

"*<u>Aggregate DDTL Commitments</u>*" shall mean, at any time, the DDTL Commitments of all of the Lenders in effect at such time, taken together.

"*<u>Aggregate Revolving Commitment Amount</u>*" shall mean, at any time, the amount of the Aggregate Revolving Commitments in effect at such time. On the Second Amendment Effective Date immediately after giving effect to the Second Amendment Revolver Increase (as such term is defined in the Second Amendment), the Aggregate Revolving Commitment Amount is Fifty Million Dollars ($50,000,000).

"*<u>Aggregate Revolving Commitments</u>*" shall mean, at any time, the Revolving Commitments of all of the Lenders in effect at such time, taken together.

"*<u>Aggregate Revolving Credit Exposure</u>*" shall mean, at any time, the *sum of* the Revolving Credit Exposures of all of the Lenders at such time, taken together.

"*<u>Aggregate Term Loan A Commitment Amount</u>*" shall mean, at any time, the amount of the Aggregate Term Loan A Commitments in effect at such time. On the Closing Date as of the time of initial effectiveness of this Agreement (but *prior* to giving effect to the Borrowing of the Term Loan A on the Closing Date), the Aggregate Term Loan A Commitment Amount was One-Hundred Million Dollars ($100,000,000).

------

"*<u>Aggregate Term Loan A Commitments</u>*" shall mean, at any time, the Term Loan A Commitments of all of the Lenders in effect at such time, taken together.

"*<u>Agreement</u>*" shall have the meaning specified for such term in the introductory paragraph of this Agreement.

"*<u>All</u>*<u>-</u>*<u>In Yield</u>*" shall mean, as to any Indebtedness, the yield thereof (without giving effect to any underlying fluctuations in the underlying base rate), whether in the form of interest rate, margin, original issue discount, upfront fees, a SOFR or Base Rate floor (or any floor on any SOFR-Based Rate or any other interest rate that is derived from SOFR, the SOFR Reference Rate for an applicable tenor or the Base Rate), or otherwise, in each case of the foregoing, incurred or payable by the Borrower generally to all of the lenders of such Indebtedness; <u>provided</u>, <u>that</u>, (i) original issue discount and upfront fees shall be equated to interest rate assuming a four (4) year life to maturity (or, if less, the stated life to maturity at the time of incurrence of the applicable Indebtedness), (ii) "*All*-*In Yield*" shall *not* include customary arrangement fees, structuring fees, commitment fees, underwriting fees, amendment fees and similar fees (regardless of whether paid, in whole or in part, to any or all of lenders of such Indebtedness), or other fees *not* paid generally to all lenders of such Indebtedness, and (iii) if such Indebtedness includes a SOFR or Base Rate floor (or any floor on any SOFR-Based Rate or any other interest rate that is derived from SOFR, the SOFR Reference Rate for an applicable tenor, or the Base Rate) that is *greater than* the SOFR or Base Rate floor (or any floor on any SOFR-Based Rate or any other interest rate that is derived from SOFR, the SOFR Reference Rate for an applicable tenor, or the Base Rate) applicable to any existing Class of Term Loans, such differential between interest rate floors shall be included in the calculation of All-In Yield, but only to the extent that an increase in the interest rate floor applicable to such existing Class of Term Loans would cause an increase in the interest rate then in effect thereunder, and in such case, the interest rate floor (but *not* the Applicable Margin) applicable to such existing Class of Term Loans shall be increased to the extent of such differential between interest rate floors.

"*<u>ALTA</u>*" shall mean the American Land Title Association.

"*<u>Annual Financial Statements</u>*" shall have the meaning specified for such term in <u>Section</u> <u>5.1(f)(ii</u>).

"*<u>Anti</u>*<u>-</u>*<u>Corruption Laws</u>*" shall mean the Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd–1, *et seq*.*,* the UK Bribery Act of 2010, and all other laws, rules, and regulations of any jurisdiction applicable to any Credit Party or any of its Affiliates from time to time concerning or relating to bribery or corruption.

"*<u>Applicable Laws</u>*" shall mean all applicable laws, including all applicable provisions of constitutions, statutes, rules, ordinances, regulations and orders of all Governmental Authorities and all orders, rulings, writs and decrees of all courts, tribunals and arbitrators.

"*<u>Applicable Margin</u>*" shall mean, except as otherwise set forth in (A) any Incremental Facility Agreement with respect to any Incremental Term Loan established thereunder, or (B) any Auto Borrow Agreement with respect to any Swingline Loan advanced pursuant to an Auto Borrow Agreement then in effect, as of any date of determination, (a) during the period from the Closing Date through, and including, the date that is two (2) Business Days immediately following the date on which the financial statements and related Compliance Certificate are delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>) and <u>Section</u> <u>7.1(c</u>), respectively, for the Fiscal Quarter ending March 31, 2025, the applicable percentage per annum based upon Pricing Level III as set forth in the table immediately below, and (b) thereafter, the applicable percentage per annum determined by reference to the table set forth immediately below, using the Consolidated Leverage Ratio as set forth in the Compliance Certificate most recently delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(c</u>), with any increase or decrease in the Applicable Margin resulting from a change in the Consolidated Leverage Ratio becoming effective on the date that is two (2) Business Days immediately following the date on which such Compliance Certificate is delivered.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Pricing**<br> **Level** | **Consolidated Leverage Ratio** | **SOFR Loans and**<br>**Letter of Credit Fee** | **Base Rate Loans** | **Commitment**<br>**Fee** |
| I | < 1.25 to 1 | 3.25% | 2.25% | 0.400% |
| II | < 1.75 to 1.0, *but* ≥ 1.25 to 1 | 3.50% | 2.50% | 0.450% |
| III | ≥ 1.75 to 1 | 3.75% | 2.75% | 0.500% |

---

Notwithstanding anything to the contrary in the foregoing: (i) if, at any time, a Compliance Certificate and/or the accompanying financial statements are *not* delivered when due in accordance herewith, then Pricing Level III as set forth in the table immediately above shall apply as of the first (1<sup>st</sup>) Business Day after the date on which such Compliance Certificate and accompanying financial statements were required to have been delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>) and <u>Section</u> <u>7.1(c</u>), respectively, and such Pricing Level shall remain in effect until the date on which such Compliance Certificate and such accompanying financial statements are delivered to the Administrative Agent; and (ii) the determination of the Applicable Margin for any period shall be subject to the provisions of <u>Section</u> <u>2.7(e</u>). The Applicable Margin with respect to any Incremental Term Loan shall be as provided in the Incremental Facility Agreement establishing such Incremental Term Loan.

"*<u>Approved Fund</u>*" shall mean any Fund that is administered or managed by: (a) a Lender; (b) an Affiliate of a Lender; or (c) an entity, or an Affiliate of an entity, that administers or manages a Lender.

"*<u>Arrangers</u>*" shall mean each of Regions Capital Markets, a division of Regions Bank, TCBI Securities, Inc., Synovus Bank, and KeyBank National Association, each in their respective capacities as joint lead arranger and joint bookrunner under this Agreement.

"*<u>Asset Sale</u>*" shall mean a sale, lease, Sale and Leaseback Transaction, assignment, conveyance, exclusive license (as licensor), Securitization Transaction, transfer or other disposition to, or any exchange of Property with, any Person, in one transaction or a series of transactions, of any Credit Party, any Subsidiary or any other Regulated Entity or of all, or any part, of any of their respective businesses or Properties of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, created, leased or licensed, including the Equity Interests in any Subsidiary, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) dispositions of surplus, obsolete or worn-out Property, or Property no longer used or useful in the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity, whether now owned or hereafter acquired, in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) dispositions of inventory sold, and Intellectual Property licensed, in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) dispositions of accounts or payment intangibles (each as defined in the UCC) resulting from the compromise or settlement thereof in the ordinary course of business for *less than* the full amount thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) dispositions of cash and Cash Equivalents in the ordinary course of business;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) licenses, sublicenses, leases or subleases granted to any third parties in arm's-length commercial transactions in the ordinary course of business that do *not* interfere, in any material respect, with the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) dispositions of Property held by Regulated Entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the termination or surrender of any real property lease of any Credit Party, any Subsidiary or any other Regulated Entity in the ordinary course of business, so long as the loss of such leased location could *not* be reasonably expected to have an adverse and material effect on any of the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the abandonment or other disposition of Intellectual Property, whether now or hereafter owned or leased or acquired in connection with an Acquisition or other permitted Investment, that is, in the reasonable business judgment of the Borrower, no longer economically practicable or commercially desirable to maintain or used or useful in the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any issuance of Equity Interests in the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) to the extent constituting a sale, transfer, lease, or other disposition of an asset, any Restricted Payment made pursuant to <u>Section</u> <u>8.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) sales, transfers, or other dispositions of Investments to the extent permitted under <u>Section</u> <u>8.6</u> in joint ventures to the extent required by, or made pursuant to customary buy/sell arrangements between, the parties set forth in joint venture arrangements and similar binding agreements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) dispositions of Property to the extent that: (i) such Property is exchanged for credit against the purchase price of substantially similar replacement Property; or (ii) the proceeds of such disposition are promptly applied to the purchase price of substantially similar replacement Property.

"*<u>Assignment Agreement</u>*" shall mean an assignment agreement entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by <u>Section</u> <u>11.5(b)(iii</u>)) and accepted by the Administrative Agent, in substantially the form of <u>Exhibit 11.5</u> or any other form (including electronic documentation generated by MarkitClear or other electronic platform) approved by the Administrative Agent.

"*<u>Attributable Principal Amount</u>*" shall mean, in the case of: (a) Capital Leases, the amount of Capital Lease obligations determined in accordance with GAAP; (b) Synthetic Leases, an amount determined by capitalization of the remaining lease payments thereunder as if it were a Capital Lease determined in accordance with GAAP; (c) Securitization Transactions, the outstanding principal amount of such financing, after taking into account reserve amounts and making appropriate adjustments, determined by the Administrative Agent in its reasonable judgment; and (d) Sale and Leaseback Transactions, the present value (discounted in accordance with GAAP at the debt rate implied in the applicable lease) of the obligations of the lessee for rental payments during the term of such lease.

"*<u>Authorized Officer</u>*" shall mean, as applied to any Person, any individual holding the position of chairman of the board (if an officer), chief executive officer, president or one (1) of its vice presidents (or the equivalent thereof), chief financial officer or treasurer and, *solely* for purposes of making the certifications required under <u>Section</u> <u>5.1(b)(ii</u>) and <u>Section</u> <u>5.1(c</u>), any secretary or assistant secretary.

"*<u>Auto Borrow Agreement</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.2(b)(vi</u>).

------

"*<u>Automatic Acceleration Event of Default</u>* shall mean an Event of Default pursuant to <u>Section</u> <u>9.1(f</u>) or <u>Section</u> <u>9.1(g</u>).

"*<u>Available Tenor</u>*" shall mean, as of any date of determination and with respect to the then-current Benchmark, as applicable, any tenor for such Benchmark or any payment period for interest calculated with reference to such Benchmark, as applicable, that is, or may be, used for determining the length of any interest period (including any Interest Period) pursuant to this Agreement as of such date of determination.

"*<u>Bail</u>*<u>-</u>*<u>In Action</u>*" shall mean the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"*<u>Bail</u>*<u>-</u>*<u>In Legislation</u>*" shall mean: (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing Law for such EEA Member Country from time to time which is described in the applicable EU Bail-In Legislation Schedule; and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act of 2009 (as amended from time to time), and any other Law applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions, or any affiliates of any of the foregoing (other than through liquidation, administration, or other insolvency proceedings).

"*<u>Bankruptcy Code</u>*" shall mean Title 11 of the United States Code entitled "*Bankruptcy*," as now and hereafter in effect, or any successor statute.

"*<u>Base Rate</u>*" shall mean, for any date of determination, a rate per annum equal to the *highest* of (a) the rate of interest that Regions announces from time to time as its prime lending rate, as in effect from time to time (the "*<u>Prime Rate</u>*"), (b) the Federal Funds Rate, as in effect from time to time, *plus* one-half of one percent (0.50%) per annum, (c) Term SOFR in effect on such day for a forward-looking Interest Period of one (1) month commencing on such day, *plus* one percent (1.00%) per annum (with any change(s) in any of the rates described in the foregoing <u>clauses (a</u>) through (<u>c</u>) to be effective as of the date of any such change(s) in such rates), and (d) the Floor. The Prime Rate is a reference rate and does *not* necessarily represent the lowest or best rate actually charged to any customer. The Administrative Agent and the Lenders may make commercial loans, or other loans, at rates of interest at, above, or below the Prime Rate. Any change(s) to the Base Rate due to a change in the Prime Rate, the Federal Funds Rate and/or Term SOFR, as the case may be, will be deemed to be effective from, and including, the date of effectiveness of such change(s) to the Prime Rate, the Federal Funds Rate and/or Term SOFR. For the avoidance of doubt and notwithstanding anything to the contrary in the foregoing, if, at any time, the Base Rate is *less than* the Floor, then the Base Rate shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents.

"*<u>Base Rate Borrowing</u>*" shall mean a Borrowing, the Loans in respect of which bear interest at a rate determined by reference to the Base Rate (including, for the avoidance of doubt, pursuant to clause (c) of the definition of "*Base Rate*" above).

"*<u>Base Rate Loan</u>*" shall mean a Loan bearing interest at a rate determined by reference to the Base Rate (including, for the avoidance of doubt, pursuant to clause (c) of the definition of "*Base Rate*" above).

"*<u>Benchmark</u>*" shall mean, as of the Closing Date, the SOFR Reference Rate for any applicable tenor; <u>provided</u>, <u>that</u>, if any Benchmark Replacement has been incorporated into this Agreement after the Closing Date pursuant to <u>Section</u> <u>3.1</u>, then "*Benchmark*" shall mean the applicable Benchmark Replacement.

------

"*<u>Benchmark Illegality</u>* <u>/</u> *<u>Impracticability Event</u>*" shall mean the occurrence of one (1) or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the making, maintaining and/or continuation of the then-current Benchmark by any Lender shall have become unlawful as a result of compliance by such Lender in good faith with any law, treaty, governmental rule, regulation, guideline or order (or would conflict with any such treaty, governmental rule, regulation, guideline or order *not* having the force of law, even though the failure to comply therewith would *not* be unlawful);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any Benchmark, any successor administrator of the published screen rate for such Benchmark, or any Governmental Authority having jurisdiction over the Administrative Agent or the administrator of such Benchmark, shall have made a public statement establishing a specific date (whether expressly or by virtue of such public statement) after which an Available Tenor of such Benchmark, or the published screen rate for such Benchmark, shall or will no longer be representative or made available, or otherwise used for determining the interest rate of loans, or shall or will otherwise cease; <u>provided</u>, <u>that</u>, at the time of such statement, there is no successor administrator that is satisfactory to the Administrative Agent that will continue to provide such representative interest periods of such Benchmark after such specific date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the making, maintaining and/or continuation of the then-current Benchmark by any Lender has become impracticable, as a result of contingencies occurring after the Closing Date that materially and adversely affect the ability of a Lender to make, maintain and/or continue its Loans at the then-current Benchmark (including, without limitation, because the published screen rate for such Benchmark in a relevant tenor is *not* available or published on a current basis and such circumstances are unlikely to be temporary); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) with respect to any Lender, the then-current Benchmark (including any related mathematical or other adjustments thereto) does or will *not* adequately and fairly reflect the cost to such Lender of making, funding and/or maintaining its Loans at the then-current Benchmark.

For the avoidance of doubt, a "*Benchmark Illegality* / *Impracticability Event*" shall be deemed to have occurred, with respect to any Benchmark, if a public statement or publication of information as described above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"*<u>Benchmark Replacement</u>*" shall mean Daily Simple SOFR for any payment period for interest calculated that can be determined by the Administrative Agent, without any amendment to, or further action or consent of any other party to, this Agreement or any other Credit Document.

"*<u>Benchmark Replacement Adjustment</u>*" shall mean, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or equal to zero), that has been selected by the Administrative Agent and the Borrower, giving due consideration to: (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body; or (b) any evolving, or then-prevailing, market convention for determining a spread adjustment, or a method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

------

"*<u>Benchmark Replacement Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.1(g)(i</u>).

"*<u>Beneficial Ownership Certification</u>*" shall have the meaning specified for such term in <u>Section</u><u>5.1(k</u>).

"*<u>Benefit Plan</u>*" shall mean any of: (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA; (b) a "plan" as defined in, and subject to, Section 4975 of the Internal Revenue Code; or (c) any Person whose assets include (for purposes of ERISA Section 3(42), or otherwise for purposes of Title I of ERISA or Section 4975 of the Internal Revenue Code) the assets of any such "employee benefit plan" or "plan".

"*<u>BHC Act Affiliate</u>*" of a party shall mean an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. § 1841(k)) of such party.

"*<u>Borrower</u>*" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"*<u>Borrowing</u>*" shall mean, as the context may require, a borrowing consisting of: (a) Loans of the same Class and Type, made, converted or continued on the same date, and, in the case of SOFR Loans, as to which a single Interest Period is in effect; or (b) a Swingline Loan.

"*<u>Business Day</u>*" shall mean any day, other than a Saturday, a Sunday, or any other day that is a legal holiday under the laws of the state of New York or is a day on which banking institutions located in such state are authorized, or are required by Applicable Law or any Governmental Act, to close; <u>provided</u>, <u>that</u>, with respect to notices and determinations in connection with, and payments of principal and/or interest on, SOFR Loans, such day is also a U.S. Government Securities Business Day.

"*<u>Capital Expenditures</u>*" shall mean, with respect to any Person for any period of measurement, the *sum of* (without duplication) (a) the additions to property, plant and equipment and other capital expenditures of such Person that are (or would be required to be) set forth on a consolidated statement of cash flows of such Person for such period, prepared in accordance with GAAP, *plus* (b) the Attributable Principal Amount of Capital Leases incurred by such Person during such period, but *excluding* any such expenditures to the extent that such expenditures are: (i) made with the Net Cash Proceeds of any Asset Sale or Involuntary Disposition to the extent that such expenditures are used to purchase Property that is the same as, or substantially functionally equivalent to, the Property subject to such Asset Sale or Involuntary Disposition (and including, for purposes of clarity, the purchase price of replacement Property that is purchased, to the extent that the gross amount of such purchase price is reduced by the credit granted by the seller of such replacement Property for such existing Property being traded in at such time); or (ii) part of the aggregate amounts payable in connection with, or constitute other consideration for, any Permitted Acquisition or other Investment permitted under this Agreement (whether consummated during, or prior to, such period of measurement).

"*<u>Capital Lease</u>*" shall mean, as applied to any Person, any lease of any Property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person.

------

"*<u>Captive Reinsurance Companies</u>*" shall mean, collectively: (a) each of (i) Bobcat Re Ltd., (ii) Canal Re Ltd., (iii) Pompano Re Ltd., and (iv) Tarpon Ltd.; and (b) any controlled Affiliate of any Credit Party that is primarily engaged in the provision of reinsurance services to other Credit Parties, Subsidiaries and/or Regulated Entities.

"*<u>Cash Collateralize</u>*" shall mean to pledge and deposit with, or deliver to, the Administrative Agent, the Collateral Agent, the Issuing Bank or the Swingline Lender, as applicable, as collateral for the Letter of Credit Obligations or Swingline Loans, as applicable, or obligations of Lenders to fund participations in respect thereof, cash or deposit account balances or, if the Administrative Agent, the Collateral Agent, the Issuing Bank or Swingline Lender, as applicable, may agree in their sole discretion, other credit support, in each case, pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent, the Collateral Agent, the Issuing Bank and/or the Swingline Lender, as applicable. "*Cash Collateral*" shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.

"*<u>Cash Equivalents</u>*" shall mean, as of any date of determination, any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) marketable securities (i) issued or directly and unconditionally guaranteed as to interest and principal by the United States government, or (ii) issued by any agency of the United States the obligations of which are backed by the full faith and credit of the United States, in each case of the foregoing <u>clauses (a)(i</u>) and (<u>a)(ii</u>), maturing within one (1) year after such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) marketable direct obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof, in each case, maturing within one (1) year after such date and having, at the time of the acquisition thereof, a rating of *at least* A–1 from S&P or *at least* P–1 from Moody's;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) commercial paper maturing *no more than* one (1) year from the date of creation thereof and having, at the time of the acquisition thereof, a rating of *at least* A–1 from S&P or *at least* P–1 from Moody's;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) certificates of deposit or bankers' acceptances maturing within one (1) year after such date and issued or accepted by any Lender or by any commercial bank organized under the laws of the United States, or of any state thereof or the District of Columbia, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is *at least* "adequately capitalized" (as defined in the regulations of its primary federal banking regulator); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has Tier 1 capital (as defined in such regulations) of *not less than* One-Hundred Million Dollars ($100,000,000); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) shares of any money market mutual fund that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) has substantially all of its assets invested continuously in the types of investments referred to in <u>clauses (a</u>) and (<u>b</u>) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has net assets of *not less than* Five-Hundred Million Dollars ($500,000,000); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) has the highest rating obtainable from either S&P or Moody's.

------

"*<u>CFC</u>*" shall mean a "controlled foreign corporation" within the meaning of Section 957 of the Code.

"*<u>Change in Control</u>*" shall mean the occurrence of one (1) or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Permitted Holders, taken together, shall cease to own and control, beneficially and of record, directly or indirectly, *at least* forty-four percent (44.0%) of the outstanding Voting Stock in the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) David Flitman, an individual resident of the state of Florida, shall cease to be the duly appointed, acting chief executive officer of the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the acquisition of ownership, directly or indirectly, beneficially or of record, by any "person" or "group" (within the meaning of the Exchange Act, as in effect on the Closing Date), other than the Permitted Holders, of thirty percent (30.0%) or more of the outstanding Voting Stock in the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) except pursuant to a transaction that is expressly permitted under this Agreement and the other Credit Documents, the Borrower shall cease to possess the right to elect (through contract, ownership of Voting Stock, or otherwise), at all times, a majority of the board of directors or managers (or equivalent governing body) of each of its Subsidiaries and/or to direct the management policies and decisions of each such Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) except pursuant to a transaction that is expressly permitted under this Agreement and the other Credit Documents, any Person that, on the Closing Date or at any time thereafter, is: (i) a Captive Reinsurance Company shall cease to be a Captive Reinsurance Company pursuant to clause (b) of the definition of "*Captive Reinsurance Company*" above; or (ii) a Qualifying Reciprocal Entity shall thereafter cease to be a Qualifying Reciprocal Entity pursuant to clause (b) of the definition of "*Qualifying Reciprocal Entity*" below; or (iii) a Regulated Subsidiary (other than a Captive Reinsurance Company) shall cease to be a Regulated Subsidiary (other than a Captive Reinsurance Company) pursuant to clause (b) of the definition of "*Regulated Subsidiary*" below.

"*<u>Change in Law</u>*" shall mean the occurrence, after the Closing Date, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty, or in the administration, interpretation, implementation or application thereof, by any Governmental Authority, or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; <u>provided</u>, <u>that</u>, notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith, (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, and (iii) all requests, rules, guidelines or directives issued by a Governmental Authority in connection with a Lender's submission or re-submission of a capital plan under 12 C.F.R. § 225.8 or a Governmental Authority's assessment thereof shall, in each case, be deemed to be a "*Change in Law*", regardless of the date enacted, adopted or issued.

"*<u>Class</u>*", when used in reference to any Loan or Borrowing, shall refer to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Swingline Loans, the Term Loan A, the Delayed Draw Term Loan, or a specified Incremental Term Loan, and, when used in reference to any Commitment, refers to whether such Commitment is a Revolving Commitment, a Swingline Commitment, a Term Loan A Commitment, a DDTL Commitment, or an Incremental Term Loan Commitment in respect of a specified Incremental Term Loan.

------

"*<u>Closing Date</u>*" shall have the meaning provided for such term in the introductory paragraph to this Agreement.

"*<u>Closing Date Distribution</u>*" shall mean a one-time tax distribution of proceeds of the Borrowing of the Term Loan A on the Closing Date, in an amount of up to Thirty-One Million Eight-Hundred Ninety-Four Thousand Nine-Hundred Dollars ($31,894,900), by the Borrower to the owners of its outstanding Equity Interests in accordance with the terms of this Agreement.

"*<u>Collateral</u>*" shall mean the collateral identified in, and at any time covered by, the Collateral Documents.

"*<u>Collateral Agent</u>*" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"*<u>Collateral Documents</u>*" shall mean, collectively, the Security Agreement, the Mortgages, and all other instruments, documents and/or agreements delivered by any Credit Party pursuant to this Agreement or any of the other Credit Documents in order to grant to the Collateral Agent, for the benefit of the holders of the Obligations, a Lien on any real, personal or mixed Property of any Credit Party as security for the Obligations.

"*<u>Combined Statutory Surplus</u>*" shall mean, as of any date of determination, the aggregate Statutory Surplus of all of the Regulated Entities that are *not* Captive Reinsurance Companies, taken together on a combined basis.

"*<u>Commitment Fee</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.10(a</u>).

"*<u>Commitment Percentage</u>*" shall mean, for each Lender and with respect to: (a) any Revolving Loans (or any Borrowing thereof) or any Swingline Loans (or any Borrowing thereof), such Lender's Revolving Commitment Percentage; (b) the Term Loan A (or any Borrowing thereof), such Lender's Term Loan A Commitment Percentage; (c) the Delayed Draw Term Loan (or any Borrowing of an advance thereunder), such Lender's DDTL Commitment Percentage; and (d) any Incremental Term Loan (or any Borrowing thereof or thereunder), such Lender's Incremental Term Loan Commitment Percentage in respect of such Incremental Term Loan.

"*<u>Commitments</u>*" shall mean, collectively, the Revolving Commitments, the Term Loan A Commitments, the DDTL Commitments, and any Incremental Term Loan Commitments.

"*<u>Commodity Exchange Act</u>*" shall mean the Commodity Exchange Act (7 U.S.C. § 1 *et seq*.), as amended.

"*<u>Competitor</u>*" shall mean any competitor of any Credit Party, Subsidiary or other Regulated Entity that is in the same or a similar line of business as any Credit Party, Subsidiary or other Regulated Entity.

"*<u>Compliance Certificate</u>*" shall mean a Compliance Certificate substantially in the form of <u>Exhibit 7.1(c</u>).

------

"*<u>Conforming Changes</u>*" shall mean, with respect to (a) the use and/or administration of, and/or any conventions associated with, SOFR, the SOFR Reference Rate for any applicable tenor and/or any SOFR-Based Rate (for any Interest Period, as applicable), or (b) the use, administration, adoption and/or implementation of, and/or any conventions associated with, any Benchmark Replacement, in each case of the foregoing <u>clauses (a</u>) and (<u>b</u>), any technical, administrative and/or operational change(s) (including, without limitation, any such change(s) to the definition of "*Base Rate*" above, the definition of "*Business Day*" above, the definition of "*Daily Simple SOFR*" below, the definition of "*Interest Period*" below (or any similar or analogous definition, or the addition of an applicable concept of "interest period"), the definition of "*SOFR*" below, the definition of "*SOFR Reference Rate*" below, the definition of "*Term SOFR*" below, the definition of "*U*.*S*. *Government Securities Business Day*" below, the timing and frequency of determining rates and making payments of interest, the timing of delivery of any Funding Notices (or other requests for borrowing of Loans), the timing of delivery of any notices of optional reduction or termination of any Commitment(s), the timing of delivery of any notices of optional or voluntary prepayment of any Loans (or any other notices of prepayment of any Loans), the timing of delivery of any Conversion / Continuation Notices (or other notices of the continuation or conversion of Loans), the applicability and length of lookback periods, the applicability of <u>Section</u> <u>3.1(c</u>), and any other technical, administrative and/or operational matters) that the Administrative Agent determines, in its reasonable discretion, may be appropriate to reflect the adoption and/or implementation of any such rate and/or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent determines, in its reasonable discretion, that (i) the adoption and/or implementation of, or of any portion of, such market practice is *not* administratively feasible for the Administrative Agent, or (ii) no market practice for the administration of any such rate exists, then, in each case of the foregoing <u>clauses (i</u>) and (<u>ii</u>), permit the use and administration thereof by the Administrative Agent in such other manner of administration as the Administrative Agent determines is reasonably necessary in connection with the administration of this Agreement and the other Credit Documents).

"*<u>Connection Income Taxes</u>*" shall mean Other Connection Taxes that are imposed on, or measured by, net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"*<u>Consolidated EBITDA</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, an amount equal to the *sum of*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Consolidated Net Income (*exclusive*, for purposes of clarity, of Regulated Entities) for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the following, in each case, *solely* to the extent deducted in calculating such Consolidated Net Income (and without duplication):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Consolidated Interest Charges for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the provision for federal, state, local and foreign income taxes payable by the Credit Parties and Subsidiaries (other than Regulated Entities) for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) depreciation and amortization expense for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) non-cash stock compensation issued for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all out-of-pocket fees, costs and expenses payable, or otherwise incurred, in connection with the closing of this Agreement and the other Credit Documents; <u>provided</u>, <u>that</u>,such fees, costs and expenses are payable or otherwise incurred *prior* to the date that is three (3) months after the Closing Date; *plus*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the aggregate amount of managing general agency, service company or attorney-in-fact fees that are due and owing, or that have already been paid, by any Regulated Entity, on the one hand, to any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the other hand, pursuant to any managing general agent, service company or attorney-in-fact agreement entered into between any Credit Party or Subsidiary (other than any Regulated Subsidiary) and any Regulated Entity, but which have been waived in accordance with this Agreement by the Credit Party or Subsidiary (other than a Regulated Subsidiary) to whom such fees would have been, or, in the case of any such fees that have already been paid and are subsequently so waived, have been, paid, in each case of the foregoing of this <u>clause (b)(vi</u>), to the extent supported (so long as any such documentation is readily available to, or preparable by, the Credit Parties, Subsidiaries and other Regulated Entities) by documentation provided, and reasonably acceptable, to the Administrative Agent; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) other non-cash charges and non-cash expenses reducing such Consolidated Net Income, including any write-offs or write-downs (but *excluding* any such non-cash charge or non-cash expense to the extent that such non-cash charge or non-cash expense (A) represents an accrual of, or reserve for, cash charges or cash expenses in any future period, or amortization of a prepaid cash expense or cash charge that was paid in a prior period but *not* included in the calculation of Consolidated EBITDA for such prior period, or (B) is an expense or charge related to accounts receivable or other current assets); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all non-cash items increasing such Consolidated Net Income (but *excluding* any items that represent the reversal of an accrual of, or reserve for, anticipated cash charges or cash expenses that reduced Consolidated EBITDA in any prior period).

"*<u>Consolidated Fixed Charge Coverage Ratio</u>*" shall mean, as of any date of determination, the ratio of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Consolidated EBITDA; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Consolidated Unfinanced Capital Expenditures; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Consolidated Taxes; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate amount of Restricted Payments paid in cash by the Credit Parties and Subsidiaries (other than Regulated Entities) to Persons other than Credit Parties (but *excluding* the Closing Date Distribution); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the aggregate amount, determined on a cost basis, of Investments (including, without limitation, Investments consisting of the forgiveness of fees as described in the last sentence of the definition of "*Investments*" below) made by any Credit Party in any Person that is *not* itself a Credit Party (including, for purposes of clarity, in any Regulated Entity), but *excluding* any such Investments to the extent financed with the proceeds of Loans (including Revolving Loans) or other long-term, non-revolving Indebtedness, net of the amount (if any) of Returned Reinsurance Investments received by the Credit Parties;

all as determined in accordance with GAAP or SAP (as applicable); to

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Consolidated Fixed Charges,

in each case of the foregoing, measured on a consolidated basis for the Credit Parties and Subsidiaries (other than Regulated Entities) for the Trailing Period most recently ended as of such date; <u>provided</u>, <u>that</u>, notwithstanding anything to the contrary in the foregoing or elsewhere in this Agreement or any other Credit Document, the calculation of Consolidated Fixed Charges, for purposes of the calculation of the Consolidated Fixed Charge Coverage Ratio measured for the Trailing Period ending:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) March 31, 2025, shall be deemed to equal the *product of*: (A) actual Consolidated Fixed Charges paid in cash, measured for the period of one (1) Fiscal Quarter then ended; *multiplied by* (B) four (4);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) June 30, 2025, shall be deemed to equal the *product of*: (A) actual Consolidated Fixed Charges paid in cash, measured for the period consisting of the two (2) consecutive full Fiscal Quarters then ended; *multiplied by* (B) two (2); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) September 30, 2025, shall be deemed to equal the *product of*: (A) actual Consolidated Fixed Charges paid in cash, measured for the period consisting of the three (3) consecutive full Fiscal Quarters then ended; *multiplied by* (B) four thirds (4/3).

"*<u>Consolidated Fixed Charges</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, an amount equal to the *sum of*: (a) Consolidated Interest Charges for such period; *plus* (b) Consolidated Scheduled Funded Debt Payments for such period.

"*<u>Consolidated Funded Debt</u>*" shall mean all Funded Debt of the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis determined in accordance with GAAP; <u>provided</u>, <u>that</u>, for the avoidance of doubt, "*Consolidated Funded Debt*" shall include any intercompany Indebtedness owing by any Credit Party or Subsidiary (other than a Regulated Entity) to any Regulated Entity.

"*<u>Consolidated Interest Charges</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, an amount equal to the *sum of*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all interest, premium payments, debt discount, fees, charges, and related expenses in connection with Funded Debt of a type described in clauses (a) or (b) of the definition of "*Funded Debt*" below (other than, for purposes of clarity, payments in respect of Earn Out Obligations), in each case, to the extent treated as interest in accordance with GAAP; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the portion of rent expense with respect to such period under Capital Leases that is treated as interest in accordance with GAAP; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the implied interest component of Synthetic Leases with respect to such period;

<u>provided</u>, <u>that</u>, for the avoidance of doubt, "*Consolidated Interest Charges*" shall include all interest, premium, payments, debt discount, fees, charges and related expenses in connection with any intercompany Indebtedness owing by any Credit Party or Subsidiary (other than a Regulated Entity) to any Regulated Entity.

------

"*<u>Consolidated Leverage Ratio</u>*" shall mean, as of any date of determination, the ratio of: (a) Consolidated Funded Debt as of such date; to (b) Consolidated EBITDA, measured for the most recently ended Trailing Period.

"*<u>Consolidated Net Income</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (including or excluding Regulated Entities, as so specified textually in the relevant instance of calculation) on a consolidated basis, the net income of the Credit Parties and Subsidiaries (but *excluding*, in any event, extraordinary gains) for such period, as determined in accordance with GAAP; <u>provided</u>, <u>that</u>, for purposes of any determination of Consolidated Net Income that is exclusive of Regulated Entities, any dividends or other distributions paid by a Regulated Entity to another Credit Party or Subsidiary during the relevant period of measurement shall be disregarded and shall *not*, in any event, be considered net income of any Credit Party or Subsidiary (other than such Regulated Entity) for such period.

"*<u>Consolidated Scheduled Funded Debt Payments</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis, the *sum of* all scheduled payments of principal on Consolidated Funded Debt, as determined in accordance with GAAP. For purposes of this definition, "*<u>scheduled payments of principal</u>*" shall: (a) be determined without giving effect to any reduction of such scheduled payments resulting from the application of any voluntary or mandatory prepayments made during the applicable period; (b) be deemed to include payments with respect to the Attributable Principal Amount in respect of Capital Leases, Securitization Transactions, Sale and Leaseback Transactions and Synthetic Leases; and (c) *not* include any voluntary prepayments or mandatory prepayments required pursuant to <u>Section</u> <u>2.11</u>.

"*<u>Consolidated Taxes</u>*" shall mean, for any period of measurement, the aggregate amount of all Taxes paid in cash, as determined in accordance with GAAP, by the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis; <u>provided</u>, <u>that</u>, "*Consolidated Taxes*" shall include all Taxes paid in cash by the Credit Parties and Subsidiaries (other than Regulated Entities) on account of, on behalf of, or attributable to, any Regulated Entity to the extent that such Regulated Entity has *not* made Restricted Payments to the party paying such Taxes pursuant to <u>Section</u> <u>8.4(a</u>) within two (2) months of such tax liabilities becoming due and payable, or actually being paid in cash, by the paying party.

"*<u>Consolidated Unfinanced Capital Expenditures</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, the aggregate amount actually paid in cash by the Credit Parties and Subsidiaries (other than Regulated Entities) on account of Capital Expenditures, but *excluding* Capital Expenditures to the extent financed with the proceeds of Loans (including Revolving Loans) or other long-term, non-revolving Indebtedness.

"*<u>Contractual Obligation</u>*" shall mean, as applied to any Person, any provision of any Security issued by that Person or of any indenture, mortgage, deed of trust, contract, undertaking, agreement or other instrument to which that Person is a party or by which it, or any of its Properties, is bound, or to which it, or any of its Properties, is otherwise subject.

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

"*<u>Controlled Account Agreement</u>*" shall mean any tri-party agreement by and among a Credit Party, the Collateral Agent, and a depositary bank or securities or commodities intermediary (as applicable) at which such Credit Party maintains one (1) or more deposit, disbursement, lockbox, securities and/or commodities accounts granting "control" (as defined in the UCC) to the Collateral Agent with respect to such account(s), in each case, in form and substance reasonably satisfactory to the Collateral Agent.

------

"*<u>Conversion</u>* <u>/</u> *<u>Continuation Date</u>*" shall mean the effective date of a continuation or conversion, as the case may be, as set forth in the applicable Conversion / Continuation Notice.

"*<u>Conversion</u>* <u>/</u> *<u>Continuation Notice</u>*" shall mean a Conversion / Continuation Notice substantially in the form of <u>Exhibit 2.8</u>.

"*<u>Covered Entity</u>*" shall mean any of the following: (a) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §–252.82(b); (b) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §–47.3(b); and (c) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §–382.2(b).

"*<u>Covered Party</u>*" shall mean have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

"*<u>Credit Date</u>*" shall mean, with respect to any Credit Extension, the date on which such Credit Extension is made.

"*<u>Credit Document</u>*" shall mean any of this Agreement, each Note, each Issuer Document, the Collateral Documents, any Guarantor Joinder Agreement, the Fee Letter, any Auto Borrow Agreement, any Incremental Facility Agreement, any documents or certificates executed by any Credit Party in favor of the Issuing Bank relating to Letters of Credit, and, to the extent evidencing or securing the Obligations, all other documents, instruments or agreements executed and delivered by any Credit Party for the benefit of the Administrative Agent, the Collateral Agent, the Issuing Bank or any Lender in connection herewith or therewith, and including, for the avoidance of doubt, any Guarantor Joinder Agreement (but specifically *excluding* any Secured Swap Agreements and any Secured Treasury Management Agreements).

"*<u>Credit Extension</u>*" shall mean the making of a Loan or the issuing or extending of a Letter of Credit.

"*<u>Credit Parties</u>*" shall mean, collectively, the Borrower and each Guarantor.

"*<u>Cure Period</u>*" shall have the meaning specified for such term in <u>Section</u> <u>9.4(a</u>).

"*<u>Cure Proceeds</u>*" shall have the meaning specified for such term in <u>Section</u> <u>9.4(a</u>).

"*<u>Daily Simple SOFR</u>*" shall mean, for any date of determination, SOFR, with the conventions for such rate (which shall include a lookback) being established by the Administrative Agent in accordance with the conventions for such rate selected or recommended by the Relevant Governmental Body for determining "*Daily Simple SOFR*" for business loans; <u>provided</u>, <u>that</u>, (a) if the Administrative Agent decides that any such convention is *not* administratively feasible for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion, and (b) if, at any time, Daily Simple SOFR (determined in accordance with such convention(s)) is *less than* the Floor, then Daily Simple SOFR shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents.

"*<u>DDTL Amortization Payment Amount</u>*" shall mean, at any time with respect to each advance under the Delayed Draw Term Loan during the DDTL Availability Period (to the extent made), an amount equal to the *quotient* of: (a) the *product of* (i) the aggregate original principal amount of such advance under the Delayed Draw Term Loan, *multiplied by* (ii) ten percent (10.0%); *divided by* (b) four (4).

------

"*<u>DDTL Availability Period</u>*" shall mean the period from, but *excluding*, the Closing Date to, but *excluding*, the DDTL Commitment Termination Date.

"*<u>DDTL Commitment</u>*" shall mean, with respect to each Lender, the obligation of such Lender to advance its respective portion of principal under the Delayed Draw Term Loan, in up to five (5) separate advances during the DDTL Availability Period, in each case pursuant to <u>Section</u> <u>2.1(c</u>), in an aggregate original principal amount advanced by such Lender during the DDTL Availability Period (for all such advances, taken together) *not to exceed* the applicable amount set forth with respect to such Lender as such Lender's "*DDTL Commitment*" on <u>Appendix A</u>, subject to any increase(s), adjustment(s) and/or reduction(s) pursuant to the terms and conditions of this Agreement.

"*<u>DDTL Commitment Percentage</u>*" shall mean, with respect to each Lender at any time, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the *sum of* (i) the amount of such Lender's respective DDTL Commitment (if any) in effect at such time, *plus* (ii) the aggregate principal balance of the portion of the Delayed Draw Term Loan advanced by such Lender that is outstanding at such time; and (b) the *denominator* of which is the *sum of* (i) the Aggregate DDTL Commitment Amount in effect at such time, *plus* (ii) the aggregate outstanding principal balance of the Delayed Draw Term Loan at such time. The DDTL Commitment Percentages of each Lender as of the Second Amendment Effective Date are set forth on <u>Appendix A</u>.

"*<u>DDTL Commitment Termination Date</u>*" shall mean the *earliest* to occur of: (a) the first (1<sup>st</sup>) Business Day after the date that is the second (2<sup>nd</sup>) anniversary of the Closing Date; (b) the date on which five (5) separate advances under the Delayed Draw Term Loan shall have been made in accordance with this Agreement; (c) the date on which the Borrower shall have provided written notice to the Administrative Agent of its election to terminate the Aggregate DDTL Commitments in accordance with <u>Section</u> <u>2.11(b</u>); and (d) the date on which the Aggregate DDTL Commitments shall have been terminated, and/or all amounts outstanding under this Agreement shall have been declared, or automatically have become, due and payable, in each case of the foregoing of this <u>clause (d</u>), pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise).

"*<u>Debt Transaction</u>*" shall mean, with respect to any Credit Party, any Subsidiary or any other Regulated Entity, any sale, issuance, placement, assumption or guaranty of Funded Debt, whether or not evidenced by a promissory note or other written evidence of Indebtedness, except for Funded Debt permitted to be incurred and remain outstanding after the Closing Date pursuant to <u>Section</u> <u>8.1</u>.

"*<u>Debtor Relief Laws</u>*" shall mean the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect.

"*<u>Default</u>*" shall mean a condition or event that, after notice or lapse of time or both, would constitute an Event of Default.

"*<u>Default Rate</u>*" shall mean an interest rate equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to Obligations (including, for purposes of clarity, Loans bearing interest at the Base Rate determined pursuant to clause (c) of the definition of "*Base Rate*" above) other than SOFR Loans and the Letter of Credit Fee, the Base Rate *plus* the Applicable Margin, if any, applicable to such Obligations *plus* two percent (2.0%) per annum;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to SOFR Loans, Term SOFR *plus* the Applicable Margin, if any, applicable to SOFR Loans *plus* two percent (2.0%) per annum; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to the Letter of Credit Fee, the Applicable Margin for the Letter of Credit Fee *plus* two percent (2.0%) per annum.

"*<u>Default Right</u>*" shall have the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§–252.81, 47.2 or 382.1, as applicable.

"*<u>Defaulting Lender</u>*" shall mean, subject to <u>Section</u> <u>2.16(b</u>), any Lender that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has failed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fund all, or any portion, of its Loans within two (2) Business Days of the date such Loans were required to be funded hereunder, unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender's determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has *not* been satisfied; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) pay to the Administrative Agent, the Collateral Agent, the Issuing Bank, the Swingline Lender, or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in any Letters of Credit or Swingline Loans) within two (2) Business Days of the date when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has notified the Borrower, the Administrative Agent, the Issuing Bank, or the Swingline Lender in writing that it does *not* intend to comply with its funding obligations hereunder, or has made a public statement to that effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) has failed, within three (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (<u>provided</u>, <u>that</u>, such Lender shall cease to be a Defaulting Lender pursuant to this <u>clause (c</u>) upon receipt of such written confirmation by the Administrative Agent and the Borrower); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) has, or has a direct or indirect parent company that has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) become the subject of a proceeding under any Debtor Relief Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) become the subject of a Bail-In Action;

------

<u>provided</u>, <u>that</u>, a Lender shall *not* be a Defaulting Lender *solely* by virtue of the ownership or acquisition of any equity interest in that Lender, or any direct or indirect parent company thereof, by a Governmental Authority, so long as such ownership interest does *not* result in or provide such Lender with immunity from the jurisdiction of courts within the United States, or from the enforcement of judgments or writs of attachment on its assets, or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of <u>clauses (a</u>) through (<u>d</u>) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to <u>Section</u> <u>2.16(b</u>)) upon delivery of written notice of such determination to the Borrower, the Issuing Bank, the Swingline Lender and each Lender.

"*<u>Delayed Draw Term Loan</u>*" shall have the meaning provided for such term in <u>Section</u> <u>2.1(c</u>). The Delayed Draw Term Loan may also be referred to in this Agreement and the other Credit Documents as the "*<u>DDTL</u>*". As of the Second Amendment Effective Date, the aggregate outstanding principal balance under the Delayed Draw Term Loan is Twenty-Five Million Dollars ($25,000,000).

"*<u>Disqualified Equity Interests</u>*" shall mean, with respect to any Person, any Equity Interests in such Person that, by their terms (or by the terms of any security or other Equity Interests into which they are convertible, or for which they are exchangeable), or upon the happening of any event or condition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) matures (but *excluding* any maturity as a result of an optional redemption by the issuer thereof the exercise of which, by the terms of such Equity Interests, is contingent upon such redemption *not* being prohibited by this Agreement or any of the other Credit Documents) or is mandatorily redeemable (other than (i) *solely* in exchange for Equity Interests that are *not* otherwise Disqualified Equity Interests, or (ii) as a result of a redemption that, by the terms of such Equity Interests, is contingent upon such redemption *not* being prohibited by this Agreement or any of the other Credit Documents), pursuant to a sinking fund obligation or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is redeemable at the option of the holder thereof (other than (i) *solely* in exchange for Equity Interests that are *not* otherwise Disqualified Equity Interests, or (ii) as a result of a redemption that, by the terms of such Equity Interests, is contingent upon such redemption *not* being prohibited by this Agreement or any of the other Credit Documents), in whole or in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) provides for the scheduled payment of dividends in cash; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is or becomes convertible into, or exchangeable for, Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests;

in each case of the foregoing <u>clauses (a</u>) through (<u>d</u>), on or prior to the date that is one-hundred eighty one (181) calendar days after the Latest Maturity Date; <u>provided</u>, <u>that</u>, (I) to the extent that any such Equity Interests are issued pursuant to a Benefit Plan for the benefit of any Credit Party or Subsidiary to any employees of any Credit Party or Subsidiary, such Equity Interests shall *not* constitute Disqualified Equity Interests *solely* as a result of such Equity Interests being required to be repurchased by a Credit Party or Subsidiary in order to satisfy requirements under applicable Law, and (II) in the case of the foregoing <u>clauses (a</u>) and (<u>b</u>), if any Equity Interests constitute Disqualified Equity Interests as a result of the occurrence of a Change in Control, the consummation of an Asset Sale or other disposition, or the consummation of any other Specified Transaction or other transaction, then such Equity Interests shall *not* constitute Disqualified Equity Interests for purposes of this Agreement and the other Credit Documents so long as any rights of the holder(s) thereof upon the occurrence of such a Change in Control, the consummation of such an Asset Sale or other disposition, or the consummation of such other Specified Transaction(s) or other transaction(s) are, in any such case, subject to the prior occurrence of the Payment in Full of all Obligations.

------

"*<u>Disqualified Institution</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) those Competitors and other Persons identified on a list provided by the Borrower to the Administrative Agent and made available to the Lenders on the Closing Date (the "*<u>Disqualified Institution List</u>*") (as such Disqualified Institution List may be supplemented from time to time by the Borrower pursuant to <u>clause (c</u>) below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Person that is reasonably identifiable (based *solely* to the extent such legal entity has the name of a Person set forth on the Disqualified Institution List in its legal name) as an Affiliate of any Person set forth on the Disqualified Institution List; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other Competitor identified by legal name in writing to the Administrative Agent at any time after the Closing Date (other than during the continuance of an Event of Default) (it being understood and agreed that the Borrower shall be required to provide a fully updated Disqualified Institution List to the Administrative Agent in order to supplement such list after the Closing Date), which designation shall become effective one (1) day after the date that such written designation to the Administrative Agent is made available to the Lenders on IntraLinks, Syndtrak, Debtdomain or a similar electronic transmission system, but which shall *not* apply retroactively to disqualify any Persons that have previously acquired an assignment or participation interest in the Loans and/or Commitments.

Notwithstanding anything to the contrary in the foregoing, a Person that would be a Disqualified Institution as a result of being an Affiliate of a Competitor pursuant to <u>clause (b</u>) above shall *not* constitute a Disqualified Institution if such Person is a financial institution, bona fide debt fund or investment vehicle that is engaged in the business of making, purchasing, holding or otherwise investing in commercial loans, notes, bonds and similar extensions of credit or securities in the ordinary course of business to unaffiliated third parties and no Disqualified Institution makes investment decisions for such Person.

"*<u>Disqualified Institution List</u>*" shall have the meaning set forth in the definition of "*Disqualified Institution*" above.

"*<u>Dollars</u>*" and the sign "<u>$</u>" shall mean the lawful money of the United States.

"*<u>Domestic Subsidiary</u>*" shall mean any Subsidiary that is incorporated or formed (as the case may be) under the Applicable Laws of the United States or of any state, district or other political subdivision thereof, other than any such Subsidiary of the type(s) described in clauses (b) or (c) of the definition of "*Foreign Subsidiary*" below.

"*<u>Earn Out Obligations</u>*" shall mean, with respect to any Acquisition or other Investment permitted under this Agreement consisting of the purchase of Equity Interests, all obligations of any Credit Party, any Subsidiary or any other Regulated Entity to make earn out or other similar contingent payments that are payable based on the achievement of specified financial results over time (but *excluding*, for the avoidance of doubt, payments in respect of purchase price adjustments, working capital adjustments and non-competition and/or consulting agreements) pursuant to the definitive documentation relating to such Acquisition or other Investment.

------

"*<u>EEA Financial Institution</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any credit institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA Resolution Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any entity established in an EEA Member Country that is a parent of an institution described in <u>clause (a</u>) above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in <u>clauses (a</u>) or (<u>b</u>) above and is subject to consolidated supervision with its parent.

"*<u>EEA Member Country</u>*" shall mean any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"*<u>EEA Resolution Authority</u>*" shall mean any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"*<u>Eligible Assignee</u>*" shall mean any Person that meets the requirements to be an assignee under <u>Section</u> <u>11.5(b</u>), subject to any consents and representations, if any as may be required therein.

"*<u>Environmental Claim</u>*" shall mean any known investigation, written notice, notice of violation, written claim, action, suit, proceeding, written demand, abatement order or other written order or directive (conditional or otherwise), by any Person arising:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) pursuant to, or in connection with, any actual or alleged violation of any Environmental Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in connection with any actual or alleged damage, injury, threat or harm to human health, safety, natural resources or the environment.

"*<u>Environmental Laws</u>*" shall mean any and all current or future federal or state (or any subdivision of either of them), statutes, ordinances, orders, rules, regulations, judgments, Governmental Authorizations, or any other written requirements of Governmental Authorities relating to: (a) any Hazardous Materials Activity; (b) the generation, use, storage, transportation or disposal of Hazardous Materials; or (c) protection of human health and the environment from pollution, in any manner applicable to any Credit Party, any Subsidiary, any Regulated Entity, or any of the respective Facilities of any of the foregoing.

"*<u>Environmental Liability</u>*" shall mean any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of any Credit Party, any Subsidiary or any other Regulated Entity directly or indirectly resulting from or based upon: (a) violation of any Environmental Law; (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials; (c) exposure to any Hazardous Materials; (d) the Release, or threatened Release, of any Hazardous Materials into the environment; or (e) any contract, agreement or other consensual arrangement pursuant to which any Credit Party, any Subsidiary or any other Regulated Entity assumed liability with respect to any of the foregoing.

------

"*<u>Equity Interests</u>*" shall mean, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.

"*<u>Equity Transaction</u>*" shall mean, with respect to any Credit Party, any Subsidiary or any other Regulated Entity, any issuance or sale by any such Person of shares of its Equity Interests, other than an issuance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the Borrower or any of its Wholly Owned Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in connection with a conversion of debt securities to equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in connection with the exercise by a present or former employee, officer or director under a stock incentive plan, stock option plan or other equity-based compensation plan or arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) that occurred *prior* to the Closing Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in connection with the consummation of any Permitted Acquisition or the making of any Capital Expenditures permitted under this Agreement.

"*<u>ERISA</u>*" shall mean the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

"*<u>ERISA Affiliate</u>*" shall mean, as applied to any Person: (a) any corporation which is a member of a controlled group of corporations within the meaning of Section 414(b) of the Internal Revenue Code of which that Person is a member; (b) any trade or business (whether or not incorporated) which is a member of a group of trades or businesses under common control within the meaning of Section 414(c) of the Internal Revenue Code of which that Person is a member; and (c) any member of an affiliated service group within the meaning of Section 414(m) or (o) of the Internal Revenue Code of which that Person, any corporation described in <u>clause (a</u>) above or any trade or business described in <u>clause (b</u>) above is a member.

"*<u>ERISA Event</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a "reportable event" within the meaning of Section 4043 of ERISA and the regulations issued thereunder with respect to any Pension Plan (but *excluding* those for which notice to the PBGC has been waived by regulation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the failure to meet the minimum funding standard of Section 412 of the Internal Revenue Code with respect to any Pension Plan (whether or not waived in accordance with Section 412(c) of the Internal Revenue Code), the failure to make by its due date any minimum required contribution or any required installment under Section 430(j) of the Internal Revenue Code with respect to any Pension Plan or the failure to make by its due date any required contribution to a Multiemployer Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the provision by the administrator of any Pension Plan pursuant to Section 4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress termination described in Section 4041(c) of ERISA;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the withdrawal from any Pension Plan with two (2) or more contributing sponsors or the termination of any such Pension Plan, in either case resulting in material liability pursuant to Section 4063 or 4064 of ERISA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the institution by the PBGC of proceedings to terminate any Pension Plan, or the occurrence of any event or condition reasonably likely to constitute grounds under ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the imposition of liability pursuant to Section 4062(a) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA, each case reasonably likely to result in material liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the withdrawal of any Credit Party, any Subsidiary, any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, in a complete or partial withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if such withdrawal is reasonably likely to result in material liability, or the receipt by any Credit Party, any Subsidiary, any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, of notice from any Multiemployer Plan that it is in insolvency pursuant to Section 4241 or 4245 of ERISA, or that it is in "critical" or "endangered" status within the meaning of Section 305 of ERISA, or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA, if such insolvency or termination is reasonably likely to result in material liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the imposition of fines, penalties, taxes or related charges under Chapter 43 of the Internal Revenue Code, Section 502(c), (i) or (l), or Section 4071 of ERISA in respect of any Pension Plan if such fines, penalties, taxes or related charges are reasonably likely to result in material liability to the Credit Parties, the Subsidiaries, the other Regulated Entities, and/or their respective ERISA Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) receipt from the Internal Revenue Service of a final written determination of the failure of any Pension Plan intended to be qualified under Section 401(a) of the Internal Revenue Code to qualify under Section 401(a) of the Internal Revenue Code, or the failure of any trust forming part of any such plan to qualify for exemption from taxation under Section 501(a) of the Internal Revenue Code; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the imposition of a lien pursuant to Section 430(k) of the Internal Revenue Code or pursuant to Section 303(k) or 4068 of ERISA.

"*<u>Erroneous Payment</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(a</u>).

"*<u>Erroneous Payment Deficiency Assignment</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>Erroneous Payment Impacted Class</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>Erroneous Payment Return Deficiency</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>Erroneous Payment Subrogation Rights</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>EU Bail</u>*<u>-</u>*<u>In Legislation Schedule</u>*" shall mean the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

------

"*<u>Event of Default</u>*" shall mean each of the conditions or events set forth in <u>Section</u> <u>9.1</u>.

"*<u>Exchange Act</u>*" shall mean the Securities Exchange Act of 1934, as amended from time to time, and any successor statute.

"*<u>Excluded Accounts</u>*" shall mean: (a) deposit and/or securities accounts used *solely* for the payment of Taxes, the balance of which consists exclusively of (i) withheld income taxes, federal, state or local employment taxes and sales taxes, in such amounts as are required, in the reasonable judgment of the Borrower, to be paid to the IRS or state or local Governmental Authorities, or (ii) amounts required to be paid over to an employee benefit plan pursuant to DOL Reg. §–2510.3–102 on behalf of, or for the benefit of, employees of one (1) or more Credit Parties; (b) all accounts used *solely* for payroll, accounts maintained *solely* in trust for the benefit of third parties and fiduciary purposes (including fiduciary tax accounts), escrow and trust accounts, zero balance or swept accounts, and healthcare and other employee benefit accounts (including 401(k) accounts and pension fund accounts), in each case of this <u>clause (b</u>), so long as such account is used *solely* for such purpose; (c) any deposit and/or securities account maintained in a jurisdiction outside of the United States or owned by a Foreign Subsidiary; and (d) accounts the balance of which consists exclusively of amounts to be paid to employees in the ordinary course of business.

"*<u>Excluded Property</u>*" shall mean, with respect to the Borrower and each other Credit Party, including any Person that becomes a Credit Party after the Closing Date as contemplated by <u>Section</u> <u>7.14</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Excluded Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Real Estate Asset owned in fee or leased by a Credit Party that is located outside of the United States, or any Real Estate Asset leased by a Credit Party that is located in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Real Estate Asset owned in fee by a Credit Party that is located in the United States having a fair market value *not* in *excess* of One Million Dollars ($1,000,000) (as reasonably determined by the Borrower on the Closing Date or on the date of later purchase of such Real Estate Asset, as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any personal Property (including, without limitation, motor vehicles) in respect of which perfection of a Lien is *not*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) governed by the UCC; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) effected by appropriate evidence of the Lien being filed in either the United States Copyright Office or the United States Patent and Trademark Office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Equity Interests in any direct Foreign Subsidiary or any Regulated Entity, to the extent *not* required to be pledged to secure the Obligations pursuant to <u>Section</u> <u>7.12(a</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Property which, subject to the terms of <u>Section</u> <u>8.3</u>, is subject to a Lien of the type described in <u>Section</u> <u>8.2(m</u>) pursuant to documents which prohibit the applicable Credit Party from granting any other Liens in such Property;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any Property to the extent that the grant of a security interest therein would violate Applicable Laws, require a consent *not* obtained of any Governmental Authority, or constitute a breach of or default under, or result in the termination of or require a consent *not* obtained under, any contract, lease, license or other agreement evidencing or giving rise to such Property, or result in the invalidation thereof or provide any party thereto with a right of termination (other than to the extent that any such term would be rendered ineffective pursuant to Section 9–406, 9–407, 9–408 or 9–409 of the applicable UCC or any other Applicable Law or principles of equity);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any lease, license, certificate, permit, agreement or other authorization issued by any Governmental Authority, or any Properties subject to any such lease, license, certificate, permit, agreement or other authorization, in each case of the foregoing, in existence on the Closing Date or upon the acquisition of the relevant Subsidiary party thereto (other than any such lease, license, certificate, permit, agreement or other authorization entered into in contemplation of this Agreement in order that any Property would constitute "*Excluded Property*" by operation of this <u>clause (h</u>)), *solely* if, and to the extent that, the grant of a security interest therein would: (i) violate or invalidate such lease, license, certificate, permit, agreement or other authorization (in each case, only if such violation or invalidation is *not* rendered ineffective pursuant to Section 9– 406, 9–407, 9–408 or 9–409 of the applicable UCC or any other Applicable Law or principles of equity); (ii) create a right of termination in favor of any party thereto other than any Credit Party (or an Affiliate thereof); or (iii) otherwise require the consent of any Person that is *not* a Credit Party (or an Affiliate thereof), unless such consent has been obtained (<u>provided</u>, <u>that</u>, the Credit Parties shall have no obligation or responsibility to obtain such consent);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Margin Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any intent-to-use trademark application prior to the filing of a "Statement of Use" or "Amendment to Allege Use" with respect thereto, *solely* if, and to the extent, if any, that, and *solely* during the period, if any, during which, the grant or enforcement of a security interest therein would impair the validity or enforceability of such intent-to-use trademark application under Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any ownership interest of such Credit Party in the Property of, and/or any Equity Interests in, any joint venture entity and/or any Subsidiary that is *not* Wholly Owned Subsidiary, *solely* to the extent that (i) a security interest therein is *not* permitted to be granted by such Credit Party pursuant to the terms of the Organizational Documents of such joint venture entity or non-Wholly Owned Subsidiary (in each case, as in effect on the Closing Date or on such later date of initial acquisition by such Credit Party of Equity Interests in such joint venture entity or non-Wholly Owned Subsidiary), or (ii) the granting of a security interest therein by such Credit Party would require, pursuant to such Organizational Documents or the terms of other Contractual Obligations of such Credit Party (in each case, as in effect on the Closing Date or on such later date of initial acquisition by such Credit Party of Equity Interests in such joint venture entity or non-Wholly Owned Subsidiary), the consent of a Person that is *not* a Credit Party (or an Affiliate thereof) (in each case, after giving effect to Section 9–406, 9–407, 9–408 or 9–409 of the applicable UCC or any other Applicable Law or principle of equity, the assignment of which is expressly deemed to be effective under the UCC or other Applicable Law or principle of equity notwithstanding such provision), unless such consent has been obtained (<u>provided</u>, <u>that</u>, the Credit Parties shall have no obligation or responsibility to obtain such consent); <u>provided</u>, <u>that</u>, no such Organizational Documents or Contractual Obligations were formed, created, assumed or entered into (as applicable) with the intention of causing such Property to constitute "*Excluded Property*" by operation of this <u>clause (k</u>); 

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) any Property of any Credit Party to the extent that the costs, burdens (including tax and/or regulatory burdens, if applicable), difficulty or consequence of obtaining a security interest therein or perfection thereof *exceeds*, in the reasonable determination and agreement in writing of the Collateral Agent and the Borrower, the benefit to the holders of the Obligations afforded thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) proceeds and products of any and all of the foregoing excluded Property described in <u>clauses (a</u>) through (<u>l</u>) above only to the extent such proceeds and products would constitute Property or assets of the type described in <u>clauses (a</u>) through (<u>l</u>) above;

<u>provided</u>, <u>that</u>, the security interest granted to the Collateral Agent under the Security Agreement or any other Credit Document shall attach immediately to any asset of any Obligor (as such term is defined in the Security Agreement) at such time as such asset ceases to meet any of the criteria for "*Excluded Property*" described in any of the foregoing <u>clauses (a</u>) through (<u>m</u>) above.

"*<u>Excluded Swap Obligation</u>*" shall mean, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all, or a portion, of the Guaranty of such Guarantor of, or the grant under a Credit Document by such Guarantor of a security interest to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act (or the application or official interpretation thereof) by virtue of such Guarantor's failure for any reason to constitute an "eligible contract participant" as defined in the Commodity Exchange Act (determined after giving effect to <u>Section</u> <u>4.8</u> hereof and any and all guarantees of such Guarantor's Swap Obligations by other Credit Parties) at the time the Guaranty of such Guarantor, or grant by such Guarantor of a security interest, becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a Master Agreement governing more than one Swap Agreement, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to Swap Agreements for which such Guaranty or security interest becomes illegal.

"*<u>Excluded Subsidiary</u>*" shall mean, collectively, each Subsidiary of the Borrower (other than, in any event, any Subsidiary that was, at any time *prior* to the relevant date of determination, a Guarantor and/or an Obligor (as such term is defined in the Security Agreement)):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prohibited by Applicable Laws from providing a Guarantee of the Obligations and/or granting a Lien in favor of the Collateral Agent, for the benefit of the holders of the Obligations, in substantially all of its Property (other than any Excluded Property);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a Regulated Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a Foreign Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) an Immaterial Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent that the Administrative Agent, the Collateral Agent and the Borrower mutually determine and agree in writing that the costs and/or burden (including tax and/or regulatory burdens, if applicable) of obtaining a Guarantee by such Subsidiary of the Obligations would outweigh the benefit to the holders of the Obligations of obtaining such Guarantee.

------

"*<u>Excluded Taxes</u>*" shall mean any of the following Taxes imposed on, or with respect to, a Recipient or required to be withheld or deducted from a payment to a Recipient:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Taxes imposed on, or measured by, net income (however denominated), profits, or overall gross income or receipts, franchise or similar Taxes, and branch profits Taxes, in each case,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that are Other Connection Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to, or for the account of, such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under <u>Section</u> <u>2.17</u>), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender changes its lending office,

except, in each case, to the extent that, pursuant to <u>Section</u> <u>3.3</u>, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Taxes attributable to such Recipient's failure to comply with <u>Section</u> <u>3.3(f</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any U.S. federal withholding Taxes imposed under FATCA.

"*<u>Facility</u>*" shall mean any real property including all buildings, fixtures or other improvements located on such real property now, hereafter or heretofore owned, leased, operated or used by any Credit Party, any Subsidiary or any other Regulated Entity, or any of their respective predecessors.

"*<u>FATCA</u>*" shall mean Sections 1471 through 1474 of the Internal Revenue Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and *not* materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code.

"*<u>Federal Funds Rate</u>*" shall mean, for any day, the rate per annum (expressed, as a decimal, rounded upwards, if necessary, to the next higher one one-hundredth of one percent (0.01%)) equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the FRBNY on the Business Day next succeeding such day; <u>provided</u>, <u>that</u>, (a) if such day is *not* a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate charged to Regions Bank or any other Lender selected by the Administrative Agent on such day on such transactions as determined by the Administrative Agent.

"*<u>Federal Reserve Board</u>*" shall mean the Board of Governors of the Federal Reserve System (or any successor).

"*<u>Fee Letter</u>*" shall mean that certain fee letter agreement, dated as of September 19, 2024, by and among the Borrower, Regions Bank and Regions Capital Markets, a division of Regions Bank.

------

"*<u>FHLB</u>*" shall mean any federal home loan bank.

"*<u>Financial Covenants</u>*" shall mean, collectively, each of the financial covenants set forth in <u>Section</u> <u>8.8(a</u>), <u>Section</u> <u>8.8(b</u>) and <u>Section</u> <u>8.8(c</u>).

"*<u>Financial Officer Certification</u>*" shall mean, with respect to the financial statements for which such certification is required, the certification of the chief financial officer of the Borrower that such financial statements fairly present, in all material respects, the financial condition of the Credit Parties and Subsidiaries (including or excluding Regulated Entities, as so specified textually in the relevant instance of calculation) as of the dates indicated and the results of their operations and their cash flows for the periods indicated, subject to changes resulting from audit and normal year-end adjustments.

"*<u>First Amendment</u>*" shall mean that certain First Amendment to Credit Agreement, dated as of the First Amendment Effective Date, by and among the Credit Parties, the Lenders party thereto (including the Swingline Lender), the Issuing Bank, the Collateral Agent and the Administrative Agent.

"*<u>First Amendment Effective Date</u>*" shall mean April 11, 2025.

"*<u>Fiscal Quarter</u>*" shall mean a fiscal quarter of any Fiscal Year.

"*<u>Fiscal Year</u>*" shall mean the fiscal year of the Borrower ending on December 31 of each calendar year.

"*<u>Flood Hazard Property</u>*" shall mean any Real Estate Asset subject to a mortgage or deed of trust in favor of the Collateral Agent, for the benefit of the holders of the Obligations, and located in an area designated by the Federal Emergency Management Agency as having special flood or mud slide hazards.

"*<u>Floor</u>*" shall mean a rate of interest equal to zero percent (0.00%) per annum (subject to the proviso to the last sentence of <u>Section</u> <u>3.1(g)(v</u>)).

"*<u>Foreign Lender</u>*" shall mean a Lender that is *not* a U.S. Person.

"*<u>Foreign Subsidiary</u>*" shall mean any Subsidiary that: (a) is *not* a Domestic Subsidiary; (b) is a FSHCO; or (c) is a direct or indirect Subsidiary of a CFC (other than any such Subsidiary treated as a C-corporation for U.S. federal income tax purposes).

"*<u>FRBNY</u>*" shall mean the Federal Reserve Bank of New York (or any successor).

"*<u>Fronting Exposure</u>*" shall mean, at any time there is a Defaulting Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to the Issuing Bank, such Defaulting Lender's Revolving Commitment Percentage of the outstanding Letter of Credit Obligations with respect to Letters of Credit issued by the Issuing Bank, other than Letter of Credit Obligations as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to the Swingline Lender, such Defaulting Lender's Revolving Commitment Percentage of outstanding Swingline Loans made by the Swingline Lender, other than Swingline Loans as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders.

------

"*<u>FSHCO</u>*" shall mean any Domestic Subsidiary that does *not* own any material Property other than the Equity Interests in, and/or Indebtedness (if any) of, one (1) or more CFCs (or other FSHCOs).

"*<u>Fund</u>*" shall mean any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.

"*<u>Funded Debt</u>*" shall mean, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all obligations for borrowed money, whether current or long-term (including the Obligations hereunder), all obligations evidenced by bonds, debentures, notes, loan or credit agreements or other similar instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all obligations in respect of the deferred purchase price of Property or services (other than trade accounts payable in the ordinary course of business and, in each case, *not* past due for *more than* sixty (60) calendar days), including, without limitation, any Earn Out Obligations recognized as a liability on the balance sheet of such Person in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all unreimbursed obligations of such Person with respect to draw amounts under letters of credit, bankers' acceptances and similar instruments (including bank guaranties);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Attributable Principal Amount of Capital Leases, Synthetic Leases, Securitization Transactions and Sale and Leaseback Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Disqualified Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all Funded Debt of others secured by (or for which the holder of such Funded Debt has an existing right, contingent or otherwise, to be secured by) any Lien on, or payable out of the proceeds of production from, Property owned or acquired by such Person, whether or not the obligations secured thereby have been assumed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all Guarantees in respect of Funded Debt of another Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Funded Debt of any partnership or joint venture or other similar entity in which such Person is a general partner or joint venturer, and, as such, has personal liability for such obligations, but only to the extent there is recourse to such Person for payment thereof.

For purposes hereof, the amount of Funded Debt shall be determined based on: (i) the outstanding principal amount thereof, in the case of borrowed money indebtedness under <u>clause (a</u>) above and purchase money indebtedness and deferred purchase obligations under <u>clause (b</u>) above; and (ii) the amount of Funded Debt that is the subject of such Guarantees, in the case of Guarantees under <u>clause (g</u>) above.

"*<u>Funding Notice</u>*" shall mean a notice substantially in the form of <u>Exhibit 2.1</u>.

"*<u>GAAP</u>*" shall mean, subject to the limitations on the application thereof set forth in <u>Section</u> <u>1.2</u>, accounting principles generally accepted in the United States in effect as of the date of determination thereof.

------

"*<u>Governmental Acts</u>*" shall mean any act or omission, whether rightful or wrongful, of any present or future *de jure* or *de facto* government or Governmental Authority.

"*<u>Governmental Authority</u>*" shall mean the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank and any group or body charged with setting financial accounting or regulatory capital rules or standards).

"*<u>Governmental Authorization</u>*" shall mean any permit, license, authorization, plan, directive, consent order or consent decree of or from any Governmental Authority.

"*<u>Guarantee</u>*" shall mean, as to any Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any obligation, contingent or otherwise, of such Person guaranteeing, or having the economic effect of guaranteeing, any Indebtedness or other obligation payable or performable by another Person (the "*<u>primary obligor</u>*") in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to purchase or lease Property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien).

The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term "*Guarantee*" as a verb has a corresponding meaning.

"*<u>Guaranteed Obligations</u>*" shall have the meaning specified for such term in <u>Section</u> <u>4.1</u>.

"*<u>Guarantor Joinder Agreement</u>*" shall mean a guarantor joinder agreement substantially in the form of <u>Exhibit 7.14</u> delivered by a Domestic Subsidiary pursuant to <u>Section</u> <u>7.14</u>.

------

"*<u>Guarantors</u>*" shall mean: (a) each existing and future direct and indirect Domestic Subsidiary that is *not* an Excluded Subsidiary; (b) each Person identified as a "*Guarantor*" on the signature pages to this Agreement; (c) each other Person that joins as a Guarantor pursuant to <u>Section</u> <u>7.14</u>; (d) with respect to (i) Secured Swap Obligations, (ii) Secured Treasury Management Obligations, and (iii) Swap Obligations of a Specified Credit Party (determined before giving effect to <u>Section</u> <u>4.1</u> and <u>Section</u> <u>4.8</u>) under the Guaranty hereunder, the Borrower; and (e) their successors and permitted assigns.

"*<u>Guaranty</u>*" shall mean the Guarantee made by the Guarantors in favor of the Administrative Agent, the Lenders and the other holders of the Obligations pursuant to <u>Article 4</u>.

"*<u>Hazardous Materials</u>*" shall mean any hazardous substances defined by the Comprehensive Environmental Response Compensation and Liability Act, 42 USCA 9601, *et seq*., as amended ("<u>CERCLA</u>"), including any hazardous waste as defined under 40 C.F.R. Parts 260–270, gasoline or petroleum (including crude oil or any fraction thereof), asbestos or polychlorinated biphenyls.

"*<u>Hazardous Materials Activity</u>*" shall mean any past, current, proposed or threatened activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, presence, existence, location, Release, threatened Release, discharge, placement, generation, transportation, processing, construction, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.

"*<u>Highest Lawful Rate</u>*" shall mean the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under Applicable Laws relating to any Lender which are currently in effect or, to the extent allowed under such Applicable Laws, which may hereafter be in effect and which allow a higher maximum non-usurious interest rate than Applicable Laws now allow.

"*<u>Immaterial Subsidiary</u>*" shall mean, as of any date of determination, each Subsidiary that has been designated by the Borrower, in writing to the Administrative Agent, as an "*Immaterial Subsidiary*" for purposes of this Agreement (and *not* re-designated as a Material Subsidiary as provided below), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for purposes of this Agreement and the other Credit Documents, at no time shall

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the aggregate book value of the total Property of (I) all Immaterial Subsidiaries, as of the last day of the most recently ended Trailing Period, *equal* or *exceed* five percent (5.0%), or (II) any individual Immaterial Subsidiary, as of the last day of the most recently ended Trailing Period, *equal* or *exceed* two and one-half of one percent (2.5%), in each case of the foregoing <u>clauses (a)(i)(A)(I</u>) and (<u>a)(i)(A)(II</u>), of the aggregate book value of the total Property of the Credit Parties and Subsidiaries as of such date, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the gross revenues of (I) all Immaterial Subsidiaries for the most recently ended Trailing Period *equal* or *exceed* five percent (5.0%), or (II) any individual Immaterial Subsidiary for the most recently ended Trailing Period *equal* or *exceed* two and one-half of one percent (2.5%), in each case of the foregoing <u>clauses (a)(i)(B)(I</u>) and (<u>a)(i)(B)(II</u>), of the gross revenues of the Credit Parties and Subsidiaries for such period,

------

in each case of the foregoing <u>clauses (a)(i)(A</u>) and (<u>a)(i)(B</u>), determined on a consolidated basis in accordance with GAAP, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the portion of Consolidated EBITDA, recomputed as of the last day of the most recently ended Trailing Period, attributable to the operations of (I) all Immaterial Subsidiaries, taken together, *equal* or *exceed* five percent (5.0%), or (II) any individual Immaterial Subsidiary *equal* or *exceed* two and one-half of one percent (2.5%), in each case of the foregoing <u>clauses (a)(i)(C)(I</u>) and (<u>a)(i)(C)(II</u>), of Consolidated EBITDA for such period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower shall *not* designate any new Immaterial Subsidiary if such designation would *not* comply with the provisions set forth in the foregoing <u>clause (a)(i</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the event that, on any Subsidiary Determination Date, the aggregate book value of the total Property, gross revenues or attributable portion of Consolidated EBITDA of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) all Subsidiaries so designated by the Borrower as "*Immaterial Subsidiaries*" (and *not* re-designated as "*Material Subsidiaries*"), taken together, or 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any individual Subsidiary so designated by the Borrower as an "*Immaterial Subsidiary*" (and *not* re-designated as a "*Material Subsidiary*"),

shall, in any such case of the foregoing <u>clauses (a)(iii)(A</u>) or (<u>a)(iii)(B</u>), *exceed* the respective limits set forth in the foregoing <u>clause (a)(i</u>), then the Borrower shall, promptly and, in any event, within five (5) Business Days after the applicable Subsidiary Determination Date, re-designate one (1) or more Immaterial Subsidiaries as Material Subsidiaries by providing written notice of such re-designation(s) to the Administrative Agent, so that (immediately after giving effect to such re-designation(s)) the aggregate book value of total Property, gross revenues and attributable portion of Consolidated EBITDA of (I) all Subsidiaries still designated as "*Immaterial Subsidiaries*", taken together, and (II) each individual Subsidiary still designated as an "*Individual Subsidiary*", in each case of the foregoing <u>clauses (a)(iii)(I</u>) and (<u>a)(iii)(II</u>), shall *not exceed* such respective limits; and <u>further</u> (and for purposes of clarity), upon any such re-designation made in accordance with the foregoing of this definition, each individual Subsidiary so re-designated shall be required to become a Guarantor in accordance with <u>Section</u> <u>7.14</u> (it being understood and agreed that the forty-five (45) calendar day period referred to in such Section shall be deemed to have commenced as of the applicable Subsidiary Determination Date); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower may designate and re-designate a Subsidiary as an Immaterial Subsidiary at any time, subject to the restrictions and limitations set forth in the foregoing <u>clause (a</u>).

"*<u>Incremental Cap</u>*" shall mean, as of any date of determination, the *difference* between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fifty Million Dollars ($50,000,000); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the aggregate original principal or committed amount of all Incremental Facilities previously established and/or incurred as of such date.

"*<u>Incremental DDTL Increase</u>*" shall mean any increase in the Aggregate DDTL Commitment Amount established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>).

------

"*<u>Incremental Facility</u>*" shall mean any Incremental Revolver Increase, any Incremental Term Loan A Increase, any Incremental DDTL Increase, or any other Incremental Term Loan.

"*<u>Incremental Facility Agreement</u>*" shall mean, with respect to any Incremental Facility, the definitive amendment, credit, commitment, joinder and/or other legal documentation executed and delivered by the Borrower pursuant to which such Incremental Facility is established, which amendment, credit, commitment, joinder and/or other legal documentation shall be in form and detail reasonably satisfactory to the Administrative Agent.

"*<u>Incremental Revolver Increase</u>*" shall mean any increase in the Aggregate Revolving Commitment Amount established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>).

"*<u>Incremental Term Loan</u>*" shall mean any additional Term Loan established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>) (including, for purposes of clarity, (i) any additional advance under the Term Loan A or the Delayed Draw Term Loan established in connection with an Incremental Term Loan A Increase or an Incremental DDTL Increase, as well as (ii) any additional Term Loan of a separate Class established after the Closing Date pursuant to such Section).

"*<u>Incremental Term Loan A Increase</u>*" shall mean any increase in the Aggregate Term Loan A Commitment Amount established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>).

"*<u>Incremental Term Loan Commitment</u>*" shall mean, with respect to any Person(s) identified as an "*Incremental Lender*" (or substantially similar designation) in respect of an Incremental Term Loan in the Incremental Facility Agreement establishing such Incremental Term Loan, the respective commitment of such Person(s) (together with their respective successors and permitted assigns) to advance their respective portion of principal under such Incremental Term Loan in accordance with the terms of such Incremental Facility Agreement and this Agreement; <u>provided</u>, <u>that</u>, at any time after the establishment and incurrence of such Incremental Term Loan, the determination of "*Required Lenders*" shall thereafter include the aggregate outstanding principal balance of such Incremental Term Loan.

"*<u>Incremental Term Loan Commitment Percentage</u>*" shall mean, with respect to each Lender at any time and for any Incremental Term Loan, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the *sum of* (i) the amount of such Lender's Incremental Term Loan Commitment (if any) in respect of such Incremental Term Loan in effect at such time, *plus* (ii) the aggregate principal balance of the portion of such Incremental Term Loan advanced by such Lender that is outstanding at such time; and (b) the *denominator* of which is the *sum of* (i) the aggregate amount of the Incremental Term Loan Commitments of all of the Lenders, taken together, in respect of such Incremental Term Loan in effect at such time, *plus* (ii) the aggregate outstanding principal balance of such Incremental Term Loan at such time.

"*<u>Indebtedness</u>*" shall mean, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Funded Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) net obligations under any Swap Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Guarantees in respect of Indebtedness of another Person; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Indebtedness of the types referred to in <u>clauses (a</u>) through (<u>c</u>) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or joint venturer, unless such Indebtedness is expressly made non-recourse to such Person.

For purposes hereof, the amount of Indebtedness shall be determined based on the Swap Termination Value in the case of net obligations under any Swap Agreement pursuant to <u>clause (b</u>) above.

"*<u>Indemnified Taxes</u>*" shall mean: (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by, or on account of, any obligation of any Credit Party under any Credit Document; and (b) to the extent *not* otherwise described in <u>clause (a</u>), Other Taxes.

"*<u>Indemnitee</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.2(b</u>).

"*<u>Insurance Regulatory Authority</u>*" shall mean, with respect to any Regulated Entity, the insurance department or similar Governmental Authority charged with regulating insurance companies or insurance holding companies, in its jurisdiction of domicile and, to the extent that it has regulatory authority over such Regulated Entity, in each other jurisdiction in which such Regulated Entity conducts business or is licensed to conduct business.

"*<u>Intellectual Property</u>*" shall mean all trademarks, service marks, trade names, copyrights, patents, patent rights, franchises related to intellectual property, licenses related to intellectual property and other intellectual property rights.

"*<u>Interest Payment Date</u>*" shall mean, with respect to: (a) any Base Rate Loan and any Swingline Loan, (i) the last Business Day of each calendar quarter, commencing on the first (1<sup>st</sup>) such date to occur after the Closing Date, (ii) the Revolving Commitment Termination Date, (iii) the DDTL Commitment Termination Date, and (iv) the applicable Maturity Date therefor; and (b) any SOFR Loan, (i) the last day of each Interest Period applicable to such Loan, <u>provided</u>, <u>that</u>, in the case of each Interest Period of longer than three (3) months "*Interest Payment Date*" shall also include each date that is three (3) months, or an integral multiple thereof, after the commencement of such Interest Period, (ii) the Revolving Commitment Termination Date, (iii) the DDTL Commitment Termination Date, and (iv) the applicable Maturity Date therefor.

"*<u>Interest Period</u>*" shall mean, in connection with a SOFR Loan, an interest period of one (1), three (3) or six (6) months (in each case, subject to availability), as selected by the Borrower in the applicable Funding Notice or Conversion / Continuation Notice, (a) initially, commencing on the Credit Date or Conversion / Continuation Date thereof, as the case may be, and (b) thereafter, commencing on the day on which the immediately preceding Interest Period expires, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if an Interest Period would otherwise expire on a day that is *not* a Business Day, such Interest Period shall expire on the next succeeding Business Day unless no further Business Day occurs in such month, in which case, such Interest Period shall expire on the immediately preceding Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall, subject to <u>clause (iii</u>) below, end on the last Business Day of a calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no Interest Period with respect to any Term Loan shall extend beyond any principal amortization payment date, except to the extent that the portion of such Term Loan that is comprised of SOFR Loans that is expiring prior to the applicable principal amortization payment date *equals* or *exceeds* the amount of the principal amortization payment then due;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) no Interest Period with respect to any portion of the Revolving Loans shall extend beyond the Revolving Commitment Termination Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no Interest Period with respect to any portion of the Delayed Draw Term Loan shall extend beyond the DDTL Commitment Termination Date.

"*<u>Interest Rate Determination Date</u>*" shall mean, with respect to any Interest Period, the date that is two (2) Business Days prior to the first (1<sup>st</sup>) day of such Interest Period.

"*<u>Internal Revenue Code</u>*" shall mean the Internal Revenue Code of 1986.

"*<u>Investment</u>*" shall mean, as to any Person, any direct or indirect acquisition of or relating to, or investment by, such Person (including pursuant to any merger with any Person that was *not* a Wholly Owned Subsidiary prior to such merger), whether by means of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the purchase or other acquisition of Equity Interests of another Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such other Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an Acquisition.

For purposes of calculating compliance with any of the Financial Covenants (and, for purposes of any calculations substantially based on, or derivative from, such compliance), the amount of any Investment shall be deemed to be the amount *actually* invested, without adjustment for subsequent increases or decreases in the value of such Investment. For the avoidance of doubt, any forgiveness (in whole or in part) by the Credit Parties (or any of them) of any fees otherwise owed by, or on behalf of, any Regulated Entity, on the one hand, to, or for the benefit of, the Credit Parties (or any of them), on the other hand, pursuant to any managing general agent, service company or attorney-in-fact agreement between any such Regulated Entity, on the one hand, and the Credit Parties (or any of them), on the other hand, shall, in any such case of the foregoing, constitute an "*Investment*" by such Credit Party or Credit Parties (as applicable) in such Regulated Entity, in the aggregate amount of such fees that are so forgiven.

"*<u>Involuntary Disposition</u>*" shall mean the receipt by any Credit Party, any Subsidiary, or any other Regulated Entity of any cash insurance proceeds or condemnation awards payable by reason of theft, loss, physical destruction or damage, taking or similar event with respect to any of its Property.

"*<u>IRS</u>*" shall mean the United States Internal Revenue Service.

"*<u>ISP</u>*" shall mean, with respect to any Letter of Credit, the "International Standby Practices 1998" published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance of such Letter of Credit).

"*<u>Issuance Notice</u>*" shall mean an Issuance Notice substantially in the form of <u>Exhibit 2.3</u>.

------

"*<u>Issuer Documents</u>*" shall mean with respect to any Letter of Credit, the Letter of Credit Application, and any other document, agreement and instrument entered into by the Issuing Bank and any Credit Party, any Subsidiary or any other Regulated Entity, or otherwise in favor of the Issuing Bank and relating to such Letter of Credit.

"*<u>Issuing Bank</u>*" shall mean Regions Bank in its capacity as issuer of Letters of Credit hereunder, together with its permitted successors and assigns in such capacity.

"*<u>Junior Debt</u>*" shall mean any Funded Debt of any Credit Party, Subsidiary or other Regulated Entity that is: (a) unsecured; (b) secured by any or all of the Collateral and subordinated in respect of lien priority to the Liens granted in favor of the Collateral Agent, for the benefit of the holders of the Obligations; or (c) subordinated in right of payment to the prior payment of any or all of the Obligations.

"*<u>Latest Maturity Date</u>*" shall mean, as of any date of determination, the *latest* to occur of: (a) the Revolving Commitment Termination Date; (b) the DDTL Commitment Termination Date; and (c) the latest Maturity Date applicable to any Term Loan.

"*<u>Leasehold Property</u>*" shall mean any leasehold interest of any Credit Party, as lessee or tenant, in any Real Estate Asset, or any Property right pursuant to a lease, rental, easement, servitude or similar agreement, however termed, in each case now held or hereafter acquired.

"*<u>Lenders</u>*" shall mean, collectively, each financial institution with a Commitment, together with its successors and permitted assigns. The initial Lenders as of the Closing Date are identified on the signature pages to this Agreement, and the Lenders as of the Second Amendment Effective Date are identified on the signature pages to the Second Amendment.

"*<u>Letter of Credit</u>*" shall mean any standby letter of credit issued hereunder.

"*<u>Letter of Credit Application</u>*" shall mean an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the Issuing Bank.

"*<u>Letter of Credit Borrowing</u>*" shall mean any Credit Extension resulting from a drawing under any Letter of Credit that has *not* been reimbursed or refinanced as a Borrowing of Revolving Loans.

"*<u>Letter of Credit Fees</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.10(b)(i</u>).

"*<u>Letter of Credit Obligations</u>*" shall mean, at any time, the *sum of*: (a) the maximum amount available to be drawn under Letters of Credit then outstanding, assuming compliance with all requirements for drawings referenced therein; *plus* (b) the aggregate amount of all drawings under Letters of Credit that have *not* been reimbursed by the Borrower, including Letter of Credit Borrowings. For all purposes of this Agreement, (i) amounts available to be drawn under Letters of Credit will be calculated as provided in <u>Section</u> <u>1.3(i</u>), and (ii) if a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be "outstanding" in the amount so remaining available to be drawn.

"*<u>Letter of Credit Sublimit</u>*" shall mean, as of any date of determination, the aggregate unused amount of the Revolving Commitments then in effect.

"*<u>Lien</u>*" shall mean: (a) any lien, mortgage, pledge, assignment, security interest, charge or encumbrance of any kind (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, and any lease or license in the nature thereof) and any option, trust or other preferential arrangement having the practical effect of any of the foregoing; and (b) in the case of Securities, any purchase option, call or similar right of a third party with respect to such Securities.

------

"*<u>Liquidity</u>*" shall mean, as of any date of determination, the *sum of*: (a) unrestricted cash and Cash Equivalents held by the Credit Parties on such date; *plus* (b) the aggregate amount actually available to be drawn by the Borrower under the Aggregate Revolving Commitments on such date. For the avoidance of doubt, the terms "*cash*" and "*Cash Equivalents*" as used in this definition shall only apply to any such Property that is directly owned by a Credit Party, and shall *not* include any amounts of consolidated or combined cash and/or Cash Equivalents consisting of funds owned by: (i) a Subsidiary (including any Regulated Subsidiary) that is *not* a Credit Party; or (ii) any other Regulated Entity.

"*<u>Loan</u>*" shall mean any Revolving Loan, any Swingline Loan or any Term Loan, and the Base Rate Loans and SOFR Loans comprising such Loans.

"*<u>Margin Stock</u>*" shall have the meaning specified for such term in Regulation U of the Federal Reserve Board, as in effect from time to time.

"*<u>Master Agreement</u>*" shall have the meaning specified for such term in the definition of "*Swap Agreement*" below.

"*<u>Material Adverse Effect</u>*" shall mean any effect, event, condition, action, omission, change or state of facts that, individually or in the aggregate, has resulted in, or could reasonably be expected to result in, a material adverse effect with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the business operations, assets, Property or financial condition of the Credit Parties, Subsidiaries and other Regulated Entities, taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the ability of the Credit Parties, taken as a whole, to fully and timely perform the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the legality, validity, binding effect, or enforceability against a Credit Party of any Credit Document to which it is a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the value of the whole, or any material part, of the Collateral, or the priority of Liens in the whole, or any material part, of the Collateral in favor of the Collateral Agent, for the benefit of the holders of the Obligations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the material rights, remedies and benefits available to, or conferred upon, the Agent, any Lender, and/or any other holder of Obligations under any Credit Document.

"*<u>Material Contract</u>*" shall mean: (a) any managing general agent or service company agreement entered into between any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the one hand, and any Regulated Entity, on the other hand; (b) any attorney-in-fact agreement entered into between any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the one hand, and any Qualifying Reciprocal Entity, on the other hand; and (c) any other Contractual Obligation to which any Credit Party, any Subsidiary or any other Regulated Entity, or any of their respective Properties, are bound (other than those evidenced by the Credit Documents) pursuant to which a default, breach or termination thereof could reasonably be expected to result in a Material Adverse Effect.

"*<u>Material Subsidiary</u>*" shall mean, as of any date of determination, each Subsidiary that is *not* an Immaterial Subsidiary.

------

"*<u>Maturity Date</u>*" shall mean: (a) with respect to the Term Loan A and the Delayed Draw Term Loan, the *earlier* to occur of (i) the date that is the fifth (5<sup>th</sup>) anniversary of the Closing Date (or, if such date is *not* a Business Day, the immediately prior Business Day), and (ii) the date on which the aggregate outstanding principal balance(s) of the Term Loan A and/or the Delayed Draw Term Loan (as applicable) have been declared, or automatically have become, due and payable pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise); and (b) with respect to any Incremental Term Loan, the *earlier* to occur of (i) the maturity date identified in the applicable Incremental Facility Agreement establishing such Incremental Term Loan, and (ii) the date on which the aggregate outstanding principal balance of such Incremental Term Loan has been declared, or automatically has become, due and payable pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise).

"*<u>Moody</u>*<u>'</u>*<u>s</u>*" shall mean Moody's Investor Services, Inc., together with its successors.

"*<u>Mortgages</u>*" shall mean the mortgages, deeds of trust or deeds to secure debt that purport to grant to the Collateral Agent, for the benefit of the holders of the Obligations, a security interest in any Real Estate Asset.

"*<u>Multiemployer Plan</u>*" shall mean any "multiemployer plan" as defined in Section 3(37) of ERISA which is sponsored, maintained or contributed to by, or required to be contributed to by, any of the Credit Parties, Subsidiaries or Regulated Entities, or any of their respective ERISA Affiliates, or with respect to which any of the Credit Parties, Subsidiaries or Regulated Entities, or any of their respective ERISA Affiliates, previously sponsored, maintained or contributed to or was required to contributed to, and still has liability.

"*<u>NAIC</u>*" shall mean the National Association of Insurance Commissioners (or any successor to any of its principal functions).

"*<u>Net Cash Proceeds</u>*" shall mean the aggregate proceeds paid in cash or Cash Equivalents received by any Credit Party, any Subsidiary or any other Regulated Entity in connection with any Specified Transaction, net of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) direct costs incurred or estimated costs for which reserves are maintained, in connection therewith (including legal, accounting and investment banking fees and expenses, sales commissions and underwriting discounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) estimated Taxes paid or payable (including sales, use or other transactional taxes and any net marginal increase in income taxes) as a result thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the amount required to retire any Indebtedness secured by a Lien on related Property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reasonable reserves in accordance with GAAP for any liabilities or indemnification payments (fixed or contingent) attributable to seller's indemnities and representations and warranties to purchasers and other retained liabilities in respect of any Asset Sale undertaken by any Credit Party, any Subsidiary or any other Regulated Entity; <u>provided</u>, <u>that</u>, to the extent that any such amount ceases to be so reserved (other than any reduction in such reserve to make a payment in respect of such liability or indemnification obligations), the amount thereof shall be deemed to be Net Cash Proceeds of such Asset Sale at such time.

------

For purposes hereof, "*Net Cash Proceeds*" includes any cash or Cash Equivalents received upon the disposition of any non-cash consideration received by any Credit Party, any Subsidiary or any other Regulated Entity in any Specified Transaction.

"*<u>Non</u>*<u>-</u>*<u>Consenting Lender</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.17</u>.

"*<u>Non</u>*<u>-</u>*<u>Defaulting Lender</u>*" shall mean, at any time, each Lender that is *not* a Defaulting Lender at such time.

"*<u>Non</u>*<u>-</u>*<u>Qualifying Reinsurer</u>*" shall mean any reinsurer that is *not* a Qualifying Reinsurer.

"*<u>Note</u>*" shall mean a promissory note in the form of <u>Exhibit 2.5</u> issued by the Borrower in favor of a Lender, as such promissory note may be amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time.

"*<u>Notice</u>*" shall mean a Funding Notice, an Issuance Notice or a Conversion / Continuation Notice.

"*<u>Obligations</u>*" shall mean all obligations, indebtedness and other liabilities of every nature of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Credit Party from time to time owing to the Agents (including any former Agents), the Issuing Bank, the Lenders (including former Lenders in their capacity as such) or any of them, the Qualifying Swap Providers and the Qualifying Treasury Management Banks under any Credit Document, any Secured Swap Agreement or any Secured Treasury Management Agreement, and (without duplication)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each Subsidiary and other Regulated Entity from time to time owing to the Qualifying Swap Providers and the Qualifying Treasury Management Banks under any Secured Swap Agreement or ant Secured Treasury Management Agreement,

in each case of the foregoing <u>clause (a</u>) and (<u>b</u>), together with all renewals, extensions, modifications or refinancings thereof, whether for principal, interest (including fees and interest which, but for the filing of a petition in bankruptcy with respect to such Credit Party, Subsidiary or other Regulated Entity, would have accrued on any Obligation, whether or not a claim is allowed against such Credit Party, Subsidiary or other Regulated Entity for such interest or fees in the related bankruptcy proceeding), reimbursement of amounts drawn under Letters of Credit, payments for early termination of Swap Agreements, fees, expenses, indemnification or otherwise, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Erroneous Payment Subrogation Rights;

<u>provided</u>, <u>that</u>, the "*<u>Obligations</u>*" of a Credit Party, Subsidiary or other Regulated Entity shall *exclude* any Excluded Swap Obligations with respect to such Credit Party, Subsidiary or other Regulated Entity. Notwithstanding anything to the contrary contained herein or under any of the other Credit Documents, the obligations of any Credit Party, any Subsidiary or any other Regulated Entity under any Secured Swap Agreement or any Secured Treasury Management Agreement shall be secured and guaranteed pursuant to the Credit Documents only to the extent that, and for so long as, the Obligations (other than any Obligations with respect to Secured Swap Agreements and Secured Treasury Management Agreements) are so secured and guaranteed.

"*<u>OFAC</u>*" shall mean the U.S. Department of the Treasury's Office of Foreign Assets Control.

------

"*<u>Organizational Documents</u>*" shall mean, with respect to: (a) any corporation, its certificate or articles of incorporation or organization, as amended, and its by-laws, as amended; (b) any limited partnership, its certificate of limited partnership, as amended, and its partnership agreement, as amended; (c) any general partnership, its partnership agreement, as amended; and (d) any limited liability company, its articles of organization, certificate of formation or comparable documents, as amended, and its operating agreement, as amended. In the event any term or condition of this Agreement or any other Credit Document requires any Organizational Document to be certified by a secretary of state or similar governmental official, the reference to any such "*Organizational Document*" shall only be to a document of a type customarily certified by such governmental official.

"*<u>Other Connection Taxes</u>*" shall mean, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Credit Document, or sold or assigned an interest in any Loan or Credit Document).

"*<u>Other Taxes</u>*" shall mean all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Credit Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to <u>Section</u> <u>2.17</u>).

"*<u>Participant</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.5(d</u>).

"*<u>Participant Register</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.5(d</u>).

"*<u>Patriot Act</u>*" shall have the meaning specified for such term in <u>Section</u> <u>6.15(f</u>).

"*<u>Payment Event of Default</u>*" shall mean an Event of Default pursuant to <u>Section p.1(a</u>).

The "*<u>Payment in Full</u>*" of the Obligations (or any specified Class thereof), and the Obligations (or any specified Class thereof) being "*<u>Paid in Full</u>*", shall, in each case, mean the expiration or earlier termination of all of the Commitments (or of all of the Commitments of the specified Class thereof, as applicable), the payment in full, in immediately available funds, of all of the Obligations (or such specified Class thereof), and, as applicable, the expiration or earlier termination (or Cash Collateralization to the satisfaction of the Issuing Bank) of all Letters of Credit (in each case, without any pending draw) and the reimbursement of all other Letter of Credit Obligations, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) contingent indemnification and expense reimbursement Obligations, in each case of this <u>clause (a</u>), *solely* to the extent that no claim(s) giving rise thereto have been asserted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) obligations, indebtedness and other liabilities under any Secured Swap Agreement or any Secured Treasury Management Agreement owed by any Credit Party, any Subsidiary, or any other Regulated Entity to any Qualifying Swap Provider or any Qualifying Treasury Management Bank (as applicable), *solely* to the extent that security, guarantee and/or other arrangements satisfactory to such Qualifying Swap Provider or such Qualifying Treasury Management Bank with respect to such obligations, indebtedness and other liabilities shall have been made;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) contingent Obligations for which (i) Cash Collateral, (ii) backstopping letters of credit, or (iii) other arrangements have been made, in each case of the foregoing <u>clauses (c)(i</u>) through (<u>c)(iii</u>), that are satisfactory to the holder(s) of such contingent Obligations.

"*<u>Payment Recipient</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(a</u>).

"*<u>PBGC</u>*" shall mean the Pension Benefit Guaranty Corporation or any successor thereto.

"*<u>Pension Plan</u>*" shall mean any "employee pension benefit plan" as defined in Section 3(2) of ERISA other than a Multiemployer Plan, which is subject to Section 412 of the Internal Revenue Code or Section 302 of ERISA and which is sponsored, maintained or contributed to by, or required to be contributed to by, any Credit Party, any Subsidiary or any other Regulated Entity, or with respect to which any Credit Party, any Subsidiary or any other Regulated Entity previously sponsored, maintained or contributed to, or was required to contribute to, and still has liability.

"*<u>Periodic Term SOFR Determination Date</u>*" shall have the meaning specified for such term in the definition of "*Term SOFR*" below.

"*<u>Permitted Acquisition</u>*" shall mean (x) any portfolio investment made by any Regulated Entity in the ordinary course of business, as well as (y) any Acquisition that, *solely* in the case of this <u>clause (y</u>), satisfies each of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Property to be acquired (or the Property of the Person to be acquired) in such Acquisition is a business, or is used or useful in a business, permitted under <u>Section</u> <u>8.14</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the board of directors (or other comparable governing body) of the Person to be acquired (or owning the Property to be acquired) shall have approved the Acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) both immediately *before* and immediately *after* giving effect to such Acquisition (and to the payment of all cash consideration and any incurrence or assumption of Indebtedness in connection therewith, but without giving effect to any "netting" of the cash proceeds thereof against Consolidated Funded Debt):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default shall exist and be continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the representations and warranties made by each of the Credit Parties in each Credit Document to which they are a party shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) as if made on, and as of, the date of consummation of such Acquisition (after giving effect thereto), except to the extent that such representations and warranties expressly relate to an earlier date, in which case, such representations and warranties shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Credit Parties shall be in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis, shall be *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the maximum Consolidated Leverage Ratio then permitted under <u>Section</u> <u>8.8(a</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) there shall be *at least* Ten Million Dollars ($10,000,000) of Liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the aggregate cash and non-cash consideration (including any assumption of Indebtedness, deferred purchase price and any Earn Out Obligations and any equity consideration) paid by the Credit Parties, Subsidiaries and other Regulated Entities (and including, for purposes of clarity, any such Captive Reinsurance Companies) for all such Acquisitions occurring during the term of this Agreement shall *not exceed* twenty-five percent (25.0%) of the consolidated stockholders' equity of the Credit Parties, Subsidiaries and other Regulated Entities (determined based on the consolidated financial statements most recently delivered to the Administrative Agent pursuant to this Agreement at the time of consummation of any such Acquisition); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *at least* five (5) Business Days prior to the consummation of such Acquisition, an Authorized Officer of the Borrower shall provide a certificate, in form and detail reasonably satisfactory to the Administrative Agent, affirming compliance with each of the items set forth in <u>clauses (a</u>) through (<u>d</u>) above.

"*<u>Permitted Holders</u>*" shall mean, collectively: (a) each of (i) David Flitman, an individual resident of the state of Florida, and (ii) Steven Hoffman, an individual resident of the state of Florida; and (b) any trust or other estate-planning vehicle established for the benefit of (i) any such individual referred to in the foregoing <u>clause (a</u>), or (ii) any other individual having a relationship by blood (to the second (2<sup>nd</sup>) degree of consanguinity), marriage, or adoption to any such individual referred to in the foregoing <u>clause (a</u>), and, in each case of the foregoing <u>clauses (b)(i</u>) and (<u>b)(ii</u>), in respect of which such individual referred to in the foregoing <u>clause (a</u>) serves as sole trustee or in a similar capacity.

"*<u>Permitted Liens</u>*" shall mean each of the Liens permitted pursuant to <u>Section</u> <u>8.2</u>.

"*<u>Permitted Refinancing</u>*" shall mean, with respect to any existing Indebtedness, any extension, renewal, refinancing and/or replacement of any such Indebtedness, so long as any such extension, renewal, refinancing and/or replacement of such Indebtedness:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has market terms and conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has a maturity date that is *later than* that of the Indebtedness being extended, renewed or refinanced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) has an average life to maturity that is *greater than* that of the Indebtedness being extended, renewed or refinanced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) does *not* include an obligor that was *not* an obligor with respect to the Indebtedness being extended, renewed or refinanced, unless such obligor is also a Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) remains subordinated if, and to the same extent that, the Indebtedness being extended, renewed or refinanced was subordinated to the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) remains unsecured if the Indebtedness being extended, renewed or refinanced was unsecured;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) does *not exceed* in a principal amount the principal amount of the Indebtedness being renewed, extended, refinanced or replaced, *plus* accrued and unpaid interest and reasonable fees and expenses, premiums and penalties incurred in connection therewith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) is *not* incurred, created or assumed if any Default or Event of Default then exists or would arise therefrom.

"*<u>Person</u>*" shall mean any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"*<u>Platform</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.1(d</u>).

"*<u>Prime Rate</u>*" shall mean the per annum rate which the Administrative Agent publicly announces from time to time to be its prime lending rate, as in effect from time to time. The Administrative Agent's prime lending rate is a reference rate and does *not* necessarily represent the lowest or best rate charged to customers.

"*<u>Principal Office</u>*" shall mean, for the Administrative Agent, the Collateral Agent, the Swingline Lender and the Issuing Bank, such Person's "*Principal Office*" as set forth on <u>Appendix B</u>, or such other office as it may from time to time designate in writing to the Borrower and each Lender.

"*<u>Pro Forma Basis</u>*" shall mean, with respect to any Specified Transaction, whether actual or proposed, for purposes of determining compliance with any of the Financial Covenants (or with any condition(s) and/or test(s) based on such compliance that are subject to calculation on a "*Pro Forma Basis*" as indicated in this Agreement or any other Credit Document, including for purposes of determining the Applicable Margin), Consolidated EBITDA and/or Combined Statutory Surplus (or with any condition(s) and/or test(s) based on Consolidated EBITDA and/or Combined Statutory Surplus that are subject to calculation on a "*Pro Forma Basis*" as indicated in this Agreement or any other Credit Document), that such actual or proposed Specified Transaction shall be deemed to have occurred on, and as of, (I) the first (1<sup>st</sup>) day of the most recently ended Trailing Period, in the case of either of the Financial Covenants set forth in <u>Section</u> <u>8.8(a</u>) or <u>Section</u> <u>8.8(b</u>), or (II) the first (1<sup>st</sup>) day of the most recently ended Fiscal Quarter, in the case of the Financial Covenant set forth in <u>Section</u> <u>8.8(c</u>) (or, in any such case of the foregoing <u>clauses (I</u>) and (<u>II</u>), on, and as of, the first (1<sup>st</sup>) day of such other historical period of time as may be expressly specified in this Agreement or another Credit Document for a specific purpose), and <u>further</u>, the following pro forma adjustments shall be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Asset Sale or Involuntary Disposition, income statement and cash flow statement items (whether positive or negative) attributable to the Property disposed of shall be *excluded* to the extent relating to any period occurring *prior* to the date of such Asset Sale or Involuntary Disposition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Acquisition, income statement items attributable to the Person or Property acquired shall be *included* to the extent relating to any period applicable in such calculations to the extent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) such items are *not* otherwise included in such income statement items for the Credit Parties, Subsidiaries and other Regulated Entities in accordance with GAAP or in accordance with any defined terms set forth in <u>Section</u> <u>1.1</u>; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) such items are supported by financial statements or other information satisfactory to the Administrative Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Indebtedness incurred or assumed by any Credit Party, any Subsidiary, or any other Regulated Entity (including the Person or Property acquired) in connection with such transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall be deemed to have been incurred as of the first (1<sup>st</sup>) day of the applicable period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if such Indebtedness has a floating or formula rate, shall have an implied rate of interest for the applicable period for purposes of this definition determined by utilizing the rate that is, or would be, in effect with respect to such Indebtedness as of the relevant date of determination.

"*<u>Probable Maximum Loss</u>*" shall have the meaning specified and as used by each applicable Insurance Regulatory Authority.

"*<u>Property</u>*" shall mean an interest of any kind in any property or asset, whether real, personal or mixed, and whether tangible or intangible.

"*<u>PTE</u>*" shall mean a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"*<u>QFC</u>*" shall have the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. §–5390(c)(8)(D).

"*<u>QFC Credit Support</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

"*<u>Qualified ECP Guarantor</u>*" shall mean, in respect of any Swap Obligation, each Credit Party that, at the time the Guaranty (or grant of security interest, as applicable) becomes or would become effective with respect to such Swap Obligation, has total assets *exceeding* Ten Million Dollars ($10,000,000) or such other Credit Party as constitutes an "eligible contract participant" under the Commodity Exchange Act and which may cause another Person to qualify as an "eligible contract participant" with respect to such Swap Obligation at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

"*<u>Qualifying Reciprocal Entity</u>*" shall mean, collectively: (a) each of (i) Cajun Underwriters Reciprocal Exchange, and (ii) Manatee Insurance Exchange; and (b) any reciprocal insurance exchange or other similar entity (other than a Regulated Subsidiary or other risk-bearing insurance company Subsidiary) in respect of which a Credit Party whose Equity Interests are pledged as Collateral in accordance with <u>Section</u> <u>7.12(a</u>) is, at all times during the term of this Agreement after the formation of such reciprocal insurance exchange or other similar entity, duly appointed as the attorney-in-fact of such reciprocal insurance exchange pursuant to documentation reasonable acceptable to the Administrative Agent.

"*<u>Qualifying Reinsurer</u>*" shall mean: (a) the Florida Hurricane Catastrophe Fund; (b) any Person (which may include Affiliates of any Credit Party, including Captive Reinsurance Companies) providing reinsurance services with *at least* an "A–" financial strength rating from A.M. Best Company (or any successor in interest thereto); or (c) any Person (which may include Affiliates of any Credit Party, including Captive Reinsurance Companies) providing reinsurance services that has collateralized its obligations to the Regulated Entities at a level consistent with NAIC's requirements for credit on Schedule F of the statutory financial statements of the Regulated Entities.

------

*"<u>Qualifying Swap Provider</u>*" shall mean: (a) any of Regions Bank and its Affiliates; and (b) any Person that (i) at the time it enters into a Swap Agreement with any Credit Party, any Subsidiary or any other Regulated Entity, is a Lender or an Affiliate of a Lender, or (ii) in the case of a Swap Agreement with any Credit Party, any Subsidiary or any other Regulated Entity in effect on or prior to the Closing Date, is, as of the Closing Date or within thirty (30) days thereafter, a Lender or an Affiliate of a Lender, and, in each such case under this <u>clause (b)</u>, shall have provided a Secured Party Designation Notice to the Administrative Agent. For purposes hereof, the term "Lender" shall be deemed to include the Administrative Agent.

. "*<u>Qualifying Treasury Management Bank</u>*" shall mean: (a) any of Regions Bank and its Affiliates; and (b) any Person that (A) at the time it enters into a Treasury Management Agreement, is a Lender or an Affiliate of a Lender, or (B) in the case of a Treasury Management Agreement in effect on or prior to the Closing Date, is, as of the Closing Date or within thirty (30) days thereafter, a Lender or an Affiliate of a Lender, and, in each such case under this <u>clause (b)</u>, shall have provided a Secured Party Designation Notice to the Administrative Agent. For purposes hereof, the term "Lender" shall be deemed to include the Administrative Agent.

"*<u>Real Estate Asset</u>*" shall mean, at any time of determination, any interest (fee, leasehold or otherwise) then owned by any Credit Party, any Subsidiary or any other Regulated Entity in any real property.

"<u>*Recipient*</u>" shall mean (a) the Administrative Agent, (b) the Collateral Agent, (c) any Lender, and (d) the Issuing Bank, as applicable.

"<u>*Refunded Swingline Loans*</u>" shall have the meaning specified for such term in <u>Section 2.2(b)(iii)</u>.

"<u>*Register*</u>" shall have the meaning specified for such term in <u>Section 11.5(c)</u>.

"<u>*Regulated Entity*</u>" shall mean, collectively: (a) each Qualifying Reciprocal Entity; and (b) each Regulated Subsidiary.

"<u>*Regulated Subsidiary*</u>" shall mean: (a) each of (i) Safepoint Insurance Company, and (ii) each Captive Reinsurance Company; and (b) any Domestic Subsidiary (i) that is a risk retention entity subject to regulation by a Governmental Authority and/or required by Applicable Laws to utilize SAP and submit them to a Governmental Authority, and (ii) with respect to which the Administrative Agent has received prior written notification that such Domestic Subsidiary constitutes a Regulated Subsidiary.

"<u>*Reimbursement Date*</u>" shall have the meaning specified for such term in <u>Section 2.3(d)</u>.

"<u>*Related Parties*</u>" shall mean, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"<u>*Release*</u>" shall mean any release, spill, emission, leaking, pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material into the indoor or outdoor environment (including the abandonment or disposal of any barrels, containers or other closed receptacles containing any Hazardous Material), including the movement of any Hazardous Material through the air, soil, surface water or groundwater.

------

"*<u>Relevant Governmental Body</u>*" shall mean the Federal Reserve Board and/or the FRBNY, or a committee officially endorsed or convened by the Federal Reserve Board and/or the FRBNY, or any successor thereto.

"*<u>Removal Effective Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.6(b</u>).

"*<u>Required DDTL Lenders</u>*" shall mean, as of any date of determination, *at least* two (2) unaffiliated Lenders (unless there is only one (1) Lender at such time, in which case, such Lender) having Total Credit Exposures of the types described in clauses (a) (*solely* with respect to the Delayed Draw Term Loan) and (c) of the definition of "*Total Credit Exposure*" below, taken together, representing *more than* fifty percent (50.0%) of the *sum of* the Total Credit Exposures of such types of all of the Lenders at such time, taken together; <u>provided</u>, <u>that</u>, the Total Credit Exposure of any Defaulting Lender shall be *excluded* for purposes of making a determination of Required DDTL Lenders.

"*<u>Required Lenders</u>*" shall mean, as of any date of determination, *at least* two (2) unaffiliated Lenders (unless there is only one (1) Lender at such time, in which case, such Lender) having Total Credit Exposures, taken together, representing *more than* fifty percent (50.0%) of the *sum of* the Total Credit Exposures of all of the Lenders at such time, taken together; <u>provided</u>, <u>that</u>, the Total Credit Exposure of any Defaulting Lender shall be *excluded* for purposes of making a determination of Required Lenders.

"*<u>Required Revolving Lenders</u>*" shall mean, as of any date of determination, *at least* two (2) unaffiliated Lenders (unless there is only one (1) Lender at such time, in which case, such Lender) having Total Credit Exposures of the types described in clauses (b) and (d) of the definition of "*Total Credit Exposure*" below, taken together, representing *more than* fifty percent (50.0%) of the *sum of* the Total Credit Exposures of such types of all of the Lenders at such time, taken together; <u>provided</u>, <u>that</u>, the Total Credit Exposure of any Defaulting Lender shall be *excluded* for purposes of making a determination of Required Revolving Lenders.

"*<u>Resignation Effective Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.6(a</u>).

"*<u>Resolution Authority</u>*" shall mean an EEA Resolution Authority, or, with respect to any UK Financial Institution, a UK Resolution Authority.

"*<u>Restricted Payment</u>*" shall mean any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in any Credit Party or Subsidiary, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests, or on account of any return of capital to such Person's stockholders, partners or members (or the equivalent Person thereof), or any setting apart of funds or Property for any of the foregoing (but *not* including, for purposes of clarity, any dividend or other distribution (whether in cash, securities or other Property) made by any Qualifying Reciprocal Entity to any of its policyholders).

"*<u>Returned Reinsurance Investments</u>*" shall mean, with respect to any Investment (the "*<u>original</u> <u>Investment</u>*" for a Returned Reinsurance Investment) made by the Credit Parties in a Captive Reinsurance Company during the treaty period for an applicable reinsurance agreement that is used (or the Net Cash Proceeds of which are used) by such Captive Reinsurance Company to provide cash collateral in connection with such reinsurance agreement, the portion of the Net Cash Proceeds of such original Investment that are returned to the Credit Parties in satisfaction of such original Investment by *not later than* the date that is ninety (90) calendar days after the end of such treaty period.

------

"*<u>Revolver Availability Period</u>*" shall mean the period from, and including, the Closing Date to, but *excluding*, the Revolving Commitment Termination Date.

"*<u>Revolving Commitment</u>*" shall mean, with respect to each Lender, the obligation of such Lender to advance (or to otherwise fund) its respective portion of principal under Revolving Loans from time to time made during the Revolver Availability Period pursuant to <u>Section</u> <u>2.1(a</u>) and to otherwise acquire participations in Letters of Credit and Swingline Loans in accordance with the terms of this Agreement, in an aggregate principal amount advanced (or otherwise funded or acquired) by such Lender *not to exceed* the applicable amount set forth with respect to such Lender as such Lender's "*Revolving Commitment*" on <u>Appendix A</u> (or in the applicable Assignment Agreement pursuant to which such Lender becomes a party to this Agreement after the Second Amendment Effective Date, as applicable) at any time outstanding, subject to any increase(s), adjustment(s) and/or reduction(s) pursuant to the terms and conditions of this Agreement.

"*<u>Revolving Commitment Percentage</u>*" shall mean, with respect to each Lender at any time, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the amount of such Lender's Revolving Commitment (if any) in effect at such time; and (b) the *denominator* of which is the Aggregate Revolving Commitment Amount in effect at such time. The Revolving Commitment Percentages of each Lender as of the Second Amendment Effective Date are set forth on <u>Appendix A</u>.

"*<u>Revolving Commitment Termination Date</u>*" shall mean the *earliest* to occur of: (a) the date that is the fifth (5<sup>th</sup>) anniversary of the Closing Date (or, if such date is *not* a Business Day, the immediately prior Business Day); (b) the date on which the Borrower shall have provided written notice to the Administrative Agent of its election to terminate the Aggregate Revolving Commitments in accordance with <u>Section</u> <u>2.11(b</u>); and (c) the date on which the Aggregate Revolving Commitments shall have been terminated, and/or all amounts outstanding under this Agreement shall have been declared, or automatically have become, due and payable, in each case of the foregoing of this <u>clause (c</u>), pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise).

"*<u>Revolving Credit Exposure</u>*" shall mean, with respect to any Lender at any time, the *sum of*: (a) the aggregate outstanding principal balances of the respective portions of each then outstanding Revolving Loan advanced by such Lender, taken together, at such time; *plus* (b) the aggregate amount of such Lender's participation obligations in respect of Letters of Credit Obligations and Swingline Loans, taken together, at such time.

"*<u>Revolving Loan</u>*" shall mean a Loan made by the Lenders to the Borrower pursuant to <u>Section</u> <u>2.1(a</u>).

"*<u>Revolving Obligations</u>*" shall mean, collectively, the Revolving Loans, the Letter of Credit Obligations, and the Swingline Loans.

"*<u>S&P</u>*" shall mean Standard & Poor's, a Standard & Poor's Financial Services LLC business, together with its successors.

"*<u>Sale and Leaseback Transaction</u>*" shall mean, with respect to any Credit Party, any Subsidiary or any other Regulated Entity, any arrangement, directly or indirectly, with any Person (other than a Credit Party) whereby any such Person(s) shall sell or transfer any Property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such Property or other Property that it intends to use for substantially the same purpose(s) as the Property being sold or transferred.

------

"*<u>SAP</u>*" shall mean the statutory accounting practices prescribed or permitted by the insurance commissioner (or other similar authority) as of the Closing Date in the jurisdiction of incorporation or formation (as applicable) of an applicable Regulated Entity for the preparation of annual statements and other financial reports by insurance companies of the same type as such Regulated Entity.

"*<u>Sanctioned Country</u>*" shall mean (a) a country, a territory, or a government of a country or territory, (b) an agency of the government of a country or a territory, or (c) an organization directly or indirectly owned or controlled by a country, a territory or its government, in each case of the foregoing <u>clauses (a</u>) through (<u>c</u>), that is subject to Sanctions.

"*<u>Sanctioned Person</u>*" shall mean: (a) a Person named on the list of "Specially Designated Nationals" or any other Sanctions related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union or any European Union member state; (b) any Person operating, organized or resident in a Sanctioned Country; or (c) any Person owned or controlled by any such Person or Persons described in the foregoing <u>clauses (a</u>) or (<u>b</u>).

"*<u>Sanctions</u>*" shall mean economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by: (a) the U.S. government, including those administered by OFAC or the U.S. Department of State; (b) the United Nations Security Council; (c) the European Union; (d) any European Union member state; (e) His Majesty's Treasury of the United Kingdom; or (f) any other relevant sanctions authority.

"*<u>SEC</u>*" shall mean the United States Securities and Exchange Commission.

"*<u>Second Amendment</u>*" shall mean that certain Second Amendment to Credit Agreement, dated as of the Second Amendment Effective Date, by and among the Credit Parties, the Lenders party thereto (including the Swingline Lender), the Issuing Bank, the Collateral Agent and the Administrative Agent.

"*<u>Second Amendment Effective Date</u>*" shall mean May 30, 2025.

"*<u>Secured Party Designation Notice</u>*" shall mean a notice in the form of <u>Exhibit 1.1</u> (or other writing in form and substance satisfactory to the Administrative Agent) from a Qualifying Swap Provider or a Qualifying Treasury Management Bank to the Administrative Agent that it holds Obligations entitled to share in the guaranties and collateral interests provided herein in respect of a Secured Swap Agreement or Secured Treasury Management Agreement, as appropriate.

"*<u>Secured Swap Agreement</u>*" shall mean any Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and a Qualifying Swap Provider, on the other hand. For the avoidance of doubt, a holder of Obligations in respect of a Secured Swap Agreement shall be subject to the provisions of <u>Section</u> <u>9.3</u> and <u>Section</u> <u>10.10</u>.

"*<u>Secured Swap Obligations</u>*" shall mean all obligations owing to a Qualifying Swap Provider in connection with any Secured Swap Agreement including any and all cancellations, buy backs, reversals, terminations or assignments of any Secured Swap Agreement, any and all renewals, extensions and modifications of any Secured Swap Agreement and any and all substitutions for any Secured Swap Agreement, including all fees, costs, expenses and indemnities, whether primary, secondary, direct, fixed or otherwise (including any monetary obligations incurred during the pendency of any bankruptcy or insolvency proceedings, regardless of whether allowed or allowable in such bankruptcy or insolvency proceedings), in each case, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising.

------

"*<u>Secured Treasury Management Agreement</u>*" shall mean any Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and a Qualifying Treasury Management Bank, on the other hand. For the avoidance of doubt, a holder of Obligations in respect of a Secured Treasury Management Agreement shall be subject to the provisions of <u>Section</u> <u>9.3</u> and <u>Section</u> <u>10.10</u>.

"*<u>Secured Treasury Management Obligations</u>*" shall mean all obligations owing to a Qualifying Treasury Management Bank under a Secured Treasury Management Agreement, including all fees, costs, expenses and indemnities, whether primary, secondary, direct, fixed or otherwise (including any monetary obligations incurred during the pendency of any bankruptcy or insolvency proceedings, regardless of whether allowed or allowable in such bankruptcy or insolvency proceedings), in each case, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising.

"*<u>Securities</u>*" shall mean any stock, shares, partnership interests, limited liability company interests, voting trust certificates, certificates of interest or participation in any profit-sharing agreement or arrangement (*e*.*g*., stock appreciation rights), options, warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as "securities" or any certificates of interest, shares or participations in temporary or interim certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing.

"*<u>Security Agreement</u>*" shall mean that certain Security and Pledge Agreement, dated as of the Closing Date, given by the Credit Parties, as obligors, to the Collateral Agent, for the benefit of the holders of the Obligations, and any other pledge agreements or security agreements that may be given by any Person pursuant to the terms hereof, in each case, as the same may be amended, restated, amended and restated, supplemented, replaced, and/or otherwise modified in writing from time to time.

"*<u>Securitization Transaction</u>*" shall mean any financing or factoring or similar transaction (or series of such transactions) entered by any Credit Party, any Subsidiary or any other Regulated Entity pursuant to which any such Person(s) may sell, convey or otherwise transfer, or grant a security interest in, accounts, payments, receivables, rights to future lease payments or residuals or similar rights to payment (the "*<u>Securitization Receivables</u>*") to a special purpose subsidiary or affiliate (a "*<u>Securitization</u> <u>Subsidiary</u>*") or any other Person.

"*<u>SOFR</u>*" shall mean, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator's Website on the immediately succeeding U.S. Government Securities Business Day; <u>provided</u>, <u>that</u>, if such published rate is subsequently corrected and provided by the SOFR Administrator, or on the SOFR Administrator's Website, within the *longer* of (i) one (1) hour of the time when such rate was first published, and (ii) the republication cut-off time for SOFR, if any, as specified by the SOFR Administrator in the applicable SOFR benchmark methodology, then "*SOFR*" shall instead mean such secured overnight financing rate for such Business Day subject to those corrections.

"*<u>SOFR Administrator</u>*" shall mean the FRBNY (or any successor administrator of the secured overnight financing rate).

"*<u>SOFR Administrator</u>*<u>'</u>*<u>s Website</u>*" shall mean the website of the FRBNY accessible at (as of the Closing Date) <u>https://www.newyorkfed.org</u>, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

------

"*<u>SOFR</u>*<u>-</u>*<u>Based Rate</u>*" shall mean each of Term SOFR for any Interest Period and Daily Simple SOFR.

"*<u>SOFR Borrowing</u>*" shall mean a Borrowing, the Loans in respect of which bear interest at a rate determined by reference to Term SOFR for any available Interest Period, other than pursuant to clause (c) of the definition of "*Base Rate*" above.

"*<u>SOFR Loan</u>*" shall mean a Loan bearing interest at a rate determined by reference to Term SOFR for any available Interest Period, other than pursuant to clause (c) of the definition of "*Base Rate*" above.

"*<u>SOFR Reference Rate</u>*" shall mean the rate per annum determined by the Administrative Agent as the forward-looking term rate based on SOFR for an applicable tenor.

"*<u>Solvent</u>*" or "*<u>Solvency</u>*" shall mean, with respect to any Person as of a particular date, that on such date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such Person is able to pay its debts and other liabilities, contingent obligations and other commitments as they mature in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Person does *not* intend to, and does *not* believe that it will, incur debts or liabilities beyond such Person's ability to pay as such debts and liabilities mature in their ordinary course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such Person is *not* engaged in a business or a transaction, and is *not* about to engage in a business or a transaction, for which such Person's Property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which such Person is engaged or is to engage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the fair value of the Property of such Person is *greater than* the total amount of liabilities, including, without limitation, contingent liabilities, of such Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the present fair salable value of the Property of such Person is *not less than* the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured.

In computing the amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

"*<u>Specified Credit Party</u>*" shall mean any Credit Party that is, at the time on which the Guaranty (or grant of security interest, as applicable) becomes effective with respect to a Swap Obligation, a corporation, partnership, proprietorship, organization, trust or other entity that would *not* be an "eligible contract participant" under the Commodity Exchange Act at such time but for the effect of <u>Section</u> <u>4.8</u>.

"*<u>Specified Equity Contribution</u>*" shall have the meaning provided for such term in <u>Section</u> <u>9.4(a</u>).

"*<u>Specified Transaction</u>*" shall mean any Asset Sale, any Involuntary Disposition, any Acquisition, the making of any Investment, the declaration and/or making of any Restricted Payment, the establishment and/or incurrence of any Incremental Facility, any Debt Transaction, any Equity Transaction or any other contribution of equity capital (whether in cash or otherwise), any Sale and Leaseback Transaction, any Securitization Transaction, and/or any other transaction that is subject to calculation on a "*Pro Forma Basis*" as indicated in this Agreement or any other Credit Document (or in any other agreement, document, certificate and/or instrument executed and/or delivered in connection herewith or therewith).

------

"*<u>Statutory Surplus</u>*" shall mean, as of any date of determination for any Regulated Entity, the total capital and surplus of such Regulated Entity, determined in accordance with SAP.

"*<u>Subsidiary</u>*" shall mean, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which *more than* fifty percent (50.0%) of the Voting Stock is at the time owned or controlled, directly or indirectly, by that Person, or the accounts of which would be consolidated with those of such Person in its consolidated financial statements in accordance with GAAP, if such statements were prepared as of such date, or one or more of the other Subsidiaries of that Person or a combination thereof; <u>provided</u>, <u>that</u>, (i) in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a "qualifying share" of the former Person shall be deemed to be outstanding, and (ii) notwithstanding anything to the contrary in the foregoing of this definition, each Regulated Subsidiary shall be deemed to be a Subsidiary of the Borrower. Unless otherwise expressly stated, all references to "Subsidiary" in this Agreement and each other Credit Document shall refer to a Subsidiary of the Borrower (including, for purposes of clarity, each Regulated Subsidiary).

"*<u>Subsidiary Determination Date</u>*" shall mean any date on which financial statements and/or any related Compliance Certificate are, or are required to be, delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>).

"*<u>Supported QFC</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

"*<u>Swap Agreement</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, currency swap transactions, cross-currency rate swap transactions, currency options, cap transactions, floor transactions, collar transactions, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options or warrants to enter into any of the foregoing), whether or not any such transaction is governed by, or otherwise subject to, any master agreement or any netting agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any and all transactions or arrangements of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement (or similar documentation) published from time to time by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such agreement or documentation, together with any related schedules, a "*<u>Master Agreement</u>*"), including any such obligations or liabilities under any Master Agreement.

"*<u>Swap Obligation</u>*" shall mean, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a "swap" within the meaning of Section 1a(47) of the Commodity Exchange Act.

------

"*<u>Swap Termination Value</u>*" shall mean, in respect of any one or more Swap Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Agreements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any date on or after the date such Swap Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any date prior to the date referenced in <u>clause (a</u>), the amount(s) determined as the mark-to-market value(s) for such Swap Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Agreements (which may include a Lender or any Affiliate of a Lender).

"*<u>Swingline Lender</u>*" shall mean Regions Bank in its capacity as Swingline Lender hereunder, together with its permitted successors and assigns in such capacity.

"*<u>Swingline Loan</u>*" shall mean a Loan made by the Swingline Lender to the Borrower pursuant to <u>Section</u> <u>2.2</u>.

"*<u>Swingline Rate</u>*" shall mean the Base Rate *plus* the Applicable Margin applicable to Base Rate Loans (or, with respect to any Swingline Loan advanced pursuant to an Auto Borrow Agreement, such other rate as separately agreed in writing between the Borrower and the Swingline Lender).

"*<u>Swingline Sublimit</u>*" shall mean, as of any date of determination, the *lesser* of: (a) Four Million Dollars ($4,000,000); and (b) the aggregate unused amount of the Revolving Commitments then in effect.

"*<u>Synthetic Lease</u>*" shall mean a lease transaction under which the parties intend that: (a) the lease will be treated as an "operating lease" by the lessee pursuant to Statement of Financial Accounting Standards No. 13, as amended; and (b) the lessee will be entitled to various tax and other benefits ordinarily available to owners (as opposed to lessees) of like Property.

"*<u>Taxes</u>*" shall mean all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"*<u>Term Loans</u>*" shall mean, collectively, the Term Loan A, the Delayed Draw Term Loan, and any Incremental Term Loans.

"*<u>Term Loan A</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.1(b</u>).

"*<u>Term Loan A Commitment</u>*" shall mean, with respect to each Lender as of the Closing Date, the obligation of such Lender to advance its respective portion of principal under the Term Loan A on the Closing Date pursuant to <u>Section</u> <u>2.1(b</u>), in an aggregate original principal amount advanced by such Lender on the Closing Date equal to the applicable amount that was set forth with respect to such Lender as such Lender's "*Term Loan A Commitment*" on <u>Appendix A</u> (as such Appendix was in effect on the Closing Date).

"*<u>Term Loan A Commitment Percentage</u>*" shall mean, with respect to each Lender at any time, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the *sum of* (i) the amount of such Lender's Term Loan A Commitment (if any) in effect at such time, *plus* (ii) the aggregate principal balance of the portion of the Term Loan A advanced by such Lender that is outstanding at such time; and (b) the *denominator* of which is the *sum of* (i) the Aggregate Term Loan A Commitment Amount in effect at such time, *plus* (ii) the aggregate outstanding principal balance of the Term Loan A at such time. The Term Loan A Commitment Percentages of each Lender as of the Closing Date and as of the Second Amendment Effective Date are set forth on <u>Appendix A</u>.

------

"*<u>Term Loan Commitments</u>*" shall mean, collectively, the Term Loan A Commitments, the DDTL Commitments and any Incremental Term Loan Commitments.

"*<u>Term SOFR</u>*" means, as of any date of determination, for any calculations with respect to a SOFR Loan and/or a SOFR Borrowing and/or any determination of the Base Rate pursuant to clause (c) of the definition of "*Base Rate*" above, the rate per annum equal to the SOFR Reference Rate for a forward-looking tenor comparable to the then applicable or selected (as applicable) Interest Period for such SOFR Loan or SOFR Borrowing (or for a forward-looking one (1) month tenor, in the case of any determination of the Base Rate pursuant to clause (c) of the definition of "*Base Rate*" above), determined as of the date (such date, a "*<u>Periodic Term SOFR Determination Date</u>*") that is two (2) U.S. Government Securities Business Days *prior* to the first (1<sup>st</sup>) day of such Interest Period, as such rate is published by the Term SOFR Administrator on such Periodic Term SOFR Determination Date; <u>provided</u>, <u>that</u>, (a) if, as of 11:00 a.m. (New York City time) on any Periodic Term SOFR Determination Date, the SOFR Reference Rate for the applicable tenor has *not* been published by the Term SOFR Administrator, then "*Term SOFR*" shall instead mean the SOFR Reference Rate for such applicable tenor as published by the Term SOFR Administrator on the first (1<sup>st</sup>) preceding U.S. Government Securities Business Day for which such SOFR Reference Rate for such applicable tenor was published by the Term SOFR Administrator, subject to <u>Section</u> <u>3.1</u>, and (b) if, at any time, Term SOFR (determined in accordance with the foregoing of this definition of "*Term SOFR*", including in accordance with the foregoing <u>clause (a</u>) of this proviso) is *less than* the Floor, then Term SOFR shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents. Any change(s) in Term SOFR for any Interest Period due to any change(s) in the SOFR Reference Rate for a comparable tenor shall be effective from, and including, the effective date of any such change(s) in such SOFR Reference Rate, without further notice to any Credit Party, any Subsidiary, any other Regulated Entity, any other party to this Agreement or any other Credit Document, or any other Person.

"*<u>Term SOFR Administrator</u>*" means, the CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the SOFR Reference Rate for any applicable tenor selected by the Administrative Agent in its reasonable discretion).

"*<u>Threshold Amount</u>*" shall mean One Million Dollars ($1,000,000).

"*<u>Title Policy</u>*" shall have the meaning specified for such term in <u>Section</u> <u>7.11(b)(iii</u>).

"*<u>Total Credit Exposure</u>*" shall mean, with respect to any Lender at any time, the *sum of*: (a) the *sum of* the aggregate outstanding principal balances of the respective portions of each then outstanding Term Loan advanced by such Lender, taken together, at such time; *plus* (b) the unused amount of such Lender's respective Revolving Commitment in effect at such time; *plus* (c) the unused amount of such Lender's respective DDTL Commitment in effect at such time; *plus* (d) such Lender's Revolving Credit Exposure at such time.

"*<u>Trailing Period</u>*" shall mean, as of any date of determination, the period consisting of the four (4) consecutive full Fiscal Quarters most recently ended as of such date of determination.

"*<u>Treasury Management Agreement</u>*" shall mean any agreement governing the provision of treasury or cash management services, including deposit accounts, funds transfer, automated clearinghouse, commercial credit cards, purchasing cards, cardless e-payable services, debit cards, stored value cards, zero balance accounts, returned check concentration, controlled disbursement, lockbox, account reconciliation and reporting and trade finance services.

------

"*<u>Type</u>*", when used in reference to a Loan or Borrowing, shall refer to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to Term SOFR for any Interest Period (other than pursuant to clause (c) of the definition of "*Base Rate*" above) or the Base Rate (including, for the avoidance of doubt, pursuant to clause (c) of the definition of "*Base Rate*" above).

"*<u>UCC</u>*" shall mean the Uniform Commercial Code (or any similar or equivalent legislation) as in effect in the State of New York (or any other applicable jurisdiction, as the context may require).

"*<u>UK Financial Institution</u>*" shall mean any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"*<u>UK Resolution Authority</u>*" shall mean the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"*<u>United States</u>*" or "*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u>" shall mean the United States of America.

"*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Government Securities Business Day</u>*" shall mean any day, other than: (a) a Saturday or a Sunday; or (b) any day on which SIFMA recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in U.S. government securities.

"*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Person</u>*" shall mean any Person that is a "United States person" as defined in Section 7701(a)(30) of the Internal Revenue Code.

"*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Special Resolution Regime</u>*" shall have the meaning specified for such term in <u>Section</u><u>11.23</u>.

"*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Tax Compliance Certificate</u>*" shall have the meaning specified for such term in <u>Section</u><u>3.3(f</u>).

"*<u>Unadjusted Benchmark Replacement</u>*" shall mean the applicable Benchmark Replacement without giving effect to the Benchmark Replacement Adjustment.

"*<u>Voting Stock</u>*" shall mean, with respect to any Person, Equity Interests issued by such Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even though the right so to vote has been suspended by the happening of such a contingency.

"*<u>Weighted Average Life</u>*" shall mean, when applied to any Indebtedness as of any date of determination, the number of years obtained by *dividing*: (a) the *sum of* the products obtained by *multiplying* (i) the amount of each then-remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof, *by* (ii) the number of years (calculated to the nearest one-twelfth (1/12)) that will elapse between such date and the making of such payment; *by* (b) the then-outstanding principal amount of such Indebtedness.

------

"*<u>Wholly Owned Subsidiary</u>*" shall mean, as of any date of determination, with respect to any Person, any Subsidiary of such Person of which all of the Equity Interests (other than, in the case of a Foreign Subsidiary, Equity Interests in such Foreign Subsidiary issued to (i) qualify directors, to the extent required by Applicable Law, or (ii) satisfy other requirements of Applicable Law with respect to the ownership of Equity Interests in such Foreign Subsidiary) are, as of such date, directly or indirectly owned and controlled by such Person or by one (1) or more other Wholly Owned Subsidiaries of such Person (or by a combination of the foregoing). Unless otherwise expressly stated, all references to "Wholly Owned Subsidiary" in this Agreement and each other Credit Document shall refer to a Wholly Owned Subsidiary of the Borrower (including, for purposes of clarity, each Regulated Subsidiary that is a Wholly Owned Subsidiary of the Borrower).

"*<u>Withholding Agent</u>*" shall mean any Credit Party and the Administrative Agent.

"*<u>Write</u>*<u>-</u>*<u>Down and Conversion Powers</u>*" shall mean: (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule; and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution, or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that Person or any other Person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it, or to suspend any obligation in respect of that liability, or any of the powers under that Bail-In legislation that are related or ancillary to any of those powers.

Section 1.2 <u>Accounting Terms</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise expressly provided in this Agreement or any other Credit Document, all accounting terms used in this Agreement and the other Credit Documents shall be interpreted, all accounting determinations under this Agreement and the other Credit Documents shall be made, and all financial statements required to be delivered under this Agreement and the other Credit Documents shall be prepared, in each case of the foregoing, in accordance with GAAP or SAP (as applicable), as in effect from time to time, applied on a basis consistent with the most recent consolidated financial statements of the Credit Parties and Subsidiaries delivered pursuant to <u>Section</u> <u>7.1(b</u>) (or, if, at any time, no such financial statements have been delivered pursuant to <u>Section</u> <u>7.1(b</u>), then on a basis consistent with the Annual Financial Statements); <u>provided</u>, <u>that</u>, if the Borrower notifies the Administrative Agent that the Borrower wishes to amend any Financial Covenant to eliminate the effect of any change(s) in GAAP or SAP (as applicable) on the operation of such Financial Covenant (or, if the Administrative Agent notifies the Borrower that the Required Lenders wish to amend <u>Section</u> <u>8.8</u> for such purpose), then the Credit Parties' compliance with such Financial Covenant shall be determined on the basis of GAAP or SAP (as applicable) as in effect on the date immediately *prior* to the date on which the relevant change(s) in GAAP or SAP (as applicable) became effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Borrower and the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, at any time, any change in GAAP or SAP, or in the consistent application thereof, would affect the computation of any Financial Covenant or any other requirement set forth in any Credit Document, and either the Borrower or the Required Lenders shall object in writing to determining compliance based on such change, then the Lenders and the Borrower shall negotiate in good faith to amend such Financial Covenant, other requirement or applicable defined term(s) to preserve the original intent thereof in light of such change to GAAP or SAP (as applicable), <u>provided</u>, <u>that</u>, until so amended such computations shall continue to be made on a basis consistent with the most recent financial statements delivered pursuant to <u>Section</u> <u>7.1</u> as to which no such objection has been made.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in the foregoing or elsewhere in this Agreement or any other Credit Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all terms of an accounting or financial nature used in this Agreement or any other Credit Document shall be construed, and all computations of amounts and ratios referred to in this Agreement or any other Credit Document shall be made, in each case of the foregoing, without giving effect to any election under Accounting Standards Codification Section 825–10 (or any other Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of any Credit Party, any Subsidiary or any other Regulated Entity at "fair value" (as defined therein); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for purposes of determining compliance with any covenant (including the computation of any Financial Covenant) set forth in this Agreement or any other Credit Document, Indebtedness of the Credit Parties, Subsidiaries and other Regulated Entities shall be deemed to be carried at one hundred percent (100.0%) of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470–20 on financial liabilities shall be disregarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary in the foregoing, the parties hereto acknowledge and agree that (A) all calculations in accordance with <u>Section</u> <u>8.8</u> of the Financial Covenants (but *not* including, for purposes of clarity, the testing of any availability, basket or other condition set forth in any Article or Section of this Agreement or any other Credit Document other than in <u>Section</u> <u>8.8</u> that requires, by its terms, that any Financial Covenant measurement(s) be calculated on a Pro Forma Basis), and (B) all calculations of the Consolidated Leverage Ratio for purposes of determining the Applicable Margin, in each case of the foregoing <u>clauses (c)(A</u>) and (<u>c)(B</u>), shall be made on a Pro Forma Basis *solely* with respect to (i) any Asset Sale of all of the outstanding Equity Interests in, or all, or substantially all, of the Property of, any Credit Party, any Subsidiary or any other Regulated Entity, (ii) any Asset Sale of a line of business or division of any Credit Party, any Subsidiary or any other Regulated Entity, or (iii) any Acquisition (including any related incurrence or assumption of Indebtedness), in each case of the foregoing <u>clauses (c)(i</u>) through (<u>c)(iii</u>), consummated during the applicable period of measurement, and no other Specified Transactions consummated during the applicable period of measurement shall be given effect on a Pro Forma Basis for purposes of such specified calculations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For purposes of determining compliance with any applicable basket permission(s) set forth in <u>Article 8</u> with respect to any item incurred, granted, paid, invested, made or disposed of (as applicable) in reliance on such basket permission(s) that is denominated in any currency other than Dollars, the amount of such item shall be deemed to be the Dollar-equivalent amount (as determined by the Administrative Agent) of the amount (denominated in a currency other than Dollars) of such item. In the event that any basket permission set forth in <u>Article 8</u> is exceeded *solely* as a result of fluctuations, after the last time that such basket permission was utilized or relied on by a Credit Party, Subsidiary or other Regulated Entity, between the amount (denominated in a currency other than Dollars) of any item incurred, granted, paid, invested, made or disposed of (as applicable) measured as of such time, on the one hand, and the Dollar-equivalent amount thereof (as determined by the Administrative Agent), on the other hand, then such basket permission shall *not* be deemed to have been exceeded *solely* as a result of such currency exchange rate fluctuations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything to the contrary in this Agreement or any other Credit Document, any calculation of "extraordinary gains", "extraordinary losses" and/or "extraordinary charges" shall, in each case for all purposes of this Agreement and the other Credit Documents (including, without limitation, for any determination of Consolidated EBITDA or Consolidated Net Income), be determined by reference to GAAP as in effect immediately *prior* to giving effect to FASB's Accounting Standards Update No. 2015–01.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event that any Lien, any Indebtedness (whether tested at the time of initial incurrence, upon application of all, or any portion, of the proceeds thereof, or otherwise), any Asset Sale or other disposition, any Acquisition or other Investment, any Restricted Payment, any Affiliate transaction, any restrictive agreement and/or any prepayment of Indebtedness (as applicable), or any other transaction that is subject to any of the negative covenant restrictions set forth in <u>Article 8</u>, meets the criteria of one (1) or more of the categories of transactions then expressly permitted pursuant to any clause of the applicable Section(s) of <u>Article 8</u>, then such transaction (or portion thereof, as applicable) at any time shall be permitted under one (1) or more of such clauses of such Section(s) as the Borrower may determine in its sole discretion at such time (unless otherwise expressly and specifically restricted pursuant to the terms of this Agreement), and, for the avoidance of doubt, unless otherwise expressly and specifically restricted pursuant to the terms of this Agreement, the Borrower may subsequently reclassify or divide (as applicable) such transaction (or portion thereof, as applicable) among such permitting clauses of such applicable Section(s) and shall only be required, at any given time, to count such transaction (or portion thereof, as applicable) as permitted in reliance on one (1) of such permitting clauses of such applicable Section(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) For purposes of determining the amount of any Earn Out Obligations and/or other deferred purchase price obligations of any Person for purposes of this Agreement and the other Credit Documents, the amount of such Earn Out Obligations and/or other deferred purchase price obligations shall be deemed to be the aggregate liability in respect thereof required to be reflected as a liability on the balance sheet of such Person in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything to the contrary in this Agreement or any other Credit Document, all liability amounts shall be determined *excluding* any liability relating to any operating lease, all asset amounts shall be determined *excluding* any right-of-use assets relating to any operating lease, all amortization amounts shall be determined *excluding* any amortization of a right-of-use asset relating to any operating lease, and all interest amounts shall be determined *excluding* any deemed interest comprising a portion of fixed rent payable under any operating lease, in each case of the foregoing, to the extent that such liability, asset, amortization or interest pertains to an operating lease under which the covenantor or a member of its consolidated group is the lessee and would *not* have been accounted for as such under GAAP as in effect on December 31, 2015.

Section 1.3 <u>Rules of Interpretation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Terms Generally</u>. The definitions of terms used in this Agreement and the other Credit Documents shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "*include*", "*includes*" and "*including*" shall be deemed to be followed by the phrase ", *without limitation*,". The word "*will*" shall be construed to have the same meaning and effect as the word "*shall*". In the computation of periods of time from a specified date to a later specified date, unless otherwise specified, the word "*from*" shall mean "*from*, *and including*," and the word "*to*" shall mean "*to*, *but excluding*,". In addition, unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any definition of, or reference to, any agreement, instrument or other document (including any Organizational Document) shall be construed as referring to such agreement, instrument or other document as it was originally executed, or as it may from time to time be amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing, as applicable (subject to any restrictions on such amendments, restatements, amendments and restatements, supplements, increases, extensions, refinancings, renewals, replacements, and/or other written modifications as set forth in this Agreement or any other Credit Document);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any reference in any Credit Document to any Person shall be construed to include such Person's successors and permitted assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the words "*hereof*", "*herein*" and "*hereunder*", and words of similar import, when used in any Credit Document, shall be construed to refer to such Credit Document as a whole, and *not* to any particular provision hereof or thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all references in any Credit Document to Articles, Sections, Appendices, Exhibits and/or Schedules shall be construed to refer to Articles, Sections, Appendices, Exhibits and/or Schedules, as applicable, to or of the Credit Document in which such reference appears;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all references contained in a Section, clause, sub-clause or definition to clauses, sub-clauses or definitions occurring "above" or "below", or to any "foregoing", "preceding" or "proceeding" clauses, sub-clauses or definitions, in each case of the foregoing, shall refer to the applicable clause or sub-clause of, or definition set forth in, such Section or such clause, sub-clause or definition, as the case may be, and all general references contained in a Section, or a clause or sub-clause thereof, to "the above" or "the below" shall refer, collectively, to all provisions of such Section, clause or sub-clause, as applicable, occurring prior to or after, as applicable, the occurrence of such general reference;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all references herein to sums denominated in Dollars or dollars, or with the symbol "$", refer to the lawful currency of the United States, unless such reference specifically identifies another currency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any reference in any Credit Document to a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term shall be deemed to apply to a division of or by a limited liability company or a limited partnership, or an allocation of assets to a series of a limited liability company or a limited partnership (or the unwinding of such a division or allocation), as if it were a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term, as applicable, to, of, or with a separate Person, and any division of a limited liability company or a limited partnership shall constitute a separate Person hereunder or thereunder (and each division of any limited liability company or limited partnership that is a subsidiary, joint venture, or any other like term shall also constitute such a Person);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any definition of, or reference to, any Applicable Law shall include all statutory and regulatory rules, regulations, orders and provisions consolidating, amending, replacing, and/or interpreting such Applicable Law, and any definition of, or reference to, any Applicable Law shall, unless otherwise expressly specified, refer to such Applicable Law as amended, modified, and/or supplemented from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the words "*asset*" and "*property*" shall be construed to have the same meaning and effect, and to refer to any and all real and personal, tangible and intangible Properties, including, without limitation, cash, securities, accounts and contract rights;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) unless otherwise expressly specified, all references in this Agreement or any other Credit Document to times of day shall be references to Eastern time (daylight or standard, as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) the terms "*lease*" and "*license*" shall include any sub-lease and/or any sub-license, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) all terms (whether or not capitalized in occurrence) used in this Agreement and the other Credit Documents that are *not* specifically defined in this Agreement or any other Credit Document, or under GAAP, but are defined in the UCC, shall have the respective meanings provided for such terms in the UCC, with the term "*instrument*" having the meaning provided for such term in Article 9 of the UCC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) (A) whenever the phrase "appraised value" (or words of like or similar import) is used in this Agreement or any other Credit Document with respect to any Real Estate Asset, such "appraised value" (or words of like or similar import) shall mean the value of such Real Estate Asset determined using an Appraisal; and (B) whenever the phrases "updated Appraisal", "updated appraisal" or "an update thereof" (or words of like or similar import) relating to an Appraisal or other appraisal are used in this Agreement or any other Credit Document, any such "update" shall be in form and substance, and from a third-party provider, reasonably acceptable to the Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) whenever the phrase "*to the knowledge of*" (or words of like or similar import) relating to the knowledge of any Credit Party, any Subsidiary or any other Regulated Entity is used in this Agreement or any other Credit Document, such phrase shall mean, and refer to, the actual knowledge of any Authorized Officer of such Person(s) after due inquiry; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) for purposes of clarity and unless the context expressly provides otherwise, any references in this Agreement or any other Credit Document to a Regulated Entity that is *not* a Subsidiary (or to a Regulated Entity that is *not* a Regulated Subsidiary) shall be, and are intended as, a reference to one (1) or more Qualifying Reciprocal Entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Letter of Credit Amounts</u>. Unless otherwise expressly specified in this Agreement or another Credit Document, the amount of a Letter of Credit, at any time, shall be deemed to be the stated amount of such Letter of Credit in effect at such time (after giving effect to any actual permanent reductions in the stated amount of such Letter of Credit pursuant to the terms of such Letter of Credit); <u>provided</u>, <u>that</u>, with respect to any Letter of Credit that, by its terms or the terms of any other Issuer Document related thereto, provides for one (1) or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit, after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Section Headings</u>. Section headings in this Agreement and the other Credit Documents are included herein or therein (as applicable) for convenience of reference only and shall *not* constitute a part hereof or thereof for any other purpose, or otherwise be given any substantive effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Informed Negotiation</u>. This Agreement and the other Credit Documents are the result of negotiations among, and have been reviewed by counsel to, among others, the Agent and each of the Credit Parties, and this Agreement, and each of the other Credit Documents, are the product of discussions and negotiations among such parties. Accordingly, this Agreement and the other Credit Documents are *not* intended to be construed against the Agent, the Issuing Bank or any of the Lenders merely on account of any such Person's (or its counsel's) involvement in the preparation and/or closing of this Agreement and/or any other Credit Document.

------

Section 1.4 <u>Rules of Interpretation with Respect to Regulated Entities</u>. Should an applicable Governmental Authority notify any Credit Party or Subsidiary of a potentially actionable issue or concern related to control of a Regulated Entity or determine that all or any of the Lenders, the Administrative Agent and/or the Collateral Agent is or are acting as control persons, as defined or used under the Florida Insurance Code or other Applicable Laws, of any Regulated Entity due to one or more provisions of this Agreement, the parties agree to promptly further negotiate in good faith to modify this Agreement such that none of the Lenders, the Administrative Agent and the Collateral Agent are considered by such Governmental Authority to be control persons of the Regulated Entities and to effect the original intent of the parties as closely as possible in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

Section 1.5 <u>Classifications of Loans and Borrowings</u>. For purposes of this Agreement and the other Credit Documents, Loans may be classified and referred to by Class (*e*.*g*., a "*Revolving Loan*", the "*Term Loan A*" or the "*Delayed Draw Term Loan*"), by Type (*e*.*g*., a "*SOFR Loan*" or a "*Base Rate Loan*"), or by Class and Type (*e*.*g*., a "*Revolving SOFR Loan*"). Borrowings also may be classified and referred to by Class (*e*.*g*., a "*Revolving Borrowing*"), by Type (*e*.*g*., a "*SOFR Borrowing*" or a "*Base Rate Borrowing*"), or by Class and Type (*e*.*g*., a "*Revolving SOFR Borrowing*").

Section 1.6 <u>Cashless Rollovers</u>. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, to the extent that any Lender agrees to extend the maturity date of, or replaces, renews and/or refinances any of, its then-existing Loans pursuant to any Borrowing under an Incremental Facility and/or any loans incurred under a new credit facility (including, without limitation, a new credit facility documented as an amendment and restatement of this Agreement), in each case of the foregoing, to the extent that such extension, replacement, renewal and/or refinancing is effected by means of a "cashless roll" by such Lender, then such extension, replacement, renewal and/or refinancing shall be deemed to comply with any requirement(s) under this Agreement or any other Credit Document that any related payment(s) to be made in effectuating such extension, replacement, renewal and/or refinancing be made "in Dollars", "in immediately available funds", "in cash" or any other similar requirement.

Section 1.7 <u>Interest Rate Disclosure</u>. The Administrative Agent does *not* warrant or accept responsibility for, and shall *not* have any liability whatsoever with respect to: (a) the continuation, administration, submission and/or calculation of, or any other matter related to, any of the Base Rate, the SOFR Reference Rate (for any applicable tenor) and/or any SOFR-Based Rate (for any Interest Period, as applicable), or any component definition used or referred to in, or any rate(s) used or referred to in, the definitions of any of the foregoing in <u>Section</u> <u>1.1</u>, or for any alternative, successor or replacement rate thereto (including, without limitation, any Benchmark Replacement), including whether the composition and/or characteristics of any such actual or proposed alternative, successor or replacement rate (including, without limitation, any Benchmark Replacement) is or will be similar to, or produces or will produce the same or substantially equivalent value or economic equivalence of, or has or will have the same or a comparable volume or liquidity as, any of the Base Rate, the SOFR Reference Rate (for any applicable tenor), any SOFR-Based Rate (for any Interest Period, as applicable) and/or any other Benchmark prior to its discontinuance or unavailability; or (b) the effect, implementation and/or composition of any Conforming Changes. The Administrative Agent, together with its Affiliates and other related entities, may engage in transactions that affect the calculation of any of the Base Rate, the SOFR Reference Rate (for any applicable tenor), any SOFR-Based Rate (for any Interest Period, as applicable), any alternative, successor or replacement rate of any of the foregoing (including, without limitation, any Benchmark Replacement), and/or any relevant adjustments to any of the foregoing, in any such case of the foregoing, in a manner adverse to the Borrower and the other Credit Parties. The Administrative Agent may select

------

information sources or services in its reasonable discretion to ascertain any of the Base Rate, the SOFR Reference Rate (for any applicable tenor), any SOFR-Based Rate (for any Interest Period, as applicable), and/or any other Benchmark, in each case of the foregoing, pursuant to the terms of this Agreement, and the Administrative Agent shall have no liability whatsoever to any Credit Party, any Subsidiary, any other Regulated Entity, any Lender and/or any other Person for damages of any kind, including direct or indirect, special, punitive, incidental and/or consequential damages, costs, losses and/or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or any component thereof) provided by any such information source or service.

**Article 2** 

**<u>LOANS AND LETTERS OF CREDIT</u>** 

Section 2.1 <u>Revolving Loans and Term Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans</u>. Subject to the terms and conditions set forth herein (including the conditions precedent to Borrowing set forth in <u>Section</u> <u>5.2</u>), each of the Lenders hereby severally agrees to advance its respective Revolving Commitment Percentage of revolving loans (each such loan, a "*<u>Revolving Loan</u>*") to the Borrower, in Dollars from time to time during the Revolver Availability Period, in an aggregate principal amount outstanding at any time for each Lender up to, but *not exceeding*, the amount of such Lender's respective Revolving Commitment; <u>provided</u>, <u>that</u>, immediately after giving effect to the Borrowing of any Revolving Loan, (i) the Aggregate Revolving Credit Exposure shall *not exceed* the Aggregate Revolving Commitment Amount, and (ii) the Revolving Credit Exposure of any Lender shall *not exceed* the amount of such Lender's respective Revolving Commitment. Revolving Loans may be disbursed from time to time during the Revolver Availability Period, and may be outstanding from time to time, as Base Rate Loans or SOFR Loans (or a combination thereof), as the Borrower may request in accordance with this Agreement. Revolving Loans borrowed pursuant to this clause (a) may be repaid, in whole or in part, and re-borrowed from time to time during the Revolver Availability Period without premium or penalty (subject to <u>Section</u> <u>3.1(c</u>)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term Loan A</u>. Each of the Lenders severally agreed to advance their respective Term Loan A Commitment Percentages of a term loan (the "*<u>Term Loan A</u>*") to the Borrower, in Dollars in a single disbursement on the Closing Date, in an original principal amount for each Lender equal to the amount of such Lender's respective Term Loan A Commitment in effect on the Closing Date. The Term Loan A was disbursed on the Closing Date, and may be outstanding from time to time thereafter, as Base Rate Loans or SOFR Loans (or a combination thereof), as the Borrower may request in accordance with this Agreement. Amounts repaid on the Term Loan A may *not* be reborrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delayed Draw Term Loan</u>. Subject to the terms and conditions set forth herein (including the conditions precedent to Borrowing set forth in <u>Section</u> <u>5.2</u>), each of the Lenders hereby severally agrees to advance their respective DDTL Commitment Percentage of a delayed draw term loan (the "*<u>Delayed Draw Term Loan</u>*") to the Borrower, in Dollars in up to five (5) separate advances during the DDTL Availability Period, in an aggregate original principal amount for each Lender (for all advances under the Delayed Draw Term Loan, taken together) of *not greater than* the amount of such Lender's respective DDTL Commitment. The Delayed Draw Term Loan may be disbursed from time to time during the DDTL Availability Period, and may be outstanding from time to time during the term of this Agreement, as Base Rate Loans or SOFR Loans (or a combination thereof), as the Borrower may request in accordance with this Agreement. Amounts repaid on the Delayed Draw Term Loan may *not* be reborrowed.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Borrowing Mechanics</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All Term Loans and, except pursuant to <u>Section</u> <u>2.2(b)(iii</u>), all Revolving Loans shall be made in an aggregate minimum amount of Five-Hundred Thousand Dollars ($500,000) and, if greater, in an integral multiple of One-Hundred Thousand Dollars ($100,000) in excess thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Whenever the Borrower desires that the Lenders make a Term Loan or a Revolving Loan, the Borrower shall deliver to the Administrative Agent a fully executed Funding Notice by *no later than* (A) 1:00 p.m. (Eastern time) *at least* three (3) Business Days in advance of the proposed Credit Date, in the case of a SOFR Loan, and (B) 1:00 p.m. (Eastern time) *at least* one (1) Business Day in advance of the proposed Credit Date, in the case of a Base Rate Loan (<u>provided</u>, <u>that</u>, a Funding Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Funding Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed). Except as otherwise provided herein, any Funding Notice for any Loans that are SOFR Loans shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to make a borrowing in accordance therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notice of receipt of each Funding Notice in respect of each Revolving Loan or Term Loan, together with the amount of each Lender's Commitment Percentage of the relevant Class in respect thereof, if any, together with the applicable interest rate, shall be provided by the Administrative Agent to each applicable Lender by telefacsimile with reasonable promptness, but (<u>provided</u>, <u>that</u>, the Administrative Agent shall have received such notice by 1:00 p.m. (Eastern time)) by *not later than* 4:00 p.m. (Eastern time) on the same day as the Administrative Agent's receipt of such notice from the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Each Lender shall make its respective Commitment Percentage of the requested Loan available to the Administrative Agent by *not later than* 11:00 a.m. (Eastern time) on the applicable Credit Date by wire transfer of same day funds in Dollars, at the Administrative Agent's Principal Office. Except as provided herein, upon satisfaction or waiver of the applicable conditions precedent specified herein, the Administrative Agent shall make the proceeds of such Credit Extension available to the Borrower on the applicable Credit Date by causing an amount of same day funds in Dollars equal to the proceeds of all Loans received by the Administrative Agent in connection with the Credit Extension from the Lenders to be credited to the account of the Borrower at the Administrative Agent's Principal Office (or to such other account as may be designated in writing to the Administrative Agent by the Borrower).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Incremental Facilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the terms and conditions set forth in this Agreement, the Borrower shall have the right, from time to time upon *at least* ten (10) Business Days' prior written notice to the Administrative Agent (or such shorter period of notice as the Administrative Agent may agree in its sole discretion), to (I) increase the Aggregate Revolving Commitment Amount, (II) increase the Aggregate Term Loan A Commitment Amount, and/or (III) increase the Aggregate DDTL Commitment Amount, and/or (IV) establish one (1) or more additional term loans of a separate Class, subject, however, in any such case of the foregoing <u>clauses (e)(i)(I</u>) through (<u>e)(i)(IV</u>), to the satisfaction of each of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the aggregate original principal or committed amount of all such Incremental Facilities, taken together, shall *not exceed* the Incremental Cap in effect at time of the establishment and/or incurrence (as applicable) of any Incremental Facility;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) each Incremental Facility shall be in a minimum principal or committed amount of Five Million Dollars ($5,000,000), and, if greater, in an integral multiple of Five-Hundred Thousand Dollars ($500,000) in excess thereof (or such lesser amounts as the Administrative Agent may agree in its sole discretion);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the establishment and incurrence (as applicable) of each Incremental Facility shall be contingent upon the receipt by the Administrative Agent of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) additional Commitments of the applicable Class in a corresponding amount to such requested increase in the aggregate amount of Commitments of such Class, or Incremental Term Loan Commitments in a corresponding amount to the aggregate original principal amount of such requested Incremental Term Loan of a separate Class, in each case of the foregoing of this <u>clause (e)(i)(C)(I</u>), from either existing Lenders or from one (1) or more other financial institutions (each such other financial institution, an "*<u>Additional Incremental Lender</u>*") that: (1) qualifies as an Eligible Assignee; and (2) is approved (such approval *not* to be unreasonably withheld, conditioned or delayed) by the Administrative Agent and, in the case of any increased or new Commitment in respect of an Incremental Revolver Increase, each of the Issuing Bank and the Swingline Lender, or from a combination of existing Lenders and/or Additional Incremental Lenders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) documentation from each existing Lender or Additional Incremental Lender providing a Commitment in respect of such Incremental Facility, in form and substance reasonably acceptable to the Administrative Agent, evidencing its: (I) agreement to provide such Commitment; and (II) acceptance of its obligations as a Lender under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the Administrative Agent shall have received all customary officer's certificates, legal opinions and other documents (including, without limitation, resolutions of the board of directors or managers (or equivalent governing body) of each Credit Party and customary opinions of counsel to the Credit Parties, if required to be provided by the existing Lenders and Additional Incremental Lenders providing Commitments in respect of such Incremental Facility) it may reasonably request relating to the corporate, limited liability company or other necessary authority for the establishing of such Incremental Facility and the validity thereof, and any other matters relevant thereto, all in form and substance reasonably satisfactory to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) the Borrower shall have delivered to the Administrative Agent a certificate, dated as of the date of establishment and/or incurrence (as applicable) of such Incremental Facility, and duly executed by an Authorized Officer of the Borrower, certifying, on behalf of the Borrower and each other Credit Party, that, both immediately *before* and immediately *after* giving effect to the establishment and/or incurrence (as applicable) of such Incremental Facility and the consummation of any related transactions (including, without limitation, any Acquisitions) substantially contemporaneously in connection therewith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) no Default or Event of Default shall have occurred and be continuing;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) all representations and warranties of each Credit Party set forth in the Credit Documents (including, without limitation, the representations and warranties of each Credit Party set forth in <u>Article 6</u>) are true and correct, in all material respects (or, if such representation and warranty is qualified by materiality or Material Adverse Effect, in all respects), on, and as of, such date, except to the extent that such representations and warranties specifically relate to an earlier date, in which case, they are true and correct, in all material respects (or, if such representation and warranty is qualified by materiality or Material Adverse Effect, in all respects), as of such earlier date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) the Collateral Agent shall have received such amendments to the Collateral Documents as the Collateral Agent shall request in order to cause the Collateral Documents to secure the Obligations (in a manner consistent with the terms of the Collateral Documents as in effect immediately *prior* to the date of establishment and/or incurrence (as applicable) of such Incremental Facility) after giving effect to the establishment and/or incurrence (as applicable) of such Incremental Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) if any Revolving Loans are outstanding at the time of establishment of any Incremental Revolver Increase, then the Borrower shall, if applicable, prepay one (1) or more of the then outstanding Revolving Loans (any such prepayment to be subject to <u>Section</u> <u>3.1(c</u>)) in an amount necessary such that, after giving effect to such Incremental Revolver Increase, each Lender will hold its respective *pro rata* share of outstanding Revolving Loans; <u>provided</u>, <u>that</u>, any such prepayment may be effected, in whole or in part, pursuant to a cashless rollover in accordance with <u>Section</u> <u>1.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any increased or new Commitments established in respect of an existing (as of the date that is immediately *prior* to the date of establishment of such Incremental Facility) Class of Commitments shall have terms substantially identical to those for Commitments of such Class under this Agreement as of the date that is immediately *prior* to the date of establishment of such Incremental Facility, except for fees payable to the Lenders providing increased or new Commitments in respect of such Incremental Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) the terms and provisions applicable to any Incremental Term Loan of a separate Class shall (to the extent *not* in conflict with the terms and provisions of this Agreement pertaining to Incremental Term Loans) be as set forth in the applicable Incremental Facility Agreement establishing such Incremental Term Loan, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) such Incremental Term Loan shall have a final maturity date that is coterminous with, or later than, the Latest Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) the Weighted Average Life of such Incremental Term Loan shall *not* be *less than* the Weighted Average Life of any other then-outstanding Term Loan (including of the Term Loan A, the Delayed Draw Term Loan and any other then outstanding Incremental Term Loan); and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) the All-In Yield applicable to any Incremental Term Loan shall *not* be *more than* one-half of one percent (0.50%) *higher than* the corresponding All-In Yield applicable to any other then-outstanding Term Loan (including the Term Loan A, the Delayed Draw Term Loan and any other then outstanding Incremental Term Loan) (it being understood and agreed that interest on any other then-outstanding Term Loan may be increased to the extent necessary to satisfy this requirement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J) the Borrower shall have paid any applicable upfront and/or arrangement fee(s) in connection with the establishment and/or incurrence (as applicable) of such Incremental Facility, as agreed by the Borrower in writing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K) except to the extent otherwise required or expressly permitted pursuant to this Agreement (including, for purposes of clarity, the foregoing of this <u>clause (e)(i</u>)), all other terms and conditions of any Incremental Term Loan of a Class separate from the Term Loan A and the Delayed Draw Term Loan shall be reasonably satisfactory to the Administrative Agent and the Collateral Agent.

Notwithstanding anything to the contrary in the foregoing of this <u>clause (e)(i</u>): (I) neither Administrative Agent, the Collateral Agent nor any Lender, nor any Affiliate of any of the foregoing (nor any of their respective successors or assigns), shall have any obligation to agree to increase any Class of its Commitments or any of its other obligations under this Agreement and the other Credit Documents, or to otherwise provide all, or any portion, of any Incremental Facility, and any decision by a Lender to agree to any such increase or to otherwise provide all, or any portion, of an Incremental Facility shall be made in its sole and absolute discretion, independently from, and without reliance upon, any other existing Lender or Additional Incremental Lender; and (II) neither any Arranger, the Administrative Agent, the Collateral Agent nor any Lender, nor any Affiliate of any of the foregoing (nor any of their respective successors or assigns), shall have any responsibility for arranging any Commitments in respect of any Incremental Facility, in each case of this <u>clause (e)(i)(II</u>), without their prior written consent and subject to such conditions (including, without limitation, fee arrangements) as they may require in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Administrative Agent, the Collateral Agent, the Credit Parties, and the existing Lenders and/or Additional Incremental Lenders providing any Commitment(s) in respect of any Incremental Facility, without the further consent of any other Person, are expressly permitted to enter into an Incremental Facility Agreement to establish any such Incremental Facility effected in accordance with the foregoing <u>clause (e)(i</u>), which Incremental Facility Agreement may amend this Agreement and the other Credit Documents to implement such technical, administrative and/or mechanical changes as may be necessary or advisable to be implemented in connection therewith (including, without limitation, to ensure continuing *pro rata* allocations of Loans and Commitments and to implement ratable participations in Letters of Credit).

Section 2.2 <u>Swingline Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Swingline Loans Commitments</u>. During the Revolver Availability Period, subject to the terms and conditions hereof, the Swingline Lender shall make Swingline Loans to the Borrower in an aggregate amount up to, but *not exceeding*, the Swingline Sublimit; <u>provided</u>, <u>that</u>, after giving effect to the making of any Swingline Loan, in no event shall (i) the Aggregate Revolving Credit Exposure *exceed* the Aggregate Revolving Commitment Amount, and (ii) the aggregate amount of Revolving Credit

------

Exposure of any Lender *exceed* the amount of such Lender's respective Revolving Commitment. Amounts borrowed pursuant to this <u>Section</u> <u>2.2</u> may be repaid and reborrowed during the Revolver Availability Period. The Swingline Lender's Revolving Commitment shall expire on the Revolving Commitment Termination Date and all Swingline Loans, and all other amounts owed hereunder with respect to the Swingline Loans and the Revolving Commitments, shall be Paid in Full by *no later than* such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Borrowing Mechanics for Swingline Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to <u>clause (b)(vi</u>) below, whenever the Borrower desires that the Swingline Lender make a Swingline Loan, the Borrower shall deliver to the Administrative Agent a Funding Notice by *no later than* 11:00 a.m. on the proposed Credit Date (<u>provided</u>, <u>that</u>, a Funding Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Funding Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Swingline Lender shall make the amount of its Swingline Loan available to the Administrative Agent by *not later than* 3:00 p.m. (Eastern time) on the applicable Credit Date by wire transfer of same day funds in Dollars, at the Administrative Agent's Principal Office. Except as provided herein, upon satisfaction or waiver of the conditions precedent specified herein, the Administrative Agent shall make the proceeds of such Swingline Loans available to the Borrower on the applicable Credit Date by causing an amount of same day funds in Dollars equal to the proceeds of all such Swingline Loans received by the Administrative Agent from the Swingline Lender to be credited to the account of the Borrower at the Administrative Agent's Principal Office, or to such other account as may be designated in writing to the Administrative Agent by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) With respect to any Swingline Loans that have *not* been voluntarily prepaid by the Borrower pursuant to <u>Section</u> <u>2.11</u>, the Swingline Lender may, at any time in its sole and absolute discretion, deliver to the Administrative Agent (with a copy to the Borrower), by *no later than* 11:00 a.m. (Eastern time) on the day of the proposed Credit Date, a notice (which shall be deemed to be a Funding Notice given by the Borrower) requesting that each Lender holding a Revolving Commitment make Revolving Loans that are Base Rate Loans to the Borrower on such Credit Date in an aggregate principal amount equal to the principal amount of such Swingline Loans (the "*<u>Refunded Swingline Loans</u>*") outstanding on the date such notice is given which the Swingline Lender requests the Lenders to prepay (<u>provided</u>, <u>that</u>, a Funding Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Funding Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed). Notwithstanding anything to the contrary in this Agreement: (A) the proceeds of such Revolving Loans made by the Lenders other than the Swingline Lender shall be immediately delivered by the Administrative Agent to the Swingline Lender (and *not* to the Borrower) and applied to repay a corresponding portion of the Refunded Swingline Loans; and (B) on the day that such Revolving Loans are made, the Swingline Lender's Revolving Commitment Percentage of the Refunded Swingline Loans shall be deemed to be paid with the proceeds of a Revolving Loan made by the Swingline Lender to the Borrower, and such portion of the Swingline Loans deemed to be so paid shall no longer be outstanding as Swingline Loans but shall instead constitute part of the Swingline Lender's outstanding Revolving Loans to the Borrower. The Borrower hereby authorizes the Administrative Agent and the Swingline Lender to charge the Borrower's accounts with the Administrative Agent and the Swingline Lender (up to the amount available in each such account) in order to immediately pay the Swingline Lender the amount of the Refunded

------

Swingline Loans to the extent the proceeds of such Revolving Loans made by the Lenders, including the Revolving Loans deemed to be made by the Swingline Lender, are insufficient to repay in full the Refunded Swingline Loans. If any portion of any such amount paid (or deemed to be paid) to the Swingline Lender should be recovered by, or on behalf of, the Borrower from the Swingline Lender in bankruptcy, by assignment for the benefit of creditors or otherwise, the loss of the amount so recovered shall be ratably shared among all Lenders in the manner contemplated by <u>Section</u> <u>2.14</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If, for any reason, Revolving Loans are *not* made pursuant to <u>clause (b)(iii</u>) above in an amount sufficient to repay any amounts owed to the Swingline Lender in respect of any outstanding Swingline Loans on or before the third (3<sup>rd</sup>) Business Day after demand for payment thereof by the Swingline Lender, each Lender holding a Revolving Commitment shall be deemed to, and hereby agrees to, have purchased a participation in such outstanding Swingline Loans, and in an amount equal to its Revolving Commitment Percentage of the applicable unpaid amount together with accrued interest thereon; <u>provided</u>, <u>that</u>, any such participation purchased by a Lender shall be limited to an amount that would *not* cause the aggregate amount of Revolving Credit Exposure of such Lender (immediately after giving effect to such participation) to *exceed* the amount of such Lender's respective Revolving Commitment. On the Business Day that notice is provided by the Swingline Lender (or by the 11:00 a.m. (Eastern time) on the following Business Day, if such notice is provided after 2:00 p.m. (Eastern time)), each Lender holding a Revolving Commitment shall deliver to the Swingline Lender an amount equal to its respective participation in the applicable unpaid amount in same day funds at the Principal Office of the Swingline Lender. In order to evidence such participation each Lender holding a Revolving Commitment agrees to enter into a participation agreement at the request of the Swingline Lender in form and substance reasonably satisfactory to the Swingline Lender. In the event that any Lender holding a Revolving Commitment fails to make available to the Swingline Lender the amount of such Lender's participation as provided in this <u>clause (b)(v</u>), the Swingline Lender shall be entitled to recover such amount on demand from such Lender together with interest thereon for three (3) Business Days at the rate customarily used by the Swingline Lender for the correction of errors among banks and thereafter at the Base Rate, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notwithstanding anything contained herein to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) each Lender's obligation to make Revolving Loans for the purpose of repaying any Refunded Swingline Loans pursuant to <u>clause (b)(iii</u>) above, and each Lender's obligation to purchase a participation in any unpaid Swingline Loans pursuant to the immediately preceding paragraph, shall be absolute and unconditional and shall *not* be affected by any circumstance, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) any set-off, counterclaim, recoupment, defense or other right which such Lender may have against the Swingline Lender, any Credit Party or any other Person for any reason whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) the occurrence or continuation of a Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) any adverse change in the business, operations, properties, assets, condition (financial or otherwise) or prospects of any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) any breach of this Agreement or any other Credit Document by any party thereto; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(V) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing;

<u>provided</u>, <u>that</u>, such obligations of each Lender are subject to the condition that the Swingline Lender had *not* received prior notice from the Borrower or the Required Revolving Lenders that any of the conditions under <u>Section</u> <u>5.2</u> to the making of the applicable Refunded Swingline Loans or other unpaid Swingline Loans were *not* satisfied at the time such Refunded Swingline Loans or other unpaid Swingline Loans were made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Swingline Lender shall *not* be obligated to make any Swingline Loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) if it has elected *not* to do so after the occurrence, and during the continuation, of a Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) it does *not* in good faith believe that all conditions under <u>Section</u> <u>5.2</u> to the making of such Swingline Loan have been satisfied or waived by the Required Revolving Lenders; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) at a time when a Defaulting Lender exists, unless the Swingline Lender has entered into arrangements satisfactory to it and the Borrower to eliminate the Swingline Lender's risk with respect to the Defaulting Lender's participation in such Swingline Loan, including by Cash Collateralizing such Defaulting Lender's Revolving Commitment Percentage of the outstanding Swingline Loans in a manner reasonably satisfactory to the Swingline Lender and the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) In order to facilitate the borrowing of Swingline Loans, the Borrower and the Swingline Lender may mutually agree, and are hereby authorized, to enter into an auto borrow agreement in form and substance satisfactory to the Swingline Lender and the Administrative Agent (the "*<u>Auto Borrow Agreement</u>*") providing for the automatic advance by the Swingline Lender of Swingline Loans under the conditions set forth in the Auto Borrow Agreement, subject to the conditions set forth in this Agreement. At any time that an Auto Borrow Agreement is in effect, advances under the Auto Borrow Agreement shall be deemed Swingline Loans for all purposes of this Agreement and the other Credit Documents, except that Borrowings of Swingline Loans under the Auto Borrow Agreement shall be made in accordance with the Auto Borrow Agreement. For purposes of determining the Aggregate Revolving Credit Exposure at any time during which an Auto Borrow Agreement is in effect, the aggregate outstanding principal balance of all Swingline Loans shall be deemed to equal the *sum of*: (A) the aggregate outstanding principal balance of all Swingline Loans at such time; *plus* (B) the maximum unused amount available to be borrowed under such Auto Borrow Agreement at such time.

Section 2.3 <u>Issuances of Letters of Credit and Purchase of Participations Therein</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Letters of Credit</u>. During the Revolver Availability Period, subject to the terms and conditions hereof, the Issuing Bank agrees to issue Letters of Credit for the account of the Borrower or any of its Subsidiaries in the aggregate amount up to, but *not exceeding*, the Letter of Credit Sublimit, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each Letter of Credit shall be denominated in Dollars;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the stated amount of each Letter of Credit shall *not* be *less than* Fifty Thousand Dollars ($50,000) or such lesser amount as may be approved in writing by the Issuing Bank in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) immediately *after* giving effect to such issuance, in no event shall: (A) the Aggregate Revolving Credit Exposure *exceed* the Aggregate Revolving Commitment Amount; (B) the Revolving Credit Exposure of any Lender *exceed* the amount of such Lender's respective Revolving Commitment; and (C) the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, *exceed* the Letter of Credit Sublimit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in no event shall any Letter of Credit have an expiration date that is *later than* the *earlier* to occur of: (A) seven (7) calendar days *prior* to the Revolving Commitment Termination Date; and (B) the date which is one (1) year from the date of issuance of such Letter of Credit.

Subject to the foregoing (other than <u>clause (a)(iv</u>)) the Issuing Bank may agree that a Letter of Credit will automatically be extended for one or more successive periods *not to exceed* one (1) year each, unless the Issuing Bank elects *not* to extend for any such additional period; <u>provided</u>, <u>that</u>, (I) the Issuing Bank shall *not* extend any such Letter of Credit if it has received written notice that an Event of Default has occurred and is continuing at the time the Issuing Bank must elect to allow such extension, and (II) in the event that any Lender is at such time a Defaulting Lender, unless the Issuing Bank has entered into arrangements satisfactory to the Issuing Bank (in its sole discretion) with the Borrower or such Defaulting Lender to eliminate the Issuing Bank's Fronting Exposure with respect to such Lender (after giving effect to <u>Section</u> <u>2.16(a)(iv</u>) and any Cash Collateral provided by the Defaulting Lender), including by Cash Collateralizing such Defaulting Lender's Revolving Commitment Percentage of the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, in a manner reasonably satisfactory to Agents, the Issuing Bank shall *not* be obligated to issue or extend any Letter of Credit hereunder. The Issuing Bank may send a Letter of Credit or conduct any communication to or from the beneficiary via the Society for Worldwide Interbank Financial Telecommunication ("*<u>SWIFT</u>*") message or overnight courier, or any other commercially reasonable means of communicating with a beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice of Issuance</u>. Whenever the Borrower desires the issuance of a Letter of Credit, the Borrower shall deliver to the Administrative Agent an Issuance Notice by *no later than* 1:00 p.m. (Eastern time) *at least* three (3) Business Days in advance of the proposed date of issuance (or such shorter period as may be agreed to by the Issuing Bank in any particular instance) (<u>provided</u>, <u>that</u>, an Issuance Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Issuance Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed). Upon satisfaction or waiver of the conditions set forth in <u>Section</u> <u>5.2</u>, the Issuing Bank shall issue the requested Letter of Credit only in accordance the Issuing Bank's standard operating procedures (including, without limitation, the delivery by the Borrower of such executed documents and information pertaining to such requested Letter of Credit, including any Issuer Documents, as the Issuing Bank or the Administrative Agent may require). Upon the issuance of any Letter of Credit or amendment or modification to a Letter of Credit, the Issuing Bank shall promptly notify the Administrative Agent and each Lender of such issuance, which notice shall be accompanied by a copy of such Letter of Credit or amendment or modification to a Letter of Credit and the amount of such Lender's respective participation in such Letter of Credit pursuant to <u>clause (e</u>) below.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Responsibility of Issuing Bank With Respect to Requests for Drawings and Payments</u>. In determining whether to honor any drawing under any Letter of Credit by the beneficiary thereof, the Issuing Bank shall be responsible only to examine the documents delivered under such Letter of Credit with reasonable care so as to ascertain whether they appear on their face to be in accordance with the terms and conditions of such Letter of Credit. As between the Borrower and the Issuing Bank, the Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit issued by the Issuing Bank, by the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, the Issuing Bank shall *not* be responsible for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for and issuance of any such Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) failure of the beneficiary of any such Letter of Credit to comply fully with any conditions required in order to draw upon such Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) errors in interpretation of technical terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any such Letter of Credit or of the proceeds thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any consequences arising from causes beyond the control of the Issuing Bank, including any Governmental Acts; none of the above shall affect or impair, or prevent the vesting of, the Issuing Bank's rights or powers hereunder.

Without limiting the foregoing and in furtherance thereof, any action taken or omitted by the Issuing Bank under or in connection with the Letters of Credit or any documents and certificates delivered thereunder, if taken or omitted in good faith, shall not give rise to any liability on the part of the Issuing Bank to any Credit Party. Notwithstanding anything to the contrary contained in this <u>clause</u> <u>(c</u>), the Borrower shall retain any and all rights it may have against the Issuing Bank for any liability arising solely out of the gross negligence or willful misconduct of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Reimbursement by the Borrower of Amounts Drawn or Paid Under Letters of Credit</u>. In the event the Issuing Bank has determined to honor a drawing under a Letter of Credit, it shall immediately notify the Borrower and the Administrative Agent, and the Borrower shall reimburse the Issuing Bank on or before the Business Day immediately following the date on which such drawing is honored (the "*<u>Reimbursement Date</u>*") in an amount in Dollars and in same day funds equal to the amount of such honored drawing; <u>provided</u>, <u>that</u>, (i) anything contained herein to the contrary notwithstanding, (A) unless the Borrower shall have notified the Administrative Agent and the Issuing Bank *prior* to 11:00 a.m. (Eastern time) on the date such drawing is honored that the Borrower intends to reimburse the Issuing Bank for the amount of such honored drawing with funds other than the proceeds of Revolving Loans, the Borrower shall be deemed to have given a timely Funding Notice to

------

the Administrative Agent requesting the Lenders to make Revolving Loans that are Base Rate Loans on the Reimbursement Date in an amount in Dollars equal to the amount of such honored drawing, and (B) subject to satisfaction or waiver of the conditions specified in <u>Section</u> <u>5.2</u>, the Lenders shall, on the Reimbursement Date, make Revolving Loans that are Base Rate Loans in the amount of such honored drawing, the proceeds of which shall be applied directly by the Administrative Agent to reimburse the Issuing Bank for the amount of such honored drawing, and (ii) if, for any reason, proceeds of Revolving Loans are *not* received by the Issuing Bank on the Reimbursement Date in an amount equal to the amount of such honored drawing, the Borrower shall reimburse the Issuing Bank, on demand, in an amount in same day funds equal to the *excess* of the amount of such honored drawing *over* the aggregate amount of such Revolving Loans, if any, which are so received. Nothing in this <u>clause (d</u>) shall be deemed to relieve any Lender from its obligation to make Revolving Loans on the terms and conditions set forth herein, and the Borrower shall retain any and all rights it may have against any Lender resulting from the failure of such Lender to make such Revolving Loans under this <u>clause (d</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Lenders' Purchase of Participations in Letters of Credit</u>. Immediately upon the issuance of each Letter of Credit, each Lender having a Revolving Commitment shall be deemed to have purchased, and hereby agrees to irrevocably purchase, from the Issuing Bank a participation in such Letter of Credit and any drawings honored thereunder in an amount equal to such Lender's Revolving Commitment Percentage (with respect to the Revolving Commitments) of the maximum amount which is or at any time may become available to be drawn thereunder; <u>provided</u>, <u>that</u>, any such participation purchased by a Lender shall be limited to an amount that would *not* cause the aggregate amount of Revolving Credit Exposure of such Lender (immediately after giving effect to such participation) to *exceed* the amount of such Lender's respective Revolving Commitment. In the event that the Borrower shall fail, for any reason, to reimburse the Issuing Bank as provided in <u>clause (d</u>) above, the Issuing Bank shall promptly notify each Lender of the unreimbursed amount of such honored drawing and of such Lender's respective participation therein based on such Lender's Revolving Commitment Percentage. Each Lender shall make available to the Issuing Bank an amount equal to its respective participation, in Dollars and in same day funds, at the office of the Issuing Bank specified in such notice, by *not later than* 12:00 p.m. (Eastern time) on the first (1<sup>st</sup>) Business Day (under the laws of the jurisdiction in which such office of the Issuing Bank is located) after the date notified by the Issuing Bank. In the event that any Lender fails to make available to the Issuing Bank on such Business Day the amount of such Lender's participation in such Letter of Credit as provided in this <u>clause (e</u>), the Issuing Bank shall be entitled to recover such amount on demand from such Lender together with interest thereon for three (3) Business Days at the rate customarily used by the Issuing Bank for the correction of errors among banks and thereafter at the Base Rate. Nothing in this <u>clause (e</u>) shall be deemed to prejudice the right of any Lender to recover from the Issuing Bank any amounts made available by such Lender to the Issuing Bank pursuant to this Section in the event that it is determined that the payment with respect to a Letter of Credit in respect of which payment was made by such Lender constituted gross negligence or willful misconduct on the part of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order. In the event the Issuing Bank shall have been reimbursed by other Lenders pursuant to this <u>clause (e</u>) for all or any portion of any drawing honored by the Issuing Bank under a Letter of Credit, the Issuing Bank shall distribute to each Lender which has paid all amounts payable by it under this <u>clause (e</u>) with respect to such honored drawing such Lender's Revolving Commitment Percentage of all payments subsequently received by the Issuing Bank from the Borrower in reimbursement of such honored drawing when such payments are received. Any such distribution shall be made to a Lender at its primary address set forth below its name on <u>Appendix B</u> or at such other address as such Lender may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Obligations Absolute</u>. The obligation of the Borrower to reimburse the Issuing Bank for drawings honored under the Letters of Credit issued by it and to repay any Revolving Loans made by the Lenders pursuant to <u>clause (d</u>) above and the obligations of the Lenders under <u>clause (e</u>) above shall be unconditional and irrevocable and shall be paid strictly in accordance with the terms hereof under all circumstances including any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any lack of validity or enforceability of any Letter of Credit;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the existence of any claim, set-off, defense (other than that such drawing has been repaid) or other right which the Borrower or any Lender may have at any time against a beneficiary or any transferee of any Letter of Credit (or any Persons for whom any such transferee may be acting), the Issuing Bank, a Lender or any other Person or, in the case of a Lender, against the Borrower, whether in connection herewith, the transactions contemplated herein or any unrelated transaction (including any underlying transaction between the Borrower or any of its Subsidiaries and the beneficiary for which any Letter of Credit was procured);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any draft or other document presented under any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) payment by the Issuing Bank under any Letter of Credit against presentation of a draft or other document which does *not* substantially comply with the terms of such Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any adverse change in the business, operations, properties, assets, or financial condition of the Borrower or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any breach hereof or any other Credit Document by any party thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the fact that an Event of Default or a Default shall have occurred and be continuing;

<u>provided</u>, <u>that</u>, in each case, that payment by the Issuing Bank under the applicable Letter of Credit shall *not* have constituted gross negligence or willful misconduct of the Issuing Bank under the circumstances in question, as determined by a court of competent jurisdiction in a final, non-appealable order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Indemnification</u>. Without duplication of any obligation of the Credit Parties under <u>Section</u> <u>11.2</u>, in addition to amounts payable as provided herein, each of the Credit Parties hereby agrees, on a joint and several basis, to protect, indemnify, pay and save harmless the Issuing Bank from and against any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including reasonable out-of-pocket fees, expenses and disbursements of counsel) which the Issuing Bank may incur or be subject to as a consequence, direct or indirect, of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the issuance of any Letter of Credit by the Issuing Bank, other than as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the gross negligence or willful misconduct of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the wrongful dishonor by the Issuing Bank of a proper demand for payment made under any Letter of Credit issued by it; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the failure of the Issuing Bank to honor a drawing under any such Letter of Credit as a result of any Governmental Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Applicability of ISP</u>. Unless otherwise expressly agreed by the Issuing Bank and the Borrower when a Letter of Credit is issued, the rules of the ISP shall apply to each Letter of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Letters of Credit Issued for Subsidiaries</u>. Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary of the Borrower, the Borrower shall be obligated to reimburse the Issuing Bank hereunder for any and all drawings under such Letter of Credit. The Borrower hereby acknowledges that the issuance of Letters of Credit for the account of the Subsidiaries inures to the benefit of the Borrower, and that the Borrower's business derives substantial benefits from the businesses of such Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Conflict with Issuer Documents</u>. In the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control.

Section 2.4 <u>Pro Rata Shares; Availability of Funds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Pro Rata Shares</u>. All Loans shall be made, and all participations purchased, by the Lenders simultaneously and proportionately to their respective *pro rata* shares of the Loans, it being understood that no Lender shall be responsible for any default by any other Lender in such other Lender's obligation to make a Loan requested hereunder or purchase a participation required hereby nor shall any Commitment, or the portion of the aggregate outstanding principal balance of any Loans, of any Lender be increased or decreased as a result of a default by any other Lender in such other Lender's obligation to make a Loan requested hereunder or purchase a participation required hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Availability of Funds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Funding by Lenders; Presumption by Administrative Agent</u>. Unless the Administrative Agent shall have received notice from a Lender *prior* to the proposed date of any Borrowing (or, in the case of any Borrowing of Base Rate Loans, prior to 12:00 p.m. (Noon) (Eastern time) on the date of such Borrowing) that such Lender will *not* make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with <u>Section</u> <u>2.1(d</u>) or, in the case of a Borrowing of Base Rate Loans, that such Lender has made such share available in accordance with, and at the time required by, <u>Section</u> <u>2.1(d</u>) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has *not* in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from, and including, the date such amount is made available to the Borrower to, but *excluding*, the date of payment to the Administrative Agent, at, (A) in the case of a payment to be made by such Lender, the *greater of* the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Loans, *plus*, in either case, any administrative, processing or similar fees customarily charged by the Administrative Agent in connection therewith. If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period. If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender's Loan included in such Borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Payments by the Borrower; Presumptions by Administrative Agent</u>. Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount due. In such event, if the Borrower has *not* in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or the Issuing Bank, in immediately available funds with interest thereon, for each day from, and including, the date such amount is distributed to it to, but *excluding*, the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

Notices given by the Administrative Agent under this <u>clause (b</u>) shall be conclusive absent manifest error.

Section 2.5 <u>Evidence of Debt; Register; Lenders' Books and Records; Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Lenders' Evidence of Debt</u>. Each Lender shall maintain on its internal records an account or accounts evidencing the Obligations of the Borrower and each other Credit Party to such Lender, including the amounts of the Loans made by it and each repayment and prepayment in respect thereof. Any such recordation shall be conclusive and binding on the Borrower, absent manifest error; <u>provided</u>, <u>that</u>, (i) the failure to make any such recordation, or any error in such recordation, shall *not* affect any Lender's Commitment or the Borrower's obligations in respect of any applicable Loans, and (ii) in the event of any inconsistency between the Register and any Lender's records, the recordations in the Register shall govern in the absence of demonstrable error therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notes</u>. The Borrower shall execute and deliver to (i) each Lender on the Second Amendment Effective Date, (ii) each Person who is a permitted assignee of such a Lender pursuant to <u>Section</u> <u>11.5</u>, and (iii) each Additional Incremental Lender, in each case, to the extent requested by such Person, a Note to evidence such Person's respective portion of the Revolving Loans, Swingline Loans, Term Loans and other Obligations.

Section 2.6 <u>Scheduled Principal Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans</u>. The aggregate outstanding principal balance of Revolving Loans (together with any unpaid accrued interest and fees with respect thereto) shall become due and payable, and be repaid, in full on the Revolving Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Swingline Loans</u>. The aggregate outstanding principal balance of Swingline Loans (together with any unpaid accrued interest and fees with respect thereto) shall become due and payable, and be repaid, in full on the *earlier* to occur of: (i) the date of demand therefor by the Swingline Lender; and (ii) the Revolving Commitment Termination Date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Term Loan A</u>. The outstanding principal balance of the Term Loan A shall be repaid in equal quarterly installments, beginning on the last Business Day of the Fiscal Quarter ending June 30, 2025, in an amount of Two Million Five-Hundred Thousand Dollars ($2,500,000) per Fiscal Quarter, payable on the last Business Day of each Fiscal Quarter (as such quarterly installments may hereafter be adjusted as a result of prepayments made pursuant to <u>Section</u> <u>2.11</u>), unless accelerated sooner pursuant to <u>Article 9</u>, with the outstanding principal balance of the Term Loan A (together with any unpaid accrued interest and fees with respect thereto) being due and payable in full on the Maturity Date for the Term Loan A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delayed Draw Term Loan</u>. The outstanding principal balance of each advance made under the Delayed Draw Term Loan during the DDTL Availability Period shall be repaid in equal quarterly installments, beginning on the last Business Day of the first (1<sup>st</sup>) full Fiscal Quarter ending after the date on which such advance is made, in an amount equal to the DDTL Amortization Payment Amount per Fiscal Quarter, payable on the last Business Day of each Fiscal Quarter (as such quarterly installments may hereafter be adjusted as a result of prepayments made pursuant to <u>Section</u> <u>2.11</u>), unless accelerated sooner pursuant to <u>Article 9</u>, with the outstanding principal balance of each advance under the Delayed Draw Term Loan (together with any unpaid accrued interest and fees with respect thereto) being due and payable in full on the Maturity Date for the Delayed Draw Term Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Incremental Term Loans</u>. The outstanding principal balance of any Incremental Term Loans shall be repaid in installments on the date(s), and in the amount(s), set forth in the applicable Incremental Facility Agreement establishing such Incremental Term Loan.

Section 2.7 <u>Interest on Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise set forth herein, each Loan shall bear interest on the unpaid principal amount thereof from the date made through repayment (whether by acceleration or otherwise) thereof as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of Revolving Loans, the Term Loan A and the Delayed Draw Term Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) to the extent outstanding as Base Rate Loans, at the Base Rate *plus* the Applicable Margin; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) to the extent outstanding as SOFR Loans, at Term SOFR *plus* the Applicable Margin; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of Swingline Loans, at the Swingline Rate (or with respect to any Swingline Loan advanced pursuant to an Auto Borrow Agreement, such other rate as separately agreed in writing between the Borrower and the Swingline Lender);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any Incremental Term Loan, at the percentages per annum specified in the applicable Incremental Facility Agreement establishing such Incremental Term Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The basis for determining the rate of interest with respect to any Loan (except a Swingline Loan, which may only be made and maintained at the Swingline Rate (unless and until converted into a Revolving Loan pursuant to the terms and conditions hereof)), and the Interest Period with respect to any SOFR Loan, shall be selected by the Borrower and notified to the Administrative Agent and the Lenders pursuant to the applicable Funding Notice or Conversion / Continuation Notice, as the case may be. If, on any day, a Loan is outstanding with respect to which a Funding Notice or Conversion / Continuation Notice has *not* been delivered to the Administrative Agent in accordance with the terms hereof specifying the applicable basis for determining the rate of interest, then for that day: (i) if such Loan is a SOFR Loan, such Loan shall become a Base Rate Loan; and (ii) if such Loan is a Base Rate Loan, such Loan shall remain a Base Rate Loan.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with SOFR Loans, there shall be *no more than* eight (8) Interest Periods outstanding at any time. In the event the Borrower fails to specify between a Base Rate Loan or a SOFR Loan in the applicable Funding Notice or Conversion / Continuation Notice, such Loan: (i) if outstanding as a SOFR Loan, will be automatically continued, on the last day of the then-current Interest Period for such Loan, as a SOFR Loan with an equivalent Interest Period; and (ii) if outstanding as a Base Rate Loan will remain as, or (if *not* then outstanding) will be made as, a Base Rate Loan. In the event the Borrower fails to specify an Interest Period for any SOFR Loan in the applicable Funding Notice or Conversion / Continuation Notice, the Borrower shall be deemed to have selected an Interest Period of one (1) month. As soon as practicable *after* 10:00 a.m. (Eastern time) on each Interest Rate Determination Date, the Administrative Agent shall determine (which determination shall, absent manifest error, be final, conclusive and binding upon all parties) the interest rate that shall apply to each of the SOFR Loans for which an interest rate is then being determined (and for the applicable Interest Period) and shall promptly give notice thereof (in writing or by telephone confirmed in writing) to the Borrower and each Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Interest payable pursuant to this <u>Section</u> <u>2.7</u> shall be computed on the basis of: (i) for interest at the Base Rate, year of three hundred sixty-five (365) or three hundred sixty-six (366) days, as the case may be; and (ii) for all other computations of fees and interest, a year of three hundred sixty (360) days, in each case, for the actual number of days elapsed in the period during which it accrues. In computing interest on any Loan, the date of the making of such Loan, or the first (1<sup>st</sup>) day of an Interest Period applicable to such Loan, or, with respect to a Base Rate Loan being converted from a SOFR Loan, the date of conversion of such SOFR Loan to such Base Rate Loan, as the case may be, shall be included, and the date of payment of such Loan or the expiration date of an Interest Period applicable to such Loan or, with respect to a Base Rate Loan being converted to a SOFR Loan, the date of conversion of such Base Rate Loan to such SOFR Loan, as the case may be, shall be excluded; <u>provided</u>, <u>that</u>, if a Loan is repaid on the same day on which it is made, one (1) day's interest shall be paid on that Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If, as a result of any restatement of, or other adjustment to, the financial statements of the Borrower or for any other reason, the Borrower or the Lenders determine that (i) the Consolidated Leverage Ratio, as calculated by the Borrower as of any applicable date, was inaccurate, and (ii) a proper calculation of the Consolidated Leverage Ratio would have resulted in higher pricing for such period, then the Borrower shall immediately and retroactively be obligated to pay to the Administrative Agent, for the account of the holders of the Obligations, promptly on demand (and, in any event, by *not later than* ten (10) consecutive calendar days after the date of such demand) by the Administrative Agent (or, after the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower or any other Credit Party under the Bankruptcy Code or other Debtor Relief Law, automatically and any without further action(s) by the Agent or any Lender), an amount equal to the *excess* of the amount of interest and fees that should have been paid for such period *over* the amount of interest and fees actually paid for such period. This <u>clause (e</u>) shall *not* limit the rights of the Agent or any Lender, as the case may be, under any other provision of this Agreement. The Borrower's obligations under this <u>clause (e</u>) shall survive the termination of the Commitments and the repayment of all other Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as otherwise set forth herein, interest on each Loan shall accrue on a daily basis and shall be payable in arrears on and to: (i) each Interest Payment Date applicable to that Loan; (ii) upon any prepayment of that Loan (other than a voluntary prepayment of a Revolving Loan or Term Loan which interest shall be payable in accordance with <u>clause (f)(i</u>) above), to the extent accrued on the amount being prepaid; and (iii) at maturity, including final maturity.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Borrower agrees to pay to the Issuing Bank, with respect to drawings honored under any Letter of Credit issued by the Issuing Bank, interest on the amount paid by the Issuing Bank in respect of each such honored drawing from, and including, the date such drawing is honored to, but *excluding*, the date such amount is reimbursed by, or on behalf of, the Borrower at a rate equal to: 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for the period from, and including, the date such drawing is honored to, but *excluding*, the applicable Reimbursement Date, the rate of interest otherwise payable hereunder with respect to Revolving Loans that are Base Rate Loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) thereafter, a rate which is the *lesser* of: (y) two percent (2.0%) per annum in *excess* of the rate of interest otherwise payable hereunder with respect to Revolving Loans that are Base Rate Loans; and (z) the Highest Lawful Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Interest payable pursuant to <u>clause (g</u>) above shall be computed on the basis of a year of three hundred sixty-five (365) or three hundred sixty-six (366) days, as the case may be, for the actual number of days elapsed in the period during which it accrues, and shall be payable on demand or, if no demand is made, on the date on which the related drawing under a Letter of Credit is reimbursed in full. Promptly upon receipt by the Issuing Bank of any payment of interest pursuant to <u>clause (g</u>) above, the Issuing Bank shall distribute to each Lender, out of the interest received by the Issuing Bank in respect of the period from the date such drawing is honored to, but *excluding*, the date on which the Issuing Bank is reimbursed for the amount of such drawing (including any such reimbursement out of the proceeds of any Revolving Loans), the amount that such Lender would have been entitled to receive in respect of the letter of credit fee that would have been payable in respect of such Letter of Credit for such period if no drawing had been honored under such Letter of Credit. In the event the Issuing Bank shall have been reimbursed by the Lenders for all or any portion of such honored drawing, the Issuing Bank shall distribute to each Lender which has paid all amounts payable by it under <u>Section</u> <u>2.3(e</u>) with respect to such honored drawing such Lender's Revolving Commitment Percentage of any interest received by the Issuing Bank in respect of that portion of such honored drawing so reimbursed by the Lenders for the period from the date on which the Issuing Bank was so reimbursed by the Lenders to but excluding the date on which such portion of such honored drawing is reimbursed by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In connection with the use and/or administration of SOFR, the SOFR Reference Rate for any applicable tenor and/or any SOFR-Based Rate, the Administrative Agent shall have the right to make Conforming Changes in consultation with the Borrower from time to time and, notwithstanding anything to the contrary in this Agreement or in any other Credit Document, any amendment(s) implementing any such Conforming Changes shall become effective without any further action(s) and/or consent(s) of any other party to this Agreement or any other Credit Document or of any other Person. The Administrative Agent shall promptly notify the Borrower and the Lenders of the effectiveness of any Conforming Changes implemented in connection with the use and/or administration of SOFR, the SOFR Reference Rate for any applicable tenor and/or any SOFR-Based Rate.

Section 2.8 <u>Conversion / Continuation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So long as no Default or Event of Default shall have occurred and then be continuing or would result therefrom, the Borrower shall have the option:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to convert at any time all, or any part, of any Loan equal to One-Hundred Thousand Dollars ($100,000) and, if greater, in an integral multiple of Fifty Thousand Dollars ($50,000) in excess thereof from one Type of Loan to another Type of Loan; <u>provided</u>, <u>that</u>, a SOFR Loan may only be converted on the expiration of the Interest Period applicable to such SOFR Loan unless the Borrower shall pay all amounts due under <u>Section</u> <u>3.1(c</u>) in connection with any such conversion; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon the expiration of any Interest Period applicable to any SOFR Loan, to continue all or any portion of such Loan as a SOFR Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall deliver a Conversion / Continuation Notice to the Administrative Agent by *no later than* 1:00 p.m. (Eastern time) *at least* three (3) Business Days in advance of the proposed Conversion / Continuation Date. Except as otherwise provided herein, a Conversion / Continuation Notice for conversion to, or continuation of, any SOFR Loans (or telephonic notice in lieu thereof) shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to effect a conversion or continuation in accordance therewith.

Section 2.9 <u>Default Rate of Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any amount of principal of any Loan is *not* paid when due, whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any amount (other than principal of any Loan) payable by the Borrower under any Credit Document is *not* paid when due (after the expiration of any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then, at the request of the Required Lenders, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the occurrence and during the continuance of an Automatic Acceleration Event of Default or a Payment Event of Default, the Borrower shall pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the occurrence and during the continuance of an Event of Default other than an Automatic Acceleration Event of Default and a Payment Event of Default, the Borrower shall, at the request of the Required Lenders, pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the case of any SOFR Loan, upon the expiration of the Interest Period in effect at the time the Default Rate of interest is effective, each such SOFR Loan shall thereupon become a Base Rate Loan and shall thereafter bear interest at the Default Rate then in effect for Base Rate Loans. Payment or acceptance of the increased rates of interest provided for in this <u>Section</u> <u>2.9</u> is *not* a permitted alternative to timely payment and shall *not* constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Administrative Agent or any Lender.

------

Section 2.10 <u>Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Commitment Fee</u>. The Borrower shall pay to the Administrative Agent, for the account of each Lender in accordance with its Revolving Commitment Percentage and its DDTL Commitment Percentage (as applicable), a commitment fee (the "*<u>Commitment Fee</u>*") equal to the *sum of*: (i) the *product of* (A) the Applicable Margin, *multiplied by* (B) the actual daily amount by which the Aggregate Revolving Commitment Amount *exceeds* the Aggregate Revolving Credit Exposure, subject to adjustment(s) as provided in <u>Section</u> <u>2.16</u>; *plus* (ii) the *product of* (A) the Applicable Margin, *multiplied by* (B) the Aggregate DDTL Commitment Amount then in effect. The Commitment Fee shall accrue at all times during the Revolver Availability Period and at all times during the DDTL Commitment Period, including at any time during which one or more of the conditions in <u>Article 5</u> is *not* met, and shall be due and payable quarterly in arrears on the last Business Day of each March, June, September and December, commencing with the first (1<sup>st</sup>) such date to occur after the Closing Date, on the Revolving Commitment Termination Date and on the DDTL Commitment Termination Date; <u>provided</u>, <u>that</u>, (I) no Commitment Fee shall accrue on any Revolving Commitment or any DDTL Commitment of any Defaulting Lender so long as such Lender shall be a Defaulting Lender, and (II) any Commitment Fee accrued with respect to any Revolving Commitment or any DDTL Commitment of a Defaulting Lender during the period *prior* to the time that such Lender became a Defaulting Lender that remains unpaid at such time shall *not* be payable by the Borrower so long as such Lender shall be a Defaulting Lender. The Commitment Fee shall be calculated quarterly in arrears, and, if there is any change in the Applicable Margin during any quarter, the actual daily amount shall be computed and *multiplied by* the Applicable Margin separately for each period during such quarter that such Applicable Margin was in effect. For purposes of calculation of the Commitment Fee, Swingline Loans shall *not* be counted toward, or be considered as usage of, the Aggregate Revolving Commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Letter of Credit Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Letter of Credit Fees</u>. The Borrower shall pay to the Administrative Agent for the account of each Lender, in accordance with its Revolving Commitment Percentage, a Letter of Credit fee for each Letter of Credit equal to the Applicable Margin *multiplied by* the daily maximum amount available to be drawn under such Letter of Credit (collectively, the "*<u>Letter of</u> <u>Credit Fees</u>*"). For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with <u>Section</u> <u>1.3(b</u>). The Letter of Credit Fees shall be computed on a quarterly basis in arrears, and shall be due and payable on the last Business Day of each March, June, September and December, commencing with the first (1<sup>st</sup>) such date to occur after the issuance of such Letter of Credit, on the expiration date thereof and thereafter on demand; <u>provided</u>, <u>that</u>, (1) no Letter of Credit Fees shall accrue in favor of a Defaulting Lender so long as such Lender shall be a Defaulting Lender, and (2) any Letter of Credit Fees accrued in favor of a Defaulting Lender during the period prior to the time such Lender became a Defaulting Lender and unpaid at such time shall *not* be payable by the Borrower so long as such Lender shall be a Defaulting Lender. If there is any change in the Applicable Margin during any quarter, the daily maximum amount available to be drawn under each Letter of Credit shall be computed and *multiplied by* the Applicable Margin separately for each period during such quarter that such Applicable Margin was in effect. Notwithstanding anything to the contrary contained herein, upon the occurrence and during the continuance of an Automatic Acceleration Event of Default or a Payment Event of Default, all Letter of Credit Fees shall accrue at the Default Rate; and, upon the occurrence and during the continuance of an Event of Default other than an Automatic Acceleration Event of Default and a Payment Event of Default, then upon the request of the Required Lenders, all Letter of Credit Fees shall accrue at the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Fronting Fee and Documentary and Processing Charges Payable to Issuing Bank</u>. The Borrower shall pay, directly to the Issuing Bank for its own account, a fronting fee with respect to each Letter of Credit, at the rate per annum specified in the Fee Letter, computed on the daily amount available to be drawn under such Letter of Credit on a quarterly basis in arrears. Such fronting fee shall be due and payable on the last Business Day of each March, June,

------

September and December in respect of the most recently-ended quarterly period (or portion thereof, in the case of the first (1<sup>st</sup>) payment), commencing with the first (1<sup>st</sup>) such date to occur after the issuance of such Letter of Credit, on its expiration date and thereafter on demand. For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with <u>Section</u> <u>1.3(b</u>). In addition, the Borrower shall pay directly to the Issuing Bank for its own account the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of the Issuing Bank relating to letters of credit as from time to time in effect. Such customary fees and standard costs and charges are due and payable on demand and are non-refundable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Fees</u>. The Borrower shall pay to Regions Capital Markets, a division of Regions Bank, and the Administrative Agent, for their own respective accounts, fees in the amounts, and at the times, specified in the Fee Letter. Such fees shall be fully earned when paid and shall *not* be refundable for any reason whatsoever, except to the extent set forth in the Fee Letter.

Section 2.11 <u>Prepayments / Commitment Reductions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voluntary Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any time and from time to time, the Loans may be repaid in whole or in part without premium or penalty (subject to <u>Section</u> <u>3.1</u>):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) with respect to Base Rate Loans, the Borrower may prepay any such Loans on any Business Day, in whole or in part, in an aggregate minimum amount of Five-Hundred Thousand Dollars ($500,000) and, if greater, in an integral multiple of One-Hundred Thousand Dollars ($100,000) in excess thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) with respect to SOFR Loans, the Borrower may prepay any such Loans on any Business Day, in whole or in part (together with any amounts due pursuant to <u>Section</u> <u>3.1(c</u>)), in an aggregate minimum amount of Five-Hundred Thousand Dollars ($500,000) and, if greater, in an integral multiple of One-Hundred Thousand Dollars ($100,000) in excess thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) with respect to Swingline Loans, the Borrower may prepay any such Loans on any Business Day, in whole or in part, in any amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All such prepayments shall be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) upon written or telephonic notice on the date of prepayment in the case of Base Rate Loans or Swingline Loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) upon *not less than* three (3) Business Days' prior written or telephonic notice in the case of SOFR Loans;

in each case, given to the Administrative Agent or the Swingline Lender, as the case may be, by 11:00 a.m. (Eastern time) on the date required and, if given by telephone, promptly confirmed in writing to the Administrative Agent (and the Administrative Agent will promptly transmit such telephonic or original notice for a Credit Extension by telefacsimile or telephone to each Lender) (<u>provided</u>, <u>that</u>, a notice of prepayment delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such notice of prepayment shall be

------

revoked or extended if such event or transaction does *not* occur or is delayed). Upon the giving of any such notice, the principal amount of the Loans specified in such notice shall become due and payable on the prepayment date specified therein. Any such voluntary prepayment shall be applied as specified in <u>Section</u> <u>2.12(a</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Commitment Reductions / Terminations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower may, from time to time upon *not less than* three (3) Business Days' prior written or telephonic notice confirmed in writing to the Administrative Agent (which original written or telephonic notice the Administrative Agent will promptly transmit by telefacsimile or telephone to each applicable Lender), at any time and from time to time, terminate, in whole or permanently reduce in part, the Revolving Commitments (ratably among the Lenders in accordance with their respective commitment percentage thereof), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any such partial reduction of the Revolving Commitments shall be in an aggregate minimum amount of Five Million Dollars ($5,000,000) and, if greater, in an integral multiple of One Million Dollars ($1,000,000) in excess thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Borrower shall *not* terminate or reduce the Aggregate Revolving Commitments if, immediately *after* giving effect thereto and to any concurrent prepayments hereunder, the Aggregate Revolving Credit Exposure *exceeds* the Aggregate Revolving Commitment Amount; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) if, immediately after giving effect to any reduction of the Aggregate Revolving Commitment Amount, the Letter of Credit Sublimit and/or the Swingline Sublimit *exceed* the Aggregate Revolving Commitment Amount, then the Letter of Credit Sublimit and/or the Swingline Sublimit, as applicable, shall be automatically reduced by the amount of such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower's notice to the Administrative Agent shall designate the date (which shall be a Business Day) of such termination or reduction and the amount of any partial reduction, and such termination or reduction of the Aggregate Revolving Commitments shall be effective on the date specified in the Borrower's notice and shall reduce the Revolving Commitments of each Lender proportionately to its Revolving Commitment Percentage thereof (<u>provided</u>, <u>that</u>, a notice of termination or reduction of the Aggregate Revolving Commitments delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such notice of termination or reduction shall be revoked or extended if such event or transaction does *not* occur or is delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary in the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Aggregate Term Loan A Commitments terminated automatically on the Closing Date upon the Borrowing of the Term Loan A on the Closing Date pursuant to this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Aggregate DDTL Commitments shall (I) be automatically reduced, on a Dollar-for-Dollar basis, by the aggregate original principal amount of each advance made under the Delayed Draw Term Loan during the DDTL Availability Period at the time such advance is made, and (II) terminate automatically on the DDTL Commitment Termination Date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mandatory Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Revolving Commitments</u>. If, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Aggregate Revolving Credit Exposure shall *exceed* the Aggregate Revolving Commitment Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, shall *exceed* the Letter of Credit Sublimit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the aggregate outstanding principal balance of all Swingline Loans, taken together, shall *exceed* the Swingline Sublimit;

then immediate prepayment will be made on, or in respect of, the Revolving Obligations in an amount equal to such excess; <u>provided</u>, <u>that</u>, except with respect to the foregoing <u>clause (c)(i)(B</u>), Letter of Credit Obligations will *not* be Cash Collateralized hereunder until the Revolving Loans and Swingline Loans shall have been Paid in Full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Asset Sales and Involuntary Dispositions</u>. Prepayment will be made on the Obligations on the third Business Day following receipt of Net Cash Proceeds in an amount equal to one hundred percent (100.0%) of the Net Cash Proceeds received from any Asset Sale or Involuntary Disposition involving any asset of any Credit Party, any Subsidiary or any other Regulated Entity (other than (A) any Asset Sales the aggregate amount of Net Cash Proceeds of which does *not exceed* Five-Hundred Thousand Dollars ($500,000) in any Fiscal Year, and (B) any Involuntary Dispositions the aggregate amount of Net Cash Proceeds of which does *not exceed* Five-Hundred Thousand Dollars ($500,000) in any Fiscal Year, in each case, to the extent such Net Cash Proceeds are *not* reinvested in the assets (but *excluding* current assets as classified by GAAP) of the Credit Parties, Subsidiaries and other Regulated Entities within one hundred eighty (180) days of the date of such Asset Sale or Involuntary Disposition (it being understood that such prepayment shall be due immediately upon the expiration of such 180-day period); <u>provided</u>, <u>that</u>, no such reinvestment shall be made upon the occurrence and during the continuance of any Event of Default). Notwithstanding anything to the contrary in the foregoing, no prepayments will be required to be made on the Obligations with respect to the receipt of Net Cash Proceeds from the sale of any portfolio assets by any Regulated Entity in the ordinary course of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Debt Transactions</u>. Prepayment will be made on the Obligations in an amount equal to one hundred percent (100.0%) of the Net Cash Proceeds from any Debt Transactions on the Business Day following receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Specified Equity Contributions</u>. Prepayment will be made on the Obligations in an amount equal to one hundred percent (100.0%) of the Net Cash Proceeds from any Specified Equity Contribution on the Business Day following receipt thereof.

Notwithstanding any other provision of this <u>Section</u> <u>2.11</u>, with respect to any amount of Net Cash Proceeds subject to any of the foregoing <u>clauses (c)(ii</u>) through (<u>c)(iv</u>) attributable to a Foreign Subsidiary, in the event that the Borrower determines in good faith in consultation with the Administrative Agent that the upstreaming of cash equal to such amount by such Foreign Subsidiary would (i) violate any local law (*e*.*g*., financial assistance, thin capitalization, corporate benefit, or the fiduciary and statutory duties of the directors of such Foreign Subsidiary) or any term of any Organizational Document applicable to such Foreign Subsidiary required by Applicable Law, or (ii) cause

------

any material adverse tax consequence to the Credit Parties, Subsidiaries and other Regulated Entities, then such amount shall be *excluded* from such Net Cash Proceeds; <u>provided</u>, <u>that</u>, for one (1) year from the date on which the obligation to make the applicable prepayment arose, the Borrower and such Foreign Subsidiary shall use all commercially reasonable efforts to overcome or eliminate any such restrictions or minimize any such costs of prepayment and, if successful, shall promptly make the applicable prepayment, unless the Borrower shall have determined in good faith in consultation with the Administrative Agent that such actions would require the expenditure of a material amount of funds.

Section 2.12 <u>Application of Prepayments</u>. Within each Loan, prepayments will be applied, *<u>first</u>*, to Base Rate Loans, and *<u>then</u>*, to SOFR Loans in direct order of Interest Period maturities. In addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voluntary Prepayments</u>. Voluntary prepayments will be applied as specified by the Borrower, <u>provided</u>, <u>that</u>, in the case of prepayments on any of the Term Loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the prepayment will be applied ratably to the Term Loans then outstanding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to each Term Loan then outstanding, the prepayments will be applied to remaining principal installments thereunder as directed by the Borrower (and, absent such direction, in direct order of maturity thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mandatory Prepayments</u>. Mandatory prepayments will be applied as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Mandatory prepayments in respect of the Revolving Commitments under <u>Section</u> <u>2.11(c)(i</u>) above shall be applied to the respective Revolving Obligations, as appropriate, but without a permanent reduction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Mandatory prepayments in respect of Asset Sales and Involuntary Dispositions under <u>Section</u> <u>2.11(c)(ii</u>), Debt Transactions under <u>Section</u> <u>2.11(c)(iii</u>), and Specified Equity Contributions under <u>Section</u> <u>2.11(c)(iv</u>) shall be applied as follows: (A)*<u>first</u>*, ratably to the Term Loans, until the same are paid in full; and (B)*<u>then</u>*, to the Revolving Obligations (without a permanent reduction thereof) as follows, (I)*<u>first</u>*, to the principal balance of the Swingline Loans, until the same shall have been paid in full, to the Swingline Lender, (II)*<u>second</u>*, to the principal balance of the Revolving Loans, until the same shall have been paid in full, *pro rata* to the Lenders based on their respective Revolving Commitments, and (III)*<u>third</u>*, to Cash Collateralize the Letters of Credit as of such date *plus* any accrued and unpaid fees thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Mandatory prepayments with respect to each of the Term Loans will be applied to remaining principal installments thereunder (including the installment due on the applicable Maturity Date therefor) on a *pro rata* basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Prepayments on the Obligations will be paid by the Administrative Agent to the Lenders ratably in accordance with their respective interests therein (except for Defaulting Lenders where their share will be applied as provided in <u>Section</u> <u>2.16(a)(ii</u>) hereof).

Section 2.13 <u>General Provisions Regarding Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments by the Borrower of principal, interest, fees and other Obligations hereunder or under any other Credit Document shall be made in Dollars in immediately available funds, without defense, recoupment, setoff or counterclaim, free of any restriction or condition. The Administrative Agent shall, and the Borrower hereby authorizes the Administrative Agent to, debit a deposit account of

------

the Borrower or any of its Subsidiaries held with the Administrative Agent or any of its Affiliates and designated for such purpose by the Borrower or such Subsidiary in order to cause timely payment to be made to the Administrative Agent of all principal, interest and fees due hereunder or under any other Credit Document (subject to sufficient funds being available in its accounts for that purpose).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the Administrative Agent is unable to debit a deposit account of the Borrower or any of its Subsidiaries held with the Administrative Agent or any of its Affiliates in order to cause timely payment to be made to the Administrative Agent of all principal, interest and fees due hereunder or any other Credit Document (including because insufficient funds are available in its accounts for that purpose), payments hereunder and under any other Credit Document shall be delivered to the Administrative Agent, for the account of the Lenders, *not later than* 2:00 p.m. on the date due at the Principal Office of the Administrative Agent or via wire transfer of immediately available funds to an account designated by the Administrative Agent (or at such other location as may be designated in writing by the Administrative Agent from time to time); for purposes of computing interest and fees, funds received by the Administrative Agent after that time on such due date shall be deemed to have been paid by the Borrower on the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All payments in respect of the principal amount of any Loan (other than voluntary repayments of Revolving Loans) shall be accompanied by payment of accrued interest on the principal amount being repaid or prepaid, and all such payments (and, in any event, any payments in respect of any Loan on a date when interest is due and payable with respect to such Loan) shall be applied to the payment of interest then due and payable before application to principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall promptly distribute to each Lender at such address as such Lender shall indicate in writing, such Lender's applicable *pro rata* share of all payments and prepayments of principal and interest due to such Lender hereunder, together with all other amounts due with respect thereto, including all fees payable with respect thereto, to the extent received by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary in the foregoing provisions hereof, if any Conversion / Continuation Notice is withdrawn as to any Affected Lender or if any Affected Lender makes Base Rate Loans in lieu of its *pro rata* share of any SOFR Loans, the Administrative Agent shall give effect thereto in apportioning payments received thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subject to the provisos set forth in the definition of "*Interest Period*", whenever any payment to be made hereunder shall be stated to be due on a day that is *not* a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest hereunder or of the Commitment Fee hereunder, but such payment shall be deemed to have been made on the date therefor for all other purposes hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Administrative Agent may, but shall *not* be obligated to, deem any payment by, or on behalf of, the Borrower hereunder that is *not* made in same day funds prior to 2:00 p.m. to be a non-conforming payment. Any such payment shall *not* be deemed to have been received by the Administrative Agent until the *later* of: (i) the time such funds become available funds; and (ii) the applicable next Business Day. The Administrative Agent shall give prompt telephonic notice to the Borrower and each applicable Lender (confirmed in writing) if any payment is non-conforming. Any non-conforming payment may constitute or become a Default or Event of Default in accordance with the terms of <u>Section</u> <u>9.1(a</u>). Interest shall continue to accrue on any principal as to which a non-conforming payment is made until such funds become available funds (but in no event *less than* the period from the date of such payment to the next succeeding applicable Business Day) at the Default Rate (unless otherwise provided by the Required Lenders) from the date such amount was due and payable until the date such amount is Paid in Full.

------

Section 2.14 <u>Sharing of Payments by Lenders</u>. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of, or interest on, any of its Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of such Loans and accrued interest thereon or other such obligations *greater than* its *pro rata* share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of, and accrued interest on, their respective Loans and other amounts owing them; <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the provisions of this Section shall *not* be construed to apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any payment made by the Borrower pursuant to, and in accordance with, the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any amounts applied by the Swingline Lender to outstanding Swingline Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any amounts applied to Letter of Credit Obligations by the Issuing Bank or Swingline Loans by the Swingline Lender, as appropriate, from Cash Collateral provided under <u>Section</u> <u>2.15</u> or <u>Section</u> <u>2.16</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any payment obtained by a Lender as consideration for the assignment of, or sale of, a participation in any of its Loans, or participations in Letter of Credit Obligations, Swingline Loans or other obligations hereunder, to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this <u>Section</u> <u>2.14</u> shall apply).

Each of the Credit Parties consents to the foregoing and agrees, to the extent it may effectively do so under Applicable Laws, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Credit Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Credit Party in the amount of such participation.

Section 2.15 <u>Cash Collateral</u>. At any time that there shall exist a Defaulting Lender, within one (1) Business Day following the written request of the Administrative Agent or the Issuing Bank (with a copy to the Administrative Agent) the Borrower shall Cash Collateralize the Issuing Bank's Fronting Exposure with respect to such Defaulting Lender in an amount sufficient to cover the applicable Fronting Exposure (after giving effect to <u>Section</u> <u>2.16(a)(iv</u>) and any Cash Collateral provided by the Defaulting Lender).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant of Security Interest</u>. The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grants to the Administrative Agent, for the benefit of the Issuing Bank, and agrees to maintain, a perfected first priority security interest in all such Cash Collateral as security for the Defaulting Lenders' obligation to fund participations in respect of Letter of Credit Obligations, to be applied pursuant to <u>clause (b</u>) below. If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent and the Issuing Bank as herein provided, or that the total amount of such Cash Collateral is less than the applicable Fronting Exposure, the Borrower will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Application</u>. Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this <u>Section</u> <u>2.15</u> or <u>Section</u> <u>2.16</u> in respect of Letters of Credit shall be applied to the satisfaction of the Defaulting Lender's obligation to fund participations in respect of Letter of Credit Obligations (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided for herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Requirement</u>. Cash Collateral (or the appropriate portion thereof) provided to reduce the Issuing Bank's Fronting Exposure shall no longer be required to be held as Cash Collateral pursuant to this <u>Section</u> <u>2.15</u> following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the elimination of the applicable Fronting Exposure (including by the termination of Defaulting Lender status of the applicable Lender); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the determination by the Administrative Agent and the Issuing Bank that there exists excess Cash Collateral;

<u>provided</u>, <u>that</u>, (x) that Cash Collateral furnished by, or on behalf of, a Credit Party shall *not* be released during the continuance of a Default or Event of Default (and, following application as provided in this <u>Section</u> <u>2.15</u>, may be otherwise applied in accordance with <u>Section</u> <u>9.3</u>) but shall be released upon the cure, termination or waiver of such Default or Event of Default in accordance with the terms of this Agreement, and (y) the Person providing Cash Collateral and the Issuing Bank or Swingline Lender, as applicable, may agree that Cash Collateral shall *not* be released, but instead held to support future anticipated Fronting Exposure or other obligations.

Section 2.16 <u>Defaulting Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Defaulting Lender Adjustments</u>. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Waivers and Amendments</u>. Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in <u>Section</u> <u>11.4(a)(iii</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Defaulting Lender Waterfall</u>. Any payment of principal, interest, fees or other amount (other than fees which any Defaulting Lender is not entitled to receive pursuant to <u>clause</u> <u>(a)(iii</u>) below) received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to <u>Article 9</u> or otherwise, and including any amounts made available to the Administrative Agent by that Defaulting Lender pursuant to <u>Section</u> <u>11.3</u>), shall be applied at such time or times as may be determined by the Administrative Agent as follows:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) *<u>first</u>*, to the payment of any amounts owing by that Defaulting Lender to the Administrative Agent hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) *<u>second</u>*, to the payment on a *pro rata* basis of any amounts owing by that Defaulting Lender to the Issuing Bank or the Swingline Lender hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) *<u>third</u>*, to Cash Collateralize the Issuing Bank's Fronting Exposure with respect to such Defaulting Lender in accordance with <u>Section</u> <u>2.15</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) *<u>fourth</u>*, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which that Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) *<u>fifth</u>*, if so determined by the Administrative Agent and the Borrower, to be held in a non-interest bearing deposit account and released in order to: (I) satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this Agreement; and (II) Cash Collateralize the Issuing Bank's future Fronting Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with <u>Section</u> <u>2.15</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) *<u>sixth</u>*, to the payment of any amounts owing to the Lenders, the Issuing Bank or the Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the Issuing Bank or the Swingline Lender against that Defaulting Lender as a result of that Defaulting Lender's breach of its obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) *<u>seventh</u>*, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against that Defaulting Lender as a result of that Defaulting Lender's breach of its obligations under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) *<u>eighth</u>*, to that Defaulting Lender or as otherwise directed by a court of competent jurisdiction;

<u>provided</u>, <u>that</u>, if (x) such payment is a payment of the principal amount of any Loans or Letter of Credit Borrowings in respect of which that Defaulting Lender has *not* fully funded its appropriate share, and (y) such Loans or Letter of Credit Borrowings were made at a time when the conditions set forth in <u>Section</u> <u>5.2</u> were satisfied or waived, such payment shall be applied *solely* to the pay the Loans of, and Letter of Credit Borrowings owed to, all Non-Defaulting Lenders on a *pro rata* basis, prior to being applied to the payment of any Loans of, or Letter of Credit Borrowings owed to, such Defaulting Lender, until such time as all Loans and funded and unfunded participations in Letter of Credit Obligations and Swingline Loans are held by the Lenders *pro rata* in accordance with their Revolving Commitments without giving effect to <u>clause (a)(iv</u>) below. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this <u>clause (a)(ii</u>) shall be deemed paid to (and the underlying obligations satisfied to the extent of such payment) and redirected by that Defaulting Lender, and each Lender irrevocably consents hereto.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Certain Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Such Defaulting Lender shall *not* be entitled to receive any Commitment Fee, any fees with respect to Letters of Credit (except as provided in <u>clause (b</u>) below) or any other fees hereunder for any period during which that Lender is a Defaulting Lender (and the Borrower shall *not* be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Each Defaulting Lender shall be entitled to receive Letter of Credit Fees for any period during which that Lender is a Defaulting Lender only to the extent allocable to its Revolving Commitment Percentage of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to <u>Section</u> <u>2.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) With respect to any fee *not* required to be paid to any Defaulting Lender pursuant to <u>clause (a)(iii)(A</u>) or (<u>a)(iii)(B</u>) above, the Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender's participation in Letter of Credit Obligations or Swingline Loans that has been reallocated to such Non-Defaulting Lender pursuant to <u>clause (a)(iv</u>) below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) pay to the Issuing Bank and Swingline Lender, as applicable, the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to the Issuing Bank's or Swingline Lender's Fronting Exposure to such Defaulting Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) *not* be required to pay the remaining amount of any such fee. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Reallocation of Participations to Reduce Fronting Exposure</u>. All, or any part, of such Defaulting Lender's participation in Letter of Credit Obligations and Swingline Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Revolving Commitment Percentages (calculated without regard to such Defaulting Lender's Revolving Commitment), but only to the extent that: (x) the conditions set forth in <u>Section</u> <u>5.2</u> are satisfied at the time of such reallocation (and, unless the Borrower shall have otherwise notified the Administrative Agent at such time, the Borrower shall be deemed to have represented and warranted that such conditions are satisfied at such time); and (y) such reallocation does *not* cause the aggregate Revolving Credit Exposure at such time to *exceed* such Non-Defaulting Lender's Revolving Commitment. No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non- Defaulting Lender's increased exposure following such reallocation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Cash Collateral, Repayment of Swingline Loans</u>. If the reallocation described in <u>clause (a)(iv</u>) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) *<u>first</u>*, prepay Swingline Loans in an amount equal to the Swingline Lender's Fronting Exposure; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) *<u>second</u>*, Cash Collateralize the Issuing Bank's Fronting Exposure in accordance with the procedures set forth in <u>Section</u> <u>2.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Defaulting Lender Cure</u>. If the Borrower, the Administrative Agent and the Swingline Lender and the Issuing Bank agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon, as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit and Swingline Loans to be held *pro rata* by the Lenders in accordance with the Revolving Commitments (without giving effect to <u>clause (a)(iv</u>) above), whereupon such Lender will cease to be a Defaulting Lender; <u>provided</u>, <u>that</u>, no adjustments will be made retroactively with respect to fees accrued or payments made by, or on behalf of, the Borrower while that Lender was a Defaulting Lender; and <u>provided</u>, <u>further</u>, <u>that</u>, except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>New Swingline Loans / Letters of Credit</u>. So long as any Lender is a Defaulting Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Swingline Lender shall *not* be required to fund Swingline Loans unless it is satisfied that it will have no Fronting Exposure after giving effect to such Swingline Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Issuing Bank shall *not* be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.

Section 2.17 <u>Removal or Replacement of Lenders</u>. If:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender requests compensation under <u>Section</u> <u>3.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Credit Party is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>3.3</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Lender gives notice of an inability to fund SOFR Loans under <u>Section</u> <u>3.1(b</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any Lender is a Defaulting Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any Lender (a "*<u>Non</u>*<u>-</u>*<u>Consenting Lender</u>*") does *not* consent (including by way of a failure to respond in writing to a proposed amendment, consent or waiver by the date and time specified by the Administrative Agent) to a proposed amendment, consent, change, waiver, discharge or termination hereunder or with respect to any Credit Document that has been approved by the Required Lenders;

then, the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate without recourse (in accordance with, and subject to, the restrictions contained in, and consents required by, <u>Section</u> <u>11.5</u>), all of its interests, rights (other than its rights under <u>Section</u> <u>3.2</u>, <u>Section</u> <u>3.3</u> and <u>Section</u> <u>11.2</u>) and obligations under this Agreement and the related Credit Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), <u>provided</u>, <u>that</u>:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower shall have paid to the Administrative Agent the assignment fee specified in <u>Section</u> <u>11.5(b)(iv</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in Letter of Credit Borrowings, as applicable, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Credit Documents (including any amounts under <u>Section</u> <u>3.1(c</u>)) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any such assignment resulting from a claim for compensation under <u>Section</u> <u>3.2</u> or payments required to be made pursuant to <u>Section</u> <u>3.3</u>, such assignment is reasonably expected to result in a reduction in such compensation or payments thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such assignment does *not* conflict with Applicable Laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in the case of any such assignment resulting from a Non-Consenting Lender's failure to consent to a proposed amendment, consent, change, waiver, discharge or termination, the successor replacement Lender shall have consented to the proposed amendment, consent, change, waiver, discharge or termination.

Each Lender agrees that in the event it, or its interests in the Loans and obligations hereunder, shall become subject to the replacement and removal provisions of this Section, it will cooperate with the Borrower and the Administrative Agent to give effect to the provisions hereof, including execution and delivery of an Assignment Agreement in connection therewith, but the replacement and removal provisions of this Section shall be effective regardless of whether an Assignment Agreement shall have been given.

A Lender shall *not* be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

**Article 3** 

**<u>YIELD PROTECTION</u>** 

Section 3.1 <u>Making or Maintaining SOFR Loans; Benchmark Replacement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Inability to Determine Rates</u>. Notwithstanding anything to the contrary in this Agreement or any other Credit Document (<u>provided</u>, <u>that</u>, for the avoidance of doubt, any Swap Agreement shall be deemed *not* to be a "*Credit Document*" for purposes of this <u>Section</u> <u>3.1</u>), in the event that the Administrative Agent shall have determined (which determination shall be final and conclusive and binding upon all parties to this Agreement), on any Interest Rate Determination Date with respect to any SOFR Loans, that reasonable and adequate means do *not* exist for ascertaining the interest rate applicable to such SOFR Loans on the basis provided for in the definition of "*Term SOFR*" (and any related defined terms used therein) in <u>Section</u> <u>1.1</u>, then the Administrative Agent shall give notice (either by telefacsimile or by telephone confirmed in writing) to the Borrower and each Lender of such determination, whereupon and whereafter, (i) no Loans may or shall be made as, or continued as or converted into, SOFR Loans until such time as the Administrative Agent shall have notified the Borrower and the Lenders in writing that the event(s) and/or circumstance(s) giving rise to such initial determination no longer exist, (ii) any

------

Funding Notice(s) and/or any Conversion / Continuation Notice(s) given by the Borrower with respect to any Loan(s) in respect of which such determination was made shall be deemed to have been rescinded by the Borrower, and (iii) all such Loan(s) described in the foregoing <u>clause (a)(ii</u>) shall be automatically made or continued as, or converted into, as applicable, Base Rate Loans on the last day of the then-current Interest Period applicable thereto (without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u>), unless the Borrower shall have prepaid such Loan(s) in accordance with this Agreement; <u>provided</u>, <u>that</u>, if the event(s) and/or circumstance(s) giving rise to such initial determination shall have occurred but only with respect to certain (but *not* all) of the tenors of the then applicable term rate Benchmark (including, for the avoidance of doubt, the SOFR Reference Rate for any applicable tenor), then (A) the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such illegal or impracticable tenor, and (B) if a tenor that was removed pursuant to the foregoing <u>clause (a)(A</u>) is subsequently displayed on a screen or information service for a Benchmark, then the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Illegality or Impracticability of the Benchmark</u>. Subject to <u>clause (g</u>) below, in the event that, on any date, any Lender shall have determined (which determination (A) shall be final and conclusive and binding upon all parties to this Agreement, but (B) shall be made only after written notice to, and consultation with, the Borrower and the Administrative Agent) that a Benchmark Illegality / Impracticability Event has occurred with respect to such Lender, then such Lender shall be an "*<u>Affected</u> <u>Lender</u>*" and such Lender shall, on that date, give notice (either by telefacsimile or by telephone confirmed in writing) to the Borrower and the Administrative Agent of such determination (which notice the Administrative Agent shall promptly transmit to each other Lender). Thereafter: (i) the obligation of such Affected Lender to make Loans as, or to continue Loans as or to convert Loans to, SOFR Loans shall be suspended, until such notice shall have been withdrawn by such Affected Lender in writing to the Administrative Agent and the Borrower; (ii) to the extent that such determination by such Affected Lender relates to a SOFR Loan, or to a continuation thereof or a conversion of outstanding Loans thereto, then being requested by the Borrower pursuant to a Funding Notice or Conversion / Continuation Notice (as applicable), then the Affected Lender shall make such Loan as (or convert such Loan to, as applicable) a Base Rate Loan, determined without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u>; (iii) such Affected Lender's obligation to maintain its outstanding SOFR Loans (the "*<u>Affected</u> <u>Loans</u>*") shall be terminated at the *earlier* to occur of (A) the expiration of the Interest Period then in effect with respect to such Affected Loans, or (B) when required by Applicable Law; and (iv) such Affected Loans shall automatically convert into Base Rate Loans, determined without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u>, on the date of such termination described in the foregoing <u>clause (b)(iii</u>). Notwithstanding anything to the contrary in the foregoing of this <u>clause (b</u>), to the extent that a determination by an Affected Lender as described above relates to a SOFR Loan (or a continuation thereof or a conversion of outstanding Loans thereto) then being requested by the Borrower pursuant to a Funding Notice or Conversion / Continuation Notice (as applicable), then the Borrower shall have the option, subject to the provisions of the foregoing <u>clause (a</u>), to rescind such Funding Notice or Conversion / Continuation Notice (as applicable) as to all Lenders by giving notice (either by telefacsimile or telephone confirmed in writing) to the Administrative Agent of such rescission on the date on which such Affected Lender gives notice of its determination as described in the foregoing of this <u>clause (b</u>) (which notice of rescission the Administrative Agent shall promptly transmit to each other Lender). Except as otherwise provided in the immediately preceding sentence, nothing in this <u>clause (b</u>) shall affect the obligation of any Lender, other than an Affected Lender, to make or maintain Loans as, or to continue outstanding Loans as or convert outstanding Loans into, SOFR Loans in accordance with the terms of this Agreement. Notwithstanding anything to the contrary in the foregoing, if a Benchmark Illegality / Impracticability Event shall have occurred but only with respect to certain (but *not* all) of the tenors of the then applicable term rate Benchmark (including, for the avoidance of doubt, the SOFR

------

Reference Rate for any applicable tenor), then: (I) the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such illegal or impracticable tenor; and (II) if a tenor that was removed pursuant to the foregoing <u>clause (b)(I</u>) is *not*, or is no longer, subject to a Benchmark Illegality / Impracticability Event, then the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Compensation for Breakage or Non-Commencement of Interest Periods</u>. The Borrower shall compensate each Lender, upon written request by such Lender (which request shall set forth the basis for requesting such amounts), for all reasonable out-of-pocket losses, expenses and liabilities (including any interest paid, or calculated to be due and payable, by such Lender to lenders of funds borrowed by it to make or carry its SOFR Loans, and any loss, expense or liability sustained by such Lender in connection with the liquidation or re-employment of such funds, but *excluding* loss of anticipated profits) that such Lender sustains if: (i) for any reason (other than a default by such Lender), a borrowing of any SOFR Loans does *not* occur on a date specified therefor in a Funding Notice (or a telephonic request for borrowing), or a conversion to, or continuation of, any SOFR Loans does *not* occur on a date specified therefor in a Conversion / Continuation Notice (or a telephonic request for conversion or continuation); (ii) any prepayment or other principal payment of, or any conversion of, any of its SOFR Loans occurs on any day other than the last day of an Interest Period applicable to that Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise), including as a result of an assignment in connection with the replacement of a Lender pursuant to <u>Section</u> <u>2.17</u>; or (iii) any prepayment of any of its SOFR Loans is *not* made on any date specified in a notice of prepayment given by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Booking of SOFR Loans</u>. Any Lender may make, carry or transfer SOFR Loans at, to, or for the account of any of its branch offices or the office of an Affiliate of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certificates for Reimbursement</u>. A certificate of a Lender setting forth, in reasonable detail, the amount(s) necessary to compensate such Lender, as specified in the foregoing <u>clause (c</u>), and the circumstances giving rise thereto, shall be delivered to the Borrower and shall be conclusive absent manifest error. In the absence of any such manifest error, the Borrower shall pay to the applicable Lender or the Issuing Bank, as the case may be, the amount(s) shown as due on any such certificate promptly and, in any event, within ten (10) Business Days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Delay in Requests</u>. The Borrower shall *not* be required to compensate a Lender pursuant to the foregoing <u>clause (c</u>) for any such amount(s) incurred *more than* six (6) calendar months *prior* to the date on which such Lender shall have delivered to the Borrower the certificate referenced in the foregoing <u>clause (e</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Benchmark Replacement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Generally</u>*. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, if the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error), or the Required Lenders (individually or jointly) notify the Administrative Agent (with, in the case of the Required Lenders, a copy delivered to the Borrower) that the Required Lenders (as applicable) have determined, that a Benchmark Illegality / Impracticability Event has occurred, then, on a date and time determined by the Administrative Agent (any such date, a "*<u>Benchmark Replacement Date</u>*"), which date shall be at the end of an Interest Period or on the relevant Interest Payment Date, as applicable, for interest calculated, the then current Benchmark shall be replaced under this Agreement and the other Credit Documents with the Benchmark Replacement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Amendment</u>*. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, (A) if the Administrative Agent determines that any alternative Benchmark (other than the SOFR Reference Rate for any applicable tenor) set forth in the definition of "*Benchmark Replacement*" in <u>Section</u> <u>1.1</u> is available on, or prior to, the applicable Benchmark Replacement Date, or (B) a Benchmark Illegality / Impracticability Event has occurred with respect to a Benchmark Replacement (other than the SOFR Reference Rate for any applicable tenor) then in effect, then, in each case of the foregoing <u>clauses (g)(ii)(A</u>) and (<u>g)(ii)(B</u>), the Administrative Agent and the Borrower may amend this Agreement *solely* for the purpose of replacing the SOFR Reference Rate (for any applicable tenor), or any then current Benchmark Replacement, in accordance with this <u>Section</u> <u>3.1</u> at the end of any applicable Interest Period, relevant Interest Payment Date or payment period for interest calculated, as applicable, with another alternate benchmark rate, in any such case, giving due consideration to any evolving, or then existing, convention(s) for similar Dollar-denominated syndicated credit facilities for such alternative benchmark(s), and, in each case, including any mathematical or other adjustments to such benchmark(s) (giving due consideration to any evolving, or then existing, convention(s) for similar Dollar-denominated syndicated credit facilities for such benchmark(s)), which adjustment(s), or method(s) for calculating such adjustment(s), shall be published on an information service as selected by the Administrative Agent from time to time in its reasonable discretion and may be periodically updated. For the avoidance of doubt, any such proposed rate and adjustment(s) shall constitute a Benchmark Replacement. Any such amendment shall become effective at 5:00 P.M. (New York City time) on the date that is five (5) Business Days *after* the date on which the Administrative Agent shall have posted a copy of such proposed amendment to all Lenders and the Borrower, without any further action(s) and/or consent(s) of any Credit Party, any other party to this Agreement or any other Credit Document and/or any other Person, so long as the Administrative Agent has *not* received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>Notices</u>*. The Administrative Agent shall notify (in one (1) or more notices) the Borrower and each Lender of the implementation of any Benchmark Replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *<u>Administration of Benchmark Replacement</u>*. Any Benchmark Replacement shall be applied in a manner consistent with market practice; <u>provided</u>, <u>that</u>, to the extent that such market practice is *not* administratively feasible for the Administrative Agent, then such Benchmark Replacement shall be applied in a manner as otherwise reasonably determined by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *<u>Floor</u>*. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, if, at any time, any Benchmark Replacement, as determined in accordance with this <u>Section</u> <u>3.1</u> and the related definitions in <u>Section</u> <u>1.1</u>, shall be *less than* the Floor, then such Benchmark Replacement shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents; <u>provided</u>, <u>that</u>, notwithstanding anything to the contrary in this Agreement or in any other Credit Document, at any time that the applicable interest rate for Base Rate Loans is determined without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u> by operation of this <u>Section</u> <u>3.1</u>, then the "*Floor*", for purposes of calculating such applicable interest rate, shall be increased by one percent (1.00%) per annum.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *<u>Conforming Changes</u>*. In connection with the use, administration, adoption and/or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Conforming Changes from time to time in consultation with the Borrower, and, notwithstanding anything to the contrary in this Agreement or in any other Credit Document, any amendments implementing such Conforming Changes will become effective without any further action(s) and/or consent(s) of any Credit Party, any other party to this Agreement or any other Credit Document and/or any other Person; <u>provided</u>, <u>that</u>, with respect to any such amendment effected in reliance on this <u>clause (g)(vi</u>), the Administrative Agent shall post a copy of such amendment implementing such Conforming Changes to the Borrower and the Lenders reasonably promptly after such amendment becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) *<u>Standards for Decisions and Determinations</u>*. Any determination, decision, or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this <u>clause (g</u>), including, without limitation, any determination with respect to a tenor, rate or adjustment, or of the occurrence or non-occurrence of an event, circumstance or date, and any decision to take, or refrain from taking, any action or any selection, will be conclusive and binding absent manifest error, and may be made in its or their, as applicable, sole discretion, and, in any event, without consent from any Credit Party, any other party to this Agreement or any other Credit Document or any other Person, except, in each case, as expressly required pursuant to this <u>clause (g</u>).

Section 3.2 <u>Increased Costs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Increased Costs Generally</u>. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender or the Issuing Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in <u>clauses (b</u>) through (<u>d</u>) of the definition of "*Excluded Taxes*", and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on any Lender or the Issuing Bank or the secured overnight financing or any other applicable interbank lending market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its obligation to make any such Loan, or to increase the cost to such Lender, the Issuing Bank or such other Recipient of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender, Issuing Bank or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, Issuing Bank or other Recipient, the Borrower will pay to such Lender, Issuing Bank or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender, Issuing Bank or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Capital and Liquidity Requirements</u>. If any Lender, the Issuing Bank or the Swingline Lender (for purposes hereof, may be referred to collectively as "*the Lenders*" or a "*Lender*") determines that any Change in Law affecting such Lender or any lending office of such Lender or such Lender's holding company, if any, regarding capital or liquidity ratios or requirements has or would have the effect of reducing the rate of return on such Lender's capital or on the capital of such Lender's holding company, if any, as a consequence of this Agreement, the commitments of such Lender hereunder or the Loans made by, or participations in Letters of Credit and Swingline Loans held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or such Lender's holding company could have achieved but for such Change in Law (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender, as the case may be, such additional amount or amounts as will compensate such Lender or such Lender's holding company for any such reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificates for Reimbursement</u>. A certificate of a Lender or the Issuing Bank setting forth in reasonable detail the amount or amounts necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be, as specified in <u>clauses (a</u>) or (<u>b</u>) above and the circumstances giving rise thereto shall be delivered to the Borrower and shall be conclusive absent manifest error. In the absence of any such manifest error, the Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within ten (10) Business Days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delay in Requests</u>. Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section shall *not* constitute a waiver of such Lender's or the Issuing Bank's right to demand such compensation, <u>provided</u>, <u>that</u>, the Borrower shall *not* be required to compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs incurred or reductions suffered *more than* six (6) months prior to the date that such Lender or the Issuing Bank, as the case may be, delivers to the Borrower the certificate referenced in <u>clause (c</u>) above and notifies the Borrower of such Lender's or the Issuing Bank's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).

Section 3.3 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Issuing Bank</u>. For purposes of this <u>Section</u> <u>3.3</u>, the term "*Lender*" shall include the Issuing Bank and the term "*Applicable Laws*" shall include FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes</u>. Any and all payments by, or on account of, any obligation of any Credit Party hereunder or under any other Credit Document shall be made without deduction or withholding for any Taxes, except as required by Applicable Laws. If any Applicable Laws (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Laws and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Credit Party shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment of Other Taxes by the Credit Parties</u>. The Credit Parties shall timely pay to the relevant Governmental Authority in accordance with Applicable Laws, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Tax Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Credit Parties shall jointly and severally indemnify each Recipient and shall make payment in respect thereof within ten (10) Business Days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of any such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Lender shall severally indemnify the Administrative Agent, within ten (10) Business Days after demand therefor, for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Indemnified Taxes attributable to such Lender (but only to the extent that any Credit Party has *not* already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Credit Parties to do so);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Taxes attributable to such Lender's failure to comply with the provisions of <u>Section</u> <u>11.5(d</u>) relating to the maintenance of a Participant Register; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Excluded Taxes attributable to such Lender;

in each case, that are payable or paid by the Administrative Agent in connection with any Credit Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Credit Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this <u>clause (d)(ii</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by any Credit Party to a Governmental Authority pursuant to this Section, such Credit Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of a return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Status of Lenders; Tax Documentation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Credit Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably

------

requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by Applicable Laws or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two (2) sentences, the completion, execution and submission of such documentation (other than such documentation set forth in <u>clauses (f)(ii)(A</u>), (<u>f)(ii)(B</u>) and (<u>f)(ii)(D</u>) below) shall *not* be required if, in the Lender's reasonable judgment, such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), duly completed and executed originals of IRS Form W–9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party: (x) with respect to payments of interest under any Credit Document, duly completed and executed originals of IRS Form W–8BEN–E (or W–8BEN as applicable) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty; and (y) with respect to any other applicable payments under any Credit Document, IRS Form W–8BEN–E (or W–8BEN as applicable) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) duly completed and executed originals of IRS Form W–8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 871 or 881(c) of the Internal Revenue Code: (x) a certificate substantially in the form of <u>Exhibit 3.3–1</u> to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Internal Revenue Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Internal Revenue Code (a "*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Tax Compliance Certificate</u>*"); and (y) duly completed and executed originals of IRS Form W–8BEN–E (or W–8BEN as applicable); or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) to the extent a Foreign Lender is not the beneficial owner, duly completed and executed originals of IRS Form W–8IMY, accompanied by IRS Form W–8ECI, IRS Form W–8BEN–E (or W–8BEN as applicable), a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit 3.3–2</u> or <u>Exhibit 3.3–</u> <u>3</u>, IRS Form W–9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u>, <u>that</u>, if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit 3.3–4</u> on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), duly executed originals of any other form prescribed by Applicable Laws as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Laws to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if a payment made to a Lender under any Credit Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by Applicable Laws (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this <u>clause (f)(ii)(D</u>), "*<u>FATCA</u>*" shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that, if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Treatment of Certain Refunds</u>. Unless required by Applicable Laws, at no time shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a Lender, or have any obligation to pay to any Lender, any refund of Taxes withheld or deducted from funds paid for the account of such Lender. If any indemnified party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this <u>Section</u> <u>3.3</u> (including by the payment of additional amounts pursuant to this <u>Section</u> <u>3.3</u>), it shall pay to the

------

indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this <u>Section</u> <u>3.3</u> with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of the indemnified party, shall repay to such indemnified party the amount paid over pursuant to this <u>clause (g</u>) (*plus* any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this <u>clause (g</u>), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this <u>clause (g</u>) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification, and giving rise to such refund, had not been deducted, withheld or otherwise imposed, and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Survival</u>. Each party's obligations under this <u>Section</u> <u>3.3</u> shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Credit Document.

Section 3.4 <u>Mitigation Obligations; Designation of a Different Lending Office</u>. If any Lender requests compensation under <u>Section</u> <u>3.2</u>, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>3.3</u>, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment: (i) would eliminate or reduce amounts payable pursuant to <u>Section</u> <u>3.2</u> or <u>Section</u> <u>3.3</u>, as the case may be, in the future; and (ii) would *not* subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

**Article 4** 

**<u>GUARANTY</u>** 

Section 4.1 <u>The Guaranty</u>. Each of the Guarantors hereby jointly and severally guarantees to the Administrative Agent, the Lenders, the Qualifying Swap Providers, the Qualifying Treasury Management Banks and the other holders of the Obligations as hereinafter provided, as primary obligor and not as surety, the prompt payment of the Obligations (the "*<u>Guaranteed Obligations</u>*") in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise) strictly in accordance with the terms thereof. The Guarantors hereby further agree that, if any of the Obligations are *not* Paid in Full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise), the Guarantors will, jointly and severally, promptly pay the same, without any demand or notice whatsoever, and that, in the case of any extension of time of payment or renewal of any of the Obligations, the same will be promptly Paid in Full when due (whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise) in accordance with the terms of such extension or renewal.

------

Notwithstanding any provision to the contrary contained herein, in any other of the Credit Documents, Swap Agreements, Treasury Management Agreements or other documents relating to the Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the obligations of each Guarantor under this Agreement and the other Credit Documents shall be limited to an aggregate amount equal to the largest amount that would *not* render such obligations subject to avoidance under the Debtor Relief Laws or any comparable provisions of any applicable state law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Guaranteed Obligations of a Guarantor shall *exclude* any Excluded Swap Obligations with respect to such Guarantor.

Section 4.2 <u>Obligations Unconditional</u>. The obligations of the Guarantors under <u>Section</u> <u>4.1</u> are joint and several, absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of any of the Credit Documents, Swap Agreements or Treasury Management Agreements, or any other agreement or instrument referred to therein, or any substitution, release, impairment or exchange of any other guarantee of or security for any of the Obligations, and, to the fullest extent permitted by Applicable Laws, irrespective of any law or regulation or other circumstance whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this <u>Section</u> <u>4.2</u> that the obligations of the Guarantors hereunder shall be absolute and unconditional under any and all circumstances. Each Guarantor agrees that such Guarantor shall have no right of subrogation, indemnity, reimbursement or contribution against the Borrower or any other Guarantor for amounts paid under this <u>Article 4</u> until such time as the Obligations have been Paid in Full. Without limiting the generality of the foregoing, it is agreed that, to the fullest extent permitted by Applicable Law, the occurrence of any one or more of the following shall not alter or impair the liability of any Guarantor hereunder, which shall remain absolute and unconditional as described above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at any time or from time to time, without notice to any Guarantor, the time for any performance of or compliance with any of the Obligations shall be extended, or such performance or compliance shall be waived;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any of the acts mentioned in any of the provisions of any of the Credit Documents, any Secured Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, or any Secured Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand, or any other agreement or instrument referred to in the Credit Documents, such Secured Swap Agreements or such Secured Treasury Management Agreements shall be done or omitted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the maturity of any of the Obligations shall be accelerated, or any of the Obligations shall be modified, supplemented or amended in any respect, or any right under any of the Credit Documents, any Secured Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, or any Secured Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand, or any other agreement or instrument referred to in the Credit Documents, such Secured Swap Agreements or such Secured Treasury Management Agreements shall be waived or any other guarantee of any of the Obligations or any security therefor shall be released, impaired or exchanged in whole or in part or otherwise dealt with;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Lien granted to, or in favor of, the Administrative Agent or any Lender or Lenders as security for any of the Obligations shall fail to attach or be perfected; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any of the Obligations shall be determined to be void or voidable (including, without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to the claims of any Person (including, without limitation, any creditor of any Guarantor).

With respect to its obligations hereunder, each Guarantor hereby expressly waives diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that the Administrative Agent or any Lender exhaust any right, power or remedy or proceed against any Person under any of the Credit Documents, any Secured Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, or any Secured Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand, or any other agreement or instrument referred to in the Credit Documents, such Secured Swap Agreements or such Secured Treasury Management Agreements, or against any other Person under any other guarantee of, or security for, any of the Obligations.

Section 4.3 <u>Reinstatement</u>. The obligations of the Guarantors under this <u>Article 4</u> shall be automatically reinstated if, and to the extent that, for any reason, any payment by, or on behalf of, any Person in respect of the Obligations is rescinded or must be otherwise restored by any holder of any of the Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and each Guarantor agrees that it will indemnify the Administrative Agent and each Lender on demand for all reasonable costs and expenses (including, without limitation, the fees, charges and disbursements of counsel) incurred by the Administrative Agent or such Lender in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.

Section 4.4 <u>Certain Additional Waivers</u>. Each Guarantor agrees that such Guarantor shall have no right of recourse to security for the Obligations, except through the exercise of rights of subrogation pursuant to <u>Section</u> <u>4.2</u> and through the exercise of rights of contribution pursuant to <u>Section</u> <u>4.6</u>.

Section 4.5 <u>Remedies</u>. The Guarantors agree that, to the fullest extent permitted by Applicable Law, as between the Guarantors, on the one hand, and the Administrative Agent and the Lenders, on the other hand, the Obligations may be declared to be forthwith due and payable as provided in <u>Section</u> <u>9.2</u> (and shall be deemed to have become automatically due and payable in the circumstances provided in said <u>Section</u> <u>9.2</u>) for purposes of <u>Section</u> <u>4.1</u> notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Obligations from becoming automatically due and payable) as against any other Person and that, in the event of such declaration (or the Obligations being deemed to have become automatically due and payable), the Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by the Guarantors for purposes of <u>Section</u> <u>4.1</u>. The Guarantors acknowledge and agree that their obligations hereunder are secured in accordance with the terms of the Collateral Documents and that the Lenders may exercise their remedies thereunder in accordance with the terms thereof.

Section 4.6 <u>Rights of Contribution</u>. The Guarantors agree among themselves that, in connection with payments made hereunder, each Guarantor shall have contribution rights against the other Guarantors as permitted under Applicable Laws. Such contribution rights shall be subordinate and subject in right of payment to the obligations of such Guarantors under the Credit Documents and no Guarantor shall exercise such rights of contribution until all Obligations have been Paid in Full.

------

Section 4.7 <u>Guarantee of Payment; Continuing Guarantee</u>. The guarantee in this <u>Article 4</u> is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to all Obligations whenever arising.

Section 4.8 <u>Keepwell</u>. Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Specified Credit Party to honor all of such Specified Credit Party's obligations under the Guaranty and the Collateral Documents in respect of Swap Obligations (<u>provided</u>, <u>that</u>, each Qualified ECP Guarantor shall only be liable under this <u>Section</u> <u>4.8</u> for the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor's obligations and undertakings under this <u>Article 4</u>, voidable under applicable Debtor Relief Laws, and not for any greater amount). The obligations and undertakings of each Qualified ECP Guarantor under this <u>Section</u> <u>4.8</u> shall remain in full force and effect until the Guaranteed Obligations have been indefeasibly paid and performed in full and the commitments relating thereto have expired or terminated, or, with respect to any Guarantor, if earlier, such Guarantor is released from its Guaranteed Obligations in accordance with <u>Section</u> <u>10.10(a</u>). Each Qualified ECP Guarantor intends that this <u>Section</u> <u>4.8</u> constitute, and this <u>Section</u> <u>4.8</u> shall be deemed to constitute, a "keepwell, support, or other agreement" for the benefit of each Specified Credit Party for all purposes of section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

**Article 5** 

**<u>CONDITIONS PRECEDENT</u>** 

Section 5.1 <u>Conditions Precedent to Initial Credit Extensions</u>. The obligation of each Lender to make a Credit Extension on the Closing Date is subject to the satisfaction of the following conditions on or before the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Executed Credit Documents</u>. Receipt by the Administrative Agent of executed counterparts of this Agreement and the other Credit Documents, in each case, in form and substance reasonably satisfactory to the Administrative Agent and the Lenders and duly executed by the appropriate parties thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organizational Documents</u>. Receipt by the Administrative Agent of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Charter Documents</u>. Copies of articles of incorporation, certificate of organization or formation, or other like document for each of the Credit Parties certified as of a recent date by the appropriate Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Organizational Documents Certificate</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Copies of bylaws, operating agreement, partnership agreement or like document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) copies of resolutions approving the transactions contemplated in connection with the financing and authorizing execution and delivery of the Credit Documents; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) incumbency certificates, for each of the Credit Parties, in each case, certified by an Authorized Officer in form and substance reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Good Standing Certificate</u>. Copies of certificates of good standing, existence or the like of a recent date for each of the Credit Parties from the appropriate Governmental Authority of its jurisdiction of formation or organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Closing Certificate</u>. Receipt by the Administrative Agent of a certificate from an Authorized Officer of the Borrower, in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders, confirming, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all consents, approvals, authorizations, registrations, or filings required to be made or obtained by the Borrower and the other Credit Parties, if any, in connection with this Agreement and the other Credit Documents and the transactions contemplated herein and therein have been obtained and are in full force and effect, and all waiting periods with respect thereto shall have expired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no investigation or inquiry by any Governmental Authority regarding this Agreement and the other Credit Documents and the transactions contemplated herein and therein is ongoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) since the date of the most-recent annual audited financial statements for the Borrower, there has been no event or circumstance which could be reasonably expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the most-recent annual audited financial statements were prepared in accordance with GAAP or SAP (as applicable) consistently applied, except as noted therein, and fairly present, in all material respects, the financial condition and results from operations of the Credit Parties, Subsidiaries and Regulated Entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Borrower, individually, and the Credit Parties, Subsidiaries and other Regulated Entities, taken as a whole, are Solvent after giving effect to the transactions contemplated hereby and the incurrence of Indebtedness related thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the conditions set forth in <u>Section</u> <u>5.2(c</u>) and <u>Section</u> <u>5.2(d</u>) have been satisfied as of the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) immediately *after* giving effect to any Credit Extensions to occur on the Closing Date, the Consolidated Leverage Ratio, determined on a Pro Forma Basis (except measured for the most recent Trailing Period in respect of which financial statements of the Credit Parties, Subsidiaries and other Regulated Entities approved by the Administrative Agent are available), is *not greater than* 1.75 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Opinions of Counsel</u>. Receipt by the Administrative Agent of customary opinions of counsel for each of the Credit Parties, including, among other things, opinions regarding the due authorization, execution and delivery of the Credit Documents and the enforceability thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Personal Property Collateral</u>. Receipt by the Collateral Agent of the following:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>UCC Financing Statements</u>. Such UCC financing statements necessary or appropriate to perfect the security interests in the personal property collateral, as determined by the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Intellectual Property Filings</u>. Such patent, trademark and copyright notices, filings and recordations necessary or appropriate to perfect the security interests in intellectual property and intellectual property rights, as determined by the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Pledged Equity Interests</u>. Original certificates evidencing any certificated Equity Interests pledged as collateral, together with undated stock transfer powers executed in blank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Evidence of Insurance</u>. Certificates of insurance for casualty, liability and any other insurance required by the Credit Documents, identifying the Collateral Agent as lender's loss payee with respect to the casualty insurance and additional insured with respect to the liability insurance, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Financial Statements</u>. Receipt and satisfactory review by the Administrative Agent of copies of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the internally-prepared quarterly unaudited consolidated and consolidating financial statements of the Credit Parties, Subsidiaries and other Regulated Entities for (A) the Fiscal Quarter ending June 30, 2024, and (B) to the extent available prior to the Closing Date, the Fiscal Quarter ending September 30, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the audited consolidated and unaudited consolidating financial statements for the Credit Parties, Subsidiaries and other Regulated Entities for the Fiscal Year ending December 31, 2023 (the "*<u>Annual Financial Statements</u>*"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such other financial information in respect of the financial condition, results of operations and cash flows of the Credit Parties, Subsidiaries and other Regulated Entities as the Administrative Agent shall have reasonably requested prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Funding Notice; Funds Disbursement Instructions</u>. The Administrative Agent shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a duly executed Funding Notice with respect to the Credit Extension to occur on the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) duly executed disbursement instructions (with wiring instructions and account information) for all disbursements to be made on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Florida Taxes</u>. The Administrative Agent shall have received either: (i) execution and delivery affidavits evidencing execution and delivery of this Agreement and the Notes outside of the State of Florida; or (ii) evidence that all applicable Florida stamp tax fees have been paid or will be paid contemporaneously with closing of the transactions contemplated hereby.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Refinancing of Existing Indebtedness</u>. Receipt by the Administrative Agent of evidence of the payment in full of existing Indebtedness (other than Indebtedness permitted to remain outstanding after the Closing Date pursuant to <u>Section</u> <u>8.1</u>), and any releases, terminations or other documents reasonably required by the Administrative Agent to evidence the payoff of such Indebtedness and release or termination of liens related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Fees and Expenses</u>. The Administrative Agent shall have confirmation that all reasonable out-of-pocket fees and expenses (and all filing and recording fees and taxes) required to be paid on or before the Closing Date have been paid, including the reasonable out-of-pocket fees and expenses of counsel for the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Patriot Act; Anti-Money Laundering Laws</u>. The provision by the Credit Parties of all documentation and other information that the Administrative Agent or any Lender requests in order to comply with its ongoing obligations under applicable "know your customer" and anti-money laundering rules and regulations, including the Patriot Act, including, without limitation, certification regarding beneficial ownership of legal entity customers (each, a "*<u>Beneficial</u> <u>Ownership Certification</u>*"). 

For purposes of determining compliance with the conditions specified in this <u>Section</u> <u>5.1</u>, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by, or acceptable or satisfactory to, a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

The funding of the initial Loans hereunder on the Closing Date shall evidence the satisfaction of the foregoing conditions.

Section 5.2 <u>Conditions to Each Credit Extension</u>. The obligation of each Lender to fund its respective Commitment Percentage of any Credit Extension on any Credit Date, including, without limitation, the Closing Date, are subject to the satisfaction, or waiver in accordance with <u>Section</u> <u>11.4</u>, of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Administrative Agent shall have received a fully executed and delivered Funding Notice, together with the documentation and certifications required therein with respect to each Credit Extension;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) immediately after making the Credit Extension requested on such Credit Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Aggregate Revolving Credit Exposure shall *not exceed* the Aggregate Revolving Commitment Amount; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the aggregate outstanding principal balance of any Class of Term Loans shall *not exceed* the aggregate amount of the Commitments of the Lenders of such Class that were in effect on the date(s) that such Commitments were established (as such Commitments were subsequently reduced pursuant to <u>Section</u> <u>2.11(b</u>), as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as of such Credit Date, the representations and warranties contained herein and in the other Credit Documents shall be true and correct in all material respects (except to the extent that any such representations and warranties are qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) on and as of that Credit Date, to the same extent as though made on and as of that date,

------

except, to the extent such representations and warranties specifically relate to an earlier date, in which case, such representations and warranties shall have been true and correct in all material respects (except to the extent that any such representations and warranties are qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) on and as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) as of such Credit Date, no event shall have occurred and be continuing, or would result from the consummation of the applicable Credit Extension, that would constitute an Event of Default or a Default; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *solely* in the case of a Credit Extension consisting of an advance under the Delayed Draw Term Loan, receipt by the Administrative Agent of a certificate, duly executed by an Authorized Officer of the Borrower, certifying, on behalf of the Borrower and each of the other Credit Parties, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) both immediately *before* and immediately *after* giving effect to such Credit Extension, the Credit Parties shall be in compliance, on a Pro Forma Basis, with each of the Financial Covenants; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately *after* giving effect to such Credit Extension, the Consolidated Leverage Ratio, determined on a Pro Forma Basis, shall be *less than* 1.75 to 1.0;

in each case of the foregoing <u>clauses (e)(i</u>) and (<u>e)(ii</u>), as supported by reasonably detailed calculations attached to such certificate.

**Article 6** 

**<u>REPRESENTATIONS AND WARRANTIES</u>** 

In order to induce the Agents and the Lenders to enter into this Agreement and to make each Credit Extension to be made thereby, the Borrower and each other Credit Party represents and warrants to the Administrative Agent and each Lender as follows:

Section 6.1 <u>Organization; Requisite Power and Authority; Qualification</u>. Each Credit Party, each Subsidiary and each other Regulated Entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation or formation (as the case may be) as identified in <u>Schedule 6.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has all requisite power and authority to own and operate its respective Properties, to carry on its business as now conducted and as proposed to be conducted, to enter into the Credit Documents to which it is a party and to carry out the transactions contemplated thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is qualified to do business and in good standing in every jurisdiction where necessary to carry out its business and operations, except in jurisdictions where the failure to be so qualified or in good standing has *not* had, and could *not* be reasonably expected to have, a Material Adverse Effect.

------

Section 6.2 <u>Equity Interests, Ownership and Control</u>. <u>Schedule 6.2</u> correctly sets forth the ownership interest(s) or attorney-in-fact relationship(s), as applicable, of each Credit Party in or with (as applicable) each other Credit Party, Subsidiary and other Regulated Entity, together with the ownership interest(s) of each direct holder of outstanding Equity Interests in the Borrower, in each case of the foregoing, as of the Closing Date. The Equity Interests in each Credit Party, each Subsidiary and each other Regulated Entity have been duly authorized and validly issued and are fully paid and non-assessable. Except as set forth on <u>Schedule 6.2</u>, as of the Closing Date, there is no existing option, warrant, call, right, commitment, buy-sell, voting trust or other shareholder agreement or other agreement to which any Subsidiary is a party requiring, and there is no membership interest or other Equity Interests of any Subsidiary outstanding that, upon conversion or exchange, would require, the issuance by any Subsidiary of any additional membership interests or other Equity Interests of any Subsidiary or other Securities convertible into, exchangeable for or evidencing the right to subscribe for or purchase, a membership interest or other Equity Interests of any Subsidiary.

Section 6.3 <u>Due Authorization</u>. The execution, delivery and performance of the Credit Documents have been duly authorized by all necessary action on the part of each Credit Party, each Subsidiary and each other Regulated Entity that is a party thereto.

Section 6.4 <u>No Conflict</u>. The execution, delivery and performance by Credit Parties, the Subsidiaries and the other Regulated Entities of the Credit Documents to which they are parties, and the consummation of the transactions contemplated by the Credit Documents, do *not* and will *not*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) violate, in any material respect, any provision of any Applicable Laws relating to any Credit Party, any Subsidiary or any other Regulated Entity, any of the Organizational Documents of any such Person, or any order, judgment or decree of any court or other agency of government binding on any such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) except as could *not* reasonably be expected to have a Material Adverse Effect, conflict with, result in a breach of or constitute (with due notice or lapse of time or both), a default under any other Contractual Obligations of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) result in, or require the creation or imposition of, any Lien upon any of the Property of any Credit Party, any Subsidiary or any other Regulated Entity (other than any Liens created under any of the Credit Documents in favor of the Collateral Agent, for the benefit of the holders of the Obligations), whether now owned or hereafter acquired; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) require any approval of stockholders, members or partners or any approval or consent of any Person under any Contractual Obligation of any Credit Party, any Subsidiary or any other Regulated Entity.

Section 6.5 <u>Governmental Consents</u>. The execution, delivery and performance by the Credit Parties, the Subsidiaries and the other Regulated Entities of the Credit Documents to which they are a party, and the consummation of the transactions contemplated by the Credit Documents, do *not* and will *not* require, as a condition to the effectiveness thereof, any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority, except for filings and recordings with respect to the Collateral to be made, or otherwise delivered to the Collateral Agent for filing and/or recordation, (a) as of the Closing Date, with respect to each Credit Document executed on the Closing Date, and (b) as of such later date of execution, with respect to each Credit Document executed after the Closing Date, and other filings, recordings or consents which have been obtained or made, as applicable.

Section 6.6 <u>Binding Obligation</u>. Each Credit Document has been duly executed and delivered by each Credit Party, each Subsidiary and each other Regulated Entity that is a party thereto, and is the legally valid and binding obligation of each such Person, enforceable against each such Person in accordance with its respective terms, except as may be limited by Debtor Relief Laws or by equitable principles relating to enforceability.

------

Section 6.7 <u>Financial Statements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The audited consolidated balance sheet, and related consolidated statements of income or operations and cash flows, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (to the extent required to be delivered in accordance with such Section) the unaudited combined balance sheet, and related combined statements of income or operations and cash flows, of the applicable Qualifying Reciprocal Entities, in each case of the foregoing, for the most recent Fiscal Year ended with respect to which the Borrower has delivered financial statements in accordance with <u>Section</u> <u>7.1(b</u>), and the summaries/schedules prepared by management of the Borrower related thereto, including the notes thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) were prepared in accordance with GAAP or SAP (as applicable) consistently applied throughout the period covered thereby, except as otherwise expressly noted therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) fairly present, in all material respects, the financial condition of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) on a consolidated basis or of the applicable Qualifying Reciprocal Entities on a combined basis (as the case may be) as of the date thereof and their respective results of operations and cash flows for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) show all material indebtedness and other liabilities, direct or contingent, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) or of the applicable Qualifying Reciprocal Entities (as the case may be) as of the date of such financial statements, including liabilities for taxes, material commitments and Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The unaudited consolidated balance sheet, and related consolidated statements of income or operations and cash flows, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (to the extent required to be delivered in accordance with such Section) the unaudited combined balance sheet, and related combined statements of income or operations and cash flows, of the applicable Qualifying Reciprocal Entities, in each case of the foregoing, for the most recent Fiscal Quarter ended with respect to which the Borrower has delivered financial statements in accordance with <u>Section</u> <u>7.1(a</u>), and the summaries/schedules prepared by management of the Borrower related thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) were prepared in accordance with GAAP or SAP (as applicable) consistently applied throughout the period covered thereby, except as otherwise expressly noted therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) fairly present, in all material respects, the financial condition of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) on a consolidated basis or of the applicable Qualifying Reciprocal Entities on a combined basis (as the case may be) as of the date thereof and their respective results of operations and cash flows for the period covered thereby, subject, in the case of each of the foregoing <u>clauses (b)(i</u>) and (<u>b)(ii</u>), to the absence of footnotes and to normal year-end audit adjustments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) show all material indebtedness and other liabilities, direct or contingent, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) or of the applicable Qualifying Reciprocal Entities (as the case may be) as of the date of such financial statements, including liabilities for taxes, material commitments and Indebtedness.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The forecasted consolidated balance sheet, and related forecasted consolidated statements of income or operations and cash flows, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (to the extent required to be delivered in accordance with such Section) the forecasted combined balance sheet, and related forecasted combined statements of income or operations and cash flows, of the applicable Qualifying Reciprocal Entities, in each case of the foregoing, most recently delivered by the Borrower in accordance with <u>Section</u> <u>7.1(d</u>) were prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair in light of the conditions existing at the time of delivery of such forecasted financial statements, and represented, at the time of delivery, the Borrower's good faith estimate of the future financial condition and performance of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) or of the applicable Qualifying Reciprocal Entities (as the case may be) based upon assumptions believed by the Borrower to be reasonable at the time.

Section 6.8 <u>No Material Adverse Effect; No Default or Event of Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Material Adverse Effect</u>. Since December 31, 2023, no event, circumstance or change has occurred that has caused or evidences, either in any case or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Default or Event of Default</u>. No Default or Event of Default has occurred and is continuing.

Section 6.9 <u>Tax Matters</u>. Each Credit Party, each Subsidiary, and each other Regulated Entity has (a) filed all federal and state tax returns required to be filed, and has paid all federal and state taxes levied or imposed upon them or their respective Property, income, businesses and franchises that are due and payable, and (b) filed all other material tax returns and reports required to be filed, and have paid all other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their respective Property, income, businesses and franchises otherwise due and payable, except: (i) those being actively contested in good faith and by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP; or (ii) *solely* with respect to the foregoing <u>clause (b</u>), to the extent that the failure to do so could *not* reasonably be expected to result, in the aggregate when taken together, in a Material Adverse Effect.

Section 6.10 <u>Properties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Title</u>. Each Credit Party, each Subsidiary and each other Regulated Entity has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) good, sufficient and legal title to (in the case of fee-owned Real Estate Assets),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) valid leasehold interests in (in the case of leasehold interests in real or personal Property), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) good title to (in the case of all other personal Property),

all of their respective Properties reflected in their financial statements and other information referred to in <u>Section</u> <u>6.7</u> and in the most recent financial statements delivered pursuant to <u>Section</u> <u>7.1</u>, in each case, except for assets disposed of since the date of such financial statements as permitted under <u>Section</u> <u>8.10</u>. All such Properties are free and clear of Liens other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Real Estate</u>. As of the Closing Date, <u>Schedule 6.10(b</u>) contains a true, accurate and complete list of all Real Estate Assets of the Credit Parties.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Intellectual Property</u>. Each Credit Party, each Subsidiary and each other Regulated Entity owns, or is validly licensed to use, all Intellectual Property that is necessary for the present conduct of its business, free and clear of Liens (other than Permitted Liens), without conflict with the rights of any other Person, unless the failure to own or benefit from such valid license could *not*, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. To the knowledge of any Authorized Officer of any Credit Party, no Credit Party, Subsidiary or other Regulated Entity is infringing, misappropriating, diluting, or otherwise violating the Intellectual Property rights of any other Person unless such infringement, misappropriation, dilution or violation could *not*, individually or in the aggregate when taken together, reasonably be expected to have a Material Adverse Effect.

Section 6.11 <u>Environmental Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Credit Party, nor any of its Subsidiaries, any other Regulated Entity nor any of their respective current Facilities (*solely* during, and with respect to, such Person's ownership thereof) or operations, and to their knowledge, no former Facilities (*solely* during, and with respect to, any Credit Party's, its Subsidiary's or any other Regulated Entity's ownership thereof), are subject to any outstanding order, consent decree or settlement agreement with any Person relating to any Environmental Law, any Environmental Claim, or any Hazardous Materials Activity that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Credit Party, nor any of its Subsidiaries nor any other Regulated Entity, has received any letter or request for information under Section 104 of the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9604) or any comparable state law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there are and, to the knowledge of any Authorized Officer of any Credit Party, have been, no Hazardous Materials Activities that could reasonably be expected to form the basis of an Environmental Claim against any Credit Party, any Subsidiary or any other Regulated Entity that, individually or in the aggregate when taken together, could reasonably be expected to have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) no Credit Party, Subsidiary or other Regulated Entity has filed any notice under any Environmental Law indicating past or present treatment of Hazardous Materials at any Facility (*solely* during, and with respect to, such Credit Party's, Subsidiary's or other Regulated Entity's ownership thereof), and no Credit Party's, Subsidiary's or other Regulated Entity's respective operations involve the generation, transportation, treatment, storage or disposal of hazardous waste, as defined under 40 C.F.R. Parts 260–270 or any equivalent state rule defining hazardous waste, except in compliance with all applicable Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Compliance with all current requirements pursuant to or under Environmental Laws could *not* be reasonably expected to have, individually or in the aggregate when taken together, a Material Adverse Effect.

Section 6.12 <u>No Defaults</u>. No Credit Party, Subsidiary or other Regulated Entity is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any of its Contractual Obligations, except, in each case, where the consequences, direct or indirect, of such default or defaults, if any, could *not* reasonably be expected to have a Material Adverse Effect.

Section 6.13 <u>No Litigation or other Adverse Proceedings</u>. There are no Adverse Proceedings that: (a) purport to affect or pertain to this Agreement or any other Credit Document, or any of the transactions contemplated hereby; or (b) could reasonably be expected to have a Material Adverse Effect. No Credit Party, Subsidiary or other Regulated Entity is subject to, or is in default with respect to, any final judgments, writs, injunctions, decrees, rules or regulations of any Governmental Authority that, individually or in the aggregate when taken together, could reasonably be expected to have a Material Adverse Effect.

------

Section 6.14 <u>Information Regarding Credit Parties, Subsidiaries and Other Regulated Entities</u>. Set forth on <u>Schedule 6.14</u> is the jurisdiction of incorporation or formation (as the case may be), the exact legal name (and for the prior five (5) years or since the date of its incorporation or formation (as the case may be) has been) and the true and correct U.S. taxpayer identification number (or foreign equivalent, if any) of each Credit Party, each Subsidiary and each other Regulated Entity as of the Closing Date, together with an indication of whether such Person is a Credit Party, a Qualifying Reciprocal Entity, a Regulated Subsidiary, or a Subsidiary (other than a Regulated Subsidiary or a Credit Party).

Section 6.15 <u>Governmental Regulation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Credit Party, Subsidiary or other Regulated Entity is subject to regulation under the Investment Company Act of 1940. No Credit Party, Subsidiary or other Regulated Entity is an "investment company" or a company "controlled" by a "registered investment company" or a "principal underwriter" of a "registered investment company" as such terms are defined in the Investment Company Act of 1940.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Credit Party, Subsidiary or other Regulated Entity is an "enemy" or an "ally of the enemy" within the meaning of Section 2 of the Trading with the Enemy Act of the United States of America (50 U.S.C. App. §§ 1 *et seq*.), as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the knowledge of any Authorized Officer of any Credit Party, no Credit Party, Subsidiary or other Regulated Entity is in violation of: (A) the Trading with the Enemy Act, as amended; (B) any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto; or (C) the Patriot Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No Credit Party, Subsidiary or other Regulated Entity: (A) is a blocked person described in Section 1 of the Anti-Terrorism Order; or (B) to the knowledge of any Authorized Officer of any Credit Party, engages in any dealings or transactions, or is otherwise associated, with any such blocked person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Credit Party, each Subsidiary and each other Regulated Entity, and each of their respective directors and officers and, to the knowledge of any Authorized Officer of any Credit Party, each of their respective employees and agents, are in compliance with applicable Sanctions and are *not* engaged in any activity that would reasonably be expected to result in any Credit Party, any Subsidiary or any other Regulated Entity being designated as a Sanctioned Person. No Credit Party, Subsidiary or other Regulated Entity nor, to the knowledge of any Authorized Officer of any Credit Party, any of their respective Affiliates are in violation of any of the country or list based economic and trade sanctions administered and enforced by OFAC that are described or referenced at http://www.ustreas.gov/offices/enforcement/ofac/ or as otherwise published from time to time.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Credit Party, Subsidiary or other Regulated Entity, nor, to the knowledge of any Authorized Officer of any Credit Party, any of their respective directors, officers, employees or Affiliates: (A) is a Sanctioned Person; (B) has any of its Property located in a Sanctioned Country (unless approved by the Lenders); or (C) derives any of its operating income from investments in, or transactions with Sanctioned Persons (unless approved by the Lenders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The proceeds of any Credit Extension or other transaction contemplated by this Agreement or any other Credit Document have *not* been used: (A) in violation of any Sanctions; (B) to fund any operations in, finance any investments or activities in or make any payments to, a Sanctioned Person or a Sanctioned Country; or (C) in any other manner that would result in a violation of Sanctions by any Person (including the Administrative Agent, the Collateral Agent, the Lenders or any other Person participating in the Credit Extensions, whether as an underwriter, advisor, investor or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Credit Party, each Subsidiary and each other Regulated Entity, and, to the knowledge of any Authorized Officer of any Credit Party, each of their respective directors, officers, employees and Affiliates, is in material compliance with Anti-Corruption Laws. No Credit Party, Subsidiary or other Regulated Entity has made a payment, offering, or promise to pay, or authorized the payment of, money or anything of value: (i) in order to assist in obtaining or retaining business for or with, or directing business to, any foreign official, foreign political party, party official or candidate for foreign political office; (ii) to a foreign official, foreign political party or party official or any candidate for foreign political office; and (iii) with the intent to induce the recipient to misuse his or her official position to direct business wrongfully to any such member or to any other Person, in violation of any Anti-Corruption Law*.* No part of the proceeds of any Credit Extension or other transaction contemplated by this Agreement or any other Credit Document will violate Anti-Corruption Laws*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent applicable, each Credit Party, each Subsidiary and each other Regulated Entity is in compliance with Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001) (as amended from time to time, the "*<u>Patriot Act</u>*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No Credit Party, Subsidiary or other Regulated Entity is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any Margin Stock. No part of the proceeds of any Credit Extension made to any Credit Party will be used:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to purchase or carry any such Margin Stock, or to extend credit to others for the purpose of purchasing or carrying any such Margin Stock or for any purpose that violates, or is inconsistent with, the provisions of Regulation T, Regulation U or Regulation X of the Federal Reserve Board, as in effect from time to time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to finance or refinance any: (A) commercial paper issued by any Credit Party, Subsidiary or other Regulated Entity; or (B) any other Indebtedness, except for Indebtedness that a Credit Party incurred for general corporate or working capital purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No Credit Party, Subsidiary or other Regulated Entity is an Affected Financial Institution.

Section 6.16 <u>Employee Matters</u>. No Credit Party, Subsidiary or other Regulated Entity is engaged in any unfair labor practice that could reasonably be expected to have a Material Adverse Effect. There is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no unfair labor practice complaint pending against any Credit Party, any Subsidiary or any other Regulated Entity, or to the knowledge of any Authorized Officer of any Credit Party, threatened in writing against any of them before the National Labor Relations Board, and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement that is so pending against any Credit Party, any Subsidiary or any other Regulated Entity or, to the knowledge of any Authorized Officer of any Credit Party, threatened in writing against any of them,

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no strike or work stoppage in existence or, to the knowledge of any Authorized Officer of any Credit Party, threatened in writing that involves any Credit Party, any Subsidiary or any other Regulated Entity, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to the knowledge of any Authorized Officer of any Credit Party, no union representation question existing with respect to the employees of any Credit Party, any Subsidiary or any other Regulated Entity and, to the knowledge of any Authorized Officer of any Credit Party, no union organization activity that is taking place,

except (with respect to any matter specified in <u>clause (a</u>) through (<u>c</u>) above, either individually or in the aggregate when taken together) such as could *not* reasonably be expected to have a Material Adverse Effect.

Section 6.17 <u>Pension Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as could *not* reasonably be expected to have a Material Adverse Effect, each Credit Party, each Subsidiary and each other Regulated Entity is in compliance with all applicable provisions and requirements of ERISA and the Internal Revenue Code and the regulations and published interpretations thereunder with respect to its Pension Plan, and have performed all their obligations under each Pension Plan in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Pension Plan that is intended to qualify under Section 401(a) of the Internal Revenue Code has received a favorable determination letter or is the subject of a favorable opinion letter from the Internal Revenue Service indicating that such Pension Plan is so qualified and, to the knowledge of any Authorized Officer of any Credit Party, nothing has occurred subsequent to the issuance of such determination letter that would cause such Pension Plan to lose its qualified status, except where such event could *not* reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as could *not* reasonably be expected to have a Material Adverse Effect, no liability to the PBGC (other than required premium payments), the Internal Revenue Service, any Pension Plan (other than for routine claims and required funding obligations in the ordinary course) or any trust established under Title IV of ERISA has been incurred by any Credit Party, any Subsidiary, any other Regulated Entity, or any of the ERISA Affiliates of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as would *not* reasonably be expected to result in liability to the Credit Parties, Subsidiaries and other Regulated Entities in *excess* of the Threshold Amount, no ERISA Event has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except to the extent required under Section 4980B of the Internal Revenue Code and Section 601 *et seq*. of ERISA or similar state laws, and except as could *not* reasonably be expected to have a Material Adverse Effect, no Pension Plan provides health or welfare benefits (through the purchase of insurance or otherwise) for any retired or former employee of any Credit Party, any Subsidiary or any other Regulated Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) As of the Closing Date, no Credit Party, or any Subsidiary or any other Regulated Entity, is a Benefit Plan.

------

Section 6.18 <u>Solvency</u>. The Borrower individually is, and the Credit Parties, Subsidiaries and other Regulated Entities taken as a whole are, and, upon the incurrence of any Credit Extension on any date on which this representation and warranty is made (including, without limitation, the Closing Date), each will be, Solvent.

Section 6.19 <u>Compliance with Laws</u>. Each Credit Party, each Subsidiary and each other Regulated Entity is in compliance with: (a) the Patriot Act and OFAC rules and regulations, as provided in <u>Section</u> <u>6.15</u>; and (b) except such non-compliance with such other Applicable Laws that, individually or in the aggregate when taken together, could *not* reasonably be expected to result in a Material Adverse Effect, all other Applicable Laws. Each Credit Party, each Subsidiary and each other Regulated Entity possesses all certificates, authorities or permits issued by appropriate Governmental Authorities necessary to conduct the business now operated by them and the failure of which to have could reasonably be expected to have a Material Adverse Effect, and have *not* received any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit the failure of which to have or retain could reasonably be expected to have a Material Adverse Effect.

Section 6.20 <u>Disclosure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No representation or warranty of any Credit Party or any Subsidiary contained in any Credit Document to which it is a party, or in any other documents, certificates or written statements furnished to the Lenders by, or on behalf of, any Credit Party or any Subsidiary for use in connection with the transactions contemplated hereby (other than projections and pro forma financial information contained in such materials), contains any untrue statement of a material fact or omits to state a material fact (known to any Authorized Officer of a Credit Party or Subsidiary, in the case of any document *not* furnished by any of them) necessary in order to make the statements contained herein or therein *not* misleading in any material manner in light of the circumstances in which the same were made. Any projections and pro forma financial information contained in such materials are based upon good faith estimates and assumptions believed by the Credit Parties to be reasonable at the time made, it being recognized by the Administrative Agent and the Lenders that such projections as to future events are *not* to be viewed as facts and that actual results during the period or periods covered by any such projections may differ from the projected results and that such differences may be material. There are no facts known to any Credit Party (other than matters of a general economic nature) that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect and that have *not* been disclosed herein or in such other documents, certificates and statements furnished to the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the Closing Date or as of such later date on which any Beneficial Ownership Certification was delivered to the Administrative Agent or a Lender, the information included in each Beneficial Ownership Certification is true and correct in all respects.

Section 6.21 <u>Insurance</u>. The properties of the Credit Parties and Subsidiaries are insured with financially sound and licensed insurance companies, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the applicable Credit Party or Subsidiary operates. The insurance coverage of the Credit Parties and Subsidiaries as in effect on the Closing Date is outlined as to carrier, policy number, expiration date, type, amount and deductibles on <u>Schedule 6.21</u>.

Section 6.22 <u>Security Agreement</u>. The Security Agreement is effective to create in favor of the Collateral Agent, for the ratable benefit of the holders of the Obligations, a legal, valid and enforceable security interest in the Collateral identified therein, except to the extent the enforceability thereof may be limited by applicable Debtor Relief Laws affecting creditors' rights generally and by equitable principles of law (regardless of whether enforcement is sought in equity or at law), and the Security Agreement shall create a fully perfected Lien on, and security interest in, all right, title and interest of the obligors thereunder in such Collateral, in each case prior and superior in right to any other Lien (other than Permitted Liens):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to any such Collateral that is a "security" (as such term is defined in the UCC) and is evidenced by a certificate, when such Collateral is delivered to the Collateral Agent with duly executed stock powers with respect thereto;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any such Collateral that is a "security" (as such term is defined in the UCC) but is *not* evidenced by a certificate, when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the pledgor or when "control" (as such term is defined in the UCC) is established by the Collateral Agent over such interests in accordance with the provision of Section 8–106 of the UCC, or any successor provision; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to any such Collateral that is *not* a "security" (as such term is defined in the UCC), when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the pledgor (to the extent such security interest can be perfected by filing under the UCC).

Section 6.23 <u>Mortgages</u>. Each of the Mortgages is effective to create in favor of the Collateral Agent, for the ratable benefit of the holders of the Obligations, a legal, valid and enforceable security interest in the Real Estate Assets identified therein in conformity with Applicable Laws, except to the extent the enforceability thereof may be limited by applicable Debtor Relief Laws affecting creditors' rights generally and by equitable principles of law (regardless of whether enforcement is sought in equity or at law), and, when the Mortgages and UCC financing statements in appropriate form are duly recorded at the locations identified in the Mortgages, and recording or similar taxes, if any, are paid, the Mortgages shall constitute a legal, valid and enforceable Lien on, and security interest in, all right, title and interest of the grantors thereunder in such Real Estate Assets, in each case prior and superior in right to any other Lien (other than Permitted Liens).

Section 6.24 <u>No Casualty</u>. Neither the businesses nor the Properties of any Credit Party, any Subsidiary, or any other Regulated Entity are affected by any fire, explosion, accident, drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty (whether or not covered by insurance) that, either individually or in the aggregate when taken together, could reasonably be expected to have a Material Adverse Effect.

**Article 7** 

**<u>AFFIRMATIVE COVENANTS</u>** 

Each Credit Party covenants and agrees that, until the Obligations shall have been Paid in Full, such Credit Party shall perform, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to perform, all of the covenants set forth in this <u>Article 7</u>.

------

Section 7.1 <u>Financial Statements and Other Reports</u>. The Borrower will deliver, or will cause to be delivered, to the Administrative Agent (for prompt further distribution by the Administrative Agent to each Lender):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Quarterly Financial Statements</u>. By *no later than* the date that is forty-five (45) consecutive calendar days after the end of each Fiscal Quarter (including, for purposes of clarity, the last Fiscal Quarter of each Fiscal Year), (i) the unaudited consolidated and consolidating balance sheet of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) as of the end of such Fiscal Quarter together with the related consolidated and consolidating statements of income or operations and cash flows of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) for such Fiscal Quarter, and for the period from the beginning of the then current Fiscal Year through the end of such Fiscal Quarter, and (ii) *solely* to the extent that the financial results and operations of any Qualifying Reciprocal Entities are *not* included or otherwise accounted for on a non-controlling interest basis in any such consolidated and/or consolidating financial statements, the unaudited combined and combining balance sheet of such Qualifying Reciprocal Entities as of the end of such Fiscal Quarter together with the related combined and combining statements of income or operations and cash flows of such Qualifying Reciprocal Entities for such Fiscal Quarter, and for the period from the beginning of the then current Fiscal Year through the end of such Fiscal Quarter, in each case of the foregoing <u>clauses (a)(i</u>) and (<u>a)(ii</u>), setting forth, in each case in comparative form, the corresponding figures for the corresponding periods of the previous Fiscal Year, all in reasonable detail and consistent, in all material respects, with the manner of presentation as of the Closing Date, together with a Financial Officer Certification with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Financial Statements</u>. By *no later than* the date that is one hundred twenty (120) consecutive calendar days after the end of each Fiscal Year:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) the audited consolidated and consolidating balance sheet of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) as of the end of such Fiscal Year together with the related audited consolidated and consolidating statements of income or operations and cash flows of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) for such Fiscal Year, and (B) *solely* to the extent that the financial results and operations of any Qualifying Reciprocal Entities are *not* included or otherwise accounted for on a non-controlling interest basis in any such consolidated and/or consolidating financial statements, the unaudited combined and combining balance sheet of such Qualifying Reciprocal Entities as of the end of such Fiscal Year together with the related unaudited combined and combining statements of income or operations and cash flows of such Qualifying Reciprocal Entities for such Fiscal Year, in each case of the foregoing <u>clauses (b)(i)(A</u>) and (<u>b)(i)(B</u>), setting forth, in each case in comparative form, the corresponding figures for the previous Fiscal Year, all in reasonable detail and consistent, in all material respects, with the manner of presentation as of the Closing Date, together with a Financial Officer Certification with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to such audited consolidated financial statements of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), a report thereon of PricewaterhouseCoopers LLP or other independent certified public accountants selected by the Borrower and reasonably acceptable to the Administrative Agent (it being understood and agreed that any of the other "Big Four" accounting firms, Grant Thornton, Alvarez & Marsal, RSM US LLP and BDO USA LLP are each acceptable to the Administrative Agent), which report shall be unqualified as to going concern and scope of audit (except to the extent any qualification results *solely* from a current maturity of any Indebtedness under this Agreement) and shall state that such consolidated financial statements fairly present, in all material respects, the consolidated financial position of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) as of the dates indicated, and the results of their operations and cash flows for the periods indicated, all in conformity with GAAP applied on a basis consistent with prior years (except as otherwise disclosed in such financial statements), and <u>further</u>, that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with GAAP;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Compliance Certificate; Summaries / Schedules</u>. Together with each delivery of the financial statements pursuant to <u>clauses (a</u>) or (<u>b</u>) above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a duly completed Compliance Certificate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) summaries/schedules prepared by management of the Borrower, accompanied by a Financial Officer Certification with respect thereto, setting forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) consolidating and (if applicable) combining detail in respect of such financial statements in form and scope acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) principal and interest payments made by the Credit Parties and Subsidiaries (other than any Regulated Entities) with respect to intercompany Indebtedness owing by any Credit Party or Subsidiary (other than any Regulated Entity) to any Regulated Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) intercompany Indebtedness owing by any Credit Party or Subsidiary (other than any Regulated Entity) to any Regulated Entity that is eliminated upon consolidation in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Annual Budget</u>. Within sixty (60) consecutive calendar days following the end of each Fiscal Year, forecasts prepared by management of the Borrower, in form reasonably satisfactory to the Administrative Agent and the Required Lenders, of (i) the consolidated and consolidating balance sheet of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) together with the related consolidated and consolidating statements of income or operations and cash flows of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (ii) *solely* to the extent that the forecasted financial results and operations of any Qualifying Reciprocal Entities are *not* included or otherwise accounted for on a non-controlling interest basis in any such forecasted consolidated and/or consolidating financial statements, the combined and combining balance sheet of such Qualifying Reciprocal Entities together with the related combined and combining statements of income or operations and cash flows for such Qualifying Reciprocal Entities, in each case of the foregoing <u>clauses (d)(i</u>) and (<u>d)(ii</u>), prepared on a quarterly basis for the immediately following Fiscal Year (including, for purposes of clarity, any such Fiscal Year during which any of the Revolving Commitment Termination Date, the DDTL Commitment Termination Date or any applicable Maturity Date occurs);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Statutory Accounting Principles Statement</u>. Within forty-five (45) consecutive calendar days following the end of each of the first (1<sup>st</sup>) three (3) Fiscal Quarters of each Fiscal Year, and within ninety (90) consecutive calendar days following the end of each Fiscal Year, SAP statements for each Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Information Regarding Credit Parties</u>. Each Credit Party will furnish to the Collateral Agent prior written notice of any change in such Credit Party's: (i) legal name; (ii) corporate structure; (iii) Federal Taxpayer Identification Number; or (iv) jurisdiction of incorporation, formation or organization, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Securities and Exchange Commission Filings</u>. Promptly after the same are filed, copies of all annual, regular, periodic and special reports and registration statements that the Borrower may file, or be required to file, with the SEC under Section 13 or 15(d) of the Exchange Act, <u>provided</u>, <u>that</u>, any documents required to be delivered pursuant to this <u>clause (g</u>) shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower's website, or (ii) on which such documents are posted on the Borrower's behalf on SyndTrak or other

------

relevant website, if any to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent). Notwithstanding anything to the contrary, as to any information contained in materials furnished pursuant to this <u>clause (g</u>), the Borrower shall not be separately required to furnish such information under <u>clauses (a</u>) or (<u>b</u>) above, or pursuant to any other requirement of this Agreement or any other Credit Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Notice of Default and Material Adverse Effect</u>. Promptly (and, in any event, within two (2) Business Days) upon any Authorized Officer of any Credit Party obtaining knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) of any condition or event that constitutes a Default or an Event of Default, or that notice has been given to any Credit Party, any Subsidiary, or any other Regulated Entity with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that any Person has given any notice to any Credit Party, any Subsidiary or any other Regulated Entity, or taken any other action with respect to any event or condition set forth in <u>Section</u> <u>9.1(b</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) of the occurrence of any Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) of the institution, or any Credit Party's, any Subsidiary's or any other Regulated Entity's receipt of any threat in writing of the institution, of any action, suit, investigation or proceeding against or affecting any Credit Party, any Subsidiary or any other Regulated Entity, including any such investigation or proceeding by any Insurance Regulatory Authority or other Governmental Authority (other than routine periodic inquiries, investigations or reviews), that could reasonably be expected, individually or in the aggregate when taken together, to have a Material Adverse Effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) of the receipt by any Credit Party, any Subsidiary, or any other Regulated Entity from any Insurance Regulatory Authority or other Governmental Authority of any notice of any actual or threatened suspension, limitation or revocation of, failure to renew, imposition of any restraining order, escrow or impoundment of funds in connection with, or the taking of any other materially adverse action in respect of, any license, permit, accreditation or authorization of any Credit Party, any Subsidiary or any other Regulated Entity, where such action could reasonably be expected to have a Materially Adverse Effect;

deliver to the Administrative Agent a certificate of its Authorized Officers specifying the nature and period of existence of such condition, event or change, or specifying the notice given and action taken by any such Person and the nature of such claimed Event of Default, Default, event or condition or change, and what action the Credit Parties, Subsidiaries and other Regulated Entities have taken, are and/or and propose to take with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>ERISA</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Promptly upon becoming aware of the occurrence of, or forthcoming occurrence of, any ERISA Event, a written notice specifying the nature thereof, what action(s) any Credit Party, any Subsidiary, any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, has taken, is taking and/or proposes to take with respect thereto and, when known, any action taken or threatened by the Internal Revenue Service, the Department of Labor or the PBGC with respect thereto; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) promptly upon reasonable request of the Administrative Agent, copies of each Schedule B (*Actuarial Information*) to the annual report (Form 5500 Series) filed by any Credit Party, any Subsidiary or any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, with respect to each Pension Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) promptly after their receipt, copies of all notices received by any Credit Party, any Subsidiary or any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, from a Multiemployer Plan sponsor concerning an ERISA Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Securities and Exchange Commission Investigations</u>. Promptly and, in any event, within five (5) Business Days after receipt thereof by any Credit Party, any Subsidiary or any other Regulated Entity thereof, copies of each notice or other correspondence received from the Securities and Exchange Commission (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or other inquiry by such agency regarding financial or other operational results of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Asset Sales, Involuntary Dispositions and Debt Transactions</u>. Concurrently with delivery of each Compliance Certificate, notice of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the occurrence and amount of Net Cash Proceeds of any Asset Sale or Involuntary Disposition (in each case, regardless of whether the Net Cash Proceeds therefrom fall below the threshold amounts set forth in <u>Section</u> <u>2.11(c)(ii</u>) and/or have already been, or are anticipated to be, re-invested pursuant to the reinvestment provisions thereof) in *excess* of the *product of* (A) fifty percent (50.0%), *multiplied by* (B) the Threshold Amount; and 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the occurrence of any Debt Transactions and the amount of Net Cash Proceeds therefrom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Changes in Accounting or Financial Reporting Practices</u>. Promptly and, in any event, within ten (10) Business Days after implementation thereof, notice of any material change in accounting policies or financial reporting practices of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Insurance Filings</u>. Within fifteen (15) Business Days after the required filing date, copies of any annual statement or quarterly statement required to be filed with any Insurance Regulatory Authority by any Credit Party, any Subsidiary or any other Regulated Entity, in each case, in the form filed with such Insurance Regulatory Authority in conformity with the requirements thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Other Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Promptly upon their becoming available, copies of all financial statements, reports, notices and proxy statements (other than minutes of the board of directors or managers (or equivalent governing body) thereof) sent or made available generally by the Borrower to its respective security holders acting in such capacity, or by any Subsidiary or any other Regulated Entity to its respective security holders, if any, other than the Borrower, another Credit Party, another Subsidiary or another Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such other information and data with respect to the Credit Parties, Subsidiaries and other Regulated Entities as from time to time may be reasonably requested by the Administrative Agent (or by any Lender through the Administrative Agent); and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) prompt written notice of any change to the information set forth in any Beneficial Ownership Certification that would result in a change to the list of beneficial owners set forth therein.

Each notice pursuant to <u>clauses (i</u>) and (<u>j</u>) above shall be accompanied by a statement of an Authorized Officer of the Borrower: (x) setting forth details of the occurrence referred to therein; and (y) stating what action(s) the Credit Parties, Subsidiaries and other Regulated Entities have taken and/or propose to take with respect thereto. Each notice pursuant to <u>clause (h</u>) above shall describe with particularity any and all provisions of this Agreement and any other Credit Document that have been breached.

Section 7.2 <u>Existence</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, at all times preserve and keep in full force and effect (a) its existence, and (b) except to the extent that failure to do so would *not* reasonably be expected to result in a Material Adverse Effect, all rights and franchises, licenses and permits material to its business, except to the extent permitted by <u>Section</u> <u>8.10</u> or not constituting an Asset Sale hereunder.

Section 7.3 <u>Payment of Taxes and Claims</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, pay (a) all federal, state and other material taxes imposed upon it or any of its respective Properties or in respect of any of its income, businesses or franchises, before any penalty or fine accrues thereon, and (b) all claims (including claims for labor, services, materials and supplies) for sums that have become due and payable and that by law have or may become a Lien upon any of its Properties, prior to the time when any penalty or fine shall be incurred with respect thereto; <u>provided</u>, <u>that</u>, no such tax or claim need be paid if it is being contested in good faith by appropriate proceedings promptly instituted and diligently conducted, so long as (i) adequate reserve or other appropriate provision, as shall be required in conformity with GAAP shall have been made therefor, (ii) in the case of a tax or claim which has or may become a Lien against any of the Collateral, such contest proceedings conclusively operate to stay the sale of any portion of the Collateral to satisfy such tax or claim, and (iii) the failure to make payment pending such contest could *not* reasonably be expected to result in a Material Adverse Effect. No Credit Party will, nor will it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, file, or consent to the filing of, any consolidated or combined income tax return with any Person other than the Credit Parties, Subsidiaries and other Regulated Entities.

Section 7.4 <u>Maintenance of Properties</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, maintain, or cause to be maintained, in good repair, working order and condition, ordinary wear and tear excepted, all material properties used or useful in the businesses of the Credit Parties, Subsidiaries and other Regulated Entities, and from time to time will make, or cause to be made, all appropriate repairs, renewals and replacements thereof, except where failure to do so would *not* materially adversely affect the operations of the businesses of the Credit Parties, Subsidiaries and other Regulated Entities, taken as a whole.

Section 7.5 <u>Insurance</u>. The Credit Parties will maintain, or cause to be maintained, with financially sound and licensed insurers, property insurance, such public liability insurance, third party property damage insurance with respect to liabilities, losses or damage in respect of the Properties and businesses of the Credit Parties as may customarily be carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses, in each case in such amounts, with such deductibles, covering such risks and otherwise on such terms and conditions as shall be customary

------

for such Persons. Without limiting the generality of the foregoing, each Credit Party will maintain, or cause to be maintained: (a) flood insurance with respect to each Flood Hazard Property, if any, that is located in a community that participates in the National Flood Insurance Program, in each case, in compliance with any applicable regulations of the Federal Reserve Board; and (b) replacement value casualty insurance on the Collateral under such policies of insurance, with such insurance companies, in such amounts, with such deductibles, and covering such risks as are at all times carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses. Each such policy of insurance shall: (i) name the Collateral Agent, on behalf of the holders of the Obligations, as an additional insured thereunder as its interests may appear; and (ii) in the case of each property insurance policy, contain a loss payable clause or endorsement, reasonably satisfactory in form and substance to the Collateral Agent, that names the Collateral Agent, on behalf of the holders of the Obligations, as the loss payee thereunder and provides for *at least* thirty (30) days' prior written notice (or such shorter prior written notice as may be agreed by the Collateral Agent in its reasonable discretion) to the Collateral Agent of any modification or cancellation of such policy.

Section 7.6 <u>Inspections</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, permit representatives and independent contractors of the Administrative Agent (which may include representatives of Lenders) to visit and inspect any of its properties, to conduct field audits, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; <u>provided</u>, <u>that</u>, (i) when an Event of Default exists the Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and without advance notice, and (ii) unless an Event of Default has occurred and is continuing, the Borrower shall *not* be responsible for the expense of any such inspections other than one (1) inspection per Fiscal Year by the Administrative Agent. Notwithstanding anything to the contrary in this <u>Section</u> <u>7.6</u>, neither any Credit Party nor any Subsidiary (including any Regulated Subsidiary) or any other Regulated Entity will be required to disclose, or to permit the inspection or discussion of, any document, information or other matter (x) in respect of which disclosure to the Administrative Agent or any Lender (or their representatives) is prohibited by Applicable Law, fiduciary duty or any binding agreement, or (y) that is subject to attorney client or similar privilege or constitutes attorney work product.

Section 7.7 <u>Lenders Meetings</u>. The Borrower will, upon the request of the Administrative Agent or the Required Lenders, participate in a meeting of the Administrative Agent and the Lenders once during each Fiscal Year to be held at the Borrower's corporate offices (or at such other physical location, or in lieu thereof being held "virtually" by telephone or video conference, in each case, as may be agreed to by the Borrower and the Administrative Agent) at such time as may be agreed to by the Borrower and the Administrative Agent.

Section 7.8 <u>Compliance with Laws and Material Contracts</u>. Each Credit Party will comply, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and all other Persons (including any other Regulated Entities), if any, on or occupying any Facilities to comply, with (a) the Patriot Act and OFAC rules and regulations, and, (b) except where the failure to do so would *not* reasonably be expected to have a Material Adverse Effect, (i) all other Applicable Laws, and (ii) all Material Contracts entered into by any Credit Party, any Subsidiary (including any Regulated Subsidiary) or any other Regulated Entity.

------

Section 7.9 <u>Use of Proceeds</u>. The Credit Parties shall use the proceeds of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans; Delayed Draw Term Loan</u>. All Revolving Loans and the Delayed Draw Term Loan *solely* (i) to finance permitted Investments in Regulated Entities, (ii) to finance Capital Expenditures, and (iii) for working capital and other general corporate purposes (and, in each case of the foregoing, to pay transaction fees, costs and expenses in connection therewith);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term Loan A</u>. The Term Loan A *solely* to (i) finance the payment on the Closing Date of the Closing Date Distribution, (ii) refinance, in full, all existing Indebtedness of the Credit Parties, Subsidiaries and other Regulated Entities that is *not* permitted to remain outstanding after the Closing Date pursuant to this Agreement, and (iii) pay transaction fees, costs and expenses in connection with the closing of this Agreement and the other Credit Documents on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Incremental Term Loans</u>. Each Incremental Term Loan *solely* for the purpose(s) set forth in the applicable Incremental Facility Agreement establishing such Incremental Term Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Letters of Credit</u>. All Letters of Credit *solely* for general corporate purposes;

in each case of the foregoing <u>clauses (a</u>) through (<u>d</u>), to the extent *not* in violation of any Applicable Laws or the terms of the Credit Documents.

Section 7.10 <u>Environmental Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Environmental Disclosure</u>. Each Credit Party will deliver to the Administrative Agent and the Lenders, with reasonable promptness, such documents and/or information as from time to time may be reasonably requested by the Administrative Agent or any Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Hazardous Materials Activities, Etc</u>. Each Credit Party shall promptly take, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to promptly take, any and all actions necessary to (i) cure any violation of applicable Environmental Laws by such Credit Party, Subsidiary or other Regulated Entity that would reasonably be expected to have, individually or in the aggregate when taken together, a Material Adverse Effect, and (ii) respond to any Environmental Claim against any such Credit Party, Subsidiary or other Regulated Entity and discharge any obligations it may have to any Person thereunder where failure to do so would reasonably be expected to result, individually or in the aggregate when taken together, in a Material Adverse Effect.

Section 7.11 <u>Additional Real Estate Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that any Credit Party owns or acquires a Real Estate Asset, then such Credit Party, by *no later than* ninety (90) consecutive calendar days (or by such later date as may be agreed in writing by the Collateral Agent in its sole discretion) after acquiring such Real Estate Asset, shall take all such actions and execute and deliver, or cause to be executed and delivered, all such Mortgages, documents, instruments, agreements, opinions and certificates similar to those described in <u>clause (b</u>) immediately below that the Collateral Agent shall reasonably request to create in favor of the Collateral Agent, for the benefit of the holders of the Obligations, a valid and, subject to any filing and/or recording referred to herein, enforceable Lien on, and security interest in such Real Estate Asset. The Administrative Agent may, in its reasonable judgment, grant extensions of time for compliance or exceptions with respect to the provisions of this <u>Section</u> <u>7.11</u> by any Credit Party. In addition to the foregoing, the applicable Credit Party shall, at the request of the Required Lenders, deliver, from time to time, to the Administrative Agent such appraisals as are required by Applicable Law of Real Estate Assets with respect to which the Collateral Agent has been granted a Lien.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In order to create in favor of the Collateral Agent, for the benefit of the holders of the Obligations, a valid and, subject to any filing and/or recording referred to herein, enforceable Lien on, and security interest in, any Real Estate Asset that is prior and superior in right to any other Lien (other than Permitted Liens), the Administrative Agent and the Collateral Agent (with copies sufficient for each Lender) shall have received from the applicable Credit Party with respect to such Real Estate Asset:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fully executed and notarized Mortgages, in proper form for recording in all appropriate places in all applicable jurisdictions, encumbering such Real Estate Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an opinion of counsel (which counsel shall be reasonably satisfactory to the Collateral Agent) in each state in which such Real Estate Asset is located with respect to the enforceability of the form(s) of Mortgages to be recorded in such state and such other matters as the Collateral Agent may reasonably request, in each case in form and substance reasonably satisfactory to the Collateral Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) ALTA mortgagee title insurance policies or unconditional commitments therefor issued by one or more title companies reasonably satisfactory to the Collateral Agent (each, a "*<u>Title Policy</u>*") with respect to such Real Estate Asset, in amounts *not less than* the fair market value of such Real Estate Asset, together with a title report issued by a title company with respect thereto and copies of all recorded documents listed as exceptions to title or otherwise referred to therein, each in form and substance reasonably satisfactory to the Collateral Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) evidence reasonably satisfactory to the Collateral Agent that the applicable Credit Party has paid to the title company or to the appropriate Governmental Authorities all expenses and premiums of the title company and all other sums required in connection with the issuance of each Title Policy and all recording and stamp taxes (including mortgage recording and intangible taxes) payable in connection with recording the Mortgage for such Real Estate Asset in the appropriate real estate records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a recently issued flood zone determination certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) evidence of flood insurance with respect to each Flood Hazard Property that is located in a community that participates in the National Flood Insurance Program, in each case in compliance with any applicable regulations of the Federal Reserve Board, in form and substance reasonably satisfactory to the Collateral Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if an exception to the Title Policy with respect to any Real Estate Asset subject to a Mortgage would arise without such ALTA surveys, ALTA surveys of such Real Estate Asset; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) reports and other reasonable information, in form, scope and substance reasonably satisfactory to the Administrative Agent, regarding environmental matters relating to such Real Estate Asset.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in the foregoing of this <u>Section</u> <u>7.11</u>, no Mortgage shall be granted with respect to any Real Estate Asset until the Administrative Agent shall have received written confirmation from each Lender of the satisfactory completion by such Lender of flood diligence with respect to such Real Estate Asset.

Section 7.12 <u>Pledge of Personal Property Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Equity Interests</u>. The Borrower and each other Credit Party shall cause:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) one hundred percent (100.0%) of the issued and outstanding Equity Interests of each Domestic Subsidiary (including, without limitation, each Domestic Subsidiary resulting from the division or allocation of any limited liability company that is *not* a Regulated Subsidiary); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) sixty-five percent (65.0%) of the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956–2(c)(2)), and one hundred percent (100.0%) of the issued and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956–2(c)(2)), of each Foreign Subsidiary that is directly owned by any Credit Party or any Domestic Subsidiary;

to be subject, at all times, to a first priority lien (subject to any Permitted Lien) in favor of the Collateral Agent, for the benefit of the Lenders, pursuant to the terms and conditions of the Collateral Documents, together with opinions of counsel and any filings and deliveries or other items reasonably requested by the Collateral Agent necessary in connection therewith to perfect the security interests therein, all in form and substance reasonably satisfactory to the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Personal Property</u>. The Borrower and each other Credit Party shall (i) cause all of its owned and leased personal property (other than Excluded Property) to be subject, at all times, to first priority (subject to any Permitted Lien), perfected Liens in favor of the Collateral Agent, for the benefit of the holders of the Obligations, to secure the Obligations pursuant to the terms and conditions of the Collateral Documents or, with respect to any such property acquired subsequent to the Closing Date, such other additional security documents as the Collateral Agent shall reasonably request, subject in any case to Permitted Liens, and (ii) deliver such other documentation as the Collateral Agent may reasonably request in connection with the foregoing, including, without limitation, appropriate UCC–1 financing statements, certified resolutions and other organizational and authorizing documents of such Person, opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to above and the perfection of the Collateral Agent's Liens thereunder) and other items reasonably requested by the Collateral Agent necessary in connection therewith to perfect the security interests therein, all in form, content and scope reasonably satisfactory to the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Landlord Consents</u>. Upon the reasonable request of the Collateral Agent, the Credit Parties shall use commercially reasonable efforts to obtain landlord consents with respect to leased locations where corporate records or material amounts of personal property of any of the Credit Parties are maintained, which landlord consents shall be in form and substance reasonably acceptable to the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Controlled Account Agreements</u>. The Borrower and each other Credit Party shall, unless otherwise consented to by the Collateral Agent in writing, cause (in each case, as promptly as practicable and, in any event, by *no later than* (A) the date that is ninety (90) consecutive calendar days after the Closing Date (or by such later date as the Collateral Agent may agree in its sole discretion), in the case of

------

any such accounts in existence on the Closing Date, and (B) the date that is ninety (90) consecutive calendar days after the date of establishment or acquisition of such account (or by such later date as the Collateral Agent may agree in its sole discretion), in the case of any such account(s) established or acquired after the Closing Date) each deposit, disbursement, lockbox, securities and/or commodities account of any Credit Party (including, without limitation, any such account(s) that are or will be held at Regions Bank), other than any Excluded Accounts, to be subject to a Controlled Account Agreement; <u>provided</u>, <u>that</u>, no Controlled Account Agreement shall be required, in any event, with respect to any such account that has a balance (or which holds Property with a fair market value) of *less than* Fifty Thousand Dollars ($50,000), in any individual instance, or One-Hundred Fifty Thousand Dollars ($150,000), when taken together with the account balances (or aggregate amount of the fair market value of Property) of all other deposit, disbursement, lockbox, securities and/or commodities accounts of any Credit Party (other than any Excluded Accounts) that are *not* subject to a Controlled Account Agreement.

Section 7.13 <u>Books and Records</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, keep proper books of record and account in which full, true and correct, in all material respects, entries shall be made of all dealings and transactions in relation to their respective businesses and activities to the extent necessary to prepare the consolidated financial statements of the Credit Parties and Subsidiaries both *inclusive* and *exclusive* of all Regulated Entities, in each case otherwise in conformity with GAAP.

Section 7.14 <u>Additional Subsidiaries</u>. Within forty-five (45) calendar days after the date of acquisition or formation of any Subsidiary (including, without limitation, upon the inception of any Subsidiary resulting from the division or allocation of a limited liability company or upon the reinstatement or reincorporation of a formerly dissolved Subsidiary) or of re-designation of any Immaterial Subsidiary as a Material Subsidiary in accordance with the definition of "*Immaterial Subsidiary*" in <u>Section</u> <u>1.1</u> (or, in any such case, by such later date as the Administrative Agent may agree in its sole discretion), the Credit Parties shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) notify the Administrative Agent thereof in writing, together with the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) jurisdiction of incorporation or formation (as the case may be);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) number of shares of each class of its Equity Interests outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) number and percentage of outstanding shares of each class owned (directly or indirectly) by any Credit Party, any Subsidiary or any other Regulated Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) number and effect, if exercised, of all outstanding options, warrants, rights of conversion or purchase and all other similar rights with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if such Subsidiary is *not* an Excluded Subsidiary, cause such Person to (i) become a Guarantor by executing and delivering to the Administrative Agent a Guarantor Joinder Agreement or such other documents as the Administrative Agent shall deem appropriate for such purpose, and (ii) deliver to the Administrative Agent documents of the types referred to in <u>Section</u> <u>5.1(b</u>) and <u>Section</u> <u>5.1(e</u>) and favorable opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to in the immediately foregoing <u>clause (b)(i</u>)), all in form, content and scope satisfactory to the Administrative Agent.

Section 7.15 <u>Maintenance of Reinsurance</u>. The Credit Parties, Subsidiaries and other Regulated Entities shall maintain a program of reinsurance *at least* equal to that: (a) required by the applicable Insurance Regulatory Authority of the applicable state of domicile for each such Person; and (b) determined by Demotech, Inc. to be necessary for a company to obtain an "A" rating.

------

**Article 8** 

**<u>NEGATIVE COVENANTS</u>** 

Each Credit Party covenants and agrees that, until the Obligations shall have been Paid in Full, such Credit Party shall perform, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to perform, each of the covenants set forth in this <u>Article 8</u>.

Section 8.1 <u>Indebtedness</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries nor any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, create, incur, assume or guaranty, or otherwise become or remain directly or indirectly liable with respect to any Indebtedness, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Unsecured Indebtedness of any Credit Party owing to any other Credit Party; (ii) unsecured Indebtedness of any Subsidiary or other Regulated Entity that (in any such case) is *not* a Credit Party owing to any other Subsidiary or other Regulated Entity that (in any such case) is *not* a Credit Party; and (iii) unsecured Indebtedness of any Credit Party owing to any Subsidiary or other Regulated Entity that (in any such case) is *not* a Credit Party, <u>provided</u>, <u>that</u>, (A) the aggregate outstanding amount of Indebtedness incurred in reliance on this <u>clause (b)(iii</u>) shall *not exceed* Five-Hundred Thousand Dollars ($500,000) at any time, and (B) any such Indebtedness incurred or outstanding in reliance on this <u>clause (b)(iii</u>) shall be subordinated in right of payment (by operation of the terms of an applicable subordination agreement entered into with the Administrative Agent) to the prior Payment in Full of the Obligations on terms reasonably acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Guarantees with respect to Indebtedness otherwise permitted under this <u>Section</u> <u>8.1</u>; <u>provided</u>, <u>that</u>, any Guarantees granted or in effect in reliance on this <u>clause (c</u>) shall be subordinated to the Obligations if, and to the extent that, the Indebtedness guaranteed thereby is subordinated to the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Indebtedness existing on the Closing Date and described in <u>Schedule 8.1</u>, together with any Permitted Refinancing thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Indebtedness with respect to (i) Capital Leases (<u>provided</u>, <u>that</u>, any such Indebtedness shall be secured only by the asset subject to such Capital Lease), and (ii) purchase money Indebtedness (<u>provided</u>, <u>that</u>, any such Indebtedness shall be secured only by the asset acquired in connection with the incurrence of such Indebtedness); <u>provided</u>, <u>that</u>, the *sum of* the aggregate principal amount of any Indebtedness under this <u>clause (e</u>) at any time outstanding shall *not exceed* Five-Hundred Thousand Dollars ($500,000); 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Indebtedness in respect of any Swap Agreement that is entered into in the ordinary course of business to hedge, limit or mitigate risks to which any Credit Party, any Subsidiary or any other Regulated Entity is exposed in the conduct of its business or the management of its liabilities (it being acknowledged by each Credit Party that a Swap Agreement entered into for speculative purposes, or otherwise of a speculative nature, is *not* a Swap Agreement entered into in the ordinary course of business to hedge, limit or mitigate risks);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to the extent constituting Indebtedness, all obligations in connection with each Permitted Acquisition (including, without limitation, Earn Out Obligations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Indebtedness representing deferred compensation to officers, directors, employees of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Guarantees (i) by any Credit Party of Indebtedness of any Subsidiary (other than any Regulated Subsidiary) that is *not* a Credit Party, and (ii) by any Subsidiary (other than any Regulated Subsidiary) of Indebtedness of any Credit Party or of any other Subsidiary (other than any Regulated Subsidiary) that is *not* a Credit Party; <u>provided</u>, <u>that</u>, (A) Guarantees by any Credit Party of Indebtedness of any Subsidiary (other than any Regulated Subsidiary) that is *not* a Credit Party shall be subject to compliance with <u>Section</u> <u>8.6</u>, and (B) any Guarantees granted or in effect in reliance on this <u>clause (i</u>) shall be subordinated to the Obligations if, and to the extent that, the Indebtedness guaranteed thereby is subordinated to the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Indebtedness owed to any Person (including obligations in respect of letters of credit for the benefit of such Person) providing workers' compensation, health, disability or other employee benefits or property, casualty, liability insurance, self-insurance, pursuant to reimbursement or indemnification obligations to such Person or to finance insurance premiums, in each case incurred in the ordinary course of business and consistent with past practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Indebtedness in respect of or guarantee of performance bonds, bid bonds, appeal bonds, surety bonds, performance and completion guarantees, workers' compensation claims, letters of credit, bank guarantees and banker's acceptances, warehouse receipts or similar instruments and similar obligations (other than in respect of other Indebtedness for borrowed money), in each case provided in the ordinary course of business and consistent with past practice; <u>provided</u>, <u>that</u>, any Indebtedness arising from the provision by any Credit Party of any of the foregoing for the benefit of any Person that is *not* a Credit Party is subject to compliance with <u>Section</u> <u>8.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) cash management obligations and other Indebtedness in respect of netting services, overdraft protection and similar arrangements, in each case, in connection with cash management and deposit accounts maintained in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) to the extent constituting Indebtedness, Guarantees in the ordinary course of business of the obligations of suppliers, customers, franchisees and licensees of the Credit Parties and Subsidiaries (other than any Regulated Entities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) performance guarantees primarily guaranteeing performance of contractual obligations to a third party and *not* for the purpose of guaranteeing payment of Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) (i) Indebtedness of a Regulated Entity under "surplus notes" owing to one (1) or more other Credit Parties, Subsidiaries or other Regulated Entities, (ii) Indebtedness of a Qualifying Reciprocal Entity under "surplus notes" owing to one (1) or more Persons other than the Credit Parties, Subsidiaries and other Regulated Entities, and (iii) Indebtedness of a Regulated Subsidiary under "surplus notes" owing to one (1) or more Persons other than the Credit Parties, Subsidiaries and other Regulated Entities, <u>provided</u>, <u>that</u>, the aggregate principal amount of Indebtedness permitted in reliance on this <u>clause (o)(iii</u>) shall *not exceed* Fifty Million Dollars

------

($50,000,000) at any time outstanding; <u>provided</u>, <u>that</u>, in any such case of the foregoing <u>clauses</u> <u>(o)(i</u>) through (<u>o)(iii</u>), (A) such Indebtedness shall be subordinated to the policyholders of the applicable Regulated Entity, (B) payments of principal of, and interest on, such Indebtedness shall only be made upon the prior written consent of the applicable Governmental Authority, and (C) the principal amount of such Indebtedness shall constitute equity in accordance with SAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Indebtedness of any of the Regulated Entities owing to, and in the form of (or incurred pursuant to) loans, funding agreements, and/or guaranteed investment contracts entered into by such Regulated Entity with, a FHLB in connection with the membership of such Regulated Entity in or with such FHLB in the ordinary course of business; <u>provided</u>, <u>that</u>, any such Indebtedness incurred in reliance on this <u>clause (p</u>) is *not* recourse to any of the Credit Parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) other unsecured Indebtedness of the Credit Parties, Subsidiaries and other Regulated Entities in an aggregate amount *not exceeding* One Million Dollars ($1,000,000) at any time outstanding.

Accrual of interest or dividends, the accretion of accreted value, the accretion or amortization of original issue discount and the payment of interest, premium, fees or expenses, in the form of additional Indebtedness, or preferred stock (in each case, so long as such additional Indebtedness or preferred stock is in the same form and on the same terms as the Indebtedness to which such payment relates) shall *not* be deemed to be an incurrence of Indebtedness for purposes of this <u>Section</u> <u>8.1</u>.

Section 8.2 <u>Liens</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, create, incur, assume, or permit to exist any Lien on, or with respect to, any Properties of any kind (including any document or instrument in respect of goods or accounts receivable) of any Credit Party, any Subsidiary or any other Regulated Entity, whether now owned or hereafter acquired, created or licensed or any income, profits or royalties therefrom, or file, or permit the filing of, or otherwise permit to remain in effect, any financing statement or other similar notice of any Lien with respect to any such Property, income, profits or royalties under the UCC of any State or under any similar recording or notice statute or under any Applicable Laws related to intellectual property, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens in favor of the Collateral Agent, for the benefit of the holders of the Obligations, granted pursuant to any Credit Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liens for Taxes *not* yet due, or for Taxes if obligations with respect to such Taxes are being contested in good faith by appropriate proceedings diligently conducted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) statutory Liens of landlords, banks, carriers, warehousemen, mechanics, repairmen, workmen and materialmen, and other Liens imposed by Applicable Law (other than any such Lien imposed pursuant to Section 430(k) of the Internal Revenue Code or Section 303(k) or 4068 of ERISA that would constitute an Event of Default under <u>Section</u> <u>9.1(j</u>)), in each case, incurred in the ordinary course of business: (i) for amounts *not* yet overdue; or (ii) for amounts that are overdue and that are being contested in good faith by appropriate proceedings, so long as such reserves or other appropriate provisions, if any, as shall be required by GAAP shall have been made for any such contested amounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens incurred in the ordinary course of business in connection with workers' compensation, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, trade contracts, performance and return-of-money bonds and other similar obligations (exclusive of obligations for the payment of borrowed money or other Indebtedness), so long as no foreclosure, sale or similar proceedings have been commenced with respect to any portion of the Collateral on account thereof;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) easements, rights-of-way, restrictions, encroachments, and other minor defects or irregularities in title, in each case, that do *not* and will *not* interfere, in any material respect, with the ordinary conduct of the businesses of any Credit Party, any Subsidiary or any other Regulated Entity, including, without limitation, all encumbrances shown on any policy of title insurance in favor of the Collateral Agent with respect to any Real Estate Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any interest or title of a lessor or sub-lessor under any lease of real estate permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Liens *solely* on any cash earnest money deposits made by any Credit Party or Subsidiary (other than any Regulated Subsidiary) in connection with any letter of intent, or purchase agreement permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) purported Liens evidenced by the filing of precautionary UCC financing statements relating *solely* to operating leases of personal property entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any zoning or similar law or right reserved to, or vested in, any governmental office or agency to control or regulate the use of any real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) licenses of patents, trademarks, and other intellectual property rights granted by any Credit Party or Subsidiary (other than any Regulated Entity) in the ordinary course of business and *not* interfering in any respect with the ordinary conduct of the business of such Credit Party or Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Liens existing as of the Closing Date and described in <u>Schedule 8.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Liens securing purchase money Indebtedness and Capital Leases to the extent permitted pursuant to <u>Section</u> <u>8.1(e</u>); <u>provided</u>, <u>that</u>, any such Lien shall encumber only the asset acquired with the proceeds of such Indebtedness or the assets subject to such Capital Lease, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Liens in favor of the Issuing Bank or the Swingline Lender on cash collateral securing the obligations of a Defaulting Lender to fund risk participations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Liens consisting of judgment or judicial attachment liens relating to judgments which do *not* constitute an Event of Default hereunder; 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) licenses (including licenses of Intellectual Property), sublicenses, leases or subleases granted to third parties in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Liens in favor of collecting banks under Section 4–210 of the UCC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Liens (including the right of set-off) in favor of a bank or other depository institution arising as a matter of law encumbering deposits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods in the ordinary course of business;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Liens on insurance policies and the proceeds thereof granted in the ordinary course of business to secure the financing of insurance premiums with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) Liens of bailees in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) utility and similar deposits in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Liens on Property (other than, in any event, Collateral) of the Regulated Entities securing Indebtedness permitted and incurred in reliance on <u>Section</u> <u>8.1(p</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) other Liens to the extent securing Indebtedness or other monetary obligations in an aggregate amount *not to exceed* Two-Hundred Fifty Thousand Dollars ($250,000) at any time outstanding.

Section 8.3 <u>No Further Negative Pledges</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, enter into any Contractual Obligation (other than this Agreement and the other Credit Documents) that limits the ability of any Credit Party, any Subsidiary or any other Regulated Entity to create, incur, assume or suffer to exist Liens on property of such Person; <u>provided</u>, <u>that</u>, this <u>Section</u> <u>8.3</u> shall *not* prohibit:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any negative pledge incurred or provided in favor of any holder of Indebtedness permitted under <u>Section</u> <u>8.1(e</u>), *solely* to the extent any such negative pledge relates to the Property financed by or subject to Permitted Liens securing such Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Permitted Lien or any document or instrument governing any Permitted Lien; <u>provided</u>, <u>that</u>, any such restriction contained therein relates only to the Property subject to such Permitted Lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) customary restrictions and conditions contained in any agreement relating to the disposition of any Property permitted under <u>Section</u> <u>8.10</u> pending the consummation of such disposition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) customary provisions restricting assignments, subletting or other transfers contained in leases, licenses, joint venture agreements and similar agreements entered into in the ordinary course of business.

Section 8.4 <u>Restricted Payments</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Subsidiary of the Borrower may make Restricted Payments to any Person that directly owns Equity Interests in such Subsidiary, ratably according to their respective holdings of the type of Equity Interests in respect of which such Restricted Payment is being made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower may declare and make dividend payments or other distributions payable *solely* in common Equity Interests in the Borrower; 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the making of the Closing Date Distribution in cash on the Closing Date; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) other Restricted Payments paid in cash, so long as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default exists or would result therefrom; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately *after* giving effect to any such Restricted Payment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Consolidated Leverage Ratio, determined on a Pro Forma Basis, is *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the Consolidated Leverage Ratio required for the most recently ended Trailing Period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there remains *at least* Ten Million Dollars ($10,000,000) of Liquidity.

Section 8.5 <u>Burdensome Agreements</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, enter into, or permit to exist, any Contractual Obligation that encumbers or restricts the ability of any such Person to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pay dividends or make any other distributions to any Credit Party on its Equity Interests or with respect to any other interest or participation in, or measured by, its profits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) pay any Indebtedness or other obligation owed to any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) make loans or advances to any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) sell, lease or transfer any of its Property to any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) pledge its Property pursuant to the Credit Documents or any renewals, refinancings, exchanges, refundings or extension thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) act as a Credit Party pursuant to the Credit Documents or any renewals, refinancings, exchanges, refundings or extension thereof;

except (in respect of any of the matters referred to in <u>clauses (i</u>) through (<u>iv</u>) above) for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) this Agreement and the other Credit Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any document or instrument governing Indebtedness incurred pursuant to <u>Section</u> <u>8.1(e</u>); <u>provided</u>, <u>that</u>, any such restriction contained therein relates only to the Property constructed or acquired in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Permitted Lien or any document or instrument governing any Permitted Lien; <u>provided</u>, <u>that</u>, any such restriction contained therein relates only to the Property subject to such Permitted Lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) customary restrictions and conditions contained in any agreement relating to the sale of any Property permitted under <u>Section</u> <u>8.10</u> pending the consummation of such sale;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any restrictions regarding licensing or sublicensing by the Credit Parties, Subsidiaries and other Regulated Entities of Intellectual Property in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) customary provision in leases and other contracts restricting the assignment thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) restrictions that arise in connection with Indebtedness permitted to be incurred pursuant to <u>Section</u> <u>8.1(j</u>).

Section 8.6 <u>Investments</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, make or own any Investment in any Person, including any joint venture and any Foreign Subsidiary, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investments in cash and Cash Equivalents and deposit accounts or securities accounts in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) equity Investments owned as of the Closing Date in any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) intercompany loans to the extent permitted under <u>Section</u> <u>8.1(b</u>), and guarantees to the extent permitted under <u>Section</u> <u>8.1(c</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Investments existing on the Closing Date and described on <u>Schedule 8.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Investments constituting Swap Agreements permitted by <u>Section</u> <u>8.1(f</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Permitted Acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Investments constituting accounts receivable, trade debt and deposits for the purchase of goods, in each case made in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Investments made by Regulated Entities in the ordinary course of business that are consistent with the respective investment policies of each such Regulated Entity in effect on the Closing Date, as such policy may be amended or modified from time to time by board (or equivalent) approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Guarantees by any Credit Party, any Subsidiary or any other Regulated Entity constituting Indebtedness permitted by <u>Section</u> <u>8.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) loans or advances to employees, officers or directors of members of any Credit Party or Subsidiary (other than any Regulated Subsidiary) in the ordinary course of business for travel, relocation and related expenses; <u>provided</u>, <u>that</u>, the aggregate amount of all such loans and advances does *not exceed* Five-Hundred Thousand Dollars ($500,000) in the aggregate at any time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, customers and suppliers, or upon the foreclosure with respect to any secured Investment or other transfer of title with respect to any secured Investment;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Investments resulting from pledges or deposits described in <u>Section</u> <u>8.2(d</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Investments consisting of cash earnest money deposits in connection with a Permitted Acquisition or other Investment permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Investments consisting of endorsements for collection or deposit in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Investments by any Credit Party, any Subsidiary, or any other Regulated Entity in a Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Investments by Subsidiaries (including Regulated Subsidiaries) that are *not* Credit Parties or by Qualifying Reciprocal Entities, on the one hand, in other Subsidiaries (including Regulated Subsidiaries) that are *not* Credit Parties or in other Qualifying Reciprocal Entities, on the other hand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Investments by the Credit Parties in (including, without limitation, in the form of provision of a Letter of Credit for the benefit of) Regulated Entities to the extent required to provide capital support for such Regulated Entities, <u>provided</u>, <u>that</u>, each of the following conditions shall have been satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default exists or would result from such Investment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately *after* giving effect to any such Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis, shall be *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the maximum Consolidated Leverage Ratio then in effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there shall be *at least* Ten Million Dollars ($10,000,000) of Liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Investments made in connection with Indebtedness permitted and incurred in reliance on <u>Section</u> <u>8.1(p</u>) consisting of Equity Interests in an FHLB that are held by a Regulated Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) other Investments in an aggregate amount that does *not exceed* One Million Dollars ($1,000,000) outstanding at any time (measured on a cost basis, to the extent applicable).

Notwithstanding anything to the contrary in the foregoing, in no event shall any Credit Party, any Subsidiary or any other Regulated Entity make any Investment that results in or facilitates in any manner any Restricted Payment *not* otherwise permitted under the terms of <u>Section</u> <u>8.4</u>. For purposes of determining compliance with this <u>Section</u> <u>8.6</u>, any Investment that is written down, written off or forgiven by any Credit Party, any Subsidiary or any other Regulated Entity shall continue to count against any cap set forth in the clause or clauses of this <u>Section</u> <u>8.6</u> pursuant to which such Investment is permitted.

------

Section 8.7 <u>Use of Proceeds</u>. No Credit Party shall use the proceeds of any Credit Extension of the Loans except pursuant to <u>Section</u> <u>7.9</u>. No Credit Party shall use, and each Credit Party shall ensure that each of its Subsidiaries, each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact, and each of the respective directors, officers, employees and agents of each of the foregoing, shall *not* use, the proceeds of any Credit Extension:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to refinance any commercial paper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in any manner that causes, or might cause, such Credit Extension, or the application of such proceeds, to violate any applicable Sanctions, Regulation T, Regulation U or Regulation X of the Federal Reserve Board, as in effect from time to time or any other regulation thereof, or to violate the Exchange Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country.

Section 8.8 <u>Financial Covenants</u>. The Credit Parties shall *not*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Consolidated Leverage Ratio</u>. Permit the Consolidated Leverage Ratio, as of the end of any Fiscal Quarter commencing with the Fiscal Quarter ending March 31, 2025, to be *greater than* 2.25 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consolidated Fixed Charge Coverage Ratio</u>. Permit the Consolidated Fixed Charge Coverage Ratio, as of the end of any Fiscal Quarter commencing with the Fiscal Quarter ending March 31, 2025, to be *less than* 1.25 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Combined Statutory Surplus</u>. Permit the Combined Statutory Surplus, as of the end of any Fiscal Quarter, to be *less than* the *sum of*: (i) eighty percent (80.0%) of the Combined Statutory Surplus, determined as of the end of the last Fiscal Quarter ending immediately *prior* to the Closing Date; *plus* (ii) eighty percent (80.0%) of the aggregate amount of Investments (including, for purposes of clarity, Investments in the form of "surplus notes") made after the Closing Date by any Credit Party or Subsidiary (other than a Regulated Entity) in any Regulated Entity (other than a Captive Reinsurance Company), including, for purposes of clarity, any such Investments made with the proceeds of Revolving Loans or an advance under the Delayed Draw Term Loan.

Section 8.9 <u>Fundamental Changes; Disposition of Assets; Acquisitions</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, enter into any Acquisition or transaction of merger or consolidation, or liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution), or make any Asset Sale, or acquire by purchase or otherwise (other than purchases or other acquisitions of inventory and materials and the acquisition of equipment and capital expenditures in the ordinary course of business, subject to <u>Section</u> <u>8.9</u>) the business, property or fixed assets of, or Equity Interests or other evidence of beneficial ownership of, any Person or any division or line of business or other business unit of any Person (including, in each case, pursuant to the division or allocation of a limited liability company), except:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Subsidiary of any Credit Party may be merged with or into the Borrower or any other Subsidiary, or be liquidated, wound up or dissolved, or all, or any part, of its business or Property may be conveyed, sold, leased, transferred or otherwise disposed of, in one (1) transaction or a series of transactions, to the Borrower or any other Subsidiary; <u>provided</u>, <u>that</u>, in the case of such a merger, (i) if the Borrower is party to the merger, the Borrower shall be the continuing or surviving Person, and (ii) if any Guarantor is a party to such merger, then a Guarantor shall be the continuing or surviving Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Investments made in accordance with <u>Section</u> <u>8.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) sales of any Property made by any Regulated Entity in the ordinary course of business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Asset Sales, the proceeds of which, when aggregated with the proceeds of all other Asset Sales consummated within the same Fiscal Year in reliance on this <u>clause (d</u>), do *not exceed* One Million Dollars ($1,000,000); <u>provided</u>, <u>that</u>, (i) the consideration received by any Credit Party, Subsidiary or other Regulated Entity for the Property sold, or otherwise disposed of, pursuant to such Asset Sale shall be in an aggregate amount *at least* equal to the fair market value (as determined in good faith by the board of directors or managers (or similar governing body) of the applicable Credit Party, Subsidiary or other Regulated Entity) of such Property, (ii) *no less than* seventy-five percent (75.0%) of such proceeds shall be paid in cash or Cash Equivalents, and (iii) no Default or Event of Default exists at the time of consummation of such Asset Sale or would result therefrom.

Section 8.10 <u>Disposal of Subsidiary Interests</u>. Except for any sale of all of its interests in the Equity Interests of any of its Subsidiaries in compliance with the provisions of <u>Section</u> <u>8.9</u> and except for Liens securing the Obligations, no Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) directly or indirectly sell, assign, pledge, or otherwise encumber or dispose of any Equity Interests in any of its Subsidiaries, except to qualify directors if required by Applicable Laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) permit any of its Subsidiaries directly or indirectly to sell, assign, pledge, or otherwise encumber or dispose of any Equity Interests in any of its Subsidiaries, except to another Credit Party (subject to the restrictions on such disposition otherwise imposed hereunder), or to qualify directors if required by Applicable Laws.

Section 8.11 <u>Sales and Lease-Backs</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, become or remain liable as lessee or as a guarantor or other surety with respect to any lease of any Property (whether real, personal or mixed), whether now owned or hereafter acquired, which the applicable Credit Party, Subsidiary or other Regulated Entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has sold or transferred, or is to sell or to transfer, to any other Person (other than any Credit Party); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) intends to use for substantially the same purpose as any other Property that has been, or is to be, sold or transferred by any Credit Party to any Person (other than any Credit Party) in connection with such lease.

------

Section 8.12 <u>Transactions with Affiliates and Insiders</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, enter into or permit to exist any transaction (including the purchase, sale, lease or exchange of any Property or the rendering of any service) with any officer, director or Affiliate of any Credit Party, any Subsidiary or any other Regulated Entity on terms that are *less* favorable to such Credit Party, Subsidiary or other Regulated Entity, as the case may be, than those that might be obtained at the time from a Person who is *not* an officer, director or Affiliate of any Credit Party, any Subsidiary or any other Regulated Entity; <u>provided</u>, <u>that</u>, the foregoing restriction shall *not* apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any transaction exclusively between or among Credit Parties, and any transaction exclusively between or among Affiliates of any Credit Party, any Subsidiary or any other Regulated Entity that are *not* Credit Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) compensation (including bonuses and equity or other consideration) and employee benefit arrangements paid to, indemnities provided for the benefit of, and employment and severance arrangements entered into with, and reimbursement of expenses of officers and directors and approved by the Board of Directors of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Restricted Payment to the extent permitted by <u>Section</u> <u>8.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Investment to the extent permitted by <u>Section</u> <u>8.6</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any issuances of securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment agreements, employee stock options and employee stock ownership plans.

Section 8.13 <u>Modification or Payment of Certain Funded Debt</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) after the issuance thereof, amend or modify (or permit the termination, amendment or modification of) the terms of any Junior Debt in a manner adverse, in any material respect, to the interests of the Lenders (including specifically shortening any maturity or average life to maturity or requiring any payment sooner than previously scheduled or increasing the interest rate or fees applicable thereto), except to the extent any such amendment or modification constitutes a Permitted Refinancing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) pay, prepay, redeem, purchase, repurchase, defease, retire or extinguish, or otherwise satisfy, or obligate itself or any other Credit Party, Subsidiary or other Regulated Entity to do any of the foregoing, in respect of any Junior Debt other than any Indebtedness in the form of "surplus notes", except for payments of regularly scheduled interest, regularly scheduled amortization (if any) of principal, accrued fees and expenses and customary indemnification obligations, and other required payments at the scheduled maturity thereof, in each case of this <u>clause (b</u>), *solely* to the extent that each of the following conditions are satisfied in respect of such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default then exists or would result from the making of such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) both immediately *before* and immediately *after* giving effect to any such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis, shall be *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the maximum Consolidated Leverage Ratio then in effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there shall be *at least* Ten Million Dollars ($10,000,000) of Liquidity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction is permitted under any and all applicable subordination, standstill and/or similar provisions in any applicable Contractual Obligation of such Credit Party, Subsidiary or other Regulated Entity.

Section 8.14 <u>Conduct of Business</u>. From and after the Closing Date, no Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, engage in any business other than the businesses engaged in by such Credit Party, Subsidiary or other Regulated Entity on the Closing Date and businesses that are substantially similar, related or incidental thereto.

Section 8.15 <u>Fiscal Year</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, change its Fiscal Year-end from December 31.

Section 8.16 <u>Amendments to Organizational Agreements / Material Agreements</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to: (a) amend, or permit any amendments to, its Organizational Documents, if such amendment could reasonably be expected to be materially adverse to the Lenders, the Administrative Agent or the Collateral Agent; (b) amend or permit any amendments to, or terminate or waive any provision of, any Material Contract (other than any managing general agent, service company or attorney-in-fact agreement), unless such amendment, termination, or waiver would *not* have, and would *not* be expected to have, a Material Adverse Effect; or (c) amend or permit any amendments to, or terminate or waive any provision of, any managing general agent, service company or attorney-in-fact agreement entered into by any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the one hand, and a Regulated Entity, on the other hand, unless such amendment, termination, or waiver would *not* have, and would *not* be expected to have, an adverse effect on the Credit Parties, the Administrative Agent, the Collateral Agent or the Lenders, <u>provided</u>, <u>that</u>, notwithstanding anything to the contrary in the foregoing of this <u>clause (c</u>), so long as any such waiver is permitted as an Investment in accordance with <u>Section</u> <u>8.6</u>, the Credit Parties and Subsidiaries (other than Regulated Subsidiaries) shall be permitted to waive any provision of any managing general agent, service company or attorney-in-fact agreement entered into by any Credit Party or Subsidiary (other than a Regulated Subsidiary), on the one hand, and a Regulated Entity, on the other hand, in order to reduce or waive, in whole or in part, managing general agency, service company or attorney-in-fact fees that are then due and payable thereunder and/or have already been paid but which are subsequently waived in accordance with Applicable Law by the Credit Party or Subsidiary (other than a Regulated Subsidiary) to whom such fees would otherwise have been paid thereunder, as applicable.

------

Section 8.17 <u>Accounting and Reporting Changes</u>. (i) No Credit Party or Subsidiary (other than any Regulated Entity) may make any significant change in accounting treatment or reporting practices, except as required by GAAP or the SEC; and (ii) no Regulated Entity may make any significant change in accounting treatment or reporting practices, except as required by SAP.

Section 8.18 <u>Statutory Capitalization / Risk-Based Capital Ratio</u>. As of the end of each Fiscal Year, each Credit Party, Subsidiary and other Regulated Entity that is subject to any minimum statutory capitalization and/or risk-based capital ratio requirements imposed by any Insurance Regulatory Authority and/or Applicable Laws shall meet or exceed such requirements and, in any event, maintain a risk-based capital ratio of *at least* three-hundred percent (300.0%) of the authorized control level (or substantially equivalent term as used under Applicable Laws and/or by any applicable Insurance Regulatory Authority); <u>provided</u>, <u>that</u>, in the event of any failure to comply with any of the foregoing requirements, the Credit Parties, Subsidiaries and other Regulated Entities shall have a period of thirty (30) calendar days, measured from, and including, the date on which any of the Credit Parties, Subsidiaries and other Regulated Entities that are subject to any such requirements shall have reported, or have been required under Applicable Law or other requirement of an Insurance Regulatory Authority to report, any such capitalization and/or risk-based capital ratio information to an applicable Insurance Regulatory Authority, to return to compliance with such minimum statutory capitalization and/or risk-based capital ratio requirements.

Section 8.19 <u>Holdco Restrictions</u>. The Borrower shall *not* incur any Indebtedness, grant any Liens upon any of its Property, or engage in any operations, business or activity whatsoever, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) incurring and carrying Indebtedness permitted under <u>Section</u> <u>8.1</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) owning and/or purchasing Equity Interests in Subsidiaries and serving as the attorney-in-fact for Qualifying Reciprocal Entities,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) granting a security interest in its Property pursuant to the terms of any Collateral Documents or otherwise as permitted by <u>Section</u> <u>8.2</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) providing a Guaranty of the Obligations pursuant to this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) maintaining its corporate or limited liability company (as applicable) existence,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) participating in tax, accounting and other administrative activities for itself and/or as a member of the consolidated group of companies including the Credit Parties and Subsidiaries,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) executing and delivering, and exercising its respective rights and performing each of its respective obligations under, each of the Credit Documents to which it is a party, any Secured Swap Agreements and/or Secured Treasury Management Agreements to which it is a party, and any other Contractual Obligations to which it is a party,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) opening and maintaining bank accounts,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) making any Restricted Payments or Investments expressly permitted to be made pursuant to this Agreement,

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) providing customary indemnification to officers and directors in the ordinary course of business (including pursuant to any Acquisition agreement and related documents to which it is a party),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) owning cash and Cash Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) issuing securities or other payments, awards or grants in cash, securities, or otherwise pursuant to (or for the funding of, as applicable) employment agreements to which it is a party or related employee stock options and employee stock ownership plans, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) any activities incidental or reasonably related to the foregoing,

in each case of the foregoing <u>clauses (a</u>) through (<u>m</u>), in a lawful manner *not* in contravention of the terms of this Agreement and the other Credit Documents.

**Article 9** 

**<u>EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS.</u>**

Section 9.1 <u>Events of Default</u>. If any one (1) or more of the following conditions or events shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Failure to Make Payments When Due</u>. Failure by any Credit Party to pay:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the principal of any Loan when due, whether at stated maturity, by acceleration or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within one (1) Business Day of when due, any amount payable to the Issuing Bank in reimbursement of any drawing under a Letter of Credit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) within five (5) Business Days of when due, any interest on any Loan or any fee or any other amount due hereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Default in Other Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Failure of any Credit Party, any Subsidiary, or any other Regulated Entity to pay when due any principal of or interest on, or any other amount payable in respect of, one or more items of Indebtedness (other than Indebtedness referred to in <u>clause (a</u>) above) in an aggregate principal amount in *excess* of the Threshold Amount, in each case, beyond the grace or cure period, if any, provided therefor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) breach or default by any Credit Party, any Subsidiary, or any other Regulated Entity with respect to any other term of (A) one (1) or more items of Indebtedness in the aggregate principal amounts referred to in <u>clause (b)(i</u>) above, or (B) any loan agreement, mortgage, indenture or other agreement relating to such item(s) of Indebtedness, in each case, beyond the grace or cure period, if any, provided therefor, if the effect of such breach or default is to cause, or to permit the holder or holders of that Indebtedness (or a trustee on behalf of such holder or holders), to cause, that Indebtedness to become or be declared due and payable (or subject to a compulsory repurchase or redeemable) prior to its stated maturity or the stated maturity of any underlying obligation, as the case may be;

------

<u>provided</u>, <u>that</u>, so long as the Administrative Agent has *not* exercised any remedies under this <u>Article 9</u>, any Default or Event of Default under this <u>clause (b</u>) shall be immediately cured and no longer continuing (without any action on the part of the Administrative Agent, any Lender or otherwise) as and when any such failure (I) is remedied by applicable Credit Party, Subsidiary or other Regulated Entity, or (II) is waived (including in the form of amendment) by the requisite holders of the applicable item of Indebtedness; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Breach of Certain Covenants</u>. Failure of any Credit Party to perform or comply with any term or condition contained in <u>Section</u> <u>7.1(a</u>), <u>Section</u> <u>7.1(b</u>), <u>Section</u> <u>7.1(c</u>), <u>Section</u> <u>7.1(h</u>), <u>Section</u> <u>7.2(a</u>), <u>Section</u> <u>7.6</u>, <u>Section</u> <u>7.9</u> or <u>Section</u> <u>7.15</u>, or <u>Article 8</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Breach of Representations, etc</u>. Any representation, warranty, certification or other statement made, or deemed made, by any Credit Party or Subsidiary in any Credit Document to which it is a party, or in any statement or certificate at any time given by any Credit Party, Subsidiary or other Regulated Entity in writing pursuant hereto or thereto, or in connection herewith or therewith, shall be false in any material respect as of the date made or deemed made; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Other Defaults Under Credit Documents</u>. Any Credit Party, any Subsidiary or any other Regulated Entity shall default in the performance of, or compliance with, any term contained herein or in any of the other Credit Documents to which it is a party, other than any such term referred to in any other clause of this <u>Section</u> <u>9.1</u>, and such default shall *not* have been remedied or waived within thirty (30) days after the *earlier* to occur of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an Authorized Officer of any Credit Party becoming aware of such default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) receipt by the Borrower of notice from the Administrative Agent or the Required Lenders of such default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Involuntary Bankruptcy; Appointment of Receiver, etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A court of competent jurisdiction shall enter a decree or order for relief in respect of any Credit Party, any Subsidiary, or any other Regulated Entity in an involuntary case under the Bankruptcy Code or Debtor Relief Laws now or hereafter in effect, which decree or order is *not* stayed, or any other similar relief shall be granted under any applicable federal or state law; or 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) an involuntary case shall be commenced against any Credit Party, any Subsidiary, or any other Regulated Entity under the Bankruptcy Code or other Debtor Relief Laws now or hereafter in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over any Credit Party, any Subsidiary or any other Regulated Entity, or over all, or a substantial part, of their respective Property, shall have been entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there shall have occurred the involuntary appointment of an interim receiver, trustee or other custodian of any Credit Party, any Subsidiary, or any other Regulated Entity for all, or a substantial part, of its respective Property; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) a warrant of attachment, execution or similar process shall have been issued against any substantial part of the Property of any Credit Party, any Subsidiary or any other Regulated Entity;

and any such event described in this <u>clause (f)(ii</u>) shall continue for sixty (60) days without having been dismissed, bonded or discharged; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Voluntary Bankruptcy; Appointment of Receiver, etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Credit Party, any Subsidiary, or any other Regulated Entity shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) have an order for relief entered with respect to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) commence a voluntary case under the Bankruptcy Code or other Debtor Relief Laws now or hereafter in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) consent to the appointment of, or taking possession by, a receiver, trustee or other custodian for all, or a substantial part, of its Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) make any assignment for the benefit of creditors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) be unable, or fail generally, or admit in writing its inability, to pay its debts as such debts become due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the board of directors (or similar governing body) of any Credit Party, any Subsidiary or any other Regulated Entity, or any committee thereof, shall adopt any resolution or otherwise authorize any action to approve any of the actions referred to in this <u>clause (g</u>) or in <u>clause (f</u>) above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Judgments and Attachments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any one or more final, non-appealable money judgments, writs or warrants of attachment or similar process involving an aggregate amount at any time in *excess* of the Threshold Amount (to the extent *not* adequately covered by insurance as to which a solvent and unaffiliated insurance company has acknowledged coverage in writing) shall be entered or filed against any Credit Party, any Subsidiary or any other Regulated Entity, or any of their respective Property, and shall remain undischarged, un-vacated, un-bonded or un-stayed for a period of sixty (60) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any non-monetary judgment or order shall be rendered against any Credit Party, any Subsidiary or any other Regulated Entity that could reasonably be expected to have a Material Adverse Effect, and shall remain undischarged, un-vacated, un-bonded or un-stayed for a period of sixty (60) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Dissolution</u>. Any order, judgment or decree shall be entered against any Credit Party, any Subsidiary or any other Regulated Entity decreeing the dissolution or split up of any such Person, and such order shall remain undischarged or un-stayed for a period in *excess* of thirty (30) days; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Pension Plans</u>. There shall occur one (1) or more ERISA Events that, individually or in the aggregate when taken together, results in liability to the Credit Parties, Subsidiaries and other Regulated Entities (taken together) in *excess* of the Threshold Amount during the term hereof and which is *not* paid by the applicable due date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Change in Control</u>. A Change in Control shall occur; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Invalidity of Credit Documents and Other Documents</u>. At any time after the execution and delivery thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) this Agreement or any other Credit Document ceases to be in full force and effect (other than by reason of (x) a release of Collateral in accordance with the terms of this Agreement and the other Credit Documents, or (y) the Payment in Full of the Obligations) or is declared to be null and void; or (B) the Collateral Agent shall *not* have, or shall cease to have, a valid and perfected Lien in any material portion of the Collateral purported to be covered by the Collateral Documents with the priority required by the relevant Collateral Document, except, in the case of this <u>clause (l)(i)(B</u>), to the extent that any such lapse is due to the failure by the Collateral Agent to (I) file any UCC financing statement or any continuation thereof, or (II) maintain possession of certificates, promissory notes, or other possessory Collateral pledged under the Collateral Documents (except to the extent that any such items were required to be delivered to the Collateral Agent pursuant to this Agreement and the other Credit Documents and were *not* so delivered within the applicable timeframe prescribed therefor in the applicable Credit Document(s)); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Credit Party, any Subsidiary, or any other Regulated Entity shall contest the validity or enforceability of any Credit Document in writing or deny in writing that any Credit Party has any further liability, including with respect to future advances by the Lenders, under any Credit Document to which it is a party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Risk Retention</u>. On June 1<sup>st</sup> of each calendar year, the net (of reinsurance coverage obtained) pre-tax catastrophe retention of any individual Regulated Entity (other than any Captive Reinsurance Company), whose Statutory Surplus is available for payment of claims on policies issued by the Regulated Entities (other than Captive Reinsurance Companies), *exceeds* twenty-five percent (25.0%) of the Statutory Surplus of such Regulated Entity, determined as of March 31<sup>st</sup> of the same calendar year in the event of a 1/100 Probable Maximum Loss followed by a subsequent event equivalent to a 1/50 Probable Maximum Loss, as measured by a catastrophe model that has been approved by the appropriate Insurance Regulatory Authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Reinsurer Concentration</u>. The aggregate amount of risk retention for catastrophe reinsurance (but *excluding* catastrophe reinsurance the full amount of which is collateralized as reasonably determined by the Administrative Agent) provided for payment of claims on policies purchased from the Credit Parties, Subsidiaries and other Regulated Entities provided by (i) any Qualifying Reinsurer (other than the Florida Hurricane Catastrophe Fund) with an "A+" or higher financial strength rating from A.M. Best Company (or any successor in interest thereto), on an annual contract year basis, *exceeds* thirty-five percent (35.0%), or (ii) any other individual (or affiliated) reinsurer (other than the Florida Hurricane Catastrophe Fund), on an annual contract year basis, *exceeds* twenty-five percent (25.0%), in each case of the foregoing <u>clauses (n)(i</u>) and (<u>n)(ii</u>), of the aggregate amount of all such risk retention provided by all reinsurers (other than the Florida Hurricane Catastrophe Fund); <u>provided</u>, <u>that</u>, (A) for purposes of determining whether an Event of Default exists under this <u>clause (n</u>), reinsurance provided by Non-Qualifying Reinsurers shall be *excluded* from the calculation of the aggregate amount of risk retention to the extent that the aggregate amount of reinsurance provided by

------

Non-Qualifying Reinsurers *exceeds* ten percent (10.0%) of the aggregate amount of all reinsurance maintained by, or for the benefit of, the Regulated Entities whose Statutory Surpluses are available for payment of claims on policies issued by the Credit Parties, Subsidiaries and other Regulated Entities, and (B) no Event of Default shall arise under this <u>clause (n</u>) to the extent *solely* arising from the merger, after the Closing Date but *prior* to the renewal of the applicable reinsurance agreements, of any reinsurer into another reinsurer, so long as no party to any such merger is a Credit Party, a Subsidiary, another Regulated Entity, or an Affiliate of any of the foregoing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Dissolution</u>. Any order, judgment or decree shall be entered against any Credit Party, any Subsidiary, or any other Regulated Entity decreeing the dissolution or split up of any such Person, and such order, judgement or decree shall remain undischarged or unstayed for a period in *excess* of thirty (30) calendar days.

Section 9.2 <u>Remedies</u>. Subject to any applicable restrictions set forth in <u>Section</u> <u>9.4</u> in connection with the making of a Specified Equity Contribution, upon (a) the occurrence of an Automatic Acceleration Event of Default, automatically, and (b) the occurrence, and during the continuance, of any other Event of Default, at the request of (or with the consent of) the Required Lenders, upon notice to the Borrower by the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Revolving Commitments, if any, of each Lender having such Revolving Commitments, and the obligation of the Issuing Bank to issue any Letter of Credit, each shall immediately terminate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the DDTL Commitments, if any, of each Lender having such DDTL Commitments shall immediately terminate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each of the following shall immediately become due and payable, in each case, without presentment, demand, protest or other requirements of any kind, all of which are hereby expressly waived by each of the Credit Parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the unpaid principal amount of, and accrued interest on, the Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) an amount equal to the maximum amount that may at any time be drawn under all Letters of Credit then outstanding (regardless of whether any beneficiary under any such Letter of Credit shall have presented, or shall be entitled at such time to present, the drafts or other documents or certificates required to draw under such Letters of Credit); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) all other Obligations;

<u>provided</u>, <u>that</u>, the foregoing <u>sub-clauses (ii)(A</u>), (<u>ii)(B</u>) and (<u>ii)(C</u>) shall *not* affect in any way the obligations of the Lenders under <u>Section</u> <u>2.2(b)(iii</u>) or <u>Section</u> <u>2.3(e</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Administrative Agent shall cause the Collateral Agent to enforce any and all Liens and security interests created pursuant to Collateral Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Administrative Agent shall direct the Borrower to pay (and the Borrower hereby agrees, upon receipt of such notice, or automatically upon the occurrence of any Automatic Acceleration Event of Default, to pay) to the Administrative Agent such additional amounts of cash, to be held as security for the Borrower's reimbursement Obligations in respect of Letters of Credit then outstanding under arrangements acceptable to the Administrative Agent, equal to the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, at such time.

------

Notwithstanding anything herein or otherwise to the contrary, any Event of Default occurring hereunder shall continue to exist (and shall be deemed to be continuing) until such time as such Event of Default has been cured to the satisfaction of the Required Lenders or waived in writing in accordance with the terms of <u>Section</u> <u>11.4</u>.

Section 9.3 <u>Application of Funds</u>. After the exercise of remedies provided for in <u>Section</u> <u>9.2</u> (or after the Loans have automatically become immediately due and payable), any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>First</u>*, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (other than principal, interest and Letter of Credit Fees but including without limitation all reasonable out-of-pocket fees, expenses and disbursements of any law firm or other counsel and amounts payable under <u>Section</u> <u>3.1</u>, <u>Section</u> <u>3.2</u> and <u>Section</u> <u>3.3</u>) payable to the Administrative Agent and the Collateral Agent, in each case, in its capacity as such;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Second</u>*, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders, including, without limitation, all reasonable out-of-pocket fees, expenses and disbursements of any law firm or other counsel and amounts payable under <u>Section</u> <u>3.1</u>, <u>Section</u> <u>3.2</u> and <u>Section</u> <u>3.3</u>), ratably among the Lenders in proportion to the respective amounts described in this *<u>Second clause</u>* payable to them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Third</u>*, to payment of that portion of the Obligations constituting accrued and unpaid Letter of Credit Fees and interest on the Loans, Letter of Credit Borrowings and other Obligations ratably among such parties in proportion to the respective amounts described in this *<u>Third clause</u>* payable to them; 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Fourth</u>*, to: 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) payment of that portion of the Obligations constituting unpaid principal of the Loans and Letter of Credit Borrowings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) payment of breakage, termination or other amounts owing in respect of any Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, to the extent such Swap Agreement is permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) payments of amounts due under any Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Administrative Agent for the account of the Issuing Bank, to Cash Collateralize that portion of the Letter of Credit Obligations comprised of the aggregate undrawn amount of Letters of Credit;

ratably among such parties in proportion to the respective amounts described in this *<u>Fourth</u> <u>clause</u>* payable to them; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Last</u>*, the balance, if any, after all of the Obligations have been Paid in Full, to the Borrower or as otherwise required by Applicable Laws.

Subject to <u>Section</u> <u>2.3</u>, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to the *<u>Fourth clause</u>* above shall be applied to satisfy drawings under such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above.

Excluded Swap Obligations with respect to any Guarantor shall *not* be paid with amounts received from such Guarantor or such Guarantor's assets, but appropriate adjustments shall be made with respect to payments from other Credit Parties to preserve the allocation to Obligations otherwise set forth above in this <u>Section</u> <u>9.3</u>.

Notwithstanding anything to the contrary in the foregoing, Secured Swap Obligations and Secured Treasury Management Obligations shall be excluded from the application described above if the Administrative Agent has not received a Secured Party Designation Notice, together with such supporting documentation as the Administrative Agent may request, from the applicable Qualifying Swap Provider or Qualifying Treasury Management Bank, as the case may be. Each Qualifying Swap Provider or Qualifying Treasury Management Bank not a party to this Agreement that has given the notice contemplated by the preceding sentence shall, by such notice, be deemed to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of <u>Article 10</u> for itself and its Affiliates as if a "*Lender*" party to this Agreement.

Section 9.4 <u>Cure Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any provision to the contrary contained in this Agreement or any other Credit Document, for purposes of determining compliance with the Financial Covenants set forth in <u>Section</u> <u>8.8(a</u>) and <u>Section</u> <u>8.8(b</u>), respectively, the proceeds ("*<u>Cure Proceeds</u>*") of any cash equity contribution (which equity shall be common Equity Interests or other Equity Interests *not* constituting Disqualified Equity Interests) that is made by any of the holders (direct or indirect) of outstanding Equity Interests in the Borrower to the Borrower after the end of the applicable Fiscal Quarter in respect of which such Cure Proceeds are contributed but, in any event, on or prior to the date that is fifteen (15) Business Days after the date on which financial statements have been, or are required to have been, delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>) in respect of such Fiscal Quarter (each such period, a "*<u>Cure Period</u>*"), will be included in the calculation of (and such Cure Proceeds shall increase) Consolidated EBITDA on a dollar-for-dollar basis *solely* for the limited purpose of determining compliance with the Financial Covenant set forth in <u>Section</u> <u>8.8(a</u>) and/or the Financial Covenant set forth in <u>Section</u> <u>8.8(b</u>) (as applicable) for (I) such Fiscal Quarter, and (II) any subsequent fiscal period including such Fiscal Quarter (each such contribution of Cure Proceeds, a "*<u>Specified Equity Contribution</u>*"), and, for the avoidance of doubt, such Cure Proceeds shall be disregarded and shall *not* affect the calculation of Consolidated EBITDA for all other purposes of this Agreement and the other Credit Documents (including, without limitation, for purposes of calculating compliance with any of such Financial Covenants with respect to any other fiscal period, calculating compliance with the Financial Covenant set forth in <u>Section</u> <u>8.8(c</u>) with respect to any fiscal period, calculation of the Applicable Margin, calculation of availability under any Financial Covenant-related basket, carveout or exception set forth in this Agreement or any other Credit Document, or calculation of compliance, on a Pro Forma Basis or otherwise, with any financial ratio-based test or condition related to determining whether the consummation of any Specified Transaction is permitted under this Agreement or any other Credit Document), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) with respect to each fiscal period consisting of two (2) consecutive full Fiscal Quarters, there shall be *at least* one (1) Fiscal Quarter during such period in respect of which no Specified Equity Contribution is made;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there shall be *no more than* five (5) Specified Equity Contributions made in the aggregate during the term of this Agreement (it being understood and agreed that, in the event that a Specified Equity Contribution is made in respect of multiple Financial Covenants each measured as of the end of a single Fiscal Quarter, then such Specified Equity Contribution for such Fiscal Quarter shall count as a single Specified Equity Contribution for purposes of this <u>clause (a)(ii</u>));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate amount of Cure Proceeds contributed in respect of any individual Specified Equity Contribution shall be *no greater than* the minimum amount required to cause the Credit Parties to be in compliance with the applicable Financial Covenant(s) for the applicable Fiscal Quarter in respect of which such Specified Equity Contribution is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all Specified Equity Contributions shall be disregarded for purposes of the calculation of Consolidated EBITDA for all purposes of this Agreement and the other Credit Documents, other than for the express purpose(s), and for the applicable period(s), as described in the foregoing of this <u>Section</u> <u>9.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) there shall be no *pro forma* or other reduction in Indebtedness, through either the netting of cash or prepayment of the Term Loans or otherwise, with any Cure Proceeds received by any Credit Party, any Subsidiary or any other Regulated Entity in respect of any Specified Equity Contribution for purposes of determining compliance with the Financial Covenants for any period(s) in respect of which such Specified Equity Contribution is included in Consolidated EBITDA in accordance with this <u>clause (a</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Borrower shall prepay the Obligations with the Cure Proceeds received by any Credit Party, any Subsidiary or any Regulated Entity in connection with any Specified Equity Contribution in accordance with <u>Section</u> <u>2.11(c)(iv</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary contained in this Agreement or any other Credit Document, upon the Administrative Agent's receipt of written notice from the Borrower that it intends, prior to the expiration of the applicable Cure Period (relating to the applicable Fiscal Quarter with respect to which the applicable Financial Covenant violation(s) relate), to effect an equity cure pursuant to this <u>Section</u> <u>9.4</u> (any such notice being irrevocable) and until the expiration of such Cure Period, and *solely* to the extent that no Event of Default exists at such time (other than in respect of a Financial Covenant tested for such Fiscal Quarter), neither the Administrative Agent nor any Lender shall be permitted to (i) accelerate the Obligations, (ii) terminate the Commitments, (iii) impose Default Interest, or (iv) exercise remedies under the Credit Documents (including against the Collateral), in each case of the foregoing <u>clauses (b)(i</u>) through (<u>b)(iv</u>), *solely* as a result of such Event(s) of Default resulting from a violation of any Financial Covenant(s) tested for such Fiscal Quarter. Notwithstanding anything to the contrary in the foregoing, no Lender shall be required to make any Loan, and the Issuing Bank shall *not* be required to issue any Letter of Credit, from and after the last day of the applicable Fiscal Quarter (with respect to which the breach of an applicable Financial Covenant(s) has occurred) until the date on which the applicable Credit Party, Subsidiary or other Regulated Entity shall have received the Cure Proceeds in accordance with this <u>Section</u> <u>9.4</u>.

------

**Article 10** 

**<u>AGENCY</u>**

Section 10.1 <u>Appointment and Authority</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Lenders and the Issuing Bank hereby irrevocably appoints Regions Bank to act on its behalf as the Administrative Agent hereunder and under the other Credit Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this <u>Article 10</u> are *solely* for the benefit of the Administrative Agent, the Lenders and the Issuing Bank, and no Credit Party, Subsidiary or other Regulated Entity shall have rights as a third party beneficiary of any of such provisions. It is understood and agreed that the use of the term "*agent*" herein or in any other Credit Documents (or any other similar term) with reference to the Administrative Agent is *not* intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Lenders hereby irrevocably appoints, designates and authorizes the Collateral Agent to take such action on its behalf under the provisions of this Agreement and each Collateral Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any Collateral Document, together with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any Collateral Document, the Collateral Agent shall not have any duties or responsibilities, except those expressly set forth herein or therein, nor shall the Collateral Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any Collateral Document or otherwise exist against the Collateral Agent. Without limiting the generality of the foregoing sentence, the use of the term "*agent*" herein and in the Collateral Documents with reference to the Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. The Collateral Agent shall act on behalf of the Lenders with respect to any Collateral and the Collateral Documents, and the Collateral Agent shall have all of the benefits and immunities: (i) provided to the Administrative Agent under the Credit Documents with respect to any acts taken or omissions suffered by the Collateral Agent in connection with any Collateral or the Collateral Documents as fully as if the term "*Administrative Agent*" as used in such Credit Documents included the Collateral Agent with respect to such acts or omissions; and (ii) as additionally provided herein or in the Collateral Documents with respect to the Collateral Agent.

Section 10.2 <u>Rights as a Lender</u>. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender, and may exercise the same as though it were *not* the Administrative Agent, and the term "*Lender*" or "*Lenders*" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with, the Borrower, any Subsidiary or other Affiliate of the Borrower or any other Regulated Entity, as if such Person were *not* the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

------

Section 10.3 <u>Exculpatory Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Credit Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall *not* have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Credit Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Credit Documents), <u>provided</u>, <u>that</u>, the Administrative Agent shall *not* be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Credit Document or Applicable Law, including, for the avoidance of doubt, any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall *not*, except as expressly set forth herein and in the other Credit Documents, have any duty to disclose, and shall *not* be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall *not* be liable for any action taken or not taken by it: (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in <u>Section</u> <u>11.4</u> and <u>Section</u> <u>9.2</u>); or (ii) in the absence of its own gross negligence or willful misconduct, as determined by a court of competent jurisdiction by final and non-appealable judgment. The Administrative Agent shall be deemed *not* to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent in writing by the Borrower, a Lender or the Issuing Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall *not* be responsible for or have any duty to ascertain or inquire into:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any statement, warranty or representation made in or in connection with this Agreement or any other Credit Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Credit Document or any other agreement, instrument or document; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the satisfaction of any condition set forth in <u>Article 5</u> or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent and any assignor of a Loan or seller of a participation hereunder shall be entitled to rely conclusively on a representation of the assignee Lender or Participant in any document delivered in connection with this Agreement, including, without limitation, the relevant Assignment Agreement or participation agreement, as applicable, that such assignee or purchaser is not a Disqualified Institution. The Administrative Agent shall *not* be responsible or have any liability for, or have any duty to ascertain, inquire into, monitor or enforce, compliance with the provisions hereof relating to Disqualified Institutions. Without limiting the generality of the foregoing, the Administrative Agent shall not (x) be obligated to ascertain, monitor or inquire as to whether any Lender or Participant or prospective Lender or Participant is a Disqualified Institution, or (y) have any liability with respect to or arising out of any assignment or participation of Loans, or disclosure of confidential information, to any Disqualified Institution.

Section 10.4 <u>Reliance by Administrative Agent</u>. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the Issuing Bank, the Administrative Agent may presume that such condition is satisfactory to such Lender or the Issuing Bank unless the Administrative Agent shall have received notice to the contrary from such Lender or the Issuing Bank prior to the making of such Loan or the issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower and its Subsidiaries), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

Section 10.5 <u>Delegation of Duties</u>. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Credit Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this <u>Section</u> <u>10.5</u> shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

Section 10.6 <u>Resignation of Administrative Agent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent may at any time give notice of its resignation to the Lenders, the Issuing Bank and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an office in the United States (but which shall not be a Disqualified Institution), or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring

------

Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the "*<u>Resignation Effective Date</u>*"), then the retiring Administrative Agent may (but shall not be obligated to) on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent meeting the qualifications set forth above. Whether or not a successor has been appointed such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Person serving as Administrative Agent is a Defaulting Lender pursuant to <u>clause</u> <u>(d</u>) of the definition thereof, the Required Lenders may, to the extent permitted by Applicable Law by notice in writing to the Borrower and such Person remove such Person as the Administrative Agent and, in consultation with the Borrower, appoint a successor. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days (or such earlier day as shall be agreed by the Required Lenders (the "*<u>Removal Effective Date</u>*")), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With effect from the Resignation Effective Date or the Removal Effective Date (as applicable): (1) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Credit Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders or the Issuing Bank under any of the Credit Documents, the retiring or removed Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed); and (2) except for any indemnity payments owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and the Issuing Bank directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments owed to the retiring or removed Administrative Agent), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Credit Documents (if not already discharged therefrom as provided above in this Section). The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor, unless otherwise agreed between the Borrower and such successor. After the retiring or removed Administrative Agent's resignation or removal hereunder and under the other Credit Documents, the provisions of this <u>Article 10</u> and <u>Section</u> <u>11.2</u> shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.

Section 10.7 <u>Non-Reliance on Administrative Agent and Other Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Lenders and the Issuing Bank acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each of the Lenders and the Issuing Bank also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Credit Document or any related agreement or any document furnished hereunder or thereunder.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Lender hereby represents and warrants that: (i) (A) the Credit Documents set forth the terms of a commercial lending facility, and (B) such Lender is engaged in the making, acquiring or holding of commercial loans in the ordinary course, and is entering into this Agreement as a Lender for the purpose of making, acquiring or holding commercial loans and providing other credit facilities as set forth in this Agreement, as may be applicable to such Lender, and *not*, in any event, for the purpose of purchasing, acquiring or holding any other type of financial instrument or any security; and (ii) such Lender is sophisticated with respect to decisions to make, acquire and/or hold commercial loans and to provide other credit facilities as set forth in this Agreement, as may be applicable to such Lender, and either it, or the Person exercising discretion in making its decision to make, acquire and/or hold such commercial loans, and/or to provide such other credit facilities, as the case may be, is experienced in making, acquiring or holding such commercial loans and/or providing such other credit facilities. Each Lender agrees *not* to assert a claim in contravention of any of the foregoing of this <u>clause (b</u>).

Section 10.8 <u>No Other Duties, etc</u>. Anything herein to the contrary notwithstanding, none of the Arrangers, Co-Documentation Agents or Syndication Agent listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Credit Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or the Issuing Bank hereunder.

Section 10.9 <u>Administrative Agent May File Proofs of Claim</u>. In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or Letter of Credit Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, Letter of Credit Obligations and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the Issuing Bank and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the Issuing Bank and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the Issuing Bank and the Administrative Agent under <u>Section</u> <u>2.10</u> and <u>Section</u> <u>11.2</u>) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and the Issuing Bank to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders and the Issuing Bank, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under <u>Section</u> <u>2.10</u> and <u>Section</u> <u>11.2</u>).

------

Section 10.10 <u>Collateral and Guaranty Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Lenders (including the Issuing Bank and the Swingline Lender) irrevocably authorize the Administrative Agent and the Collateral Agent, at its option and in its discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to release any Lien on any Property granted to, or held under, any Credit Document securing the Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) upon the Payment in Full of the Obligations under this Agreement and the other Credit Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) that is sold or otherwise disposed of, or to be sold or otherwise disposed of, as part of, or in connection with, any sale or other disposition permitted under the Credit Documents or consented to in accordance with the terms of this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) subject to <u>Section</u> <u>11.4</u>, if approved, authorized or ratified in writing by the Required Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to subordinate any Lien on any Property granted to, or held under, any Credit Document securing the Obligations to the holder of any Lien on such Property that is permitted by <u>Section</u> <u>8.2(m</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to release any Guarantor from its obligations under this Agreement and the other Credit Documents if such Person ceases to be a Guarantor as a result of a transaction permitted under the Credit Documents.

Upon request by the Administrative Agent or the Collateral Agent at any time, the Required Lenders will confirm in writing the Administrative Agent's authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under this Agreement pursuant to this <u>Section</u> <u>10.10</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall *not* be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Administrative Agent's Lien thereon, or any certificate prepared by any Credit Party in connection therewith, nor shall the Administrative Agent be responsible or liable to the Lenders for any failure to monitor or maintain any portion of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Anything contained in any of the Credit Documents to the contrary notwithstanding, each of the Credit Parties, the Administrative Agent, the Collateral Agent and each holder of the Obligations hereby agree that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no holder of the Obligations shall have any right individually to realize upon any of the Collateral or to enforce this Agreement, the Notes or any other Credit Document, it being understood and agreed that all powers, rights and remedies hereunder may be exercised *solely* by the Administrative Agent, on behalf of the holders of the Obligations in accordance with the terms hereof and all powers, rights and remedies under the Collateral Documents may be exercised *solely* by the Collateral Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event of a foreclosure by the Collateral Agent on any of the Collateral pursuant to a public or private sale or other disposition, the Collateral Agent or any Lender may be the purchaser of any or all of such Collateral at any such sale or other disposition, and the Collateral Agent, as agent for and representative of the holders of the Obligations (but *not* any Lender or Lenders in its or their respective individual capacities, unless the Required Lenders shall otherwise agree in writing) shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all, or any portion, of the Collateral sold at any such public sale, to use and apply any of the Obligations as a credit on account of the purchase price for any collateral payable by the Collateral Agent at such sale or other disposition.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Secured Swap Agreement or Secured Treasury Management Agreement will create (or be deemed to create) in favor of any Qualifying Swap Provider or any Qualifying Treasury Management Bank, respectively that is a party thereto any rights in connection with the management or release of any Collateral or of the obligations of the Borrower or any other Credit Party under the Credit Documents except as expressly provided herein or in the other Credit Documents. By accepting the benefits of the Collateral, each such Qualifying Swap Provider and Qualifying Treasury Management Bank shall be deemed to have appointed the Collateral Agent as its agent and agreed to be bound by the Credit Documents as a holder of the Obligations, subject to the limitations set forth in this <u>clause (d</u>). Furthermore, it is understood and agreed that the Qualifying Swap Provider and Qualifying Treasury Management Banks, in their capacity as such, shall *not* have any right to notice of any action or to consent to, direct or object to any action hereunder or under any of the other Credit Documents or otherwise in respect of the Collateral (including the release or impairment of any Collateral, or to any notice of or consent to any amendment, waiver or modification of the provisions hereof or of the other Credit Documents) other than in its capacity as a Lender and, in any case, only as expressly provided herein.

Section 10.11 <u>Erroneous Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Administrative Agent notifies a Lender, the Issuing Bank, any other holder(s) of the Obligations or any other Person(s) who has received funds on behalf of a Lender, the Issuing Bank or any other holder(s) of the Obligations (any such Lender, Issuing Bank, other holder(s) of the Obligations or other recipient(s), a "*<u>Payment Recipient</u>*") that the Administrative Agent has determined in its sole discretion (whether or not after its receipt of any notice delivered pursuant to <u>clause (b</u>) below) that any funds received by such Payment Recipient from the Administrative Agent, or any of its Affiliates, were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient on its behalf) (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "*<u>Erroneous Payment</u>*") and demands the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall, at all times, remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in *no* event *later than* two (2) Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from, and including, the date on which such Erroneous Payment (or portion thereof) was received by such Payment Recipient to, and including, the date on which such amount is repaid to the Administrative Agent in same day funds at the *greater of* the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice delivered from the Administrative Agent to any Payment Recipient pursuant to this <u>clause (a</u>) shall be conclusive and binding, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting anything in the immediately foregoing <u>clause (a</u>), each Lender, the Issuing Bank, each other holder(s) of the Obligations party hereto and each other Payment Recipient party hereto hereby further agrees that, if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (I) that is in a different amount than, or on a different date

------

from, that specified in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (II) that was *not* preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (III) that such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient(s) otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part), in each case of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) in any such case of the immediately preceding <u>clauses (b)(I</u>) or (b)(<u>II</u>), an error shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary), or (B) in any such case of the immediately preceding <u>clause (b)(III</u>), an error has been made, in each case of the foregoing <u>clauses (b)(i)(A</u>) and (<u>b)(i)(B</u>), with respect to such payment, prepayment or repayment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient(s) shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in any event, within one (1) Business Day of its obtaining knowledge of such error) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this <u>clause (b</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Lender, the Issuing Bank, each other holder of the Obligations party hereto and each other Payment Recipient party hereto hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s) under any Credit Document, or otherwise payable or distributable by the Administrative Agent to such Lender, the Issuing Bank, such other holder(s) of the Obligations and/or such other Payment Recipient(s) from any source, against any amount due to the Administrative Agent under immediately preceding <u>clause (a</u>) or under the indemnification provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that an Erroneous Payment (or portion thereof) is *not* recovered by the Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance with foregoing <u>clause (a</u>), from any Lender, the Issuing Bank, any other holder(s) of the Obligations or any other Payment Recipient(s) that has received such Erroneous Payment (or portion thereof) (and/or from any other recipient who received such Erroneous Payment (or portion thereof) on the respective behalf of any of the foregoing) (such unrecovered amount, an "*<u>Erroneous Payment Return Deficiency</u>*"), upon the Administrative Agent's notice to such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, at any time: (i) such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, shall be deemed to have assigned (to the extent it has any such Loans) its Loans (but *not* its Commitments) of the relevant Class with respect to which such Erroneous Payment was made (the "*<u>Erroneous Payment Impacted Class</u>*") in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of such Loans (but *not* Commitments) of the Erroneous Payment Impacted Class, the "*<u>Erroneous Payment Deficiency</u> <u>Assignment</u>*") at par *plus* any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance), and such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, is hereby (together with the Borrower) deemed to have executed and delivered an Assignment Agreement (or, to the extent applicable, an agreement incorporating an Assignment Agreement by reference pursuant to Debtdomain, Intralinks, Syndtrak, or a substantially similar electronic transmission system as to which the Administrative Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and <u>further</u>, such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment

------

Recipient(s), as the case may be, shall deliver any Note(s) evidencing any such Loans to the Administrative Agent; (ii) the Administrative Agent, as the assignee Lender, shall be deemed to acquire the Erroneous Payment Deficiency Assignment; (iii) upon such deemed acquisition, the Administrative Agent, as the assignee Lender, shall become a Lender, the Issuing Bank or such other type of holder of the Obligations, as the case may be, hereunder with respect to such Erroneous Payment Deficiency Assignment, and <u>further</u>, the assigning Lender, the Issuing Bank or such other holder(s) of the Obligations shall cease to be a Lender, the Issuing Bank or such other holder of the Obligations, as the case may be, hereunder with respect to such Erroneous Payment Deficiency Assignment, but *excluding*, for the avoidance of doubt, such Person's obligations under the indemnification provisions of this Agreement and its applicable Commitments, which shall survive as to such assigning Lender, Issuing Bank or other holder(s) of the Obligations; and (iv) the Administrative Agent may reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. The Administrative Agent may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and, upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender, the Issuing Bank, the other applicable holder(s) of the Obligations or the other such applicable Payment Recipient(s), as the case may be, shall be *reduced* by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be (and/or against any recipient that receives funds on the respective behalf of any of the foregoing). For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender or the Issuing Bank, and such Commitments shall remain available in accordance with the terms of this Agreement. In addition, each party hereto agrees that, except to the extent that the Administrative Agent has sold a Loan (or portion thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and irrespective of whether the Administrative Agent may be equitably subrogated, the Administrative Agent shall be contractually subrogated to all of the rights and interests of the applicable Lender, the Issuing Bank or any other applicable holder(s) of the Obligations under the Credit Documents with respect to each Erroneous Payment Return Deficiency (the "*<u>Erroneous Payment Subrogation Rights</u>*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each of the parties hereto agree that an Erroneous Payment shall *not* pay, prepay, repay, discharge, or otherwise satisfy any Obligations owed by the Borrower or any other Credit Party, except, in each case, to the extent that such Erroneous Payment is, and *solely* with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrower or any other Credit Party for the purpose of making such Erroneous Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent permitted by Applicable Law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and each party hereto, to the extent constituting a Payment Recipient, hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including, without limitation, waiver of any defense based on "*discharge for value*" or any similar doctrine. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each party's respective obligations, agreements and waivers under this <u>Section</u> <u>10.11</u> shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, any Lender, the Issuing Bank or any other holder(s) of the Obligations, the termination of any or all of the Commitments, and/or the repayment, satisfaction or discharge of any or all of the Obligations (or any portion thereof) under any Credit Document.

------

**Article 11** 

**<u>MISCELLANEOUS</u>**

Section 11.1 <u>Notices; Effectiveness; Electronic Communications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices Generally</u>. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in <u>clause (b</u>) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier or electronic mail as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Administrative Agent, the Borrower or any other Credit Party, to the address, telecopier number, electronic mail address or telephone number specified in <u>Appendix B</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to any Lender, the Issuing Bank or the Swingline Lender, to the address, telecopier number, electronic mail address or telephone number in its Administrative Questionnaire on file with the Administrative Agent.

Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by telecopier shall be deemed to have been given when sent (except that, if *not* given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices and other communications delivered through electronic communications to the extent provided in <u>clause (b</u>) below, shall be effective as provided in <u>clause (b</u>) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Electronic Communications</u>. Notices and other communications to the Lenders and the Issuing Bank hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, <u>provided</u>, <u>that</u>, the foregoing shall *not* apply to notices to any Lender or the Issuing Bank pursuant to <u>Article 2</u> if such Lender or the Issuing Bank, as applicable, has notified the Administrative Agent and the Borrower that it is incapable of receiving notices under such Article by electronic communication. The Administrative Agent or any Credit Party may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, <u>provided</u>, <u>that</u>, approval of such procedures may be limited to particular notices or communications.

Unless the Administrative Agent otherwise prescribes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "*return receipt requested*" function, as available, return e-mail or other written acknowledgement); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing <u>clause (b)(i</u>) of notification that such notice or communication is available and identifying the website address therefor,

------

<u>provided</u>, <u>that</u>, with respect to <u>clauses (b)(i</u>) and (<u>b)(ii</u>) above, if such notice or other communication is *not* sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Change of Address, Etc</u>. Any party hereto may change its address or telecopier number for notices and other communications hereunder by notice to the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Platform</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Credit Party agrees that the Administrative Agent may, but shall *not* be obligated to, make the Communications (as defined below) available to the Issuing Bank and the other Lenders by posting the Communications on Debtdomain, Intralinks, Syndtrak or a substantially similar electronic transmission system (the "*<u>Platform</u>*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Platform is provided "*as is*" and "*as available*". The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or the Platform. In no event shall the Administrative Agent or any of its Related Parties (collectively, the "*<u>Agent Parties</u>*") have any liability to the Borrower or the other Credit Parties, any Lender or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower's, any other Credit Party's or the Administrative Agent's transmission of communications through the Platform. "*<u>Communications</u>*" means, collectively, any notice, demand, communication, information, document or other material provided by, or on behalf of, any Credit Party pursuant to any Credit Document or the transactions contemplated therein which is distributed to the Administrative Agent, any Lender or the Issuing Bank by means of electronic communications pursuant to this Section, including through the Platform.

Section 11.2 <u>Expenses; Indemnity; Damage Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Costs and Expenses</u>. The Credit Parties shall pay, on a joint and several basis, each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all reasonable and documented costs and out-of-pocket expenses incurred by the Administrative Agent and its Affiliates (which, in the case of legal counsel, shall be limited to the reasonable fees, charges and disbursements of one primary counsel for the Administrative Agent, the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, one local counsel to the Administrative Agent, the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) if reasonably deemed necessary by the Administrative Agent, and, *solely* in the case of an actual or perceived conflict of interest, one additional primary counsel and, if reasonably deemed necessary by the Administrative Agent (or the relevant Lender or Lenders, as applicable), one additional counsel in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) for each group of such affected Persons similarly situated, taken as a whole) in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Credit Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all reasonable and documented costs and out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all reasonable and documented costs and out-of-pocket expenses incurred by the Administrative Agent, any Lender or the Issuing Bank (which, in the case of legal counsel, shall be limited to the reasonable fees, charges and disbursements of one primary counsel for the Administrative Agent, the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, one local counsel to the Administrative Agent, the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) if reasonably deemed necessary by the Administrative Agent, and, *solely* in the case of an actual or perceived conflict of interest, one additional primary counsel and, if reasonably deemed necessary by the Administrative Agent (or the relevant Lender or Lenders, as applicable), one additional counsel in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) for each group of such affected Persons similarly situated, taken as a whole) in connection with the enforcement or protection of its rights:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in connection with this Agreement and the other Credit Documents, including its rights under this Section; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification by the Credit Parties</u>. The Credit Parties shall indemnify, on a joint and several basis, the Administrative Agent (and any sub-agent thereof), the Collateral Agent (and any sub-agent thereof), each Lender and the Issuing Bank, and each Related Party of any of the foregoing Persons (each such Person being called an "*<u>Indemnitee</u>*") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (which, in the case of legal counsel, shall be limited to the reasonable fees, charges and disbursements of one primary counsel for the Indemnitees, taken as a whole, and of one special and local counsel to the Indemnitees, taken as a whole, in each applicable jurisdiction retained by the Administrative Agent and/or the Collateral Agent, and, in the event of any actual or potential conflict of interest, one additional primary, special and local counsel, as applicable, for each Indemnitee subject to a conflict), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Borrower or any other Credit Party) other than such Indemnitee or its Related Parties arising out of, in connection with, or as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the execution or delivery of this Agreement, any other Credit Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by any Credit Party, any Subsidiary or any other Regulated Entity, or any Environmental Liability related in any way to any Credit Party, any Subsidiary or any other Regulated Entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing <u>sub-clauses (b)(i</u>), (<u>b)(ii</u>), or (<u>b)(iii</u>), whether based on contract, tort or any other theory, whether brought by a third party or by any Credit Party, any Subsidiary or any other Regulated Entity, and regardless of whether any Indemnitee is a party thereto;

<u>provided</u>, <u>that</u>, such indemnity shall *not*, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses: (x) are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee; or (y) result from a claim brought by the Borrower or any Credit Party against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder or under any other Credit Document, if the Borrower or such Credit Party has obtained a final and non-appealable judgment in its favor on such claim as determined by a court of competent jurisdiction. This <u>clause (b</u>) shall *not* apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Reimbursement by Lenders</u>. To the extent that the Credit Parties for any reason fail to indefeasibly pay any amount required under <u>clauses (a</u>) or (<u>b</u>) above to be paid by it to the Administrative Agent (or any sub-agent thereof), the Collateral Agent (or any sub-agent thereof), the Issuing Bank or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the Collateral Agent (or any such sub-agent), the Issuing Bank or such Related Party, as the case may be, such Lender's *pro rata* share (in each case, determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount, <u>provided</u>, <u>that</u>, the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or the Issuing Bank in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) or the Issuing Bank in connection with such capacity. The obligations of the Lenders under this <u>clause (c</u>) are subject to the provisions of this Agreement that provide that their obligations are several in nature, and not joint and several.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Waiver of Consequential Damages, Etc</u>. To the fullest extent permitted by Applicable Law, none of the Credit Parties shall assert, and each hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Credit Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof. No Indemnitee referred to in <u>clause (b</u>) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Credit Documents or the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payments</u>. All amounts due under this Section shall be payable promptly, but in any event within ten (10) Business Days after written demand therefor (including delivery of copies of applicable invoices, if any).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Survival</u>. The provisions of this Section shall survive resignation or replacement of the Administrative Agent, Collateral Agent, the Issuing Bank, the Swingline Lender or any Lender, termination of the commitments hereunder and repayment, satisfaction and discharge of the loans and obligations hereunder.

------

Section 11.3 <u>Set-Off</u>. If an Event of Default shall have occurred and be continuing, each Lender, the Issuing Bank, and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, the Issuing Bank or any such Affiliate to or for the credit or the account of the Borrower or any other Credit Party against any and all of the obligations of the Borrower or such Credit Party now or hereafter existing under this Agreement or any other Credit Document to such Lender, the Issuing Bank or their respective Affiliates, irrespective of whether or not such Lender, the Issuing Bank or such Affiliate shall have made any demand under this Agreement or any other Credit Document and although such obligations of the Borrower or such Credit Party may be contingent or un-matured or are owed to a branch, office or Affiliate of such Lender or the Issuing Bank different from the branch or office holding such deposit or obligated on such indebtedness; <u>provided</u>, <u>that</u>, in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of <u>Section</u> <u>2.16</u> and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing Bank, and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender, the Issuing Bank and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, the Issuing Bank or their respective Affiliates may have. Each of the Lenders and the Issuing Bank agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application, <u>provided</u>, <u>that</u>, the failure to give such notice shall *not* affect the validity of such setoff and application.

Section 11.4 <u>Amendments and Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Required Lenders' Consent</u>. Subject to <u>clauses (b</u>) and (<u>c</u>) below, no amendment, modification, termination or waiver of any provision of the Credit Documents, or consent to any departure by any Credit Party therefrom, shall in any event be effective without the written concurrence of the Administrative Agent and the Required Lenders, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each of the Fee Letter and any Auto Borrow Agreement may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitments, Loans and/or Letter of Credit Obligations of such Lender may *not* be increased or extended without the consent of such Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each Lender is entitled to vote as such Lender sees fit on any bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the provisions of Section 1126(c) of the Bankruptcy Code of the United States supersedes the unanimous consent provisions set forth herein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Required Lenders shall determine whether or not to allow any Credit Party to use cash collateral in the context of a bankruptcy or insolvency proceeding and such determination shall be binding on all of the Lenders.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Affected Lenders' Consent</u>. Without the written consent of each Lender (other than a Defaulting Lender except as provided in <u>clause (a)(ii</u>) above) that would be affected thereby (it being understood and agreed, for purposes of clarity, that all Lenders shall be deemed to be affected Lenders for purposes of any amendment, modification, termination, or consent described in <u>clauses (b)(v</u>), (<u>b)(vii</u>), (<u>b)(viii</u>) and (<u>b)(ix</u>) below), but subject to <u>Section</u> <u>3.1(a</u>), no amendment, modification, termination, or consent shall be effective if the effect thereof would be to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) extend the Revolving Commitment Termination Date, the DDTL Commitment Termination Date, or any Maturity Date, or otherwise postpone the scheduled date for the termination or reduction of any Commitment of a Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) waive, reduce the amount (or the amount payable in cash) of, or postpone or extend the time for payment (in cash or otherwise) of, any scheduled (including at maturity) payment or repayment (other than any mandatory prepayment) in respect of any Loan, Letter of Credit or other Obligation, whether of principal, interest, fees, reimbursement obligations or other amounts, or otherwise reduce the rate of interest applicable thereto; <u>provided</u>, <u>that</u>, only the consent of the Required Lenders shall be necessary to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) waive any imposition of the Default Rate pursuant to <u>Section</u> <u>2.9</u>, amend the definition of "*Default Rate*" in <u>Section</u> <u>1.1</u>, or otherwise waive any obligation of the Borrower to pay interest at the Default Rate; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) amend any Financial Covenant (or any defined term used therein) even if the effect of such amendment would be to reduce the rate of interest on any Loan or to reduce any fee payable hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) change the provisions of: (A) <u>Section</u> <u>2.12</u>, <u>Section</u> <u>2.14</u> or <u>Section</u> <u>9.3</u> in any respect; or (B) <u>Section</u> <u>2.11</u> in any manner that would alter the *pro rata* sharing of payments, the *pro rata* reduction of Commitments, and/or the order of application of funds or proceeds required thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) extend the stated expiration date of any Letter of Credit beyond the Revolving Commitment Termination Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amend, modify, terminate, or waive any provision of this <u>clause (b</u>), any provision of the below <u>clause (c</u>), or any other provision of this Agreement that expressly provides that the consent of all Lenders, or of all affected Lenders, is required to amend, modify, terminate, or waive such provision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) amend the definitions of "*Required DDTL Lenders*", "*Required Lenders*" or "*Required Revolving Lenders*" in <u>Section</u> <u>1.1</u>, or otherwise change the percentage of the Total Credit Exposures (or any component(s) thereof) of all of the Lenders that is required for the Lenders, or any of them, to take any action hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) (A) release all, or substantially all, of the Guarantors from their respective obligations hereunder, or (B) limit the liability of such Guarantors under <u>Article 4</u> or under any other guaranty agreement Guaranteeing the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) release all, or substantially all, of the Collateral;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) consent to the assignment or transfer by the Borrower of any of its rights and obligations under any Credit Document, or otherwise to the release of the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) subordinate (or consent to the subordination of), in whole or in part, (A) any of the Liens in favor of the Collateral Agent, for the benefit of the holders of the Obligations, securing any or all of the Obligations to any Liens securing any Indebtedness, or (B) any of the Obligations in right of payment to any Indebtedness, in each case of the foregoing <u>clauses</u> <u>(b)(x)(A</u>) and (<u>b)(x)(B</u>), other than as expressly permitted by this Agreement as in effect on the Closing Date with respect to Indebtedness of the type described in <u>Section</u> <u>8.1(e</u>) (as in effect on the Closing Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Consents</u>. No amendment, modification, termination or waiver of any provision of the Credit Documents, or consent to any departure by the Borrower or any other Credit Party therefrom, shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) increase any Commitment of any Lender over the amount thereof then in effect (or otherwise reinstate any previously terminated Commitment of any Lender) without the consent of such Lender; <u>provided</u>, <u>that</u>, no amendment, modification or waiver of any condition precedent, covenant, Default or Event of Default shall constitute an increase in any Commitment of any Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) amend, modify, terminate or waive any provision hereof relating to the Swingline Sublimit or the Swingline Loans without the consent of the Swingline Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) amend, modify, terminate or waive any obligation of Lenders relating to the purchase of participations in Letters of Credit as provided in <u>Section</u> <u>2.3(e</u>) without the written consent of the Administrative Agent and of the Issuing Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) amend, modify, terminate or waive any provision of this <u>Article 11</u> as the same applies to the Administrative Agent, or any other provision hereof as the same applies to the rights or obligations of the Administrative Agent, in each case, without the consent of the Administrative Agent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amend, modify, terminate or waive any condition precedent to the obligation of each Lender to fund its respective Commitment Percentage of any Credit Extension on any Credit Date set forth in <u>Section</u> <u>5.2</u>, without the consent of the Required Revolving Lenders (in the case of the making of a Revolving Loan or the issuing or extending of a Letter of Credit) or the Required DDTL Lenders (in the case of the making of an advance under the Delayed Draw Term Loan), as applicable (it being understood and agreed that the consent of the Required Lenders, in addition to the consent of the Required DDTL Lenders or the Required Revolving Lenders (as applicable), shall *not* be required for any such amendment, modification, termination or waiver).

Notwithstanding any of the foregoing to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) this Agreement may be amended: (I) to implement technical, administrative and/or mechanical changes pursuant to an Incremental Facility Agreement effected in accordance with <u>Section</u> <u>2.1(e)(ii</u>); (II) to effect Conforming Changes in accordance with <u>Section</u> <u>2.7(i</u>); and (III) in connection with the implementation of a Benchmark Replacement and/or any related Conforming Changes, all as provided in <u>Section</u> <u>3.1(g</u>);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Borrower and the other Credit Parties shall *not* be required for any amendment, modification or waiver of the provisions of <u>Article 10</u> (other than the provisions of <u>Section</u> <u>10.6</u> or <u>Section</u> <u>10.10</u>), so long as such amendment is *not* adverse to the interests of the Borrower and the other Credit Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the Credit Parties, the Administrative Agent and/or the Collateral Agent, without the consent of any Lender, may enter into any amendment, modification or waiver of any Credit Document, or enter into any new agreement or instrument, to effect the granting, perfection, protection, expansion or enhancement of any security interest in any Collateral or additional property to become Collateral for the benefit of the holders of the Obligations, or as required by local law to give effect to, or protect any security interest for the benefit of the holders of the Obligations, in any property or so that the security interests therein comply with Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the Administrative Agent, the Collateral Agent, and the Borrower may amend, modify or supplement this Agreement or any other Credit Document to cure or correct administrative or technical errors or omissions or any ambiguity, mistake, defect, inconsistency or obvious error, or to make any necessary or desirable administrative or technical change, and such amendment shall become effective without any further consent of any other party to such Credit Document, so long as such amendment, modification or supplement does *not* adversely affect the rights of any Lender or any other holder of the Obligations in any material respect, if the same is *not* objected to in writing by the Required Lenders within five (5) Business Days following receipt of notice thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) this Agreement may be amended and restated without the consent of any Lender (but with the consent of the Borrower and the Administrative Agent) if, upon giving effect to such amendment and restatement, such Lender shall no longer be a party to this Agreement (as so amended and restated), the Commitments of such Lender shall have terminated, such Lender shall have no other commitment or other obligation hereunder, and shall have been paid in full all principal, interest and other amounts owing to it, or accrued for its account, under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Execution of Amendments, etc</u>. The Administrative Agent may, but shall have no obligation to, with the concurrence of any Lender, execute amendments, modifications, waivers or consents on behalf of such Lender. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on any Credit Party in any case shall entitle any Credit Party to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver or consent effected in accordance with this <u>Section</u> <u>11.4</u> shall be binding upon the Administrative Agent, each Lender at the time outstanding, each future Lender and, if signed by the Borrower, on the Borrower.

Section 11.5 <u>Successors and Assigns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors and Assigns Generally</u>. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Credit Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to an assignee in accordance with the provisions of <u>clause (b</u>) below;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) by way of participation in accordance with the provisions of <u>clause (d</u>) below; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) by way of pledge or assignment of a security interest subject to the restrictions of <u>clause (e</u>) below (and any other attempted assignment or transfer by any party hereto shall be null and void).

Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in <u>clause (d</u>) below and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignments by Lenders</u>. Any Lender may, at any time, assign to one or more assignees (other than to any Disqualified Institution) all, or a portion, of its rights and obligations under this Agreement (including all, or a portion, of its Commitments, Loans and obligations hereunder at the time owing to it), <u>provided</u>, <u>that</u>, any such assignment shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Minimum Amounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in the case of an assignment of the entire remaining amount of the assigning Lender's Commitments and Loans at the time owing to it of the relevant Class or contemporaneous assignments to Approved Funds (that equal *at least* the amounts specified in <u>clause (b)(i)(B</u>) below in the aggregate) or, in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in any case *not* described in <u>clause (b)(i)(A</u>) above, the aggregate amount of the Commitment(s), and/or the aggregate outstanding principal balance of the Loan(s), of the relevant Class of the assigning Lender subject to such assignment (determined as of the date the Assignment Agreement evidencing such assignment tis delivered to the Administrative Agent or, if a "*Trade Date*" is specified in such Assignment Agreement, as of the Trade Date) shall *not* be *less than* (I) Two Million Dollars ($2,000,000), in the case of any assignment of Revolving Loans or Revolving Commitments, and (II) Five Million Dollars ($5,000,000), in the case of any assignment of Term Loans or Term Loan Commitments, unless (in any such case of the foregoing <u>clauses (b)(i)(B)(I</u>) or (<u>b)(i)(B)(II</u>)) each of the Administrative Agent and, so long as no Event of Default shall have occurred and is continuing, the Borrower otherwise consents (each such consent *not* to be unreasonably withheld, conditioned or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Proportionate Amounts</u>. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Commitments and Loans assigned, except that this <u>clause (b)(ii</u>) shall *not* prohibit any Lender from assigning all, or a portion, of its rights and obligations on a non-*pro rata* basis as between its Revolving Commitment and/or Revolving Loans, on the one hand, and its Commitments in respect of Term Loans and/or its Term Loans, on the other the hand.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Required Consents</u>. No consent shall be required for any assignment except to the extent required by <u>clause (b)(i)(B</u>) above and, in addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required, unless (I) an Event of Default shall have occurred and is continuing at the time of such assignment, or (II) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; <u>provided</u>, <u>that</u>, the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Administrative Agent (such consent *not* to be unreasonably withheld or delayed) shall be required for assignments in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) commitments under revolving credit facilities and unfunded commitments under term loan facilities if such assignment is to a Person that is *not* a Lender with a commitment in respect of such facility, an Affiliate of such Lender or an Approved Fund with respect to such Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) a funded Term Loan to a Person who is *not* a Lender, an Affiliate of a Lender or an Approved Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the consent of the Issuing Bank (such consent *not* to be unreasonably withheld or delayed) shall be required for any assignment in respect of any Revolving Commitment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the consent of the Swingline Lender (such consent *not* to be unreasonably withheld or delayed) shall be required for any assignment in respect of any Revolving Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Assignment Agreement</u>. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment Agreement, together with a processing and recordation fee in the amount of Three Thousand Five-Hundred Dollars ($3,500), unless waived, in whole or in part by the Administrative Agent in its discretion. The assignee, if it is *not* a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Assignment to Certain Persons</u>. No such assignment shall be made to: (A) any Credit Party, any Subsidiary, any other Regulated Entity, or any Affiliate of any of the foregoing; (B) any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this <u>clause (b)(v)(B</u>); or (C) a Disqualified Institution, <u>provided</u>, <u>that</u>, any assignment made to a Disqualified Institution in violation of this <u>clause (b)(v)(C</u>) shall *not* be void, but the provisions of <u>clause (f)(ii</u>) below may apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>No Assignment to Natural Persons</u>. No such assignment shall be made to a natural person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <u>Certain Additional Payments</u>. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or sub-participations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable *pro rata* share of

------

Loans previously requested but *not* funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to: (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent, the Issuing Bank, the Swingline Lender and each other Lender hereunder (and interest accrued thereon); and (y) acquire (and fund as appropriate) its full *pro rata* share of all Loans and participations in Letters of Credit and Swingline Loans in accordance with its Revolving Commitment Percentage. Notwithstanding anything to the contrary in the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under Applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to <u>clause (c</u>) below, from and after the effective date specified in each Assignment Agreement, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment Agreement, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment Agreement, be released from its obligations under this Agreement (and, in the case of an Assignment Agreement covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of <u>Section</u> <u>2.16</u>, <u>Section</u> <u>2.17</u> and <u>Section</u> <u>11.2</u> with respect to facts and circumstances occurring prior to the effective date of such assignment; <u>provided</u>, <u>that</u>, except to the extent expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender. The Borrower will execute and deliver on request, at its own expense, a Note to the assignee evidencing the interests taken by way of assignment hereunder. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does *not* comply with this subsection (other than an assignment or transfer to a Disqualified Institution) shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with <u>clause (d</u>) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Register</u>. The Administrative Agent, acting *solely* for this purpose as an agent of the Borrower, shall maintain at one of its offices in the United States, a copy of each Assignment Agreement delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans and Obligations owing to, each Lender pursuant to the terms hereof from time to time (the "*<u>Register</u>*"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Participations</u>. Any Lender may at any time, without the consent of, or notice to, any Credit Party or the Administrative Agent, sell participations to any Person (other than a natural Person, a Credit Party, a Subsidiary, another Regulated Entity, another Affiliate of any of the foregoing, or a Disqualified Institution) (each, a "*<u>Participant</u>*") in all, or a portion, of such Lender's rights and/or obligations under this Agreement (including all, or a portion, of its Commitment and/or the Loans owing to it); <u>provided</u>, <u>that</u>, (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain *solely* responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower, the Administrative Agent, the Issuing Bank and Lenders shall continue to deal *solely* and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under <u>Section</u> <u>11.2(c</u>) with respect to any payments made by such Lender to its Participant(s).

------

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u>, <u>that</u>, such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in <u>clauses (b</u>) or (<u>c</u>) of <u>Section</u> <u>11.4</u> that affects such Participant; <u>provided</u>, <u>further</u>, <u>that</u>, any such agreement or instrument shall require the applicable Participant to represent and warrant for the benefit of the Borrower and such Lender that such Participant is *not* a Disqualified Institution. The Borrower agrees that each Participant shall be entitled to the benefits of <u>Section</u> <u>3.2</u>, <u>Section</u> <u>3.1</u> and <u>Section</u> <u>3.3</u> (subject to the requirements and limitations therein, including the requirements under <u>Section</u> <u>3.3(f</u>) (it being understood that the documentation required under <u>Section</u> <u>3.3(f</u>) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to <u>clause (b</u>) above; <u>provided</u>, <u>that</u>, such Participant (A) agrees to be subject to the provisions of <u>Section</u> <u>2.17</u> and <u>Section</u> <u>3.4</u> as if it were an assignee under <u>clause (b</u>) below, and (B) shall *not* be entitled to receive any greater payment under <u>Section</u> <u>3.2</u> or <u>Section</u> <u>3.3</u> with respect to any participation than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower's request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of <u>Section</u> <u>2.17</u> with respect to any Participant. To the extent permitted by Applicable Law, each Participant also shall be entitled to the benefits of <u>Section</u> <u>11.3</u> as though it were a Lender; <u>provided</u>, <u>that</u>, such Participant agrees to be subject to <u>Section</u> <u>2.14</u> as though it were a Lender. Each Lender that sells a participation shall, acting *solely* for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Credit Documents (the "*<u>Participant Register</u>*"); <u>provided</u>, <u>that</u>, no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Credit Document) to any Person, except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103–1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certain Pledges</u>. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement, or any promissory notes evidencing its interests hereunder, to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this <u>Section</u> <u>11.5</u> shall *not* apply to any such pledge or assignment of a security interest; <u>provided</u>, <u>that</u>, no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Disqualified Institution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No assignment or participation shall be made to any Person that was a Disqualified Institution as of the date on which the assigning Lender entered into an Assignment Agreement or participation agreement, as applicable, with such Person (unless the Borrower has consented to such assignment to such entity, in which case, such entity will not be considered a Disqualified Institution for the purpose of such assignment).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If any assignment or participation is made to any Disqualified Institution without the Borrower's prior written consent in violation of <u>clause (f)(i</u>) above, the Borrower may, at its sole expense and effort, upon notice to the applicable Disqualified Institution, (A) terminate any Revolving Commitment of such Disqualified Institution and repay all Obligations of the Borrower owing to such Disqualified Institution in connection with such Revolving Commitment, and (B) in the case of an outstanding portion of any Term Loan held by such Disqualified Institution, prepay or purchase such portion of the Term Loans, in each case, *plus* accrued interest, fees and other amounts payable to such Disqualified Institution hereunder; <u>provided</u>, <u>that</u>, the Borrower may not use the proceeds of any Revolving Loans to repay outstanding Obligations owing to a Disqualified Institution pursuant to the foregoing <u>clauses (f)(ii)(A</u>) and (<u>f)(ii)(B</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary herein, Disqualified Institutions (x) will *not* have the right to receive information, reports or other materials provided to the Lenders by the Borrower, the Administrative Agent or any other Lender, attend or participate in meetings attended by the Lenders and the Administrative Agent or access any electronic site established for the Lenders or confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders, and (y) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) under, this Agreement or any other Credit Document, each Competitor will be deemed to have consented in the same proportion as the Lenders that are not Disqualified Institutions consented to such matter. The Administrative Agent shall have the right, and the Borrower hereby expressly authorizes the Administrative Agent to post the Disqualified Institution List on the Platform, including the portion of the Platform that is designated for "public side" Lenders and/or provide the Disqualified Institution List to each Lender requesting the same.

Section 11.6 <u>Independence of Covenants</u>. All covenants hereunder shall be given independent effect so that, if a particular action or condition is *not* permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

Section 11.7 <u>Survival of Representations, Warranties and Agreements</u>. All representations, warranties and agreements made herein shall survive the execution and delivery hereof and the making of any Credit Extension. Notwithstanding anything herein or implied by law to the contrary, the agreements of each Credit Party set forth in <u>Section</u> <u>3.1(c</u>), <u>Section</u> <u>3.2</u>, <u>Section</u> <u>3.3</u>, <u>Section</u> <u>11.2</u>, <u>Section</u> <u>11.3</u>, and <u>Section</u> <u>11.10</u>, and the agreements of the Lenders and the Agents set forth in <u>Section</u> <u>2.14</u>, <u>Section</u> <u>10.3</u> and <u>Section</u> <u>11.2(c</u>), shall survive the payment of the Loans, the cancellation, expiration or cash collateralization of the Letters of Credit, and the termination hereof.

Section 11.8 <u>No Waiver; Remedies Cumulative</u>. No failure or delay on the part of the Administrative Agent or any Lender in the exercise of any power, right or privilege hereunder or under any other Credit Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other power, right or privilege. The rights, powers and remedies given to the Administrative Agent and each Lender hereby are cumulative and shall be in addition to and independent of all rights, powers and remedies existing by virtue of any statute or rule of law or in any of the other Credit Documents, any Swap Agreements or any Treasury Management Agreements. Any forbearance or failure to exercise, and any delay in exercising, any right, power or remedy hereunder shall not impair any such right, power or remedy or be construed to be a waiver thereof, nor shall it preclude the further exercise of any such right, power or remedy.

------

Section 11.9 <u>Marshalling; Payments Set Aside</u>. Neither the Administrative Agent nor any Lender shall be under any obligation to marshal any assets in favor of any Credit Party or any other Person or against or in payment of any or all of the Obligations. To the extent that any Credit Party makes a payment or payments to the Administrative Agent, the Issuing Bank, the Swingline Lender or the Lenders (or to the Administrative Agent, on behalf of Lenders), or the Administrative Agent, the Collateral Agent, the Issuing Bank or the Lenders enforce any security interests or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any Debtor Relief Law, any other state or federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred.

Section 11.10 <u>Severability</u>. In case any provision in or obligation hereunder or any Note or other Credit Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

Section 11.11 <u>Obligations Several; Independent Nature of Lenders' Rights</u>. The obligations of the Lenders hereunder are several and no Lender shall be responsible for the obligations or Revolving Commitment of any other Lender hereunder. Nothing contained herein or in any other Credit Document, and no action taken by the Lenders pursuant hereto or thereto, shall be deemed to constitute the Lenders as a partnership, an association, a joint venture or any other kind of entity. The amounts payable at any time hereunder to each Lender shall be a separate and independent debt, and, subject to <u>Section</u> <u>10.10(c</u>), each Lender shall be entitled to protect and enforce its rights arising under this Agreement and the other Credit Documents and it shall not be necessary for any other Lender to be joined as an additional party in any proceeding for such purpose.

Section 11.12 <u>Headings</u>. Section headings herein are included herein for convenience of reference only and shall *not* constitute a part hereof for any other purpose or be given any substantive effect.

Section 11.13 <u>Applicable Laws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law</u>. This Agreement and the other Credit Documents and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of, or relating to this Agreement or any other Credit Document (except, as to any other Credit Document, as expressly set forth therein), and the transactions contemplated hereby and thereby, shall be construed in accordance with, and be governed by, the law of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Submission to Jurisdiction</u>. Each party hereto irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the State of New York sitting in the Borough of Manhattan and of the United States District Court of the Southern District, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Credit Document, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by

------

Applicable Law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or in any other Credit Document shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Agreement or any other Credit Document against any Credit Party or its properties in the courts of any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver of Venue</u>. Each party hereto irrevocably and unconditionally waives, to the fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Credit Document in any court referred to in <u>clause (b</u>) above. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Service of Process</u>. Each party hereto irrevocably consents to service of process in the manner provided for notices in <u>Section</u> <u>11.1</u>. Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by Applicable Law.

Section 11.14 <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO: (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER; AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

Section 11.15 <u>Confidentiality</u>. Each of the Administrative Agent, the Collateral Agent, the Issuing Bank and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to its Affiliates and to its Related Parties (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent required or requested by any regulatory agency or authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to the extent required by Applicable Laws or regulations or by any subpoena or similar legal process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to any other party hereto;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in connection with the exercise of any remedies hereunder or under any other Credit Document or any action or proceeding relating to this Agreement or any other Credit Document or the enforcement of rights hereunder or thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) subject to an agreement containing provisions substantially the same as those of this Section, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any assignee of or Participant in, or any prospective assignee of or Participant in (including, for purposes hereof, any new lenders invited to join hereunder on an increase in the Loans and Commitments hereunder, whether by exercise of an accordion, by way of amendment or otherwise), any of its rights or obligations under this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower or its obligations, this Agreement or payments hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) on a confidential basis to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any rating agency in connection with rating any of the Credit Parties, Subsidiaries or other Regulated Entities, or any of the credit facilities provided for herein; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the CUSIP Service Bureau or any similar agency or organization in connection with the application, issuance, publishing and monitoring of CUSIP numbers or other market identifiers with respect to the credit facilities provided for herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) with the consent of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent such Information: (x) becomes publicly available other than as a result of a breach of this <u>Section</u> <u>11.15</u>; or (y) becomes available to the Administrative Agent, any Lender, the Issuing Bank or any of their respective Affiliates on a non-confidential basis from a source other than the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) for purposes of establishing a "due diligence" defense.

In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry, and service providers (including potential or actual credit insurers and re-insurers) to the Administrative Agent or any Lender in connection with the administration of this Agreement, the other Credit Documents, and the Commitments.

For purposes of this Section, "*<u>Information</u>*" shall mean all information received from any Credit Party, any Subsidiary or any other Regulated Entity relating to any Credit Party, any Subsidiary or any other Regulated Entity, or any of the respective businesses of any of the foregoing, other than any such information that is available to the Administrative Agent, any Lender or the Issuing Bank on a non-confidential basis prior to disclosure by such Credit Party, Subsidiary or other Regulated Entity; <u>provided</u>, <u>that</u>, in the case of information received from any Credit Party, any Subsidiary or any other Regulated Entity after the Closing Date, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this <u>Section</u> <u>11.15</u> shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

------

Each of the Administrative Agent, the Collateral Agent, the Issuing Bank and the Lenders acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Information may include material non-public information concerning any Credit Party, any Subsidiary and/or any other Regulated Entity, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) it has developed compliance procedures regarding the use of material non-public information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) it will handle such material non-public information in accordance with Applicable Law, including United States federal and state securities laws.

For the avoidance of doubt, nothing set forth in this <u>Section</u> <u>11.15</u> shall prohibit any individual from communicating or disclosing information (including any Information) regarding suspected violations of Applicable Law to a Governmental Authority or applicable self-regulatory authority.

Section 11.16 <u>Usury Savings Clause</u>. Notwithstanding any other provision herein to the contrary, the aggregate interest rate charged or agreed to be paid with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the nature of interest under Applicable Laws shall *not exceed* the Highest Lawful Rate. If the rate of interest (determined without regard to the preceding sentence) under this Agreement at any time *exceeds* the Highest Lawful Rate, the aggregate outstanding principal amount of all Loans shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect. In addition, if when the Loans made hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is *less than* the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect, then to the extent permitted by Applicable Law, the Borrower shall pay to the Administrative Agent an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding anything to the contrary in the foregoing, it is the intention of the Lenders and each of the Credit Parties to conform strictly to any applicable usury laws. Accordingly, if any Lender contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such Lender's option be applied to the aggregate outstanding principal amount of all Loans or be refunded to each of the applicable Credit Parties. In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender *exceeds* the Highest Lawful Rate, such Person may, to the extent permitted by Applicable Laws:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) characterize any payment that is *not* principal as an expense, fee, or premium rather than interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) exclude voluntary prepayments and the effects thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest, throughout the contemplated term of the Obligations hereunder.

------

Section 11.17 <u>Electronic Execution; Counterparts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Electronic Execution</u>. Each of the parties hereto hereby agrees that: (i) the electronic signature of any party to this Agreement or to any other Credit Document shall be as valid as an original "*wet*" signature of such party thereto, and <u>further</u>, that such signature shall be effective to bind such party to this Agreement or to such other Credit Document, as applicable; and (ii) any electronically signed document (including, without limitation, this Agreement and each other Credit Document) shall be deemed to (A) be "*written*" or "*in writing*", (B) have been signed, (C) constitute a record established and maintained in the ordinary course of business, and (D) constitute an original written record when printed from electronic files. Such paper copies or "*printouts*", if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding, will be admissible as between the parties to the same extent, and under the same conditions, as other original business records created and maintained in documentary form. None of the parties hereto shall contest the admissibility of true and accurate copies of electronically signed documents on the basis of the best evidence rule or as *not* satisfying the business records exception to the hearsay rule. For purposes of this <u>Section</u> <u>11.17</u>: (I) "*<u>electronic signature</u>*" shall mean a manually-signed original signature that is then transmitted by electronic means; (II) "*<u>transmitted</u> <u>by electronic means</u>*" shall mean sent in the form of a facsimile or sent via the internet as a ".pdf" (portable document format) or other replicating image attached to an e-mail message; and (III) "*<u>electronically signed document</u>*" shall mean a document transmitted by electronic means and containing, or to which there is affixed, an electronic signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Counterparts</u>. This Agreement and each other Credit Document may be executed by one (1) or more of the parties to this Agreement or such other Credit Document (as the case may be) on any number of separate counterparts, and all of said counterparts shall, taken together, be deemed to constitute one (1) and the same instrument. Delivery of an executed counterpart of a signature page to this Agreement, or any other Credit Document, by facsimile transmission or any other electronic mail in ".pdf" format, shall be as effective as delivery of a manually executed counterpart of this Agreement or such other Credit Document.

Section 11.18 <u>No Advisory of Fiduciary Relationship</u>. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Credit Document), each of the Credit Parties acknowledges and agrees, and acknowledges its Affiliates' understanding, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the arranging and other services regarding this Agreement provided by the Administrative Agent, are arm's-length commercial transactions between the Credit Parties, on the one hand, and the Administrative Agent, on the other hand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Credit Parties have consulted their own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each of the Credit Parties is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Credit Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Administrative Agent is and has been acting *solely* as a principal and, except as expressly agreed in writing by the relevant parties, has *not* been, is *not* and will *not* be acting as an advisor, agent or fiduciary, for any Credit Party or any of their Affiliates or any other Person; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Administrative Agent does *not* have any obligation to any Credit Party or any of their Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Credit Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Administrative Agent and its respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Credit Parties and their Affiliates, and the Administrative Agent does *not* have any obligation to disclose any of such interests to any Credit Party or its Affiliates.

To the fullest extent permitted by Applicable Law, each of the Credit Parties hereby waives and releases, any claims that it may have against the Administrative Agent with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

Section 11.19 <u>Integration; Effectiveness</u>. This Agreement and the other Credit Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Article 5, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.

Section 11.20 <u>USA PATRIOT Act</u>. Each Lender subject to the Patriot Act hereby notifies each of the Credit Parties that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies each of the Credit Parties, which information includes the name and address of each of the Credit Parties and other information that will allow such Lender to identify each of the Credit Parties in accordance with the Patriot Act.

Section 11.21 <u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>. Notwithstanding anything to the contrary in any Credit Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender that is an Affected Financial Institution arising under any Credit Document, to the extent that such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority, and each party hereto agrees and consents to, and acknowledges and agrees to be bound by: (a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder that may be payable to it by any Lender that is an Affected Financial Institution; and (b) the effects of any Bail-In Action on any such liability, including, if applicable, (i) a reduction, in full or in part, or cancellation of any such liability, (ii) a conversion of all, or a portion, of such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to, or otherwise conferred on, it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Credit Document, or (iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

------

Section 11.22 <u>Certain ERISA Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that at least one of the following is and will be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender is not using "plan assets" (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments or this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84–14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95–60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90–1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91–38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96–23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84–14);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Revolving Commitments and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84–14; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84–14 are satisfied with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, unless either (1) <u>clause (a)(i</u>) above is true with respect to a Lender, or (2) a Lender has provided another representation, warranty and covenant as provided in <u>clause (a)(iv</u>) above, such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that the Administrative Agent is *not* a fiduciary with respect to the assets of such Lender involved in such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Credit Document or any documents related hereto or thereto).

------

Section 11.23 <u>Acknowledgment Regarding any Supported QFCs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent that the Credit Documents provide support, through a guarantee or otherwise, for any Swap Obligation or any other agreement or instrument that is a QFC (such support, "*<u>QFC Credit Support</u>*"; and each such QFC, a "*<u>Supported QFC</u>*"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Special Resolution</u> <u>Regimes</u>*") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Credit Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that a Covered Entity that is a party to a Supported QFC (each, a "*<u>Covered</u> <u>Party</u>*") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the Laws of the United States or a state of the United States. In the event that a Covered Party, or a BHC Act Affiliate of a Covered Party, becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Credit Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Credit Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

[*Remainder of Page Intentionally Left Blank*]

------

ANNEX II

TO FIRST AMENDMENT TO CREDIT AGREEMENT

<u>APPENDIX A</u>

[On file with the Administrative Agent]

------

ANNEX III

TO FIRST AMENDMENT TO CREDIT AGREEMENT

[On file with the Administrative Agent]

## Exhibit 4.4

**Exhibit 4.4** 

***Executed Copy*** 

**THIRD AMENDMENT** 

dated as of August 15, 2025

to

CREDIT AGREEMENT

dated as of February 18, 2025

by and among

SAFEPOINT HOLDINGS, INC.,

as the Borrower,

CERTAIN SUBSIDIARIES OF THE BORROWER FROM TIME TO TIME PARTY THERETO,

as Guarantors,

THE LENDERS FROM TIME TO TIME PARTY THERETO,

and

REGIONS BANK,

as Administrative Agent, Collateral Agent, Issuing Bank, and Swingline Lender

REGIONS CAPITAL MARKETS,

a division of Regions Bank,

as Sole Lead Arranger and Sole Bookrunner for such Amendment

Cover Page to Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

**<u>THIRD AMENDMENT TO CREDIT AGREEMENT</u>**

This THIRD AMENDMENT TO CREDIT AGREEMENT (this "*<u>Amendment</u>*"), dated as of August 15, 2025 (the "*<u>Third Amendment Effective Date</u>*"), is entered into by and among SAFEPOINT HOLDINGS, INC., a Florida corporation (the "*<u>Borrower</u>*"), the Guarantors (here and hereafter as such term is defined in the Existing Credit Agreement (here and hereafter as such term is defined in the recitals below)) as of the Third Amendment Effective Date, the Third Amendment Joining Lenders (here and hereafter as such term is defined in <u>Section</u> <u>2</u> below), the Lenders (here and hereafter as such term is defined in the Existing Credit Agreement) party to the Existing Credit Agreement as of the date that is immediately *prior* to the Third Amendment Effective Date (collectively, the "*<u>Existing Lenders</u>*", and each of them individually, an "*<u>Existing Lender</u>*"), and REGIONS BANK ("*<u>Regions</u>*"), in its capacities as Administrative Agent, Collateral Agent, Swingline Lender, and Issuing Bank (each, here and hereafter as such term is defined in the Existing Credit Agreement).

R E C I T A L S

WHEREAS, the Borrower, the Guarantors from time to time party thereto, the Lenders from time to time party thereto, the Administrative Agent and the Collateral Agent are parties to that certain Credit Agreement, dated as of February 18, 2025 (as amended by that certain First Amendment to Credit Agreement, dated as of April 11, 2025, as further amended by that certain Second Amendment to Credit Agreement, dated as of May 30, 2025, and as further amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time *prior* to the Third Amendment Effective Date, the "*<u>Existing Credit Agreement</u>*"; and the Existing Credit Agreement as amended by this Amendment on the Third Amendment Effective Date, the "*<u>Amended Credit Agreement</u>*"; and the Amended Credit Agreement as it may be further amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time, the "*<u>Credit Agreement</u>*");

WHEREAS, the Borrower has requested that: (a) each of the Third Amendment Joining Lenders (i) join the Existing Credit Agreement as a "Lender" on the Third Amendment Effective Date, and (ii) establish its respective Revolving Commitment and respective DDTL Commitment on the Third Amendment Effective Date in the respective amounts set forth in the applicable columns opposite such Third Amendment Joining Lender's name on Appendix A (*Lenders*, *Commitments and Commitment Percentages*) to the Amended Credit Agreement (the "*<u>Updated Commitment Schedule</u>*") as such Third Amendment Joining Lender's "*Revolving Commitment*" and such Third Amendment Joining Lender's "*DDTL Commitment*", respectively, so that, after giving effect to the establishment of the Revolving Commitments and DDTL Commitments of the Third Amendment Joining Lenders as described in this <u>clause (a</u>), (A) the Aggregate Revolving Commitment Amount is increased, on the Third Amendment Effective Date, from Fifty Million Dollars ($50,000,000) (as in effect on the date that is immediately *prior* to the Third Amendment Effective Date) to Seventy-Five Million Dollars ($75,000,000) (such increase in the Aggregate Revolving Commitment Amount resulting from the establishment of the Revolving Commitments of the Third Amendment Joining Lenders as described in this <u>clause (a</u>), the "*<u>Third Amendment Revolver Increase</u>*"), and (B) the Aggregate DDTL Commitment Amount is increased, on the Third Amendment Effective Date, from Sixty-Five Million Dollars ($65,000,000) (as in effect on the date that is immediately *prior* to the Third Amendment Effective Date) to Ninety Million Dollars ($90,000,000) (such increase in the Aggregate DDTL Commitment Amount resulting from the establishment of the DDTL Commitments of the Third Amendment Joining Lenders as described in this <u>clause (a</u>), the "*<u>Third Amendment DDTL Increase</u>*"); and (b) the Lenders (including the Third Amendment Joining Lenders and the Existing Lenders) (i) *solely* if, and to the extent, set forth in <u>Section</u>

Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

<u>3</u> below, (A) assume their respective allocated portions and *pro rata* percentage shares of the outstanding Loans of each Class, the existing Commitments of each Class and the other existing Revolving Credit Exposures, and/or (B) assign and re -allocate a portion of their outstanding Loans of each Class (if any), their existing Commitments of each Class (if any) and their other existing Revolving Credit Exposures (if any), in each case of the foregoing <u>clauses (b)(ii)(A</u>) and (<u>b)(ii)(B</u>), all in accordance with the respective allocated portions and *pro rata* percentage shares of the Lenders as set forth in the Updated Commitment Schedule, and (ii) make (A) certain other modifications to the terms of the Existing Credit Agreement as described in <u>Section</u> <u>5(a</u>) below, and (B) certain modifications to Appendix A (*Lenders*, *Commitments and Commitment Percentages*) to the Existing Credit Agreement as described in <u>Section</u> <u>5(b</u>) below; and

WHEREAS, (a) each of the Third Amendment Joining Lenders has agreed to (i) join the Existing Credit Agreement as a Lender, and (ii) establish its respective Revolving Commitment and DDTL Commitment, and (b) each of the Lenders has agreed to (i) *solely* if, and to the extent, set forth in <u>Section</u> <u>3</u> below, (A) assume its respective allocated portions and *pro rata* percentage shares of the outstanding Loans of each Class, the existing Commitments of each Class and the other existing Revolving Credit Exposures, and/or (B) assign and re- allocate a portion of its outstanding Loans of each Class (if any), its existing Commitments of each Class (if any) and its other existing Revolving Credit Exposures (if any), in each case of the foregoing <u>clauses (b)(i)(A</u>) and (<u>b)(i)(B</u>), all in accordance with the respective allocated portions and *pro rata* percentage shares of the Lenders as set forth in the Updated Commitment Schedule, and (ii) consent to the other modifications to the terms and provisions of the Existing Credit Agreement (including the Appendices thereto) as set forth in this Amendment, in each case of the foregoing <u>clauses (a</u>) and (<u>b</u>), on the terms, and subject to the conditions, set forth in this Amendment.

NOW, THEREFORE, in consideration of the agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the parties to this Amendment hereby agrees as follows:

A G R E E M E N T

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>INTRODUCTORY PARAGRAPH AND RECITALS; DEFINITIONS</u>. The above introductory paragraph and recitals (including any terms defined therein) of this Amendment are incorporated herein by reference as if fully set forth in the body of this Amendment. Capitalized terms used in this Amendment but not otherwise defined herein shall have the respective meanings provided for such terms in the Existing Credit Agreement or in the Amended Credit Agreement, as the context may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>LENDER JOINDER</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Joinder Agreement</u>. Each of THE HUNTINGTON NATIONAL BANK ("*<u>Huntington</u>*") and TRUSTMARK BANK ("*<u>Trustmark</u>*"; and Trustmark together with Huntington, collectively, the "*<u>Third Amendment Joining Lenders</u>*", and each of them individually, a "*<u>Third Amendment Joining</u> <u>Lender</u>*") hereby:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) agrees to establish its respective Revolving Commitment on the Third Amendment Effective Date in the amount that is designated, in the applicable column opposite such Third Amendment Joining Lender's name in the table set forth on the Updated Commitment Schedule, as such Third Amendment Joining Lender's "*Revolving Commitment*";

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) agrees to establish its respective DDTL Commitment on the Third Amendment Effective Date in the amount that is designated, in the applicable column opposite such Third Amendment Joining Lender's name in the table set forth on the Updated Commitment Schedule, as such Third Amendment Joining Lender's "*DDTL Commitment*";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) represents and warrants to the Administrative Agent, the Collateral Agent, the Issuing Bank, each of the other Lenders, and each of the Credit Parties that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) it has full power and authority, and has taken all necessary action(s), to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) execute and deliver this Amendment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) establish its respective Revolving Commitment in the amount set forth as such Third Amendment Joining Lender's "*Revolving Commitment*" in the applicable column opposite such Third Amendment Joining Lender's name in the table set forth on the Updated Commitment Schedule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) establish its respective DDTL Commitment in the amount set forth as such Third Amendment Joining Lender's "*DDTL Commitment*" in the applicable column opposite such Third Amendment Joining Lender's name in the table set forth on the Updated Commitment Schedule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) assume its respective allocated portions and *pro rata* percentage shares of (1) the aggregate outstanding (as of the Third Amendment Effective Date) principal balance of the Loans of each Class, (2) the Aggregate Revolving Commitments and Aggregate DDTL Commitments in effect on the Third Amendment Effective Date, and (3) any other Revolving Credit Exposures of the Lenders as of the Third Amendment Effective Date, in each case of the foregoing <u>clauses (a)(iii)(A)(IV)(1</u>) through (<u>a)(iii)(A)(IV)(3</u>), all as set forth on the Updated Commitment Schedule and in accordance with <u>Section</u> <u>3</u> below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(V) fund its respective portion(s) of any Borrowing(s) to occur on the Third Amendment Effective Date in connection with this Amendment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VI) become a Lender under the Amended Credit Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VII) perform its respective obligations under this Amendment and the Amended Credit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) it satisfies each of the requirements specified in the Amended Credit Agreement that are required to be satisfied by it in order to become a Lender under the Amended Credit Agreement in accordance with the terms thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) it has reviewed the current Disqualified Institutions List provided by the Borrower to, and acknowledged and maintained by, the Administrative Agent (if any) in connection with the Credit Agreement, and it is *not* a Disqualified Institution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) from and after the Third Amendment Effective Date, it shall be bound by the provisions of the Amended Credit Agreement and the other Credit Documents as a Lender and shall have all of the obligations of a Lender as if it had executed the Amended Credit Agreement as of the Third Amendment Effective Date;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) it has received a copy of the Existing Credit Agreement and of the Amended Credit Agreement, together with copies of the most recent financial statements delivered to the Administrative Agent pursuant to each of Section 7.1(a) (*Quarterly Financial Statements*) and Section 7.1(b) (*Annual Financial Statements*) of the Existing Credit Agreement (or, to the extent no such financial statements have yet been delivered pursuant to such Section(s) of the Existing Credit Agreement, copies of the financial statements delivered to the Administrative Agent in anticipation of the closing of the Credit Agreement on the Closing Date in satisfaction of Section 5.1(f) (*Financial Statements*) of the Credit Agreement), together with such other documents and information as it has deemed appropriate to make its own credit analysis and decision to execute this Amendment, to be bound by the terms of this Amendment and the Amended Credit Agreement, and to become a Lender under the Amended Credit Agreement, on the basis of which it has made such analysis and decision independently and without reliance on any of the Administrative Agent, the Collateral Agent, the Issuing Bank, or any other Lender (including the other Third Amendment Joining Lender); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) if it is a Foreign Lender, it has delivered to the Administrative Agent all documentation required to be delivered by it to the Administrative Agent pursuant to the terms of the Amended Credit Agreement as a result of it being a Foreign Lender, all duly completed and executed by it; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) from and after the Third Amendment Effective Date, it shall be deemed to be a party to the Amended Credit Agreement and a "*Lender*" for all purposes of the Amended Credit Agreement and the other Credit Documents, it shall be bound by the provisions of the Amended Credit Agreement and the other Credit Documents as a Lender, and it shall have all of the obligations of a Lender as if it had executed the Amended Credit Agreement as of the Third Amendment Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) it will, independently and without reliance on any of the Administrative Agent, the Collateral Agent, the Issuing Bank, or any other Lender (including the other Third Amendment Joining Lender), and based on such documents and information as it shall deem appropriate at the time in its sole discretion, continue to make its own credit decisions and analysis in taking, or not taking, any action(s) under, or in connection with, the Amended Credit Agreement and the other Credit Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) it will perform, in accordance with the terms of all applicable Credit Documents, all of the obligations that, by the terms of the Credit Documents, are required to be performed by it as a Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Borrower Acknowledgement</u>. The Borrower hereby acknowledges and agrees that, from and after the Third Amendment Effective Date, each Third Amendment Joining Lender shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) be deemed to be a party to the Amended Credit Agreement and a "*Lender*" for all purposes of the Amended Credit Agreement and the other Credit Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) have all of the rights and obligations of a Lender under the Amended Credit Agreement and the other Credit Documents as if it had executed the Amended Credit Agreement as of the Third Amendment Effective Date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notices</u>. The applicable mailing address, facsimile number, and electronic mail address of each Third Amendment Joining Lender for purposes of Section 11.1 (*Notices*) of the Amended Credit Agreement are as set forth in such Third Amendment Joining Lender's Administrative Questionnaire delivered by such Third Amendment Joining Lender to the Administrative Agent on or prior to the Third Amendment Effective Date, or such other mailing address, facsimile number, and/or electronic mail address as shall be designated by such Third Amendment Joining Lender in a written notice delivered to the Administrative Agent after the Third Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>RE-ALLOCATION OF LOANS, COMMITMENTS AND REVOLVING CREDIT</u> <u>EXPOSURES</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Assignment and Reallocation</u>. Each of the parties to this Amendment hereby agrees that the Borrower, the Guarantors, the Lenders (including the Third Amendment Joining Lenders), the Issuing Bank, the Administrative Agent and the Collateral Agent shall be deemed, on the Third Amendment Effective Date automatically without any further action(s) (including execution of any Assignment Agreements or any other assignment documentation) of any Person(s), to have irrevocably authorized, directed and instructed the Administrative Agent to effect such assignments, prepayments, borrowings, and reallocations as are (in the reasonable determination of the Administrative Agent) necessary in order to effectuate the modifications to the outstanding Loans of each Class, the existing Commitments of each Class, and the other Revolving Credit Exposures (and to the respective allocated Dollar amounts and applicable *pro rata* percentage shares thereof that are attributable to each Lender (including each Third Amendment Joining Lender)) as are contemplated by this Amendment and the Updated Commitment Schedule such that, on the Third Amendment Effective Date immediately *after* giving effect to this Amendment, the Third Amendment Revolver Increase and the Third Amendment DDTL Increase (but immediately *prior* to giving effect to any Borrowing(s) to occur on the Third Amendment Effective Date), each of the Lenders (including each Third Amendment Joining Lender) shall hold and be allocated a respective (for each Class and for each Lender) portion and *pro rata* percentage share of (i) the aggregate outstanding principal balance of the Loans of each Class, (ii) the Aggregate Revolving Commitments and the Aggregate DDTL Commitments in effect, and (iii) any other Revolving Credit Exposures of the Lenders, in each case of the foregoing <u>clauses (a)(i</u>) through (<u>a)(iii</u>), in accordance with the respective allocated Dollar and percentage amount(s) (as applicable) set forth in the applicable column opposite such Lender's name in the table set forth on the Updated Commitment Schedule, without any further requirement to comply with the terms and provisions set forth in Section 11.5 (*Successors and Assigns*) of the Existing Credit Agreement. Each Lender (including, without limitation, each Third Amendment Joining Lender) hereby waives any right to demand reimbursement pursuant to Section 3.1(c) (*Compensation for Breakage or Non*-*Commencement of Interest Periods*) of the Credit Agreement of any "breakage" or break-funding costs incurred *solely* as a result of the assignments, prepayments, borrowings, and reallocations described in the immediately foregoing sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Lender Affirmation</u>. Each of the Lenders hereby acknowledges, accepts, and confirms (i) the Dollar amount of its Revolving Commitment, (ii) its respective allocated *pro rata* percentage share of the Aggregate Revolving Commitments, (iii) the Dollar amount of its DDTL Commitment, (iv) its respective allocated *pro rata* percentage share of the Aggregate DDTL Commitments, and (v) its respective allocated outstanding principal amount held, and allocated *pro rata* percentage share, of the aggregate outstanding principal balance of the Loans of each Class made by the Lenders, in each case of the foregoing <u>clauses (b)(i</u>) through (<u>b)(v</u>), as of the Third Amendment Effective Date, all as set forth on the Updated Commitment Schedule.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>NO ACCORDION UTILIZATION</u>. For purposes of clarity, neither the Third Amendment Revolver Increase nor the Third Amendment DDTL Increase established on the Third Amendment Effective Date pursuant to this Amendment are established or effected, in whole or in part, pursuant to Section 2.1(e) (*Incremental Facilities*) of the Existing Credit Agreement. As such, neither the Third Amendment Revolver Increase nor the Third Amendment DDTL Increase shall constitute an "*Incremental Facility*", an "*Incremental Revolver Increase*", an "*Incremental DDTL Increase*", or the establishment of an "*Incremental Term Loan*" or any "*Incremental Term Loan Commitments*", and this Amendment shall *not* constitute an "*Incremental Facility Agreement*", in each case of the foregoing, as such terms are defined and used in the Amended Credit Agreement and the other Credit Documents; and <u>further</u>, no portion of the aggregate amount of the Third Amendment Revolver Increase (or any Borrowing(s) under the new Revolving Commitments established in connection therewith) or the Third Amendment DDTL Increase (or any Borrowing(s) under the new DDTL Commitments established in connection therewith) shall decrease (or otherwise count against or reduce) the available amount under the Incremental Cap (which, for purposes of clarity, is Fifty Million Dollars ($50,000,000) on the Third Amendment Effective Date immediately *after* giving effect to this Amendment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>AMENDMENTS TO EXISTING CREDIT AGREEMENT</u>. In accordance with Section 11.4 (*Amendments and Waivers*) of the Existing Credit Agreement, the Existing Credit Agreement is hereby amended in the following respects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Terms of Existing Credit Agreement</u>. The terms of the Existing Credit Agreement (but *not* the Appendices, Schedules and/or Exhibits thereto) are amended and replaced in their entirety to read as set forth in the copy of the entire body of the Amended Credit Agreement attached hereto as <u>Annex I</u> to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Appendix to Existing Credit Agreement</u>. Appendix A (*Lenders*, *Commitments and Commitment Percentages*) to the Existing Credit Agreement is amended by amending and restating such Appendix in its entirety with the Appendix attached hereto as <u>Annex II</u> to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>EFFECTIVENESS; CONDITIONS PRECEDENT</u>. This Amendment shall become effective as of the Third Amendment Effective Date upon the satisfaction of each of the following conditions precedent (in each case, in form and substance satisfactory to the Administrative Agent and the Collateral Agent):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendment</u>. Receipt by the Administrative Agent of a counterpart of this Amendment duly executed by each of the Credit Parties, each of the Third Amendment Joining Lenders, each of the Existing Lenders, the Issuing Bank, the Administrative Agent, and the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organizational Documents; Resolutions and Certificates</u>. Receipt by the Administrative Agent of a duly executed certificate of the secretary or assistant secretary of each Credit Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) certifying that there have been no change(s) to the Organizational Documents of such Credit Party since the Second Amendment Effective Date (except as may be disclosed in such certificate, and, in the event of any such change(s), such certificate shall attach copies of such changed Organizational Document(s), as in effect on the Third Amendment Effective Date, that (in the case of any certificate or articles of incorporation, formation or organization, any certificate of limited partnership, or any other registered Organizational Document of any such Person) are certified, as of a recent date, by the applicable Governmental Authority of such Person's jurisdiction of incorporation or formation (as the case may be));

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) attaching and certifying a copy of resolutions (or unanimous written consents) of the board of directors or managers (or equivalent governing body) of such Credit Party, authorizing: (A) the timely execution and delivery of this Amendment and the performance by such Credit Party of its respective obligations under this Amendment and the Amended Credit Agreement; (B) the establishment of the Third Amendment Revolver Increase as described herein; (C) the establishment of the Third Amendment DDTL Increase as described herein; and (D) any Credit Extension(s) to occur on the Third Amendment Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if, and to the extent that, the Administrative Agent shall *not* have already received an executed, original incumbency certificate (in form and substance reasonably satisfactory to the Administrative Agent) with respect to any Authorized Officer of such Credit Party signing this Amendment, and/or any other document, agreement, letter, certificate and/or instrument executed, or required to be executed, in connection herewith (including, without limitation, the certificate(s) described in this <u>clause (b</u>)), on its behalf, certifying the name, title, and true signature with respect to each such Authorized Officer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) certifying and attaching a copy of a certificate of good standing, existence, or the like for such Credit Party, certified, as of a recent date, by the applicable Governmental Authority of such Credit Party's jurisdiction of incorporation or formation (as the case may be).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Opinions of Counsel</u>. Receipt by the Administrative Agent of customary written opinions of counsel to the Credit Parties, addressed to the Administrative Agent, the Collateral Agent, the Issuing Bank, and each of the Lenders (including each Third Amendment Joining Lender), and covering such customary matters relating to the Credit Parties, this Amendment, the Amended Credit Agreement, and the transactions contemplated hereby, as are in form and substance reasonably satisfactory to the Administrative Agent and the Collateral Agent (which opinions of counsel shall (i) include, without limitation, customary legal opinions relating to (A) existence, good standing, and corporate authority of the Credit Parties, and (B) governing law and enforceability of this Amendment and the Amended Credit Agreement, and (ii) in any event, expressly permit reliance by the successors and permitted assigns of the Administrative Agent, the Collateral Agent, the Issuing Bank, and the Lenders (including each Third Amendment Joining Lender)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Diligence Searches</u>. Receipt by the Collateral Agent of copies of UCC lien search results and, if (and to the extent) requested by the Collateral Agent, tax and judgment lien search results (in each case of the foregoing, as required by the Collateral Agent in its reasonable discretion) in the jurisdiction of incorporation or formation, as the case may be, of each Credit Party, together with any such diligence search results in any other necessary or appropriate jurisdiction(s) as reasonably requested by the Collateral Agent, indicating that there are no prior Liens on any of the Collateral, other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Sources and Uses</u>. Receipt by the Administrative Agent of a duly executed funds disbursement or funds direction agreement (including wiring instructions and bank account information), together with a certified report setting forth the sources and uses of, without limitation, the proceeds of any Credit Extension(s) to occur on the Third Amendment Effective Date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Florida Taxes</u>. Receipt by the Administrative Agent of evidence reasonably satisfactory to the Administrative Agent that either: (i) this Amendment and any Notes being executed in connection with this Amendment (including, without limitation, any Note(s) issued in favor of a Third Amendment Joining Lender) have been executed by the applicable Credit Parties outside of the State of Florida (which evidence shall include a duly executed and notarized affidavit of out-of-state execution); or (ii) all applicable documentary stamp Taxes and intangibles Taxes due and owing to the Florida Department of Revenue under the Laws of the State of Florida in connection with the execution of this Amendment by the Credit Parties, and/or the execution of any Notes being executed in connection with this Amendment (including, without limitation, any Note(s) issued in favor of a Third Amendment Joining Lender) by the Borrower, either have been paid to the Florida Department of Revenue or are being paid to the Florida Department of Revenue substantially concurrently with the closing of this Amendment on the Third Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Fees and Expenses</u>. Receipt by the Administrative Agent of payment of all fees, costs, expenses, charges, disbursements and other amounts due and payable by, or on behalf of, any of the Credit Parties to any of the Administrative Agent, the Collateral Agent, any Arranger, the Swingline Lender, the Issuing Bank, the Third Amendment Joining Lenders (or either of them), and/or the Existing Lenders (or any of them) on, or prior to, the Third Amendment Effective Date, including, without limitation, (i) payment of those certain fees described in that certain engagement letter agreement, dated as of February 26, 2025, by and between Regions Capital Markets, a division of Regions Bank, and the Borrower (as amended by that certain amendment to engagement letter agreement, dated as of June 13, 2025, the "*<u>Post</u>*<u>-</u>*<u>Closing</u> <u>Syndication Engagement Letter</u>*") in respect of each of (A) the full amount of the new aggregate Revolving Commitments of the Third Amendment Joining Lenders established in connection with the Third Amendment Revolver Increase, and (B) the full amount of the aggregate new DDTL Commitments of the Third Amendment Joining Lenders established in connection with the Third Amendment DDTL Increase (in each case of the foregoing <u>clauses (g)(i)(A</u>) and (<u>g)(i)(B</u>), in conformity with the acknowledgements set forth in <u>Section</u> <u>11(b</u>) of this Amendment), and (ii) reimbursement or payment of all reasonable and documented costs and out-of-pocket expenses of the Administrative Agent and its Affiliates (including, without limitation, all filing and recording fees and Taxes and all reasonable and documented fees, charges and disbursements of counsel to the Administrative Agent and the Collateral Agent) required to be reimbursed or paid by any of the Credit Parties under this Amendment, the Amended Credit Agreement, any other Credit Document, and/or any other agreement(s) with the Administrative Agent or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Other Information and Documents</u>. Delivery to the Administrative Agent and/or the Collateral Agent of such other information and/or documents as the Administrative Agent, the Collateral Agent, and/or any Lender may reasonably request or require in connection with this Amendment.

Without limiting the generality of the foregoing provisions of this <u>Section</u> <u>6</u>, for purposes of determining compliance with the conditions specified in this <u>Section</u> <u>6</u>, each Lender (including each Third Amendment Joining Lender) that has signed this Amendment shall be deemed to have consented to, approved of, accepted, or been satisfied with, each document or other matter required hereunder to be consented to or approved by, or acceptable or satisfactory to, a Lender, unless the Administrative Agent shall have received notice from such Lender prior to the proposed Third Amendment Effective Date specifying its objection thereto.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>ACKNOWLEDGEMENT REGARDING DDTL COMMITMENTS</u>. Each of the parties to this Amendment hereby acknowledges, accepts and confirms that: (a) prior to the Third Amendment Effective Date, the Aggregate DDTL Commitments, as previously increased pursuant to both the First Amendment and the Second Amendment, were drawn in part by the Borrower in accordance with the Existing Credit Agreement; (b) immediately *prior* to the effectiveness of this Amendment, (i) the Aggregate DDTL Commitment Amount was Sixty-Five Million Dollars ($65,000,000), and (ii) the aggregate outstanding principal balance of the Delayed Draw Term Loan was Twenty-Five Million Dollars ($25,000,000); and (c) the new DDTL Commitments established in connection with the Third Amendment DDTL Increase, if and to the extent drawn in accordance with the Amended Credit Agreement, will increase the currently outstanding aggregate principal balance under the Delayed Draw Term Loan. Accordingly, the maximum original principal amount that may (subject to satisfaction of the conditions precedent to Borrowings set forth in Section 5.2 (*Conditions to Each Credit Extension*) of the Amended Credit Agreement) be advanced under the Delayed Draw Term Loan during the portion of the DDTL Availability Period occurring *after* the Third Amendment Effective Date is Ninety Million Dollars ($90,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>REPRESENTATIONS AND WARRANTIES OF CREDIT PARTIES</u>. Each Credit Party hereby represents and warrants to the Administrative Agent, the Collateral Agent, the Issuing Bank, and each of the Lenders (including each Third Amendment Joining Lender) as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Bring-Down</u>. Both immediately *before* and immediately *after* giving effect to each of (A) the execution and delivery of this Amendment on the Third Amendment Effective Date, (B) the establishment of the Third Amendment Revolver Increase on the Third Amendment Effective Date as described herein, (C) the establishment of the Third Amendment DDTL Increase on the Third Amendment Effective Date as described herein, and (D) any Credit Extension(s) to occur on the Third Amendment Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no event shall have occurred and be continuing that would constitute an Event of Default or a Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all representations and warranties of each Credit Party set forth in the Credit Documents are true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties are true and correct in all respects), except to the extent that such representations and warranties specifically relate to an *earlier* date, in which case, such representations and warranties are true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties are true and correct in all respects) as of such earlier date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Borrower individually is, and the Credit Parties, Subsidiaries and other Regulated Entities taken as a whole are, Solvent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Financial Condition</u>. Immediately *after* giving effect to each of (A) the execution and delivery of this Amendment on the Third Amendment Effective Date, (B) the establishment of the Third Amendment Revolver Increase on the Third Amendment Effective Date as described herein, (C) the establishment of the Third Amendment DDTL Increase on the Third Amendment Effective Date as described herein, and (D) any Credit Extension(s) to occur on the Third Amendment Effective Date, the Credit Parties shall be in compliance, on a Pro Forma Basis, with each of the Financial Covenants, as demonstrated by reasonably detailed financial calculations attached to this Amendment as <u>Annex III</u> hereto.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Authorization</u>. The execution and delivery by each Credit Party of this Amendment, and the performance by each Credit Party of its respective obligations under this Amendment and the Amended Credit Agreement, is within such Credit Party's organizational powers. Each Credit Party has taken all necessary organizational, and if required, shareholder, partner, trustee or member (as the case may be) action to duly authorize each of (i) the execution and delivery of this Amendment on the Third Amendment Effective Date and the performance by each Credit Party of its respective obligations under this Amendment and the Amended Credit Agreement, (ii) the establishment of the Third Amendment Revolver Increase on the Third Amendment Effective Date as described herein, (iii) the establishment of the Third Amendment DDTL Increase on the Third Amendment Effective Date as described herein, and (iv) any Credit Extension(s) to occur on the Third Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Validity; Enforceability</u>. This Amendment has been duly executed and delivered by each Credit Party and constitutes a legal, valid and binding obligation of each Credit Party, enforceable against each Credit Party in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar Applicable Laws affecting the enforcement of creditors' rights generally and by general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Required Consents and Approvals</u>. The Credit Parties have received all consents (including, without limitation, any necessary governmental consents, as applicable), approvals, authorizations, registrations, filings and orders required or advisable to be made or obtained (as the case may be) under any Applicable Law, under the Organizational Documents of any Credit Party, or pursuant to any Contractual Obligation of any Credit Party, in each case of the foregoing, in connection with any of the execution, delivery, validity and enforceability of this Amendment and/or the performance by each Credit Party of its respective obligations under this Amendment and the Amended Credit Agreement, or in connection with any Credit Extension(s) to occur on the Third Amendment Effective Date and/or any of the transactions contemplated hereby, and such consents, approvals, authorizations, registrations, filings and orders are currently in full force and effect and all applicable waiting periods have expired, and no investigation or inquiry by any Governmental Authority regarding any of the Commitments (including, without limitation, any of the Commitments of the Third Amendment Joining Lenders established pursuant to this Amendment), any transaction(s) being financed (in whole or in part) with the proceeds of any Loans, this Amendment, or any of the transactions contemplated hereby, is ongoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Beneficial Ownership</u>. As of the Third Amendment Effective Date, the information included in each Beneficial Ownership Certification (as applicable) is true and correct in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Florida Taxes</u>. All applicable documentary stamp taxes and intangibles Taxes that will be due and owing to the Florida Department of Revenue under the Applicable Laws of the State of Florida in connection with the closing of this Amendment on the Third Amendment Effective Date (including, without limitation, as a result of the execution by the Borrower of any Note(s) in favor of any Third Amendment Joining Lender(s)) have either been paid to the Florida Department of Revenue or are being paid to the Florida Department of Revenue substantially concurrently with the closing of this Amendment on the Third Amendment Effective Date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>REAFFIRMATION</u>. Each Credit Party hereby: (a) (i) acknowledges and consents to all of the terms and conditions of this Amendment, (ii) affirms all of its respective obligations under the Existing Credit Agreement and each of the other Credit Documents to which it is a party (as expressly amended by this Amendment, to the extent so amended), and (iii) agrees that this Amendment, and all documents, agreements, letters, certificates and/or instruments executed in connection with this Amendment, do *not* operate to reduce or discharge any Credit Party's obligations under the Existing Credit Agreement or any of the other Credit Documents to which it is a party (as expressly amended by this Amendment, to the extent so amended); and (b) (i) affirms that each of the Liens granted in, or pursuant to, the Credit Documents is valid and subsisting, and (ii) agrees that this Amendment, and all documents, agreements, certificates and/or instruments executed in connection with this Amendment, do *not*, in any manner, impair, or otherwise adversely affect, any of the Liens granted in, or pursuant to, any of the Credit Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>MISCELLANEOUS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Credit Document; Reference of Terms</u>. This Amendment is hereby deemed to be, and shall be, a Credit Document, and all references to a "*Credit Document*" or the "*Credit Documents*" in the Amended Credit Agreement, in any other Credit Document, or in any other document, agreement, letter, certificate and/or instrument executed and delivered pursuant to the terms thereof, whether executed on, prior to or after the Third Amendment Effective Date (including, without limitation, all such references in the representations and warranties of the Credit Parties set forth in the Amended Credit Agreement and the other Credit Documents to which they are a party), shall be deemed to include, and shall include, this Amendment. All references to "*this Agreement*" in the Amended Credit Agreement, and all references to the "*Credit Agreement*" in any other Credit Document or in any other document, agreement, letter, certificate and/or instrument executed and delivered pursuant to the terms thereof, whether executed on, prior to or after the Third Amendment Effective Date (including, without limitation, all such references in the representations and warranties of the Credit Parties set forth in the Amended Credit Agreement and the other Credit Documents to which they are a party), are hereby amended so that any reference to "*this Agreement*" or the "*Credit Agreement*" therein, as the case may be, shall be, and be deemed to be, a reference to the Amended Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Post-Closing Syndication Fees Acknowledgment</u>. This Amendment is an "*Increase Amendment*" as such term is defined and used in the Post-Closing Syndication Engagement Letter; the full amount of the Third Amendment Revolver Increase, which is Twenty-Five Million Dollars ($25,000,000), constitutes "*New Commitments*" as such term as such term is defined and used in the Post-Closing Syndication Engagement Letter; the full amount of the Third Amendment DDTL Increase, which is also Twenty-Five Million Dollars ($25,000,000), also constitutes "*New Commitments*" as such term as such term is defined and used in the Post-Closing Syndication Engagement Letter; each of the Third Amendment Joining Lenders is a "*Joining Lender*" as such term is defined and used in the Post-Closing Syndication Engagement Letter; and the Third Amendment Effective Date is an "*Amendment Effective Date*" as such term is defined and used in the Post-Closing Syndication Engagement Letter. It is further acknowledged that none of the execution and delivery of this Amendment, the establishment of the Third Amendment Revolver Increase or the establishment of the Third Amendment DDTL Increase, in each case of the foregoing, on the Third Amendment Effective Date constitutes (whether individually or taken together in the aggregate) the "completion of the syndication, arrangement and/or placement of the New Commitments" as such phrase is used in clause (ii) of Section E.2. (*Termination*) of the Post-Closing Syndication Engagement Letter; and <u>accordingly</u>, that the Post-Closing Syndication Engagement Letter shall (i) survive the execution and delivery of this Amendment, the establishment of the Third Amendment Revolver Increase and the establishment of the Third Amendment DDTL Increase on the Third Amendment Effective Date, and (ii) remain in full force and effect in accordance with the terms thereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Full Force and Effect</u>. Except as expressly modified and amended by this Amendment, all of the terms, provisions and conditions of the Credit Documents (including in any Appendices, Schedules and/or Exhibits thereto) shall remain in full force and effect according to their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Counterparts; Delivery</u>. This Amendment may be executed by one (1) or more of the parties to this Amendment on any number of separate counterparts, and all of said counterparts shall, taken together, be deemed to constitute one (1) and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment, by facsimile transmission or any other electronic imaging means (including in ".pdf" format), shall be as effective as delivery of a manually executed counterpart of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Electronic Execution</u>. Each of the parties to this Amendment hereby agrees that: (i) the electronic signature of any party to this Amendment shall be as valid as an original "wet" signature of such party hereto, and <u>further</u>, <u>that</u>, such signature shall be effective to bind such party to this Amendment; and (ii) any electronically signed document (including, without limitation, this Amendment) shall be deemed to (A) be "written" or "in writing", (B) have been signed, (C) constitute a record established and maintained in the ordinary course of business, and (D) constitute an original written record when printed from electronic files. Such paper copies or "printouts", if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding, will be admissible as between the parties to the same extent, and under the same conditions, as other original business records created and maintained in documentary form. None of the parties to this Amendment shall contest the admissibility of true and accurate copies of electronically signed documents on the basis of the best evidence rule or as not satisfying the business records exception to the hearsay rule. For purposes of this <u>clause (e</u>): (I) "*<u>electronic signature</u>*" shall mean a manually-signed original signature that is then transmitted by electronic means; (II) "*<u>transmitted by electronic means</u>*" shall mean sent in the form of a facsimile or sent via the internet as a ".pdf" (portable document format) or other replicating image attached to an e-mail message; and (III) "*<u>electronically signed document</u>*" shall mean a document transmitted by electronic means and containing, or to which there is affixed, an electronic signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Governing Law</u>. THIS AMENDMENT AND ANY CLAIMS, CONTROVERSIES, DISPUTES AND/OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF, OR RELATING TO THIS AMENDMENT AND/OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Fees and Expenses</u>. The Borrower hereby agrees to pay all reasonable and documented costs, fees and out-of-pocket expenses of the Administrative Agent and the Collateral Agent in connection with the preparation, execution and delivery of this Amendment, including, without limitation, the reasonable and documented fees, charges, out-of-pocket expenses and disbursements of Haynes and Boone, LLP, as counsel to the Administrative Agent and the Collateral Agent.

[*Remainder of Page Intentionally Left Blank*; *Signature Pages Follow*]

------

IN WITNESS WHEREOF, each of the parties to this Amendment have caused a counterpart of this Amendment to be duly executed and delivered by its below respective duly authorized officer as of the Third Amendment Effective Date.

---

| | | |
|:---|:---|:---|
| BORROWER: | **SAFEPOINT HOLDINGS, INC.,**<br> a Florida corporation | **SAFEPOINT HOLDINGS, INC.,**<br> a Florida corporation |
|  | By: | /s/ David Flitman |
|  | Name: | David Flitman |
|  | Title: | Chief Executive Officer |
| GUARANTORS: | **CAJUN UNDERWRITERS HOLDINGS, LLC**, **<sub></sub>**<br> a Delaware limited liability company<br> **CAJUN UNDERWRITERS RISK MANAGEMENT, LLC,** <br> a Delaware limited liability company<br> **INSIGHT RISK SOLUTIONS, LLC,** <br> a Florida limited liability company<br> **MANATEE RISK MANAGEMENT LLC,** <br> a Florida limited liability company<br> **SAFEPOINT MGA, LLC,**<br> a Florida limited liability company | **CAJUN UNDERWRITERS HOLDINGS, LLC**, **<sub></sub>**<br> a Delaware limited liability company<br> **CAJUN UNDERWRITERS RISK MANAGEMENT, LLC,** <br> a Delaware limited liability company<br> **INSIGHT RISK SOLUTIONS, LLC,** <br> a Florida limited liability company<br> **MANATEE RISK MANAGEMENT LLC,** <br> a Florida limited liability company<br> **SAFEPOINT MGA, LLC,**<br> a Florida limited liability company |
|  | By: | /s/ David Flitman |
|  | Name: | David Flitman |
|  | Title: | Chief Executive Officer |

---

Signature Page to Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | | |
|:---|:---|:---|
| ADMINISTRATIVE AGENT |  |  |
| AND COLLATERAL AGENT: | **REGIONS BANK,** | **REGIONS BANK,** |
|  | as Administrative Agent and Collateral Agent | as Administrative Agent and Collateral Agent |
|  | By: | /s/ Jon McRae |
|  | Name: | Jon McRae |
|  | Title: | Director |

---

[*Signature Pages Continue*]

Signature Page to Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | | |
|:---|:---|:---|
| LENDERS: | **REGIONS BANK,** | **REGIONS BANK,** |
|  | as Issuing Bank, as Swingline Lender, and as a Lender | as Issuing Bank, as Swingline Lender, and as a Lender |
|  | By: | /s/ Jon McRae |
|  | Name: | Jon McRae |
|  | Title: | Director |

---

[*Signature Pages Continue*]

Signature Page to Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **TEXAS CAPITAL BANK,** | **TEXAS CAPITAL BANK,** |
| as a Lender | as a Lender |
| By: | /s/ Ben Beugelsdijk |
| Name: | Ben Beugelsdijk |
| Title: | Vice President |

---

[*Signature Pages Continue*]

Signature Page to Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **THE HUNTINGTON NATIONAL BANK**, | **THE HUNTINGTON NATIONAL BANK**, |
| as a Third Amendment Joining Lender and as a Lender | as a Third Amendment Joining Lender and as a Lender |
| By: | /s/ Austin G. Love |
| Name: | Austin G. Love |
| Title: | SVP, Managing Director |

---

[*Signature Pages Continue*]

Signature Page to Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

Internal Use

------

---

| | |
|:---|:---|
| **SYNOVUS BANK,** | **SYNOVUS BANK,** |
| as a Lender | as a Lender |
| By: | /s/ Jeffrey Sinkele |
| Name: | Jeffrey Sinkele |
| Title: | Vice President |

---

[*Signature Pages Continue*]

Signature Page to Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **KEYBANK NATIONAL ASSOCIATION,** | **KEYBANK NATIONAL ASSOCIATION,** |
| as a Lender | as a Lender |
| By: | /s/ Amra Rausche |
| Name: | Amra Rausche |
| Title: | Senior Vice President |

---

[*Signature Pages Continue*]

Signature Page to Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **CITIZENS BANK, N.A.,** | **CITIZENS BANK, N.A.,** |
| as a Lender | as a Lender |
| By: | /s/ Donald A. Wright |
| Name: | Donald A. Wright |
| Title: | Senior Vice President |

---

[*Signature Pages Continue*]

Signature Page to Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **DEUTSCHE BANK AG NEW YORK BRANCH,** | **DEUTSCHE BANK AG NEW YORK BRANCH,** |
| as a Lender | as a Lender |
| By: | /s/ Ming K Chu |
| Name: | Ming K Chu |
| Title: | Director |
| By: | /s/ Alison Lugo |
| Name: | Alison Lugo |
| Title: | Vice President |

---

[*Signature Pages Continue*]

Signature Page to Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **TRUSTMARK BANK,** | **TRUSTMARK BANK,** |
| as a Third Amendment Joining Lender and as a Lender | as a Third Amendment Joining Lender and as a Lender |
| By: | /s/ Patrick Schulte |
| Name: | Patrick Schulte |
| Title: | Senior Vice President |

---

[*Signature Pages Continue*]

Signature Page to Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **EAST WEST BANK,** | **EAST WEST BANK,** |
| as a Lender | as a Lender |
| By: | /s/ Ken Phelps |
| Name: | Ken Phelps |
| Title: | Senior Vice President |

---

[*Signature Pages Continue*]

Signature Page to Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **TRUIST BANK,** | **TRUIST BANK,** |
| as a Lender | as a Lender |
| By: | /s/ Hays Wood |
| Name: | Hays Wood |
| Title: | Managing Director |

---

[*Signature Pages Continue*]

Signature Page to Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **LAKE FOREST BANK & TRUST COMPANY, NATIONAL ASSOCIATION (a subsidiary of Wintrust Financial Corporation),** | **LAKE FOREST BANK & TRUST COMPANY, NATIONAL ASSOCIATION (a subsidiary of Wintrust Financial Corporation),** |
| as a Lender | as a Lender |
| By: | /s/ Chris Martorelli |
| Name: | Chris Martorelli |
| Title: | Vice President |

---

[*Signature Pages End*]

Signature Page to Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

ANNEX I

TO THIRD AMENDMENT TO CREDIT AGREEMENT

**BODY OF CREDIT AGREEMENT** 

See attached.

[*Remainder of Page Intentionally Left Blank*]

Annex I to Third Amendment to Credit Agreement (Safepoint Holdings, Inc.)

------

ANNEX I

TO THIRD AMENDMENT TO CREDIT AGREEMENT

**CREDIT AGREEMENT** 

dated as of February 18, 2025

by and among

SAFEPOINT HOLDINGS, INC.

as the Borrower,

CERTAIN SUBSIDIARIES OF THE BORROWER FROM TIME TO TIME PARTY HERETO,

as Guarantors,

THE LENDERS FROM TIME TO TIME PARTY HERETO,

and

REGIONS BANK,

as the Administrative Agent, the Collateral Agent, the Issuing Bank and the Swingline Lender

TEXAS CAPITAL BANK,

as Syndication Agent

THE HUNTINGTON NATIONAL BANK,

SYNOVUS BANK,

and

KEYBANK NATIONAL ASSOCIATION,

as Co-Documentation Agents

REGIONS CAPITAL MARKETS, a division of Regions Bank,

TCBI SECURITIES, INC.,

THE HUNTINGTON NATIONAL BANK,

SYNOVUS BANK,

and

KEYBANK NATIONAL ASSOCIATION,

as Joint Lead Arrangers and Joint Bookrunners

Cover Page to Credit Agreement (Safepoint Holdings, Inc.)

------

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
|  |  | *Page* |
| **Article 1 — DEFINITIONS AND INTERPRETATION** | **Article 1 — DEFINITIONS AND INTERPRETATION** | **1** |
| Section 1.1 | Definitions | 1 |
| Section 1.2 | Accounting Terms | 55 |
| Section 1.3 | Rules of Interpretation | 57 |
| Section 1.4 | Rules of Interpretation with Respect to Regulated Subsidiaries | 60 |
| Section 1.5 | Classifications of Loans and Borrowings | 60 |
| Section 1.6 | Cashless Rollovers | 60 |
| Section 1.7 | Interest Rate Disclosure | 60 |
| **Article 2 — LOANS AND LETTERS OF CREDIT** | **Article 2 — LOANS AND LETTERS OF CREDIT** | **61** |
| Section 2.1 | Revolving Loans and Term Loans | 61 |
| Section 2.2 | Swingline Loans | 66 |
| Section 2.3 | Issuances of Letters of Credit and Purchase of Participations Therein | 69 |
| Section 2.4 | Pro Rata Shares; Availability of Funds | 73 |
| Section 2.5 | Evidence of Debt; Register; Lenders' Books and Records; Notes | 74 |
| Section 2.6 | Scheduled Principal Payments | 75 |
| Section 2.7 | Interest on Loans | 75 |
| Section 2.8 | Conversion / Continuation | 78 |
| Section 2.9 | Default Rate of Interest | 78 |
| Section 2.10 | Fees | 79 |
| Section 2.11 | Prepayments/Commitment Reductions | 80 |
| Section 2.12 | Application of Prepayments | 83 |
| Section 2.13 | General Provisions Regarding Payments | 84 |
| Section 2.14 | Sharing of Payments by Lenders | 85 |
| Section 2.15 | Cash Collateral | 86 |
| Section 2.16 | Defaulting Lenders | 87 |
| Section 2.17 | Removal or Replacement of Lenders | 89 |
| **Article 3 — YIELD PROTECTION** | **Article 3 — YIELD PROTECTION** | **91** |
| Section 3.1 | Making or Maintaining SOFR Loans; Benchmark Replacement | 91 |
| Section 3.2 | Increased Costs | 94 |
| Section 3.3 | Taxes | 95 |
| Section 3.4 | Mitigation Obligations; Designation of a Different Lending Office | 99 |
| **Article 4 — GUARANTY** | **Article 4 — GUARANTY** | **100** |
| Section 4.1 | The Guaranty | 100 |
| Section 4.2 | Obligations Unconditional | 100 |
| Section 4.3 | Reinstatement | 101 |
| Section 4.4 | Certain Additional Waivers | 101 |
| Section 4.5 | Remedies | 101 |
| Section 4.6 | Rights of Contribution | 102 |
| Section 4.7 | Guarantee of Payment; Continuing Guarantee | 102 |
| Section 4.8 | Keepwell | 102 |
| **Article 5 — CONDITIONS PRECEDENT** | **Article 5 — CONDITIONS PRECEDENT** | **102** |
| Section 5.1 | Conditions Precedent to Initial Credit Extensions | 102 |
| Section 5.2 | Conditions to Each Credit Extension | 105 |

---

**Table of Contents** to Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | | |
|:---|:---|:---|
| **Article 6 — REPRESENTATIONS AND WARRANTIES** | **Article 6 — REPRESENTATIONS AND WARRANTIES** | **106** |
| Section 6.1 | Organization; Requisite Power and Authority; Qualification | 106 |
| Section 6.2 | Equity Interests and Ownership | 107 |
| Section 6.3 | Due Authorization | 107 |
| Section 6.4 | No Conflict | 107 |
| Section 6.5 | Governmental Consents | 108 |
| Section 6.6 | Binding Obligation | 108 |
| Section 6.7 | Financial Statements | 108 |
| Section 6.8 | No Material Adverse Effect; No Default or Event of Default | 109 |
| Section 6.9 | Tax Matters | 109 |
| Section 6.10 | Properties | 110 |
| Section 6.11 | Environmental Matters | 110 |
| Section 6.12 | No Defaults | 111 |
| Section 6.13 | No Litigation or other Adverse Proceedings | 111 |
| Section 6.14 | Information Regarding Credit Parties, Subsidiaries and Other Regulated Entities | 111 |
| Section 6.15 | Governmental Regulation | 111 |
| Section 6.16 | Employee Matters | 113 |
| Section 6.17 | Pension Plans | 113 |
| Section 6.18 | Solvency | 114 |
| Section 6.19 | Compliance with Laws | 114 |
| Section 6.20 | Disclosure | 114 |
| Section 6.21 | Insurance | 115 |
| Section 6.22 | Pledge and Security Agreement | 115 |
| Section 6.23 | Mortgages | 115 |
| Section 6.24 | No Casualty | 116 |
| **Article 7 — AFFIRMATIVE COVENANTS** | **Article 7 — AFFIRMATIVE COVENANTS** | **116** |
| Section 7.1 | Financial Statements and Other Reports | 116 |
| Section 7.2 | Existence | 120 |
| Section 7.3 | Payment of Taxes and Claims | 120 |
| Section 7.4 | Maintenance of Properties | 121 |
| Section 7.5 | Insurance | 121 |
| Section 7.6 | Inspections | 121 |
| Section 7.7 | Lenders Meetings | 122 |
| Section 7.8 | Compliance with Laws and Material Contracts | 122 |
| Section 7.9 | Use of Proceeds | 122 |
| Section 7.10 | Environmental Matters | 122 |
| Section 7.11 | Additional Real Estate Assets | 123 |
| Section 7.12 | Pledge of Personal Property Assets | 124 |
| Section 7.13 | Books and Records | 125 |
| Section 7.14 | Additional Subsidiaries | 125 |
| Section 7.15 | Maintenance of Reinsurance | 126 |
| **Article 8 — NEGATIVE COVENANTS** | **Article 8 — NEGATIVE COVENANTS** | **126** |
| Section 8.1 | Indebtedness | 126 |
| Section 8.2 | Liens | 128 |
| Section 8.3 | No Further Negative Pledges | 130 |
| Section 8.4 | Restricted Payments | 131 |
| Section 8.5 | Burdensome Agreements | 131 |

---

ii

------

---

| | | |
|:---|:---|:---|
| Section 8.6 | Investments | 132 |
| Section 8.7 | Use of Proceeds | 134 |
| Section 8.8 | Financial Covenants | 134 |
| Section 8.9 | Fundamental Changes; Disposition of Assets; Acquisitions | 135 |
| Section 8.10 | Disposal of Subsidiary Interests | 135 |
| Section 8.11 | Sales and Lease-Backs | 136 |
| Section 8.12 | Transactions with Affiliates and Insiders | 136 |
| Section 8.13 | Modification or Payment of Certain Funded Debt | 137 |
| Section 8.14 | Conduct of Business | 137 |
| Section 8.15 | Fiscal Year | 137 |
| Section 8.16 | Amendments to Organizational Agreements / Material Agreements | 138 |
| Section 8.17 | Accounting and Reporting Changes | 138 |
| Section 8.18 | Statutory Capitalization / Risk-Based Capital Ratio | 138 |
| Section 8.19 | Holdco Restrictions | 138 |
| **Article 9 — EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS** | **Article 9 — EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS** | **139** |
| Section 9.1 | Events of Default | 139 |
| Section 9.2 | Remedies | 143 |
| Section 9.3 | Application of Funds | 144 |
| **Article 10 — AGENCY** | **Article 10 — AGENCY** | **147** |
| Section 10.1 | Appointment and Authority | 147 |
| Section 10.2 | Rights as a Lender | 148 |
| Section 10.3 | Exculpatory Provisions | 148 |
| Section 10.4 | Reliance by Administrative Agent | 149 |
| Section 10.5 | Delegation of Duties | 149 |
| Section 10.6 | Resignation of Administrative Agent | 150 |
| Section 10.7 | Non-Reliance on Administrative Agent and Other Lenders | 151 |
| Section 10.8 | No Other Duties, etc. | 151 |
| Section 10.9 | Administrative Agent May File Proofs of Claim | 151 |
| Section 10.10 | Collateral and Guaranty Matters | 152 |
| Section 10.11 | Erroneous Payments | 153 |
| **Article 11 — MISCELLANEOUS** | **Article 11 — MISCELLANEOUS** | **156** |
| Section 11.1 | Notices; Effectiveness; Electronic Communications | 156 |
| Section 11.2 | Expenses; Indemnity; Damage Waiver | 157 |
| Section 11.3 | Set-Off | 160 |
| Section 11.4 | Amendments and Waivers | 160 |
| Section 11.5 | Successors and Assigns | 164 |
| Section 11.6 | Independence of Covenants | 168 |
| Section 11.7 | Survival of Representations, Warranties and Agreements | 169 |
| Section 11.8 | No Waiver; Remedies Cumulative | 169 |
| Section 11.9 | Marshalling; Payments Set Aside | 169 |
| Section 11.10 | Severability | 169 |
| Section 11.11 | Obligations Several; Independent Nature of Lenders' Rights | 169 |
| Section 11.12 | Headings | 169 |
| Section 11.13 | Applicable Laws | 170 |
| Section 11.14 | WAIVER OF JURY TRIAL | 170 |
| Section 11.15 | Confidentiality | 170 |
| Section 11.16 | Usury Savings Clause | 172 |
| Section 11.17 | Electronic Execution; Counterparts | 173 |

---

iii

------

---

| | | |
|:---|:---|:---|
| Section 11.18 | No Advisory or Fiduciary Relationship | 173.0 |
| Section 11.19 | Integration; Effectiveness | 174.0 |
| Section 11.20 | USA PATRIOT Act | 174.0 |
| Section 11.21 | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 174.0 |
| Section 11.22 | Certain ERISA Matters | 175.0 |
| Section 11.23 | Acknowledgment Regarding any Supported QFCs | 176.0 |

---

iv

------

---

| | | |
|:---|:---|:---|
|  Appendices: | Appendices: | Appendices: |
|  | Appendix A | Lenders, Commitments and Commitment Percentages |
|  | Appendix B | Notice Information |
|  Schedules: | Schedules: | Schedules: |
|  | Schedule 6.1 | Organization; Requisite Power and Authority; Qualification |
|  | Schedule 6.2 | Equity Interests and Ownership |
|  | Schedule 6.10(b) | Real Estate Assets |
|  | Schedule 6.14 | Names, Jurisdictions and Tax Identification Numbers |
|  | Schedule 6.21 | Insurance Coverage |
|  | Schedule 8.1 | Existing Indebtedness |
|  | Schedule 8.2 | Existing Liens |
|  | Schedule 8.6 | Existing Investments |
| Exhibits: |  |  |
|  | Exhibit 1.1 | [*Form of*] Secured Party Designation Notice |
|  | Exhibit 2.1 | [*Form of*] Funding Notice |
|  | Exhibit 2.3 | [*Form of*] Issuance Notice |
|  | Exhibit 2.5 | [*Form of*] Note |
|  | Exhibit 2.8 | [*Form of*] Conversion / Continuation Notice |
|  | Exhibit 3.3 | [*Forms of*] U.S. Tax Compliance Certificates (Forms 1 – 4) |
|  | Exhibit 7.1(c) | [*Form of*] Compliance Certificate |
|  | Exhibit 7.14 | [*Form of*] Guarantor Joinder Agreement |
|  | Exhibit 11.5 | [*Form of*] Assignment Agreement |

---

v

------

**CREDIT AGREEMENT** 

This CREDIT AGREEMENT (as amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time, this "*<u>Agreement</u>*"), dated as of February 18, 2025 (the "*<u>Closing Date</u>*"), is entered into by and among SAFEPOINT HOLDINGS, INC., a Florida corporation (the "*<u>Borrower</u>*"), certain Subsidiaries of the Borrower from time to time party hereto, as Guarantors, the Lenders from time to time party hereto, and REGIONS BANK, as administrative agent (in such capacity, together with its successors and permitted assigns in such capacity, the "*<u>Administrative Agent</u>*") and collateral agent (in such capacity, together with its successors and permitted assigns in such capacity, the "*<u>Collateral Agent</u>*").

R E C I T A L S

WHEREAS, the Borrower has requested that the Lenders provide, in its favor, (i) a Seventy-Five Million Dollar ($75,000,000) revolving credit facility (as increased pursuant to the Second Amendment and the Third Amendment), (ii) a term loan, advanced in a single installment on the Closing Date, in an original principal amount of One-Hundred Million Dollars ($100,000,000), and (iii) a delayed draw term loan, to be advanced in up to five (5) separate installments during the DDTL Availability Period (here and hereafter as such term is defined in <u>Section</u> <u>1.1</u>), in an aggregate original principal amount (for all such installments, taken together) of up to One-Hundred Fifteen Million Dollars ($115,000,000) (as increased pursuant to the First Amendment, the Second Amendment and the Third Amendment); and

WHEREAS, the Lenders have agreed to make the requested credit facilities available to the Borrower, in each case, on the terms, and subject to the conditions, set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements contained herein, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, each of the parties to this Agreement hereby covenant and agree as follows:

A G R E E M E N T

**Article 1** 

**<u>DEFINITIONS AND INTERPRETATION</u>** 

Section 1.1 <u>Definitions</u>. The following terms used herein, including in the introductory paragraph, recitals, appendices, exhibits and schedules hereto, shall have the following meanings:

"*<u>Acquisition</u>*" shall mean, with respect to any Person, the acquisition by such Person, in a single transaction or in a series of related transactions, of: (a) all, or any substantial portion, of the Property of another Person, or any division, line of business or other business unit of another Person; or (b) *at least* a majority of the Voting Stock of another Person, in each case, whether or not involving a merger or consolidation with such other Person and whether for cash, property, services, assumption of Indebtedness, securities or otherwise.

"*<u>Additional Incremental Lender</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.1(d)(i)(D</u>).

Credit Agreement (Safepoint Holdings, Inc.)

------

"*<u>Administrative Agent</u>*" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"*<u>Administrative Questionnaire</u>*" shall mean an administrative questionnaire provided by the Lenders in a form supplied by the Administrative Agent.

"*<u>Adverse Proceeding</u>*" shall mean any action, suit, proceeding (whether administrative, judicial or otherwise), governmental investigation or arbitration (whether or not purportedly on behalf of any Credit Party, any Subsidiary or any other Regulated Entity) at law or in equity, or before or by any Governmental Authority, whether pending, threatened in writing against any Credit Party, any Subsidiary or any other Regulated Entity or any material Property of any Credit Party, any Subsidiary or any other Regulated Entity.

"*<u>Affected Financial Institution</u>*" shall mean: (a) any EEA Financial Institution; or (b) any UK Financial Institution.

"*<u>Affected Lender</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.1(b</u>).

"*<u>Affected Loans</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.1(b</u>).

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

"*<u>Agent</u>*" shall mean, collectively, the Administrative Agent and the Collateral Agent.

"*<u>Aggregate DDTL Commitment Amount</u>*" shall mean, at any time, the amount of the Aggregate DDTL Commitments in effect at such time. On the Third Amendment Effective Date immediately *after* giving effect to the Third Amendment DDTL Increase (as such term is defined in the Third Amendment), the Aggregate DDTL Commitment Amount is Ninety Million Dollars ($90,000,000).

"*<u>Aggregate DDTL Commitments</u>*" shall mean, at any time, the DDTL Commitments of all of the Lenders in effect at such time, taken together.

"*<u>Aggregate Revolving Commitment Amount</u>*" shall mean, at any time, the amount of the Aggregate Revolving Commitments in effect at such time. On the Third Amendment Effective Date immediately after giving effect to the Third Amendment Revolver Increase (as such term is defined in the Third Amendment), the Aggregate Revolving Commitment Amount is Seventy-Five Million Dollars ($75,000,000).

"*<u>Aggregate Revolving Commitments</u>*" shall mean, at any time, the Revolving Commitments of all of the Lenders in effect at such time, taken together.

"*<u>Aggregate Revolving Credit Exposure</u>*" shall mean, at any time, the *sum of* the Revolving Credit Exposures of all of the Lenders at such time, taken together.

"*<u>Aggregate Term Loan A Commitment Amount</u>*" shall mean, at any time, the amount of the Aggregate Term Loan A Commitments in effect at such time. On the Closing Date as of the time of initial effectiveness of this Agreement (but *prior* to giving effect to the Borrowing of the Term Loan A on the Closing Date), the Aggregate Term Loan A Commitment Amount was One-Hundred Million Dollars ($100,000,000).

.

------

"*<u>Aggregate Term Loan A Commitments</u>*" shall mean, at any time, the Term Loan A Commitments of all of the Lenders in effect at such time, taken together.

"*<u>Agreement</u>*" shall have the meaning specified for such term in the introductory paragraph of this Agreement.

"*<u>All</u>*<u>-</u>*<u>In Yield</u>*" shall mean, as to any Indebtedness, the yield thereof (without giving effect to any underlying fluctuations in the underlying base rate), whether in the form of interest rate, margin, original issue discount, upfront fees, a SOFR or Base Rate floor (or any floor on any SOFR-Based Rate or any other interest rate that is derived from SOFR, the SOFR Reference Rate for an applicable tenor or the Base Rate), or otherwise, in each case of the foregoing, incurred or payable by the Borrower generally to all of the lenders of such Indebtedness; <u>provided</u>, <u>that</u>, (i) original issue discount and upfront fees shall be equated to interest rate assuming a four (4) year life to maturity (or, if less, the stated life to maturity at the time of incurrence of the applicable Indebtedness), (ii) "*All*- *In Yield*" shall *not* include customary arrangement fees, structuring fees, commitment fees, underwriting fees, amendment fees and similar fees (regardless of whether paid, in whole or in part, to any or all of lenders of such Indebtedness), or other fees *not* paid generally to all lenders of such Indebtedness, and (iii) if such Indebtedness includes a SOFR or Base Rate floor (or any floor on any SOFR-Based Rate or any other interest rate that is derived from SOFR, the SOFR Reference Rate for an applicable tenor, or the Base Rate) that is *greater than* the SOFR or Base Rate floor (or any floor on any SOFR-Based Rate or any other interest rate that is derived from SOFR, the SOFR Reference Rate for an applicable tenor, or the Base Rate) applicable to any existing Class of Term Loans, such differential between interest rate floors shall be included in the calculation of All-In Yield, but only to the extent that an increase in the interest rate floor applicable to such existing Class of Term Loans would cause an increase in the interest rate then in effect thereunder, and in such case, the interest rate floor (but *not* the Applicable Margin) applicable to such existing Class of Term Loans shall be increased to the extent of such differential between interest rate floors.

"*<u>ALTA</u>*" shall mean the American Land Title Association.

"*<u>Annual Financial Statements</u>*" shall have the meaning specified for such term in <u>Section</u> <u>5.1(f)(ii</u>).

"*<u>Anti</u>*<u>-</u>*<u>Corruption Laws</u>*" shall mean the Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd–1, *et seq*.*,* the UK Bribery Act of 2010, and all other laws, rules, and regulations of any jurisdiction applicable to any Credit Party or any of its Affiliates from time to time concerning or relating to bribery or corruption.

"*<u>Applicable Laws</u>*" shall mean all applicable laws, including all applicable provisions of constitutions, statutes, rules, ordinances, regulations and orders of all Governmental Authorities and all orders, rulings, writs and decrees of all courts, tribunals and arbitrators.

"*<u>Applicable Margin</u>*" shall mean, except as otherwise set forth in (A) any Incremental Facility Agreement with respect to any Incremental Term Loan established thereunder, or (B) any Auto Borrow Agreement with respect to any Swingline Loan advanced pursuant to an Auto Borrow Agreement then in effect, as of any date of determination, (a) during the period from the Closing Date through, and including, the date that is two (2) Business Days immediately following the date on which the financial statements and related Compliance Certificate are delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>) and <u>Section</u> <u>7.1(c</u>), respectively, for the Fiscal Quarter ending March 31, 2025, the applicable percentage per annum based upon Pricing Level III as set forth in the table immediately below, and (b) thereafter, the applicable percentage per annum determined by reference to the table set forth immediately below, using the Consolidated Leverage Ratio as set forth in the Compliance Certificate

------

most recently delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(c</u>), with any increase or decrease in the Applicable Margin resulting from a change in the Consolidated Leverage Ratio becoming effective on the date that is two (2) Business Days immediately following the date on which such Compliance Certificate is delivered.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Pricing<br>Level** | **Consolidated Leverage Ratio** | **SOFR Loans and<br>Letter of Credit Fee** | **Base Rate Loans** | **Commitment<br>Fee** |
| I | < 1.25 to 1 | 3.25% | 2.25% | 0.400% |
| II | < 1.75 to 1.0, *but*<br> ≥ 1.25 to 1.0 | 3.50% | 2.50% | 0.450% |
| III | ≥ 1.75 to 1 | 3.75% | 2.75% | 0.500% |

---

Notwithstanding anything to the contrary in the foregoing: (i) if, at any time, a Compliance Certificate and/or the accompanying financial statements are *not* delivered when due in accordance herewith, then Pricing Level III as set forth in the table immediately above shall apply as of the first (1<sup>st</sup>) Business Day after the date on which such Compliance Certificate and accompanying financial statements were required to have been delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>) and <u>Section</u> <u>7.1(c</u>), respectively, and such Pricing Level shall remain in effect until the date on which such Compliance Certificate and such accompanying financial statements are delivered to the Administrative Agent; and (ii) the determination of the Applicable Margin for any period shall be subject to the provisions of <u>Section</u> <u>2.7(e</u>). The Applicable Margin with respect to any Incremental Term Loan shall be as provided in the Incremental Facility Agreement establishing such Incremental Term Loan.

"*<u>Approved Fund</u>*" shall mean any Fund that is administered or managed by: (a) a Lender; (b) an Affiliate of a Lender; or (c) an entity, or an Affiliate of an entity, that administers or manages a Lender.

"*<u>Arrangers</u>*" shall mean each of Regions Capital Markets, a division of Regions Bank, TCBI Securities, Inc., The Huntington National Bank, Synovus Bank, and KeyBank National Association, each in their respective capacities as joint lead arranger and joint bookrunner under this Agreement.

"*<u>Asset Sale</u>*" shall mean a sale, lease, Sale and Leaseback Transaction, assignment, conveyance, exclusive license (as licensor), Securitization Transaction, transfer or other disposition to, or any exchange of Property with, any Person, in one transaction or a series of transactions, of any Credit Party, any Subsidiary or any other Regulated Entity or of all, or any part, of any of their respective businesses or Properties of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, created, leased or licensed, including the Equity Interests in any Subsidiary, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) dispositions of surplus, obsolete or worn-out Property, or Property no longer used or useful in the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity, whether now owned or hereafter acquired, in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) dispositions of inventory sold, and Intellectual Property licensed, in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) dispositions of accounts or payment intangibles (each as defined in the UCC) resulting from the compromise or settlement thereof in the ordinary course of business for *less than* the full amount thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) dispositions of cash and Cash Equivalents in the ordinary course of business;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) licenses, sublicenses, leases or subleases granted to any third parties in arm's-length commercial transactions in the ordinary course of business that do *not* interfere, in any material respect, with the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) dispositions of Property held by Regulated Entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the termination or surrender of any real property lease of any Credit Party, any Subsidiary or any other Regulated Entity in the ordinary course of business, so long as the loss of such leased location could *not* be reasonably expected to have an adverse and material effect on any of the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the abandonment or other disposition of Intellectual Property, whether now or hereafter owned or leased or acquired in connection with an Acquisition or other permitted Investment, that is, in the reasonable business judgment of the Borrower, no longer economically practicable or commercially desirable to maintain or used or useful in the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any issuance of Equity Interests in the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) to the extent constituting a sale, transfer, lease, or other disposition of an asset, any Restricted Payment made pursuant to <u>Section</u> <u>8.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) sales, transfers, or other dispositions of Investments to the extent permitted under <u>Section</u> <u>8.6</u> in joint ventures to the extent required by, or made pursuant to customary buy/sell arrangements between, the parties set forth in joint venture arrangements and similar binding agreements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) dispositions of Property to the extent that: (i) such Property is exchanged for credit against the purchase price of substantially similar replacement Property; or (ii) the proceeds of such disposition are promptly applied to the purchase price of substantially similar replacement Property.

"*<u>Assignment Agreement</u>*" shall mean an assignment agreement entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by <u>Section</u> <u>11.5(b)(iii</u>)) and accepted by the Administrative Agent, in substantially the form of <u>Exhibit 11.5</u> or any other form (including electronic documentation generated by MarkitClear or other electronic platform) approved by the Administrative Agent.

"*<u>Attributable Principal Amount</u>*" shall mean, in the case of: (a) Capital Leases, the amount of Capital Lease obligations determined in accordance with GAAP; (b) Synthetic Leases, an amount determined by capitalization of the remaining lease payments thereunder as if it were a Capital Lease determined in accordance with GAAP; (c) Securitization Transactions, the outstanding principal amount of such financing, after taking into account reserve amounts and making appropriate adjustments, determined by the Administrative Agent in its reasonable judgment; and (d) Sale and Leaseback Transactions, the present value (discounted in accordance with GAAP at the debt rate implied in the applicable lease) of the obligations of the lessee for rental payments during the term of such lease.

"*<u>Authorized Officer</u>*" shall mean, as applied to any Person, any individual holding the position of chairman of the board (if an officer), chief executive officer, president or one (1) of its vice presidents (or the equivalent thereof), chief financial officer or treasurer and, *solely* for purposes of making the certifications required under <u>Section</u> <u>5.1(b)(ii</u>) and <u>Section</u> <u>5.1(c</u>), any secretary or assistant secretary.

"*<u>Auto Borrow Agreement</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.2(b)(vi</u>).

------

"*<u>Automatic Acceleration Event of Default</u>* shall mean an Event of Default pursuant to <u>Section</u> <u>9.1(f</u>) or <u>Section</u> <u>9.1(g</u>).

"*<u>Available Tenor</u>*" shall mean, as of any date of determination and with respect to the then-current Benchmark, as applicable, any tenor for such Benchmark or any payment period for interest calculated with reference to such Benchmark, as applicable, that is, or may be, used for determining the length of any interest period (including any Interest Period) pursuant to this Agreement as of such date of determination.

"*<u>Bail</u>*<u>-</u>*<u>In Action</u>*" shall mean the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"*<u>Bail</u>*<u>-</u>*<u>In Legislation</u>*" shall mean: (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing Law for such EEA Member Country from time to time which is described in the applicable EU Bail-In Legislation Schedule; and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act of 2009 (as amended from time to time), and any other Law applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions, or any affiliates of any of the foregoing (other than through liquidation, administration, or other insolvency proceedings).

"*<u>Bankruptcy Code</u>*" shall mean Title 11 of the United States Code entitled "*Bankruptcy*," as now and hereafter in effect, or any successor statute.

"*<u>Base Rate</u>*" shall mean, for any date of determination, a rate per annum equal to the *highest* of (a) the rate of interest that Regions announces from time to time as its prime lending rate, as in effect from time to time (the "*<u>Prime Rate</u>*"), (b) the Federal Funds Rate, as in effect from time to time, *plus* one-half of one percent (0.50%) per annum, (c) Term SOFR in effect on such day for a forward-looking Interest Period of one (1) month commencing on such day, *plus* one percent (1.00%) per annum (with any change(s) in any of the rates described in the foregoing <u>clauses (a</u>) through (<u>c</u>) to be effective as of the date of any such change(s) in such rates), and (d) the Floor. The Prime Rate is a reference rate and does *not* necessarily represent the lowest or best rate actually charged to any customer. The Administrative Agent and the Lenders may make commercial loans, or other loans, at rates of interest at, above, or below the Prime Rate. Any change(s) to the Base Rate due to a change in the Prime Rate, the Federal Funds Rate and/or Term SOFR, as the case may be, will be deemed to be effective from, and including, the date of effectiveness of such change(s) to the Prime Rate, the Federal Funds Rate and/or Term SOFR. For the avoidance of doubt and notwithstanding anything to the contrary in the foregoing, if, at any time, the Base Rate is *less than* the Floor, then the Base Rate shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents.

"*<u>Base Rate Borrowing</u>*" shall mean a Borrowing, the Loans in respect of which bear interest at a rate determined by reference to the Base Rate (including, for the avoidance of doubt, pursuant to clause (c) of the definition of "*Base Rate*" above).

"*<u>Base Rate Loan</u>*" shall mean a Loan bearing interest at a rate determined by reference to the Base Rate (including, for the avoidance of doubt, pursuant to clause (c) of the definition of "*Base Rate*" above).

"*<u>Benchmark</u>*" shall mean, as of the Closing Date, the SOFR Reference Rate for any applicable tenor; <u>provided</u>, <u>that</u>, if any Benchmark Replacement has been incorporated into this Agreement after the Closing Date pursuant to <u>Section</u> <u>3.1</u>, then "*Benchmark*" shall mean the applicable Benchmark Replacement.

------

"*<u>Benchmark Illegality</u>* <u>/</u> *<u>Impracticability Event</u>*" shall mean the occurrence of one (1) or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the making, maintaining and/or continuation of the then-current Benchmark by any Lender shall have become unlawful as a result of compliance by such Lender in good faith with any law, treaty, governmental rule, regulation, guideline or order (or would conflict with any such treaty, governmental rule, regulation, guideline or order *not* having the force of law, even though the failure to comply therewith would *not* be unlawful);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any Benchmark, any successor administrator of the published screen rate for such Benchmark, or any Governmental Authority having jurisdiction over the Administrative Agent or the administrator of such Benchmark, shall have made a public statement establishing a specific date (whether expressly or by virtue of such public statement) after which an Available Tenor of such Benchmark, or the published screen rate for such Benchmark, shall or will no longer be representative or made available, or otherwise used for determining the interest rate of loans, or shall or will otherwise cease; <u>provided</u>, <u>that</u>, at the time of such statement, there is no successor administrator that is satisfactory to the Administrative Agent that will continue to provide such representative interest periods of such Benchmark after such specific date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the making, maintaining and/or continuation of the then-current Benchmark by any Lender has become impracticable, as a result of contingencies occurring after the Closing Date that materially and adversely affect the ability of a Lender to make, maintain and/or continue its Loans at the then-current Benchmark (including, without limitation, because the published screen rate for such Benchmark in a relevant tenor is *not* available or published on a current basis and such circumstances are unlikely to be temporary); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) with respect to any Lender, the then-current Benchmark (including any related mathematical or other adjustments thereto) does or will *not* adequately and fairly reflect the cost to such Lender of making, funding and/or maintaining its Loans at the then-current Benchmark.

For the avoidance of doubt, a "*Benchmark Illegality* / *Impracticability Event*" shall be deemed to have occurred, with respect to any Benchmark, if a public statement or publication of information as described above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"*<u>Benchmark Replacement</u>*" shall mean Daily Simple SOFR for any payment period for interest calculated that can be determined by the Administrative Agent, without any amendment to, or further action or consent of any other party to, this Agreement or any other Credit Document.

"*<u>Benchmark Replacement Adjustment</u>*" shall mean, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or equal to zero), that has been selected by the Administrative Agent and the Borrower, giving due consideration to: (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body; or (b) any evolving, or then-prevailing, market convention for determining a spread adjustment, or a method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

------

"*<u>Benchmark Replacement Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.1(g)(i</u>).

"*<u>Beneficial Ownership Certification</u>*" shall have the meaning specified for such term in <u>Section</u>

<u>5.1(k</u>).

"*<u>Benefit Plan</u>*" shall mean any of: (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA; (b) a "plan" as defined in, and subject to, Section 4975 of the Internal Revenue Code; or (c) any Person whose assets include (for purposes of ERISA Section 3(42), or otherwise for purposes of Title I of ERISA or Section 4975 of the Internal Revenue Code) the assets of any such "employee benefit plan" or "plan".

"*<u>BHC Act Affiliate</u>*" of a party shall mean an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. § 1841(k)) of such party.

"*<u>Borrower</u>*" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"*<u>Borrowing</u>*" shall mean, as the context may require, a borrowing consisting of: (a) Loans of the same Class and Type, made, converted or continued on the same date, and, in the case of SOFR Loans, as to which a single Interest Period is in effect; or (b) a Swingline Loan.

"*<u>Business Day</u>*" shall mean any day, other than a Saturday, a Sunday, or any other day that is a legal holiday under the laws of the state of New York or is a day on which banking institutions located in such state are authorized, or are required by Applicable Law or any Governmental Act, to close; <u>provided</u>, <u>that</u>, with respect to notices and determinations in connection with, and payments of principal and/or interest on, SOFR Loans, such day is also a U.S. Government Securities Business Day.

"*<u>Capital Expenditures</u>*" shall mean, with respect to any Person for any period of measurement, the *sum of* (without duplication) (a) the additions to property, plant and equipment and other capital expenditures of such Person that are (or would be required to be) set forth on a consolidated statement of cash flows of such Person for such period, prepared in accordance with GAAP, *plus* (b) the Attributable Principal Amount of Capital Leases incurred by such Person during such period, but *excluding* any such expenditures to the extent that such expenditures are: (i) made with the Net Cash Proceeds of any Asset Sale or Involuntary Disposition to the extent that such expenditures are used to purchase Property that is the same as, or substantially functionally equivalent to, the Property subject to such Asset Sale or Involuntary Disposition (and including, for purposes of clarity, the purchase price of replacement Property that is purchased, to the extent that the gross amount of such purchase price is reduced by the credit granted by the seller of such replacement Property for such existing Property being traded in at such time); or (ii) part of the aggregate amounts payable in connection with, or constitute other consideration for, any Permitted Acquisition or other Investment permitted under this Agreement (whether consummated during, or prior to, such period of measurement).

"*<u>Capital Lease</u>*" shall mean, as applied to any Person, any lease of any Property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person.

------

"*<u>Captive Reinsurance Companies</u>*" shall mean, collectively: (a) each of (i) Bobcat Re Ltd., (ii) Canal Re Ltd., (iii) Pompano Re Ltd., and (iv) Tarpon Ltd.; and (b) any controlled Affiliate of any Credit Party that is primarily engaged in the provision of reinsurance services to other Credit Parties, Subsidiaries and/or Regulated Entities.

"*<u>Cash Collateralize</u>*" shall mean to pledge and deposit with, or deliver to, the Administrative Agent, the Collateral Agent, the Issuing Bank or the Swingline Lender, as applicable, as collateral for the Letter of Credit Obligations or Swingline Loans, as applicable, or obligations of Lenders to fund participations in respect thereof, cash or deposit account balances or, if the Administrative Agent, the Collateral Agent, the Issuing Bank or Swingline Lender, as applicable, may agree in their sole discretion, other credit support, in each case, pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent, the Collateral Agent, the Issuing Bank and/or the Swingline Lender, as applicable. "*Cash Collateral*" shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.

"*<u>Cash Equivalents</u>*" shall mean, as of any date of determination, any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) marketable securities (i) issued or directly and unconditionally guaranteed as to interest and principal by the United States government, or (ii) issued by any agency of the United States the obligations of which are backed by the full faith and credit of the United States, in each case of the foregoing <u>clauses (a)(i</u>) and (<u>a)(ii</u>), maturing within one (1) year after such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) marketable direct obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof, in each case, maturing within one (1) year after such date and having, at the time of the acquisition thereof, a rating of *at least* A–1 from S&P or *at least* P–1 from Moody's;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) commercial paper maturing *no more than* one (1) year from the date of creation thereof and having, at the time of the acquisition thereof, a rating of *at least* A–1 from S&P or *at least* P–1 from Moody's;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) certificates of deposit or bankers' acceptances maturing within one (1) year after such date and issued or accepted by any Lender or by any commercial bank organized under the laws of the United States, or of any state thereof or the District of Columbia, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is *at least* "adequately capitalized" (as defined in the regulations of its primary federal banking regulator); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has Tier 1 capital (as defined in such regulations) of *not less than* One-Hundred Million Dollars ($100,000,000); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) shares of any money market mutual fund that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) has substantially all of its assets invested continuously in the types of investments referred to in <u>clauses (a</u>) and (<u>b</u>) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has net assets of *not less than* Five-Hundred Million Dollars ($500,000,000); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) has the highest rating obtainable from either S&P or Moody's.

------

"*<u>CFC</u>*" shall mean a "controlled foreign corporation" within the meaning of Section 957 of the Code.

"*<u>Change in Control</u>*" shall mean the occurrence of one (1) or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Permitted Holders, taken together, shall cease to own and control, beneficially and of record, directly or indirectly, *at least* forty-four percent (44.0%) of the outstanding Voting Stock in the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) David Flitman, an individual resident of the state of Florida, shall cease to be the duly appointed, acting chief executive officer of the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the acquisition of ownership, directly or indirectly, beneficially or of record, by any "person" or "group" (within the meaning of the Exchange Act, as in effect on the Closing Date), other than the Permitted Holders, of thirty percent (30.0%) or more of the outstanding Voting Stock in the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) except pursuant to a transaction that is expressly permitted under this Agreement and the other Credit Documents, the Borrower shall cease to possess the right to elect (through contract, ownership of Voting Stock, or otherwise), at all times, a majority of the board of directors or managers (or equivalent governing body) of each of its Subsidiaries and/or to direct the management policies and decisions of each such Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) except pursuant to a transaction that is expressly permitted under this Agreement and the other Credit Documents, any Person that, on the Closing Date or at any time thereafter, is: (i) a Captive Reinsurance Company shall cease to be a Captive Reinsurance Company pursuant to clause (b) of the definition of "*Captive Reinsurance Company*" above; or (ii) a Qualifying Reciprocal Entity shall thereafter cease to be a Qualifying Reciprocal Entity pursuant to clause (b) of the definition of "*Qualifying Reciprocal Entity*" below; or (iii) a Regulated Subsidiary (other than a Captive Reinsurance Company) shall cease to be a Regulated Subsidiary (other than a Captive Reinsurance Company) pursuant to clause (b) of the definition of "*Regulated Subsidiary*" below.

"*<u>Change in Law</u>*" shall mean the occurrence, after the Closing Date, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty, or in the administration, interpretation, implementation or application thereof, by any Governmental Authority, or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; <u>provided</u>, <u>that</u>, notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith, (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, and (iii) all requests, rules, guidelines or directives issued by a Governmental Authority in connection with a Lender's submission or re-submission of a capital plan under 12 C.F.R. § 225.8 or a Governmental Authority's assessment thereof shall, in each case, be deemed to be a "*Change in Law*", regardless of the date enacted, adopted or issued.

"*<u>Class</u>*", when used in reference to any Loan or Borrowing, shall refer to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Swingline Loans, the Term Loan A, the Delayed Draw Term Loan, or a specified Incremental Term Loan, and, when used in reference to any Commitment, refers to whether such Commitment is a Revolving Commitment, a Swingline Commitment, a Term Loan A Commitment, a DDTL Commitment, or an Incremental Term Loan Commitment in respect of a specified Incremental Term Loan.

------

"*<u>Closing Date</u>*" shall have the meaning provided for such term in the introductory paragraph to this Agreement.

"*<u>Closing Date Distribution</u>*" shall mean a one-time tax distribution of proceeds of the Borrowing of the Term Loan A on the Closing Date, in an amount of up to Thirty-One Million Eight-Hundred Ninety-Four Thousand Nine-Hundred Dollars ($31,894,900), by the Borrower to the owners of its outstanding Equity Interests in accordance with the terms of this Agreement.

"*<u>Collateral</u>*" shall mean the collateral identified in, and at any time covered by, the Collateral Documents.

"*<u>Collateral Agent</u>*" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"*<u>Collateral Documents</u>*" shall mean, collectively, the Security Agreement, the Mortgages, and all other instruments, documents and/or agreements delivered by any Credit Party pursuant to this Agreement or any of the other Credit Documents in order to grant to the Collateral Agent, for the benefit of the holders of the Obligations, a Lien on any real, personal or mixed Property of any Credit Party as security for the Obligations.

"*<u>Combined Statutory Surplus</u>*" shall mean, as of any date of determination, the aggregate Statutory Surplus of all of the Regulated Entities that are *not* Captive Reinsurance Companies, taken together on a combined basis.

"*<u>Commitment Fee</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.10(a</u>).

"*<u>Commitment Percentage</u>*" shall mean, for each Lender and with respect to: (a) any Revolving Loans (or any Borrowing thereof) or any Swingline Loans (or any Borrowing thereof), such Lender's Revolving Commitment Percentage; (b) the Term Loan A (or any Borrowing thereof), such Lender's Term Loan A Commitment Percentage; (c) the Delayed Draw Term Loan (or any Borrowing of an advance thereunder), such Lender's DDTL Commitment Percentage; and (d) any Incremental Term Loan (or any Borrowing thereof or thereunder), such Lender's Incremental Term Loan Commitment Percentage in respect of such Incremental Term Loan.

"*<u>Commitments</u>*" shall mean, collectively, the Revolving Commitments, the Term Loan A Commitments, the DDTL Commitments, and any Incremental Term Loan Commitments.

"*<u>Commodity Exchange Act</u>*" shall mean the Commodity Exchange Act (7 U.S.C. § 1 *et seq*.), as amended.

"*<u>Competitor</u>*" shall mean any competitor of any Credit Party, Subsidiary or other Regulated Entity that is in the same or a similar line of business as any Credit Party, Subsidiary or other Regulated Entity.

"*<u>Compliance Certificate</u>*" shall mean a Compliance Certificate substantially in the form of <u>Exhibit 7.1(c</u>).

------

"*<u>Conforming Changes</u>*" shall mean, with respect to (a) the use and/or administration of, and/or any conventions associated with, SOFR, the SOFR Reference Rate for any applicable tenor and/or any SOFR-Based Rate (for any Interest Period, as applicable), or (b) the use, administration, adoption and/or implementation of, and/or any conventions associated with, any Benchmark Replacement, in each case of the foregoing <u>clauses (a</u>) and (<u>b</u>), any technical, administrative and/or operational change(s) (including, without limitation, any such change(s) to the definition of "*Base Rate*" above, the definition of "*Business Day*" above, the definition of "*Daily Simple SOFR*" below, the definition of "*Interest Period*" below (or any similar or analogous definition, or the addition of an applicable concept of "interest period"), the definition of "*SOFR*" below, the definition of "*SOFR Reference Rate*" below, the definition of "*Term SOFR*" below, the definition of "*U*.*S*. *Government Securities Business Day*" below, the timing and frequency of determining rates and making payments of interest, the timing of delivery of any Funding Notices (or other requests for borrowing of Loans), the timing of delivery of any notices of optional reduction or termination of any Commitment(s), the timing of delivery of any notices of optional or voluntary prepayment of any Loans (or any other notices of prepayment of any Loans), the timing of delivery of any Conversion / Continuation Notices (or other notices of the continuation or conversion of Loans), the applicability and length of lookback periods, the applicability of <u>Section</u> <u>3.1(c</u>), and any other technical, administrative and/or operational matters) that the Administrative Agent determines, in its reasonable discretion, may be appropriate to reflect the adoption and/or implementation of any such rate and/or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent determines, in its reasonable discretion, that (i) the adoption and/or implementation of, or of any portion of, such market practice is *not* administratively feasible for the Administrative Agent, or (ii) no market practice for the administration of any such rate exists, then, in each case of the foregoing <u>clauses (i</u>) and (<u>ii</u>), permit the use and administration thereof by the Administrative Agent in such other manner of administration as the Administrative Agent determines is reasonably necessary in connection with the administration of this Agreement and the other Credit Documents).

"*<u>Connection Income Taxes</u>*" shall mean Other Connection Taxes that are imposed on, or measured by, net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"*<u>Consolidated EBITDA</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, an amount equal to the *sum of*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Consolidated Net Income (*exclusive*, for purposes of clarity, of Regulated Entities) for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the following, in each case, *solely* to the extent deducted in calculating such Consolidated Net Income (and without duplication):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Consolidated Interest Charges for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the provision for federal, state, local and foreign income taxes payable by the Credit Parties and Subsidiaries (other than Regulated Entities) for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) depreciation and amortization expense for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) non-cash stock compensation issued for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all out-of-pocket fees, costs and expenses payable, or otherwise incurred, in connection with the closing of this Agreement and the other Credit Documents; <u>provided</u>, <u>that</u>, such fees, costs and expenses are payable or otherwise incurred *prior* to the date that is three (3) months after the Closing Date; *plus*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the aggregate amount of managing general agency, service company or attorney-in-fact fees that are due and owing, or that have already been paid, by any Regulated Entity, on the one hand, to any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the other hand, pursuant to any managing general agent, service company or attorney-in-fact agreement entered into between any Credit Party or Subsidiary (other than any Regulated Subsidiary) and any Regulated Entity, but which have been waived in accordance with this Agreement by the Credit Party or Subsidiary (other than a Regulated Subsidiary) to whom such fees would have been, or, in the case of any such fees that have already been paid and are subsequently so waived, have been, paid, in each case of the foregoing of this <u>clause (b)(vi</u>), to the extent supported (so long as any such documentation is readily available to, or preparable by, the Credit Parties, Subsidiaries and other Regulated Entities) by documentation provided, and reasonably acceptable, to the Administrative Agent; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) other non-cash charges and non-cash expenses reducing such Consolidated Net Income, including any write-offs or write-downs (but *excluding* any such non-cash charge or non-cash expense to the extent that such non-cash charge or non-cash expense (A) represents an accrual of, or reserve for, cash charges or cash expenses in any future period, or amortization of a prepaid cash expense or cash charge that was paid in a prior period but *not* included in the calculation of Consolidated EBITDA for such prior period, or (B) is an expense or charge related to accounts receivable or other current assets); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all non-cash items increasing such Consolidated Net Income (but *excluding* any items that represent the reversal of an accrual of, or reserve for, anticipated cash charges or cash expenses that reduced Consolidated EBITDA in any prior period).

"*<u>Consolidated Fixed Charge Coverage Ratio</u>*" shall mean, as of any date of determination, the ratio of:

(a)Consolidated EBITDA; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Consolidated Unfinanced Capital Expenditures; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Consolidated Taxes; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate amount of Restricted Payments paid in cash by the Credit Parties and Subsidiaries (other than Regulated Entities) to Persons other than Credit Parties (but *excluding* the Closing Date Distribution); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the aggregate amount, determined on a cost basis, of Investments (including, without limitation, Investments consisting of the forgiveness of fees as described in the last sentence of the definition of "*Investments*" below) made by any Credit Party in any Person that is *not* itself a Credit Party (including, for purposes of clarity, in any Regulated Entity), but *excluding* any such Investments to the extent financed with the proceeds of Loans (including Revolving Loans) or other long-term, non-revolving Indebtedness, net of the amount (if any) of Returned Reinsurance Investments received by the Credit Parties;

all as determined in accordance with GAAP or SAP (as applicable); to

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Consolidated Fixed Charges,

in each case of the foregoing, measured on a consolidated basis for the Credit Parties and Subsidiaries (other than Regulated Entities) for the Trailing Period most recently ended as of such date; <u>provided</u>, <u>that</u>, notwithstanding anything to the contrary in the foregoing or elsewhere in this Agreement or any other Credit Document, the calculation of Consolidated Fixed Charges, for purposes of the calculation of the Consolidated Fixed Charge Coverage Ratio measured for the Trailing Period ending:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) March 31, 2025, shall be deemed to equal the *product of*: (A) actual Consolidated Fixed Charges paid in cash, measured for the period of one (1) Fiscal Quarter then ended; *multiplied by* (B) four (4);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) June 30, 2025, shall be deemed to equal the *product of*: (A) actual Consolidated Fixed Charges paid in cash, measured for the period consisting of the two (2) consecutive full Fiscal Quarters then ended; *multiplied by* (B) two (2); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) September 30, 2025, shall be deemed to equal the *product of*: (A) actual Consolidated Fixed Charges paid in cash, measured for the period consisting of the three (3) consecutive full Fiscal Quarters then ended; *multiplied by* (B) four thirds (4/3).

"*<u>Consolidated Fixed Charges</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, an amount equal to the *sum of*: (a) Consolidated Interest Charges for such period; *plus* (b) Consolidated Scheduled Funded Debt Payments for such period.

"*<u>Consolidated Funded Debt</u>*" shall mean all Funded Debt of the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis determined in accordance with GAAP; <u>provided</u>, <u>that</u>, for the avoidance of doubt, "*Consolidated Funded Debt*" shall include any intercompany Indebtedness owing by any Credit Party or Subsidiary (other than a Regulated Entity) to any Regulated Entity.

"*<u>Consolidated Interest Charges</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, an amount equal to the *sum of*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all interest, premium payments, debt discount, fees, charges, and related expenses in connection with Funded Debt of a type described in clauses (a) or (b) of the definition of "*Funded Debt*" below (other than, for purposes of clarity, payments in respect of Earn Out Obligations), in each case, to the extent treated as interest in accordance with GAAP; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the portion of rent expense with respect to such period under Capital Leases that is treated as interest in accordance with GAAP; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the implied interest component of Synthetic Leases with respect to such period;

<u>provided</u>, <u>that</u>, for the avoidance of doubt, "*Consolidated Interest Charges*" shall include all interest, premium, payments, debt discount, fees, charges and related expenses in connection with any intercompany Indebtedness owing by any Credit Party or Subsidiary (other than a Regulated Entity) to any Regulated Entity.

------

"*<u>Consolidated Leverage Ratio</u>*" shall mean, as of any date of determination, the ratio of: (a) Consolidated Funded Debt as of such date; to (b) Consolidated EBITDA, measured for the most recently ended Trailing Period.

"*<u>Consolidated Net Income</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (including or excluding Regulated Entities, as so specified textually in the relevant instance of calculation) on a consolidated basis, the net income of the Credit Parties and Subsidiaries (but *excluding*, in any event, extraordinary gains) for such period, as determined in accordance with GAAP; <u>provided</u>, <u>that</u>, for purposes of any determination of Consolidated Net Income that is exclusive of Regulated Entities, any dividends or other distributions paid by a Regulated Entity to another Credit Party or Subsidiary during the relevant period of measurement shall be disregarded and shall *not*, in any event, be considered net income of any Credit Party or Subsidiary (other than such Regulated Entity) for such period.

"*<u>Consolidated Scheduled Funded Debt Payments</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis, the *sum of* all scheduled payments of principal on Consolidated Funded Debt, as determined in accordance with GAAP. For purposes of this definition, "*<u>scheduled payments of principal</u>*" shall: (a) be determined without giving effect to any reduction of such scheduled payments resulting from the application of any voluntary or mandatory prepayments made during the applicable period; (b) be deemed to include payments with respect to the Attributable Principal Amount in respect of Capital Leases, Securitization Transactions, Sale and Leaseback Transactions and Synthetic Leases; and (c) *not* include any voluntary prepayments or mandatory prepayments required pursuant to <u>Section</u> <u>2.11</u>.

"*<u>Consolidated Taxes</u>*" shall mean, for any period of measurement, the aggregate amount of all Taxes paid in cash, as determined in accordance with GAAP, by the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis; <u>provided</u>, <u>that</u>, "*Consolidated Taxes*" shall include all Taxes paid in cash by the Credit Parties and Subsidiaries (other than Regulated Entities) on account of, on behalf of, or attributable to, any Regulated Entity to the extent that such Regulated Entity has *not* made Restricted Payments to the party paying such Taxes pursuant to <u>Section</u> <u>8.4(a</u>) within two (2) months of such tax liabilities becoming due and payable, or actually being paid in cash, by the paying party.

"*<u>Consolidated Unfinanced Capital Expenditures</u>*" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, the aggregate amount actually paid in cash by the Credit Parties and Subsidiaries (other than Regulated Entities) on account of Capital Expenditures, but *excluding* Capital Expenditures to the extent financed with the proceeds of Loans (including Revolving Loans) or other long-term, non-revolving Indebtedness.

"*<u>Contractual Obligation</u>*" shall mean, as applied to any Person, any provision of any Security issued by that Person or of any indenture, mortgage, deed of trust, contract, undertaking, agreement or other instrument to which that Person is a party or by which it, or any of its Properties, is bound, or to which it, or any of its Properties, is otherwise subject.

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

------

"*<u>Controlled Account Agreement</u>*" shall mean any tri-party agreement by and among a Credit Party, the Collateral Agent, and a depositary bank or securities or commodities intermediary (as applicable) at which such Credit Party maintains one (1) or more deposit, disbursement, lockbox,

securities and/or commodities accounts granting "control" (as defined in the UCC) to the Collateral Agent with respect to such account(s), in each case, in form and substance reasonably satisfactory to the Collateral Agent.

"*<u>Conversion</u>* <u>/</u> *<u>Continuation Date</u>*" shall mean the effective date of a continuation or conversion, as the case may be, as set forth in the applicable Conversion / Continuation Notice.

"*<u>Conversion</u>* <u>/</u> *<u>Continuation Notice</u>*" shall mean a Conversion / Continuation Notice substantially in the form of <u>Exhibit 2.8</u>.

"*<u>Covered Entity</u>*" shall mean any of the following: (a) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §–252.82(b); (b) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §–47.3(b); and (c) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §–382.2(b).

"*<u>Covered Party</u>*" shall mean have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

"*<u>Credit Date</u>*" shall mean, with respect to any Credit Extension, the date on which such Credit Extension is made.

"*<u>Credit Document</u>*" shall mean any of this Agreement, each Note, each Issuer Document, the Collateral Documents, any Guarantor Joinder Agreement, the Fee Letter, any Auto Borrow Agreement, any Incremental Facility Agreement, any documents or certificates executed by any Credit Party in favor of the Issuing Bank relating to Letters of Credit, and, to the extent evidencing or securing the Obligations, all other documents, instruments or agreements executed and delivered by any Credit Party for the benefit of the Administrative Agent, the Collateral Agent, the Issuing Bank or any Lender in connection herewith or therewith, and including, for the avoidance of doubt, any Guarantor Joinder Agreement (but specifically *excluding* any Secured Swap Agreements and any Secured Treasury Management Agreements).

"*<u>Credit Extension</u>*" shall mean the making of a Loan or the issuing or extending of a Letter of Credit.

"*<u>Credit Parties</u>*" shall mean, collectively, the Borrower and each Guarantor.

"*<u>Cure Period</u>*" shall have the meaning specified for such term in <u>Section</u> <u>9.4(a</u>).

"*<u>Cure Proceeds</u>*" shall have the meaning specified for such term in <u>Section</u> <u>9.4(a</u>).

"*<u>Daily Simple SOFR</u>*" shall mean, for any date of determination, SOFR, with the conventions for such rate (which shall include a lookback) being established by the Administrative Agent in accordance with the conventions for such rate selected or recommended by the Relevant Governmental Body for determining "*Daily Simple SOFR*" for business loans; <u>provided</u>, <u>that</u>, (a) if the Administrative Agent decides that any such convention is *not* administratively feasible for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion, and (b) if, at any time, Daily Simple SOFR (determined in accordance with such convention(s)) is *less than* the Floor, then Daily Simple SOFR shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents.

"*<u>DDTL Amortization Payment Amount</u>*" shall mean, at any time with respect to each advance under the Delayed Draw Term Loan during the DDTL Availability Period (to the extent made), an amount equal to the *quotient* of: (a) the *product of* (i) the aggregate original principal amount of such advance under the Delayed Draw Term Loan, *multiplied by* (ii) ten percent (10.0%); *divided by* (b) four (4).

------

"*<u>DDTL Availability Period</u>*" shall mean the period from, but *excluding*, the Closing Date to, but *excluding*, the DDTL Commitment Termination Date.

"*<u>DDTL Commitment</u>*" shall mean, with respect to each Lender, the obligation of such Lender to advance its respective portion of principal under the Delayed Draw Term Loan, in up to five (5) separate advances during the DDTL Availability Period, in each case pursuant to <u>Section</u> <u>2.1(c</u>), in an aggregate original principal amount advanced by such Lender during the DDTL Availability Period (for all such advances, taken together) *not to exceed* the applicable amount set forth with respect to such Lender as such Lender's "*DDTL Commitment*" on <u>Appendix A</u>, subject to any increase(s), adjustment(s) and/or reduction(s) pursuant to the terms and conditions of this Agreement.

"*<u>DDTL Commitment Percentage</u>*" shall mean, with respect to each Lender at any time, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the *sum of* (i) the amount of such Lender's respective DDTL Commitment (if any) in effect at such time, *plus* (ii) the aggregate principal balance of the portion of the Delayed Draw Term Loan advanced by such Lender that is outstanding at such time; and (b) the *denominator* of which is the *sum of* (i) the Aggregate DDTL Commitment Amount in effect at such time, *plus* (ii) the aggregate outstanding principal balance of the Delayed Draw Term Loan at such time. The DDTL Commitment Percentages of each Lender as of the Third Amendment Effective Date are set forth on <u>Appendix A</u>.

"*<u>DDTL Commitment Termination Date</u>*" shall mean the *earliest* to occur of: (a) the first (1<sup>st</sup>) Business Day after the date that is the second (2<sup>nd</sup>) anniversary of the Closing Date; (b) the date on which five (5) separate advances under the Delayed Draw Term Loan shall have been made in accordance with this Agreement; (c) the date on which the Borrower shall have provided written notice to the Administrative Agent of its election to terminate the Aggregate DDTL Commitments in accordance with <u>Section</u> <u>2.11(b</u>); and (d) the date on which the Aggregate DDTL Commitments shall have been terminated, and/or all amounts outstanding under this Agreement shall have been declared, or automatically have become, due and payable, in each case of the foregoing of this <u>clause (d</u>), pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise).

"*<u>Debt Transaction</u>*" shall mean, with respect to any Credit Party, any Subsidiary or any other Regulated Entity, any sale, issuance, placement, assumption or guaranty of Funded Debt, whether or not evidenced by a promissory note or other written evidence of Indebtedness, except for Funded Debt permitted to be incurred and remain outstanding after the Closing Date pursuant to <u>Section</u> <u>8.1</u>.

"*<u>Debtor Relief Laws</u>*" shall mean the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect.

"*<u>Default</u>*" shall mean a condition or event that, after notice or lapse of time or both, would constitute an Event of Default.

"*<u>Default Rate</u>*" shall mean an interest rate equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to Obligations (including, for purposes of clarity, Loans bearing interest at the Base Rate determined pursuant to clause (c) of the definition of "*Base Rate*" above) other than SOFR Loans and the Letter of Credit Fee, the Base Rate *plus* the Applicable Margin, if any, applicable to such Obligations *plus* two percent (2.0%) per annum;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to SOFR Loans, Term SOFR *plus* the Applicable Margin, if any, applicable to SOFR Loans *plus* two percent (2.0%) per annum; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to the Letter of Credit Fee, the Applicable Margin for the Letter of Credit Fee *plus* two percent (2.0%) per annum.

"*<u>Default Right</u>*" shall have the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§–252.81, 47.2 or 382.1, as applicable.

"*<u>Defaulting Lender</u>*" shall mean, subject to <u>Section</u> <u>2.16(b</u>), any Lender that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has failed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fund all, or any portion, of its Loans within two (2) Business Days of the date such Loans were required to be funded hereunder, unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender's determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has *not* been satisfied; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) pay to the Administrative Agent, the Collateral Agent, the Issuing Bank, the Swingline Lender, or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in any Letters of Credit or Swingline Loans) within two (2) Business Days of the date when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has notified the Borrower, the Administrative Agent, the Issuing Bank, or the Swingline Lender in writing that it does *not* intend to comply with its funding obligations hereunder, or has made a public statement to that effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) has failed, within three (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (<u>provided</u>, <u>that</u>, such Lender shall cease to be a Defaulting Lender pursuant to this <u>clause (c</u>) upon receipt of such written confirmation by the Administrative Agent and the Borrower); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) has, or has a direct or indirect parent company that has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) become the subject of a proceeding under any Debtor Relief Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) become the subject of a Bail-In Action;

------

<u>provided</u>, <u>that</u>, a Lender shall *not* be a Defaulting Lender *solely* by virtue of the ownership or acquisition of any equity interest in that Lender, or any direct or indirect parent company thereof, by a Governmental Authority, so long as such ownership interest does *not* result in or provide such Lender with immunity from the jurisdiction of courts within the United States, or from the enforcement of judgments or writs of attachment on its assets, or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of <u>clauses (a</u>) through (<u>d</u>) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to <u>Section</u> <u>2.16(b</u>)) upon delivery of written notice of such determination to the Borrower, the Issuing Bank, the Swingline Lender and each Lender.

"*<u>Delayed Draw Term Loan</u>*" shall have the meaning provided for such term in <u>Section</u> <u>2.1(c</u>). The Delayed Draw Term Loan may also be referred to in this Agreement and the other Credit Documents as the "*<u>DDTL</u>*". As of the Third Amendment Effective Date, the aggregate outstanding principal balance under the Delayed Draw Term Loan is Twenty-Five Million Dollars ($25,000,000).

"*<u>Disqualified Equity Interests</u>*" shall mean, with respect to any Person, any Equity Interests in such Person that, by their terms (or by the terms of any security or other Equity Interests into which they are convertible, or for which they are exchangeable), or upon the happening of any event or condition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) matures (but *excluding* any maturity as a result of an optional redemption by the issuer thereof the exercise of which, by the terms of such Equity Interests, is contingent upon such redemption *not* being prohibited by this Agreement or any of the other Credit Documents) or is mandatorily redeemable (other than (i) *solely* in exchange for Equity Interests that are *not* otherwise Disqualified Equity Interests, or (ii) as a result of a redemption that, by the terms of such Equity Interests, is contingent upon such redemption *not* being prohibited by this Agreement or any of the other Credit Documents), pursuant to a sinking fund obligation or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is redeemable at the option of the holder thereof (other than (i) *solely* in exchange for Equity Interests that are *not* otherwise Disqualified Equity Interests, or (ii) as a result of a redemption that, by the terms of such Equity Interests, is contingent upon such redemption *not* being prohibited by this Agreement or any of the other Credit Documents), in whole or in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) provides for the scheduled payment of dividends in cash; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is or becomes convertible into, or exchangeable for, Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests;

in each case of the foregoing <u>clauses (a</u>) through (<u>d</u>), on or prior to the date that is one-hundred eighty one (181) calendar days after the Latest Maturity Date; <u>provided</u>, tha, (I) to the extent that any such Equity Interests are issued pursuant to a Benefit Plan for the benefit of any Credit Party or Subsidiary to any employees of any Credit Party or Subsidiary, such Equity Interests shall *not* constitute Disqualified Equity Interests *solely* as a result of such Equity Interests being required to be repurchased by a Credit Party or Subsidiary in order to satisfy requirements under applicable Law, and (II) in the case of the foregoing <u>clauses (a</u>) and (<u>b</u>), if any Equity Interests constitute Disqualified Equity Interests as a result of the occurrence of a Change in Control, the consummation of an Asset Sale or other disposition, or the consummation of any other Specified Transaction or other transaction, then such Equity Interests shall *not* constitute Disqualified Equity Interests for purposes of this Agreement and the other Credit Documents so long as any rights of the holder(s) thereof upon the occurrence of such a Change in Control, the consummation of such an Asset Sale or other disposition, or the consummation of such other Specified Transaction(s) or other transaction(s) are, in any such case, subject to the prior occurrence of the Payment in Full of all Obligations.

------

"*<u>Disqualified Institution</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) those Competitors and other Persons identified on a list provided by the Borrower to the Administrative Agent and made available to the Lenders on the Closing Date (the "*<u>Disqualified Institution List</u>*") (as such Disqualified Institution List may be supplemented from time to time by the Borrower pursuant to <u>clause (c</u>) below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Person that is reasonably identifiable (based *solely* to the extent such legal entity has the name of a Person set forth on the Disqualified Institution List in its legal name) as an Affiliate of any Person set forth on the Disqualified Institution List; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other Competitor identified by legal name in writing to the Administrative Agent at any time after the Closing Date (other than during the continuance of an Event of Default) (it being understood and agreed that the Borrower shall be required to provide a fully updated Disqualified Institution List to the Administrative Agent in order to supplement such list after the Closing Date), which designation shall become effective one (1) day after the date that such written designation to the Administrative Agent is made available to the Lenders on IntraLinks, Syndtrak, Debtdomain or a similar electronic transmission system, but which shall *not* apply retroactively to disqualify any Persons that have previously acquired an assignment or participation interest in the Loans and/or Commitments.

Notwithstanding anything to the contrary in the foregoing, a Person that would be a Disqualified Institution as a result of being an Affiliate of a Competitor pursuant to <u>clause (b</u>) above shall *not* constitute a Disqualified Institution if such Person is a financial institution, bona fide debt fund or investment vehicle that is engaged in the business of making, purchasing, holding or otherwise investing in commercial loans, notes, bonds and similar extensions of credit or securities in the ordinary course of business to unaffiliated third parties and no Disqualified Institution makes investment decisions for such Person.

"*<u>Disqualified Institution List</u>*" shall have the meaning set forth in the definition of "*Disqualified Institution*" above.

"*<u>Dollars</u>*" and the sign "<u>$</u>" shall mean the lawful money of the United States.

"*<u>Domestic Subsidiary</u>*" shall mean any Subsidiary that is incorporated or formed (as the case may be) under the Applicable Laws of the United States or of any state, district or other political subdivision thereof, other than any such Subsidiary of the type(s) described in clauses (b) or (c) of the definition of "*Foreign Subsidiary*" below.

"*<u>Earn Out Obligations</u>*" shall mean, with respect to any Acquisition or other Investment permitted under this Agreement consisting of the purchase of Equity Interests, all obligations of any Credit Party, any Subsidiary or any other Regulated Entity to make earn out or other similar contingent payments that are payable based on the achievement of specified financial results over time (but *excluding*, for the avoidance of doubt, payments in respect of purchase price adjustments, working capital adjustments and non-competition and/or consulting agreements) pursuant to the definitive documentation relating to such Acquisition or other Investment.

------

"*<u>EEA Financial Institution</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any credit institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA Resolution Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any entity established in an EEA Member Country that is a parent of an institution described in <u>clause (a</u>) above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in <u>clauses (a</u>) or (<u>b</u>) above and is subject to consolidated supervision with its parent.

"*<u>EEA Member Country</u>*" shall mean any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"*<u>EEA Resolution Authority</u>*" shall mean any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"*<u>Eligible Assignee</u>*" shall mean any Person that meets the requirements to be an assignee under <u>Section</u> <u>11.5(b</u>), subject to any consents and representations, if any as may be required therein.

"*<u>Environmental Claim</u>*" shall mean any known investigation, written notice, notice of violation, written claim, action, suit, proceeding, written demand, abatement order or other written order or directive (conditional or otherwise), by any Person arising:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) pursuant to, or in connection with, any actual or alleged violation of any Environmental Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in connection with any actual or alleged damage, injury, threat or harm to human health, safety, natural resources or the environment.

"*<u>Environmental Laws</u>*" shall mean any and all current or future federal or state (or any subdivision of either of them), statutes, ordinances, orders, rules, regulations, judgments, Governmental Authorizations, or any other written requirements of Governmental Authorities relating to: (a) any Hazardous Materials Activity; (b) the generation, use, storage, transportation or disposal of Hazardous Materials; or (c) protection of human health and the environment from pollution, in any manner applicable to any Credit Party, any Subsidiary, any Regulated Entity, or any of the respective Facilities of any of the foregoing.

"*<u>Environmental Liability</u>*" shall mean any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of any Credit Party, any Subsidiary or any other Regulated Entity directly or indirectly resulting from or based upon: (a) violation of any Environmental Law; (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials; (c) exposure to any Hazardous Materials; (d) the Release, or threatened Release, of any Hazardous Materials into the environment; or (e) any contract, agreement or other consensual arrangement pursuant to which any Credit Party, any Subsidiary or any other Regulated Entity assumed liability with respect to any of the foregoing.

------

"*<u>Equity Interests</u>*" shall mean, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.

"*<u>Equity Transaction</u>*" shall mean, with respect to any Credit Party, any Subsidiary or any other Regulated Entity, any issuance or sale by any such Person of shares of its Equity Interests, other than an issuance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the Borrower or any of its Wholly Owned Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in connection with a conversion of debt securities to equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in connection with the exercise by a present or former employee, officer or director under a stock incentive plan, stock option plan or other equity-based compensation plan or arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) that occurred *prior* to the Closing Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in connection with the consummation of any Permitted Acquisition or the making of any Capital Expenditures permitted under this Agreement.

"*<u>ERISA</u>*" shall mean the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

"*<u>ERISA Affiliate</u>*" shall mean, as applied to any Person: (a) any corporation which is a member of a controlled group of corporations within the meaning of Section 414(b) of the Internal Revenue Code of which that Person is a member; (b) any trade or business (whether or not incorporated) which is a member of a group of trades or businesses under common control within the meaning of Section 414(c) of the Internal Revenue Code of which that Person is a member; and (c) any member of an affiliated service group within the meaning of Section 414(m) or (o) of the Internal Revenue Code of which that Person, any corporation described in <u>clause (a</u>) above or any trade or business described in <u>clause (b</u>) above is a member.

"*<u>ERISA Event</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a "reportable event" within the meaning of Section 4043 of ERISA and the regulations issued thereunder with respect to any Pension Plan (but *excluding* those for which notice to the PBGC has been waived by regulation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the failure to meet the minimum funding standard of Section 412 of the Internal Revenue Code with respect to any Pension Plan (whether or not waived in accordance with Section 412(c) of the Internal Revenue Code), the failure to make by its due date any minimum required contribution or any required installment under Section 430(j) of the Internal Revenue Code with respect to any Pension Plan or the failure to make by its due date any required contribution to a Multiemployer Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the provision by the administrator of any Pension Plan pursuant to Section 4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress termination described in Section 4041(c) of ERISA;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the withdrawal from any Pension Plan with two (2) or more contributing sponsors or the termination of any such Pension Plan, in either case resulting in material liability pursuant to Section 4063 or 4064 of ERISA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the institution by the PBGC of proceedings to terminate any Pension Plan, or the occurrence of any event or condition reasonably likely to constitute grounds under ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the imposition of liability pursuant to Section 4062(a) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA, each case reasonably likely to result in material liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the withdrawal of any Credit Party, any Subsidiary, any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, in a complete or partial withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if such withdrawal is reasonably likely to result in material liability, or the receipt by any Credit Party, any Subsidiary, any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, of notice from any Multiemployer Plan that it is in insolvency pursuant to Section 4241 or 4245 of ERISA, or that it is in "critical" or "endangered" status within the meaning of Section 305 of ERISA, or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA, if such insolvency or termination is reasonably likely to result in material liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the imposition of fines, penalties, taxes or related charges under Chapter 43 of the Internal Revenue Code, Section 502(c), (i) or (l), or Section 4071 of ERISA in respect of any Pension Plan if such fines, penalties, taxes or related charges are reasonably likely to result in material liability to the Credit Parties, the Subsidiaries, the other Regulated Entities, and/or their respective ERISA Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) receipt from the Internal Revenue Service of a final written determination of the failure of any Pension Plan intended to be qualified under Section 401(a) of the Internal Revenue Code to qualify under Section 401(a) of the Internal Revenue Code, or the failure of any trust forming part of any such plan to qualify for exemption from taxation under Section 501(a) of the Internal Revenue Code; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the imposition of a lien pursuant to Section 430(k) of the Internal Revenue Code or pursuant to Section 303(k) or 4068 of ERISA.

"*<u>Erroneous Payment</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(a</u>).

"*<u>Erroneous Payment Deficiency Assignment</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>Erroneous Payment Impacted Class</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>Erroneous Payment Return Deficiency</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>Erroneous Payment Subrogation Rights</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"*<u>EU Bail</u>*<u>-</u>*<u>In Legislation Schedule</u>*" shall mean the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

------

"*<u>Event of Default</u>*" shall mean each of the conditions or events set forth in <u>Section</u> <u>9.1</u>.

"*<u>Exchange Act</u>*" shall mean the Securities Exchange Act of 1934, as amended from time to time, and any successor statute.

"*<u>Excluded Accounts</u>*" shall mean: (a) deposit and/or securities accounts used *solely* for the payment of Taxes, the balance of which consists exclusively of (i) withheld income taxes, federal, state or local employment taxes and sales taxes, in such amounts as are required, in the reasonable judgment of the Borrower, to be paid to the IRS or state or local Governmental Authorities, or (ii) amounts required to be paid over to an employee benefit plan pursuant to DOL Reg. §–2510.3–102 on behalf of, or for the benefit of, employees of one (1) or more Credit Parties; (b) all accounts used *solely* for payroll, accounts maintained *solely* in trust for the benefit of third parties and fiduciary purposes (including fiduciary tax accounts), escrow and trust accounts, zero balance or swept accounts, and healthcare and other employee benefit accounts (including 401(k) accounts and pension fund accounts), in each case of this <u>clause (b</u>), so long as such account is used *solely* for such purpose; (c) any deposit and/or securities account maintained in a jurisdiction outside of the United States or owned by a Foreign Subsidiary; and (d) accounts the balance of which consists exclusively of amounts to be paid to employees in the ordinary course of business.

"*<u>Excluded Property</u>*" shall mean, with respect to the Borrower and each other Credit Party, including any Person that becomes a Credit Party after the Closing Date as contemplated by <u>Section</u> <u>7.14</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Excluded Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Real Estate Asset owned in fee or leased by a Credit Party that is located outside of the United States, or any Real Estate Asset leased by a Credit Party that is located in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Real Estate Asset owned in fee by a Credit Party that is located in the United States having a fair market value *not* in *excess* of One Million Dollars ($1,000,000) (as reasonably determined by the Borrower on the Closing Date or on the date of later purchase of such Real Estate Asset, as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any personal Property (including, without limitation, motor vehicles) in respect of which perfection of a Lien is *not*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) governed by the UCC; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) effected by appropriate evidence of the Lien being filed in either the United States Copyright Office or the United States Patent and Trademark Office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Equity Interests in any direct Foreign Subsidiary or any Regulated Entity, to the extent *not* required to be pledged to secure the Obligations pursuant to <u>Section</u> <u>7.12(a</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Property which, subject to the terms of <u>Section</u> <u>8.3</u>, is subject to a Lien of the type described in <u>Section</u> <u>8.2(m</u>) pursuant to documents which prohibit the applicable Credit Party from granting any other Liens in such Property;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any Property to the extent that the grant of a security interest therein would violate Applicable Laws, require a consent *not* obtained of any Governmental Authority, or constitute a breach of or default under, or result in the termination of or require a consent *not* obtained under, any contract, lease, license or other agreement evidencing or giving rise to such Property, or result in the invalidation thereof or provide any party thereto with a right of termination (other than to the extent that any such term would be rendered ineffective pursuant to Section 9–406, 9–407, 9–408 or 9–409 of the applicable UCC or any other Applicable Law or principles of equity);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any lease, license, certificate, permit, agreement or other authorization issued by any Governmental Authority, or any Properties subject to any such lease, license, certificate, permit, agreement or other authorization, in each case of the foregoing, in existence on the Closing Date or upon the acquisition of the relevant Subsidiary party thereto (other than any such lease, license, certificate, permit, agreement or other authorization entered into in contemplation of this Agreement in order that any Property would constitute "*Excluded Property*" by operation of this <u>clause (h</u>)), *solely* if, and to the extent that, the grant of a security interest therein would: (i) violate or invalidate such lease, license, certificate, permit, agreement or other authorization (in each case, only if such violation or invalidation is *not* rendered ineffective pursuant to Section 9– 406, 9–407, 9–408 or 9–409 of the applicable UCC or any other Applicable Law or principles of equity); (ii) create a right of termination in favor of any party thereto other than any Credit Party (or an Affiliate thereof); or (iii) otherwise require the consent of any Person that is *not* a Credit Party (or an Affiliate thereof), unless such consent has been obtained (<u>provided</u>, <u>that</u>, the Credit Parties shall have no obligation or responsibility to obtain such consent);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Margin Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any intent-to-use trademark application prior to the filing of a "Statement of Use" or "Amendment to Allege Use" with respect thereto, *solely* if, and to the extent, if any, that, and *solely* during the period, if any, during which, the grant or enforcement of a security interest therein would impair the validity or enforceability of such intent-to-use trademark application under Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any ownership interest of such Credit Party in the Property of, and/or any Equity Interests in, any joint venture entity and/or any Subsidiary that is *not* Wholly Owned Subsidiary, *solely* to the extent that (i) a security interest therein is *not* permitted to be granted by such Credit Party pursuant to the terms of the Organizational Documents of such joint venture entity or non-Wholly Owned Subsidiary (in each case, as in effect on the Closing Date or on such later date of initial acquisition by such Credit Party of Equity Interests in such joint venture entity or non-Wholly Owned Subsidiary), or (ii) the granting of a security interest therein by such Credit Party would require, pursuant to such Organizational Documents or the terms of other Contractual Obligations of such Credit Party (in each case, as in effect on the Closing Date or on such later date of initial acquisition by such Credit Party of Equity Interests in such joint venture entity or non-Wholly Owned Subsidiary), the consent of a Person that is *not* a Credit Party (or an Affiliate thereof) (in each case, after giving effect to Section 9–406, 9–407, 9–408 or 9–409 of the applicable UCC or any other Applicable Law or principle of equity, the assignment of which is expressly deemed to be effective under the UCC or other Applicable Law or principle of equity notwithstanding such provision), unless such consent has been obtained (<u>provided</u>, <u>that</u>, the Credit Parties shall have no obligation or responsibility to obtain such consent); <u>provided</u>, <u>that</u>, no such Organizational Documents or Contractual Obligations were formed, created, assumed or entered into (as applicable) with the intention of causing such Property to constitute "*Excluded Property*" by operation of this <u>clause (k</u>); 

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) any Property of any Credit Party to the extent that the costs, burdens (including tax and/or regulatory burdens, if applicable), difficulty or consequence of obtaining a security interest therein or perfection thereof *exceeds*, in the reasonable determination and agreement in writing of the Collateral Agent and the Borrower, the benefit to the holders of the Obligations afforded thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) proceeds and products of any and all of the foregoing excluded Property described in <u>clauses (a</u>) through (<u>l</u>) above only to the extent such proceeds and products would constitute Property or assets of the type described in <u>clauses (a</u>) through (<u>l</u>) above;

<u>provided</u>, <u>that</u>, the security interest granted to the Collateral Agent under the Security Agreement or any other Credit Document shall attach immediately to any asset of any Obligor (as such term is defined in the Security Agreement) at such time as such asset ceases to meet any of the criteria for "*Excluded Property*" described in any of the foregoing <u>clauses (a</u>) through (<u>m</u>) above.

"*<u>Excluded Swap Obligation</u>*" shall mean, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all, or a portion, of the Guaranty of such Guarantor of, or the grant under a Credit Document by such Guarantor of a security interest to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act (or the application or official interpretation thereof) by virtue of such Guarantor's failure for any reason to constitute an "eligible contract participant" as defined in the Commodity Exchange Act (determined after giving effect to <u>Section</u> <u>4.8</u> hereof and any and all guarantees of such Guarantor's Swap Obligations by other Credit Parties) at the time the Guaranty of such Guarantor, or grant by such Guarantor of a security interest, becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a Master Agreement governing more than one Swap Agreement, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to Swap Agreements for which such Guaranty or security interest becomes illegal.

"*<u>Excluded Subsidiary</u>*" shall mean, collectively, each Subsidiary of the Borrower (other than, in any event, any Subsidiary that was, at any time *prior* to the relevant date of determination, a Guarantor and/or an Obligor (as such term is defined in the Security Agreement)):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prohibited by Applicable Laws from providing a Guarantee of the Obligations and/or granting a Lien in favor of the Collateral Agent, for the benefit of the holders of the Obligations, in substantially all of its Property (other than any Excluded Property);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a Regulated Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a Foreign Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) an Immaterial Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent that the Administrative Agent, the Collateral Agent and the Borrower mutually determine and agree in writing that the costs and/or burden (including tax and/or regulatory burdens, if applicable) of obtaining a Guarantee by such Subsidiary of the Obligations would outweigh the benefit to the holders of the Obligations of obtaining such Guarantee.

------

"*<u>Excluded Taxes</u>*" shall mean any of the following Taxes imposed on, or with respect to, a Recipient or required to be withheld or deducted from a payment to a Recipient:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Taxes imposed on, or measured by, net income (however denominated), profits, or overall gross income or receipts, franchise or similar Taxes, and branch profits Taxes, in each case,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that are Other Connection Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to, or for the account of, such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under <u>Section</u> <u>2.17</u>), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender changes its lending office,

except, in each case, to the extent that, pursuant to <u>Section</u> <u>3.3</u>, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Taxes attributable to such Recipient's failure to comply with <u>Section</u> <u>3.3(f</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any U.S. federal withholding Taxes imposed under FATCA.

"*<u>Facility</u>*" shall mean any real property including all buildings, fixtures or other improvements located on such real property now, hereafter or heretofore owned, leased, operated or used by any Credit Party, any Subsidiary or any other Regulated Entity, or any of their respective predecessors.

"*<u>FATCA</u>*" shall mean Sections 1471 through 1474 of the Internal Revenue Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and *not* materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code.

"*<u>Federal Funds Rate</u>*" shall mean, for any day, the rate per annum (expressed, as a decimal, rounded upwards, if necessary, to the next higher one one-hundredth of one percent (0.01%)) equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the FRBNY on the Business Day next succeeding such day; <u>provided</u>, <u>that</u>, (a) if such day is *not* a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate charged to Regions Bank or any other Lender selected by the Administrative Agent on such day on such transactions as determined by the Administrative Agent.

"*<u>Federal Reserve Board</u>*" shall mean the Board of Governors of the Federal Reserve System (or any successor).

"*<u>Fee Letter</u>*" shall mean that certain fee letter agreement, dated as of September 19, 2024, by and among the Borrower, Regions Bank and Regions Capital Markets, a division of Regions Bank.

------

"*<u>FHLB</u>*" shall mean any federal home loan bank.

"*<u>Financial Covenants</u>*" shall mean, collectively, each of the financial covenants set forth in <u>Section</u> <u>8.8(a</u>), <u>Section</u> <u>8.8(b</u>) and <u>Section</u> <u>8.8(c</u>).

"*<u>Financial Officer Certification</u>*" shall mean, with respect to the financial statements for which such certification is required, the certification of the chief financial officer of the Borrower that such financial statements fairly present, in all material respects, the financial condition of the Credit Parties and Subsidiaries (including or excluding Regulated Entities, as so specified textually in the relevant instance of calculation) as of the dates indicated and the results of their operations and their cash flows for the periods indicated, subject to changes resulting from audit and normal year-end adjustments.

"*<u>First Amendment</u>*" shall mean that certain First Amendment to Credit Agreement, dated as of the First Amendment Effective Date, by and among the Credit Parties, the Lenders party thereto (including the Swingline Lender), the Issuing Bank, the Collateral Agent and the Administrative Agent.

"*<u>First Amendment Effective Date</u>*" shall mean April 11, 2025.

"*<u>Fiscal Quarter</u>*" shall mean a fiscal quarter of any Fiscal Year.

"*<u>Fiscal Year</u>*" shall mean the fiscal year of the Borrower ending on December 31 of each calendar year.

"*<u>Flood Hazard Property</u>*" shall mean any Real Estate Asset subject to a mortgage or deed of trust in favor of the Collateral Agent, for the benefit of the holders of the Obligations, and located in an area designated by the Federal Emergency Management Agency as having special flood or mud slide hazards.

"*<u>Floor</u>*" shall mean a rate of interest equal to zero percent (0.00%) per annum (subject to the proviso to the last sentence of <u>Section</u> <u>3.1(g)(v</u>)).

"*<u>Foreign Lender</u>*" shall mean a Lender that is *not* a U.S. Person.

"*<u>Foreign Subsidiary</u>*" shall mean any Subsidiary that: (a) is *not* a Domestic Subsidiary; (b) is a FSHCO; or (c) is a direct or indirect Subsidiary of a CFC (other than any such Subsidiary treated as a C-corporation for U.S. federal income tax purposes).

"*<u>FRBNY</u>*" shall mean the Federal Reserve Bank of New York (or any successor).

"*<u>Fronting Exposure</u>*" shall mean, at any time there is a Defaulting Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to the Issuing Bank, such Defaulting Lender's Revolving Commitment Percentage of the outstanding Letter of Credit Obligations with respect to Letters of Credit issued by the Issuing Bank, other than Letter of Credit Obligations as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to the Swingline Lender, such Defaulting Lender's Revolving Commitment Percentage of outstanding Swingline Loans made by the Swingline Lender, other than Swingline Loans as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders.

------

"*<u>FSHCO</u>*" shall mean any Domestic Subsidiary that does *not* own any material Property other than the Equity Interests in, and/or Indebtedness (if any) of, one (1) or more CFCs (or other FSHCOs).

"*<u>Fund</u>*" shall mean any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.

"*<u>Funded Debt</u>*" shall mean, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all obligations for borrowed money, whether current or long-term (including the Obligations hereunder), all obligations evidenced by bonds, debentures, notes, loan or credit agreements or other similar instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all obligations in respect of the deferred purchase price of Property or services (other than trade accounts payable in the ordinary course of business and, in each case, *not* past due for *more than* sixty (60) calendar days), including, without limitation, any Earn Out Obligations recognized as a liability on the balance sheet of such Person in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all unreimbursed obligations of such Person with respect to draw amounts under letters of credit, bankers' acceptances and similar instruments (including bank guaranties);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Attributable Principal Amount of Capital Leases, Synthetic Leases, Securitization Transactions and Sale and Leaseback Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Disqualified Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all Funded Debt of others secured by (or for which the holder of such Funded Debt has an existing right, contingent or otherwise, to be secured by) any Lien on, or payable out of the proceeds of production from, Property owned or acquired by such Person, whether or not the obligations secured thereby have been assumed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all Guarantees in respect of Funded Debt of another Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Funded Debt of any partnership or joint venture or other similar entity in which such Person is a general partner or joint venturer, and, as such, has personal liability for such obligations, but only to the extent there is recourse to such Person for payment thereof.

For purposes hereof, the amount of Funded Debt shall be determined based on: (i) the outstanding principal amount thereof, in the case of borrowed money indebtedness under <u>clause (a</u>) above and purchase money indebtedness and deferred purchase obligations under <u>clause (b</u>) above; and (ii) the amount of Funded Debt that is the subject of such Guarantees, in the case of Guarantees under <u>clause (g</u>) above.

"*<u>Funding Notice</u>*" shall mean a notice substantially in the form of <u>Exhibit 2.1</u>.

"*<u>GAAP</u>*" shall mean, subject to the limitations on the application thereof set forth in <u>Section</u> <u>1.2</u>, accounting principles generally accepted in the United States in effect as of the date of determination thereof.

------

"*<u>Governmental Acts</u>*" shall mean any act or omission, whether rightful or wrongful, of any present or future *de jure* or *de facto* government or Governmental Authority.

"*<u>Governmental Authority</u>*" shall mean the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank and any group or body charged with setting financial accounting or regulatory capital rules or standards).

"*<u>Governmental Authorization</u>*" shall mean any permit, license, authorization, plan, directive, consent order or consent decree of or from any Governmental Authority.

"*<u>Guarantee</u>*" shall mean, as to any Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any obligation, contingent or otherwise, of such Person guaranteeing, or having the economic effect of guaranteeing, any Indebtedness or other obligation payable or performable by another Person (the "*<u>primary obligor</u>*") in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to purchase or lease Property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien).

The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term "*Guarantee*" as a verb has a corresponding meaning.

"*<u>Guaranteed Obligations</u>*" shall have the meaning specified for such term in <u>Section</u> <u>4.1</u>.

"*<u>Guarantor Joinder Agreement</u>*" shall mean a guarantor joinder agreement substantially in the form of <u>Exhibit 7.14</u> delivered by a Domestic Subsidiary pursuant to <u>Section</u> <u>7.14</u>.

------

"*<u>Guarantors</u>*" shall mean: (a) each existing and future direct and indirect Domestic Subsidiary that is *not* an Excluded Subsidiary; (b) each Person identified as a "*Guarantor*" on the signature pages to this Agreement; (c) each other Person that joins as a Guarantor pursuant to <u>Section</u> <u>7.14</u>; (d) with respect to (i) Secured Swap Obligations, (ii) Secured Treasury Management Obligations, and (iii) Swap Obligations of a Specified Credit Party (determined before giving effect to <u>Section</u> <u>4.1</u> and <u>Section</u> <u>4.8</u>) under the Guaranty hereunder, the Borrower; and (e) their successors and permitted assigns.

"*<u>Guaranty</u>*" shall mean the Guarantee made by the Guarantors in favor of the Administrative Agent, the Lenders and the other holders of the Obligations pursuant to <u>Article 4</u>.

"*<u>Hazardous Materials</u>*" shall mean any hazardous substances defined by the Comprehensive Environmental Response Compensation and Liability Act, 42 USCA 9601, *et seq*., as amended ("<u>CERCLA</u>"), including any hazardous waste as defined under 40 C.F.R. Parts 260–270, gasoline or petroleum (including crude oil or any fraction thereof), asbestos or polychlorinated biphenyls.

"*<u>Hazardous Materials Activity</u>*" shall mean any past, current, proposed or threatened activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, presence, existence, location, Release, threatened Release, discharge, placement, generation, transportation, processing, construction, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.

"*<u>Highest Lawful Rate</u>*" shall mean the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under Applicable Laws relating to any Lender which are currently in effect or, to the extent allowed under such Applicable Laws, which may hereafter be in effect and which allow a higher maximum non-usurious interest rate than Applicable Laws now allow.

"*<u>Immaterial Subsidiary</u>*" shall mean, as of any date of determination, each Subsidiary that has been designated by the Borrower, in writing to the Administrative Agent, as an "*Immaterial Subsidiary*" for purposes of this Agreement (and *not* re-designated as a Material Subsidiary as provided below), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for purposes of this Agreement and the other Credit Documents, at no time shall

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the aggregate book value of the total Property of (I) all Immaterial Subsidiaries, as of the last day of the most recently ended Trailing Period, *equal* or *exceed* five percent (5.0%), or (II) any individual Immaterial Subsidiary, as of the last day of the most recently ended Trailing Period, *equal* or *exceed* two and one-half of one percent (2.5%), in each case of the foregoing <u>clauses (a)(i)(A)(I</u>) and (<u>a)(i)(A)(II</u>), of the aggregate book value of the total Property of the Credit Parties and Subsidiaries as of such date, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the gross revenues of (I) all Immaterial Subsidiaries for the most recently ended Trailing Period *equal* or *exceed* five percent (5.0%), or (II) any individual Immaterial Subsidiary for the most recently ended Trailing Period *equal* or *exceed* two and one-half of one percent (2.5%), in each case of the foregoing <u>clauses (a)(i)(B)(I</u>) and (<u>a)(i)(B)(II</u>), of the gross revenues of the Credit Parties and Subsidiaries for such period, in each case of the foregoing <u>clauses (a)(i)(A</u>) and (<u>a)(i)(B</u>), determined on a consolidated basis in accordance with GAAP, or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the portion of Consolidated EBITDA, recomputed as of the last day of the most recently ended Trailing Period, attributable to the operations of (I) all Immaterial Subsidiaries, taken together, *equal* or *exceed* five percent (5.0%), or (II) any individual Immaterial Subsidiary *equal* or *exceed* two and one-half of one percent (2.5%), in each case of the foregoing <u>clauses (a)(i)(C)(I</u>) and (<u>a)(i)(C)(II</u>), of Consolidated EBITDA for such period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower shall *not* designate any new Immaterial Subsidiary if such designation would *not* comply with the provisions set forth in the foregoing <u>clause (a)(i</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the event that, on any Subsidiary Determination Date, the aggregate book value of the total Property, gross revenues or attributable portion of Consolidated EBITDA of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) all Subsidiaries so designated by the Borrower as "*Immaterial Subsidiaries*" (and *not* re-designated as "*Material Subsidiaries*"), taken together, or 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any individual Subsidiary so designated by the Borrower as an "*Immaterial Subsidiary*" (and *not* re-designated as a "*Material Subsidiary*"),

shall, in any such case of the foregoing <u>clauses (a)(iii)(A</u>) or (<u>a)(iii)(B</u>), *exceed* the respective limits set forth in the foregoing <u>clause (a)(i</u>), then the Borrower shall, promptly and, in any event, within five (5) Business Days after the applicable Subsidiary Determination Date, re-designate one (1) or more Immaterial Subsidiaries as Material Subsidiaries by providing written notice of such re-designation(s) to the Administrative Agent, so that (immediately after giving effect to such re-designation(s)) the aggregate book value of total Property, gross revenues and attributable portion of Consolidated EBITDA of (I) all Subsidiaries still designated as "*Immaterial Subsidiaries*", taken together, and (II) each individual Subsidiary still designated as an "*Individual Subsidiary*", in each case of the foregoing <u>clauses (a)(iii)(I</u>) and (<u>a)(iii)(II</u>), shall *not exceed* such respective limits; and <u>further</u> (and for purposes of clarity), upon any such re-designation made in accordance with the foregoing of this definition, each individual Subsidiary so re-designated shall be required to become a Guarantor in accordance with <u>Section</u> <u>7.14</u> (it being understood and agreed that the forty -five (45) calendar day period referred to in such Section shall be deemed to have commenced as of the applicable Subsidiary Determination Date); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower may designate and re-designate a Subsidiary as an Immaterial Subsidiary at any time, subject to the restrictions and limitations set forth in the foregoing <u>clause (a</u>).

"*<u>Incremental Cap</u>*" shall mean, as of any date of determination, the *difference* between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fifty Million Dollars ($50,000,000); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the aggregate original principal or committed amount of all Incremental Facilities previously established and/or incurred as of such date.

"*<u>Incremental DDTL Increase</u>*" shall mean any increase in the Aggregate DDTL Commitment Amount established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>).

------

"*<u>Incremental Facility</u>*" shall mean any Incremental Revolver Increase, any Incremental Term Loan A Increase, any Incremental DDTL Increase, or any other Incremental Term Loan.

"*<u>Incremental Facility Agreement</u>*" shall mean, with respect to any Incremental Facility, the definitive amendment, credit, commitment, joinder and/or other legal documentation executed and delivered by the Borrower pursuant to which such Incremental Facility is established, which amendment, credit, commitment, joinder and/or other legal documentation shall be in form and detail reasonably satisfactory to the Administrative Agent.

"*<u>Incremental Revolver Increase</u>*" shall mean any increase in the Aggregate Revolving Commitment Amount established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>).

"*<u>Incremental Term Loan</u>*" shall mean any additional Term Loan established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>) (including, for purposes of clarity, (i) any additional advance under the Term Loan A or the Delayed Draw Term Loan established in connection with an Incremental Term Loan A Increase or an Incremental DDTL Increase, as well as (ii) any additional Term Loan of a separate Class established after the Closing Date pursuant to such Section).

"*<u>Incremental Term Loan A Increase</u>*" shall mean any increase in the Aggregate Term Loan A Commitment Amount established after the Closing Date pursuant to <u>Section</u> <u>2.1(e</u>).

"*<u>Incremental Term Loan Commitment</u>*" shall mean, with respect to any Person(s) identified as an "*Incremental Lender*" (or substantially similar designation) in respect of an Incremental Term Loan in the Incremental Facility Agreement establishing such Incremental Term Loan, the respective commitment of such Person(s) (together with their respective successors and permitted assigns) to advance their respective portion of principal under such Incremental Term Loan in accordance with the terms of such Incremental Facility Agreement and this Agreement; <u>provided</u>, <u>that</u>, at any time after the establishment and incurrence of such Incremental Term Loan, the determination of "*Required Lenders*" shall thereafter include the aggregate outstanding principal balance of such Incremental Term Loan.

"*<u>Incremental Term Loan Commitment Percentage</u>*" shall mean, with respect to each Lender at any time and for any Incremental Term Loan, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the *sum of* (i) the amount of such Lender's Incremental Term Loan Commitment (if any) in respect of such Incremental Term Loan in effect at such time, *plus* (ii) the aggregate principal balance of the portion of such Incremental Term Loan advanced by such Lender that is outstanding at such time; and (b) the *denominator* of which is the *sum of* (i) the aggregate amount of the Incremental Term Loan Commitments of all of the Lenders, taken together, in respect of such Incremental Term Loan in effect at such time, *plus* (ii) the aggregate outstanding principal balance of such Incremental Term Loan at such time.

"*<u>Indebtedness</u>*" shall mean, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Funded Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) net obligations under any Swap Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Guarantees in respect of Indebtedness of another Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Indebtedness of the types referred to in <u>clauses (a</u>) through (<u>c</u>) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or joint venturer, unless such Indebtedness is expressly made non-recourse to such Person.

------

For purposes hereof, the amount of Indebtedness shall be determined based on the Swap Termination Value in the case of net obligations under any Swap Agreement pursuant to <u>clause (b</u>) above.

"*<u>Indemnified Taxes</u>*" shall mean: (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by, or on account of, any obligation of any Credit Party under any Credit Document; and (b) to the extent *not* otherwise described in <u>clause (a</u>), Other Taxes.

"*<u>Indemnitee</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.2(b</u>).

"*<u>Insurance Regulatory Authority</u>*" shall mean, with respect to any Regulated Entity, the insurance department or similar Governmental Authority charged with regulating insurance companies or insurance holding companies, in its jurisdiction of domicile and, to the extent that it has regulatory authority over such Regulated Entity, in each other jurisdiction in which such Regulated Entity conducts business or is licensed to conduct business.

"*<u>Intellectual Property</u>*" shall mean all trademarks, service marks, trade names, copyrights, patents, patent rights, franchises related to intellectual property, licenses related to intellectual property and other intellectual property rights.

"*<u>Interest Payment Date</u>*" shall mean, with respect to: (a) any Base Rate Loan and any Swingline Loan, (i) the last Business Day of each calendar quarter, commencing on the first (1<sup>st</sup>) such date to occur after the Closing Date, (ii) the Revolving Commitment Termination Date, (iii) the DDTL Commitment Termination Date, and (iv) the applicable Maturity Date therefor; and (b) any SOFR Loan, (i) the last day of each Interest Period applicable to such Loan, <u>provided</u>, <u>that</u>, in the case of each Interest Period of longer than three (3) months "*Interest Payment Date*" shall also include each date that is three (3) months, or an integral multiple thereof, after the commencement of such Interest Period, (ii) the Revolving Commitment Termination Date, (iii) the DDTL Commitment Termination Date, and (iv) the applicable Maturity Date therefor.

"*<u>Interest Period</u>*" shall mean, in connection with a SOFR Loan, an interest period of one (1), three (3) or six (6) months (in each case, subject to availability), as selected by the Borrower in the applicable Funding Notice or Conversion / Continuation Notice, (a) initially, commencing on the Credit Date or Conversion / Continuation Date thereof, as the case may be, and (b) thereafter, commencing on the day on which the immediately preceding Interest Period expires, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if an Interest Period would otherwise expire on a day that is *not* a Business Day, such Interest Period shall expire on the next succeeding Business Day unless no further Business Day occurs in such month, in which case, such Interest Period shall expire on the immediately preceding Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall, subject to <u>clause (iii</u>) below, end on the last Business Day of a calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no Interest Period with respect to any Term Loan shall extend beyond any principal amortization payment date, except to the extent that the portion of such Term Loan that is comprised of SOFR Loans that is expiring prior to the applicable principal amortization payment date *equals* or *exceeds* the amount of the principal amortization payment then due;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) no Interest Period with respect to any portion of the Revolving Loans shall extend beyond the Revolving Commitment Termination Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no Interest Period with respect to any portion of the Delayed Draw Term Loan shall extend beyond the DDTL Commitment Termination Date.

"*<u>Interest Rate Determination Date</u>*" shall mean, with respect to any Interest Period, the date that is two (2) Business Days prior to the first (1<sup>st</sup>) day of such Interest Period.

"*<u>Internal Revenue Code</u>*" shall mean the Internal Revenue Code of 1986.

"*<u>Investment</u>*" shall mean, as to any Person, any direct or indirect acquisition of or relating to, or investment by, such Person (including pursuant to any merger with any Person that was *not* a Wholly Owned Subsidiary prior to such merger), whether by means of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the purchase or other acquisition of Equity Interests of another Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such other Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an Acquisition.

For purposes of calculating compliance with any of the Financial Covenants (and, for purposes of any calculations substantially based on, or derivative from, such compliance), the amount of any Investment shall be deemed to be the amount *actually* invested, without adjustment for subsequent increases or decreases in the value of such Investment. For the avoidance of doubt, any forgiveness (in whole or in part) by the Credit Parties (or any of them) of any fees otherwise owed by, or on behalf of, any Regulated Entity, on the one hand, to, or for the benefit of, the Credit Parties (or any of them), on the other hand, pursuant to any managing general agent, service company or attorney-in-fact agreement between any such Regulated Entity, on the one hand, and the Credit Parties (or any of them), on the other hand, shall, in any such case of the foregoing, constitute an "*Investment*" by such Credit Party or Credit Parties (as applicable) in such Regulated Entity, in the aggregate amount of such fees that are so forgiven.

"*<u>Involuntary Disposition</u>*" shall mean the receipt by any Credit Party, any Subsidiary, or any other Regulated Entity of any cash insurance proceeds or condemnation awards payable by reason of theft, loss, physical destruction or damage, taking or similar event with respect to any of its Property.

"*<u>IRS</u>*" shall mean the United States Internal Revenue Service.

"*<u>ISP</u>*" shall mean, with respect to any Letter of Credit, the "International Standby Practices 1998" published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance of such Letter of Credit).

"*<u>Issuance Notice</u>*" shall mean an Issuance Notice substantially in the form of <u>Exhibit 2.3</u>.

------

"*<u>Issuer Documents</u>*" shall mean with respect to any Letter of Credit, the Letter of Credit Application, and any other document, agreement and instrument entered into by the Issuing Bank and any Credit Party, any Subsidiary or any other Regulated Entity, or otherwise in favor of the Issuing Bank and relating to such Letter of Credit.

"*<u>Issuing Bank</u>*" shall mean Regions Bank in its capacity as issuer of Letters of Credit hereunder, together with its permitted successors and assigns in such capacity.

"*<u>Junior Debt</u>*" shall mean any Funded Debt of any Credit Party, Subsidiary or other Regulated Entity that is: (a) unsecured; (b) secured by any or all of the Collateral and subordinated in respect of lien priority to the Liens granted in favor of the Collateral Agent, for the benefit of the holders of the Obligations; or (c) subordinated in right of payment to the prior payment of any or all of the Obligations.

"*<u>Latest Maturity Date</u>*" shall mean, as of any date of determination, the *latest* to occur of: (a) the Revolving Commitment Termination Date; (b) the DDTL Commitment Termination Date; and (c) the latest Maturity Date applicable to any Term Loan.

"*<u>Leasehold Property</u>*" shall mean any leasehold interest of any Credit Party, as lessee or tenant, in any Real Estate Asset, or any Property right pursuant to a lease, rental, easement, servitude or similar agreement, however termed, in each case now held or hereafter acquired.

"*<u>Lenders</u>*" shall mean, collectively, each financial institution with a Commitment, together with its successors and permitted assigns. The initial Lenders as of the Closing Date are identified on the signature pages to this Agreement, and the Lenders as of the Third Amendment Effective Date are identified on the signature pages to the Third Amendment.

"*<u>Letter of Credit</u>*" shall mean any standby letter of credit issued hereunder.

"*<u>Letter of Credit Application</u>*" shall mean an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the Issuing Bank.

"*<u>Letter of Credit Borrowing</u>*" shall mean any Credit Extension resulting from a drawing under any Letter of Credit that has *not* been reimbursed or refinanced as a Borrowing of Revolving Loans.

"*<u>Letter of Credit Fees</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.10(b)(i</u>).

"*<u>Letter of Credit Obligations</u>*" shall mean, at any time, the *sum of*: (a) the maximum amount available to be drawn under Letters of Credit then outstanding, assuming compliance with all requirements for drawings referenced therein; *plus* (b) the aggregate amount of all drawings under Letters of Credit that have *not* been reimbursed by the Borrower, including Letter of Credit Borrowings. For all purposes of this Agreement, (i) amounts available to be drawn under Letters of Credit will be calculated as provided in <u>Section</u> <u>1.3(i</u>), and (ii) if a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be "outstanding" in the amount so remaining available to be drawn.

"*<u>Letter of Credit Sublimit</u>*" shall mean, as of any date of determination, the aggregate unused amount of the Revolving Commitments then in effect.

"*<u>Lien</u>*" shall mean: (a) any lien, mortgage, pledge, assignment, security interest, charge or encumbrance of any kind (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, and any lease or license in the nature thereof) and any option, trust or other preferential arrangement having the practical effect of any of the foregoing; and (b) in the case of Securities, any purchase option, call or similar right of a third party with respect to such Securities.

------

"*<u>Liquidity</u>*" shall mean, as of any date of determination, the *sum of*: (a) unrestricted cash and Cash Equivalents held by the Credit Parties on such date; *plus* (b) the aggregate amount actually available to be drawn by the Borrower under the Aggregate Revolving Commitments on such date. For the avoidance of doubt, the terms "*cash*" and "*Cash Equivalents*" as used in this definition shall only apply to any such Property that is directly owned by a Credit Party, and shall *not* include any amounts of consolidated or combined cash and/or Cash Equivalents consisting of funds owned by: (i) a Subsidiary (including any Regulated Subsidiary) that is *not* a Credit Party; or (ii) any other Regulated Entity.

"*<u>Loan</u>*" shall mean any Revolving Loan, any Swingline Loan or any Term Loan, and the Base Rate Loans and SOFR Loans comprising such Loans.

"*<u>Margin Stock</u>*" shall have the meaning specified for such term in Regulation U of the Federal Reserve Board, as in effect from time to time.

"*<u>Master Agreement</u>*" shall have the meaning specified for such term in the definition of "*Swap Agreement*" below.

"*<u>Material Adverse Effect</u>*" shall mean any effect, event, condition, action, omission, change or state of facts that, individually or in the aggregate, has resulted in, or could reasonably be expected to result in, a material adverse effect with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the business operations, assets, Property or financial condition of the Credit Parties, Subsidiaries and other Regulated Entities, taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the ability of the Credit Parties, taken as a whole, to fully and timely perform the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the legality, validity, binding effect, or enforceability against a Credit Party of any Credit Document to which it is a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the value of the whole, or any material part, of the Collateral, or the priority of Liens in the whole, or any material part, of the Collateral in favor of the Collateral Agent, for the benefit of the holders of the Obligations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the material rights, remedies and benefits available to, or conferred upon, the Agent, any Lender, and/or any other holder of Obligations under any Credit Document.

"*<u>Material Contract</u>*" shall mean: (a) any managing general agent or service company agreement entered into between any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the one hand, and any Regulated Entity, on the other hand; (b) any attorney-in-fact agreement entered into between any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the one hand, and any Qualifying Reciprocal Entity, on the other hand; and (c) any other Contractual Obligation to which any Credit Party, any Subsidiary or any other Regulated Entity, or any of their respective Properties, are bound (other than those evidenced by the Credit Documents) pursuant to which a default, breach or termination thereof could reasonably be expected to result in a Material Adverse Effect.

"*<u>Material Subsidiary</u>*" shall mean, as of any date of determination, each Subsidiary that is *not* an Immaterial Subsidiary.

------

"*<u>Maturity Date</u>*" shall mean: (a) with respect to the Term Loan A and the Delayed Draw Term Loan, the *earlier* to occur of (i) the date that is the fifth (5<sup>th</sup>) anniversary of the Closing Date (or, if such date is *not* a Business Day, the immediately prior Business Day), and (ii) the date on which the aggregate outstanding principal balance(s) of the Term Loan A and/or the Delayed Draw Term Loan (as applicable) have been declared, or automatically have become, due and payable pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise); and (b) with respect to any Incremental Term Loan, the *earlier* to occur of (i) the maturity date identified in the applicable Incremental Facility Agreement establishing such Incremental Term Loan, and (ii) the date on which the aggregate outstanding principal balance of such Incremental Term Loan has been declared, or automatically has become, due and payable pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise).

"*<u>Moody</u>*<u>'</u>*<u>s</u>*" shall mean Moody's Investor Services, Inc., together with its successors.

"*<u>Mortgages</u>*" shall mean the mortgages, deeds of trust or deeds to secure debt that purport to grant to the Collateral Agent, for the benefit of the holders of the Obligations, a security interest in any Real Estate Asset.

"*<u>Multiemployer Plan</u>*" shall mean any "multiemployer plan" as defined in Section 3(37) of ERISA which is sponsored, maintained or contributed to by, or required to be contributed to by, any of the Credit Parties, Subsidiaries or Regulated Entities, or any of their respective ERISA Affiliates, or with respect to which any of the Credit Parties, Subsidiaries or Regulated Entities, or any of their respective ERISA Affiliates, previously sponsored, maintained or contributed to or was required to contributed to, and still has liability.

"*<u>NAIC</u>*" shall mean the National Association of Insurance Commissioners (or any successor to any of its principal functions).

"*<u>Net Cash Proceeds</u>*" shall mean the aggregate proceeds paid in cash or Cash Equivalents received by any Credit Party, any Subsidiary or any other Regulated Entity in connection with any Specified Transaction, net of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) direct costs incurred or estimated costs for which reserves are maintained, in connection therewith (including legal, accounting and investment banking fees and expenses, sales commissions and underwriting discounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) estimated Taxes paid or payable (including sales, use or other transactional taxes and any net marginal increase in income taxes) as a result thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the amount required to retire any Indebtedness secured by a Lien on related

Property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reasonable reserves in accordance with GAAP for any liabilities or indemnification payments (fixed or contingent) attributable to seller's indemnities and representations and warranties to purchasers and other retained liabilities in respect of any Asset Sale undertaken by any Credit Party, any Subsidiary or any other Regulated Entity; <u>provided</u>, <u>that</u>, to the extent that any such amount ceases to be so reserved (other than any reduction in such reserve to make a payment in respect of such liability or indemnification obligations), the amount thereof shall be deemed to be Net Cash Proceeds of such Asset Sale at such time.

------

For purposes hereof, "*Net Cash Proceeds*" includes any cash or Cash Equivalents received upon the disposition of any non -cash consideration received by any Credit Party, any Subsidiary or any other Regulated Entity in any Specified Transaction.

"*<u>Non</u>*<u>-</u>*<u>Consenting Lender</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.17</u>.

"*<u>Non</u>*<u>-</u>*<u>Defaulting Lender</u>*" shall mean, at any time, each Lender that is *not* a Defaulting Lender at such time.

"*<u>Non</u>*<u>-</u>*<u>Qualifying Reinsurer</u>*" shall mean any reinsurer that is *not* a Qualifying Reinsurer.

"*<u>Note</u>*" shall mean a promissory note in the form of <u>Exhibit 2.5</u> issued by the Borrower in favor of a Lender, as such promissory note may be amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time.

"*<u>Notice</u>*" shall mean a Funding Notice, an Issuance Notice or a Conversion / Continuation Notice.

"*<u>Obligations</u>*" shall mean all obligations, indebtedness and other liabilities of every nature of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Credit Party from time to time owing to the Agents (including any former Agents), the Issuing Bank, the Lenders (including former Lenders in their capacity as such) or any of them, the Qualifying Swap Providers and the Qualifying Treasury Management Banks under any Credit Document, any Secured Swap Agreement or any Secured Treasury Management Agreement, and (without duplication)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each Subsidiary and other Regulated Entity from time to time owing to the Qualifying Swap Providers and the Qualifying Treasury Management Banks under any Secured Swap Agreement or ant Secured Treasury Management Agreement,

in each case of the foregoing <u>clause (a</u>) and (<u>b</u>), together with all renewals, extensions, modifications or refinancings thereof, whether for principal, interest (including fees and interest which, but for the filing of a petition in bankruptcy with respect to such Credit Party, Subsidiary or other Regulated Entity, would have accrued on any Obligation, whether or not a claim is allowed against such Credit Party, Subsidiary or other Regulated Entity for such interest or fees in the related bankruptcy proceeding), reimbursement of amounts drawn under Letters of Credit, payments for early termination of Swap Agreements, fees, expenses, indemnification or otherwise, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Erroneous Payment Subrogation Rights;

<u>provided</u>, <u>that</u>, the "*<u>Obligations</u>*" of a Credit Party, Subsidiary or other Regulated Entity shall *exclude* any Excluded Swap Obligations with respect to such Credit Party, Subsidiary or other Regulated Entity. Notwithstanding anything to the contrary contained herein or under any of the other Credit Documents, the obligations of any Credit Party, any Subsidiary or any other Regulated Entity under any Secured Swap Agreement or any Secured Treasury Management Agreement shall be secured and guaranteed pursuant to the Credit Documents only to the extent that, and for so long as, the Obligations (other than any Obligations with respect to Secured Swap Agreements and Secured Treasury Management Agreements) are so secured and guaranteed.

"*<u>OFAC</u>*" shall mean the U.S. Department of the Treasury's Office of Foreign Assets Control.

------

"*<u>Organizational Documents</u>*" shall mean, with respect to: (a) any corporation, its certificate or articles of incorporation or organization, as amended, and its by-laws, as amended; (b) any limited partnership, its certificate of limited partnership, as amended, and its partnership agreement, as amended; (c) any general partnership, its partnership agreement, as amended; and (d) any limited liability company, its articles of organization, certificate of formation or comparable documents, as amended, and its operating agreement, as amended. In the event any term or condition of this Agreement or any other Credit Document requires any Organizational Document to be certified by a secretary of state or similar governmental official, the reference to any such "*Organizational Document*" shall only be to a document of a type customarily certified by such governmental official.

"*<u>Other Connection Taxes</u>*" shall mean, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Credit Document, or sold or assigned an interest in any Loan or Credit Document).

"*<u>Other Taxes</u>*" shall mean all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Credit Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to <u>Section</u> <u>2.17</u>).

"*<u>Participant</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.5(d</u>).

"*<u>Participant Register</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.5(d</u>).

"*<u>Patriot Act</u>*" shall have the meaning specified for such term in <u>Section</u> <u>6.15(f</u>).

"*<u>Payment Event of Default</u>*" shall mean an Event of Default pursuant to <u>Section p.1(a</u>).

The "*<u>Payment in Full</u>*" of the Obligations (or any specified Class thereof), and the Obligations (or any specified Class thereof) being "*<u>Paid in Full</u>*", shall, in each case, mean the expiration or earlier termination of all of the Commitments (or of all of the Commitments of the specified Class thereof, as applicable), the payment in full, in immediately available funds, of all of the Obligations (or such specified Class thereof), and, as applicable, the expiration or earlier termination (or Cash Collateralization to the satisfaction of the Issuing Bank) of all Letters of Credit (in each case, without any pending draw) and the reimbursement of all other Letter of Credit Obligations, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) contingent indemnification and expense reimbursement Obligations, in each case of this <u>clause (a</u>), *solely* to the extent that no claim(s) giving rise thereto have been asserted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) obligations, indebtedness and other liabilities under any Secured Swap Agreement or any Secured Treasury Management Agreement owed by any Credit Party, any Subsidiary, or any other Regulated Entity to any Qualifying Swap Provider or any Qualifying Treasury Management Bank (as applicable), *solely* to the extent that security, guarantee and/or other arrangements satisfactory to such Qualifying Swap Provider or such Qualifying Treasury Management Bank with respect to such obligations, indebtedness and other liabilities shall have been made;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) contingent Obligations for which (i) Cash Collateral, (ii) backstopping letters of credit, or (iii) other arrangements have been made, in each case of the foregoing <u>clauses (c)(i</u>) through (<u>c)(iii</u>), that are satisfactory to the holder(s) of such contingent Obligations.

"*<u>Payment Recipient</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(a</u>).

"*<u>PBGC</u>*" shall mean the Pension Benefit Guaranty Corporation or any successor thereto.

"*<u>Pension Plan</u>*" shall mean any "employee pension benefit plan" as defined in Section 3(2) of ERISA other than a Multiemployer Plan, which is subject to Section 412 of the Internal Revenue Code or Section 302 of ERISA and which is sponsored, maintained or contributed to by, or required to be contributed to by, any Credit Party, any Subsidiary or any other Regulated Entity, or with respect to which any Credit Party, any Subsidiary or any other Regulated Entity previously sponsored, maintained or contributed to, or was required to contribute to, and still has liability.

"*<u>Periodic Term SOFR Determination Date</u>*" shall have the meaning specified for such term in the definition of "*Term SOFR*" below.

"*<u>Permitted Acquisition</u>*" shall mean (x) any portfolio investment made by any Regulated Entity in the ordinary course of business, as well as (y) any Acquisition that, *solely* in the case of this <u>clause (y</u>), satisfies each of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Property to be acquired (or the Property of the Person to be acquired) in such Acquisition is a business, or is used or useful in a business, permitted under <u>Section</u> <u>8.14</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the board of directors (or other comparable governing body) of the Person to be acquired (or owning the Property to be acquired) shall have approved the Acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) both immediately *before* and immediately *after* giving effect to such Acquisition (and to the payment of all cash consideration and any incurrence or assumption of Indebtedness in connection therewith, but without giving effect to any "netting" of the cash proceeds thereof against Consolidated Funded Debt):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default shall exist and be continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the representations and warranties made by each of the Credit Parties in each Credit Document to which they are a party shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) as if made on, and as of, the date of consummation of such Acquisition (after giving effect thereto), except to the extent that such representations and warranties expressly relate to an earlier date, in which case, such representations and warranties shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Credit Parties shall be in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis, shall be *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the maximum Consolidated Leverage Ratio then permitted under <u>Section</u> <u>8.8(a</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) there shall be *at least* Ten Million Dollars ($10,000,000) of Liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the aggregate cash and non-cash consideration (including any assumption of Indebtedness, deferred purchase price and any Earn Out Obligations and any equity consideration) paid by the Credit Parties, Subsidiaries and other Regulated Entities (and including, for purposes of clarity, any such Captive Reinsurance Companies) for all such Acquisitions occurring during the term of this Agreement shall *not exceed* twenty-five percent (25.0%) of the consolidated stockholders' equity of the Credit Parties, Subsidiaries and other Regulated Entities (determined based on the consolidated financial statements most recently delivered to the Administrative Agent pursuant to this Agreement at the time of consummation of any such Acquisition); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *at least* five (5) Business Days prior to the consummation of such Acquisition, an Authorized Officer of the Borrower shall provide a certificate, in form and detail reasonably satisfactory to the Administrative Agent, affirming compliance with each of the items set forth in <u>clauses (a</u>) through (<u>d</u>) above.

"*<u>Permitted Holders</u>*" shall mean, collectively: (a) each of (i) David Flitman, an individual resident of the state of Florida, and (ii) Steven Hoffman, an individual resident of the state of Florida; and (b) any trust or other estate-planning vehicle established for the benefit of (i) any such individual referred to in the foregoing <u>clause (a</u>), or (ii) any other individual having a relationship by blood (to the second (2<sup>nd</sup>) degree of consanguinity), marriage, or adoption to any such individual referred to in the foregoing <u>clause (a</u>), and, in each case of the foregoing <u>clauses (b)(i</u>) and (<u>b)(ii</u>), in respect of which such individual referred to in the foregoing <u>clause (a</u>) serves as sole trustee or in a similar capacity.

"*<u>Permitted Liens</u>*" shall mean each of the Liens permitted pursuant to <u>Section</u> <u>8.2</u>.

"*<u>Permitted Refinancing</u>*" shall mean, with respect to any existing Indebtedness, any extension, renewal, refinancing and/or replacement of any such Indebtedness, so long as any such extension, renewal, refinancing and/or replacement of such Indebtedness:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has market terms and conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has a maturity date that is *later than* that of the Indebtedness being extended, renewed or refinanced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) has an average life to maturity that is *greater than* that of the Indebtedness being extended, renewed or refinanced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) does *not* include an obligor that was *not* an obligor with respect to the Indebtedness being extended, renewed or refinanced, unless such obligor is also a Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) remains subordinated if, and to the same extent that, the Indebtedness being extended, renewed or refinanced was subordinated to the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) remains unsecured if the Indebtedness being extended, renewed or refinanced was unsecured;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) does *not exceed* in a principal amount the principal amount of the Indebtedness being renewed, extended, refinanced or replaced, *plus* accrued and unpaid interest and reasonable fees and expenses, premiums and penalties incurred in connection therewith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) is *not* incurred, created or assumed if any Default or Event of Default then exists or would arise therefrom.

"*<u>Person</u>*" shall mean any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"*<u>Platform</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.1(d</u>).

"*<u>Prime Rate</u>*" shall mean the per annum rate which the Administrative Agent publicly announces from time to time to be its prime lending rate, as in effect from time to time. The Administrative Agent's prime lending rate is a reference rate and does *not* necessarily represent the lowest or best rate charged to customers.

"*<u>Principal Office</u>*" shall mean, for the Administrative Agent, the Collateral Agent, the Swingline Lender and the Issuing Bank, such Person's "*Principal Office*" as set forth on <u>Appendix B</u>, or such other office as it may from time to time designate in writing to the Borrower and each Lender.

"*<u>Pro Forma Basis</u>*" shall mean, with respect to any Specified Transaction, whether actual or proposed, for purposes of determining compliance with any of the Financial Covenants (or with any condition(s) and/or test(s) based on such compliance that are subject to calculation on a "*Pro Forma Basis*" as indicated in this Agreement or any other Credit Document, including for purposes of determining the Applicable Margin), Consolidated EBITDA and/or Combined Statutory Surplus (or with any condition(s) and/or test(s) based on Consolidated EBITDA and/or Combined Statutory Surplus that are subject to calculation on a "*Pro Forma Basis*" as indicated in this Agreement or any other Credit Document), that such actual or proposed Specified Transaction shall be deemed to have occurred on, and as of, (I) the first (1<sup>st</sup>) day of the most recently ended Trailing Period, in the case of either of the Financial Covenants set forth in <u>Section</u> <u>8.8(a</u>) or <u>Section</u> <u>8.8(b</u>), or (II) the first (1<sup>st</sup>) day of the most recently ended Fiscal Quarter, in the case of the Financial Covenant set forth in <u>Section</u> <u>8.8(c</u>) (or, in any such case of the foregoing <u>clauses (I</u>) and (<u>II</u>), on, and as of, the first (1<sup>st</sup>) day of such other historical period of time as may be expressly specified in this Agreement or another Credit Document for a specific purpose), and <u>further</u>, the following pro forma adjustments shall be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Asset Sale or Involuntary Disposition, income statement and cash flow statement items (whether positive or negative) attributable to the Property disposed of shall be *excluded* to the extent relating to any period occurring *prior* to the date of such Asset Sale or Involuntary Disposition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Acquisition, income statement items attributable to the Person or Property acquired shall be *included* to the extent relating to any period applicable in such calculations to the extent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) such items are *not* otherwise included in such income statement items for the Credit Parties, Subsidiaries and other Regulated Entities in accordance with GAAP or in accordance with any defined terms set forth in <u>Section</u> <u>1.1</u>; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) such items are supported by financial statements or other information satisfactory to the Administrative Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Indebtedness incurred or assumed by any Credit Party, any Subsidiary, or any other Regulated Entity (including the Person or Property acquired) in connection with such transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall be deemed to have been incurred as of the first (1<sup>st</sup>) day of the applicable period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if such Indebtedness has a floating or formula rate, shall have an implied rate of interest for the applicable period for purposes of this definition determined by utilizing the rate that is, or would be, in effect with respect to such Indebtedness as of the relevant date of determination.

"*<u>Probable Maximum Loss</u>*" shall have the meaning specified and as used by each applicable Insurance Regulatory Authority.

"*<u>Property</u>*" shall mean an interest of any kind in any property or asset, whether real, personal or mixed, and whether tangible or intangible.

"*<u>PTE</u>*" shall mean a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"*<u>QFC</u>*" shall have the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. §–5390(c)(8)(D).

"*<u>QFC Credit Support</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

"*<u>Qualified ECP Guarantor</u>*" shall mean, in respect of any Swap Obligation, each Credit Party that, at the time the Guaranty (or grant of security interest, as applicable) becomes or would become effective with respect to such Swap Obligation, has total assets *exceeding* Ten Million Dollars ($10,000,000) or such other Credit Party as constitutes an "eligible contract participant" under the Commodity Exchange Act and which may cause another Person to qualify as an "eligible contract participant" with respect to such Swap Obligation at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

"*<u>Qualifying Reciprocal Entity</u>*" shall mean, collectively: (a) each of (i) Cajun Underwriters Reciprocal Exchange, and (ii) Manatee Insurance Exchange; and (b) any reciprocal insurance exchange or other similar entity (other than a Regulated Subsidiary or other risk-bearing insurance company Subsidiary) in respect of which a Credit Party whose Equity Interests are pledged as Collateral in accordance with <u>Section</u> <u>7.12(a</u>) is, at all times during the term of this Agreement after the formation of such reciprocal insurance exchange or other similar entity, duly appointed as the attorney -in-fact of such reciprocal insurance exchange pursuant to documentation reasonable acceptable to the Administrative Agent.

"*<u>Qualifying Reinsurer</u>*" shall mean: (a) the Florida Hurricane Catastrophe Fund; (b) any Person (which may include Affiliates of any Credit Party, including Captive Reinsurance Companies) providing reinsurance services with *at least* an "A–" financial strength rating from A.M. Best Company (or any successor in interest thereto); or (c) any Person (which may include Affiliates of any Credit Party, including Captive Reinsurance Companies) providing reinsurance services that has collateralized its obligations to the Regulated Entities at a level consistent with NAIC's requirements for credit on Schedule F of the statutory financial statements of the Regulated Entities.

------

"*<u>Qualifying Swap Provider</u>*" shall mean: (a) any of Regions Bank and its Affiliates; and (b) any Person that (i) at the time it enters into a Swap Agreement with any Credit Party, any Subsidiary or any other Regulated Entity, is a Lender or an Affiliate of a Lender, or (ii) in the case of a Swap Agreement with any Credit Party, any Subsidiary or any other Regulated Entity in effect on or prior to the Closing Date, is, as of the Closing Date or within thirty (30) days thereafter, a Lender or an Affiliate of a Lender, and, in each such case under this <u>clause (b</u>), shall have provided a Secured Party Designation Notice to the Administrative Agent. For purposes hereof, the term "*Lender*" shall be deemed to include the Administrative Agent.

"*<u>Qualifying Treasury Management Bank</u>*" shall mean: (a) any of Regions Bank and its Affiliates; and (b) any Person that (A) at the time it enters into a Treasury Management Agreement, is a Lender or an Affiliate of a Lender, or (B) in the case of a Treasury Management Agreement in effect on or prior to the Closing Date, is, as of the Closing Date or within thirty (30) days thereafter, a Lender or an Affiliate of a Lender, and, in each such case under this <u>clause (b</u>), shall have provided a Secured Party Designation Notice to the Administrative Agent. For purposes hereof, the term "*Lender*" shall be deemed to include the Administrative Agent.

"*<u>Real Estate Asset</u>*" shall mean, at any time of determination, any interest (fee, leasehold or otherwise) then owned by any Credit Party, any Subsidiary or any other Regulated Entity in any real property.

"*<u>Recipient</u>*" shall mean (a) the Administrative Agent, (b) the Collateral Agent, (c) any Lender, and (d) the Issuing Bank, as applicable.

"*<u>Refunded Swingline Loans</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.2(b)(iii</u>).

"*<u>Register</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.5(c</u>).

"*<u>Regulated Entity</u>*" shall mean, collectively: (a) each Qualifying Reciprocal Entity; and (b) each Regulated Subsidiary.

"*<u>Regulated Subsidiary</u>*" shall mean: (a) each of (i) Safepoint Insurance Company, and (ii) each Captive Reinsurance Company; and (b) any Domestic Subsidiary (i) that is a risk retention entity subject to regulation by a Governmental Authority and/or required by Applicable Laws to utilize SAP and submit them to a Governmental Authority, and (ii) with respect to which the Administrative Agent has received prior written notification that such Domestic Subsidiary constitutes a Regulated Subsidiary.

"*<u>Reimbursement Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.3(d</u>).

"*<u>Related Parties</u>*" shall mean, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"*<u>Release</u>*" shall mean any release, spill, emission, leaking, pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material into the indoor or outdoor environment (including the abandonment or disposal of any barrels, containers or other closed receptacles containing any Hazardous Material), including the movement of any Hazardous Material through the air, soil, surface water or groundwater.

------

"*<u>Relevant Governmental Body</u>*" shall mean the Federal Reserve Board and/or the FRBNY, or a committee officially endorsed or convened by the Federal Reserve Board and/or the FRBNY, or any successor thereto.

"*<u>Removal Effective Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.6(b</u>).

"*<u>Required DDTL Lenders</u>*" shall mean, as of any date of determination, *at least* two (2) unaffiliated Lenders (unless there is only one (1) Lender at such time, in which case, such Lender) having Total Credit Exposures of the types described in clauses (a) (*solely* with respect to the Delayed Draw Term Loan) and (c) of the definition of "*Total Credit Exposure*" below, taken together, representing *more than* fifty percent (50.0%) of the *sum of* the Total Credit Exposures of such types of all of the Lenders at such time, taken together; <u>provided</u>, <u>that</u>, the Total Credit Exposure of any Defaulting Lender shall be *excluded* for purposes of making a determination of Required DDTL Lenders.

"*<u>Required Lenders</u>*" shall mean, as of any date of determination, *at least* two (2) unaffiliated Lenders (unless there is only one (1) Lender at such time, in which case, such Lender) having Total Credit Exposures, taken together, representing *more than* fifty percent (50.0%) of the *sum of* the Total Credit Exposures of all of the Lenders at such time, taken together; <u>provided</u>, <u>that</u>, the Total Credit Exposure of any Defaulting Lender shall be *excluded* for purposes of making a determination of Required Lenders.

"*<u>Required Revolving Lenders</u>*" shall mean, as of any date of determination, *at least* two (2) unaffiliated Lenders (unless there is only one (1) Lender at such time, in which case, such Lender) having Total Credit Exposures of the types described in clauses (b) and (d) of the definition of "*Total Credit Exposure*" below, taken together, representing *more than* fifty percent (50.0%) of the *sum of* the Total Credit Exposures of such types of all of the Lenders at such time, taken together; <u>provided</u>, <u>that</u>, the Total Credit Exposure of any Defaulting Lender shall be *excluded* for purposes of making a determination of Required Revolving Lenders.

"*<u>Resignation Effective Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.6(a</u>).

"*<u>Resolution Authority</u>*" shall mean an EEA Resolution Authority, or, with respect to any UK Financial Institution, a UK Resolution Authority.

"*<u>Restricted Payment</u>*" shall mean any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in any Credit Party or Subsidiary, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests, or on account of any return of capital to such Person's stockholders, partners or members (or the equivalent Person thereof), or any setting apart of funds or Property for any of the foregoing (but *not* including, for purposes of clarity, any dividend or other distribution (whether in cash, securities or other Property) made by any Qualifying Reciprocal Entity to any of its policyholders).

"*<u>Returned Reinsurance Investments</u>*" shall mean, with respect to any Investment (the "*<u>original</u> <u>Investment</u>*" for a Returned Reinsurance Investment) made by the Credit Parties in a Captive Reinsurance Company during the treaty period for an applicable reinsurance agreement that is used (or the Net Cash Proceeds of which are used) by such Captive Reinsurance Company to provide cash collateral in connection with such reinsurance agreement, the portion of the Net Cash Proceeds of such original Investment that are returned to the Credit Parties in satisfaction of such original Investment by *not later than* the date that is ninety (90) calendar days after the end of such treaty period.

------

"*<u>Revolver Availability Period</u>*" shall mean the period from, and including, the Closing Date to, but *excluding*, the Revolving Commitment Termination Date.

"*<u>Revolving Commitment</u>*" shall mean, with respect to each Lender, the obligation of such Lender to advance (or to otherwise fund) its respective portion of principal under Revolving Loans from time to time made during the Revolver Availability Period pursuant to <u>Section</u> <u>2.1(a</u>) and to otherwise acquire participations in Letters of Credit and Swingline Loans in accordance with the terms of this Agreement, in an aggregate principal amount advanced (or otherwise funded or acquired) by such Lender *not to exceed* the applicable amount set forth with respect to such Lender as such Lender's "*Revolving Commitment*" on <u>Appendix A</u> (or in the applicable Assignment Agreement pursuant to which such Lender becomes a party to this Agreement after the Third Amendment Effective Date, as applicable) at any time outstanding, subject to any increase(s), adjustment(s) and/or reduction(s) pursuant to the terms and conditions of this Agreement.

"*<u>Revolving Commitment Percentage</u>*" shall mean, with respect to each Lender at any time, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the amount of such Lender's Revolving Commitment (if any) in effect at such time; and (b) the *denominator* of which is the Aggregate Revolving Commitment Amount in effect at such time. The Revolving Commitment Percentages of each Lender as of the Third Amendment Effective Date are set forth on <u>Appendix A</u>.

"*<u>Revolving Commitment Termination Date</u>*" shall mean the *earliest* to occur of: (a) the date that is the fifth (5<sup>th</sup>) anniversary of the Closing Date (or, if such date is *not* a Business Day, the immediately prior Business Day); (b) the date on which the Borrower shall have provided written notice to the Administrative Agent of its election to terminate the Aggregate Revolving Commitments in accordance with <u>Section</u> <u>2.11(b</u>); and (c) the date on which the Aggregate Revolving Commitments shall have been terminated, and/or all amounts outstanding under this Agreement shall have been declared, or automatically have become, due and payable, in each case of the foregoing of this <u>clause (c</u>), pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise).

"*<u>Revolving Credit Exposure</u>*" shall mean, with respect to any Lender at any time, the *sum of*: (a) the aggregate outstanding principal balances of the respective portions of each then outstanding Revolving Loan advanced by such Lender, taken together, at such time; *plus* (b) the aggregate amount of such Lender's participation obligations in respect of Letters of Credit Obligations and Swingline Loans, taken together, at such time.

"*<u>Revolving Loan</u>*" shall mean a Loan made by the Lenders to the Borrower pursuant to <u>Section</u> <u>2.1(a</u>).

"*<u>Revolving Obligations</u>*" shall mean, collectively, the Revolving Loans, the Letter of Credit Obligations, and the Swingline Loans.

"*<u>S&P</u>*" shall mean Standard & Poor's, a Standard & Poor's Financial Services LLC business, together with its successors.

"*<u>Sale and Leaseback Transaction</u>*" shall mean, with respect to any Credit Party, any Subsidiary or any other Regulated Entity, any arrangement, directly or indirectly, with any Person (other than a Credit Party) whereby any such Person(s) shall sell or transfer any Property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such Property or other Property that it intends to use for substantially the same purpose(s) as the Property being sold or transferred.

------

"*<u>SAP</u>*" shall mean the statutory accounting practices prescribed or permitted by the insurance commissioner (or other similar authority) as of the Closing Date in the jurisdiction of incorporation or formation (as applicable) of an applicable Regulated Entity for the preparation of annual statements and other financial reports by insurance companies of the same type as such Regulated Entity.

"*<u>Sanctioned Country</u>*" shall mean (a) a country, a territory, or a government of a country or territory, (b) an agency of the government of a country or a territory, or (c) an organization directly or indirectly owned or controlled by a country, a territory or its government, in each case of the foregoing <u>clauses (a</u>) through (<u>c</u>), that is subject to Sanctions.

"*<u>Sanctioned Person</u>*" shall mean: (a) a Person named on the list of "Specially Designated Nationals" or any other Sanctions related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union or any European Union member state; (b) any Person operating, organized or resident in a Sanctioned Country; or (c) any Person owned or controlled by any such Person or Persons described in the foregoing <u>clauses (a</u>) or (<u>b</u>).

"*<u>Sanctions</u>*" shall mean economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by: (a) the U.S. government, including those administered by OFAC or the U.S. Department of State; (b) the United Nations Security Council; (c) the European Union; (d) any European Union member state; (e) His Majesty's Treasury of the United Kingdom; or (f) any other relevant sanctions authority. "*<u>SEC</u>*" shall mean the United States Securities and Exchange Commission.

"*<u>Second Amendment</u>*" shall mean that certain Second Amendment to Credit Agreement, dated as of the Second Amendment Effective Date, by and among the Credit Parties, the Lenders party thereto (including the Swingline Lender), the Issuing Bank, the Collateral Agent and the Administrative Agent.

"*<u>Second Amendment Effective Date</u>*" shall mean May 30, 2025.

"*<u>Secured Party Designation Notice</u>*" shall mean a notice in the form of <u>Exhibit 1.1</u> (or other writing in form and substance satisfactory to the Administrative Agent) from a Qualifying Swap Provider or a Qualifying Treasury Management Bank to the Administrative Agent that it holds Obligations entitled to share in the guaranties and collateral interests provided herein in respect of a Secured Swap Agreement or Secured Treasury Management Agreement, as appropriate.

"*<u>Secured Swap Agreement</u>*" shall mean any Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and a Qualifying Swap Provider, on the other hand. For the avoidance of doubt, a holder of Obligations in respect of a Secured Swap Agreement shall be subject to the provisions of <u>Section</u> <u>9.3</u> and <u>Section</u> <u>10.10</u>.

"*<u>Secured Swap Obligations</u>*" shall mean all obligations owing to a Qualifying Swap Provider in connection with any Secured Swap Agreement including any and all cancellations, buy backs, reversals, terminations or assignments of any Secured Swap Agreement, any and all renewals, extensions and modifications of any Secured Swap Agreement and any and all substitutions for any Secured Swap Agreement, including all fees, costs, expenses and indemnities, whether primary, secondary, direct, fixed or otherwise (including any monetary obligations incurred during the pendency of any bankruptcy or insolvency proceedings, regardless of whether allowed or allowable in such bankruptcy or insolvency proceedings), in each case, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising.

------

"*<u>Secured Treasury Management Agreement</u>*" shall mean any Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and a Qualifying Treasury Management Bank, on the other hand. For the avoidance of doubt, a holder of Obligations in respect of a Secured Treasury Management Agreement shall be subject to the provisions of <u>Section</u> <u>9.3</u> and <u>Section</u> <u>10.10</u>.

"*<u>Secured Treasury Management Obligations</u>*" shall mean all obligations owing to a Qualifying Treasury Management Bank under a Secured Treasury Management Agreement, including all fees, costs, expenses and indemnities, whether primary, secondary, direct, fixed or otherwise (including any monetary obligations incurred during the pendency of any bankruptcy or insolvency proceedings, regardless of whether allowed or allowable in such bankruptcy or insolvency proceedings), in each case, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising.

"*<u>Securities</u>*" shall mean any stock, shares, partnership interests, limited liability company interests, voting trust certificates, certificates of interest or participation in any profit-sharing agreement or arrangement (*e*.*g*., stock appreciation rights), options, warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as "securities" or any certificates of interest, shares or participations in temporary or interim certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing.

"*<u>Security Agreement</u>*" shall mean that certain Security and Pledge Agreement, dated as of the Closing Date, given by the Credit Parties, as obligors, to the Collateral Agent, for the benefit of the holders of the Obligations, and any other pledge agreements or security agreements that may be given by any Person pursuant to the terms hereof, in each case, as the same may be amended, restated, amended and restated, supplemented, replaced, and/or otherwise modified in writing from time to time.

"*<u>Securitization Transaction</u>*" shall mean any financing or factoring or similar transaction (or series of such transactions) entered by any Credit Party, any Subsidiary or any other Regulated Entity pursuant to which any such Person(s) may sell, convey or otherwise transfer, or grant a security interest in, accounts, payments, receivables, rights to future lease payments or residuals or similar rights to payment (the "*<u>Securitization Receivables</u>*") to a special purpose subsidiary or affiliate (a "*<u>Securitization</u> <u>Subsidiary</u>*") or any other Person.

"*<u>SOFR</u>*" shall mean, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator's Website on the immediately succeeding U.S. Government Securities Business Day; <u>provided</u>, <u>that</u>, if such published rate is subsequently corrected and provided by the SOFR Administrator, or on the SOFR Administrator's Website, within the *longer* of (i) one (1) hour of the time when such rate was first published, and (ii) the republication cut-off time for SOFR, if any, as specified by the SOFR Administrator in the applicable SOFR benchmark methodology, then "*SOFR*" shall instead mean such secured overnight financing rate for such Business Day subject to those corrections.

"*<u>SOFR Administrator</u>*" shall mean the FRBNY (or any successor administrator of the secured overnight financing rate).

"*<u>SOFR Administrator</u>*<u>'</u>*<u>s Website</u>*" shall mean the website of the FRBNY accessible at (as of the Closing Date) <u>https://www.newyorkfed.org</u>, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

------

"*<u>SOFR</u>*<u>-</u>*<u>Based Rate</u>*" shall mean each of Term SOFR for any Interest Period and Daily Simple SOFR.

"*<u>SOFR Borrowing</u>*" shall mean a Borrowing, the Loans in respect of which bear interest at a rate determined by reference to Term SOFR for any available Interest Period, other than pursuant to clause (c) of the definition of "*Base Rate*" above.

"*<u>SOFR Loan</u>*" shall mean a Loan bearing interest at a rate determined by reference to Term SOFR for any available Interest Period, other than pursuant to clause (c) of the definition of "*Base Rate*" above.

"*<u>SOFR Reference Rate</u>*" shall mean the rate per annum determined by the Administrative Agent as the forward-looking term rate based on SOFR for an applicable tenor.

"*<u>Solvent</u>*" or "*<u>Solvency</u>*" shall mean, with respect to any Person as of a particular date, that on such date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such Person is able to pay its debts and other liabilities, contingent obligations and other commitments as they mature in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Person does *not* intend to, and does *not* believe that it will, incur debts or liabilities beyond such Person's ability to pay as such debts and liabilities mature in their ordinary course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such Person is *not* engaged in a business or a transaction, and is *not* about to engage in a business or a transaction, for which such Person's Property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which such Person is engaged or is to engage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the fair value of the Property of such Person is *greater than* the total amount of liabilities, including, without limitation, contingent liabilities, of such Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the present fair salable value of the Property of such Person is *not less than* the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured.

In computing the amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

"*<u>Specified Credit Party</u>*" shall mean any Credit Party that is, at the time on which the Guaranty (or grant of security interest, as applicable) becomes effective with respect to a Swap Obligation, a corporation, partnership, proprietorship, organization, trust or other entity that would *not* be an "eligible contract participant" under the Commodity Exchange Act at such time but for the effect of <u>Section</u> <u>4.8</u>.

"*<u>Specified Equity Contribution</u>*" shall have the meaning provided for such term in <u>Section</u> <u>9.4(a</u>).

"*<u>Specified Transaction</u>*" shall mean any Asset Sale, any Involuntary Disposition, any Acquisition, the making of any Investment, the declaration and/or making of any Restricted Payment, the establishment and/or incurrence of any Incremental Facility, any Debt Transaction, any Equity Transaction or any other contribution of equity capital (whether in cash or otherwise), any Sale and Leaseback Transaction, any Securitization Transaction, and/or any other transaction that is subject to calculation on a "*Pro Forma Basis*" as indicated in this Agreement or any other Credit Document (or in any other agreement, document, certificate and/or instrument executed and/or delivered in connection herewith or therewith).

------

"*<u>Statutory Surplus</u>*" shall mean, as of any date of determination for any Regulated Entity, the total capital and surplus of such Regulated Entity, determined in accordance with SAP.

"*<u>Subsidiary</u>*" shall mean, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which *more than* fifty percent (50.0%) of the Voting Stock is at the time owned or controlled, directly or indirectly, by that Person, or the accounts of which would be consolidated with those of such Person in its consolidated financial statements in accordance with GAAP, if such statements were prepared as of such date, or one or more of the other Subsidiaries of that Person or a combination thereof; <u>provided</u>, <u>that</u>, (i) in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a "qualifying share" of the former Person shall be deemed to be outstanding, and (ii) notwithstanding anything to the contrary in the foregoing of this definition, each Regulated Subsidiary shall be deemed to be a Subsidiary of the Borrower. Unless otherwise expressly stated, all references to "Subsidiary" in this Agreement and each other Credit Document shall refer to a Subsidiary of the Borrower (including, for purposes of clarity, each Regulated Subsidiary).

"*<u>Subsidiary Determination Date</u>*" shall mean any date on which financial statements and/or any related Compliance Certificate are, or are required to be, delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>).

"*<u>Supported QFC</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

"*<u>Swap Agreement</u>*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, currency swap transactions, cross-currency rate swap transactions, currency options, cap transactions, floor transactions, collar transactions, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options or warrants to enter into any of the foregoing), whether or not any such transaction is governed by, or otherwise subject to, any master agreement or any netting agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any and all transactions or arrangements of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement (or similar documentation) published from time to time by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such agreement or documentation, together with any related schedules, a "*<u>Master Agreement</u>*"), including any such obligations or liabilities under any Master Agreement.

"*<u>Swap Obligation</u>*" shall mean, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a "swap" within the meaning of Section 1a(47) of the Commodity Exchange Act.

------

"*<u>Swap Termination Value</u>*" shall mean, in respect of any one or more Swap Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Agreements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any date on or after the date such Swap Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any date prior to the date referenced in <u>clause (a</u>), the amount(s) determined as the mark-to-market value(s) for such Swap Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Agreements (which may include a Lender or any Affiliate of a Lender).

"*<u>Swingline Lender</u>*" shall mean Regions Bank in its capacity as Swingline Lender hereunder, together with its permitted successors and assigns in such capacity.

"*<u>Swingline Loan</u>*" shall mean a Loan made by the Swingline Lender to the Borrower pursuant to <u>Section</u> <u>2.2</u>.

"*<u>Swingline Rate</u>*" shall mean the Base Rate *plus* the Applicable Margin applicable to Base Rate Loans (or, with respect to any Swingline Loan advanced pursuant to an Auto Borrow Agreement, such other rate as separately agreed in writing between the Borrower and the Swingline Lender).

"*<u>Swingline Sublimit</u>*" shall mean, as of any date of determination, the *lesser* of: (a) Four Million Dollars ($4,000,000); and (b) the aggregate unused amount of the Revolving Commitments then in effect.

"*<u>Synthetic Lease</u>*" shall mean a lease transaction under which the parties intend that: (a) the lease will be treated as an "operating lease" by the lessee pursuant to Statement of Financial Accounting Standards No. 13, as amended; and (b) the lessee will be entitled to various tax and other benefits ordinarily available to owners (as opposed to lessees) of like Property.

"*<u>Taxes</u>*" shall mean all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"*<u>Term Loans</u>*" shall mean, collectively, the Term Loan A, the Delayed Draw Term Loan, and any Incremental Term Loans.

"*<u>Term Loan A</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.1(b</u>).

"*<u>Term Loan A Commitment</u>*" shall mean, with respect to each Lender as of the Closing Date, the obligation of such Lender to advance its respective portion of principal under the Term Loan A on the Closing Date pursuant to <u>Section</u> <u>2.1(b</u>), in an aggregate original principal amount advanced by such Lender on the Closing Date equal to the applicable amount that was set forth with respect to such Lender as such Lender's "*Term Loan A Commitment*" on <u>Appendix A</u> (as such Appendix was in effect on the Closing Date).

"*<u>Term Loan A Commitment Percentage</u>*" shall mean, with respect to each Lender at any time, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the *sum of* (i) the amount of such Lender's Term Loan A Commitment (if any) in effect at such time, *plus* (ii) the aggregate principal balance of the portion of the Term Loan A advanced by such Lender that is outstanding at such time; and (b) the *denominator* of which is the *sum of* (i) the Aggregate Term Loan A Commitment Amount in effect at such time, *plus* (ii) the aggregate outstanding principal balance of the Term Loan A at such time. The Term Loan A Commitment Percentages of each Lender as of the Closing Date and as of the Third Amendment Effective Date are set forth on <u>Appendix A</u>.

------

"*<u>Term Loan Commitments</u>*" shall mean, collectively, the Term Loan A Commitments, the DDTL Commitments and any Incremental Term Loan Commitments.

"*<u>Term SOFR</u>*" means, as of any date of determination, for any calculations with respect to a SOFR Loan and/or a SOFR Borrowing and/or any determination of the Base Rate pursuant to clause (c) of the definition of "*Base Rate*" above, the rate per annum equal to the SOFR Reference Rate for a forward-looking tenor comparable to the then applicable or selected (as applicable) Interest Period for such SOFR Loan or SOFR Borrowing (or for a forward-looking one (1) month tenor, in the case of any determination of the Base Rate pursuant to clause (c) of the definition of "*Base Rate*" above), determined as of the date (such date, a "*<u>Periodic Term SOFR Determination Date</u>*") that is two (2) U.S. Government Securities Business Days *prior* to the first (1<sup>st</sup>) day of such Interest Period, as such rate is published by the Term SOFR Administrator on such Periodic Term SOFR Determination Date; <u>provided</u>, <u>that</u>, (a) if, as of 11:00 a.m. (New York City time) on any Periodic Term SOFR Determination Date, the SOFR Reference Rate for the applicable tenor has *not* been published by the Term SOFR Administrator, then "*Term SOFR*" shall instead mean the SOFR Reference Rate for such applicable tenor as published by the Term SOFR Administrator on the first (1<sup>st</sup>) preceding U.S. Government Securities Business Day for which such SOFR Reference Rate for such applicable tenor was published by the Term SOFR Administrator, subject to <u>Section</u> <u>3.1</u>, and (b) if, at any time, Term SOFR (determined in accordance with the foregoing of this definition of "*Term SOFR*", including in accordance with the foregoing <u>clause (a</u>) of this proviso) is *less than* the Floor, then Term SOFR shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents. Any change(s) in Term SOFR for any Interest Period due to any change(s) in the SOFR Reference Rate for a comparable tenor shall be effective from, and including, the effective date of any such change(s) in such SOFR Reference Rate, without further notice to any Credit Party, any Subsidiary, any other Regulated Entity, any other party to this Agreement or any other Credit Document, or any other Person.

"*<u>Term SOFR Administrator</u>*" means, the CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the SOFR Reference Rate for any applicable tenor selected by the Administrative Agent in its reasonable discretion).

"*<u>Third Amendment</u>*" shall mean that certain Third Amendment to Credit Agreement, dated as of the Third Amendment Effective Date, by and among the Credit Parties, the Lenders party thereto (including the Swingline Lender), the Issuing Bank, the Collateral Agent and the Administrative Agent.

"*<u>Third Amendment Effective Date</u>*" shall mean August 15, 2025.

"*<u>Threshold Amount</u>*" shall mean One Million Dollars ($1,000,000).

"*<u>Title Policy</u>*" shall have the meaning specified for such term in <u>Section</u> <u>7.11(b)(iii</u>).

"*<u>Total Credit Exposure</u>*" shall mean, with respect to any Lender at any time, the *sum of*: (a) the *sum of* the aggregate outstanding principal balances of the respective portions of each then outstanding Term Loan advanced by such Lender, taken together, at such time; *plus* (b) the unused amount of such Lender's respective Revolving Commitment in effect at such time; *plus* (c) the unused amount of such Lender's respective DDTL Commitment in effect at such time; *plus* (d) such Lender's Revolving Credit Exposure at such time.

------

"*<u>Trailing Period</u>*" shall mean, as of any date of determination, the period consisting of the four (4) consecutive full Fiscal Quarters most recently ended as of such date of determination.

"*<u>Treasury Management Agreement</u>*" shall mean any agreement governing the provision of treasury or cash management services, including deposit accounts, funds transfer, automated clearinghouse, commercial credit cards, purchasing cards, cardless e-payable services, debit cards, stored value cards, zero balance accounts, returned check concentration, controlled disbursement, lockbox, account reconciliation and reporting and trade finance services.

"*<u>Type</u>*", when used in reference to a Loan or Borrowing, shall refer to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to Term SOFR for any Interest Period (other than pursuant to clause (c) of the definition of "*Base Rate*" above) or the Base Rate (including, for the avoidance of doubt, pursuant to clause (c) of the definition of "*Base Rate*" above).

"*<u>UCC</u>*" shall mean the Uniform Commercial Code (or any similar or equivalent legislation) as in effect in the State of New York (or any other applicable jurisdiction, as the context may require).

"*<u>UK Financial Institution</u>*" shall mean any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"*<u>UK Resolution Authority</u>*" shall mean the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"*<u>United States</u>*" or "*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u>" shall mean the United States of America.

"*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Government Securities Business Day</u>*" shall mean any day, other than: (a) a Saturday or a Sunday; or (b) any day on which SIFMA recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in U.S. government securities.

"*<u>U</u>*<u>.</u> *<u>S</u>*<u>.</u> *<u>Person</u>*" shall mean any Person that is a "United States person" as defined in Section 7701(a)(30) of the Internal Revenue Code.

"*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Special Resolution Regime</u>*" shall have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

"*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Tax Compliance Certificate</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.3(f</u>).

"*<u>Unadjusted Benchmark Replacement</u>*" shall mean the applicable Benchmark Replacement without giving effect to the Benchmark Replacement Adjustment.

"*<u>Voting Stock</u>*" shall mean, with respect to any Person, Equity Interests issued by such Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even though the right so to vote has been suspended by the happening of such a contingency.

------

"*<u>Weighted Average Life</u>*" shall mean, when applied to any Indebtedness as of any date of determination, the number of years obtained by *dividing*: (a) the *sum of* the products obtained by *multiplying* (i) the amount of each then -remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof, *by* (ii) the number of years (calculated to the nearest one-twelfth (1/12)) that will elapse between such date and the making of such payment; *by* (b) the then-outstanding principal amount of such Indebtedness.

"*<u>Wholly Owned Subsidiary</u>*" shall mean, as of any date of determination, with respect to any Person, any Subsidiary of such Person of which all of the Equity Interests (other than, in the case of a Foreign Subsidiary, Equity Interests in such Foreign Subsidiary issued to (i) qualify directors, to the extent required by Applicable Law, or (ii) satisfy other requirements of Applicable Law with respect to the ownership of Equity Interests in such Foreign Subsidiary) are, as of such date, directly or indirectly owned and controlled by such Person or by one (1) or more other Wholly Owned Subsidiaries of such Person (or by a combination of the foregoing). Unless otherwise expressly stated, all references to "Wholly Owned Subsidiary" in this Agreement and each other Credit Document shall refer to a Wholly Owned Subsidiary of the Borrower (including, for purposes of clarity, each Regulated Subsidiary that is a Wholly Owned Subsidiary of the Borrower).

"*<u>Withholding Agent</u>*" shall mean any Credit Party and the Administrative Agent.

"*<u>Write</u>*<u>-</u>*<u>Down and Conversion Powers</u>*" shall mean: (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule; and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution, or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that Person or any other Person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it, or to suspend any obligation in respect of that liability, or any of the powers under that Bail-In legislation that are related or ancillary to any of those powers.

Section 1.2 <u>Accounting Terms</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise expressly provided in this Agreement or any other Credit Document, all accounting terms used in this Agreement and the other Credit Documents shall be interpreted, all accounting determinations under this Agreement and the other Credit Documents shall be made, and all financial statements required to be delivered under this Agreement and the other Credit Documents shall be prepared, in each case of the foregoing, in accordance with GAAP or SAP (as applicable), as in effect from time to time, applied on a basis consistent with the most recent consolidated financial statements of the Credit Parties and Subsidiaries delivered pursuant to <u>Section</u> <u>7.1(b</u>) (or, if, at any time, no such financial statements have been delivered pursuant to <u>Section</u> <u>7.1(b</u>), then on a basis consistent with the Annual Financial Statements); <u>provided</u>, <u>that</u>, if the Borrower notifies the Administrative Agent that the Borrower wishes to amend any Financial Covenant to eliminate the effect of any change(s) in GAAP or SAP (as applicable) on the operation of such Financial Covenant (or, if the Administrative Agent notifies the Borrower that the Required Lenders wish to amend <u>Section</u> <u>8.8</u> for such purpose), then the Credit Parties' compliance with such Financial Covenant shall be determined on the basis of GAAP or SAP (as applicable) as in effect on the date immediately *prior* to the date on which the relevant change(s) in GAAP or SAP (as applicable) became effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Borrower and the Required Lenders.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, at any time, any change in GAAP or SAP, or in the consistent application thereof, would affect the computation of any Financial Covenant or any other requirement set forth in any Credit Document, and either the Borrower or the Required Lenders shall object in writing to determining compliance based on such change, then the Lenders and the Borrower shall negotiate in good faith to amend such Financial Covenant, other requirement or applicable defined term(s) to preserve the original intent thereof in light of such change to GAAP or SAP (as applicable), <u>provided</u>, <u>that</u>, until so amended such computations shall continue to be made on a basis consistent with the most recent financial statements delivered pursuant to <u>Section</u> <u>7.1</u> as to which no such objection has been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in the foregoing or elsewhere in this Agreement or any other Credit Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all terms of an accounting or financial nature used in this Agreement or any other Credit Document shall be construed, and all computations of amounts and ratios referred to in this Agreement or any other Credit Document shall be made, in each case of the foregoing, without giving effect to any election under Accounting Standards Codification Section 825–10 (or any other Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of any Credit Party, any Subsidiary or any other Regulated Entity at "fair value" (as defined therein); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for purposes of determining compliance with any covenant (including the computation of any Financial Covenant) set forth in this Agreement or any other Credit Document, Indebtedness of the Credit Parties, Subsidiaries and other Regulated Entities shall be deemed to be carried at one hundred percent (100.0%) of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470–20 on financial liabilities shall be disregarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary in the foregoing, the parties hereto acknowledge and agree that (A) all calculations in accordance with <u>Section</u> <u>8.8</u> of the Financial Covenants (but *not* including, for purposes of clarity, the testing of any availability, basket or other condition set forth in any Article or Section of this Agreement or any other Credit Document other than in <u>Section</u> <u>8.8</u> that requires, by its terms, that any Financial Covenant measurement(s) be calculated on a Pro Forma Basis), and (B) all calculations of the Consolidated Leverage Ratio for purposes of determining the Applicable Margin, in each case of the foregoing <u>clauses (c)(A</u>) and (<u>c)(B</u>), shall be made on a Pro Forma Basis *solely* with respect to (i) any Asset Sale of all of the outstanding Equity Interests in, or all, or substantially all, of the Property of, any Credit Party, any Subsidiary or any other Regulated Entity, (ii) any Asset Sale of a line of business or division of any Credit Party, any Subsidiary or any other Regulated Entity, or (iii) any Acquisition (including any related incurrence or assumption of Indebtedness), in each case of the foregoing <u>clauses (c)(i</u>) through (<u>c)(iii</u>), consummated during the applicable period of measurement, and no other Specified Transactions consummated during the applicable period of measurement shall be given effect on a Pro Forma Basis for purposes of such specified calculations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For purposes of determining compliance with any applicable basket permission(s) set forth in <u>Article 8</u> with respect to any item incurred, granted, paid, invested, made or disposed of (as applicable) in reliance on such basket permission(s) that is denominated in any currency other than Dollars, the amount of such item shall be deemed to be the Dollar-equivalent amount (as determined by the Administrative Agent) of the amount (denominated in a currency other than Dollars) of such item. In the event that any basket permission set forth in <u>Article 8</u> is exceeded *solely* as a result of fluctuations, after the last time that such basket permission was utilized or relied on by a Credit Party, Subsidiary or other Regulated Entity, between the amount (denominated in a currency other than Dollars) of any item incurred, granted, paid, invested, made or disposed of (as applicable) measured as of such time, on the one hand, and the Dollar-equivalent amount thereof (as determined by the Administrative Agent), on the other hand, then such basket permission shall *not* be deemed to have been exceeded *solely* as a result of such currency exchange rate fluctuations.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything to the contrary in this Agreement or any other Credit Document, any calculation of "extraordinary gains", "extraordinary losses" and/or "extraordinary charges" shall, in each case for all purposes of this Agreement and the other Credit Documents (including, without limitation, for any determination of Consolidated EBITDA or Consolidated Net Income), be determined by reference to GAAP as in effect immediately *prior* to giving effect to FASB's Accounting Standards Update No. 2015–01.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event that any Lien, any Indebtedness (whether tested at the time of initial incurrence, upon application of all, or any portion, of the proceeds thereof, or otherwise), any Asset Sale or other disposition, any Acquisition or other Investment, any Restricted Payment, any Affiliate transaction, any restrictive agreement and/or any prepayment of Indebtedness (as applicable), or any other transaction that is subject to any of the negative covenant restrictions set forth in <u>Article 8</u>, meets the criteria of one (1) or more of the categories of transactions then expressly permitted pursuant to any clause of the applicable Section(s) of <u>Article 8</u>, then such transaction (or portion thereof, as applicable) at any time shall be permitted under one (1) or more of such clauses of such Section(s) as the Borrower may determine in its sole discretion at such time (unless otherwise expressly and specifically restricted pursuant to the terms of this Agreement), and, for the avoidance of doubt, unless otherwise expressly and specifically restricted pursuant to the terms of this Agreement, the Borrower may subsequently reclassify or divide (as applicable) such transaction (or portion thereof, as applicable) among such permitting clauses of such applicable Section(s) and shall only be required, at any given time, to count such transaction (or portion thereof, as applicable) as permitted in reliance on one (1) of such permitting clauses of such applicable Section(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) For purposes of determining the amount of any Earn Out Obligations and/or other deferred purchase price obligations of any Person for purposes of this Agreement and the other Credit Documents, the amount of such Earn Out Obligations and/or other deferred purchase price obligations shall be deemed to be the aggregate liability in respect thereof required to be reflected as a liability on the balance sheet of such Person in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything to the contrary in this Agreement or any other Credit Document, all liability amounts shall be determined *excluding* any liability relating to any operating lease, all asset amounts shall be determined *excluding* any right-of-use assets relating to any operating lease, all amortization amounts shall be determined *excluding* any amortization of a right-of-use asset relating to any operating lease, and all interest amounts shall be determined *excluding* any deemed interest comprising a portion of fixed rent payable under any operating lease, in each case of the foregoing, to the extent that such liability, asset, amortization or interest pertains to an operating lease under which the covenantor or a member of its consolidated group is the lessee and would *not* have been accounted for as such under GAAP as in effect on December 31, 2015.

Section 1.3 <u>Rules of Interpretation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Terms Generally</u>. The definitions of terms used in this Agreement and the other Credit Documents shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "*include*", "*includes*" and "*including*" shall be deemed to be followed by the phrase ", *without limitation*,". The word "*will*" shall be construed to have the same meaning and effect as the word "*shall*". In the computation of periods of time from a specified date to a later specified date, unless otherwise specified, the word "*from*" shall mean "*from*, *and including*," and the word "*to*" shall mean "*to*, *but excluding*,". In addition, unless the context otherwise requires:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any definition of, or reference to, any agreement, instrument or other document (including any Organizational Document) shall be construed as referring to such agreement, instrument or other document as it was originally executed, or as it may from time to time be amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing, as applicable (subject to any restrictions on such amendments, restatements, amendments and restatements, supplements, increases, extensions, refinancings, renewals, replacements, and/or other written modifications as set forth in this Agreement or any other Credit Document);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any reference in any Credit Document to any Person shall be construed to include such Person's successors and permitted assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the words "*hereof*", "*herein*" and "*hereunder*", and words of similar import, when used in any Credit Document, shall be construed to refer to such Credit Document as a whole, and *not* to any particular provision hereof or thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all references in any Credit Document to Articles, Sections, Appendices, Exhibits and/or Schedules shall be construed to refer to Articles, Sections, Appendices, Exhibits and/or Schedules, as applicable, to or of the Credit Document in which such reference appears;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all references contained in a Section, clause, sub-clause or definition to clauses, sub-clauses or definitions occurring "above" or "below", or to any "foregoing", "preceding" or "proceeding" clauses, sub-clauses or definitions, in each case of the foregoing, shall refer to the applicable clause or sub-clause of, or definition set forth in, such Section or such clause, sub-clause or definition, as the case may be, and all general references contained in a Section, or a clause or sub-clause thereof, to "the above" or "the below" shall refer, collectively, to all provisions of such Section, clause or sub-clause, as applicable, occurring prior to or after, as applicable, the occurrence of such general reference;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all references herein to sums denominated in Dollars or dollars, or with the symbol "$", refer to the lawful currency of the United States, unless such reference specifically identifies another currency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any reference in any Credit Document to a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term shall be deemed to apply to a division of or by a limited liability company or a limited partnership, or an allocation of assets to a series of a limited liability company or a limited partnership (or the unwinding of such a division or allocation), as if it were a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term, as applicable, to, of, or with a separate Person, and any division of a limited liability company or a limited partnership shall constitute a separate Person hereunder or thereunder (and each division of any limited liability company or limited partnership that is a subsidiary, joint venture, or any other like term shall also constitute such a Person);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any definition of, or reference to, any Applicable Law shall include all statutory and regulatory rules, regulations, orders and provisions consolidating, amending, replacing, and/or interpreting such Applicable Law, and any definition of, or reference to, any Applicable Law shall, unless otherwise expressly specified, refer to such Applicable Law as amended, modified, and/or supplemented from time to time;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the words "*asset*" and "*property*" shall be construed to have the same meaning and effect, and to refer to any and all real and personal, tangible and intangible Properties, including, without limitation, cash, securities, accounts and contract rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) unless otherwise expressly specified, all references in this Agreement or any other Credit Document to times of day shall be references to Eastern time (daylight or standard, as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) the terms "*lease*" and "*license*" shall include any sub-lease and/or any sub-license, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) all terms (whether or not capitalized in occurrence) used in this Agreement and the other Credit Documents that are *not* specifically defined in this Agreement or any other Credit Document, or under GAAP, but are defined in the UCC, shall have the respective meanings provided for such terms in the UCC, with the term "*instrument*" having the meaning provided for such term in Article 9 of the UCC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) (A) whenever the phrase "appraised value" (or words of like or similar import) is used in this Agreement or any other Credit Document with respect to any Real Estate Asset, such "appraised value" (or words of like or similar import) shall mean the value of such Real Estate Asset determined using an Appraisal; and (B) whenever the phrases "updated Appraisal", "updated appraisal" or "an update thereof" (or words of like or similar import) relating to an Appraisal or other appraisal are used in this Agreement or any other Credit Document, any such "update" shall be in form and substance, and from a third-party provider, reasonably acceptable to the Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) whenever the phrase "*to the knowledge of*" (or words of like or similar import) relating to the knowledge of any Credit Party, any Subsidiary or any other Regulated Entity is used in this Agreement or any other Credit Document, such phrase shall mean, and refer to, the actual knowledge of any Authorized Officer of such Person(s) after due inquiry; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) for purposes of clarity and unless the context expressly provides otherwise, any references in this Agreement or any other Credit Document to a Regulated Entity that is *not* a Subsidiary (or to a Regulated Entity that is *not* a Regulated Subsidiary) shall be, and are intended as, a reference to one (1) or more Qualifying Reciprocal Entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Letter of Credit Amounts</u>. Unless otherwise expressly specified in this Agreement or another Credit Document, the amount of a Letter of Credit, at any time, shall be deemed to be the stated amount of such Letter of Credit in effect at such time (after giving effect to any actual permanent reductions in the stated amount of such Letter of Credit pursuant to the terms of such Letter of Credit); <u>provided</u>, <u>that</u>, with respect to any Letter of Credit that, by its terms or the terms of any other Issuer Document related thereto, provides for one (1) or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit, after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Section Headings</u>. Section headings in this Agreement and the other Credit Documents are included herein or therein (as applicable) for convenience of reference only and shall *not* constitute a part hereof or thereof for any other purpose, or otherwise be given any substantive effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Informed Negotiation</u>. This Agreement and the other Credit Documents are the result of negotiations among, and have been reviewed by counsel to, among others, the Agent and each of the Credit Parties, and this Agreement, and each of the other Credit Documents, are the product of discussions and negotiations among such parties. Accordingly, this Agreement and the other Credit Documents are *not* intended to be construed against the Agent, the Issuing Bank or any of the Lenders merely on account of any such Person's (or its counsel's) involvement in the preparation and/or closing of this Agreement and/or any other Credit Document.

Section 1.4 <u>Rules of Interpretation with Respect to Regulated Entities</u>. Should an applicable Governmental Authority notify any Credit Party or Subsidiary of a potentially actionable issue or concern related to control of a Regulated Entity or determine that all or any of the Lenders, the Administrative Agent and/or the Collateral Agent is or are acting as control persons, as defined or used under the Florida Insurance Code or other Applicable Laws, of any Regulated Entity due to one or more provisions of this Agreement, the parties agree to promptly further negotiate in good faith to modify this Agreement such that none of the Lenders, the Administrative Agent and the Collateral Agent are considered by such Governmental Authority to be control persons of the Regulated Entities and to effect the original intent of the parties as closely as possible in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

Section 1.5 <u>Classifications of Loans and Borrowings</u>. For purposes of this Agreement and the other Credit Documents, Loans may be classified and referred to by Class (*e*.*g*., a "*Revolving Loan*", the "*Term Loan A*" or the "*Delayed Draw Term Loan*"), by Type (*e*.*g*., a "*SOFR Loan*" or a "*Base Rate Loan*"), or by Class and Type (*e*.*g*., a "*Revolving SOFR Loan*"). Borrowings also may be classified and referred to by Class (*e*.*g*., a "*Revolving Borrowing*"), by Type (*e*.*g*., a "*SOFR Borrowing*" or a "*Base Rate Borrowing*"), or by Class and Type (*e*.*g*., a "*Revolving SOFR Borrowing*").

Section 1.6 <u>Cashless Rollovers</u>. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, to the extent that any Lender agrees to extend the maturity date of, or replaces, renews and/or refinances any of, its then-existing Loans pursuant to any Borrowing under an Incremental Facility and/or any loans incurred under a new credit facility (including, without limitation, a new credit facility documented as an amendment and restatement of this Agreement), in each case of the foregoing, to the extent that such extension, replacement, renewal and/or refinancing is effected by means of a "cashless roll" by such Lender, then such extension, replacement, renewal and/or refinancing shall be deemed to comply with any requirement(s) under this Agreement or any other Credit Document that any related payment(s) to be made in effectuating such extension, replacement, renewal and/or refinancing be made "in Dollars", "in immediately available funds", "in cash" or any other similar requirement.

Section 1.7 <u>Interest Rate Disclosure</u>. The Administrative Agent does *not* warrant or accept responsibility for, and shall *not* have any liability whatsoever with respect to: (a) the continuation, administration, submission and/or calculation of, or any other matter related to, any of the Base Rate, the SOFR Reference Rate (for any applicable tenor) and/or any SOFR-Based Rate (for any Interest Period, as applicable), or any component definition used or referred to in, or any rate(s) used or referred to in, the definitions of any of the foregoing in <u>Section</u> <u>1.1</u>, or for any alternative, successor or replacement rate thereto (including, without limitation, any Benchmark Replacement), including whether the composition and/or characteristics of any such actual or proposed alternative, successor or replacement rate (including, without limitation, any Benchmark Replacement) is or will be similar to, or produces or will produce the same or substantially equivalent value or economic equivalence of, or has or will have the same or a

------

comparable volume or liquidity as, any of the Base Rate, the SOFR Reference Rate (for any applicable tenor), any SOFR-Based Rate (for any Interest Period, as applicable) and/or any other Benchmark prior to its discontinuance or unavailability; or (b) the effect, implementation and/or composition of any Conforming Changes. The Administrative Agent, together with its Affiliates and other related entities, may engage in transactions that affect the calculation of any of the Base Rate, the SOFR Reference Rate (for any applicable tenor), any SOFR-Based Rate (for any Interest Period, as applicable), any alternative, successor or replacement rate of any of the foregoing (including, without limitation, any Benchmark Replacement), and/or any relevant adjustments to any of the foregoing, in any such case of the foregoing, in a manner adverse to the Borrower and the other Credit Parties. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain any of the Base Rate, the SOFR Reference Rate (for any applicable tenor), any SOFR-Based Rate (for any Interest Period, as applicable), and/or any other Benchmark, in each case of the foregoing, pursuant to the terms of this Agreement, and the Administrative Agent shall have no liability whatsoever to any Credit Party, any Subsidiary, any other Regulated Entity, any Lender and/or any other Person for damages of any kind, including direct or indirect, special, punitive, incidental and/or consequential damages, costs, losses and/or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or any component thereof) provided by any such information source or service.

**Article 2** 

**<u>LOANS AND LETTERS OF CREDIT</u>**

Section 2.1 <u>Revolving Loans and Term Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans</u>. Subject to the terms and conditions set forth herein (including the conditions precedent to Borrowing set forth in <u>Section</u> <u>5.2</u>), each of the Lenders hereby severally agrees to advance its respective Revolving Commitment Percentage of revolving loans (each such loan, a "*<u>Revolving Loan</u>*") to the Borrower, in Dollars from time to time during the Revolver Availability Period, in an aggregate principal amount outstanding at any time for each Lender up to, but *not exceeding*, the amount of such Lender's respective Revolving Commitment; <u>provided</u>, <u>that</u>, immediately after giving effect to the Borrowing of any Revolving Loan, (i) the Aggregate Revolving Credit Exposure shall *not exceed* the Aggregate Revolving Commitment Amount, and (ii) the Revolving Credit Exposure of any Lender shall *not exceed* the amount of such Lender's respective Revolving Commitment. Revolving Loans may be disbursed from time to time during the Revolver Availability Period, and may be outstanding from time to time, as Base Rate Loans or SOFR Loans (or a combination thereof), as the Borrower may request in accordance with this Agreement. Revolving Loans borrowed pursuant to this clause (a) may be repaid, in whole or in part, and re-borrowed from time to time during the Revolver Availability Period without premium or penalty (subject to <u>Section</u> <u>3.1(c</u>)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term Loan A</u>. Each of the Lenders severally agreed to advance their respective Term Loan A Commitment Percentages of a term loan (the "*<u>Term Loan A</u>*") to the Borrower, in Dollars in a single disbursement on the Closing Date, in an original principal amount for each Lender equal to the amount of such Lender's respective Term Loan A Commitment in effect on the Closing Date. The Term Loan A was disbursed on the Closing Date, and may be outstanding from time to time thereafter, as Base Rate Loans or SOFR Loans (or a combination thereof), as the Borrower may request in accordance with this Agreement. Amounts repaid on the Term Loan A may *not* be reborrowed.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delayed Draw Term Loan</u>. Subject to the terms and conditions set forth herein (including the conditions precedent to Borrowing set forth in <u>Section</u> <u>5.2</u>), each of the Lenders hereby severally agrees to advance their respective DDTL Commitment Percentage of a delayed draw term loan (the "*<u>Delayed Draw Term Loan</u>*") to the Borrower, in Dollars in up to five (5) separate advances during the DDTL Availability Period, in an aggregate original principal amount for each Lender (for all advances under the Delayed Draw Term Loan, taken together) of *not greater than* the amount of such Lender's respective DDTL Commitment. The Delayed Draw Term Loan may be disbursed from time to time during the DDTL Availability Period, and may be outstanding from time to time during the term of this Agreement, as Base Rate Loans or SOFR Loans (or a combination thereof), as the Borrower may request in accordance with this Agreement. Amounts repaid on the Delayed Draw Term Loan may *not* be reborrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Borrowing Mechanics</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All Term Loans and, except pursuant to <u>Section</u> <u>2.2(b)(iii</u>), all Revolving Loans shall be made in an aggregate minimum amount of Five-Hundred Thousand Dollars ($500,000) and, if greater, in an integral multiple of One-Hundred Thousand Dollars ($100,000) in excess thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Whenever the Borrower desires that the Lenders make a Term Loan or a Revolving Loan, the Borrower shall deliver to the Administrative Agent a fully executed Funding Notice by *no later than* (A) 1:00 p.m. (Eastern time) *at least* three (3) Business Days in advance of the proposed Credit Date, in the case of a SOFR Loan, and (B) 1:00 p.m. (Eastern time) *at least* one (1) Business Day in advance of the proposed Credit Date, in the case of a Base Rate Loan (<u>provided</u>, <u>that</u>, a Funding Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Funding Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed). Except as otherwise provided herein, any Funding Notice for any Loans that are SOFR Loans shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to make a borrowing in accordance therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notice of receipt of each Funding Notice in respect of each Revolving Loan or Term Loan, together with the amount of each Lender's Commitment Percentage of the relevant Class in respect thereof, if any, together with the applicable interest rate, shall be provided by the Administrative Agent to each applicable Lender by telefacsimile with reasonable promptness, but (<u>provided</u>, <u>that</u>, the Administrative Agent shall have received such notice by 1:00 p.m. (Eastern time)) by *not later than* 4:00 p.m. (Eastern time) on the same day as the Administrative Agent's receipt of such notice from the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Each Lender shall make its respective Commitment Percentage of the requested Loan available to the Administrative Agent by *not later than* 11:00 a.m. (Eastern time) on the applicable Credit Date by wire transfer of same day funds in Dollars, at the Administrative Agent's Principal Office. Except as provided herein, upon satisfaction or waiver of the applicable conditions precedent specified herein, the Administrative Agent shall make the proceeds of such Credit Extension available to the Borrower on the applicable Credit Date by causing an amount of same day funds in Dollars equal to the proceeds of all Loans received by the Administrative Agent in connection with the Credit Extension from the Lenders to be credited to the account of the Borrower at the Administrative Agent's Principal Office (or to such other account as may be designated in writing to the Administrative Agent by the Borrower).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Incremental Facilities</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the terms and conditions set forth in this Agreement, the Borrower shall have the right, from time to time upon *at least* ten (10) Business Days' prior written notice to the Administrative Agent (or such shorter period of notice as the Administrative Agent may agree in its sole discretion), to (I) increase the Aggregate Revolving Commitment Amount, (II) increase the Aggregate Term Loan A Commitment Amount, and/or (III) increase the Aggregate DDTL Commitment Amount, and/or (IV) establish one (1) or more additional term loans of a separate Class, subject, however, in any such case of the foregoing <u>clauses (e)(i)(I</u>) through (<u>e)(i)(IV</u>), to the satisfaction of each of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the aggregate original principal or committed amount of all such Incremental Facilities, taken together, shall *not exceed* the Incremental Cap in effect at the time of the establishment and/or incurrence (as applicable) of any Incremental Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) each Incremental Facility shall be in a minimum principal or committed amount of Five Million Dollars ($5,000,000), and, if greater, in an integral multiple of Five-Hundred Thousand Dollars ($500,000) in excess thereof (or such lesser amounts as the Administrative Agent may agree in its sole discretion);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the establishment and incurrence (as applicable) of each Incremental Facility shall be contingent upon the receipt by the Administrative Agent of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) additional Commitments of the applicable Class in a corresponding amount to such requested increase in the aggregate amount of Commitments of such Class, or Incremental Term Loan Commitments in a corresponding amount to the aggregate original principal amount of such requested Incremental Term Loan of a separate Class, in each case of the foregoing of this <u>clause (e)(i)(C)(I</u>), from either existing Lenders or from one (1) or more other financial institutions (each such other financial institution, an "*<u>Additional Incremental Lender</u>*") that: (1) qualifies as an Eligible Assignee; and (2) is approved (such approval *not* to be unreasonably withheld, conditioned or delayed) by the Administrative Agent and, in the case of any increased or new Commitment in respect of an Incremental Revolver Increase, each of the Issuing Bank and the Swingline Lender, or from a combination of existing Lenders and/or Additional Incremental Lenders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) documentation from each existing Lender or Additional Incremental Lender providing a Commitment in respect of such Incremental Facility, in form and substance reasonably acceptable to the Administrative Agent, evidencing its: (I) agreement to provide such Commitment; and (II) acceptance of its obligations as a Lender under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the Administrative Agent shall have received all customary officer's certificates, legal opinions and other documents (including, without limitation, resolutions of the board of directors or managers (or equivalent governing body) of each Credit Party and customary opinions of counsel to the Credit Parties, if required to be provided by the existing Lenders and Additional Incremental Lenders providing Commitments in respect of such Incremental Facility) it may reasonably request relating to the corporate, limited liability company or other necessary authority for the establishing of such Incremental Facility and the validity thereof, and any other matters relevant thereto, all in form and substance reasonably satisfactory to the Administrative Agent;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) the Borrower shall have delivered to the Administrative Agent a certificate, dated as of the date of establishment and/or incurrence (as applicable) of such Incremental Facility, and duly executed by an Authorized Officer of the Borrower, certifying, on behalf of the Borrower and each other Credit Party, that, both immediately *before* and immediately *after* giving effect to the establishment and/or incurrence (as applicable) of such Incremental Facility and the consummation of any related transactions (including, without limitation, any Acquisitions) substantially contemporaneously in connection therewith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) no Default or Event of Default shall have occurred and be continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) all representations and warranties of each Credit Party set forth in the Credit Documents (including, without limitation, the representations and warranties of each Credit Party set forth in <u>Article 6</u>) are true and correct, in all material respects (or, if such representation and warranty is qualified by materiality or Material Adverse Effect, in all respects), on, and as of, such date, except to the extent that such representations and warranties specifically relate to an earlier date, in which case, they are true and correct, in all material respects (or, if such representation and warranty is qualified by materiality or Material Adverse Effect, in all respects), as of such earlier date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) the Collateral Agent shall have received such amendments to the Collateral Documents as the Collateral Agent shall request in order to cause the Collateral Documents to secure the Obligations (in a manner consistent with the terms of the Collateral Documents as in effect immediately *prior* to the date of establishment and/or incurrence (as applicable) of such Incremental Facility) after giving effect to the establishment and/or incurrence (as applicable) of such Incremental Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) if any Revolving Loans are outstanding at the time of establishment of any Incremental Revolver Increase, then the Borrower shall, if applicable, prepay one (1) or more of the then outstanding Revolving Loans (any such prepayment to be subject to <u>Section</u> <u>3.1(c</u>)) in an amount necessary such that, after giving effect to such Incremental Revolver Increase, each Lender will hold its respective *pro rata* share of outstanding Revolving Loans; <u>provided</u>, <u>that</u>, any such prepayment may be effected, in whole or in part, pursuant to a cashless rollover in accordance with <u>Section</u> <u>1.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any increased or new Commitments established in respect of an existing (as of the date that is immediately *prior* to the date of establishment of such Incremental Facility) Class of Commitments shall have terms substantially identical to those for Commitments of such Class under this Agreement as of the date that is immediately *prior* to the date of establishment of such Incremental Facility, except for fees payable to the Lenders providing increased or new Commitments in respect of such Incremental Facility;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) the terms and provisions applicable to any Incremental Term Loan of a separate Class shall (to the extent *not* in conflict with the terms and provisions of this Agreement pertaining to Incremental Term Loans) be as set forth in the applicable Incremental Facility Agreement establishing such Incremental Term Loan, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) such Incremental Term Loan shall have a final maturity date that is coterminous with, or later than, the Latest Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) the Weighted Average Life of such Incremental Term Loan shall *not* be *less than* the Weighted Average Life of any other then-outstanding Term Loan (including of the Term Loan A, the Delayed Draw Term Loan and any other then outstanding Incremental Term Loan); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) the All-In Yield applicable to any Incremental Term Loan shall *not* be *more than* one-half of one percent (0.50%) *higher than* the corresponding All-In Yield applicable to any other then -outstanding Term Loan (including the Term Loan A, the Delayed Draw Term Loan and any other then outstanding Incremental Term Loan) (it being understood and agreed that interest on any other then-outstanding Term Loan may be increased to the extent necessary to satisfy this requirement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J) the Borrower shall have paid any applicable upfront and/or arrangement fee(s) in connection with the establishment and/or incurrence (as applicable) of such Incremental Facility, as agreed by the Borrower in writing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K) except to the extent otherwise required or expressly permitted pursuant to this Agreement (including, for purposes of clarity, the foregoing of this <u>clause (e)(i</u>)), all other terms and conditions of any Incremental Term Loan of a Class separate from the Term Loan A and the Delayed Draw Term Loan shall be reasonably satisfactory to the Administrative Agent and the Collateral Agent.

Notwithstanding anything to the contrary in the foregoing of this <u>clause (e)(i</u>): (I) neither Administrative Agent, the Collateral Agent nor any Lender, nor any Affiliate of any of the foregoing (nor any of their respective successors or assigns), shall have any obligation to agree to increase any Class of its Commitments or any of its other obligations under this Agreement and the other Credit Documents, or to otherwise provide all, or any portion, of any Incremental Facility, and any decision by a Lender to agree to any such increase or to otherwise provide all, or any portion, of an Incremental Facility shall be made in its sole and absolute discretion, independently from, and without reliance upon, any other existing Lender or Additional Incremental Lender; and (II) neither any Arranger, the Administrative Agent, the Collateral Agent nor any Lender, nor any Affiliate of any of the foregoing (nor any of their respective successors or assigns), shall have any responsibility for arranging any Commitments in respect of any Incremental Facility, in each case of this <u>clause (e)(i)(II</u>), without their prior written consent and subject to such conditions (including, without limitation, fee arrangements) as they may require in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Administrative Agent, the Collateral Agent, the Credit Parties, and the existing Lenders and/or Additional Incremental Lenders providing any Commitment(s) in respect of any Incremental Facility, without the further consent of any other Person, are expressly permitted to enter into an Incremental Facility Agreement to establish any such Incremental Facility effected in accordance with the foregoing <u>clause (e)(i</u>), which Incremental Facility Agreement may amend this Agreement and the other Credit Documents to implement such technical, administrative and/or mechanical changes as may be necessary or advisable to be implemented in connection therewith (including, without limitation, to ensure continuing *pro rata* allocations of Loans and Commitments and to implement ratable participations in Letters of Credit).

------

Section 2.2 <u>Swingline Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Swingline Loans Commitments</u>. During the Revolver Availability Period, subject to the terms and conditions hereof, the Swingline Lender shall make Swingline Loans to the Borrower in an aggregate amount up to, but *not exceeding*, the Swingline Sublimit; <u>provided</u>, <u>that</u>, after giving effect to the making of any Swingline Loan, in no event shall (i) the Aggregate Revolving Credit Exposure *exceed* the Aggregate Revolving Commitment Amount, and (ii) the aggregate amount of Revolving Credit Exposure of any Lender *exceed* the amount of such Lender's respective Revolving Commitment. Amounts borrowed pursuant to this <u>Section</u> <u>2.2</u> may be repaid and reborrowed during the Revolver Availability Period. The Swingline Lender's Revolving Commitment shall expire on the Revolving Commitment Termination Date and all Swingline Loans, and all other amounts owed hereunder with respect to the Swingline Loans and the Revolving Commitments, shall be Paid in Full by *no later than* such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Borrowing Mechanics for Swingline Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to <u>clause (b)(vi</u>) below, whenever the Borrower desires that the Swingline Lender make a Swingline Loan, the Borrower shall deliver to the Administrative Agent a Funding Notice by *no later than* 11:00 a.m. on the proposed Credit Date (<u>provided</u>, <u>that</u>, a Funding Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Funding Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Swingline Lender shall make the amount of its Swingline Loan available to the Administrative Agent by *not later than* 3:00 p.m. (Eastern time) on the applicable Credit Date by wire transfer of same day funds in Dollars, at the Administrative Agent's Principal Office. Except as provided herein, upon satisfaction or waiver of the conditions precedent specified herein, the Administrative Agent shall make the proceeds of such Swingline Loans available to the Borrower on the applicable Credit Date by causing an amount of same day funds in Dollars equal to the proceeds of all such Swingline Loans received by the Administrative Agent from the Swingline Lender to be credited to the account of the Borrower at the Administrative Agent's Principal Office, or to such other account as may be designated in writing to the Administrative Agent by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) With respect to any Swingline Loans that have *not* been voluntarily prepaid by the Borrower pursuant to <u>Section</u> <u>2.11</u>, the Swingline Lender may, at any time in its sole and absolute discretion, deliver to the Administrative Agent (with a copy to the Borrower), by *no later than* 11:00 a.m. (Eastern time) on the day of the proposed Credit Date, a notice (which shall be deemed to be a Funding Notice given by the Borrower) requesting that each Lender holding a Revolving Commitment make Revolving Loans that are Base Rate Loans to the Borrower on such Credit Date in an aggregate principal amount equal to the principal amount of such Swingline Loans (the "*<u>Refunded Swingline Loans</u>*") outstanding on the date such notice is given which the Swingline Lender requests the Lenders to prepay (<u>provided</u>, <u>that</u>, a Funding Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Funding Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed). Notwithstanding anything to the contrary in this Agreement: (A) the proceeds of such Revolving Loans made by the Lenders

------

other than the Swingline Lender shall be immediately delivered by the Administrative Agent to the Swingline Lender (and *not* to the Borrower) and applied to repay a corresponding portion of the Refunded Swingline Loans; and (B) on the day that such Revolving Loans are made, the Swingline Lender's Revolving Commitment Percentage of the Refunded Swingline Loans shall be deemed to be paid with the proceeds of a Revolving Loan made by the Swingline Lender to the Borrower, and such portion of the Swingline Loans deemed to be so paid shall no longer be outstanding as Swingline Loans but shall instead constitute part of the Swingline Lender's outstanding Revolving Loans to the Borrower. The Borrower hereby authorizes the Administrative Agent and the Swingline Lender to charge the Borrower's accounts with the Administrative Agent and the Swingline Lender (up to the amount available in each such account) in order to immediately pay the Swingline Lender the amount of the Refunded Swingline Loans to the extent the proceeds of such Revolving Loans made by the Lenders, including the Revolving Loans deemed to be made by the Swingline Lender, are insufficient to repay in full the Refunded Swingline Loans. If any portion of any such amount paid (or deemed to be paid) to the Swingline Lender should be recovered by, or on behalf of, the Borrower from the Swingline Lender in bankruptcy, by assignment for the benefit of creditors or otherwise, the loss of the amount so recovered shall be ratably shared among all Lenders in the manner contemplated by <u>Section</u> <u>2.14</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If, for any reason, Revolving Loans are *not* made pursuant to <u>clause (b)(iii</u>) above in an amount sufficient to repay any amounts owed to the Swingline Lender in respect of any outstanding Swingline Loans on or before the third (3<sup>rd</sup>) Business Day after demand for payment thereof by the Swingline Lender, each Lender holding a Revolving Commitment shall be deemed to, and hereby agrees to, have purchased a participation in such outstanding Swingline Loans, and in an amount equal to its Revolving Commitment Percentage of the applicable unpaid amount together with accrued interest thereon; <u>provided</u>, <u>that</u>, any such participation purchased by a Lender shall be limited to an amount that would *not* cause the aggregate amount of Revolving Credit Exposure of such Lender (immediately after giving effect to such participation) to *exceed* the amount of such Lender's respective Revolving Commitment. On the Business Day that notice is provided by the Swingline Lender (or by the 11:00 a.m. (Eastern time) on the following Business Day, if such notice is provided after 2:00 p.m. (Eastern time)), each Lender holding a Revolving Commitment shall deliver to the Swingline Lender an amount equal to its respective participation in the applicable unpaid amount in same day funds at the Principal Office of the Swingline Lender. In order to evidence such participation each Lender holding a Revolving Commitment agrees to enter into a participation agreement at the request of the Swingline Lender in form and substance reasonably satisfactory to the Swingline Lender. In the event that any Lender holding a Revolving Commitment fails to make available to the Swingline Lender the amount of such Lender's participation as provided in this <u>clause (b)(v</u>), the Swingline Lender shall be entitled to recover such amount on demand from such Lender together with interest thereon for three (3) Business Days at the rate customarily used by the Swingline Lender for the correction of errors among banks and thereafter at the Base Rate, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notwithstanding anything contained herein to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) each Lender's obligation to make Revolving Loans for the purpose of repaying any Refunded Swingline Loans pursuant to <u>clause (b)(iii</u>) above, and each Lender's obligation to purchase a participation in any unpaid Swingline Loans pursuant to the immediately preceding paragraph, shall be absolute and unconditional and shall *not* be affected by any circumstance, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) any set-off, counterclaim, recoupment, defense or other right which such Lender may have against the Swingline Lender, any Credit Party or any other Person for any reason whatsoever;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) the occurrence or continuation of a Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) any adverse change in the business, operations, properties, assets, condition (financial or otherwise) or prospects of any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) any breach of this Agreement or any other Credit Document by any party thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(V) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing;

<u>provided</u>, <u>that</u>, such obligations of each Lender are subject to the condition that the Swingline Lender had *not* received prior notice from the Borrower or the Required Revolving Lenders that any of the conditions under <u>Section</u> <u>5.2</u> to the making of the applicable Refunded Swingline Loans or other unpaid Swingline Loans were *not* satisfied at the time such Refunded Swingline Loans or other unpaid Swingline Loans were made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Swingline Lender shall *not* be obligated to make any Swingline Loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) if it has elected *not* to do so after the occurrence, and during the continuation, of a Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) it does *not* in good faith believe that all conditions under <u>Section</u> <u>5.2</u> to the making of such Swingline Loan have been satisfied or waived by the Required Revolving Lenders; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) at a time when a Defaulting Lender exists, unless the Swingline Lender has entered into arrangements satisfactory to it and the Borrower to eliminate the Swingline Lender's risk with respect to the Defaulting Lender's participation in such Swingline Loan, including by Cash Collateralizing such Defaulting Lender's Revolving Commitment Percentage of the outstanding Swingline Loans in a manner reasonably satisfactory to the Swingline Lender and the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) In order to facilitate the borrowing of Swingline Loans, the Borrower and the Swingline Lender may mutually agree, and are hereby authorized, to enter into an auto borrow agreement in form and substance satisfactory to the Swingline Lender and the Administrative Agent (the "*<u>Auto Borrow Agreement</u>*") providing for the automatic advance by the Swingline Lender of Swingline Loans under the conditions set forth in the Auto Borrow Agreement, subject to the conditions set forth in this Agreement. At any time that an Auto Borrow Agreement is in effect, advances under the Auto Borrow Agreement shall be deemed Swingline Loans for all purposes of this Agreement and the other Credit Documents, except that Borrowings of Swingline Loans under the Auto Borrow Agreement shall be made in accordance with the Auto Borrow Agreement. For purposes of determining the Aggregate Revolving Credit Exposure at any time during which an Auto Borrow Agreement is in effect, the aggregate outstanding principal balance of all Swingline Loans shall be deemed to equal the *sum of*: (A) the aggregate outstanding principal balance of all Swingline Loans at such time; *plus* (B) the maximum unused amount available to be borrowed under such Auto Borrow Agreement at such time.

------

Section 2.3 <u>Issuances of Letters of Credit and Purchase of Participations Therein</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Letters of Credit</u>. During the Revolver Availability Period, subject to the terms and conditions hereof, the Issuing Bank agrees to issue Letters of Credit for the account of the Borrower or any of its Subsidiaries in the aggregate amount up to, but *not exceeding*, the Letter of Credit Sublimit, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each Letter of Credit shall be denominated in Dollars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the stated amount of each Letter of Credit shall *not* be *less than* Fifty Thousand Dollars ($50,000) or such lesser amount as may be approved in writing by the Issuing Bank in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) immediately *after* giving effect to such issuance, in no event shall: (A) the Aggregate Revolving Credit Exposure *exceed* the Aggregate Revolving Commitment Amount; (B) the Revolving Credit Exposure of any Lender *exceed* the amount of such Lender's respective Revolving Commitment; and (C) the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, *exceed* the Letter of Credit Sublimit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in no event shall any Letter of Credit have an expiration date that is *later than* the *earlier* to occur of: (A) seven (7) calendar days *prior* to the Revolving Commitment Termination Date; and (B) the date which is one (1) year from the date of issuance of such Letter of Credit.

Subject to the foregoing (other than <u>clause (a)(iv</u>)) the Issuing Bank may agree that a Letter of Credit will automatically be extended for one or more successive periods *not to exceed* one (1) year each, unless the Issuing Bank elects *not* to extend for any such additional period; <u>provided</u>, <u>that</u>, (I) the Issuing Bank shall *not* extend any such Letter of Credit if it has received written notice that an Event of Default has occurred and is continuing at the time the Issuing Bank must elect to allow such extension, and (II) in the event that any Lender is at such time a Defaulting Lender, unless the Issuing Bank has entered into arrangements satisfactory to the Issuing Bank (in its sole discretion) with the Borrower or such Defaulting Lender to eliminate the Issuing Bank's Fronting Exposure with respect to such Lender (after giving effect to <u>Section</u> <u>2.16(a)(iv</u>) and any Cash Collateral provided by the Defaulting Lender), including by Cash Collateralizing such Defaulting Lender's Revolving Commitment Percentage of the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, in a manner reasonably satisfactory to Agents, the Issuing Bank shall *not* be obligated to issue or extend any Letter of Credit hereunder. The Issuing Bank may send a Letter of Credit or conduct any communication to or from the beneficiary via the Society for Worldwide Interbank Financial Telecommunication ("*<u>SWIFT</u>*") message or overnight courier, or any other commercially reasonable means of communicating with a beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice of Issuance</u>. Whenever the Borrower desires the issuance of a Letter of Credit, the Borrower shall deliver to the Administrative Agent an Issuance Notice by *no later than* 1:00 p.m. (Eastern time) *at least* three (3) Business Days in advance of the proposed date of issuance (or such shorter period as may be agreed to by the Issuing Bank in any particular instance) (<u>provided</u>, <u>that</u>, an Issuance Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Issuance Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed). Upon satisfaction or

------

waiver of the conditions set forth in <u>Section</u> <u>5.2</u>, the Issuing Bank shall issue the requested Letter of Credit only in accordance the Issuing Bank's standard operating procedures (including, without limitation, the delivery by the Borrower of such executed documents and information pertaining to such requested Letter of Credit, including any Issuer Documents, as the Issuing Bank or the Administrative Agent may require). Upon the issuance of any Letter of Credit or amendment or modification to a Letter of Credit, the Issuing Bank shall promptly notify the Administrative Agent and each Lender of such issuance, which notice shall be accompanied by a copy of such Letter of Credit or amendment or modification to a Letter of Credit and the amount of such Lender's respective participation in such Letter of Credit pursuant to <u>clause (e</u>) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Responsibility of Issuing Bank With Respect to Requests for Drawings and Payments</u>. In determining whether to honor any drawing under any Letter of Credit by the beneficiary thereof, the Issuing Bank shall be responsible only to examine the documents delivered under such Letter of Credit with reasonable care so as to ascertain whether they appear on their face to be in accordance with the terms and conditions of such Letter of Credit. As between the Borrower and the Issuing Bank, the Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit issued by the Issuing Bank, by the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, the Issuing Bank shall *not* be responsible for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for and issuance of any such Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) failure of the beneficiary of any such Letter of Credit to comply fully with any conditions required in order to draw upon such Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) errors in interpretation of technical terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any such Letter of Credit or of the proceeds thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any consequences arising from causes beyond the control of the Issuing Bank, including any Governmental Acts; none of the above shall affect or impair, or prevent the vesting of, the Issuing Bank's rights or powers hereunder.

Without limiting the foregoing and in furtherance thereof, any action taken or omitted by the Issuing Bank under or in connection with the Letters of Credit or any documents and certificates delivered thereunder, if taken or omitted in good faith, shall not give rise to any liability on the part of the Issuing Bank to any Credit Party. Notwithstanding anything to the contrary contained in this <u>clause</u> <u>(c</u>), the Borrower shall retain any and all rights it may have against the Issuing Bank for any liability arising solely out of the gross negligence or willful misconduct of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Reimbursement by the Borrower of Amounts Drawn or Paid Under Letters of Credit</u>. In the event the Issuing Bank has determined to honor a drawing under a Letter of Credit, it shall immediately notify the Borrower and the Administrative Agent, and the Borrower shall reimburse the Issuing Bank on or before the Business Day immediately following the date on which such drawing is honored (the "*<u>Reimbursement Date</u>*") in an amount in Dollars and in same day funds equal to the amount of such honored drawing; <u>provided</u>, <u>that</u>, (i) anything contained herein to the contrary notwithstanding, (A) unless the Borrower shall have notified the Administrative Agent and the Issuing Bank *prior* to 11:00 a.m. (Eastern time) on the date such drawing is honored that the Borrower intends to reimburse the Issuing Bank for the amount of such honored drawing with funds other than the proceeds of Revolving Loans, the Borrower shall be deemed to have given a timely Funding Notice to the Administrative Agent requesting the Lenders to make Revolving Loans that are Base Rate Loans on the Reimbursement Date in an amount in Dollars equal to the amount of such honored drawing, and (B) subject to satisfaction or waiver of the conditions specified in <u>Section</u> <u>5.2</u>, the Lenders shall, on the Reimbursement Date, make Revolving Loans that are Base Rate Loans in the amount of such honored drawing, the proceeds of which shall be applied directly by the Administrative Agent to reimburse the Issuing Bank for the amount of such honored drawing, and (ii) if, for any reason, proceeds of Revolving Loans are *not* received by the Issuing Bank on the Reimbursement Date in an amount equal to the amount of such honored drawing, the Borrower shall reimburse the Issuing Bank, on demand, in an amount in same day funds equal to the *excess* of the amount of such honored drawing *over* the aggregate amount of such Revolving Loans, if any, which are so received. Nothing in this <u>clause (d</u>) shall be deemed to relieve any Lender from its obligation to make Revolving Loans on the terms and conditions set forth herein, and the Borrower shall retain any and all rights it may have against any Lender resulting from the failure of such Lender to make such Revolving Loans under this <u>clause (d</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Lenders' Purchase of Participations in Letters of Credit</u>. Immediately upon the issuance of each Letter of Credit, each Lender having a Revolving Commitment shall be deemed to have purchased, and hereby agrees to irrevocably purchase, from the Issuing Bank a participation in such Letter of Credit and any drawings honored thereunder in an amount equal to such Lender's Revolving Commitment Percentage (with respect to the Revolving Commitments) of the maximum amount which is or at any time may become available to be drawn thereunder; <u>provided</u>, <u>that</u>, any such participation purchased by a Lender shall be limited to an amount that would *not* cause the aggregate amount of Revolving Credit Exposure of such Lender (immediately after giving effect to such participation) to *exceed* the amount of such Lender's respective Revolving Commitment. In the event that the Borrower shall fail, for any reason, to reimburse the Issuing Bank as provided in <u>clause (d</u>) above, the Issuing Bank shall promptly notify each Lender of the unreimbursed amount of such honored drawing and of such Lender's respective participation therein based on such Lender's Revolving Commitment Percentage. Each Lender shall make available to the Issuing Bank an amount equal to its respective participation, in Dollars and in same day funds, at the office of the Issuing Bank specified in such notice, by *not later than* 12:00 p.m. (Eastern time) on the first (1<sup>st</sup>) Business Day (under the laws of the jurisdiction in which such office of the Issuing Bank is located) after the date notified by the Issuing Bank. In the event that any Lender fails to make available to the Issuing Bank on such Business Day the amount of such Lender's participation in such Letter of Credit as provided in this <u>clause (e</u>), the Issuing Bank shall be entitled to recover such amount on demand from such Lender together with interest thereon for three (3) Business Days at the rate customarily used by the Issuing Bank for the correction of errors among banks and thereafter at the Base Rate. Nothing in this <u>clause (e</u>) shall be deemed to prejudice the right of any Lender to recover from the Issuing Bank any amounts made available by such Lender to the Issuing Bank pursuant to this Section in the event that it is determined that the payment with respect to a Letter of Credit in respect of which payment was made by such Lender constituted

------

gross negligence or willful misconduct on the part of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non -appealable order. In the event the Issuing Bank shall have been reimbursed by other Lenders pursuant to this <u>clause (e</u>) for all or any portion of any drawing honored by the Issuing Bank under a Letter of Credit, the Issuing Bank shall distribute to each Lender which has paid all amounts payable by it under this <u>clause (e</u>) with respect to such honored drawing such Lender's Revolving Commitment Percentage of all payments subsequently received by the Issuing Bank from the Borrower in reimbursement of such honored drawing when such payments are received. Any such distribution shall be made to a Lender at its primary address set forth below its name on <u>Appendix B</u> or at such other address as such Lender may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Obligations Absolute</u>. The obligation of the Borrower to reimburse the Issuing Bank for drawings honored under the Letters of Credit issued by it and to repay any Revolving Loans made by the Lenders pursuant to <u>clause (d</u>) above and the obligations of the Lenders under <u>clause (e</u>) above shall be unconditional and irrevocable and shall be paid strictly in accordance with the terms hereof under all circumstances including any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any lack of validity or enforceability of any Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the existence of any claim, set-off, defense (other than that such drawing has been repaid) or other right which the Borrower or any Lender may have at any time against a beneficiary or any transferee of any Letter of Credit (or any Persons for whom any such transferee may be acting), the Issuing Bank, a Lender or any other Person or, in the case of a Lender, against the Borrower, whether in connection herewith, the transactions contemplated herein or any unrelated transaction (including any underlying transaction between the Borrower or any of its Subsidiaries and the beneficiary for which any Letter of Credit was procured);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any draft or other document presented under any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) payment by the Issuing Bank under any Letter of Credit against presentation of a draft or other document which does *not* substantially comply with the terms of such Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any adverse change in the business, operations, properties, assets, or financial condition of the Borrower or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any breach hereof or any other Credit Document by any party thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the fact that an Event of Default or a Default shall have occurred and be continuing;

<u>provided</u>, <u>that</u>, in each case, that payment by the Issuing Bank under the applicable Letter of Credit shall *not* have constituted gross negligence or willful misconduct of the Issuing Bank under the circumstances in question, as determined by a court of competent jurisdiction in a final, non-appealable order.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Indemnification</u>. Without duplication of any obligation of the Credit Parties under <u>Section</u> <u>11.2</u>, in addition to amounts payable as provided herein, each of the Credit Parties hereby agrees, on a joint and several basis, to protect, indemnify, pay and save harmless the Issuing Bank from and against any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including reasonable out-of-pocket fees, expenses and disbursements of counsel) which the Issuing Bank may incur or be subject to as a consequence, direct or indirect, of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the issuance of any Letter of Credit by the Issuing Bank, other than as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the gross negligence or willful misconduct of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the wrongful dishonor by the Issuing Bank of a proper demand for payment made under any Letter of Credit issued by it; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the failure of the Issuing Bank to honor a drawing under any such Letter of Credit as a result of any Governmental Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Applicability of ISP</u>. Unless otherwise expressly agreed by the Issuing Bank and the Borrower when a Letter of Credit is issued, the rules of the ISP shall apply to each Letter of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Letters of Credit Issued for Subsidiaries</u>. Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary of the Borrower, the Borrower shall be obligated to reimburse the Issuing Bank hereunder for any and all drawings under such Letter of Credit. The Borrower hereby acknowledges that the issuance of Letters of Credit for the account of the Subsidiaries inures to the benefit of the Borrower, and that the Borrower's business derives substantial benefits from the businesses of such Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Conflict with Issuer Documents</u>. In the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control.

Section 2.4 <u>Pro Rata Shares; Availability of Funds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Pro Rata Shares</u>. All Loans shall be made, and all participations purchased, by the Lenders simultaneously and proportionately to their respective *pro rata* shares of the Loans, it being understood that no Lender shall be responsible for any default by any other Lender in such other Lender's obligation to make a Loan requested hereunder or purchase a participation required hereby nor shall any Commitment, or the portion of the aggregate outstanding principal balance of any Loans, of any Lender be increased or decreased as a result of a default by any other Lender in such other Lender's obligation to make a Loan requested hereunder or purchase a participation required hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Availability of Funds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Funding by Lenders; Presumption by Administrative Agent</u>. Unless the Administrative Agent shall have received notice from a Lender *prior* to the proposed date of any Borrowing (or, in the case of any Borrowing of Base Rate Loans, prior to 12:00 p.m. (Noon) (Eastern time) on the date of such Borrowing) that such Lender will *not* make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with <u>Section</u> <u>2.1(d</u>) or, in the case of a Borrowing of Base Rate Loans, that such Lender has made such share available in accordance with, and at the time required by, <u>Section</u> <u>2.1(d</u>) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has *not* in fact made its share of the applicable Borrowing available to the

------

Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from, and including, the date such amount is made available to the Borrower to, but *excluding*, the date of payment to the Administrative Agent, at, (A) in the case of a payment to be made by such Lender, the *greater of* the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Loans, *plus*, in either case, any administrative, processing or similar fees customarily charged by the Administrative Agent in connection therewith. If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period. If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender's Loan included in such Borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Payments by the Borrower; Presumptions by Administrative Agent</u>. Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount due. In such event, if the Borrower has *not* in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or the Issuing Bank, in immediately available funds with interest thereon, for each day from, and including, the date such amount is distributed to it to, but *excluding*, the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

Notices given by the Administrative Agent under this <u>clause (b</u>) shall be conclusive absent manifest error.

Section 2.5 <u>Evidence of Debt; Register; Lenders' Books and Records; Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Lenders' Evidence of Debt</u>. Each Lender shall maintain on its internal records an account or accounts evidencing the Obligations of the Borrower and each other Credit Party to such Lender, including the amounts of the Loans made by it and each repayment and prepayment in respect thereof. Any such recordation shall be conclusive and binding on the Borrower, absent manifest error; <u>provided</u>, <u>that</u>, (i) the failure to make any such recordation, or any error in such recordation, shall *not* affect any Lender's Commitment or the Borrower's obligations in respect of any applicable Loans, and (ii) in the event of any inconsistency between the Register and any Lender's records, the recordations in the Register shall govern in the absence of demonstrable error therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notes</u>. The Borrower shall execute and deliver to (i) each Lender on the Third Amendment Effective Date, (ii) each Person who is a permitted assignee of such a Lender pursuant to <u>Section</u> <u>11.5</u>, and (iii) each Additional Incremental Lender, in each case, to the extent requested by such Person, a Note to evidence such Person's respective portion of the Revolving Loans, Swingline Loans, Term Loans and other Obligations.

------

Section 2.6 <u>Scheduled Principal Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans</u>. The aggregate outstanding principal balance of Revolving Loans (together with any unpaid accrued interest and fees with respect thereto) shall become due and payable, and be repaid, in full on the Revolving Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Swingline Loans</u>. The aggregate outstanding principal balance of Swingline Loans (together with any unpaid accrued interest and fees with respect thereto) shall become due and payable, and be repaid, in full on the *earlier* to occur of: (i) the date of demand therefor by the Swingline Lender; and (ii) the Revolving Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Term Loan A</u>. The outstanding principal balance of the Term Loan A shall be repaid in equal quarterly installments, beginning on the last Business Day of the Fiscal Quarter ending June 30, 2025, in an amount of Two Million Five-Hundred Thousand Dollars ($2,500,000) per Fiscal Quarter, payable on the last Business Day of each Fiscal Quarter (as such quarterly installments may hereafter be adjusted as a result of prepayments made pursuant to <u>Section</u> <u>2.11</u>), unless accelerated sooner pursuant to <u>Article 9</u>, with the outstanding principal balance of the Term Loan A (together with any unpaid accrued interest and fees with respect thereto) being due and payable in full on the Maturity Date for the Term Loan A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delayed Draw Term Loan</u>. The outstanding principal balance of each advance made under the Delayed Draw Term Loan during the DDTL Availability Period shall be repaid in equal quarterly installments, beginning on the last Business Day of the first (1<sup>st</sup>) full Fiscal Quarter ending after the date on which such advance is made, in an amount equal to the DDTL Amortization Payment Amount per Fiscal Quarter, payable on the last Business Day of each Fiscal Quarter (as such quarterly installments may hereafter be adjusted as a result of prepayments made pursuant to <u>Section</u> <u>2.11</u>), unless accelerated sooner pursuant to <u>Article 9</u>, with the outstanding principal balance of each advance under the Delayed Draw Term Loan (together with any unpaid accrued interest and fees with respect thereto) being due and payable in full on the Maturity Date for the Delayed Draw Term Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Incremental Term Loans</u>. The outstanding principal balance of any Incremental Term Loans shall be repaid in installments on the date(s), and in the amount(s), set forth in the applicable Incremental Facility Agreement establishing such Incremental Term Loan.

Section 2.7 <u>Interest on Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise set forth herein, each Loan shall bear interest on the unpaid principal amount thereof from the date made through repayment (whether by acceleration or otherwise) thereof as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of Revolving Loans, the Term Loan A and the Delayed Draw Term Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) to the extent outstanding as Base Rate Loans, at the Base Rate *plus* the Applicable Margin; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) to the extent outstanding as SOFR Loans, at Term SOFR *plus* the Applicable Margin; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of Swingline Loans, at the Swingline Rate (or with respect to any Swingline Loan advanced pursuant to an Auto Borrow Agreement, such other rate as separately agreed in writing between the Borrower and the Swingline Lender);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any Incremental Term Loan, at the percentages per annum specified in the applicable Incremental Facility Agreement establishing such Incremental Term Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The basis for determining the rate of interest with respect to any Loan (except a Swingline Loan, which may only be made and maintained at the Swingline Rate (unless and until converted into a Revolving Loan pursuant to the terms and conditions hereof)), and the Interest Period with respect to any SOFR Loan, shall be selected by the Borrower and notified to the Administrative Agent and the Lenders pursuant to the applicable Funding Notice or Conversion / Continuation Notice, as the case may be. If, on any day, a Loan is outstanding with respect to which a Funding Notice or Conversion / Continuation Notice has *not* been delivered to the Administrative Agent in accordance with the terms hereof specifying the applicable basis for determining the rate of interest, then for that day: (i) if such Loan is a SOFR Loan, such Loan shall become a Base Rate Loan; and (ii) if such Loan is a Base Rate Loan, such Loan shall remain a Base Rate Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with SOFR Loans, there shall be *no more than* eight (8) Interest Periods outstanding at any time. In the event the Borrower fails to specify between a Base Rate Loan or a SOFR Loan in the applicable Funding Notice or Conversion / Continuation Notice, such Loan: (i) if outstanding as a SOFR Loan, will be automatically continued, on the last day of the then-current Interest Period for such Loan, as a SOFR Loan with an equivalent Interest Period; and (ii) if outstanding as a Base Rate Loan will remain as, or (if *not* then outstanding) will be made as, a Base Rate Loan. In the event the Borrower fails to specify an Interest Period for any SOFR Loan in the applicable Funding Notice or Conversion / Continuation Notice, the Borrower shall be deemed to have selected an Interest Period of one (1) month. As soon as practicable *after* 10:00 a.m. (Eastern time) on each Interest Rate Determination Date, the Administrative Agent shall determine (which determination shall, absent manifest error, be final, conclusive and binding upon all parties) the interest rate that shall apply to each of the SOFR Loans for which an interest rate is then being determined (and for the applicable Interest Period) and shall promptly give notice thereof (in writing or by telephone confirmed in writing) to the Borrower and each Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Interest payable pursuant to this <u>Section</u> <u>2.7</u> shall be computed on the basis of: (i) for interest at the Base Rate, year of three hundred sixty-five (365) or three hundred sixty-six (366) days, as the case may be; and (ii) for all other computations of fees and interest, a year of three hundred sixty (360) days, in each case, for the actual number of days elapsed in the period during which it accrues. In computing interest on any Loan, the date of the making of such Loan, or the first (1<sup>st</sup>) day of an Interest Period applicable to such Loan, or, with respect to a Base Rate Loan being converted from a SOFR Loan, the date of conversion of such SOFR Loan to such Base Rate Loan, as the case may be, shall be included, and the date of payment of such Loan or the expiration date of an Interest Period applicable to such Loan or, with respect to a Base Rate Loan being converted to a SOFR Loan, the date of conversion of such Base Rate Loan to such SOFR Loan, as the case may be, shall be excluded; <u>provided</u>, <u>that</u>, if a Loan is repaid on the same day on which it is made, one (1) day's interest shall be paid on that Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If, as a result of any restatement of, or other adjustment to, the financial statements of the Borrower or for any other reason, the Borrower or the Lenders determine that (i) the Consolidated Leverage Ratio, as calculated by the Borrower as of any applicable date, was inaccurate, and (ii) a proper calculation of the Consolidated Leverage Ratio would have resulted in higher pricing for such period, then the Borrower shall immediately and retroactively be obligated to pay to the Administrative Agent, for the account of the holders of the Obligations, promptly on demand (and, in any event, by *not later*

------

*than* ten (10) consecutive calendar days after the date of such demand) by the Administrative Agent (or, after the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower or any other Credit Party under the Bankruptcy Code or other Debtor Relief Law, automatically and any without further action(s) by the Agent or any Lender), an amount equal to the *excess* of the amount of interest and fees that should have been paid for such period *over* the amount of interest and fees actually paid for such period. This <u>clause (e</u>) shall *not* limit the rights of the Agent or any Lender, as the case may be, under any other provision of this Agreement. The Borrower's obligations under this <u>clause (e</u>) shall survive the termination of the Commitments and the repayment of all other Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as otherwise set forth herein, interest on each Loan shall accrue on a daily basis and shall be payable in arrears on and to: (i) each Interest Payment Date applicable to that Loan; (ii) upon any prepayment of that Loan (other than a voluntary prepayment of a Revolving Loan or Term Loan which interest shall be payable in accordance with <u>clause (f)(i</u>) above), to the extent accrued on the amount being prepaid; and (iii) at maturity, including final maturity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Borrower agrees to pay to the Issuing Bank, with respect to drawings honored under any Letter of Credit issued by the Issuing Bank, interest on the amount paid by the Issuing Bank in respect of each such honored drawing from, and including, the date such drawing is honored to, but *excluding*, the date such amount is reimbursed by, or on behalf of, the Borrower at a rate equal to: 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for the period from, and including, the date such drawing is honored to, but *excluding*, the applicable Reimbursement Date, the rate of interest otherwise payable hereunder with respect to Revolving Loans that are Base Rate Loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) thereafter, a rate which is the *lesser* of: (y) two percent (2.0%) per annum in *excess* of the rate of interest otherwise payable hereunder with respect to Revolving Loans that are Base Rate Loans; and (z) the Highest Lawful Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Interest payable pursuant to <u>clause (g</u>) above shall be computed on the basis of a year of three hundred sixty-five (365) or three hundred sixty-six (366) days, as the case may be, for the actual number of days elapsed in the period during which it accrues, and shall be payable on demand or, if no demand is made, on the date on which the related drawing under a Letter of Credit is reimbursed in full. Promptly upon receipt by the Issuing Bank of any payment of interest pursuant to <u>clause (g</u>) above, the Issuing Bank shall distribute to each Lender, out of the interest received by the Issuing Bank in respect of the period from the date such drawing is honored to, but *excluding*, the date on which the Issuing Bank is reimbursed for the amount of such drawing (including any such reimbursement out of the proceeds of any Revolving Loans), the amount that such Lender would have been entitled to receive in respect of the letter of credit fee that would have been payable in respect of such Letter of Credit for such period if no drawing had been honored under such Letter of Credit. In the event the Issuing Bank shall have been reimbursed by the Lenders for all or any portion of such honored drawing, the Issuing Bank shall distribute to each Lender which has paid all amounts payable by it under <u>Section</u> <u>2.3(e</u>) with respect to such honored drawing such Lender's Revolving Commitment Percentage of any interest received by the Issuing Bank in respect of that portion of such honored drawing so reimbursed by the Lenders for the period from the date on which the Issuing Bank was so reimbursed by the Lenders to but excluding the date on which such portion of such honored drawing is reimbursed by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In connection with the use and/or administration of SOFR, the SOFR Reference Rate for any applicable tenor and/or any SOFR-Based Rate, the Administrative Agent shall have the right to make Conforming Changes in consultation with the Borrower from time to time and, notwithstanding anything to the contrary in this Agreement or in any other Credit Document, any amendment(s) implementing any such Conforming Changes shall become effective without any further action(s) and/or consent(s) of any other party to this Agreement or any other Credit Document or of any other Person. The Administrative Agent shall promptly notify the Borrower and the Lenders of the effectiveness of any Conforming Changes implemented in connection with the use and/or administration of SOFR, the SOFR Reference Rate for any applicable tenor and/or any SOFR-Based Rate.

------

Section 2.8 <u>Conversion / Continuation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So long as no Default or Event of Default shall have occurred and then be continuing or would result therefrom, the Borrower shall have the option:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to convert at any time all, or any part, of any Loan equal to One-Hundred Thousand Dollars ($100,000) and, if greater, in an integral multiple of Fifty Thousand Dollars ($50,000) in excess thereof from one Type of Loan to another Type of Loan; <u>provided</u>, <u>that</u>, a SOFR Loan may only be converted on the expiration of the Interest Period applicable to such SOFR Loan unless the Borrower shall pay all amounts due under <u>Section</u> <u>3.1(c</u>) in connection with any such conversion; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon the expiration of any Interest Period applicable to any SOFR Loan, to continue all or any portion of such Loan as a SOFR Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall deliver a Conversion / Continuation Notice to the Administrative Agent by *no later than* 1:00 p.m. (Eastern time) *at least* three (3) Business Days in advance of the proposed Conversion / Continuation Date. Except as otherwise provided herein, a Conversion / Continuation Notice for conversion to, or continuation of, any SOFR Loans (or telephonic notice in lieu thereof) shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to effect a conversion or continuation in accordance therewith.

Section 2.9 <u>Default Rate of Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any amount of principal of any Loan is *not* paid when due, whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any amount (other than principal of any Loan) payable by the Borrower under any Credit Document is *not* paid when due (after the expiration of any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then, at the request of the Required Lenders, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the occurrence and during the continuance of an Automatic Acceleration Event of Default or a Payment Event of Default, the Borrower shall pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the occurrence and during the continuance of an Event of Default other than an Automatic Acceleration Event of Default and a Payment Event of Default, the Borrower shall, at the request of the Required Lenders, pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the case of any SOFR Loan, upon the expiration of the Interest Period in effect at the time the Default Rate of interest is effective, each such SOFR Loan shall thereupon become a Base Rate Loan and shall thereafter bear interest at the Default Rate then in effect for Base Rate Loans. Payment or acceptance of the increased rates of interest provided for in this <u>Section</u> <u>2.9</u> is *not* a permitted alternative to timely payment and shall *not* constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Administrative Agent or any Lender.

Section 2.10 <u>Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Commitment Fee</u>. The Borrower shall pay to the Administrative Agent, for the account of each Lender in accordance with its Revolving Commitment Percentage and its DDTL Commitment Percentage (as applicable), a commitment fee (the "*<u>Commitment Fee</u>*") equal to the *sum of*: (i) the *product of* (A) the Applicable Margin, *multiplied by* (B) the actual daily amount by which the Aggregate Revolving Commitment Amount *exceeds* the Aggregate Revolving Credit Exposure, subject to adjustment(s) as provided in <u>Section</u> <u>2.16</u>; *plus* (ii) the *product of* (A) the Applicable Margin, *multiplied by* (B) the Aggregate DDTL Commitment Amount then in effect. The Commitment Fee shall accrue at all times during the Revolver Availability Period and at all times during the DDTL Commitment Period, including at any time during which one or more of the conditions in <u>Article 5</u> is *not* met, and shall be due and payable quarterly in arrears on the last Business Day of each March, June, September and December, commencing with the first (1<sup>st</sup>) such date to occur after the Closing Date, on the Revolving Commitment Termination Date and on the DDTL Commitment Termination Date; <u>provided</u>, <u>that</u>, (I) no Commitment Fee shall accrue on any Revolving Commitment or any DDTL Commitment of any Defaulting Lender so long as such Lender shall be a Defaulting Lender, and (II) any Commitment Fee accrued with respect to any Revolving Commitment or any DDTL Commitment of a Defaulting Lender during the period *prior* to the time that such Lender became a Defaulting Lender that remains unpaid at such time shall *not* be payable by the Borrower so long as such Lender shall be a Defaulting Lender. The Commitment Fee shall be calculated quarterly in arrears, and, if there is any change in the Applicable Margin during any quarter, the actual daily amount shall be computed and *multiplied by* the Applicable Margin separately for each period during such quarter that such Applicable Margin was in effect. For purposes of calculation of the Commitment Fee, Swingline Loans shall *not* be counted toward, or be considered as usage of, the Aggregate Revolving Commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Letter of Credit Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Letter of Credit Fees</u>. The Borrower shall pay to the Administrative Agent for the account of each Lender, in accordance with its Revolving Commitment Percentage, a Letter of Credit fee for each Letter of Credit equal to the Applicable Margin *multiplied by* the daily maximum amount available to be drawn under such Letter of Credit (collectively, the "*<u>Letter of</u> <u>Credit Fees</u>*"). For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with <u>Section</u> <u>1.3(b</u>). The Letter of Credit Fees shall be computed on a quarterly basis in arrears, and shall be due and payable on the last Business Day of each March, June, September and December, commencing with the first (1<sup>st</sup>) such date to occur after the issuance of such Letter of Credit, on the expiration date thereof and thereafter on demand; <u>provided</u>, <u>that</u>, (1) no Letter of Credit Fees shall accrue in favor of a Defaulting Lender so long as such Lender shall be a Defaulting Lender, and (2) any Letter of Credit Fees accrued in favor of a Defaulting Lender during the period prior to the time such Lender became a Defaulting Lender and unpaid at such time shall *not* be payable by the Borrower so long as such Lender shall be a Defaulting Lender. If

------

there is any change in the Applicable Margin during any quarter, the daily maximum amount available to be drawn under each Letter of Credit shall be computed and *multiplied by* the Applicable Margin separately for each period during such quarter that such Applicable Margin was in effect. Notwithstanding anything to the contrary contained herein, upon the occurrence and during the continuance of an Automatic Acceleration Event of Default or a Payment Event of Default, all Letter of Credit Fees shall accrue at the Default Rate; and, upon the occurrence and during the continuance of an Event of Default other than an Automatic Acceleration Event of Default and a Payment Event of Default, then upon the request of the Required Lenders, all Letter of Credit Fees shall accrue at the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Fronting Fee and Documentary and Processing Charges Payable to Issuing Bank</u>. The Borrower shall pay, directly to the Issuing Bank for its own account, a fronting fee with respect to each Letter of Credit, at the rate per annum specified in the Fee Letter, computed on the daily amount available to be drawn under such Letter of Credit on a quarterly basis in arrears. Such fronting fee shall be due and payable on the last Business Day of each March, June, September and December in respect of the most recently-ended quarterly period (or portion thereof, in the case of the first (1<sup>st</sup>) payment), commencing with the first (1<sup>st</sup>) such date to occur after the issuance of such Letter of Credit, on its expiration date and thereafter on demand. For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with <u>Section</u> <u>1.3(b</u>). In addition, the Borrower shall pay directly to the Issuing Bank for its own account the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of the Issuing Bank relating to letters of credit as from time to time in effect. Such customary fees and standard costs and charges are due and payable on demand and are non-refundable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Fees</u>. The Borrower shall pay to Regions Capital Markets, a division of Regions Bank, and the Administrative Agent, for their own respective accounts, fees in the amounts, and at the times, specified in the Fee Letter. Such fees shall be fully earned when paid and shall *not* be refundable for any reason whatsoever, except to the extent set forth in the Fee Letter.

Section 2.11 <u>Prepayments / Commitment Reductions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voluntary Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any time and from time to time, the Loans may be repaid in whole or in part without premium or penalty (subject to <u>Section</u> <u>3.1</u>):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) with respect to Base Rate Loans, the Borrower may prepay any such Loans on any Business Day, in whole or in part, in an aggregate minimum amount of Five-Hundred Thousand Dollars ($500,000) and, if greater, in an integral multiple of One-Hundred Thousand Dollars ($100,000) in excess thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) with respect to SOFR Loans, the Borrower may prepay any such Loans on any Business Day, in whole or in part (together with any amounts due pursuant to <u>Section</u> <u>3.1(c</u>)), in an aggregate minimum amount of Five-Hundred Thousand Dollars ($500,000) and, if greater, in an integral multiple of One-Hundred Thousand Dollars ($100,000) in excess thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) with respect to Swingline Loans, the Borrower may prepay any such Loans on any Business Day, in whole or in part, in any amount;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All such prepayments shall be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) upon written or telephonic notice on the date of prepayment in the case of Base Rate Loans or Swingline Loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) upon *not less than* three (3) Business Days' prior written or telephonic notice in the case of SOFR Loans;

in each case, given to the Administrative Agent or the Swingline Lender, as the case may be, by 11:00 a.m. (Eastern time) on the date required and, if given by telephone, promptly confirmed in writing to the Administrative Agent (and the Administrative Agent will promptly transmit such telephonic or original notice for a Credit Extension by telefacsimile or telephone to each Lender) (<u>provided</u>, <u>that</u>, a notice of prepayment delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such notice of prepayment shall be revoked or extended if such event or transaction does *not* occur or is delayed). Upon the giving of any such notice, the principal amount of the Loans specified in such notice shall become due and payable on the prepayment date specified therein. Any such voluntary prepayment shall be applied as specified in <u>Section</u> <u>2.12(a</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Commitment Reductions / Terminations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower may, from time to time upon *not less than* three (3) Business Days' prior written or telephonic notice confirmed in writing to the Administrative Agent (which original written or telephonic notice the Administrative Agent will promptly transmit by telefacsimile or telephone to each applicable Lender), at any time and from time to time, terminate, in whole or permanently reduce in part, the Revolving Commitments (ratably among the Lenders in accordance with their respective commitment percentage thereof), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any such partial reduction of the Revolving Commitments shall be in an aggregate minimum amount of Five Million Dollars ($5,000,000) and, if greater, in an integral multiple of One Million Dollars ($1,000,000) in excess thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Borrower shall *not* terminate or reduce the Aggregate Revolving Commitments if, immediately *after* giving effect thereto and to any concurrent prepayments hereunder, the Aggregate Revolving Credit Exposure *exceeds* the Aggregate Revolving Commitment Amount; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) if, immediately after giving effect to any reduction of the Aggregate Revolving Commitment Amount, the Letter of Credit Sublimit and/or the Swingline Sublimit *exceed* the Aggregate Revolving Commitment Amount, then the Letter of Credit Sublimit and/or the Swingline Sublimit, as applicable, shall be automatically reduced by the amount of such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower's notice to the Administrative Agent shall designate the date (which shall be a Business Day) of such termination or reduction and the amount of any partial reduction, and such termination or reduction of the Aggregate Revolving Commitments shall be effective on the date specified in the Borrower's notice and shall reduce the Revolving Commitments of each Lender proportionately to its Revolving Commitment Percentage thereof (<u>provided</u>, <u>that</u>, a notice of termination or reduction of the Aggregate Revolving Commitments delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such notice of termination or reduction shall be revoked or extended if such event or transaction does *not* occur or is delayed).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary in the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Aggregate Term Loan A Commitments terminated automatically on the Closing Date upon the Borrowing of the Term Loan A on the Closing Date pursuant to this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Aggregate DDTL Commitments shall (I) be automatically reduced, on a Dollar-for-Dollar basis, by the aggregate original principal amount of each advance made under the Delayed Draw Term Loan during the DDTL Availability Period at the time such advance is made, and (II) terminate automatically on the DDTL Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mandatory Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Revolving Commitments</u>. If, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Aggregate Revolving Credit Exposure shall *exceed* the Aggregate Revolving Commitment Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, shall *exceed* the Letter of Credit Sublimit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the aggregate outstanding principal balance of all Swingline Loans, taken together, shall *exceed* the Swingline Sublimit;

then immediate prepayment will be made on, or in respect of, the Revolving Obligations in an amount equal to such excess; <u>provided</u>, <u>that</u>, except with respect to the foregoing <u>clause (c)(i)(B</u>), Letter of Credit Obligations will *not* be Cash Collateralized hereunder until the Revolving Loans and Swingline Loans shall have been Paid in Full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Asset Sales and Involuntary Dispositions</u>. Prepayment will be made on the Obligations on the third Business Day following receipt of Net Cash Proceeds in an amount equal to one hundred percent (100.0%) of the Net Cash Proceeds received from any Asset Sale or Involuntary Disposition involving any asset of any Credit Party, any Subsidiary or any other Regulated Entity (other than (A) any Asset Sales the aggregate amount of Net Cash Proceeds of which does *not exceed* Five-Hundred Thousand Dollars ($500,000) in any Fiscal Year, and (B) any Involuntary Dispositions the aggregate amount of Net Cash Proceeds of which does *not exceed* Five-Hundred Thousand Dollars ($500,000) in any Fiscal Year, in each case, to the extent such Net Cash Proceeds are *not* reinvested in the assets (but *excluding* current assets as classified by GAAP) of the Credit Parties, Subsidiaries and other Regulated Entities within one hundred eighty (180) days of the date of such Asset Sale or Involuntary Disposition (it being understood that such prepayment shall be due immediately upon the expiration of such 180-day period); <u>provided</u>, <u>that</u>, no such reinvestment shall be made upon the occurrence and during the continuance of any Event of Default). Notwithstanding anything to the contrary in the foregoing, no prepayments will be required to be made on the Obligations with respect to the receipt of Net Cash Proceeds from the sale of any portfolio assets by any Regulated Entity in the ordinary course of business.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Debt Transactions</u>. Prepayment will be made on the Obligations in an amount equal to one hundred percent (100.0%) of the Net Cash Proceeds from any Debt Transactions on the Business Day following receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Specified Equity Contributions</u>. Prepayment will be made on the Obligations in an amount equal to one hundred percent (100.0%) of the Net Cash Proceeds from any Specified Equity Contribution on the Business Day following receipt thereof.

Notwithstanding any other provision of this <u>Section</u> <u>2.11</u>, with respect to any amount of Net Cash Proceeds subject to any of the foregoing <u>clauses (c)(ii</u>) through (<u>c)(iv</u>) attributable to a Foreign Subsidiary, in the event that the Borrower determines in good faith in consultation with the Administrative Agent that the upstreaming of cash equal to such amount by such Foreign Subsidiary would (i) violate any local law (*e*. *g*., financial assistance, thin capitalization, corporate benefit, or the fiduciary and statutory duties of the directors of such Foreign Subsidiary) or any term of any Organizational Document applicable to such Foreign Subsidiary required by Applicable Law, or (ii) cause any material adverse tax consequence to the Credit Parties, Subsidiaries and other Regulated Entities, then such amount shall be *excluded* from such Net Cash Proceeds; <u>provided</u>, <u>that</u>, for one (1) year from the date on which the obligation to make the applicable prepayment arose, the Borrower and such Foreign Subsidiary shall use all commercially reasonable efforts to overcome or eliminate any such restrictions or minimize any such costs of prepayment and, if successful, shall promptly make the applicable prepayment, unless the Borrower shall have determined in good faith in consultation with the Administrative Agent that such actions would require the expenditure of a material amount of funds.

Section 2.12 <u>Application of Prepayments</u>. Within each Loan, prepayments will be applied, *<u>first</u>*, to Base Rate Loans, and *<u>then</u>*, to SOFR Loans in direct order of Interest Period maturities. In addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voluntary Prepayments</u>. Voluntary prepayments will be applied as specified by the Borrower, <u>provided</u>, <u>that</u>, in the case of prepayments on any of the Term Loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the prepayment will be applied ratably to the Term Loans then outstanding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to each Term Loan then outstanding, the prepayments will be applied to remaining principal installments thereunder as directed by the Borrower (and, absent such direction, in direct order of maturity thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mandatory Prepayments</u>. Mandatory prepayments will be applied as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Mandatory prepayments in respect of the Revolving Commitments under <u>Section</u> <u>2.11(c)(i</u>) above shall be applied to the respective Revolving Obligations, as appropriate, but without a permanent reduction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Mandatory prepayments in respect of Asset Sales and Involuntary Dispositions under <u>Section</u> <u>2.11(c)(ii</u>), Debt Transactions under <u>Section</u> <u>2.11(c)(iii</u>), and Specified Equity Contributions under <u>Section</u> <u>2.11(c)(iv</u>) shall be applied as follows: (A)*<u>first</u>*, ratably to the Term Loans, until the same are paid in full; and (B)*<u>then</u>*, to the Revolving Obligations (without a permanent reduction thereof) as follows, (I)*<u>first</u>*, to the principal balance of the Swingline Loans, until the same shall have been paid in full, to the Swingline Lender, (II)*<u>second</u>*, to the principal balance of the Revolving Loans, until the same shall have been paid in full, *pro rata* to the Lenders based on their respective Revolving Commitments, and (III)*<u>third</u>*, to Cash Collateralize the Letters of Credit as of such date *plus* any accrued and unpaid fees thereon.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Mandatory prepayments with respect to each of the Term Loans will be applied to remaining principal installments thereunder (including the installment due on the applicable Maturity Date therefor) on a *pro rata* basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Prepayments on the Obligations will be paid by the Administrative Agent to the Lenders ratably in accordance with their respective interests therein (except for Defaulting Lenders where their share will be applied as provided in <u>Section</u> <u>2.16(a)(ii</u>) hereof).

Section 2.13 <u>General Provisions Regarding Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments by the Borrower of principal, interest, fees and other Obligations hereunder or under any other Credit Document shall be made in Dollars in immediately available funds, without defense, recoupment, setoff or counterclaim, free of any restriction or condition. The Administrative Agent shall, and the Borrower hereby authorizes the Administrative Agent to, debit a deposit account of the Borrower or any of its Subsidiaries held with the Administrative Agent or any of its Affiliates and designated for such purpose by the Borrower or such Subsidiary in order to cause timely payment to be made to the Administrative Agent of all principal, interest and fees due hereunder or under any other Credit Document (subject to sufficient funds being available in its accounts for that purpose).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the Administrative Agent is unable to debit a deposit account of the Borrower or any of its Subsidiaries held with the Administrative Agent or any of its Affiliates in order to cause timely payment to be made to the Administrative Agent of all principal, interest and fees due hereunder or any other Credit Document (including because insufficient funds are available in its accounts for that purpose), payments hereunder and under any other Credit Document shall be delivered to the Administrative Agent, for the account of the Lenders, *not later than* 2:00 p.m. on the date due at the Principal Office of the Administrative Agent or via wire transfer of immediately available funds to an account designated by the Administrative Agent (or at such other location as may be designated in writing by the Administrative Agent from time to time); for purposes of computing interest and fees, funds received by the Administrative Agent after that time on such due date shall be deemed to have been paid by the Borrower on the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All payments in respect of the principal amount of any Loan (other than voluntary repayments of Revolving Loans) shall be accompanied by payment of accrued interest on the principal amount being repaid or prepaid, and all such payments (and, in any event, any payments in respect of any Loan on a date when interest is due and payable with respect to such Loan) shall be applied to the payment of interest then due and payable before application to principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall promptly distribute to each Lender at such address as such Lender shall indicate in writing, such Lender's applicable *pro rata* share of all payments and prepayments of principal and interest due to such Lender hereunder, together with all other amounts due with respect thereto, including all fees payable with respect thereto, to the extent received by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary in the foregoing provisions hereof, if any Conversion / Continuation Notice is withdrawn as to any Affected Lender or if any Affected Lender makes Base Rate Loans in lieu of its *pro rata* share of any SOFR Loans, the Administrative Agent shall give effect thereto in apportioning payments received thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subject to the provisos set forth in the definition of "*Interest Period*", whenever any payment to be made hereunder shall be stated to be due on a day that is *not* a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest hereunder or of the Commitment Fee hereunder, but such payment shall be deemed to have been made on the date therefor for all other purposes hereunder.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Administrative Agent may, but shall *not* be obligated to, deem any payment by, or on behalf of, the Borrower hereunder that is *not* made in same day funds prior to 2:00 p.m. to be a non-conforming payment. Any such payment shall *not* be deemed to have been received by the Administrative Agent until the *later* of: (i) the time such funds become available funds; and (ii) the applicable next Business Day. The Administrative Agent shall give prompt telephonic notice to the Borrower and each applicable Lender (confirmed in writing) if any payment is non-conforming. Any non-conforming payment may constitute or become a Default or Event of Default in accordance with the terms of <u>Section</u> <u>9.1(a</u>). Interest shall continue to accrue on any principal as to which a non-conforming payment is made until such funds become available funds (but in no event *less than* the period from the date of such payment to the next succeeding applicable Business Day) at the Default Rate (unless otherwise provided by the Required Lenders) from the date such amount was due and payable until the date such amount is Paid in Full.

Section 2.14 <u>Sharing of Payments by Lenders</u>. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of, or interest on, any of its Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of such Loans and accrued interest thereon or other such obligations *greater than* its *pro rata* share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of, and accrued interest on, their respective Loans and other amounts owing them; <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the provisions of this Section shall *not* be construed to apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any payment made by the Borrower pursuant to, and in accordance with, the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any amounts applied by the Swingline Lender to outstanding Swingline Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any amounts applied to Letter of Credit Obligations by the Issuing Bank or Swingline Loans by the Swingline Lender, as appropriate, from Cash Collateral provided under <u>Section</u> <u>2.15</u> or <u>Section</u> <u>2.16</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any payment obtained by a Lender as consideration for the assignment of, or sale of, a participation in any of its Loans, or participations in Letter of Credit Obligations, Swingline Loans or other obligations hereunder, to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this <u>Section</u> <u>2.14</u> shall apply).

------

Each of the Credit Parties consents to the foregoing and agrees, to the extent it may effectively do so under Applicable Laws, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Credit Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Credit Party in the amount of such participation.

Section 2.15 <u>Cash Collateral</u>. At any time that there shall exist a Defaulting Lender, within one (1) Business Day following the written request of the Administrative Agent or the Issuing Bank (with a copy to the Administrative Agent) the Borrower shall Cash Collateralize the Issuing Bank's Fronting Exposure with respect to such Defaulting Lender in an amount sufficient to cover the applicable Fronting Exposure (after giving effect to <u>Section</u> <u>2.16(a)(iv</u>) and any Cash Collateral provided by the Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant of Security Interest</u>. The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grants to the Administrative Agent, for the benefit of the Issuing Bank, and agrees to maintain, a perfected first priority security interest in all such Cash Collateral as security for the Defaulting Lenders' obligation to fund participations in respect of Letter of Credit Obligations, to be applied pursuant to <u>clause (b</u>) below. If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent and the Issuing Bank as herein provided, or that the total amount of such Cash Collateral is less than the applicable Fronting Exposure, the Borrower will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Application</u>. Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this <u>Section</u> <u>2.15</u> or <u>Section</u> <u>2.16</u> in respect of Letters of Credit shall be applied to the satisfaction of the Defaulting Lender's obligation to fund participations in respect of Letter of Credit Obligations (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided for herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Requirement</u>. Cash Collateral (or the appropriate portion thereof) provided to reduce the Issuing Bank's Fronting Exposure shall no longer be required to be held as Cash Collateral pursuant to this <u>Section</u> <u>2.15</u> following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the elimination of the applicable Fronting Exposure (including by the termination of Defaulting Lender status of the applicable Lender); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the determination by the Administrative Agent and the Issuing Bank that there exists excess Cash Collateral;

<u>provided</u>, <u>that</u>, (x) that Cash Collateral furnished by, or on behalf of, a Credit Party shall *not* be released during the continuance of a Default or Event of Default (and, following application as provided in this <u>Section</u> <u>2.15</u>, may be otherwise applied in accordance with <u>Section</u> <u>9.3</u>) but shall be released upon the cure, termination or waiver of such Default or Event of Default in accordance with the terms of this Agreement, and (y) the Person providing Cash Collateral and the Issuing Bank or Swingline Lender, as applicable, may agree that Cash Collateral shall *not* be released, but instead held to support future anticipated Fronting Exposure or other obligations.

------

Section 2.16 <u>Defaulting Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Defaulting Lender Adjustments</u>. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Waivers and Amendments</u>. Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in <u>Section</u> <u>11.4(a)(iii</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Defaulting Lender Waterfall</u>. Any payment of principal, interest, fees or other amount (other than fees which any Defaulting Lender is not entitled to receive pursuant to <u>clause</u> <u>(a)(iii</u>) below) received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to <u>Article 9</u> or otherwise, and including any amounts made available to the Administrative Agent by that Defaulting Lender pursuant to <u>Section</u> <u>11.3</u>), shall be applied at such time or times as may be determined by the Administrative Agent as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) *<u>first</u>*, to the payment of any amounts owing by that Defaulting Lender to the Administrative Agent hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) *<u>second</u>*, to the payment on a *pro rata* basis of any amounts owing by that Defaulting Lender to the Issuing Bank or the Swingline Lender hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) *<u>third</u>*, to Cash Collateralize the Issuing Bank's Fronting Exposure with respect to such Defaulting Lender in accordance with <u>Section</u> <u>2.15</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) *<u>fourth</u>*, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which that Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) *<u>fifth</u>*, if so determined by the Administrative Agent and the Borrower, to be held in a non-interest bearing deposit account and released in order to: (I) satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this Agreement; and (II) Cash Collateralize the Issuing Bank's future Fronting Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with <u>Section</u> <u>2.15</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) *<u>sixth</u>*, to the payment of any amounts owing to the Lenders, the Issuing Bank or the Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the Issuing Bank or the Swingline Lender against that Defaulting Lender as a result of that Defaulting Lender's breach of its obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) *<u>seventh</u>*, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against that Defaulting Lender as a result of that Defaulting Lender's breach of its obligations under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) *<u>eighth</u>*, to that Defaulting Lender or as otherwise directed by a court of competent jurisdiction;

------

<u>provided</u>, <u>that</u>, if (x) such payment is a payment of the principal amount of any Loans or Letter of Credit Borrowings in respect of which that Defaulting Lender has *not* fully funded its appropriate share, and (y) such Loans or Letter of Credit Borrowings were made at a time when the conditions set forth in <u>Section</u> <u>5.2</u> were satisfied or waived, such payment shall be applied *solely* to the pay the Loans of, and Letter of Credit Borrowings owed to, all Non-Defaulting Lenders on a *pro rata* basis, prior to being applied to the payment of any Loans of, or Letter of Credit Borrowings owed to, such Defaulting Lender, until such time as all Loans and funded and unfunded participations in Letter of Credit Obligations and Swingline Loans are held by the Lenders *pro rata* in accordance with their Revolving Commitments without giving effect to <u>clause (a)(iv</u>) below. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this <u>clause (a)(ii</u>) shall be deemed paid to (and the underlying obligations satisfied to the extent of such payment) and redirected by that Defaulting Lender, and each Lender irrevocably consents hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Certain Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Such Defaulting Lender shall *not* be entitled to receive any Commitment Fee, any fees with respect to Letters of Credit (except as provided in <u>clause (b</u>) below) or any other fees hereunder for any period during which that Lender is a Defaulting Lender (and the Borrower shall *not* be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Each Defaulting Lender shall be entitled to receive Letter of Credit Fees for any period during which that Lender is a Defaulting Lender only to the extent allocable to its Revolving Commitment Percentage of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to <u>Section</u> <u>2.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) With respect to any fee *not* required to be paid to any Defaulting Lender pursuant to <u>clause (a)(iii)(A</u>) or (<u>a)(iii)(B</u>) above, the Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender's participation in Letter of Credit Obligations or Swingline Loans that has been reallocated to such Non-Defaulting Lender pursuant to <u>clause (a)(iv</u>) below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) pay to the Issuing Bank and Swingline Lender, as applicable, the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to the Issuing Bank's or Swingline Lender's Fronting Exposure to such Defaulting Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) *not* be required to pay the remaining amount of any such fee. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Reallocation of Participations to Reduce Fronting Exposure</u>. All, or any part, of such Defaulting Lender's participation in Letter of Credit Obligations and Swingline Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Revolving Commitment Percentages (calculated without regard to such Defaulting Lender's Revolving Commitment), but only to the extent that: (x) the conditions set forth in <u>Section</u> <u>5.2</u> are satisfied at the time of such reallocation (and, unless the Borrower shall have otherwise notified the Administrative Agent at such time, the Borrower shall be deemed to have represented and warranted that such conditions are satisfied at such time); and (y) such reallocation does *not* cause

------

the aggregate Revolving Credit Exposure at such time to *exceed* such Non-Defaulting Lender's Revolving Commitment. No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender's increased exposure following such reallocation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Cash Collateral, Repayment of Swingline Loans</u>. If the reallocation described in <u>clause (a)(iv</u>) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) *<u>first</u>*, prepay Swingline Loans in an amount equal to the Swingline Lender's Fronting Exposure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) *<u>second</u>*, Cash Collateralize the Issuing Bank's Fronting Exposure in accordance with the procedures set forth in <u>Section</u> <u>2.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Defaulting Lender Cure</u>. If the Borrower, the Administrative Agent and the Swingline Lender and the Issuing Bank agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon, as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit and Swingline Loans to be held *pro rata* by the Lenders in accordance with the Revolving Commitments (without giving effect to <u>clause (a)(iv</u>) above), whereupon such Lender will cease to be a Defaulting Lender; <u>provided</u>, <u>that</u>, no adjustments will be made retroactively with respect to fees accrued or payments made by, or on behalf of, the Borrower while that Lender was a Defaulting Lender; and <u>provided</u>, <u>further</u>, <u>that</u>, except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>New Swingline Loans / Letters of Credit</u>. So long as any Lender is a Defaulting Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Swingline Lender shall *not* be required to fund Swingline Loans unless it is satisfied that it will have no Fronting Exposure after giving effect to such Swingline Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Issuing Bank shall *not* be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.

Section 2.17 <u>Removal or Replacement of Lenders</u>. If:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender requests compensation under <u>Section</u> <u>3.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Credit Party is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>3.3</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Lender gives notice of an inability to fund SOFR Loans under <u>Section</u> <u>3.1(b</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any Lender is a Defaulting Lender; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any Lender (a "*<u>Non</u>*<u>-</u>*<u>Consenting Lender</u>*") does *not* consent (including by way of a failure to respond in writing to a proposed amendment, consent or waiver by the date and time specified by the Administrative Agent) to a proposed amendment, consent, change, waiver, discharge or termination hereunder or with respect to any Credit Document that has been approved by the Required Lenders;

then, the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate without recourse (in accordance with, and subject to, the restrictions contained in, and consents required by, <u>Section</u> <u>11.5</u>), all of its interests, rights (other than its rights under <u>Section</u> <u>3.2</u>, <u>Section</u> <u>3.3</u> and <u>Section</u> <u>11.2</u>) and obligations under this Agreement and the related Credit Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower shall have paid to the Administrative Agent the assignment fee specified in <u>Section</u> <u>11.5(b)(iv</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in Letter of Credit Borrowings, as applicable, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Credit Documents (including any amounts under <u>Section</u> <u>3.1(c</u>)) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any such assignment resulting from a claim for compensation under <u>Section</u> <u>3.2</u> or payments required to be made pursuant to <u>Section</u> <u>3.3</u>, such assignment is reasonably expected to result in a reduction in such compensation or payments thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such assignment does *not* conflict with Applicable Laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in the case of any such assignment resulting from a Non-Consenting Lender's failure to consent to a proposed amendment, consent, change, waiver, discharge or termination, the successor replacement Lender shall have consented to the proposed amendment, consent, change, waiver, discharge or termination.

Each Lender agrees that in the event it, or its interests in the Loans and obligations hereunder, shall become subject to the replacement and removal provisions of this Section, it will cooperate with the Borrower and the Administrative Agent to give effect to the provisions hereof, including execution and delivery of an Assignment Agreement in connection therewith, but the replacement and removal provisions of this Section shall be effective regardless of whether an Assignment Agreement shall have been given.

A Lender shall *not* be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

------

**Article 3** 

**<u>YIELD PROTECTION</u>**

Section 3.1 <u>Making or Maintaining SOFR Loans; Benchmark Replacement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Inability to Determine Rates</u>. Notwithstanding anything to the contrary in this Agreement or any other Credit Document (<u>provided</u>, <u>that</u>, for the avoidance of doubt, any Swap Agreement shall be deemed *not* to be a "*Credit Document*" for purposes of this <u>Section</u> <u>3.1</u>), in the event that the Administrative Agent shall have determined (which determination shall be final and conclusive and binding upon all parties to this Agreement), on any Interest Rate Determination Date with respect to any SOFR Loans, that reasonable and adequate means do *not* exist for ascertaining the interest rate applicable to such SOFR Loans on the basis provided for in the definition of "*Term SOFR*" (and any related defined terms used therein) in <u>Section</u> <u>1.1</u>, then the Administrative Agent shall give notice (either by telefacsimile or by telephone confirmed in writing) to the Borrower and each Lender of such determination, whereupon and whereafter, (i) no Loans may or shall be made as, or continued as or converted into, SOFR Loans until such time as the Administrative Agent shall have notified the Borrower and the Lenders in writing that the event(s) and/or circumstance(s) giving rise to such initial determination no longer exist, (ii) any Funding Notice(s) and/or any Conversion / Continuation Notice(s) given by the Borrower with respect to any Loan(s) in respect of which such determination was made shall be deemed to have been rescinded by the Borrower, and (iii) all such Loan(s) described in the foregoing <u>clause (a)(ii</u>) shall be automatically made or continued as, or converted into, as applicable, Base Rate Loans on the last day of the then-current Interest Period applicable thereto (without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u>), unless the Borrower shall have prepaid such Loan(s) in accordance with this Agreement; <u>provided</u>, <u>that</u>, if the event(s) and/or circumstance(s) giving rise to such initial determination shall have occurred but only with respect to certain (but *not* all) of the tenors of the then applicable term rate Benchmark (including, for the avoidance of doubt, the SOFR Reference Rate for any applicable tenor), then (A) the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such illegal or impracticable tenor, and (B) if a tenor that was removed pursuant to the foregoing <u>clause (a)(A</u>) is subsequently displayed on a screen or information service for a Benchmark, then the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Illegality or Impracticability of the Benchmark</u>. Subject to <u>clause (g</u>) below, in the event that, on any date, any Lender shall have determined (which determination (A) shall be final and conclusive and binding upon all parties to this Agreement, but (B) shall be made only after written notice to, and consultation with, the Borrower and the Administrative Agent) that a Benchmark Illegality / Impracticability Event has occurred with respect to such Lender, then such Lender shall be an "*<u>Affected</u> <u>Lender</u>*" and such Lender shall, on that date, give notice (either by telefacsimile or by telephone confirmed in writing) to the Borrower and the Administrative Agent of such determination (which notice the Administrative Agent shall promptly transmit to each other Lender). Thereafter: (i) the obligation of such Affected Lender to make Loans as, or to continue Loans as or to convert Loans to, SOFR Loans shall be suspended, until such notice shall have been withdrawn by such Affected Lender in writing to the Administrative Agent and the Borrower; (ii) to the extent that such determination by such Affected Lender relates to a SOFR Loan, or to a continuation thereof or a conversion of outstanding Loans thereto, then being requested by the Borrower pursuant to a Funding Notice or Conversion / Continuation Notice (as applicable), then the Affected Lender shall make such Loan as (or convert such Loan to, as applicable) a Base Rate Loan, determined without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u>; (iii) such Affected Lender's obligation to maintain its outstanding SOFR Loans (the "*<u>Affected</u> <u>Loans</u>*") shall be terminated at the *earlier* to occur of (A) the expiration of the Interest Period then in effect with respect to such Affected Loans, or (B) when required by Applicable Law; and (iv) such Affected Loans shall automatically convert into Base Rate Loans, determined without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u>, on the date of such termination described in the foregoing <u>clause (b)(iii</u>). Notwithstanding anything to the contrary in the foregoing of this <u>clause (b</u>), to the extent that a determination by an Affected Lender as described above relates to a SOFR Loan (or a continuation thereof or a conversion of outstanding Loans thereto) then being requested by the Borrower

------

pursuant to a Funding Notice or Conversion / Continuation Notice (as applicable), then the Borrower shall have the option, subject to the provisions of the foregoing <u>clause (a</u>), to rescind such Funding Notice or Conversion / Continuation Notice (as applicable) as to all Lenders by giving notice (either by telefacsimile or telephone confirmed in writing) to the Administrative Agent of such rescission on the date on which such Affected Lender gives notice of its determination as described in the foregoing of this <u>clause (b</u>) (which notice of rescission the Administrative Agent shall promptly transmit to each other Lender). Except as otherwise provided in the immediately preceding sentence, nothing in this <u>clause (b</u>) shall affect the obligation of any Lender, other than an Affected Lender, to make or maintain Loans as, or to continue outstanding Loans as or convert outstanding Loans into, SOFR Loans in accordance with the terms of this Agreement. Notwithstanding anything to the contrary in the foregoing, if a Benchmark Illegality / Impracticability Event shall have occurred but only with respect to certain (but *not* all) of the tenors of the then applicable term rate Benchmark (including, for the avoidance of doubt, the SOFR Reference Rate for any applicable tenor), then: (I) the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such illegal or impracticable tenor; and (II) if a tenor that was removed pursuant to the foregoing <u>clause (b)(I</u>) is *not*, or is no longer, subject to a Benchmark Illegality / Impracticability Event, then the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Compensation for Breakage or Non-Commencement of Interest Periods</u>. The Borrower shall compensate each Lender, upon written request by such Lender (which request shall set forth the basis for requesting such amounts), for all reasonable out-of-pocket losses, expenses and liabilities (including any interest paid, or calculated to be due and payable, by such Lender to lenders of funds borrowed by it to make or carry its SOFR Loans, and any loss, expense or liability sustained by such Lender in connection with the liquidation or re-employment of such funds, but *excluding* loss of anticipated profits) that such Lender sustains if: (i) for any reason (other than a default by such Lender), a borrowing of any SOFR Loans does *not* occur on a date specified therefor in a Funding Notice (or a telephonic request for borrowing), or a conversion to, or continuation of, any SOFR Loans does *not* occur on a date specified therefor in a Conversion / Continuation Notice (or a telephonic request for conversion or continuation); (ii) any prepayment or other principal payment of, or any conversion of, any of its SOFR Loans occurs on any day other than the last day of an Interest Period applicable to that Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise), including as a result of an assignment in connection with the replacement of a Lender pursuant to <u>Section</u> <u>2.17</u>; or (iii) any prepayment of any of its SOFR Loans is *not* made on any date specified in a notice of prepayment given by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Booking of SOFR Loans</u>. Any Lender may make, carry or transfer SOFR Loans at, to, or for the account of any of its branch offices or the office of an Affiliate of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certificates for Reimbursement</u>. A certificate of a Lender setting forth, in reasonable detail, the amount(s) necessary to compensate such Lender, as specified in the foregoing <u>clause (c</u>), and the circumstances giving rise thereto, shall be delivered to the Borrower and shall be conclusive absent manifest error. In the absence of any such manifest error, the Borrower shall pay to the applicable Lender or the Issuing Bank, as the case may be, the amount(s) shown as due on any such certificate promptly and, in any event, within ten (10) Business Days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Delay in Requests</u>. The Borrower shall *not* be required to compensate a Lender pursuant to the foregoing <u>clause (c</u>) for any such amount(s) incurred *more than* six (6) calendar months *prior* to the date on which such Lender shall have delivered to the Borrower the certificate referenced in the foregoing <u>clause (e</u>).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Benchmark Replacement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Generally</u>*. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, if the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error), or the Required Lenders (individually or jointly) notify the Administrative Agent (with, in the case of the Required Lenders, a copy delivered to the Borrower) that the Required Lenders (as applicable) have determined, that a Benchmark Illegality / Impracticability Event has occurred, then, on a date and time determined by the Administrative Agent (any such date, a "*<u>Benchmark Replacement Date</u>*"), which date shall be at the end of an Interest Period or on the relevant Interest Payment Date, as applicable, for interest calculated, the then current Benchmark shall be replaced under this Agreement and the other Credit Documents with the Benchmark Replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Amendment</u>*. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, (A) if the Administrative Agent determines that any alternative Benchmark (other than the SOFR Reference Rate for any applicable tenor) set forth in the definition of "*Benchmark Replacement*" in <u>Section</u> <u>1.1</u> is available on, or prior to, the applicable Benchmark Replacement Date, or (B) a Benchmark Illegality / Impracticability Event has occurred with respect to a Benchmark Replacement (other than the SOFR Reference Rate for any applicable tenor) then in effect, then, in each case of the foregoing <u>clauses (g)(ii)(A</u>) and (<u>g)(ii)(B</u>), the Administrative Agent and the Borrower may amend this Agreement *solely* for the purpose of replacing the SOFR Reference Rate (for any applicable tenor), or any then current Benchmark Replacement, in accordance with this <u>Section</u> <u>3.1</u> at the end of any applicable Interest Period, relevant Interest Payment Date or payment period for interest calculated, as applicable, with another alternate benchmark rate, in any such case, giving due consideration to any evolving, or then existing, convention(s) for similar Dollar-denominated syndicated credit facilities for such alternative benchmark(s), and, in each case, including any mathematical or other adjustments to such benchmark(s) (giving due consideration to any evolving, or then existing, convention(s) for similar Dollar-denominated syndicated credit facilities for such benchmark(s)), which adjustment(s), or method(s) for calculating such adjustment(s), shall be published on an information service as selected by the Administrative Agent from time to time in its reasonable discretion and may be periodically updated. For the avoidance of doubt, any such proposed rate and adjustment(s) shall constitute a Benchmark Replacement. Any such amendment shall become effective at 5:00 P.M. (New York City time) on the date that is five (5) Business Days *after* the date on which the Administrative Agent shall have posted a copy of such proposed amendment to all Lenders and the Borrower, without any further action(s) and/or consent(s) of any Credit Party, any other party to this Agreement or any other Credit Document and/or any other Person, so long as the Administrative Agent has *not* received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>Notices</u>*. The Administrative Agent shall notify (in one (1) or more notices) the Borrower and each Lender of the implementation of any Benchmark Replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *<u>Administration of Benchmark Replacement</u>*. Any Benchmark Replacement shall be applied in a manner consistent with market practice; <u>provided</u>, <u>that</u>, to the extent that such market practice is *not* administratively feasible for the Administrative Agent, then such Benchmark Replacement shall be applied in a manner as otherwise reasonably determined by the Administrative Agent.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *<u>Floor</u>*. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, if, at any time, any Benchmark Replacement, as determined in accordance with this <u>Section</u> <u>3.1</u> and the related definitions in <u>Section</u> <u>1.1</u>, shall be *less than* the Floor, then such Benchmark Replacement shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents; <u>provided</u>, <u>that</u>, notwithstanding anything to the contrary in this Agreement or in any other Credit Document, at any time that the applicable interest rate for Base Rate Loans is determined without reference to clause (c) of the definition of "*Base Rate*" in <u>Section</u> <u>1.1</u> by operation of this <u>Section</u> <u>3.1</u>, then the "*Floor*", for purposes of calculating such applicable interest rate, shall be increased by one percent (1.00%) per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *<u>Conforming Changes</u>*. In connection with the use, administration, adoption and/or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Conforming Changes from time to time in consultation with the Borrower, and, notwithstanding anything to the contrary in this Agreement or in any other Credit Document, any amendments implementing such Conforming Changes will become effective without any further action(s) and/or consent(s) of any Credit Party, any other party to this Agreement or any other Credit Document and/or any other Person; <u>provided</u>, <u>that</u>, with respect to any such amendment effected in reliance on this <u>clause (g)(vi</u>), the Administrative Agent shall post a copy of such amendment implementing such Conforming Changes to the Borrower and the Lenders reasonably promptly after such amendment becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) *<u>Standards for Decisions and Determinations</u>*. Any determination, decision, or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this <u>clause (g</u>), including, without limitation, any determination with respect to a tenor, rate or adjustment, or of the occurrence or non-occurrence of an event, circumstance or date, and any decision to take, or refrain from taking, any action or any selection, will be conclusive and binding absent manifest error, and may be made in its or their, as applicable, sole discretion, and, in any event, without consent from any Credit Party, any other party to this Agreement or any other Credit Document or any other Person, except, in each case, as expressly required pursuant to this <u>clause (g</u>).

Section 3.2 <u>Increased Costs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Increased Costs Generally</u>. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender or the Issuing Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in <u>clauses (b</u>) through (<u>d</u>) of the definition of "*Excluded Taxes*", and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on any Lender or the Issuing Bank or the secured overnight financing or any other applicable interbank lending market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein;

------

and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its obligation to make any such Loan, or to increase the cost to such Lender, the Issuing Bank or such other Recipient of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender, Issuing Bank or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, Issuing Bank or other Recipient, the Borrower will pay to such Lender, Issuing Bank or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender, Issuing Bank or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Capital and Liquidity Requirements</u>. If any Lender, the Issuing Bank or the Swingline Lender (for purposes hereof, may be referred to collectively as "*the Lenders*" or a "*Lender*") determines that any Change in Law affecting such Lender or any lending office of such Lender or such Lender's holding company, if any, regarding capital or liquidity ratios or requirements has or would have the effect of reducing the rate of return on such Lender's capital or on the capital of such Lender's holding company, if any, as a consequence of this Agreement, the commitments of such Lender hereunder or the Loans made by, or participations in Letters of Credit and Swingline Loans held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or such Lender's holding company could have achieved but for such Change in Law (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender, as the case may be, such additional amount or amounts as will compensate such Lender or such Lender's holding company for any such reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificates for Reimbursement</u>. A certificate of a Lender or the Issuing Bank setting forth in reasonable detail the amount or amounts necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be, as specified in <u>clauses (a</u>) or (<u>b</u>) above and the circumstances giving rise thereto shall be delivered to the Borrower and shall be conclusive absent manifest error. In the absence of any such manifest error, the Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within ten (10) Business Days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delay in Requests</u>. Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section shall *not* constitute a waiver of such Lender's or the Issuing Bank's right to demand such compensation, <u>provided</u>, <u>that</u>, the Borrower shall *not* be required to compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs incurred or reductions suffered *more than* six (6) months prior to the date that such Lender or the Issuing Bank, as the case may be, delivers to the Borrower the certificate referenced in <u>clause (c</u>) above and notifies the Borrower of such Lender's or the Issuing Bank's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).

Section 3.3 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Issuing Bank</u>. For purposes of this <u>Section</u> <u>3.3</u>, the term "*Lender*" shall include the Issuing Bank and the term "*Applicable Laws*" shall include FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes</u>. Any and all payments by, or on account of, any obligation of any Credit Party hereunder or under any other Credit Document shall be made without deduction or withholding for any Taxes, except as required by Applicable Laws. If any Applicable Laws (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a

------

Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Laws and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Credit Party shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment of Other Taxes by the Credit Parties</u>. The Credit Parties shall timely pay to the relevant Governmental Authority in accordance with Applicable Laws, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Tax Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Credit Parties shall jointly and severally indemnify each Recipient and shall make payment in respect thereof within ten (10) Business Days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of any such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Lender shall severally indemnify the Administrative Agent, within ten (10) Business Days after demand therefor, for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Indemnified Taxes attributable to such Lender (but only to the extent that any Credit Party has *not* already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Credit Parties to do so);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Taxes attributable to such Lender's failure to comply with the provisions of <u>Section</u> <u>11.5(d</u>) relating to the maintenance of a Participant Register; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Excluded Taxes attributable to such Lender;

in each case, that are payable or paid by the Administrative Agent in connection with any Credit Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Credit Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this <u>clause (d)(ii</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by any Credit Party to a Governmental Authority pursuant to this Section, such Credit Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of a return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Status of Lenders; Tax Documentation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Credit Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by Applicable Laws or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two (2) sentences, the completion, execution and submission of such documentation (other than such documentation set forth in <u>clauses (f)(ii)(A</u>), (<u>f)(ii)(B</u>) and (<u>f)(ii)(D</u>) below) shall *not* be required if, in the Lender's reasonable judgment, such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), duly completed and executed originals of IRS Form W–9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party: (x) with respect to payments of interest under any Credit Document, duly completed and executed originals of IRS Form W–8BEN–E (or W–8BEN as applicable) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty; and (y) with respect to any other applicable payments under any Credit Document, IRS Form W–8BEN–E (or W–8BEN as applicable) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) duly completed and executed originals of IRS Form W–8ECI;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 871 or 881(c) of the Internal Revenue Code: (x) a certificate substantially in the form of <u>Exhibit 3.3–1</u> to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Internal Revenue Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Internal Revenue Code (a "*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Tax Compliance Certificate</u>*"); and (y) duly completed and executed originals of IRS Form W–8BEN–E (or W–8BEN as applicable); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) to the extent a Foreign Lender is not the beneficial owner, duly completed and executed originals of IRS Form W–8IMY, accompanied by IRS Form W–8ECI, IRS Form W–8BEN–E (or W–8BEN as applicable), a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit 3.3–2</u> or <u>Exhibit 3.3–</u><u>3</u>, IRS Form W–9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u>, <u>that</u>, if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit 3.3–4</u> on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), duly executed originals of any other form prescribed by Applicable Laws as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Laws to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if a payment made to a Lender under any Credit Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by Applicable Laws (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this <u>clause (f)(ii)(D</u>), "*<u>FATCA</u>*" shall include any amendments made to FATCA after the date of this Agreement.

------

Each Lender agrees that, if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Treatment of Certain Refunds</u>. Unless required by Applicable Laws, at no time shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a Lender, or have any obligation to pay to any Lender, any refund of Taxes withheld or deducted from funds paid for the account of such Lender. If any indemnified party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this <u>Section</u> <u>3.3</u> (including by the payment of additional amounts pursuant to this <u>Section</u> <u>3.3</u>), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this <u>Section</u> <u>3.3</u> with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of the indemnified party, shall repay to such indemnified party the amount paid over pursuant to this <u>clause (g</u>) (*plus* any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this <u>clause (g</u>), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this <u>clause (g</u>) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification, and giving rise to such refund, had not been deducted, withheld or otherwise imposed, and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Survival</u>. Each party's obligations under this <u>Section</u> <u>3.3</u> shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Credit Document.

Section 3.4 <u>Mitigation Obligations; Designation of a Different Lending Office</u>. If any Lender requests compensation under <u>Section</u> <u>3.2</u>, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>3.3</u>, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment: (i) would eliminate or reduce amounts payable pursuant to <u>Section</u> <u>3.2</u> or <u>Section</u> <u>3.3</u>, as the case may be, in the future; and (ii) would *not* subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

------

**Article 4** 

**<u>GUARANTY</u>**

Section 4.1 <u>The Guaranty</u>. Each of the Guarantors hereby jointly and severally guarantees to the Administrative Agent, the Lenders, the Qualifying Swap Providers, the Qualifying Treasury Management Banks and the other holders of the Obligations as hereinafter provided, as primary obligor and not as surety, the prompt payment of the Obligations (the "*<u>Guaranteed Obligations</u>*") in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise) strictly in accordance with the terms thereof. The Guarantors hereby further agree that, if any of the Obligations are *not* Paid in Full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise), the Guarantors will, jointly and severally, promptly pay the same, without any demand or notice whatsoever, and that, in the case of any extension of time of payment or renewal of any of the Obligations, the same will be promptly Paid in Full when due (whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise) in accordance with the terms of such extension or renewal.

Notwithstanding any provision to the contrary contained herein, in any other of the Credit Documents, Swap Agreements, Treasury Management Agreements or other documents relating to the Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the obligations of each Guarantor under this Agreement and the other Credit Documents shall be limited to an aggregate amount equal to the largest amount that would *not* render such obligations subject to avoidance under the Debtor Relief Laws or any comparable provisions of any applicable state law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Guaranteed Obligations of a Guarantor shall *exclude* any Excluded Swap Obligations with respect to such Guarantor.

Section 4.2 <u>Obligations Unconditional</u>. The obligations of the Guarantors under <u>Section</u> <u>4.1</u> are joint and several, absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of any of the Credit Documents, Swap Agreements or Treasury Management Agreements, or any other agreement or instrument referred to therein, or any substitution, release, impairment or exchange of any other guarantee of or security for any of the Obligations, and, to the fullest extent permitted by Applicable Laws, irrespective of any law or regulation or other circumstance whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this <u>Section</u> <u>4.2</u> that the obligations of the Guarantors hereunder shall be absolute and unconditional under any and all circumstances. Each Guarantor agrees that such Guarantor shall have no right of subrogation, indemnity, reimbursement or contribution against the Borrower or any other Guarantor for amounts paid under this <u>Article 4</u> until such time as the Obligations have been Paid in Full. Without limiting the generality of the foregoing, it is agreed that, to the fullest extent permitted by Applicable Law, the occurrence of any one or more of the following shall not alter or impair the liability of any Guarantor hereunder, which shall remain absolute and unconditional as described above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at any time or from time to time, without notice to any Guarantor, the time for any performance of or compliance with any of the Obligations shall be extended, or such performance or compliance shall be waived;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any of the acts mentioned in any of the provisions of any of the Credit Documents, any Secured Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, or any Secured Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand, or any other agreement or instrument referred to in the Credit Documents, such Secured Swap Agreements or such Secured Treasury Management Agreements shall be done or omitted;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the maturity of any of the Obligations shall be accelerated, or any of the Obligations shall be modified, supplemented or amended in any respect, or any right under any of the Credit Documents, any Secured Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, or any Secured Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand, or any other agreement or instrument referred to in the Credit Documents, such Secured Swap Agreements or such Secured Treasury Management Agreements shall be waived or any other guarantee of any of the Obligations or any security therefor shall be released, impaired or exchanged in whole or in part or otherwise dealt with;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Lien granted to, or in favor of, the Administrative Agent or any Lender or Lenders as security for any of the Obligations shall fail to attach or be perfected; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any of the Obligations shall be determined to be void or voidable (including, without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to the claims of any Person (including, without limitation, any creditor of any Guarantor).

With respect to its obligations hereunder, each Guarantor hereby expressly waives diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that the Administrative Agent or any Lender exhaust any right, power or remedy or proceed against any Person under any of the Credit Documents, any Secured Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, or any Secured Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand, or any other agreement or instrument referred to in the Credit Documents, such Secured Swap Agreements or such Secured Treasury Management Agreements, or against any other Person under any other guarantee of, or security for, any of the Obligations.

Section 4.3 <u>Reinstatement</u>. The obligations of the Guarantors under this <u>Article 4</u> shall be automatically reinstated if, and to the extent that, for any reason, any payment by, or on behalf of, any Person in respect of the Obligations is rescinded or must be otherwise restored by any holder of any of the Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and each Guarantor agrees that it will indemnify the Administrative Agent and each Lender on demand for all reasonable costs and expenses (including, without limitation, the fees, charges and disbursements of counsel) incurred by the Administrative Agent or such Lender in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.

Section 4.4 <u>Certain Additional Waivers</u>. Each Guarantor agrees that such Guarantor shall have no right of recourse to security for the Obligations, except through the exercise of rights of subrogation pursuant to <u>Section</u> <u>4.2</u> and through the exercise of rights of contribution pursuant to <u>Section</u> <u>4.6</u>.

Section 4.5 <u>Remedies</u>. The Guarantors agree that, to the fullest extent permitted by Applicable Law, as between the Guarantors, on the one hand, and the Administrative Agent and the Lenders, on the other hand, the Obligations may be declared to be forthwith due and payable as provided in <u>Section</u> <u>9.2</u> (and shall be deemed to have become automatically due and payable in the circumstances provided in said <u>Section</u> <u>9.2</u>) for purposes of <u>Section</u> <u>4.1</u> notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Obligations from becoming automatically due

------

and payable) as against any other Person and that, in the event of such declaration (or the Obligations being deemed to have become automatically due and payable), the Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by the Guarantors for purposes of <u>Section</u> <u>4.1</u>. The Guarantors acknowledge and agree that their obligations hereunder are secured in accordance with the terms of the Collateral Documents and that the Lenders may exercise their remedies thereunder in accordance with the terms thereof.

Section 4.6 <u>Rights of Contribution</u>. The Guarantors agree among themselves that, in connection with payments made hereunder, each Guarantor shall have contribution rights against the other Guarantors as permitted under Applicable Laws. Such contribution rights shall be subordinate and subject in right of payment to the obligations of such Guarantors under the Credit Documents and no Guarantor shall exercise such rights of contribution until all Obligations have been Paid in Full.

Section 4.7 <u>Guarantee of Payment; Continuing Guarantee</u>. The guarantee in this <u>Article 4</u> is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to all Obligations whenever arising.

Section 4.8 <u>Keepwell</u>. Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Specified Credit Party to honor all of such Specified Credit Party's obligations under the Guaranty and the Collateral Documents in respect of Swap Obligations (<u>provided</u>, <u>that</u>, each Qualified ECP Guarantor shall only be liable under this <u>Section</u> <u>4.8</u> for the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor's obligations and undertakings under this <u>Article 4</u>, voidable under applicable Debtor Relief Laws, and not for any greater amount). The obligations and undertakings of each Qualified ECP Guarantor under this <u>Section</u> <u>4.8</u> shall remain in full force and effect until the Guaranteed Obligations have been indefeasibly paid and performed in full and the commitments relating thereto have expired or terminated, or, with respect to any Guarantor, if earlier, such Guarantor is released from its Guaranteed Obligations in accordance with <u>Section</u> <u>10.10(a</u>). Each Qualified ECP Guarantor intends that this <u>Section</u> <u>4.8</u> constitute, and this <u>Section</u> <u>4.8</u> shall be deemed to constitute, a "keepwell, support, or other agreement" for the benefit of each Specified Credit Party for all purposes of section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

**Article 5** 

**<u>CONDITIONS PRECEDENT</u>**

Section 5.1 <u>Conditions Precedent to Initial Credit Extensions</u>. The obligation of each Lender to make a Credit Extension on the Closing Date is subject to the satisfaction of the following conditions on or before the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Executed Credit Documents</u>. Receipt by the Administrative Agent of executed counterparts of this Agreement and the other Credit Documents, in each case, in form and substance reasonably satisfactory to the Administrative Agent and the Lenders and duly executed by the appropriate parties thereto.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organizational Documents</u>. Receipt by the Administrative Agent of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Charter Documents</u>. Copies of articles of incorporation, certificate of organization or formation, or other like document for each of the Credit Parties certified as of a recent date by the appropriate Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Organizational Documents Certificate</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Copies of bylaws, operating agreement, partnership agreement or like document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) copies of resolutions approving the transactions contemplated in connection with the financing and authorizing execution and delivery of the Credit Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) incumbency certificates, for each of the Credit Parties, in each case, certified by an Authorized Officer in form and substance reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Good Standing Certificate</u>. Copies of certificates of good standing, existence or the like of a recent date for each of the Credit Parties from the appropriate Governmental Authority of its jurisdiction of formation or organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Closing Certificate</u>. Receipt by the Administrative Agent of a certificate from an Authorized Officer of the Borrower, in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders, confirming, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all consents, approvals, authorizations, registrations, or filings required to be made or obtained by the Borrower and the other Credit Parties, if any, in connection with this Agreement and the other Credit Documents and the transactions contemplated herein and therein have been obtained and are in full force and effect, and all waiting periods with respect thereto shall have expired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no investigation or inquiry by any Governmental Authority regarding this Agreement and the other Credit Documents and the transactions contemplated herein and therein is ongoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) since the date of the most-recent annual audited financial statements for the Borrower, there has been no event or circumstance which could be reasonably expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the most-recent annual audited financial statements were prepared in accordance with GAAP or SAP (as applicable) consistently applied, except as noted therein, and fairly present, in all material respects, the financial condition and results from operations of the Credit Parties, Subsidiaries and Regulated Entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Borrower, individually, and the Credit Parties, Subsidiaries and other Regulated Entities, taken as a whole, are Solvent after giving effect to the transactions contemplated hereby and the incurrence of Indebtedness related thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the conditions set forth in <u>Section</u> <u>5.2(c</u>) and <u>Section</u> <u>5.2(d</u>) have been satisfied as of the Closing Date; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) immediately *after* giving effect to any Credit Extensions to occur on the Closing Date, the Consolidated Leverage Ratio, determined on a Pro Forma Basis (except measured for the most recent Trailing Period in respect of which financial statements of the Credit Parties, Subsidiaries and other Regulated Entities approved by the Administrative Agent are available), is *not greater than* 1.75 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Opinions of Counsel</u>. Receipt by the Administrative Agent of customary opinions of counsel for each of the Credit Parties, including, among other things, opinions regarding the due authorization, execution and delivery of the Credit Documents and the enforceability thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Personal Property Collateral</u>. Receipt by the Collateral Agent of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>UCC Financing Statements</u>. Such UCC financing statements necessary or appropriate to perfect the security interests in the personal property collateral, as determined by the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Intellectual Property Filings</u>. Such patent, trademark and copyright notices, filings and recordations necessary or appropriate to perfect the security interests in intellectual property and intellectual property rights, as determined by the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Pledged Equity Interests</u>. Original certificates evidencing any certificated Equity Interests pledged as collateral, together with undated stock transfer powers executed in blank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Evidence of Insurance</u>. Certificates of insurance for casualty, liability and any other insurance required by the Credit Documents, identifying the Collateral Agent as lender's loss payee with respect to the casualty insurance and additional insured with respect to the liability insurance, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Financial Statements</u>. Receipt and satisfactory review by the Administrative Agent of copies of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the internally-prepared quarterly unaudited consolidated and consolidating financial statements of the Credit Parties, Subsidiaries and other Regulated Entities for (A) the Fiscal Quarter ending June 30, 2024, and (B) to the extent available prior to the Closing Date, the Fiscal Quarter ending September 30, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the audited consolidated and unaudited consolidating financial statements for the Credit Parties, Subsidiaries and other Regulated Entities for the Fiscal Year ending December 31, 2023 (the "*<u>Annual Financial Statements</u>*"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such other financial information in respect of the financial condition, results of operations and cash flows of the Credit Parties, Subsidiaries and other Regulated Entities as the Administrative Agent shall have reasonably requested prior to the Closing Date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Funding Notice; Funds Disbursement Instructions</u>. The Administrative Agent shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a duly executed Funding Notice with respect to the Credit Extension to occur on the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) duly executed disbursement instructions (with wiring instructions and account information) for all disbursements to be made on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Florida Taxes</u>. The Administrative Agent shall have received either: (i) execution and delivery affidavits evidencing execution and delivery of this Agreement and the Notes outside of the State of Florida; or (ii) evidence that all applicable Florida stamp tax fees have been paid or will be paid contemporaneously with closing of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Refinancing of Existing Indebtedness</u>. Receipt by the Administrative Agent of evidence of the payment in full of existing Indebtedness (other than Indebtedness permitted to remain outstanding after the Closing Date pursuant to <u>Section</u> <u>8.1</u>), and any releases, terminations or other documents reasonably required by the Administrative Agent to evidence the payoff of such Indebtedness and release or termination of liens related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Fees and Expenses</u>. The Administrative Agent shall have confirmation that all reasonable out-of-pocket fees and expenses (and all filing and recording fees and taxes) required to be paid on or before the Closing Date have been paid, including the reasonable out-of-pocket fees and expenses of counsel for the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Patriot Act; Anti-Money Laundering Laws</u>. The provision by the Credit Parties of all documentation and other information that the Administrative Agent or any Lender requests in order to comply with its ongoing obligations under applicable "know your customer" and anti-money laundering rules and regulations, including the Patriot Act, including, without limitation, certification regarding beneficial ownership of legal entity customers (each, a "*<u>Beneficial</u> <u>Ownership Certification</u>*").

For purposes of determining compliance with the conditions specified in this <u>Section</u> <u>5.1</u>, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by, or acceptable or satisfactory to, a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

The funding of the initial Loans hereunder on the Closing Date shall evidence the satisfaction of the foregoing conditions.

Section 5.2 <u>Conditions to Each Credit Extension</u>. The obligation of each Lender to fund its respective Commitment Percentage of any Credit Extension on any Credit Date, including, without limitation, the Closing Date, are subject to the satisfaction, or waiver in accordance with <u>Section</u> <u>11.4</u>, of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Administrative Agent shall have received a fully executed and delivered Funding Notice, together with the documentation and certifications required therein with respect to each Credit Extension;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) immediately after making the Credit Extension requested on such Credit Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Aggregate Revolving Credit Exposure shall *not exceed* the Aggregate Revolving Commitment Amount; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the aggregate outstanding principal balance of any Class of Term Loans shall *not exceed* the aggregate amount of the Commitments of the Lenders of such Class that were in effect on the date(s) that such Commitments were established (as such Commitments were subsequently reduced pursuant to <u>Section</u> <u>2.11(b</u>), as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as of such Credit Date, the representations and warranties contained herein and in the other Credit Documents shall be true and correct in all material respects (except to the extent that any such representations and warranties are qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) on and as of that Credit Date, to the same extent as though made on and as of that date, except, to the extent such representations and warranties specifically relate to an earlier date, in which case, such representations and warranties shall have been true and correct in all material respects (except to the extent that any such representations and warranties are qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) on and as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) as of such Credit Date, no event shall have occurred and be continuing, or would result from the consummation of the applicable Credit Extension, that would constitute an Event of Default or a Default; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *solely* in the case of a Credit Extension consisting of an advance under the Delayed Draw Term Loan, receipt by the Administrative Agent of a certificate, duly executed by an Authorized Officer of the Borrower, certifying, on behalf of the Borrower and each of the other Credit Parties, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) both immediately *before* and immediately *after* giving effect to such Credit Extension, the Credit Parties shall be in compliance, on a Pro Forma Basis, with each of the Financial Covenants; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately *after* giving effect to such Credit Extension, the Consolidated Leverage Ratio, determined on a Pro Forma Basis, shall be *less than* 1.75 to 1.0;

in each case of the foregoing <u>clauses (e)(i</u>) and (<u>e)(ii</u>), as supported by reasonably detailed calculations attached to such certificate.

**Article 6** 

**<u>REPRESENTATIONS AND WARRANTIES</u>**

In order to induce the Agents and the Lenders to enter into this Agreement and to make each Credit Extension to be made thereby, the Borrower and each other Credit Party represents and warrants to the Administrative Agent and each Lender as follows:

Section 6.1 <u>Organization; Requisite Power and Authority; Qualification</u>. Each Credit Party, each Subsidiary and each other Regulated Entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation or formation (as the case may be) as identified in <u>Schedule 6.1</u>;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has all requisite power and authority to own and operate its respective Properties, to carry on its business as now conducted and as proposed to be conducted, to enter into the Credit Documents to which it is a party and to carry out the transactions contemplated thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is qualified to do business and in good standing in every jurisdiction where necessary to carry out its business and operations, except in jurisdictions where the failure to be so qualified or in good standing has *not* had, and could *not* be reasonably expected to have, a Material Adverse Effect.

Section 6.2 <u>Equity Interests, Ownership and Control</u>. <u>Schedule 6.2</u> correctly sets forth the ownership interest(s) or attorney-in-fact relationship(s), as applicable, of each Credit Party in or with (as applicable) each other Credit Party, Subsidiary and other Regulated Entity, together with the ownership interest(s) of each direct holder of outstanding Equity Interests in the Borrower, in each case of the foregoing, as of the Closing Date. The Equity Interests in each Credit Party, each Subsidiary and each other Regulated Entity have been duly authorized and validly issued and are fully paid and non-assessable. Except as set forth on <u>Schedule 6.2</u>, as of the Closing Date, there is no existing option, warrant, call, right, commitment, buy-sell, voting trust or other shareholder agreement or other agreement to which any Subsidiary is a party requiring, and there is no membership interest or other Equity Interests of any Subsidiary outstanding that, upon conversion or exchange, would require, the issuance by any Subsidiary of any additional membership interests or other Equity Interests of any Subsidiary or other Securities convertible into, exchangeable for or evidencing the right to subscribe for or purchase, a membership interest or other Equity Interests of any Subsidiary.

Section 6.3 <u>Due Authorization</u>. The execution, delivery and performance of the Credit Documents have been duly authorized by all necessary action on the part of each Credit Party, each Subsidiary and each other Regulated Entity that is a party thereto.

Section 6.4 <u>No Conflict</u>. The execution, delivery and performance by Credit Parties, the Subsidiaries and the other Regulated Entities of the Credit Documents to which they are parties, and the consummation of the transactions contemplated by the Credit Documents, do *not* and will *not*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) violate, in any material respect, any provision of any Applicable Laws relating to any Credit Party, any Subsidiary or any other Regulated Entity, any of the Organizational Documents of any such Person, or any order, judgment or decree of any court or other agency of government binding on any such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) except as could *not* reasonably be expected to have a Material Adverse Effect, conflict with, result in a breach of or constitute (with due notice or lapse of time or both), a default under any other Contractual Obligations of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) result in, or require the creation or imposition of, any Lien upon any of the Property of any Credit Party, any Subsidiary or any other Regulated Entity (other than any Liens created under any of the Credit Documents in favor of the Collateral Agent, for the benefit of the holders of the Obligations), whether now owned or hereafter acquired; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) require any approval of stockholders, members or partners or any approval or consent of any Person under any Contractual Obligation of any Credit Party, any Subsidiary or any other Regulated Entity.

------

Section 6.5 <u>Governmental Consents</u>. The execution, delivery and performance by the Credit Parties, the Subsidiaries and the other Regulated Entities of the Credit Documents to which they are a party, and the consummation of the transactions contemplated by the Credit Documents, do *not* and will *not* require, as a condition to the effectiveness thereof, any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority, except for filings and recordings with respect to the Collateral to be made, or otherwise delivered to the Collateral Agent for filing and/or recordation, (a) as of the Closing Date, with respect to each Credit Document executed on the Closing Date, and (b) as of such later date of execution, with respect to each Credit Document executed after the Closing Date, and other filings, recordings or consents which have been obtained or made, as applicable.

Section 6.6 <u>Binding Obligation</u>. Each Credit Document has been duly executed and delivered by each Credit Party, each Subsidiary and each other Regulated Entity that is a party thereto, and is the legally valid and binding obligation of each such Person, enforceable against each such Person in accordance with its respective terms, except as may be limited by Debtor Relief Laws or by equitable principles relating to enforceability.

Section 6.7 <u>Financial Statements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The audited consolidated balance sheet, and related consolidated statements of income or operations and cash flows, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (to the extent required to be delivered in accordance with such Section) the unaudited combined balance sheet, and related combined statements of income or operations and cash flows, of the applicable Qualifying Reciprocal Entities, in each case of the foregoing, for the most recent Fiscal Year ended with respect to which the Borrower has delivered financial statements in accordance with <u>Section</u> <u>7.1(b</u>), and the summaries/schedules prepared by management of the Borrower related thereto, including the notes thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) were prepared in accordance with GAAP or SAP (as applicable) consistently applied throughout the period covered thereby, except as otherwise expressly noted therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) fairly present, in all material respects, the financial condition of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) on a consolidated basis or of the applicable Qualifying Reciprocal Entities on a combined basis (as the case may be) as of the date thereof and their respective results of operations and cash flows for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) show all material indebtedness and other liabilities, direct or contingent, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) or of the applicable Qualifying Reciprocal Entities (as the case may be) as of the date of such financial statements, including liabilities for taxes, material commitments and Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The unaudited consolidated balance sheet, and related consolidated statements of income or operations and cash flows, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (to the extent required to be delivered in accordance with such Section) the unaudited combined balance sheet, and related combined statements of income or operations and cash flows, of the applicable Qualifying Reciprocal Entities, in each case of the foregoing, for the most recent Fiscal Quarter ended with respect to which the Borrower has delivered financial statements in accordance with <u>Section</u> <u>7.1(a</u>), and the summaries/schedules prepared by management of the Borrower related thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) were prepared in accordance with GAAP or SAP (as applicable) consistently applied throughout the period covered thereby, except as otherwise expressly noted therein;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) fairly present, in all material respects, the financial condition of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) on a consolidated basis or of the applicable Qualifying Reciprocal Entities on a combined basis (as the case may be) as of the date thereof and their respective results of operations and cash flows for the period covered thereby, subject, in the case of each of the foregoing <u>clauses (b)(i</u>) and (<u>b)(ii</u>), to the absence of footnotes and to normal year-end audit adjustments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) show all material indebtedness and other liabilities, direct or contingent, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) or of the applicable Qualifying Reciprocal Entities (as the case may be) as of the date of such financial statements, including liabilities for taxes, material commitments and Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The forecasted consolidated balance sheet, and related forecasted consolidated statements of income or operations and cash flows, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (to the extent required to be delivered in accordance with such Section) the forecasted combined balance sheet, and related forecasted combined statements of income or operations and cash flows, of the applicable Qualifying Reciprocal Entities, in each case of the foregoing, most recently delivered by the Borrower in accordance with <u>Section</u> <u>7.1(d</u>) were prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair in light of the conditions existing at the time of delivery of such forecasted financial statements, and represented, at the time of delivery, the Borrower's good faith estimate of the future financial condition and performance of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) or of the applicable Qualifying Reciprocal Entities (as the case may be) based upon assumptions believed by the Borrower to be reasonable at the time.

Section 6.8 <u>No Material Adverse Effect; No Default or Event of Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Material Adverse Effect</u>. Since December 31, 2023, no event, circumstance or change has occurred that has caused or evidences, either in any case or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Default or Event of Default</u>. No Default or Event of Default has occurred and is continuing.

Section 6.9 <u>Tax Matters</u>. Each Credit Party, each Subsidiary, and each other Regulated Entity has (a) filed all federal and state tax returns required to be filed, and has paid all federal and state taxes levied or imposed upon them or their respective Property, income, businesses and franchises that are due and payable, and (b) filed all other material tax returns and reports required to be filed, and have paid all other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their respective Property, income, businesses and franchises otherwise due and payable, except: (i) those being actively contested in good faith and by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP; or (ii) *solely* with respect to the foregoing <u>clause (b</u>), to the extent that the failure to do so could *not* reasonably be expected to result, in the aggregate when taken together, in a Material Adverse Effect.

------

Section 6.10 <u>Properties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Title</u>. Each Credit Party, each Subsidiary and each other Regulated Entity has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) good, sufficient and legal title to (in the case of fee-owned Real Estate Assets),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) valid leasehold interests in (in the case of leasehold interests in real or personal Property), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) good title to (in the case of all other personal Property),

all of their respective Properties reflected in their financial statements and other information referred to in <u>Section</u> <u>6.7</u> and in the most recent financial statements delivered pursuant to <u>Section</u> <u>7.1</u>, in each case, except for assets disposed of since the date of such financial statements as permitted under <u>Section</u> <u>8.10</u>. All such Properties are free and clear of Liens other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Real Estate</u>. As of the Closing Date, <u>Schedule 6.10(b</u>) contains a true, accurate and complete list of all Real Estate Assets of the Credit Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Intellectual Property</u>. Each Credit Party, each Subsidiary and each other Regulated Entity owns, or is validly licensed to use, all Intellectual Property that is necessary for the present conduct of its business, free and clear of Liens (other than Permitted Liens), without conflict with the rights of any other Person, unless the failure to own or benefit from such valid license could *not*, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. To the knowledge of any Authorized Officer of any Credit Party, no Credit Party, Subsidiary or other Regulated Entity is infringing, misappropriating, diluting, or otherwise violating the Intellectual Property rights of any other Person unless such infringement, misappropriation, dilution or violation could *not*, individually or in the aggregate when taken together, reasonably be expected to have a Material Adverse Effect.

Section 6.11 <u>Environmental Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Credit Party, nor any of its Subsidiaries, any other Regulated Entity nor any of their respective current Facilities (*solely* during, and with respect to, such Person's ownership thereof) or operations, and to their knowledge, no former Facilities (*solely* during, and with respect to, any Credit Party's, its Subsidiary's or any other Regulated Entity's ownership thereof), are subject to any outstanding order, consent decree or settlement agreement with any Person relating to any Environmental Law, any Environmental Claim, or any Hazardous Materials Activity that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Credit Party, nor any of its Subsidiaries nor any other Regulated Entity, has received any letter or request for information under Section 104 of the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9604) or any comparable state law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there are and, to the knowledge of any Authorized Officer of any Credit Party, have been, no Hazardous Materials Activities that could reasonably be expected to form the basis of an Environmental Claim against any Credit Party, any Subsidiary or any other Regulated Entity that, individually or in the aggregate when taken together, could reasonably be expected to have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) no Credit Party, Subsidiary or other Regulated Entity has filed any notice under any Environmental Law indicating past or present treatment of Hazardous Materials at any Facility (*solely* during, and with respect to, such Credit Party's, Subsidiary's or other Regulated Entity's ownership thereof), and no Credit Party's, Subsidiary's or other Regulated Entity's respective operations involve the generation, transportation, treatment, storage or disposal of hazardous waste, as defined under 40 C.F.R. Parts 260–270 or any equivalent state rule defining hazardous waste, except in compliance with all applicable Environmental Laws.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Compliance with all current requirements pursuant to or under Environmental Laws could *not* be reasonably expected to have, individually or in the aggregate when taken together, a Material Adverse Effect.

Section 6.12 <u>No Defaults</u>. No Credit Party, Subsidiary or other Regulated Entity is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any of its Contractual Obligations, except, in each case, where the consequences, direct or indirect, of such default or defaults, if any, could *not* reasonably be expected to have a Material Adverse Effect.

Section 6.13 <u>No Litigation or other Adverse Proceedings</u>. There are no Adverse Proceedings that: (a) purport to affect or pertain to this Agreement or any other Credit Document, or any of the transactions contemplated hereby; or (b) could reasonably be expected to have a Material Adverse Effect. No Credit Party, Subsidiary or other Regulated Entity is subject to, or is in default with respect to, any final judgments, writs, injunctions, decrees, rules or regulations of any Governmental Authority that, individually or in the aggregate when taken together, could reasonably be expected to have a Material Adverse Effect.

Section 6.14 <u>Information Regarding Credit Parties, Subsidiaries and Other Regulated Entities</u>. Set forth on <u>Schedule 6.14</u> is the jurisdiction of incorporation or formation (as the case may be), the exact legal name (and for the prior five (5) years or since the date of its incorporation or formation (as the case may be) has been) and the true and correct U.S. taxpayer identification number (or foreign equivalent, if any) of each Credit Party, each Subsidiary and each other Regulated Entity as of the Closing Date, together with an indication of whether such Person is a Credit Party, a Qualifying Reciprocal Entity, a Regulated Subsidiary, or a Subsidiary (other than a Regulated Subsidiary or a Credit Party).

Section 6.15 <u>Governmental Regulation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Credit Party, Subsidiary or other Regulated Entity is subject to regulation under the Investment Company Act of 1940. No Credit Party, Subsidiary or other Regulated Entity is an "investment company" or a company "controlled" by a "registered investment company" or a "principal underwriter" of a "registered investment company" as such terms are defined in the Investment Company Act of 1940.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Credit Party, Subsidiary or other Regulated Entity is an "enemy" or an "ally of the enemy" within the meaning of Section 2 of the Trading with the Enemy Act of the United States of America (50 U.S.C. App. §§ 1 *et seq*.), as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the knowledge of any Authorized Officer of any Credit Party, no Credit Party, Subsidiary or other Regulated Entity is in violation of: (A) the Trading with the Enemy Act, as amended; (B) any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto; or (C) the Patriot Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No Credit Party, Subsidiary or other Regulated Entity: (A) is a blocked person described in Section 1 of the Anti-Terrorism Order; or (B) to the knowledge of any Authorized Officer of any Credit Party, engages in any dealings or transactions, or is otherwise associated, with any such blocked person.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Credit Party, each Subsidiary and each other Regulated Entity, and each of their respective directors and officers and, to the knowledge of any Authorized Officer of any Credit Party, each of their respective employees and agents, are in compliance with applicable Sanctions and are *not* engaged in any activity that would reasonably be expected to result in any Credit Party, any Subsidiary or any other Regulated Entity being designated as a Sanctioned Person. No Credit Party, Subsidiary or other Regulated Entity nor, to the knowledge of any Authorized Officer of any Credit Party, any of their respective Affiliates are in violation of any of the country or list based economic and trade sanctions administered and enforced by OFAC that are described or referenced at http://www.ustreas.gov/offices/enforcement/ofac/ or as otherwise published from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Credit Party, Subsidiary or other Regulated Entity, nor, to the knowledge of any Authorized Officer of any Credit Party, any of their respective directors, officers, employees or Affiliates: (A) is a Sanctioned Person; (B) has any of its Property located in a Sanctioned Country (unless approved by the Lenders); or (C) derives any of its operating income from investments in, or transactions with Sanctioned Persons (unless approved by the Lenders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The proceeds of any Credit Extension or other transaction contemplated by this Agreement or any other Credit Document have *not* been used: (A) in violation of any Sanctions; (B) to fund any operations in, finance any investments or activities in or make any payments to, a Sanctioned Person or a Sanctioned Country; or (C) in any other manner that would result in a violation of Sanctions by any Person (including the Administrative Agent, the Collateral Agent, the Lenders or any other Person participating in the Credit Extensions, whether as an underwriter, advisor, investor or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Credit Party, each Subsidiary and each other Regulated Entity, and, to the knowledge of any Authorized Officer of any Credit Party, each of their respective directors, officers, employees and Affiliates, is in material compliance with Anti-Corruption Laws. No Credit Party, Subsidiary or other Regulated Entity has made a payment, offering, or promise to pay, or authorized the payment of, money or anything of value: (i) in order to assist in obtaining or retaining business for or with, or directing business to, any foreign official, foreign political party, party official or candidate for foreign political office; (ii) to a foreign official, foreign political party or party official or any candidate for foreign political office; and (iii) with the intent to induce the recipient to misuse his or her official position to direct business wrongfully to any such member or to any other Person, in violation of any Anti-Corruption Law*.* No part of the proceeds of any Credit Extension or other transaction contemplated by this Agreement or any other Credit Document will violate Anti-Corruption Laws*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent applicable, each Credit Party, each Subsidiary and each other Regulated Entity is in compliance with Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001) (as amended from time to time, the "*<u>Patriot Act</u>*").

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No Credit Party, Subsidiary or other Regulated Entity is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any Margin Stock. No part of the proceeds of any Credit Extension made to any Credit Party will be used:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to purchase or carry any such Margin Stock, or to extend credit to others for the purpose of purchasing or carrying any such Margin Stock or for any purpose that violates, or is inconsistent with, the provisions of Regulation T, Regulation U or Regulation X of the Federal Reserve Board, as in effect from time to time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to finance or refinance any: (A) commercial paper issued by any Credit Party, Subsidiary or other Regulated Entity; or (B) any other Indebtedness, except for Indebtedness that a Credit Party incurred for general corporate or working capital purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No Credit Party, Subsidiary or other Regulated Entity is an Affected Financial Institution.

Section 6.16 <u>Employee Matters</u>. No Credit Party, Subsidiary or other Regulated Entity is engaged in any unfair labor practice that could reasonably be expected to have a Material Adverse Effect. There is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no unfair labor practice complaint pending against any Credit Party, any Subsidiary or any other Regulated Entity, or to the knowledge of any Authorized Officer of any Credit Party, threatened in writing against any of them before the National Labor Relations Board, and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement that is so pending against any Credit Party, any Subsidiary or any other Regulated Entity or, to the knowledge of any Authorized Officer of any Credit Party, threatened in writing against any of them,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no strike or work stoppage in existence or, to the knowledge of any Authorized Officer of any Credit Party, threatened in writing that involves any Credit Party, any Subsidiary or any other Regulated Entity, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to the knowledge of any Authorized Officer of any Credit Party, no union representation question existing with respect to the employees of any Credit Party, any Subsidiary or any other Regulated Entity and, to the knowledge of any Authorized Officer of any Credit Party, no union organization activity that is taking place,

except (with respect to any matter specified in <u>clause (a</u>) through (<u>c</u>) above, either individually or in the aggregate when taken together) such as could *not* reasonably be expected to have a Material Adverse Effect.

Section 6.17 <u>Pension Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as could *not* reasonably be expected to have a Material Adverse Effect, each Credit Party, each Subsidiary and each other Regulated Entity is in compliance with all applicable provisions and requirements of ERISA and the Internal Revenue Code and the regulations and published interpretations thereunder with respect to its Pension Plan, and have performed all their obligations under each Pension Plan in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Pension Plan that is intended to qualify under Section 401(a) of the Internal Revenue Code has received a favorable determination letter or is the subject of a favorable opinion letter from the Internal Revenue Service indicating that such Pension Plan is so qualified and, to the knowledge of any Authorized Officer of any Credit Party, nothing has occurred subsequent to the issuance of such determination letter that would cause such Pension Plan to lose its qualified status, except where such event could *not* reasonably be expected to result in a Material Adverse Effect.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as could *not* reasonably be expected to have a Material Adverse Effect, no liability to the PBGC (other than required premium payments), the Internal Revenue Service, any Pension Plan (other than for routine claims and required funding obligations in the ordinary course) or any trust established under Title IV of ERISA has been incurred by any Credit Party, any Subsidiary, any other Regulated Entity, or any of the ERISA Affiliates of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as would *not* reasonably be expected to result in liability to the Credit Parties, Subsidiaries and other Regulated Entities in *excess* of the Threshold Amount, no ERISA Event has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except to the extent required under Section 4980B of the Internal Revenue Code and Section 601 *et seq*. of ERISA or similar state laws, and except as could *not* reasonably be expected to have a Material Adverse Effect, no Pension Plan provides health or welfare benefits (through the purchase of insurance or otherwise) for any retired or former employee of any Credit Party, any Subsidiary or any other Regulated Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) As of the Closing Date, no Credit Party, or any Subsidiary or any other Regulated Entity, is a Benefit Plan.

Section 6.18 <u>Solvency</u>. The Borrower individually is, and the Credit Parties, Subsidiaries and other Regulated Entities taken as a whole are, and, upon the incurrence of any Credit Extension on any date on which this representation and warranty is made (including, without limitation, the Closing Date), each will be, Solvent.

Section 6.19 <u>Compliance with Laws</u>. Each Credit Party, each Subsidiary and each other Regulated Entity is in compliance with: (a) the Patriot Act and OFAC rules and regulations, as provided in <u>Section</u> <u>6.15</u>; and (b) except such non-compliance with such other Applicable Laws that, individually or in the aggregate when taken together, could *not* reasonably be expected to result in a Material Adverse Effect, all other Applicable Laws. Each Credit Party, each Subsidiary and each other Regulated Entity possesses all certificates, authorities or permits issued by appropriate Governmental Authorities necessary to conduct the business now operated by them and the failure of which to have could reasonably be expected to have a Material Adverse Effect, and have *not* received any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit the failure of which to have or retain could reasonably be expected to have a Material Adverse Effect.

Section 6.20 <u>Disclosure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No representation or warranty of any Credit Party or any Subsidiary contained in any Credit Document to which it is a party, or in any other documents, certificates or written statements furnished to the Lenders by, or on behalf of, any Credit Party or any Subsidiary for use in connection with the transactions contemplated hereby (other than projections and pro forma financial information contained in such materials), contains any untrue statement of a material fact or omits to state a material fact (known to any Authorized Officer of a Credit Party or Subsidiary, in the case of any document *not* furnished by any of them) necessary in order to make the statements contained herein or therein *not* misleading in any material manner in light of the circumstances in which the same were made. Any projections and pro forma financial information contained in such materials are based upon good faith estimates and assumptions believed by the Credit Parties to be reasonable at the time made, it being recognized by the Administrative Agent and the Lenders that such projections as to future events are *not* to be viewed as facts and that actual results during the period or periods covered by any such projections may differ from the projected results and that such differences may be material. There are no facts known to any Credit Party (other than matters of a general economic nature) that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect and that have *not* been disclosed herein or in such other documents, certificates and statements furnished to the Lenders.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the Closing Date or as of such later date on which any Beneficial Ownership Certification was delivered to the Administrative Agent or a Lender, the information included in each Beneficial Ownership Certification is true and correct in all respects.

Section 6.21 <u>Insurance</u>. The properties of the Credit Parties and Subsidiaries are insured with financially sound and licensed insurance companies, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the applicable Credit Party or Subsidiary operates. The insurance coverage of the Credit Parties and Subsidiaries as in effect on the Closing Date is outlined as to carrier, policy number, expiration date, type, amount and deductibles on <u>Schedule 6.21</u>.

Section 6.22 <u>Security Agreement</u>. The Security Agreement is effective to create in favor of the Collateral Agent, for the ratable benefit of the holders of the Obligations, a legal, valid and enforceable security interest in the Collateral identified therein, except to the extent the enforceability thereof may be limited by applicable Debtor Relief Laws affecting creditors' rights generally and by equitable principles of law (regardless of whether enforcement is sought in equity or at law), and the Security Agreement shall create a fully perfected Lien on, and security interest in, all right, title and interest of the obligors thereunder in such Collateral, in each case prior and superior in right to any other Lien (other than Permitted Liens):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to any such Collateral that is a "security" (as such term is defined in the UCC) and is evidenced by a certificate, when such Collateral is delivered to the Collateral Agent with duly executed stock powers with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any such Collateral that is a "security" (as such term is defined in the UCC) but is *not* evidenced by a certificate, when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the pledgor or when "control" (as such term is defined in the UCC) is established by the Collateral Agent over such interests in accordance with the provision of Section 8–106 of the UCC, or any successor provision; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to any such Collateral that is *not* a "security" (as such term is defined in the UCC), when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the pledgor (to the extent such security interest can be perfected by filing under the UCC).

Section 6.23 <u>Mortgages</u>. Each of the Mortgages is effective to create in favor of the Collateral Agent, for the ratable benefit of the holders of the Obligations, a legal, valid and enforceable security interest in the Real Estate Assets identified therein in conformity with Applicable Laws, except to the extent the enforceability thereof may be limited by applicable Debtor Relief Laws affecting creditors' rights generally and by equitable principles of law (regardless of whether enforcement is sought in equity or at law), and, when the Mortgages and UCC financing statements in appropriate form are duly recorded at the locations identified in the Mortgages, and recording or similar taxes, if any, are paid, the Mortgages shall constitute a legal, valid and enforceable Lien on, and security interest in, all right, title and interest of the grantors thereunder in such Real Estate Assets, in each case prior and superior in right to any other Lien (other than Permitted Liens).

------

Section 6.24 <u>No Casualty</u>. Neither the businesses nor the Properties of any Credit Party, any Subsidiary, or any other Regulated Entity are affected by any fire, explosion, accident, drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty (whether or not covered by insurance) that, either individually or in the aggregate when taken together, could reasonably be expected to have a Material Adverse Effect.

**Article 7** 

**<u>AFFIRMATIVE COVENANTS</u>**

Each Credit Party covenants and agrees that, until the Obligations shall have been Paid in Full, such Credit Party shall perform, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to perform, all of the covenants set forth in this <u>Article 7</u>.

Section 7.1 <u>Financial Statements and Other Reports</u>. The Borrower will deliver, or will cause to be delivered, to the Administrative Agent (for prompt further distribution by the Administrative Agent to each Lender):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Quarterly Financial Statements</u>. By *no later than* the date that is forty-five (45) consecutive calendar days after the end of each Fiscal Quarter (including, for purposes of clarity, the last Fiscal Quarter of each Fiscal Year), (i) the unaudited consolidated and consolidating balance sheet of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) as of the end of such Fiscal Quarter together with the related consolidated and consolidating statements of income or operations and cash flows of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) for such Fiscal Quarter, and for the period from the beginning of the then current Fiscal Year through the end of such Fiscal Quarter, and (ii) *solely* to the extent that the financial results and operations of any Qualifying Reciprocal Entities are *not* included or otherwise accounted for on a non-controlling interest basis in any such consolidated and/or consolidating financial statements, the unaudited combined and combining balance sheet of such Qualifying Reciprocal Entities as of the end of such Fiscal Quarter together with the related combined and combining statements of income or operations and cash flows of such Qualifying Reciprocal Entities for such Fiscal Quarter, and for the period from the beginning of the then current Fiscal Year through the end of such Fiscal Quarter, in each case of the foregoing <u>clauses (a)(i</u>) and (<u>a)(ii</u>), setting forth, in each case in comparative form, the corresponding figures for the corresponding periods of the previous Fiscal Year, all in reasonable detail and consistent, in all material respects, with the manner of presentation as of the Closing Date, together with a Financial Officer Certification with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Financial Statements</u>. By *no later than* the date that is one hundred twenty (120) consecutive calendar days after the end of each Fiscal Year:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) the audited consolidated and consolidating balance sheet of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) as of the end of such Fiscal Year together with the related audited consolidated and consolidating statements of income or operations and cash flows of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) for such Fiscal Year, and (B) *solely* to the extent that the financial results and operations of any Qualifying Reciprocal Entities are *not* included or otherwise accounted for on a non-controlling interest basis in any such consolidated and/or consolidating financial statements, the unaudited combined and combining balance sheet of such Qualifying Reciprocal Entities as of the end of such Fiscal Year together with the related unaudited combined and combining statements of income or operations and cash flows of such Qualifying Reciprocal Entities for such Fiscal Year, in each case of the foregoing <u>clauses (b)(i)(A</u>) and (<u>b)(i)(B</u>), setting forth, in each case in comparative form, the corresponding figures for the previous Fiscal Year, all in reasonable detail and consistent, in all material respects, with the manner of presentation as of the Closing Date, together with a Financial Officer Certification with respect thereto; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to such audited consolidated financial statements of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), a report thereon of PricewaterhouseCoopers LLP or other independent certified public accountants selected by the Borrower and reasonably acceptable to the Administrative Agent (it being understood and agreed that any of the other "Big Four" accounting firms, Grant Thornton, Alvarez & Marsal, RSM US LLP and BDO USA LLP are each acceptable to the Administrative Agent), which report shall be unqualified as to going concern and scope of audit (except to the extent any qualification results *solely* from a current maturity of any Indebtedness under this Agreement) and shall state that such consolidated financial statements fairly present, in all material respects, the consolidated financial position of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) as of the dates indicated, and the results of their operations and cash flows for the periods indicated, all in conformity with GAAP applied on a basis consistent with prior years (except as otherwise disclosed in such financial statements), and <u>further</u>, that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Compliance Certificate; Summaries / Schedules</u>. Together with each delivery of the financial statements pursuant to <u>clauses (a</u>) or (<u>b</u>) above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a duly completed Compliance Certificate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) summaries/schedules prepared by management of the Borrower, accompanied by a Financial Officer Certification with respect thereto, setting forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) consolidating and (if applicable) combining detail in respect of such financial statements in form and scope acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) principal and interest payments made by the Credit Parties and Subsidiaries (other than any Regulated Entities) with respect to intercompany Indebtedness owing by any Credit Party or Subsidiary (other than any Regulated Entity) to any Regulated Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) intercompany Indebtedness owing by any Credit Party or Subsidiary (other than any Regulated Entity) to any Regulated Entity that is eliminated upon consolidation in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Annual Budget</u>. Within sixty (60) consecutive calendar days following the end of each Fiscal Year, forecasts prepared by management of the Borrower, in form reasonably satisfactory to the Administrative Agent and the Required Lenders, of (i) the consolidated and consolidating balance sheet of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) together with the related consolidated and consolidating statements of income or operations and cash flows of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (ii) *solely* to the extent that the forecasted financial results and operations of any Qualifying Reciprocal Entities are *not* included or otherwise accounted for on a non-controlling interest basis in any such forecasted consolidated and/or consolidating financial statements, the combined and combining balance sheet of such Qualifying Reciprocal Entities together with the related combined and combining statements of income or operations and cash flows for such Qualifying Reciprocal Entities, in each case of the foregoing <u>clauses (d)(i</u>) and (<u>d)(ii</u>), prepared on a quarterly basis for the immediately following Fiscal Year (including, for purposes of clarity, any such Fiscal Year during which any of the Revolving Commitment Termination Date, the DDTL Commitment Termination Date or any applicable Maturity Date occurs);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Statutory Accounting Principles Statement</u>. Within forty-five (45) consecutive calendar days following the end of each of the first (1<sup>st</sup>) three (3) Fiscal Quarters of each Fiscal Year, and within ninety (90) consecutive calendar days following the end of each Fiscal Year, SAP statements for each Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Information Regarding Credit Parties</u>. Each Credit Party will furnish to the Collateral Agent prior written notice of any change in such Credit Party's: (i) legal name; (ii) corporate structure; (iii) Federal Taxpayer Identification Number; or (iv) jurisdiction of incorporation, formation or organization, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Securities and Exchange Commission Filings</u>. Promptly after the same are filed, copies of all annual, regular, periodic and special reports and registration statements that the Borrower may file, or be required to file, with the SEC under Section 13 or 15(d) of the Exchange Act, <u>provided</u>, <u>that</u>, any documents required to be delivered pursuant to this <u>clause (g</u>) shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower's website, or (ii) on which such documents are posted on the Borrower's behalf on SyndTrak or other relevant website, if any to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent). Notwithstanding anything to the contrary, as to any information contained in materials furnished pursuant to this <u>clause (g</u>), the Borrower shall not be separately required to furnish such information under <u>clauses (a</u>) or (<u>b</u>) above, or pursuant to any other requirement of this Agreement or any other Credit Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Notice of Default and Material Adverse Effect</u>. Promptly (and, in any event, within two (2) Business Days) upon any Authorized Officer of any Credit Party obtaining knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) of any condition or event that constitutes a Default or an Event of Default, or that notice has been given to any Credit Party, any Subsidiary, or any other Regulated Entity with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that any Person has given any notice to any Credit Party, any Subsidiary or any other Regulated Entity, or taken any other action with respect to any event or condition set forth in <u>Section</u> <u>9.1(b</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) of the occurrence of any Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) of the institution, or any Credit Party's, any Subsidiary's or any other Regulated Entity's receipt of any threat in writing of the institution, of any action, suit, investigation or proceeding against or affecting any Credit Party, any Subsidiary or any other Regulated Entity, including any such investigation or proceeding by any Insurance Regulatory Authority or other Governmental Authority (other than routine periodic inquiries, investigations or reviews), that could reasonably be expected, individually or in the aggregate when taken together, to have a Material Adverse Effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) of the receipt by any Credit Party, any Subsidiary, or any other Regulated Entity from any Insurance Regulatory Authority or other Governmental Authority of any notice of any actual or threatened suspension, limitation or revocation of, failure to renew, imposition of any restraining order, escrow or impoundment of funds in connection with, or the taking of any other materially adverse action in respect of, any license, permit, accreditation or authorization of any Credit Party, any Subsidiary or any other Regulated Entity, where such action could reasonably be expected to have a Materially Adverse Effect;

------

deliver to the Administrative Agent a certificate of its Authorized Officers specifying the nature and period of existence of such condition, event or change, or specifying the notice given and action taken by any such Person and the nature of such claimed Event of Default, Default, event or condition or change, and what action the Credit Parties, Subsidiaries and other Regulated Entities have taken, are and/or and propose to take with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>ERISA</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Promptly upon becoming aware of the occurrence of, or forthcoming occurrence of, any ERISA Event, a written notice specifying the nature thereof, what action(s) any Credit Party, any Subsidiary, any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, has taken, is taking and/or proposes to take with respect thereto and, when known, any action taken or threatened by the Internal Revenue Service, the Department of Labor or the PBGC with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) promptly upon reasonable request of the Administrative Agent, copies of each Schedule B (*Actuarial Information*) to the annual report (Form 5500 Series) filed by any Credit Party, any Subsidiary or any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, with respect to each Pension Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) promptly after their receipt, copies of all notices received by any Credit Party, any Subsidiary or any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, from a Multiemployer Plan sponsor concerning an ERISA Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Securities and Exchange Commission Investigations</u>. Promptly and, in any event, within five (5) Business Days after receipt thereof by any Credit Party, any Subsidiary or any other Regulated Entity thereof, copies of each notice or other correspondence received from the Securities and Exchange Commission (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or other inquiry by such agency regarding financial or other operational results of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Asset Sales, Involuntary Dispositions and Debt Transactions</u>. Concurrently with delivery of each Compliance Certificate, notice of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the occurrence and amount of Net Cash Proceeds of any Asset Sale or Involuntary Disposition (in each case, regardless of whether the Net Cash Proceeds therefrom fall below the threshold amounts set forth in <u>Section</u> <u>2.11(c)(ii</u>) and/or have already been, or are anticipated to be, re-invested pursuant to the reinvestment provisions thereof) in *excess* of the *product of* (A) fifty percent (50.0%), *multiplied by* (B) the Threshold Amount; and 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the occurrence of any Debt Transactions and the amount of Net Cash Proceeds therefrom;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Changes in Accounting or Financial Reporting Practices</u>. Promptly and, in any event, within ten (10) Business Days after implementation thereof, notice of any material change in accounting policies or financial reporting practices of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Insurance Filings</u>. Within fifteen (15) Business Days after the required filing date, copies of any annual statement or quarterly statement required to be filed with any Insurance Regulatory Authority by any Credit Party, any Subsidiary or any other Regulated Entity, in each case, in the form filed with such Insurance Regulatory Authority in conformity with the requirements thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Other Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Promptly upon their becoming available, copies of all financial statements, reports, notices and proxy statements (other than minutes of the board of directors or managers (or equivalent governing body) thereof) sent or made available generally by the Borrower to its respective security holders acting in such capacity, or by any Subsidiary or any other Regulated Entity to its respective security holders, if any, other than the Borrower, another Credit Party, another Subsidiary or another Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such other information and data with respect to the Credit Parties, Subsidiaries and other Regulated Entities as from time to time may be reasonably requested by the Administrative Agent (or by any Lender through the Administrative Agent); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) prompt written notice of any change to the information set forth in any Beneficial Ownership Certification that would result in a change to the list of beneficial owners set forth therein.

Each notice pursuant to <u>clauses (i</u>) and (<u>j</u>) above shall be accompanied by a statement of an Authorized Officer of the Borrower: (x) setting forth details of the occurrence referred to therein; and (y) stating what action(s) the Credit Parties, Subsidiaries and other Regulated Entities have taken and/or propose to take with respect thereto. Each notice pursuant to <u>clause (h</u>) above shall describe with particularity any and all provisions of this Agreement and any other Credit Document that have been breached.

Section 7.2 <u>Existence</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, at all times preserve and keep in full force and effect (a) its existence, and (b) except to the extent that failure to do so would *not* reasonably be expected to result in a Material Adverse Effect, all rights and franchises, licenses and permits material to its business, except to the extent permitted by <u>Section</u> <u>8.10</u> or not constituting an Asset Sale hereunder.

Section 7.3 <u>Payment of Taxes and Claims</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, pay (a) all federal, state and other material taxes imposed upon it or any of its respective Properties or in respect of any of its income, businesses or franchises, before any penalty or fine accrues thereon, and (b) all claims (including claims for labor, services, materials and supplies) for sums that have become due and payable and that by law have or may become a Lien upon any of its Properties, prior to the time when any penalty or fine shall be incurred with respect thereto; <u>provided</u>, <u>that</u>, no such tax or claim need be paid if it is being contested in good faith by appropriate proceedings promptly instituted and diligently conducted, so long as (i) adequate reserve or other appropriate provision, as shall be required in conformity with GAAP shall have been made therefor, (ii) in the case of a tax or claim which has or may become a Lien against any of the Collateral, such

------

contest proceedings conclusively operate to stay the sale of any portion of the Collateral to satisfy such tax or claim, and (iii) the failure to make payment pending such contest could *not* reasonably be expected to result in a Material Adverse Effect. No Credit Party will, nor will it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, file, or consent to the filing of, any consolidated or combined income tax return with any Person other than the Credit Parties, Subsidiaries and other Regulated Entities.

Section 7.4 <u>Maintenance of Properties</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, maintain, or cause to be maintained, in good repair, working order and condition, ordinary wear and tear excepted, all material properties used or useful in the businesses of the Credit Parties, Subsidiaries and other Regulated Entities, and from time to time will make, or cause to be made, all appropriate repairs, renewals and replacements thereof, except where failure to do so would *not* materially adversely affect the operations of the businesses of the Credit Parties, Subsidiaries and other Regulated Entities, taken as a whole.

Section 7.5 <u>Insurance</u>. The Credit Parties will maintain, or cause to be maintained, with financially sound and licensed insurers, property insurance, such public liability insurance, third party property damage insurance with respect to liabilities, losses or damage in respect of the Properties and businesses of the Credit Parties as may customarily be carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses, in each case in such amounts, with such deductibles, covering such risks and otherwise on such terms and conditions as shall be customary for such Persons. Without limiting the generality of the foregoing, each Credit Party will maintain, or cause to be maintained: (a) flood insurance with respect to each Flood Hazard Property, if any, that is located in a community that participates in the National Flood Insurance Program, in each case, in compliance with any applicable regulations of the Federal Reserve Board; and (b) replacement value casualty insurance on the Collateral under such policies of insurance, with such insurance companies, in such amounts, with such deductibles, and covering such risks as are at all times carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses. Each such policy of insurance shall: (i) name the Collateral Agent, on behalf of the holders of the Obligations, as an additional insured thereunder as its interests may appear; and (ii) in the case of each property insurance policy, contain a loss payable clause or endorsement, reasonably satisfactory in form and substance to the Collateral Agent, that names the Collateral Agent, on behalf of the holders of the Obligations, as the loss payee thereunder and provides for *at least* thirty (30) days' prior written notice (or such shorter prior written notice as may be agreed by the Collateral Agent in its reasonable discretion) to the Collateral Agent of any modification or cancellation of such policy.

Section 7.6 <u>Inspections</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, permit representatives and independent contractors of the Administrative Agent (which may include representatives of Lenders) to visit and inspect any of its properties, to conduct field audits, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; <u>provided</u>, <u>that</u>, (i) when an Event of Default exists the Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and without advance notice, and (ii) unless an Event of Default has occurred and is continuing, the Borrower shall *not* be responsible for the expense of any such inspections other than one (1) inspection per Fiscal Year by the Administrative Agent. Notwithstanding anything to the contrary in this <u>Section</u> <u>7.6</u>, neither any Credit Party nor any

------

Subsidiary (including any Regulated Subsidiary) or any other Regulated Entity will be required to disclose, or to permit the inspection or discussion of, any document, information or other matter (x) in respect of which disclosure to the Administrative Agent or any Lender (or their representatives) is prohibited by Applicable Law, fiduciary duty or any binding agreement, or (y) that is subject to attorney client or similar privilege or constitutes attorney work product.

Section 7.7 <u>Lenders Meetings</u>. The Borrower will, upon the request of the Administrative Agent or the Required Lenders, participate in a meeting of the Administrative Agent and the Lenders once during each Fiscal Year to be held at the Borrower's corporate offices (or at such other physical location, or in lieu thereof being held "virtually" by telephone or video conference, in each case, as may be agreed to by the Borrower and the Administrative Agent) at such time as may be agreed to by the Borrower and the Administrative Agent.

Section 7.8 <u>Compliance with Laws and Material Contracts</u>. Each Credit Party will comply, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and all other Persons (including any other Regulated Entities), if any, on or occupying any Facilities to comply, with (a) the Patriot Act and OFAC rules and regulations, and, (b) except where the failure to do so would *not* reasonably be expected to have a Material Adverse Effect, (i) all other Applicable Laws, and (ii) all Material Contracts entered into by any Credit Party, any Subsidiary (including any Regulated Subsidiary) or any other Regulated Entity.

Section 7.9 <u>Use of Proceeds</u>. The Credit Parties shall use the proceeds of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans; Delayed Draw Term Loan</u>. All Revolving Loans and the Delayed Draw Term Loan *solely* (i) to finance permitted Investments in Regulated Entities, (ii) to finance Capital Expenditures, and (iii) for working capital and other general corporate purposes (and, in each case of the foregoing, to pay transaction fees, costs and expenses in connection therewith);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term Loan A</u>. The Term Loan A *solely* to (i) finance the payment on the Closing Date of the Closing Date Distribution, (ii) refinance, in full, all existing Indebtedness of the Credit Parties, Subsidiaries and other Regulated Entities that is *not* permitted to remain outstanding after the Closing Date pursuant to this Agreement, and (iii) pay transaction fees, costs and expenses in connection with the closing of this Agreement and the other Credit Documents on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Incremental Term Loans</u>. Each Incremental Term Loan *solely* for the purpose(s) set forth in the applicable Incremental Facility Agreement establishing such Incremental Term Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Letters of Credit</u>. All Letters of Credit *solely* for general corporate purposes;

in each case of the foregoing <u>clauses (a</u>) through (<u>d</u>), to the extent *not* in violation of any Applicable Laws or the terms of the Credit Documents.

Section 7.10 <u>Environmental Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Environmental Disclosure</u>. Each Credit Party will deliver to the Administrative Agent and the Lenders, with reasonable promptness, such documents and/or information as from time to time may be reasonably requested by the Administrative Agent or any Lender.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Hazardous Materials Activities, Etc</u>. Each Credit Party shall promptly take, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to promptly take, any and all actions necessary to (i) cure any violation of applicable Environmental Laws by such Credit Party, Subsidiary or other Regulated Entity that would reasonably be expected to have, individually or in the aggregate when taken together, a Material Adverse Effect, and (ii) respond to any Environmental Claim against any such Credit Party, Subsidiary or other Regulated Entity and discharge any obligations it may have to any Person thereunder where failure to do so would reasonably be expected to result, individually or in the aggregate when taken together, in a Material Adverse Effect.

Section 7.11 <u>Additional Real Estate Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that any Credit Party owns or acquires a Real Estate Asset, then such Credit Party, by *no later than* ninety (90) consecutive calendar days (or by such later date as may be agreed in writing by the Collateral Agent in its sole discretion) after acquiring such Real Estate Asset, shall take all such actions and execute and deliver, or cause to be executed and delivered, all such Mortgages, documents, instruments, agreements, opinions and certificates similar to those described in <u>clause (b</u>) immediately below that the Collateral Agent shall reasonably request to create in favor of the Collateral Agent, for the benefit of the holders of the Obligations, a valid and, subject to any filing and/or recording referred to herein, enforceable Lien on, and security interest in such Real Estate Asset. The Administrative Agent may, in its reasonable judgment, grant extensions of time for compliance or exceptions with respect to the provisions of this <u>Section</u> <u>7.11</u> by any Credit Party. In addition to the foregoing, the applicable Credit Party shall, at the request of the Required Lenders, deliver, from time to time, to the Administrative Agent such appraisals as are required by Applicable Law of Real Estate Assets with respect to which the Collateral Agent has been granted a Lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In order to create in favor of the Collateral Agent, for the benefit of the holders of the Obligations, a valid and, subject to any filing and/or recording referred to herein, enforceable Lien on, and security interest in, any Real Estate Asset that is prior and superior in right to any other Lien (other than Permitted Liens), the Administrative Agent and the Collateral Agent (with copies sufficient for each Lender) shall have received from the applicable Credit Party with respect to such Real Estate Asset:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fully executed and notarized Mortgages, in proper form for recording in all appropriate places in all applicable jurisdictions, encumbering such Real Estate Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an opinion of counsel (which counsel shall be reasonably satisfactory to the Collateral Agent) in each state in which such Real Estate Asset is located with respect to the enforceability of the form(s) of Mortgages to be recorded in such state and such other matters as the Collateral Agent may reasonably request, in each case in form and substance reasonably satisfactory to the Collateral Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) ALTA mortgagee title insurance policies or unconditional commitments therefor issued by one or more title companies reasonably satisfactory to the Collateral Agent (each, a "*<u>Title Policy</u>*") with respect to such Real Estate Asset, in amounts *not less than* the fair market value of such Real Estate Asset, together with a title report issued by a title company with respect thereto and copies of all recorded documents listed as exceptions to title or otherwise referred to therein, each in form and substance reasonably satisfactory to the Collateral Agent; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) evidence reasonably satisfactory to the Collateral Agent that the applicable Credit Party has paid to the title company or to the appropriate Governmental Authorities all expenses and premiums of the title company and all other sums required in connection with the issuance of each Title Policy and all recording and stamp taxes (including mortgage recording and intangible taxes) payable in connection with recording the Mortgage for such Real Estate Asset in the appropriate real estate records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a recently issued flood zone determination certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) evidence of flood insurance with respect to each Flood Hazard Property that is located in a community that participates in the National Flood Insurance Program, in each case in compliance with any applicable regulations of the Federal Reserve Board, in form and substance reasonably satisfactory to the Collateral Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if an exception to the Title Policy with respect to any Real Estate Asset subject to a Mortgage would arise without such ALTA surveys, ALTA surveys of such Real Estate Asset; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) reports and other reasonable information, in form, scope and substance reasonably satisfactory to the Administrative Agent, regarding environmental matters relating to such Real Estate Asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in the foregoing of this <u>Section</u> <u>7.11</u>, no Mortgage shall be granted with respect to any Real Estate Asset until the Administrative Agent shall have received written confirmation from each Lender of the satisfactory completion by such Lender of flood diligence with respect to such Real Estate Asset.

Section 7.12 <u>Pledge of Personal Property Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Equity Interests</u>. The Borrower and each other Credit Party shall cause:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) one hundred percent (100.0%) of the issued and outstanding Equity Interests of each Domestic Subsidiary (including, without limitation, each Domestic Subsidiary resulting from the division or allocation of any limited liability company that is *not* a Regulated Subsidiary); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) sixty-five percent (65.0%) of the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956–2(c)(2)), and one hundred percent (100.0%) of the issued and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956–2(c)(2)), of each Foreign Subsidiary that is directly owned by any Credit Party or any Domestic Subsidiary;

to be subject, at all times, to a first priority lien (subject to any Permitted Lien) in favor of the Collateral Agent, for the benefit of the Lenders, pursuant to the terms and conditions of the Collateral Documents, together with opinions of counsel and any filings and deliveries or other items reasonably requested by the Collateral Agent necessary in connection therewith to perfect the security interests therein, all in form and substance reasonably satisfactory to the Collateral Agent.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Personal Property</u>. The Borrower and each other Credit Party shall (i) cause all of its owned and leased personal property (other than Excluded Property) to be subject, at all times, to first priority (subject to any Permitted Lien), perfected Liens in favor of the Collateral Agent, for the benefit of

the holders of the Obligations, to secure the Obligations pursuant to the terms and conditions of the Collateral Documents or, with respect to any such property acquired subsequent to the Closing Date, such other additional security documents as the Collateral Agent shall reasonably request, subject in any case to Permitted Liens, and (ii) deliver such other documentation as the Collateral Agent may reasonably request in connection with the foregoing, including, without limitation, appropriate UCC–1 financing statements, certified resolutions and other organizational and authorizing documents of such Person, opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to above and the perfection of the Collateral Agent's Liens thereunder) and other items reasonably requested by the Collateral Agent necessary in connection therewith to perfect the security interests therein, all in form, content and scope reasonably satisfactory to the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Landlord Consents</u>. Upon the reasonable request of the Collateral Agent, the Credit Parties shall use commercially reasonable efforts to obtain landlord consents with respect to leased locations where corporate records or material amounts of personal property of any of the Credit Parties are maintained, which landlord consents shall be in form and substance reasonably acceptable to the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Controlled Account Agreements</u>. The Borrower and each other Credit Party shall, unless otherwise consented to by the Collateral Agent in writing, cause (in each case, as promptly as practicable and, in any event, by *no later than* (A) the date that is ninety (90) consecutive calendar days after the Closing Date (or by such later date as the Collateral Agent may agree in its sole discretion), in the case of any such accounts in existence on the Closing Date, and (B) the date that is ninety (90) consecutive calendar days after the date of establishment or acquisition of such account (or by such later date as the Collateral Agent may agree in its sole discretion), in the case of any such account(s) established or acquired after the Closing Date) each deposit, disbursement, lockbox, securities and/or commodities account of any Credit Party (including, without limitation, any such account(s) that are or will be held at Regions Bank), other than any Excluded Accounts, to be subject to a Controlled Account Agreement; <u>provided</u>, <u>that</u>, no Controlled Account Agreement shall be required, in any event, with respect to any such account that has a balance (or which holds Property with a fair market value) of *less than* Fifty Thousand Dollars ($50,000), in any individual instance, or One-Hundred Fifty Thousand Dollars ($150,000), when taken together with the account balances (or aggregate amount of the fair market value of Property) of all other deposit, disbursement, lockbox, securities and/or commodities accounts of any Credit Party (other than any Excluded Accounts) that are *not* subject to a Controlled Account Agreement.

Section 7.13 <u>Books and Records</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, keep proper books of record and account in which full, true and correct, in all material respects, entries shall be made of all dealings and transactions in relation to their respective businesses and activities to the extent necessary to prepare the consolidated financial statements of the Credit Parties and Subsidiaries both *inclusive* and *exclusive* of all Regulated Entities, in each case otherwise in conformity with GAAP.

Section 7.14 <u>Additional Subsidiaries</u>. Within forty-five (45) calendar days after the date of acquisition or formation of any Subsidiary (including, without limitation, upon the inception of any Subsidiary resulting from the division or allocation of a limited liability company or upon the reinstatement or reincorporation of a formerly dissolved Subsidiary) or of re-designation of any Immaterial Subsidiary as a Material Subsidiary in accordance with the definition of "*Immaterial Subsidiary*" in <u>Section</u> <u>1.1</u> (or, in any such case, by such later date as the Administrative Agent may agree in its sole discretion), the Credit Parties shall:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) notify the Administrative Agent thereof in writing, together with the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) jurisdiction of incorporation or formation (as the case may be);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) number of shares of each class of its Equity Interests outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) number and percentage of outstanding shares of each class owned (directly or indirectly) by any Credit Party, any Subsidiary or any other Regulated Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) number and effect, if exercised, of all outstanding options, warrants, rights of conversion or purchase and all other similar rights with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if such Subsidiary is *not* an Excluded Subsidiary, cause such Person to (i) become a Guarantor by executing and delivering to the Administrative Agent a Guarantor Joinder Agreement or such other documents as the Administrative Agent shall deem appropriate for such purpose, and (ii) deliver to the Administrative Agent documents of the types referred to in <u>Section</u> <u>5.1(b</u>) and <u>Section</u> <u>5.1(e</u>) and favorable opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to in the immediately foregoing <u>clause (b)(i</u>)), all in form, content and scope satisfactory to the Administrative Agent.

Section 7.15 <u>Maintenance of Reinsurance</u>. The Credit Parties, Subsidiaries and other Regulated Entities shall maintain a program of reinsurance *at least* equal to that: (a) required by the applicable Insurance Regulatory Authority of the applicable state of domicile for each such Person; and (b) determined by Demotech, Inc. to be necessary for a company to obtain an "A" rating.

**Article 8** 

**<u>NEGATIVE COVENANTS</u>**

Each Credit Party covenants and agrees that, until the Obligations shall have been Paid in Full, such Credit Party shall perform, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to perform, each of the covenants set forth in this <u>Article 8</u>.

Section 8.1 <u>Indebtedness</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries nor any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, create, incur, assume or guaranty, or otherwise become or remain directly or indirectly liable with respect to any Indebtedness, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Unsecured Indebtedness of any Credit Party owing to any other Credit Party; (ii) unsecured Indebtedness of any Subsidiary or other Regulated Entity that (in any such case) is *not* a Credit Party owing to any other Subsidiary or other Regulated Entity that (in any such case) is *not* a Credit Party; and (iii) unsecured Indebtedness of any Credit Party owing to any Subsidiary or other Regulated Entity that (in any such case) is *not* a Credit Party, <u>provided</u>, <u>that</u>, (A) the aggregate outstanding amount of Indebtedness incurred in reliance on this <u>clause (b)(iii</u>) shall *not exceed* Five-Hundred Thousand Dollars ($500,000) at any time, and (B) any such Indebtedness incurred or outstanding in reliance on this <u>clause (b)(iii</u>) shall be subordinated in right of payment (by operation of the terms of an applicable subordination agreement entered into with the Administrative Agent) to the prior Payment in Full of the Obligations on terms reasonably acceptable to the Administrative Agent;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Guarantees with respect to Indebtedness otherwise permitted under this <u>Section</u> <u>8.1</u>; <u>provided</u>, <u>that</u>, any Guarantees granted or in effect in reliance on this <u>clause (c</u>) shall be subordinated to the Obligations if, and to the extent that, the Indebtedness guaranteed thereby is subordinated to the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Indebtedness existing on the Closing Date and described in <u>Schedule 8.1</u>, together with any Permitted Refinancing thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Indebtedness with respect to (i) Capital Leases (<u>provided</u>, <u>that</u>, any such Indebtedness shall be secured only by the asset subject to such Capital Lease), and (ii) purchase money Indebtedness (<u>provided</u>, <u>that</u>, any such Indebtedness shall be secured only by the asset acquired in connection with the incurrence of such Indebtedness); <u>provided</u>, <u>that</u>, the *sum of* the aggregate principal amount of any Indebtedness under this <u>clause (e</u>) at any time outstanding shall *not exceed* Five-Hundred Thousand Dollars ($500,000); 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Indebtedness in respect of any Swap Agreement that is entered into in the ordinary course of business to hedge, limit or mitigate risks to which any Credit Party, any Subsidiary or any other Regulated Entity is exposed in the conduct of its business or the management of its liabilities (it being acknowledged by each Credit Party that a Swap Agreement entered into for speculative purposes, or otherwise of a speculative nature, is *not* a Swap Agreement entered into in the ordinary course of business to hedge, limit or mitigate risks);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to the extent constituting Indebtedness, all obligations in connection with each Permitted Acquisition (including, without limitation, Earn Out Obligations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Indebtedness representing deferred compensation to officers, directors, employees of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Guarantees (i) by any Credit Party of Indebtedness of any Subsidiary (other than any Regulated Subsidiary) that is *not* a Credit Party, and (ii) by any Subsidiary (other than any Regulated Subsidiary) of Indebtedness of any Credit Party or of any other Subsidiary (other than any Regulated Subsidiary) that is *not* a Credit Party; <u>provided</u>, <u>that</u>, (A) Guarantees by any Credit Party of Indebtedness of any Subsidiary (other than any Regulated Subsidiary) that is *not* a Credit Party shall be subject to compliance with <u>Section</u> <u>8.6</u>, and (B) any Guarantees granted or in effect in reliance on this <u>clause (i</u>) shall be subordinated to the Obligations if, and to the extent that, the Indebtedness guaranteed thereby is subordinated to the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Indebtedness owed to any Person (including obligations in respect of letters of credit for the benefit of such Person) providing workers' compensation, health, disability or other employee benefits or property, casualty, liability insurance, self-insurance, pursuant to reimbursement or indemnification obligations to such Person or to finance insurance premiums, in each case incurred in the ordinary course of business and consistent with past practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Indebtedness in respect of or guarantee of performance bonds, bid bonds, appeal bonds, surety bonds, performance and completion guarantees, workers' compensation claims, letters of credit, bank guarantees and banker's acceptances, warehouse receipts or similar instruments and similar obligations (other than in respect of other Indebtedness for borrowed money), in each case provided in the ordinary course of business and consistent with past practice; <u>provided</u>, <u>that</u>, any Indebtedness arising from the provision by any Credit Party of any of the foregoing for the benefit of any Person that is *not* a Credit Party is subject to compliance with <u>Section</u> <u>8.6</u>;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) cash management obligations and other Indebtedness in respect of netting services, overdraft protection and similar arrangements, in each case, in connection with cash management and deposit accounts maintained in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) to the extent constituting Indebtedness, Guarantees in the ordinary course of business of the obligations of suppliers, customers, franchisees and licensees of the Credit Parties and Subsidiaries (other than any Regulated Entities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) performance guarantees primarily guaranteeing performance of contractual obligations to a third party and *not* for the purpose of guaranteeing payment of Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) (i) Indebtedness of a Regulated Entity under "surplus notes" owing to one (1) or more other Credit Parties, Subsidiaries or other Regulated Entities, (ii) Indebtedness of a Qualifying Reciprocal Entity under "surplus notes" owing to one (1) or more Persons other than the Credit Parties, Subsidiaries and other Regulated Entities, and (iii) Indebtedness of a Regulated Subsidiary under "surplus notes" owing to one (1) or more Persons other than the Credit Parties, Subsidiaries and other Regulated Entities, <u>provided</u>, <u>that</u>, the aggregate principal amount of Indebtedness permitted in reliance on this <u>clause (o)(iii</u>) shall *not exceed* Fifty Million Dollars ($50,000,000) at any time outstanding; <u>provided</u>, <u>that</u>, in any such case of the foregoing <u>clauses</u> <u>(o)(i</u>) through (<u>o)(iii</u>), (A) such Indebtedness shall be subordinated to the policyholders of the applicable Regulated Entity, (B) payments of principal of, and interest on, such Indebtedness shall only be made upon the prior written consent of the applicable Governmental Authority, and (C) the principal amount of such Indebtedness shall constitute equity in accordance with SAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Indebtedness of any of the Regulated Entities owing to, and in the form of (or incurred pursuant to) loans, funding agreements, and/or guaranteed investment contracts entered into by such Regulated Entity with, a FHLB in connection with the membership of such Regulated Entity in or with such FHLB in the ordinary course of business; <u>provided</u>, <u>that</u>, any such Indebtedness incurred in reliance on this <u>clause (p</u>) is *not* recourse to any of the Credit Parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) other unsecured Indebtedness of the Credit Parties, Subsidiaries and other Regulated Entities in an aggregate amount *not exceeding* One Million Dollars ($1,000,000) at any time outstanding.

Accrual of interest or dividends, the accretion of accreted value, the accretion or amortization of original issue discount and the payment of interest, premium, fees or expenses, in the form of additional Indebtedness, or preferred stock (in each case, so long as such additional Indebtedness or preferred stock is in the same form and on the same terms as the Indebtedness to which such payment relates) shall *not* be deemed to be an incurrence of Indebtedness for purposes of this <u>Section</u> <u>8.1</u>.

Section 8.2 <u>Liens</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, create, incur, assume, or permit to exist any Lien on, or with respect to, any Properties of any kind (including any document or instrument in respect of goods or accounts receivable) of any Credit Party, any Subsidiary or any other Regulated Entity, whether now owned or hereafter acquired, created or licensed or any income, profits or royalties therefrom, or file, or permit the filing of, or otherwise permit

------

to remain in effect, any financing statement or other similar notice of any Lien with respect to any such Property, income, profits or royalties under the UCC of any State or under any similar recording or notice statute or under any Applicable Laws related to intellectual property, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens in favor of the Collateral Agent, for the benefit of the holders of the Obligations, granted pursuant to any Credit Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liens for Taxes *not* yet due, or for Taxes if obligations with respect to such Taxes are being contested in good faith by appropriate proceedings diligently conducted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) statutory Liens of landlords, banks, carriers, warehousemen, mechanics, repairmen, workmen and materialmen, and other Liens imposed by Applicable Law (other than any such Lien imposed pursuant to Section 430(k) of the Internal Revenue Code or Section 303(k) or 4068 of ERISA that would constitute an Event of Default under <u>Section</u> <u>9.1(j</u>)), in each case, incurred in the ordinary course of business: (i) for amounts *not* yet overdue; or (ii) for amounts that are overdue and that are being contested in good faith by appropriate proceedings, so long as such reserves or other appropriate provisions, if any, as shall be required by GAAP shall have been made for any such contested amounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens incurred in the ordinary course of business in connection with workers' compensation, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, trade contracts, performance and return-of-money bonds and other similar obligations (exclusive of obligations for the payment of borrowed money or other Indebtedness), so long as no foreclosure, sale or similar proceedings have been commenced with respect to any portion of the Collateral on account thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) easements, rights-of-way, restrictions, encroachments, and other minor defects or irregularities in title, in each case, that do *not* and will *not* interfere, in any material respect, with the ordinary conduct of the businesses of any Credit Party, any Subsidiary or any other Regulated Entity, including, without limitation, all encumbrances shown on any policy of title insurance in favor of the Collateral Agent with respect to any Real Estate Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any interest or title of a lessor or sub-lessor under any lease of real estate permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Liens *solely* on any cash earnest money deposits made by any Credit Party or Subsidiary (other than any Regulated Subsidiary) in connection with any letter of intent, or purchase agreement permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) purported Liens evidenced by the filing of precautionary UCC financing statements relating *solely* to operating leases of personal property entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any zoning or similar law or right reserved to, or vested in, any governmental office or agency to control or regulate the use of any real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) licenses of patents, trademarks, and other intellectual property rights granted by any Credit Party or Subsidiary (other than any Regulated Entity) in the ordinary course of business and *not* interfering in any respect with the ordinary conduct of the business of such Credit Party or Subsidiary;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Liens existing as of the Closing Date and described in <u>Schedule 8.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Liens securing purchase money Indebtedness and Capital Leases to the extent permitted pursuant to <u>Section</u> <u>8.1(e</u>); <u>provided</u>, <u>that</u>, any such Lien shall encumber only the asset acquired with the proceeds of such Indebtedness or the assets subject to such Capital Lease, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Liens in favor of the Issuing Bank or the Swingline Lender on cash collateral securing the obligations of a Defaulting Lender to fund risk participations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Liens consisting of judgment or judicial attachment liens relating to judgments which do *not* constitute an Event of Default hereunder; 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) licenses (including licenses of Intellectual Property), sublicenses, leases or subleases granted to third parties in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Liens in favor of collecting banks under Section 4–210 of the UCC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Liens (including the right of set-off) in favor of a bank or other depository institution arising as a matter of law encumbering deposits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Liens on insurance policies and the proceeds thereof granted in the ordinary course of business to secure the financing of insurance premiums with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) Liens of bailees in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) utility and similar deposits in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Liens on Property (other than, in any event, Collateral) of the Regulated Entities securing Indebtedness permitted and incurred in reliance on <u>Section</u> <u>8.1(p</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) other Liens to the extent securing Indebtedness or other monetary obligations in an aggregate amount *not to exceed* Two-Hundred Fifty Thousand Dollars ($250,000) at any time outstanding.

Section 8.3 <u>No Further Negative Pledges</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, enter into any Contractual Obligation (other than this Agreement and the other Credit Documents) that limits the ability of any Credit Party, any Subsidiary or any other Regulated Entity to create, incur, assume or suffer to exist Liens on property of such Person; <u>provided</u>, <u>that</u>, this <u>Section</u> <u>8.3</u> shall *not* prohibit:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any negative pledge incurred or provided in favor of any holder of Indebtedness permitted under <u>Section</u> <u>8.1(e</u>), *solely* to the extent any such negative pledge relates to the Property financed by or subject to Permitted Liens securing such Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Permitted Lien or any document or instrument governing any Permitted Lien; <u>provided</u>, <u>that</u>, any such restriction contained therein relates only to the Property subject to such Permitted Lien;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) customary restrictions and conditions contained in any agreement relating to the disposition of any Property permitted under <u>Section</u> <u>8.10</u> pending the consummation of such disposition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) customary provisions restricting assignments, subletting or other transfers contained in leases, licenses, joint venture agreements and similar agreements entered into in the ordinary course of business.

Section 8.4 <u>Restricted Payments</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Subsidiary of the Borrower may make Restricted Payments to any Person that directly owns Equity Interests in such Subsidiary, ratably according to their respective holdings of the type of Equity Interests in respect of which such Restricted Payment is being made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower may declare and make dividend payments or other distributions payable *solely* in common Equity Interests in the Borrower; 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the making of the Closing Date Distribution in cash on the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) other Restricted Payments paid in cash, so long as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default exists or would result therefrom; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately *after* giving effect to any such Restricted Payment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Consolidated Leverage Ratio, determined on a Pro Forma Basis, is *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the Consolidated Leverage Ratio required for the most recently ended Trailing Period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there remains *at least* Ten Million Dollars ($10,000,000) of Liquidity.

Section 8.5 <u>Burdensome Agreements</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, enter into, or permit to exist, any Contractual Obligation that encumbers or restricts the ability of any such Person to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pay dividends or make any other distributions to any Credit Party on its Equity Interests or with respect to any other interest or participation in, or measured by, its profits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) pay any Indebtedness or other obligation owed to any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) make loans or advances to any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) sell, lease or transfer any of its Property to any Credit Party;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) pledge its Property pursuant to the Credit Documents or any renewals, refinancings, exchanges, refundings or extension thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) act as a Credit Party pursuant to the Credit Documents or any renewals, refinancings, exchanges, refundings or extension thereof;

except (in respect of any of the matters referred to in <u>clauses (i</u>) through (<u>iv</u>) above) for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) this Agreement and the other Credit Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any document or instrument governing Indebtedness incurred pursuant to <u>Section</u> <u>8.1(e</u>); <u>provided</u>, <u>that</u>, any such restriction contained therein relates only to the Property constructed or acquired in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Permitted Lien or any document or instrument governing any Permitted Lien; <u>provided</u>, <u>that</u>, any such restriction contained therein relates only to the Property subject to such Permitted Lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) customary restrictions and conditions contained in any agreement relating to the sale of any Property permitted under <u>Section</u> <u>8.10</u> pending the consummation of such sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any restrictions regarding licensing or sublicensing by the Credit Parties, Subsidiaries and other Regulated Entities of Intellectual Property in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) customary provision in leases and other contracts restricting the assignment thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) restrictions that arise in connection with Indebtedness permitted to be incurred pursuant to <u>Section</u> <u>8.1(j</u>).

Section 8.6 <u>Investments</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, make or own any Investment in any Person, including any joint venture and any Foreign Subsidiary, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investments in cash and Cash Equivalents and deposit accounts or securities accounts in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) equity Investments owned as of the Closing Date in any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) intercompany loans to the extent permitted under <u>Section</u> <u>8.1(b</u>), and guarantees to the extent permitted under <u>Section</u> <u>8.1(c</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Investments existing on the Closing Date and described on <u>Schedule 8.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Investments constituting Swap Agreements permitted by <u>Section</u> <u>8.1(f</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Permitted Acquisitions;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Investments constituting accounts receivable, trade debt and deposits for the purchase of goods, in each case made in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Investments made by Regulated Entities in the ordinary course of business that are consistent with the respective investment policies of each such Regulated Entity in effect on the Closing Date, as such policy may be amended or modified from time to time by board (or equivalent) approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Guarantees by any Credit Party, any Subsidiary or any other Regulated Entity constituting Indebtedness permitted by <u>Section</u> <u>8.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) loans or advances to employees, officers or directors of members of any Credit Party or Subsidiary (other than any Regulated Subsidiary) in the ordinary course of business for travel, relocation and related expenses; <u>provided</u>, <u>that</u>, the aggregate amount of all such loans and advances does *not exceed* Five-Hundred Thousand Dollars ($500,000) in the aggregate at any time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, customers and suppliers, or upon the foreclosure with respect to any secured Investment or other transfer of title with respect to any secured Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Investments resulting from pledges or deposits described in <u>Section</u> <u>8.2(d</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Investments consisting of cash earnest money deposits in connection with a Permitted Acquisition or other Investment permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Investments consisting of endorsements for collection or deposit in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Investments by any Credit Party, any Subsidiary, or any other Regulated Entity in a Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Investments by Subsidiaries (including Regulated Subsidiaries) that are *not* Credit Parties or by Qualifying Reciprocal Entities, on the one hand, in other Subsidiaries (including Regulated Subsidiaries) that are *not* Credit Parties or in other Qualifying Reciprocal Entities, on the other hand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Investments by the Credit Parties in (including, without limitation, in the form of provision of a Letter of Credit for the benefit of) Regulated Entities to the extent required to provide capital support for such Regulated Entities, <u>provided</u>, <u>that</u>, each of the following conditions shall have been satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default exists or would result from such Investment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately *after* giving effect to any such Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis, shall be *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the maximum Consolidated Leverage Ratio then in effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there shall be *at least* Ten Million Dollars ($10,000,000) of Liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Investments made in connection with Indebtedness permitted and incurred in reliance on <u>Section</u> <u>8.1(p</u>) consisting of Equity Interests in an FHLB that are held by a Regulated Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) other Investments in an aggregate amount that does *not exceed* One Million Dollars ($1,000,000) outstanding at any time (measured on a cost basis, to the extent applicable).

Notwithstanding anything to the contrary in the foregoing, in no event shall any Credit Party, any Subsidiary or any other Regulated Entity make any Investment that results in or facilitates in any manner any Restricted Payment *not* otherwise permitted under the terms of <u>Section</u> <u>8.4</u>. For purposes of determining compliance with this <u>Section</u> <u>8.6</u>, any Investment that is written down, written off or forgiven by any Credit Party, any Subsidiary or any other Regulated Entity shall continue to count against any cap set forth in the clause or clauses of this <u>Section</u> <u>8.6</u> pursuant to which such Investment is permitted.

Section 8.7 <u>Use of Proceeds</u>. No Credit Party shall use the proceeds of any Credit Extension of the Loans except pursuant to <u>Section</u> <u>7.9</u>. No Credit Party shall use, and each Credit Party shall ensure that each of its Subsidiaries, each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact, and each of the respective directors, officers, employees and agents of each of the foregoing, shall *not* use, the proceeds of any Credit Extension:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to refinance any commercial paper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in any manner that causes, or might cause, such Credit Extension, or the application of such proceeds, to violate any applicable Sanctions, Regulation T, Regulation U or Regulation X of the Federal Reserve Board, as in effect from time to time or any other regulation thereof, or to violate the Exchange Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country.

Section 8.8 <u>Financial Covenants</u>. The Credit Parties shall *not*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Consolidated Leverage Ratio</u>. Permit the Consolidated Leverage Ratio, as of the end of any Fiscal Quarter commencing with the Fiscal Quarter ending March 31, 2025, to be *greater than* 2.25 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consolidated Fixed Charge Coverage Ratio</u>. Permit the Consolidated Fixed Charge Coverage Ratio, as of the end of any Fiscal Quarter commencing with the Fiscal Quarter ending March 31, 2025, to be *less than* 1.25 to 1.0.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Combined Statutory Surplus</u>. Permit the Combined Statutory Surplus, as of the end of any Fiscal Quarter, to be *less than* the *sum of*: (i) eighty percent (80.0%) of the Combined Statutory Surplus, determined as of the end of the last Fiscal Quarter ending immediately *prior* to the Closing Date; *plus* (ii) eighty percent (80.0%) of the aggregate amount of Investments (including, for purposes of clarity, Investments in the form of "surplus notes") made after the Closing Date by any Credit Party or Subsidiary (other than a Regulated Entity) in any Regulated Entity (other than a Captive Reinsurance Company), including, for purposes of clarity, any such Investments made with the proceeds of Revolving Loans or an advance under the Delayed Draw Term Loan.

Section 8.9 <u>Fundamental Changes; Disposition of Assets; Acquisitions</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, enter into any Acquisition or transaction of merger or consolidation, or liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution), or make any Asset Sale, or acquire by purchase or otherwise (other than purchases or other acquisitions of inventory and materials and the acquisition of equipment and capital expenditures in the ordinary course of business, subject to <u>Section</u> <u>8.9</u>) the business, property or fixed assets of, or Equity Interests or other evidence of beneficial ownership of, any Person or any division or line of business or other business unit of any Person (including, in each case, pursuant to the division or allocation of a limited liability company), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Subsidiary of any Credit Party may be merged with or into the Borrower or any other Subsidiary, or be liquidated, wound up or dissolved, or all, or any part, of its business or Property may be conveyed, sold, leased, transferred or otherwise disposed of, in one (1) transaction or a series of transactions, to the Borrower or any other Subsidiary; <u>provided</u>, <u>that</u>, in the case of such a merger, (i) if the Borrower is party to the merger, the Borrower shall be the continuing or surviving Person, and (ii) if any Guarantor is a party to such merger, then a Guarantor shall be the continuing or surviving Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Investments made in accordance with <u>Section</u> <u>8.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) sales of any Property made by any Regulated Entity in the ordinary course of business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Asset Sales, the proceeds of which, when aggregated with the proceeds of all other Asset Sales consummated within the same Fiscal Year in reliance on this <u>clause (d</u>), do *not exceed* One Million Dollars ($1,000,000); <u>provided</u>, <u>that</u>, (i) the consideration received by any Credit Party, Subsidiary or other Regulated Entity for the Property sold, or otherwise disposed of, pursuant to such Asset Sale shall be in an aggregate amount *at least* equal to the fair market value (as determined in good faith by the board of directors or managers (or similar governing body) of the applicable Credit Party, Subsidiary or other Regulated Entity) of such Property, (ii) *no less than* seventy-five percent (75.0%) of such proceeds shall be paid in cash or Cash Equivalents, and (iii) no Default or Event of Default exists at the time of consummation of such Asset Sale or would result therefrom.

Section 8.10 <u>Disposal of Subsidiary Interests</u>. Except for any sale of all of its interests in the Equity Interests of any of its Subsidiaries in compliance with the provisions of <u>Section</u> <u>8.9</u> and except for Liens securing the Obligations, no Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) directly or indirectly sell, assign, pledge, or otherwise encumber or dispose of any Equity Interests in any of its Subsidiaries, except to qualify directors if required by Applicable Laws; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) permit any of its Subsidiaries directly or indirectly to sell, assign, pledge, or otherwise encumber or dispose of any Equity Interests in any of its Subsidiaries, except to another Credit Party (subject to the restrictions on such disposition otherwise imposed hereunder), or to qualify directors if required by Applicable Laws.

Section 8.11 <u>Sales and Lease-Backs</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, become or remain liable as lessee or as a guarantor or other surety with respect to any lease of any Property (whether real, personal or mixed), whether now owned or hereafter acquired, which the applicable Credit Party, Subsidiary or other Regulated Entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has sold or transferred, or is to sell or to transfer, to any other Person (other than any Credit Party); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) intends to use for substantially the same purpose as any other Property that has been, or is to be, sold or transferred by any Credit Party to any Person (other than any Credit Party) in connection with such lease.

Section 8.12 <u>Transactions with Affiliates and Insiders</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, enter into or permit to exist any transaction (including the purchase, sale, lease or exchange of any Property or the rendering of any service) with any officer, director or Affiliate of any Credit Party, any Subsidiary or any other Regulated Entity on terms that are *less* favorable to such Credit Party, Subsidiary or other Regulated Entity, as the case may be, than those that might be obtained at the time from a Person who is *not* an officer, director or Affiliate of any Credit Party, any Subsidiary or any other Regulated Entity; <u>provided</u>, <u>that</u>, the foregoing restriction shall *not* apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any transaction exclusively between or among Credit Parties, and any transaction exclusively between or among Affiliates of any Credit Party, any Subsidiary or any other Regulated Entity that are *not* Credit Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) compensation (including bonuses and equity or other consideration) and employee benefit arrangements paid to, indemnities provided for the benefit of, and employment and severance arrangements entered into with, and reimbursement of expenses of officers and directors and approved by the Board of Directors of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Restricted Payment to the extent permitted by <u>Section</u> <u>8.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Investment to the extent permitted by <u>Section</u> <u>8.6</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any issuances of securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment agreements, employee stock options and employee stock ownership plans.

------

Section 8.13 <u>Modification or Payment of Certain Funded Debt</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) after the issuance thereof, amend or modify (or permit the termination, amendment or modification of) the terms of any Junior Debt in a manner adverse, in any material respect, to the interests of the Lenders (including specifically shortening any maturity or average life to maturity or requiring any payment sooner than previously scheduled or increasing the interest rate or fees applicable thereto), except to the extent any such amendment or modification constitutes a Permitted Refinancing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) pay, prepay, redeem, purchase, repurchase, defease, retire or extinguish, or otherwise satisfy, or obligate itself or any other Credit Party, Subsidiary or other Regulated Entity to do any of the foregoing, in respect of any Junior Debt other than any Indebtedness in the form of "surplus notes", except for payments of regularly scheduled interest, regularly scheduled amortization (if any) of principal, accrued fees and expenses and customary indemnification obligations, and other required payments at the scheduled maturity thereof, in each case of this <u>clause (b</u>), *solely* to the extent that each of the following conditions are satisfied in respect of such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default then exists or would result from the making of such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) both immediately *before* and immediately *after* giving effect to any such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis, shall be *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the maximum Consolidated Leverage Ratio then in effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there shall be *at least* Ten Million Dollars ($10,000,000) of Liquidity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction is permitted under any and all applicable subordination, standstill and/or similar provisions in any applicable Contractual Obligation of such Credit Party, Subsidiary or other Regulated Entity.

Section 8.14 <u>Conduct of Business</u>. From and after the Closing Date, no Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in -fact to, engage in any business other than the businesses engaged in by such Credit Party, Subsidiary or other Regulated Entity on the Closing Date and businesses that are substantially similar, related or incidental thereto.

Section 8.15 <u>Fiscal Year</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, change its Fiscal Year-end from December 31.

------

Section 8.16 <u>Amendments to Organizational Agreements / Material Agreements</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to: (a) amend, or permit any amendments to, its Organizational Documents, if such amendment could reasonably be expected to be materially adverse to the Lenders, the Administrative Agent or the Collateral Agent; (b) amend or permit any amendments to, or terminate or waive any provision of, any Material Contract (other than any managing general agent, service company or attorney-in-fact agreement), unless such amendment, termination, or waiver would *not* have, and would *not* be expected to have, a Material Adverse Effect; or (c) amend or permit any amendments to, or terminate or waive any provision of, any managing general agent, service company or attorney-in-fact agreement entered into by any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the one hand, and a Regulated Entity, on the other hand, unless such amendment, termination, or waiver would *not* have, and would *not* be expected to have, an adverse effect on the Credit Parties, the Administrative Agent, the Collateral Agent or the Lenders, <u>provided</u>, <u>that</u>, notwithstanding anything to the contrary in the foregoing of this <u>clause (c</u>), so long as any such waiver is permitted as an Investment in accordance with <u>Section</u> <u>8.6</u>, the Credit Parties and Subsidiaries (other than Regulated Subsidiaries) shall be permitted to waive any provision of any managing general agent, service company or attorney -in-fact agreement entered into by any Credit Party or Subsidiary (other than a Regulated Subsidiary), on the one hand, and a Regulated Entity, on the other hand, in order to reduce or waive, in whole or in part, managing general agency, service company or attorney-in-fact fees that are then due and payable thereunder and/or have already been paid but which are subsequently waived in accordance with Applicable Law by the Credit Party or Subsidiary (other than a Regulated Subsidiary) to whom such fees would otherwise have been paid thereunder, as applicable.

Section 8.17 <u>Accounting and Reporting Changes</u>. (i) No Credit Party or Subsidiary (other than any Regulated Entity) may make any significant change in accounting treatment or reporting practices, except as required by GAAP or the SEC; and (ii) no Regulated Entity may make any significant change in accounting treatment or reporting practices, except as required by SAP.

Section 8.18 <u>Statutory Capitalization / Risk-Based Capital Ratio</u>. As of the end of each Fiscal Year, each Credit Party, Subsidiary and other Regulated Entity that is subject to any minimum statutory capitalization and/or risk-based capital ratio requirements imposed by any Insurance Regulatory Authority and/or Applicable Laws shall meet or exceed such requirements and, in any event, maintain a risk-based capital ratio of *at least* three-hundred percent (300.0%) of the authorized control level (or substantially equivalent term as used under Applicable Laws and/or by any applicable Insurance Regulatory Authority); <u>provided</u> , <u>that</u>, in the event of any failure to comply with any of the foregoing requirements, the Credit Parties, Subsidiaries and other Regulated Entities shall have a period of thirty (30) calendar days, measured from, and including, the date on which any of the Credit Parties, Subsidiaries and other Regulated Entities that are subject to any such requirements shall have reported, or have been required under Applicable Law or other requirement of an Insurance Regulatory Authority to report, any such capitalization and/or risk-based capital ratio information to an applicable Insurance Regulatory Authority, to return to compliance with such minimum statutory capitalization and/or risk-based capital ratio requirements.

Section 8.19 <u>Holdco Restrictions</u>. The Borrower shall *not* incur any Indebtedness, grant any Liens upon any of its Property, or engage in any operations, business or activity whatsoever, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) incurring and carrying Indebtedness permitted under <u>Section</u> <u>8.1</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) owning and/or purchasing Equity Interests in Subsidiaries and serving as the attorney-in-fact for Qualifying Reciprocal Entities,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) granting a security interest in its Property pursuant to the terms of any Collateral Documents or otherwise as permitted by <u>Section</u> <u>8.2</u>,

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) providing a Guaranty of the Obligations pursuant to this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) maintaining its corporate or limited liability company (as applicable) existence,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) participating in tax, accounting and other administrative activities for itself and/or as a member of the consolidated group of companies including the Credit Parties and Subsidiaries,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) executing and delivering, and exercising its respective rights and performing each of its respective obligations under, each of the Credit Documents to which it is a party, any Secured Swap Agreements and/or Secured Treasury Management Agreements to which it is a party, and any other Contractual Obligations to which it is a party,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) opening and maintaining bank accounts,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) making any Restricted Payments or Investments expressly permitted to be made pursuant to this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) providing customary indemnification to officers and directors in the ordinary course of business (including pursuant to any Acquisition agreement and related documents to which it is a party),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) owning cash and Cash Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) issuing securities or other payments, awards or grants in cash, securities, or otherwise pursuant to (or for the funding of, as applicable) employment agreements to which it is a party or related employee stock options and employee stock ownership plans, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) any activities incidental or reasonably related to the foregoing,

in each case of the foregoing <u>clauses (a</u>) through (<u>m</u>), in a lawful manner *not* in contravention of the terms of this Agreement and the other Credit Documents.

**Article 9** 

**<u>EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS.</u>**

Section 9.1 <u>Events of Default</u>. If any one (1) or more of the following conditions or events shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Failure to Make Payments When Due</u>. Failure by any Credit Party to pay:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the principal of any Loan when due, whether at stated maturity, by acceleration or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within one (1) Business Day of when due, any amount payable to the Issuing Bank in reimbursement of any drawing under a Letter of Credit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) within five (5) Business Days of when due, any interest on any Loan or any fee or any other amount due hereunder; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Default in Other Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Failure of any Credit Party, any Subsidiary, or any other Regulated Entity to pay when due any principal of or interest on, or any other amount payable in respect of, one or more items of Indebtedness (other than Indebtedness referred to in <u>clause (a</u>) above) in an aggregate principal amount in *excess* of the Threshold Amount, in each case, beyond the grace or cure period, if any, provided therefor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) breach or default by any Credit Party, any Subsidiary, or any other Regulated Entity with respect to any other term of (A) one (1) or more items of Indebtedness in the aggregate principal amounts referred to in <u>clause (b)(i</u>) above, or (B) any loan agreement, mortgage, indenture or other agreement relating to such item(s) of Indebtedness, in each case, beyond the grace or cure period, if any, provided therefor, if the effect of such breach or default is to cause, or to permit the holder or holders of that Indebtedness (or a trustee on behalf of such holder or holders), to cause, that Indebtedness to become or be declared due and payable (or subject to a compulsory repurchase or redeemable) prior to its stated maturity or the stated maturity of any underlying obligation, as the case may be;

<u>provided</u>, <u>that</u>, so long as the Administrative Agent has *not* exercised any remedies under this <u>Article 9</u>, any Default or Event of Default under this <u>clause (b</u>) shall be immediately cured and no longer continuing (without any action on the part of the Administrative Agent, any Lender or otherwise) as and when any such failure (I) is remedied by applicable Credit Party, Subsidiary or other Regulated Entity, or (II) is waived (including in the form of amendment) by the requisite holders of the applicable item of Indebtedness; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Breach of Certain Covenants</u>. Failure of any Credit Party to perform or comply with any term or condition contained in <u>Section</u> <u>7.1(a</u>), <u>Section</u> <u>7.1(b</u>), <u>Section</u> <u>7.1(c</u>), <u>Section</u> <u>7.1(h</u>), <u>Section</u> <u>7.2(a</u>), <u>Section</u> <u>7.6</u>, <u>Section</u> <u>7.9</u> or <u>Section</u> <u>7.15</u>, or <u>Article 8</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Breach of Representations, etc</u>. Any representation, warranty, certification or other statement made, or deemed made, by any Credit Party or Subsidiary in any Credit Document to which it is a party, or in any statement or certificate at any time given by any Credit Party, Subsidiary or other Regulated Entity in writing pursuant hereto or thereto, or in connection herewith or therewith, shall be false in any material respect as of the date made or deemed made; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Other Defaults Under Credit Documents</u>. Any Credit Party, any Subsidiary or any other Regulated Entity shall default in the performance of, or compliance with, any term contained herein or in any of the other Credit Documents to which it is a party, other than any such term referred to in any other clause of this <u>Section</u> <u>9.1</u>, and such default shall *not* have been remedied or waived within thirty (30) days after the *earlier* to occur of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an Authorized Officer of any Credit Party becoming aware of such default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) receipt by the Borrower of notice from the Administrative Agent or the Required Lenders of such default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Involuntary Bankruptcy; Appointment of Receiver, etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A court of competent jurisdiction shall enter a decree or order for relief in respect of any Credit Party, any Subsidiary, or any other Regulated Entity in an involuntary case under

------

the Bankruptcy Code or Debtor Relief Laws now or hereafter in effect, which decree or order is *not* stayed, or any other similar relief shall be granted under any applicable federal or state law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) an involuntary case shall be commenced against any Credit Party, any Subsidiary, or any other Regulated Entity under the Bankruptcy Code or other Debtor Relief Laws now or hereafter in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over any Credit Party, any Subsidiary or any other Regulated Entity, or over all, or a substantial part, of their respective Property, shall have been entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there shall have occurred the involuntary appointment of an interim receiver, trustee or other custodian of any Credit Party, any Subsidiary, or any other Regulated Entity for all, or a substantial part, of its respective Property; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) a warrant of attachment, execution or similar process shall have been issued against any substantial part of the Property of any Credit Party, any Subsidiary or any other Regulated Entity;

and any such event described in this <u>clause (f)(ii</u>) shall continue for sixty (60) days without having been dismissed, bonded or discharged; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Voluntary Bankruptcy; Appointment of Receiver, etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Credit Party, any Subsidiary, or any other Regulated Entity shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) have an order for relief entered with respect to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) commence a voluntary case under the Bankruptcy Code or other Debtor Relief Laws now or hereafter in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) consent to the appointment of, or taking possession by, a receiver, trustee or other custodian for all, or a substantial part, of its Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) make any assignment for the benefit of creditors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) be unable, or fail generally, or admit in writing its inability, to pay its debts as such debts become due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the board of directors (or similar governing body) of any Credit Party, any Subsidiary or any other Regulated Entity, or any committee thereof, shall adopt any resolution or otherwise authorize any action to approve any of the actions referred to in this <u>clause (g</u>) or in <u>clause (f</u>) above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Judgments and Attachments</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any one or more final, non-appealable money judgments, writs or warrants of attachment or similar process involving an aggregate amount at any time in *excess* of the Threshold Amount (to the extent *not* adequately covered by insurance as to which a solvent and unaffiliated insurance company has acknowledged coverage in writing) shall be entered or filed against any Credit Party, any Subsidiary or any other Regulated Entity, or any of their respective Property, and shall remain undischarged, un-vacated, un-bonded or un-stayed for a period of sixty

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(60) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any non-monetary judgment or order shall be rendered against any Credit Party, any Subsidiary or any other Regulated Entity that could reasonably be expected to have a Material Adverse Effect, and shall remain undischarged, un-vacated, un-bonded or un-stayed for a period of sixty (60) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Dissolution</u>. Any order, judgment or decree shall be entered against any Credit Party, any Subsidiary or any other Regulated Entity decreeing the dissolution or split up of any such Person, and such order shall remain undischarged or un-stayed for a period in *excess* of thirty (30) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Pension Plans</u>. There shall occur one (1) or more ERISA Events that, individually or in the aggregate when taken together, results in liability to the Credit Parties, Subsidiaries and other Regulated Entities (taken together) in *excess* of the Threshold Amount during the term hereof and which is *not* paid by the applicable due date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Change in Control</u>. A Change in Control shall occur; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Invalidity of Credit Documents and Other Documents</u>. At any time after the execution and delivery thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) this Agreement or any other Credit Document ceases to be in full force and effect (other than by reason of (x) a release of Collateral in accordance with the terms of this Agreement and the other Credit Documents, or (y) the Payment in Full of the Obligations) or is declared to be null and void; or (B) the Collateral Agent shall *not* have, or shall cease to have, a valid and perfected Lien in any material portion of the Collateral purported to be covered by the Collateral Documents with the priority required by the relevant Collateral Document, except, in the case of this <u>clause (l)(i)(B</u>), to the extent that any such lapse is due to the failure by the Collateral Agent to (I) file any UCC financing statement or any continuation thereof, or (II) maintain possession of certificates, promissory notes, or other possessory Collateral pledged under the Collateral Documents (except to the extent that any such items were required to be delivered to the Collateral Agent pursuant to this Agreement and the other Credit Documents and were *not* so delivered within the applicable timeframe prescribed therefor in the applicable Credit Document(s)); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Credit Party, any Subsidiary, or any other Regulated Entity shall contest the validity or enforceability of any Credit Document in writing or deny in writing that any Credit Party has any further liability, including with respect to future advances by the Lenders, under any Credit Document to which it is a party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Risk Retention</u>. On June 1<sup>st</sup> of each calendar year, the net (of reinsurance coverage obtained) pre-tax catastrophe retention of any individual Regulated Entity (other than any Captive Reinsurance Company), whose Statutory Surplus is available for payment of claims on policies issued by the Regulated Entities (other than Captive Reinsurance Companies), *exceeds* twenty-five percent (25.0%) of the Statutory Surplus of such Regulated Entity, determined as of March 31<sup>st</sup> of the same calendar year in the event of a 1/100 Probable Maximum Loss followed by a subsequent event equivalent to a 1/50 Probable Maximum Loss, as measured by a catastrophe model that has been approved by the appropriate Insurance Regulatory Authority; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Reinsurer Concentration</u>. The aggregate amount of risk retention for catastrophe reinsurance (but *excluding* catastrophe reinsurance the full amount of which is collateralized as reasonably determined by the Administrative Agent) provided for payment of claims on policies purchased from the Credit Parties, Subsidiaries and other Regulated Entities provided by (i) any Qualifying Reinsurer (other than the Florida Hurricane Catastrophe Fund) with an "A+" or higher financial strength rating from A.M. Best Company (or any successor in interest thereto), on an annual contract year basis, *exceeds* thirty-five percent (35.0%), or (ii) any other individual (or affiliated) reinsurer (other than the Florida Hurricane Catastrophe Fund), on an annual contract year basis, *exceeds* twenty-five percent (25.0%), in each case of the foregoing <u>clauses (n)(i</u>) and (<u>n)(ii</u>), of the aggregate amount of all such risk retention provided by all reinsurers (other than the Florida Hurricane Catastrophe Fund); <u>provided</u>, <u>that</u>, (A) for purposes of determining whether an Event of Default exists under this <u>clause (n</u>), reinsurance provided by Non-Qualifying Reinsurers shall be *excluded* from the calculation of the aggregate amount of risk retention to the extent that the aggregate amount of reinsurance provided by Non-Qualifying Reinsurers *exceeds* ten percent (10.0%) of the aggregate amount of all reinsurance maintained by, or for the benefit of, the Regulated Entities whose Statutory Surpluses are available for payment of claims on policies issued by the Credit Parties, Subsidiaries and other Regulated Entities, and (B) no Event of Default shall arise under this <u>clause (n</u>) to the extent *solely* arising from the merger, after the Closing Date but *prior* to the renewal of the applicable reinsurance agreements, of any reinsurer into another reinsurer, so long as no party to any such merger is a Credit Party, a Subsidiary, another Regulated Entity, or an Affiliate of any of the foregoing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Dissolution</u>. Any order, judgment or decree shall be entered against any Credit Party, any Subsidiary, or any other Regulated Entity decreeing the dissolution or split up of any such Person, and such order, judgement or decree shall remain undischarged or unstayed for a period in *excess* of thirty (30) calendar days.

Section 9.2 <u>Remedies</u>. Subject to any applicable restrictions set forth in <u>Section</u> <u>9.4</u> in connection with the making of a Specified Equity Contribution, upon (a) the occurrence of an Automatic Acceleration Event of Default, automatically, and (b) the occurrence, and during the continuance, of any other Event of Default, at the request of (or with the consent of) the Required Lenders, upon notice to the Borrower by the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Revolving Commitments, if any, of each Lender having such Revolving Commitments, and the obligation of the Issuing Bank to issue any Letter of Credit, each shall immediately terminate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the DDTL Commitments, if any, of each Lender having such DDTL Commitments shall immediately terminate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each of the following shall immediately become due and payable, in each case, without presentment, demand, protest or other requirements of any kind, all of which are hereby expressly waived by each of the Credit Parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the unpaid principal amount of, and accrued interest on, the Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) an amount equal to the maximum amount that may at any time be drawn under all Letters of Credit then outstanding (regardless of whether any beneficiary under any such Letter of Credit shall have presented, or shall be entitled at such time to present, the drafts or other documents or certificates required to draw under such Letters of Credit); and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) all other Obligations;

<u>provided</u>, <u>that</u> , the foregoing <u>sub-clauses (ii)(A</u>), (<u>ii)(B</u>) and (<u>ii)(C</u>) shall *not* affect in any way the obligations of the Lenders under <u>Section</u> <u>2.2(b)(iii</u>) or <u>Section</u> <u>2.3(e</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Administrative Agent shall cause the Collateral Agent to enforce any and all Liens and security interests created pursuant to Collateral Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Administrative Agent shall direct the Borrower to pay (and the Borrower hereby agrees, upon receipt of such notice, or automatically upon the occurrence of any Automatic Acceleration Event of Default, to pay) to the Administrative Agent such additional amounts of cash, to be held as security for the Borrower's reimbursement Obligations in respect of Letters of Credit then outstanding under arrangements acceptable to the Administrative Agent, equal to the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, at such time.

Notwithstanding anything herein or otherwise to the contrary, any Event of Default occurring hereunder shall continue to exist (and shall be deemed to be continuing) until such time as such Event of Default has been cured to the satisfaction of the Required Lenders or waived in writing in accordance with the terms of <u>Section</u> <u>11.4</u>.

Section 9.3 <u>Application of Funds</u>. After the exercise of remedies provided for in <u>Section</u> <u>9.2</u> (or after the Loans have automatically become immediately due and payable), any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>First</u>*, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (other than principal, interest and Letter of Credit Fees but including without limitation all reasonable out-of-pocket fees, expenses and disbursements of any law firm or other counsel and amounts payable under <u>Section</u> <u>3.1</u>, <u>Section</u> <u>3.2</u> and <u>Section</u> <u>3.3</u>) payable to the Administrative Agent and the Collateral Agent, in each case, in its capacity as such;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Second</u>*, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders, including, without limitation, all reasonable out-of-pocket fees, expenses and disbursements of any law firm or other counsel and amounts payable under <u>Section</u> <u>3.1</u>, <u>Section</u> <u>3.2</u> and <u>Section</u> <u>3.3</u>), ratably among the Lenders in proportion to the respective amounts described in this *<u>Second clause</u>* payable to them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Third</u>*, to payment of that portion of the Obligations constituting accrued and unpaid Letter of Credit Fees and interest on the Loans, Letter of Credit Borrowings and other Obligations ratably among such parties in proportion to the respective amounts described in this *<u>Third clause</u>* payable to them; 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Fourth</u>* , to: **  

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) payment of that portion of the Obligations constituting unpaid principal of the Loans and Letter of Credit Borrowings;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) payment of breakage, termination or other amounts owing in respect of any Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, to the extent such Swap Agreement is permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) payments of amounts due under any Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Administrative Agent for the account of the Issuing Bank, to Cash Collateralize that portion of the Letter of Credit Obligations comprised of the aggregate undrawn amount of Letters of Credit;

ratably among such parties in proportion to the respective amounts described in this *<u>Fourth</u> <u>clause</u>* payable to them; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Last</u>*, the balance, if any, after all of the Obligations have been Paid in Full, to the Borrower or as otherwise required by Applicable Laws.

Subject to <u>Section</u> <u>2.3</u>, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to the *<u>Fourth clause</u>* above shall be applied to satisfy drawings under such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above.

Excluded Swap Obligations with respect to any Guarantor shall *not* be paid with amounts received from such Guarantor or such Guarantor's assets, but appropriate adjustments shall be made with respect to payments from other Credit Parties to preserve the allocation to Obligations otherwise set forth above in this <u>Section</u> <u>9.3</u>.

Notwithstanding anything to the contrary in the foregoing, Secured Swap Obligations and Secured Treasury Management Obligations shall be excluded from the application described above if the Administrative Agent has not received a Secured Party Designation Notice, together with such supporting documentation as the Administrative Agent may request, from the applicable Qualifying Swap Provider or Qualifying Treasury Management Bank, as the case may be. Each Qualifying Swap Provider or Qualifying Treasury Management Bank not a party to this Agreement that has given the notice contemplated by the preceding sentence shall, by such notice, be deemed to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of <u>Article 10</u> for itself and its Affiliates as if a "*Lender*" party to this Agreement.

Section 9.4 <u>Cure Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any provision to the contrary contained in this Agreement or any other Credit Document, for purposes of determining compliance with the Financial Covenants set forth in <u>Section</u> <u>8.8(a</u>) and <u>Section</u> <u>8.8(b</u>), respectively, the proceeds ("*<u>Cure Proceeds</u>*") of any cash equity contribution (which equity shall be common Equity Interests or other Equity Interests *not* constituting Disqualified Equity Interests) that is made by any of the holders (direct or indirect) of outstanding Equity Interests in the Borrower to the Borrower after the end of the applicable Fiscal Quarter in respect of which such Cure Proceeds are contributed but, in any event, on or prior to the date that is fifteen (15) Business Days after the date on which financial statements have been, or are required to have been, delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>) in respect of such Fiscal Quarter (each such period, a

------

"*<u>Cure Period</u>*"), will be included in the calculation of (and such Cure Proceeds shall increase) Consolidated EBITDA on a dollar-for-dollar basis *solely* for the limited purpose of determining compliance with the Financial Covenant set forth in <u>Section</u> <u>8.8(a</u>) and/or the Financial Covenant set forth in <u>Section</u> <u>8.8(b</u>) (as applicable) for (I) such Fiscal Quarter, and (II) any subsequent fiscal period including such Fiscal Quarter (each such contribution of Cure Proceeds, a "*<u>Specified Equity Contribution</u>*"), and, for the avoidance of doubt, such Cure Proceeds shall be disregarded and shall *not* affect the calculation of Consolidated EBITDA for all other purposes of this Agreement and the other Credit Documents (including, without limitation, for purposes of calculating compliance with any of such Financial Covenants with respect to any other fiscal period, calculating compliance with the Financial Covenant set forth in <u>Section</u> <u>8.8(c</u>) with respect to any fiscal period, calculation of the Applicable Margin, calculation of availability under any Financial Covenant-related basket, carveout or exception set forth in this Agreement or any other Credit Document, or calculation of compliance, on a Pro Forma Basis or otherwise, with any financial ratio-based test or condition related to determining whether the consummation of any Specified Transaction is permitted under this Agreement or any other Credit Document), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) with respect to each fiscal period consisting of two (2) consecutive full Fiscal Quarters, there shall be *at least* one (1) Fiscal Quarter during such period in respect of which no Specified Equity Contribution is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there shall be *no more than* five (5) Specified Equity Contributions made in the aggregate during the term of this Agreement (it being understood and agreed that, in the event that a Specified Equity Contribution is made in respect of multiple Financial Covenants each measured as of the end of a single Fiscal Quarter, then such Specified Equity Contribution for such Fiscal Quarter shall count as a single Specified Equity Contribution for purposes of this <u>clause (a)(ii</u>));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate amount of Cure Proceeds contributed in respect of any individual Specified Equity Contribution shall be *no greater than* the minimum amount required to cause the Credit Parties to be in compliance with the applicable Financial Covenant(s) for the applicable Fiscal Quarter in respect of which such Specified Equity Contribution is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all Specified Equity Contributions shall be disregarded for purposes of the calculation of Consolidated EBITDA for all purposes of this Agreement and the other Credit Documents, other than for the express purpose(s), and for the applicable period(s), as described in the foregoing of this <u>Section</u> <u>9.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) there shall be no *pro forma* or other reduction in Indebtedness, through either the netting of cash or prepayment of the Term Loans or otherwise, with any Cure Proceeds received by any Credit Party, any Subsidiary or any other Regulated Entity in respect of any Specified Equity Contribution for purposes of determining compliance with the Financial Covenants for any period(s) in respect of which such Specified Equity Contribution is included in Consolidated EBITDA in accordance with this <u>clause (a</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Borrower shall prepay the Obligations with the Cure Proceeds received by any Credit Party, any Subsidiary or any Regulated Entity in connection with any Specified Equity Contribution in accordance with <u>Section</u> <u>2.11(c)(iv</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary contained in this Agreement or any other Credit Document, upon the Administrative Agent's receipt of written notice from the Borrower that it intends, prior to the expiration of the applicable Cure Period (relating to the applicable Fiscal Quarter with respect to which the applicable Financial Covenant violation(s) relate), to effect an equity cure pursuant to this

------

<u>Section</u> <u>9.4</u> (any such notice being irrevocable) and until the expiration of such Cure Period, and *solely* to the extent that no Event of Default exists at such time (other than in respect of a Financial Covenant tested for such Fiscal Quarter), neither the Administrative Agent nor any Lender shall be permitted to (i) accelerate the Obligations, (ii) terminate the Commitments, (iii) impose Default Interest, or (iv) exercise remedies under the Credit Documents (including against the Collateral), in each case of the foregoing <u>clauses (b)(i</u>) through (<u>b)(iv</u>), *solely* as a result of such Event(s) of Default resulting from a violation of any Financial Covenant(s) tested for such Fiscal Quarter. Notwithstanding anything to the contrary in the foregoing, no Lender shall be required to make any Loan, and the Issuing Bank shall *not* be required to issue any Letter of Credit, from and after the last day of the applicable Fiscal Quarter (with respect to which the breach of an applicable Financial Covenant(s) has occurred) until the date on which the applicable Credit Party, Subsidiary or other Regulated Entity shall have received the Cure Proceeds in accordance with this <u>Section</u> <u>9.4</u>.

**Article 10** 

**<u>AGENCY</u>**

Section 10.1 <u>Appointment and Authority</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Lenders and the Issuing Bank hereby irrevocably appoints Regions Bank to act on its behalf as the Administrative Agent hereunder and under the other Credit Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this <u>Article 10</u> are *solely* for the benefit of the Administrative Agent, the Lenders and the Issuing Bank, and no Credit Party, Subsidiary or other Regulated Entity shall have rights as a third party beneficiary of any of such provisions. It is understood and agreed that the use of the term "*agent*" herein or in any other Credit Documents (or any other similar term) with reference to the Administrative Agent is *not* intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Lenders hereby irrevocably appoints, designates and authorizes the Collateral Agent to take such action on its behalf under the provisions of this Agreement and each Collateral Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any Collateral Document, together with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any Collateral Document, the Collateral Agent shall not have any duties or responsibilities, except those expressly set forth herein or therein, nor shall the Collateral Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any Collateral Document or otherwise exist against the Collateral Agent. Without limiting the generality of the foregoing sentence, the use of the term "*agent*" herein and in the Collateral Documents with reference to the Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. The Collateral Agent shall act on behalf of the Lenders with respect to any Collateral and the Collateral Documents, and the Collateral Agent shall have all of the benefits and immunities: (i) provided to the Administrative Agent under the Credit Documents with respect to any acts taken or omissions suffered by the Collateral Agent in connection with any Collateral or the Collateral Documents as fully as if the term "*Administrative Agent*" as used in such Credit Documents included the Collateral Agent with respect to such acts or omissions; and (ii) as additionally provided herein or in the Collateral Documents with respect to the Collateral Agent.

------

Section 10.2 <u>Rights as a Lender</u>. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender, and may exercise the same as though it were *not* the Administrative Agent, and the term "*Lender*" or "*Lenders*" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with, the Borrower, any Subsidiary or other Affiliate of the Borrower or any other Regulated Entity, as if such Person were *not* the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

Section 10.3 <u>Exculpatory Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Credit Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall *not* have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Credit Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Credit Documents), <u>provided</u>, <u>that</u>, the Administrative Agent shall *not* be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Credit Document or Applicable Law, including, for the avoidance of doubt, any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall *not*, except as expressly set forth herein and in the other Credit Documents, have any duty to disclose, and shall *not* be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall *not* be liable for any action taken or not taken by it: (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in <u>Section</u> <u>11.4</u> and <u>Section</u> <u>9.2</u>); or (ii) in the absence of its own gross negligence or willful misconduct, as determined by a court of competent jurisdiction by final and non-appealable judgment. The Administrative Agent shall be deemed *not* to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent in writing by the Borrower, a Lender or the Issuing Bank.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall *not* be responsible for or have any duty to ascertain or inquire into:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any statement, warranty or representation made in or in connection with this Agreement or any other Credit Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Credit Document or any other agreement, instrument or document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the satisfaction of any condition set forth in <u>Article 5</u> or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent and any assignor of a Loan or seller of a participation hereunder shall be entitled to rely conclusively on a representation of the assignee Lender or Participant in any document delivered in connection with this Agreement, including, without limitation, the relevant Assignment Agreement or participation agreement, as applicable, that such assignee or purchaser is not a Disqualified Institution. The Administrative Agent shall *not* be responsible or have any liability for, or have any duty to ascertain, inquire into, monitor or enforce, compliance with the provisions hereof relating to Disqualified Institutions. Without limiting the generality of the foregoing, the Administrative Agent shall not (x) be obligated to ascertain, monitor or inquire as to whether any Lender or Participant or prospective Lender or Participant is a Disqualified Institution, or (y) have any liability with respect to or arising out of any assignment or participation of Loans, or disclosure of confidential information, to any Disqualified Institution.

Section 10.4 <u>Reliance by Administrative Agent</u>. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the Issuing Bank, the Administrative Agent may presume that such condition is satisfactory to such Lender or the Issuing Bank unless the Administrative Agent shall have received notice to the contrary from such Lender or the Issuing Bank prior to the making of such Loan or the issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower and its Subsidiaries), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

Section 10.5 <u>Delegation of Duties</u>. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Credit Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this <u>Section</u> <u>10.5</u> shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

------

Section 10.6 <u>Resignation of Administrative Agent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent may at any time give notice of its resignation to the Lenders, the Issuing Bank and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an office in the United States (but which shall not be a Disqualified Institution), or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the "*<u>Resignation Effective Date</u>*"), then the retiring Administrative Agent may (but shall not be obligated to) on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent meeting the qualifications set forth above. Whether or not a successor has been appointed such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Person serving as Administrative Agent is a Defaulting Lender pursuant to <u>clause</u> <u>(d</u>) of the definition thereof, the Required Lenders may, to the extent permitted by Applicable Law by notice in writing to the Borrower and such Person remove such Person as the Administrative Agent and, in consultation with the Borrower, appoint a successor. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days (or such earlier day as shall be agreed by the Required Lenders (the "*<u>Removal Effective Date</u>*")), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With effect from the Resignation Effective Date or the Removal Effective Date (as applicable): (1) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Credit Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders or the Issuing Bank under any of the Credit Documents, the retiring or removed Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed); and (2) except for any indemnity payments owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and the Issuing Bank directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments owed to the retiring or removed Administrative Agent), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Credit Documents (if not already discharged therefrom as provided above in this Section). The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor, unless otherwise agreed between the Borrower and such successor. After the retiring or removed Administrative Agent's resignation or removal hereunder and under the other Credit Documents, the provisions of this <u>Article 10</u> and <u>Section</u> <u>11.2</u> shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.

------

Section 10.7 <u>Non-Reliance on Administrative Agent and Other Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Lenders and the Issuing Bank acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each of the Lenders and the Issuing Bank also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Credit Document or any related agreement or any document furnished hereunder or thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Lender hereby represents and warrants that: (i) (A) the Credit Documents set forth the terms of a commercial lending facility, and (B) such Lender is engaged in the making, acquiring or holding of commercial loans in the ordinary course, and is entering into this Agreement as a Lender for the purpose of making, acquiring or holding commercial loans and providing other credit facilities as set forth in this Agreement, as may be applicable to such Lender, and *not*, in any event, for the purpose of purchasing, acquiring or holding any other type of financial instrument or any security; and (ii) such Lender is sophisticated with respect to decisions to make, acquire and/or hold commercial loans and to provide other credit facilities as set forth in this Agreement, as may be applicable to such Lender, and either it, or the Person exercising discretion in making its decision to make, acquire and/or hold such commercial loans, and/or to provide such other credit facilities, as the case may be, is experienced in making, acquiring or holding such commercial loans and/or providing such other credit facilities. Each Lender agrees *not* to assert a claim in contravention of any of the foregoing of this <u>clause (b</u>).

Section 10.8 <u>No Other Duties, etc</u>. Anything herein to the contrary notwithstanding, none of the Arrangers, Co-Documentation Agents or Syndication Agent listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Credit Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or the Issuing Bank hereunder.

Section 10.9 <u>Administrative Agent May File Proofs of Claim</u>. In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or Letter of Credit Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, Letter of Credit Obligations and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the Issuing Bank and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the Issuing Bank and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the Issuing Bank and the Administrative Agent under <u>Section</u> <u>2.10</u> and <u>Section</u> <u>11.2</u>) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and the Issuing Bank to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders and the Issuing Bank, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under <u>Section</u> <u>2.10</u> and <u>Section</u> <u>11.2</u>).

------

Section 10.10 <u>Collateral and Guaranty Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Lenders (including the Issuing Bank and the Swingline Lender) irrevocably authorize the Administrative Agent and the Collateral Agent, at its option and in its discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to release any Lien on any Property granted to, or held under, any Credit Document securing the Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) upon the Payment in Full of the Obligations under this Agreement and the other Credit Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) that is sold or otherwise disposed of, or to be sold or otherwise disposed of, as part of, or in connection with, any sale or other disposition permitted under the Credit Documents or consented to in accordance with the terms of this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) subject to <u>Section</u> <u>11.4</u>, if approved, authorized or ratified in writing by the Required Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to subordinate any Lien on any Property granted to, or held under, any Credit Document securing the Obligations to the holder of any Lien on such Property that is permitted by <u>Section</u> <u>8.2(m</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to release any Guarantor from its obligations under this Agreement and the other Credit Documents if such Person ceases to be a Guarantor as a result of a transaction permitted under the Credit Documents.

Upon request by the Administrative Agent or the Collateral Agent at any time, the Required Lenders will confirm in writing the Administrative Agent's authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under this Agreement pursuant to this <u>Section</u> <u>10.10</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall *not* be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Administrative Agent's Lien thereon, or any certificate prepared by any Credit Party in connection therewith, nor shall the Administrative Agent be responsible or liable to the Lenders for any failure to monitor or maintain any portion of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Anything contained in any of the Credit Documents to the contrary notwithstanding, each of the Credit Parties, the Administrative Agent, the Collateral Agent and each holder of the Obligations hereby agree that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no holder of the Obligations shall have any right individually to realize upon any of the Collateral or to enforce this Agreement, the Notes or any other Credit Document, it being understood and agreed that all powers, rights and remedies hereunder may be exercised *solely* by the Administrative Agent, on behalf of the holders of the Obligations in accordance with the terms hereof and all powers, rights and remedies under the Collateral Documents may be exercised *solely* by the Collateral Agent; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event of a foreclosure by the Collateral Agent on any of the Collateral pursuant to a public or private sale or other disposition, the Collateral Agent or any Lender may be the purchaser of any or all of such Collateral at any such sale or other disposition, and the Collateral Agent, as agent for and representative of the holders of the Obligations (but *not* any Lender or Lenders in its or their respective individual capacities, unless the Required Lenders shall otherwise agree in writing) shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all, or any portion, of the Collateral sold at any such public sale, to use and apply any of the Obligations as a credit on account of the purchase price for any collateral payable by the Collateral Agent at such sale or other disposition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Secured Swap Agreement or Secured Treasury Management Agreement will create (or be deemed to create) in favor of any Qualifying Swap Provider or any Qualifying Treasury Management Bank, respectively that is a party thereto any rights in connection with the management or release of any Collateral or of the obligations of the Borrower or any other Credit Party under the Credit Documents except as expressly provided herein or in the other Credit Documents. By accepting the benefits of the Collateral, each such Qualifying Swap Provider and Qualifying Treasury Management Bank shall be deemed to have appointed the Collateral Agent as its agent and agreed to be bound by the Credit Documents as a holder of the Obligations, subject to the limitations set forth in this <u>clause (d</u>). Furthermore, it is understood and agreed that the Qualifying Swap Provider and Qualifying Treasury Management Banks, in their capacity as such, shall *not* have any right to notice of any action or to consent to, direct or object to any action hereunder or under any of the other Credit Documents or otherwise in respect of the Collateral (including the release or impairment of any Collateral, or to any notice of or consent to any amendment, waiver or modification of the provisions hereof or of the other Credit Documents) other than in its capacity as a Lender and, in any case, only as expressly provided herein.

Section 10.11 <u>Erroneous Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Administrative Agent notifies a Lender, the Issuing Bank, any other holder(s) of the Obligations or any other Person(s) who has received funds on behalf of a Lender, the Issuing Bank or any other holder(s) of the Obligations (any such Lender, Issuing Bank, other holder(s) of the Obligations or other recipient(s), a "*<u>Payment Recipient</u>*") that the Administrative Agent has determined in its sole discretion (whether or not after its receipt of any notice delivered pursuant to <u>clause (b</u>) below) that any funds received by such Payment Recipient from the Administrative Agent, or any of its Affiliates, were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient on its behalf) (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "*<u>Erroneous Payment</u>*") and demands the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall, at all times, remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in *no* event *later than* two (2) Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from, and including, the date on which such Erroneous Payment (or portion thereof) was received by such Payment Recipient to, and including, the date on which such amount is repaid to the Administrative Agent in same day funds at the *greater of* the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice delivered from the Administrative Agent to any Payment Recipient pursuant to this <u>clause (a</u>) shall be conclusive and binding, absent manifest error.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting anything in the immediately foregoing <u>clause (a</u>), each Lender, the Issuing Bank, each other holder(s) of the Obligations party hereto and each other Payment Recipient party hereto hereby further agrees that, if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (I) that is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (II) that was *not* preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (III) that such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient(s) otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part), in each case of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) in any such case of the immediately preceding <u>clauses (b)(I</u>) or (b)(<u>II</u>), an error shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary), or (B) in any such case of the immediately preceding <u>clause (b)(III</u>), an error has been made, in each case of the foregoing <u>clauses (b)(i)(A</u>) and (<u>b)(i)(B</u>), with respect to such payment, prepayment or repayment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient(s) shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in any event, within one (1) Business Day of its obtaining knowledge of such error) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this <u>clause (b</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Lender, the Issuing Bank, each other holder of the Obligations party hereto and each other Payment Recipient party hereto hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s) under any Credit Document, or otherwise payable or distributable by the Administrative Agent to such Lender, the Issuing Bank, such other holder(s) of the Obligations and/or such other Payment Recipient(s) from any source, against any amount due to the Administrative Agent under immediately preceding <u>clause (a</u>) or under the indemnification provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that an Erroneous Payment (or portion thereof) is *not* recovered by the Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance with foregoing <u>clause (a</u>), from any Lender, the Issuing Bank, any other holder(s) of the Obligations or any other Payment Recipient(s) that has received such Erroneous Payment (or portion thereof) (and/or from any other recipient who received such Erroneous Payment (or portion thereof) on the respective behalf of any of the foregoing) (such unrecovered amount, an "*<u>Erroneous Payment Return Deficiency</u>*"), upon the Administrative Agent's notice to such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, at any time: (i) such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, shall be deemed to have assigned (to the extent it has any such Loans) its Loans (but *not* its Commitments) of the relevant Class with respect to which such Erroneous Payment was made (the "*<u>Erroneous Payment Impacted Class</u>*") in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of such Loans (but *not* Commitments) of the Erroneous Payment Impacted Class, the "*<u>Erroneous Payment Deficiency</u>*

------

*<u>Assignment</u>*") at par *plus* any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance), and such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, is hereby (together with the Borrower) deemed to have executed and delivered an Assignment Agreement (or, to the extent applicable, an agreement incorporating an Assignment Agreement by reference pursuant to Debtdomain, Intralinks, Syndtrak, or a substantially similar electronic transmission system as to which the Administrative Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and <u>further</u>, such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, shall deliver any Note(s) evidencing any such Loans to the Administrative Agent; (ii) the Administrative Agent, as the assignee Lender, shall be deemed to acquire the Erroneous Payment Deficiency Assignment; (iii) upon such deemed acquisition, the Administrative Agent, as the assignee Lender, shall become a Lender, the Issuing Bank or such other type of holder of the Obligations, as the case may be, hereunder with respect to such Erroneous Payment Deficiency Assignment, and <u>further</u>, the assigning Lender, the Issuing Bank or such other holder(s) of the Obligations shall cease to be a Lender, the Issuing Bank or such other holder of the Obligations, as the case may be, hereunder with respect to such Erroneous Payment Deficiency Assignment, but *excluding*, for the avoidance of doubt, such Person's obligations under the indemnification provisions of this Agreement and its applicable Commitments, which shall survive as to such assigning Lender, Issuing Bank or other holder(s) of the Obligations; and (iv) the Administrative Agent may reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. The Administrative Agent may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and, upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender, the Issuing Bank, the other applicable holder(s) of the Obligations or the other such applicable Payment Recipient(s), as the case may be, shall be *reduced* by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be (and/or against any recipient that receives funds on the respective behalf of any of the foregoing). For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender or the Issuing Bank, and such Commitments shall remain available in accordance with the terms of this Agreement. In addition, each party hereto agrees that, except to the extent that the Administrative Agent has sold a Loan (or portion thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and irrespective of whether the Administrative Agent may be equitably subrogated, the Administrative Agent shall be contractually subrogated to all of the rights and interests of the applicable Lender, the Issuing Bank or any other applicable holder(s) of the Obligations under the Credit Documents with respect to each Erroneous Payment Return Deficiency (the "*<u>Erroneous Payment Subrogation Rights</u>*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each of the parties hereto agree that an Erroneous Payment shall *not* pay, prepay, repay, discharge, or otherwise satisfy any Obligations owed by the Borrower or any other Credit Party, except, in each case, to the extent that such Erroneous Payment is, and *solely* with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrower or any other Credit Party for the purpose of making such Erroneous Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent permitted by Applicable Law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and each party hereto, to the extent constituting a Payment Recipient, hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including, without limitation, waiver of any defense based on "*discharge for value*" or any similar doctrine. 

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each party's respective obligations, agreements and waivers under this <u>Section</u> <u>10 .11</u> shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, any Lender, the Issuing Bank or any other holder(s) of the Obligations, the termination of any or all of the Commitments, and/or the repayment, satisfaction or discharge of any or all of the Obligations (or any portion thereof) under any Credit Document.

**Article 11** 

**<u>MISCELLANEOUS</u>**

Section 11.1 <u>Notices; Effectiveness; Electronic Communications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices Generally</u>. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in <u>clause (b</u>) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier or electronic mail as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Administrative Agent, the Borrower or any other Credit Party, to the address, telecopier number, electronic mail address or telephone number specified in <u>Appendix B</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to any Lender, the Issuing Bank or the Swingline Lender, to the address, telecopier number, electronic mail address or telephone number in its Administrative Questionnaire on file with the Administrative Agent.

Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by telecopier shall be deemed to have been given when sent (except that, if *not* given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices and other communications delivered through electronic communications to the extent provided in <u>clause (b</u>) below, shall be effective as provided in <u>clause (b</u>) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Electronic Communications</u>. Notices and other communications to the Lenders and the Issuing Bank hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, <u>provided</u>, <u>that</u>, the foregoing shall *not* apply to notices to any Lender or the Issuing Bank pursuant to <u>Article 2</u> if such Lender or the Issuing Bank, as applicable, has notified the Administrative Agent and the Borrower that it is incapable of receiving notices under such Article by electronic communication. The Administrative Agent or any Credit Party may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, <u>provided</u>, <u>that</u>, approval of such procedures may be limited to particular notices or communications.

Unless the Administrative Agent otherwise prescribes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "*return receipt requested*" function, as available, return e-mail or other written acknowledgement); and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing <u>clause (b)(i</u>) of notification that such notice or communication is available and identifying the website address therefor,

<u>provided</u>, <u>that</u>, with respect to <u>clauses (b)(i</u>) and (<u>b)(ii</u>) above, if such notice or other communication is *not* sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Change of Address, Etc</u>. Any party hereto may change its address or telecopier number for notices and other communications hereunder by notice to the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Platform</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Credit Party agrees that the Administrative Agent may, but shall *not* be obligated to, make the Communications (as defined below) available to the Issuing Bank and the other Lenders by posting the Communications on Debtdomain, Intralinks, Syndtrak or a substantially similar electronic transmission system (the "*<u>Platform</u>*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Platform is provided "*as is*" and "*as available*". The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or the Platform. In no event shall the Administrative Agent or any of its Related Parties (collectively, the "*<u>Agent Parties</u>*") have any liability to the Borrower or the other Credit Parties, any Lender or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower's, any other Credit Party's or the Administrative Agent's transmission of communications through the Platform. "*<u>Communications</u>*" means, collectively, any notice, demand, communication, information, document or other material provided by, or on behalf of, any Credit Party pursuant to any Credit Document or the transactions contemplated therein which is distributed to the Administrative Agent, any Lender or the Issuing Bank by means of electronic communications pursuant to this Section, including through the Platform.

Section 11.2 <u>Expenses; Indemnity; Damage Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Costs and Expenses</u>. The Credit Parties shall pay, on a joint and several basis, each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all reasonable and documented costs and out-of-pocket expenses incurred by the Administrative Agent and its Affiliates (which, in the case of legal counsel, shall be limited to the reasonable fees, charges and disbursements of one primary counsel for the Administrative Agent, the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, one local counsel to the Administrative Agent, the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, in each material relevant jurisdiction (which may include a single special counsel acting in

------

multiple jurisdictions) if reasonably deemed necessary by the Administrative Agent, and, *solely* in the case of an actual or perceived conflict of interest, one additional primary counsel and, if reasonably deemed necessary by the Administrative Agent (or the relevant Lender or Lenders, as applicable), one additional counsel in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) for each group of such affected Persons similarly situated, taken as a whole) in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Credit Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all reasonable and documented costs and out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all reasonable and documented costs and out-of-pocket expenses incurred by the Administrative Agent, any Lender or the Issuing Bank (which, in the case of legal counsel, shall be limited to the reasonable fees, charges and disbursements of one primary counsel for the Administrative Agent, the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, one local counsel to the Administrative Agent, the Collateral Agent, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) if reasonably deemed necessary by the Administrative Agent, and, *solely* in the case of an actual or perceived conflict of interest, one additional primary counsel and, if reasonably deemed necessary by the Administrative Agent (or the relevant Lender or Lenders, as applicable), one additional counsel in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) for each group of such affected Persons similarly situated, taken as a whole) in connection with the enforcement or protection of its rights:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in connection with this Agreement and the other Credit Documents, including its rights under this Section; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification by the Credit Parties</u>. The Credit Parties shall indemnify, on a joint and several basis, the Administrative Agent (and any sub-agent thereof), the Collateral Agent (and any sub-agent thereof), each Lender and the Issuing Bank, and each Related Party of any of the foregoing Persons (each such Person being called an "*<u>Indemnitee</u>*") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (which, in the case of legal counsel, shall be limited to the reasonable fees, charges and disbursements of one primary counsel for the Indemnitees, taken as a whole, and of one special and local counsel to the Indemnitees, taken as a whole, in each applicable jurisdiction retained by the Administrative Agent and/or the Collateral Agent, and, in the event of any actual or potential conflict of interest, one additional primary, special and local counsel, as applicable, for each Indemnitee subject to a conflict), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Borrower or any other Credit Party) other than such Indemnitee or its Related Parties arising out of, in connection with, or as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the execution or delivery of this Agreement, any other Credit Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by any Credit Party, any Subsidiary or any other Regulated Entity, or any Environmental Liability related in any way to any Credit Party, any Subsidiary or any other Regulated Entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing <u>sub-clauses (b)(i</u>), (<u>b)(ii</u>), or (<u>b)(iii</u>), whether based on contract, tort or any other theory, whether brought by a third party or by any Credit Party, any Subsidiary or any other Regulated Entity, and regardless of whether any Indemnitee is a party thereto;

<u>provided</u>, <u>that</u>, such indemnity shall *not*, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses: (x) are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee; or (y) result from a claim brought by the Borrower or any Credit Party against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder or under any other Credit Document, if the Borrower or such Credit Party has obtained a final and non-appealable judgment in its favor on such claim as determined by a court of competent jurisdiction. This <u>clause (b</u>) shall *not* apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Reimbursement by Lenders</u>. To the extent that the Credit Parties for any reason fail to indefeasibly pay any amount required under <u>clauses (a</u>) or (<u>b</u>) above to be paid by it to the Administrative Agent (or any sub-agent thereof), the Collateral Agent (or any sub-agent thereof), the Issuing Bank or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the Collateral Agent (or any such sub-agent), the Issuing Bank or such Related Party, as the case may be, such Lender's *pro rata* share (in each case, determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount, <u>provided</u>, <u>that</u>, the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or the Issuing Bank in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) or the Issuing Bank in connection with such capacity. The obligations of the Lenders under this <u>clause (c</u>) are subject to the provisions of this Agreement that provide that their obligations are several in nature, and not joint and several.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Waiver of Consequential Damages, Etc</u>. To the fullest extent permitted by Applicable Law, none of the Credit Parties shall assert, and each hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Credit Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof. No Indemnitee referred to in <u>clause (b</u>) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Credit Documents or the transactions contemplated hereby or thereby.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payments</u>. All amounts due under this Section shall be payable promptly, but in any event within ten (10) Business Days after written demand therefor (including delivery of copies of applicable invoices, if any).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Survival</u>. The provisions of this Section shall survive resignation or replacement of the Administrative Agent, Collateral Agent, the Issuing Bank, the Swingline Lender or any Lender, termination of the commitments hereunder and repayment, satisfaction and discharge of the loans and obligations hereunder.

Section 11.3 <u>Set-Off</u>. If an Event of Default shall have occurred and be continuing, each Lender, the Issuing Bank, and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, the Issuing Bank or any such Affiliate to or for the credit or the account of the Borrower or any other Credit Party against any and all of the obligations of the Borrower or such Credit Party now or hereafter existing under this Agreement or any other Credit Document to such Lender, the Issuing Bank or their respective Affiliates, irrespective of whether or not such Lender, the Issuing Bank or such Affiliate shall have made any demand under this Agreement or any other Credit Document and although such obligations of the Borrower or such Credit Party may be contingent or un-matured or are owed to a branch, office or Affiliate of such Lender or the Issuing Bank different from the branch or office holding such deposit or obligated on such indebtedness; <u>provided</u>, <u>that</u>, in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of <u>Section</u> <u>2.16</u> and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing Bank, and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender, the Issuing Bank and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, the Issuing Bank or their respective Affiliates may have. Each of the Lenders and the Issuing Bank agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application, <u>provided</u>, <u>that</u>, the failure to give such notice shall *not* affect the validity of such setoff and application.

Section 11.4 <u>Amendments and Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Required Lenders' Consent</u>. Subject to <u>clauses (b</u>) and (<u>c</u>) below, no amendment, modification, termination or waiver of any provision of the Credit Documents, or consent to any departure by any Credit Party therefrom, shall in any event be effective without the written concurrence of the Administrative Agent and the Required Lenders, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each of the Fee Letter and any Auto Borrow Agreement may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitments, Loans and/or Letter of Credit Obligations of such Lender may *not* be increased or extended without the consent of such Lender;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each Lender is entitled to vote as such Lender sees fit on any bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the provisions of Section 1126(c) of the Bankruptcy Code of the United States supersedes the unanimous consent provisions set forth herein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Required Lenders shall determine whether or not to allow any Credit Party to use cash collateral in the context of a bankruptcy or insolvency proceeding and such determination shall be binding on all of the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Affected Lenders' Consent</u>. Without the written consent of each Lender (other than a Defaulting Lender except as provided in <u>clause (a)(ii</u>) above) that would be affected thereby (it being understood and agreed, for purposes of clarity, that all Lenders shall be deemed to be affected Lenders for purposes of any amendment, modification, termination, or consent described in <u>clauses (b)(v</u>), (<u>b)(vii</u>), (<u>b)(viii</u>) and (<u>b)(ix</u>) below), but subject to <u>Section</u> <u>3.1(a</u>), no amendment, modification, termination, or consent shall be effective if the effect thereof would be to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) extend the Revolving Commitment Termination Date, the DDTL Commitment Termination Date, or any Maturity Date, or otherwise postpone the scheduled date for the termination or reduction of any Commitment of a Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) waive, reduce the amount (or the amount payable in cash) of, or postpone or extend the time for payment (in cash or otherwise) of, any scheduled (including at maturity) payment or repayment (other than any mandatory prepayment) in respect of any Loan, Letter of Credit or other Obligation, whether of principal, interest, fees, reimbursement obligations or other amounts, or otherwise reduce the rate of interest applicable thereto; <u>provided</u>, <u>that</u>, only the consent of the Required Lenders shall be necessary to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) waive any imposition of the Default Rate pursuant to <u>Section</u> <u>2.9</u>, amend the definition of "*Default Rate*" in <u>Section</u> <u>1.1</u>, or otherwise waive any obligation of the Borrower to pay interest at the Default Rate; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) amend any Financial Covenant (or any defined term used therein) even if the effect of such amendment would be to reduce the rate of interest on any Loan or to reduce any fee payable hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) change the provisions of: (A) <u>Section</u> <u>2.12</u>, <u>Section</u> <u>2.14</u> or <u>Section</u> <u>9.3</u> in any respect; or (B) <u>Section</u> <u>2.11</u> in any manner that would alter the *pro rata* sharing of payments, the *pro rata* reduction of Commitments, and/or the order of application of funds or proceeds required thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) extend the stated expiration date of any Letter of Credit beyond the Revolving Commitment Termination Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amend, modify, terminate, or waive any provision of this <u>clause (b</u>), any provision of the below <u>clause (c</u>), or any other provision of this Agreement that expressly provides that the consent of all Lenders, or of all affected Lenders, is required to amend, modify, terminate, or waive such provision;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) amend the definitions of "*Required DDTL Lenders*", "*Required Lenders*" or "*Required Revolving Lenders*" in <u>Section</u> <u>1.1</u>, or otherwise change the percentage of the Total Credit Exposures (or any component(s) thereof) of all of the Lenders that is required for the Lenders, or any of them, to take any action hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) (A) release all, or substantially all, of the Guarantors from their respective obligations hereunder, or (B) limit the liability of such Guarantors under <u>Article 4</u> or under any other guaranty agreement Guaranteeing the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) release all, or substantially all, of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) consent to the assignment or transfer by the Borrower of any of its rights and obligations under any Credit Document, or otherwise to the release of the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) subordinate (or consent to the subordination of), in whole or in part, (A) any of the Liens in favor of the Collateral Agent, for the benefit of the holders of the Obligations, securing any or all of the Obligations to any Liens securing any Indebtedness, or (B) any of the Obligations in right of payment to any Indebtedness, in each case of the foregoing <u>clauses</u> <u>(b)(x)(A</u>) and (<u>b)(x)(B</u>), other than as expressly permitted by this Agreement as in effect on the Closing Date with respect to Indebtedness of the type described in <u>Section</u> <u>8.1(e</u>) (as in effect on the Closing Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Consents</u>. No amendment, modification, termination or waiver of any provision of the Credit Documents, or consent to any departure by the Borrower or any other Credit Party therefrom, shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) increase any Commitment of any Lender over the amount thereof then in effect (or otherwise reinstate any previously terminated Commitment of any Lender) without the consent of such Lender; <u>provided</u>, <u>that</u>, no amendment, modification or waiver of any condition precedent, covenant, Default or Event of Default shall constitute an increase in any Commitment of any Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) amend, modify, terminate or waive any provision hereof relating to the Swingline Sublimit or the Swingline Loans without the consent of the Swingline Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) amend, modify, terminate or waive any obligation of Lenders relating to the purchase of participations in Letters of Credit as provided in <u>Section</u> <u>2.3(e</u>) without the written consent of the Administrative Agent and of the Issuing Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) amend, modify, terminate or waive any provision of this <u>Article 11</u> as the same applies to the Administrative Agent, or any other provision hereof as the same applies to the rights or obligations of the Administrative Agent, in each case, without the consent of the Administrative Agent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amend, modify, terminate or waive any condition precedent to the obligation of each Lender to fund its respective Commitment Percentage of any Credit Extension on any Credit Date set forth in <u>Section</u> <u>5.2</u>, without the consent of the Required Revolving Lenders (in the case of the making of a Revolving Loan or the issuing or extending of a Letter of Credit) or the Required DDTL Lenders (in the case of the making of an advance under the Delayed Draw Term Loan), as applicable (it being understood and agreed that the consent of the Required Lenders, in addition to the consent of the Required DDTL Lenders or the Required Revolving Lenders (as applicable), shall *not* be required for any such amendment, modification, termination or waiver).

------

Notwithstanding any of the foregoing to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) this Agreement may be amended: (I) to implement technical, administrative and/or mechanical changes pursuant to an Incremental Facility Agreement effected in accordance with <u>Section</u> <u>2.1(e)(ii</u>); (II) to effect Conforming Changes in accordance with <u>Section</u> <u>2.7(i</u>); and (III) in connection with the implementation of a Benchmark Replacement and/or any related Conforming Changes, all as provided in <u>Section</u> <u>3.1(g</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Borrower and the other Credit Parties shall *not* be required for any amendment, modification or waiver of the provisions of <u>Article 10</u> (other than the provisions of <u>Section</u> <u>10.6</u> or <u>Section</u> <u>10.10</u>), so long as such amendment is *not* adverse to the interests of the Borrower and the other Credit Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the Credit Parties, the Administrative Agent and/or the Collateral Agent, without the consent of any Lender, may enter into any amendment, modification or waiver of any Credit Document, or enter into any new agreement or instrument, to effect the granting, perfection, protection, expansion or enhancement of any security interest in any Collateral or additional property to become Collateral for the benefit of the holders of the Obligations, or as required by local law to give effect to, or protect any security interest for the benefit of the holders of the Obligations, in any property or so that the security interests therein comply with Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the Administrative Agent, the Collateral Agent, and the Borrower may amend, modify or supplement this Agreement or any other Credit Document to cure or correct administrative or technical errors or omissions or any ambiguity, mistake, defect, inconsistency or obvious error, or to make any necessary or desirable administrative or technical change, and such amendment shall become effective without any further consent of any other party to such Credit Document, so long as such amendment, modification or supplement does *not* adversely affect the rights of any Lender or any other holder of the Obligations in any material respect, if the same is *not* objected to in writing by the Required Lenders within five (5) Business Days following receipt of notice thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) this Agreement may be amended and restated without the consent of any Lender (but with the consent of the Borrower and the Administrative Agent) if, upon giving effect to such amendment and restatement, such Lender shall no longer be a party to this Agreement (as so amended and restated), the Commitments of such Lender shall have terminated, such Lender shall have no other commitment or other obligation hereunder, and shall have been paid in full all principal, interest and other amounts owing to it, or accrued for its account, under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Execution of Amendments, etc</u>. The Administrative Agent may, but shall have no obligation to, with the concurrence of any Lender, execute amendments, modifications, waivers or consents on behalf of such Lender. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on any Credit Party in any case shall entitle any Credit Party to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver or consent effected in accordance with this <u>Section</u> <u>11.4</u> shall be binding upon the Administrative Agent, each Lender at the time outstanding, each future Lender and, if signed by the Borrower, on the Borrower.

------

Section 11.5 <u>Successors and Assigns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors and Assigns Generally</u>. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Credit Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to an assignee in accordance with the provisions of <u>clause (b</u>) below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) by way of participation in accordance with the provisions of <u>clause (d</u>) below; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) by way of pledge or assignment of a security interest subject to the restrictions of <u>clause (e</u>) below (and any other attempted assignment or transfer by any party hereto shall be null and void).

Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in <u>clause (d</u>) below and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignments by Lenders</u>. Any Lender may, at any time, assign to one or more assignees (other than to any Disqualified Institution) all, or a portion, of its rights and obligations under this Agreement (including all, or a portion, of its Commitments, Loans and obligations hereunder at the time owing to it), <u>provided</u>, <u>that</u>, any such assignment shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Minimum Amounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in the case of an assignment of the entire remaining amount of the assigning Lender's Commitments and Loans at the time owing to it of the relevant Class or contemporaneous assignments to Approved Funds (that equal *at least* the amounts specified in <u>clause (b)(i)(B</u>) below in the aggregate) or, in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in any case *not* described in <u>clause (b)(i)(A</u>) above, the aggregate amount of the Commitment(s), and/or the aggregate outstanding principal balance of the Loan(s), of the relevant Class of the assigning Lender subject to such assignment (determined as of the date the Assignment Agreement evidencing such assignment tis delivered to the Administrative Agent or, if a "*Trade Date*" is specified in such Assignment Agreement, as of the Trade Date) shall *not* be *less than* (I) Two Million Dollars ($2,000,000), in the case of any assignment of Revolving Loans or Revolving Commitments, and (II) Five Million Dollars ($5,000,000), in the case of any assignment of Term Loans or Term Loan Commitments, unless (in any such case of the foregoing <u>clauses (b)(i)(B)(I</u>) or (<u>b)(i)(B)(II</u>)) each of the Administrative Agent and, so long as no Event of Default shall have occurred and is continuing, the Borrower otherwise consents (each such consent *not* to be unreasonably withheld, conditioned or delayed).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Proportionate Amounts</u>. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Commitments and Loans assigned, except that this <u>clause (b)(ii</u>) shall *not* prohibit any Lender from assigning all, or a portion, of its rights and obligations on a non-*pro rata* basis as between its Revolving Commitment and/or Revolving Loans, on the one hand, and its Commitments in respect of Term Loans and/or its Term Loans, on the other the hand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Required Consents</u>. No consent shall be required for any assignment except to the extent required by <u>clause (b)(i)(B</u>) above and, in addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required, unless (I) an Event of Default shall have occurred and is continuing at the time of such assignment, or (II) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; <u>provided</u>, <u>that</u>, the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Administrative Agent (such consent *not* to be unreasonably withheld or delayed) shall be required for assignments in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) commitments under revolving credit facilities and unfunded commitments under term loan facilities if such assignment is to a Person that is *not* a Lender with a commitment in respect of such facility, an Affiliate of such Lender or an Approved Fund with respect to such Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) a funded Term Loan to a Person who is *not* a Lender, an Affiliate of a Lender or an Approved Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the consent of the Issuing Bank (such consent *not* to be unreasonably withheld or delayed) shall be required for any assignment in respect of any Revolving Commitment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the consent of the Swingline Lender (such consent *not* to be unreasonably withheld or delayed) shall be required for any assignment in respect of any Revolving Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Assignment Agreement</u>. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment Agreement, together with a processing and recordation fee in the amount of Three Thousand Five-Hundred Dollars ($3,500), unless waived, in whole or in part by the Administrative Agent in its discretion. The assignee, if it is *not* a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Assignment to Certain Persons</u>. No such assignment shall be made to: (A) any Credit Party, any Subsidiary, any other Regulated Entity, or any Affiliate of any of the foregoing; (B) any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this <u>clause (b)(v)(B</u>); or (C) a Disqualified Institution, <u>provided</u>, <u>that</u>, any assignment made to a Disqualified Institution in violation of this <u>clause (b)(v)(C</u>) shall *not* be void, but the provisions of <u>clause (f)(ii</u>) below may apply.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>No Assignment to Natural Persons</u>. No such assignment shall be made to a natural person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <u>Certain Additional Payments</u>. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or sub-participations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable *pro rata* share of Loans previously requested but *not* funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to: (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent, the Issuing Bank, the Swingline Lender and each other Lender hereunder (and interest accrued thereon); and (y) acquire (and fund as appropriate) its full *pro rata* share of all Loans and participations in Letters of Credit and Swingline Loans in accordance with its Revolving Commitment Percentage. Notwithstanding anything to the contrary in the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under Applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to <u>clause (c</u>) below, from and after the effective date specified in each Assignment Agreement, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment Agreement, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment Agreement, be released from its obligations under this Agreement (and, in the case of an Assignment Agreement covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of <u>Section</u> <u>2.16</u>, <u>Section</u> <u>2.17</u> and <u>Section</u> <u>11.2</u> with respect to facts and circumstances occurring prior to the effective date of such assignment; <u>provided</u>, <u>that</u>, except to the extent expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender. The Borrower will execute and deliver on request, at its own expense, a Note to the assignee evidencing the interests taken by way of assignment hereunder. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does *not* comply with this subsection (other than an assignment or transfer to a Disqualified Institution) shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with <u>clause (d</u>) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Register</u>. The Administrative Agent, acting *solely* for this purpose as an agent of the Borrower, shall maintain at one of its offices in the United States, a copy of each Assignment Agreement delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans and Obligations owing to, each Lender pursuant to the terms hereof from time to time (the "*<u>Register</u>*"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Participations</u>. Any Lender may at any time, without the consent of, or notice to, any Credit Party or the Administrative Agent, sell participations to any Person (other than a natural Person, a Credit Party, a Subsidiary, another Regulated Entity, another Affiliate of any of the foregoing, or a Disqualified Institution) (each, a "*<u>Participant</u>*") in all, or a portion, of such Lender's rights and/or obligations under this Agreement (including all, or a portion, of its Commitment and/or the Loans owing to it); <u>provided</u>, <u>that</u>, (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain *solely* responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower, the Administrative Agent, the Issuing Bank and Lenders shall continue to deal *solely* and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under <u>Section</u> <u>11.2(c</u>) with respect to any payments made by such Lender to its Participant(s).

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u>, <u>that</u>, such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in <u>clauses (b</u>) or (<u>c</u>) of <u>Section</u> <u>11.4</u> that affects such Participant; <u>provided</u>, <u>further</u>, <u>that</u> , any such agreement or instrument shall require the applicable Participant to represent and warrant for the benefit of the Borrower and such Lender that such Participant is *not* a Disqualified Institution. The Borrower agrees that each Participant shall be entitled to the benefits of <u>Section</u> <u>3.2</u>, <u>Section</u> <u>3.1</u> and <u>Section</u> <u>3.3</u> (subject to the requirements and limitations therein, including the requirements under <u>Section</u> <u>3.3(f</u>) (it being understood that the documentation required under <u>Section</u> <u>3.3(f</u>) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to <u>clause (b</u>) above; <u>provided</u>, <u>that</u>, such Participant (A) agrees to be subject to the provisions of <u>Section</u> <u>2.17</u> and <u>Section</u> <u>3.4</u> as if it were an assignee under <u>clause (b</u>) below, and (B) shall *not* be entitled to receive any greater payment under <u>Section</u> <u>3.2</u> or <u>Section</u> <u>3.3</u> with respect to any participation than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower's request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of <u>Section</u> <u>2.17</u> with respect to any Participant. To the extent permitted by Applicable Law, each Participant also shall be entitled to the benefits of <u>Section</u> <u>11.3</u> as though it were a Lender; <u>provided</u>, <u>that</u>, such Participant agrees to be subject to <u>Section</u> <u>2.14</u> as though it were a Lender. Each Lender that sells a participation shall, acting *solely* for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Credit Documents (the "*<u>Participant Register</u>*"); <u>provided</u>, <u>that</u> , no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Credit Document) to any Person, except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103–1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certain Pledges</u>. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement, or any promissory notes evidencing its interests hereunder, to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this <u>Section</u> <u>11.5</u> shall *not* apply to any such pledge or assignment of a security interest; <u>provided</u>, <u>that</u>, no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Disqualified Institution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No assignment or participation shall be made to any Person that was a Disqualified Institution as of the date on which the assigning Lender entered into an Assignment Agreement or participation agreement, as applicable, with such Person (unless the Borrower has consented to such assignment to such entity, in which case, such entity will not be considered a Disqualified Institution for the purpose of such assignment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If any assignment or participation is made to any Disqualified Institution without the Borrower's prior written consent in violation of <u>clause (f)(i</u>) above, the Borrower may, at its sole expense and effort, upon notice to the applicable Disqualified Institution, (A) terminate any Revolving Commitment of such Disqualified Institution and repay all Obligations of the Borrower owing to such Disqualified Institution in connection with such Revolving Commitment, and (B) in the case of an outstanding portion of any Term Loan held by such Disqualified Institution, prepay or purchase such portion of the Term Loans, in each case, *plus* accrued interest, fees and other amounts payable to such Disqualified Institution hereunder; <u>provided</u>, <u>that</u>, the Borrower may not use the proceeds of any Revolving Loans to repay outstanding Obligations owing to a Disqualified Institution pursuant to the foregoing <u>clauses (f)(ii)(A</u>) and (<u>f)(ii)(B</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary herein, Disqualified Institutions (x) will *not* have the right to receive information, reports or other materials provided to the Lenders by the Borrower, the Administrative Agent or any other Lender, attend or participate in meetings attended by the Lenders and the Administrative Agent or access any electronic site established for the Lenders or confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders, and (y) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) under, this Agreement or any other Credit Document, each Competitor will be deemed to have consented in the same proportion as the Lenders that are not Disqualified Institutions consented to such matter. The Administrative Agent shall have the right, and the Borrower hereby expressly authorizes the Administrative Agent to post the Disqualified Institution List on the Platform, including the portion of the Platform that is designated for "public side" Lenders and/or provide the Disqualified Institution List to each Lender requesting the same.

Section 11.6 <u>Independence of Covenants</u>. All covenants hereunder shall be given independent effect so that, if a particular action or condition is *not* permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

------

Section 11.7 <u>Survival of Representations, Warranties and Agreements</u>. All representations, warranties and agreements made herein shall survive the execution and delivery hereof and the making of any Credit Extension. Notwithstanding anything herein or implied by law to the contrary, the agreements of each Credit Party set forth in <u>Section</u> <u>3.1(c</u>), <u>Section</u> <u>3.2</u>, <u>Section</u> <u>3.3</u>, <u>Section</u> <u>11.2</u> , <u>Section</u> <u>11.3</u> , and <u>Section</u> <u>11.10</u>, and the agreements of the Lenders and the Agents set forth in <u>Section</u> <u>2.14</u>, <u>Section</u> <u>10.3</u> and <u>Section</u> <u>11 .2(c</u>), shall survive the payment of the Loans, the cancellation, expiration or cash collateralization of the Letters of Credit, and the termination hereof.

Section 11.8 <u>No Waiver; Remedies Cumulative</u>. No failure or delay on the part of the Administrative Agent or any Lender in the exercise of any power, right or privilege hereunder or under any other Credit Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other power, right or privilege. The rights, powers and remedies given to the Administrative Agent and each Lender hereby are cumulative and shall be in addition to and independent of all rights, powers and remedies existing by virtue of any statute or rule of law or in any of the other Credit Documents, any Swap Agreements or any Treasury Management Agreements. Any forbearance or failure to exercise, and any delay in exercising, any right, power or remedy hereunder shall not impair any such right, power or remedy or be construed to be a waiver thereof, nor shall it preclude the further exercise of any such right, power or remedy.

Section 11.9 <u>Marshalling; Payments Set Aside</u>. Neither the Administrative Agent nor any Lender shall be under any obligation to marshal any assets in favor of any Credit Party or any other Person or against or in payment of any or all of the Obligations. To the extent that any Credit Party makes a payment or payments to the Administrative Agent, the Issuing Bank, the Swingline Lender or the Lenders (or to the Administrative Agent, on behalf of Lenders), or the Administrative Agent, the Collateral Agent, the Issuing Bank or the Lenders enforce any security interests or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any Debtor Relief Law, any other state or federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred.

Section 11.10 <u>Severability</u>. In case any provision in or obligation hereunder or any Note or other Credit Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

Section 11.11 <u>Obligations Several; Independent Nature of Lenders' Rights</u>. The obligations of the Lenders hereunder are several and no Lender shall be responsible for the obligations or Revolving Commitment of any other Lender hereunder. Nothing contained herein or in any other Credit Document, and no action taken by the Lenders pursuant hereto or thereto, shall be deemed to constitute the Lenders as a partnership, an association, a joint venture or any other kind of entity. The amounts payable at any time hereunder to each Lender shall be a separate and independent debt, and, subject to <u>Section</u> <u>10.10(c</u>), each Lender shall be entitled to protect and enforce its rights arising under this Agreement and the other Credit Documents and it shall not be necessary for any other Lender to be joined as an additional party in any proceeding for such purpose.

Section 11.12 <u>Headings</u>. Section headings herein are included herein for convenience of reference only and shall *not* constitute a part hereof for any other purpose or be given any substantive effect.

------

Section 11.13 <u>Applicable Laws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law</u>. This Agreement and the other Credit Documents and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of, or relating to this Agreement or any other Credit Document (except, as to any other Credit Document, as expressly set forth therein), and the transactions contemplated hereby and thereby, shall be construed in accordance with, and be governed by, the law of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Submission to Jurisdiction</u>. Each party hereto irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the State of New York sitting in the Borough of Manhattan and of the United States District Court of the Southern District, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Credit Document, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by Applicable Law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or in any other Credit Document shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Agreement or any other Credit Document against any Credit Party or its properties in the courts of any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver of Venue</u>. Each party hereto irrevocably and unconditionally waives, to the fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Credit Document in any court referred to in <u>clause (b</u>) above. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Service of Process</u>. Each party hereto irrevocably consents to service of process in the manner provided for notices in <u>Section</u> <u>11.1</u>. Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by Applicable Law.

Section 11.14 <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO: (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER; AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

Section 11.15 <u>Confidentiaity</u> . Each of the Administrative Agent, the Collateral Agent, the Issuing Bank and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to its Affiliates and to its Related Parties (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent required or requested by any regulatory agency or authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to the extent required by Applicable Laws or regulations or by any subpoena or similar legal process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to any other party hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in connection with the exercise of any remedies hereunder or under any other Credit Document or any action or proceeding relating to this Agreement or any other Credit Document or the enforcement of rights hereunder or thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) subject to an agreement containing provisions substantially the same as those of this Section, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any assignee of or Participant in, or any prospective assignee of or Participant in (including, for purposes hereof, any new lenders invited to join hereunder on an increase in the Loans and Commitments hereunder, whether by exercise of an accordion, by way of amendment or otherwise), any of its rights or obligations under this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower or its obligations, this Agreement or payments hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) on a confidential basis to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any rating agency in connection with rating any of the Credit Parties, Subsidiaries or other Regulated Entities, or any of the credit facilities provided for herein; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the CUSIP Service Bureau or any similar agency or organization in connection with the application, issuance, publishing and monitoring of CUSIP numbers or other market identifiers with respect to the credit facilities provided for herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) with the consent of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent such Information: (x) becomes publicly available other than as a result of a breach of this <u>Section</u> <u>11.15</u>; or (y) becomes available to the Administrative Agent, any Lender, the Issuing Bank or any of their respective Affiliates on a non-confidential basis from a source other than the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) for purposes of establishing a "due diligence" defense.

------

In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry, and service providers (including potential or actual credit insurers and re-insurers) to the Administrative Agent or any Lender in connection with the administration of this Agreement, the other Credit Documents, and the Commitments.

For purposes of this Section, "*<u>Information</u>*" shall mean all information received from any Credit Party, any Subsidiary or any other Regulated Entity relating to any Credit Party, any Subsidiary or any other Regulated Entity, or any of the respective businesses of any of the foregoing, other than any such information that is available to the Administrative Agent, any Lender or the Issuing Bank on a non-confidential basis prior to disclosure by such Credit Party, Subsidiary or other Regulated Entity; <u>provided</u>, <u>that</u>, in the case of information received from any Credit Party, any Subsidiary or any other Regulated Entity after the Closing Date, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this <u>Section</u> <u>11.15</u> shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

Each of the Administrative Agent, the Collateral Agent, the Issuing Bank and the Lenders acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Information may include material non-public information concerning any Credit Party, any Subsidiary and/or any other Regulated Entity, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) it has developed compliance procedures regarding the use of material non-public information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) it will handle such material non-public information in accordance with Applicable Law, including United States federal and state securities laws.

For the avoidance of doubt, nothing set forth in this <u>Section</u> <u>11.15</u> shall prohibit any individual from communicating or disclosing information (including any Information) regarding suspected violations of Applicable Law to a Governmental Authority or applicable self-regulatory authority.

Section 11.16 <u>Usury Savings Clause</u>. Notwithstanding any other provision herein to the contrary, the aggregate interest rate charged or agreed to be paid with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the nature of interest under Applicable Laws shall *not exceed* the Highest Lawful Rate. If the rate of interest (determined without regard to the preceding sentence) under this Agreement at any time *exceeds* the Highest Lawful Rate, the aggregate outstanding principal amount of all Loans shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect. In addition, if when the Loans made hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is *less than* the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect, then to the extent permitted by Applicable Law, the Borrower shall pay to the Administrative Agent an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding anything to the contrary in the foregoing, it is the intention of the Lenders and each of the Credit Parties to conform strictly to any applicable usury laws. Accordingly, if any Lender contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such Lender's option be applied to the aggregate outstanding principal amount of all Loans or be refunded to each of the applicable Credit Parties. In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender *exceeds* the Highest Lawful Rate, such Person may, to the extent permitted by Applicable Laws:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) characterize any payment that is *not* principal as an expense, fee, or premium rather than interest;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) exclude voluntary prepayments and the effects thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest, throughout the contemplated term of the Obligations hereunder.

Section 11.17 <u>Electronic Execution; Counterparts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Electronic Execution</u>. Each of the parties hereto hereby agrees that: (i) the electronic signature of any party to this Agreement or to any other Credit Document shall be as valid as an original "*wet*" signature of such party thereto, and <u>further</u>, that such signature shall be effective to bind such party to this Agreement or to such other Credit Document, as applicable; and (ii) any electronically signed document (including, without limitation, this Agreement and each other Credit Document) shall be deemed to (A) be "*written*" or "*in writing*", (B) have been signed, (C) constitute a record established and maintained in the ordinary course of business, and (D) constitute an original written record when printed from electronic files. Such paper copies or "*printouts*", if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding, will be admissible as between the parties to the same extent, and under the same conditions, as other original business records created and maintained in documentary form. None of the parties hereto shall contest the admissibility of true and accurate copies of electronically signed documents on the basis of the best evidence rule or as *not* satisfying the business records exception to the hearsay rule. For purposes of this <u>Section</u> <u>11.17</u>: (I) "*<u>electronic signature</u>*" shall mean a manually-signed original signature that is then transmitted by electronic means; (II) "*<u>transmitted</u> <u>by electronic means</u>*" shall mean sent in the form of a facsimile or sent via the internet as a ".pdf" (portable document format) or other replicating image attached to an e-mail message; and (III) "*<u>electronically signed document</u>*" shall mean a document transmitted by electronic means and containing, or to which there is affixed, an electronic signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Counterparts</u>. This Agreement and each other Credit Document may be executed by one (1) or more of the parties to this Agreement or such other Credit Document (as the case may be) on any number of separate counterparts, and all of said counterparts shall, taken together, be deemed to constitute one (1) and the same instrument. Delivery of an executed counterpart of a signature page to this Agreement, or any other Credit Document, by facsimile transmission or any other electronic mail in ".pdf" format, shall be as effective as delivery of a manually executed counterpart of this Agreement or such other Credit Document.

Section 11.18 <u>No Advisory of Fiduciary Relationship</u>. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Credit Document), each of the Credit Parties acknowledges and agrees, and acknowledges its Affiliates' understanding, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the arranging and other services regarding this Agreement provided by the Administrative Agent, are arm's-length commercial transactions between the Credit Parties, on the one hand, and the Administrative Agent, on the other hand;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Credit Parties have consulted their own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each of the Credit Parties is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Credit Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Administrative Agent is and has been acting *solely* as a principal and, except as expressly agreed in writing by the relevant parties, has *not* been, is *not* and will *not* be acting as an advisor, agent or fiduciary, for any Credit Party or any of their Affiliates or any other Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Administrative Agent does *not* have any obligation to any Credit Party or any of their Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Credit Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Administrative Agent and its respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Credit Parties and their Affiliates, and the Administrative Agent does *not* have any obligation to disclose any of such interests to any Credit Party or its Affiliates.

To the fullest extent permitted by Applicable Law, each of the Credit Parties hereby waives and releases, any claims that it may have against the Administrative Agent with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

Section 11.19 <u>Integration; Effectiveness</u>. This Agreement and the other Credit Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Article 5, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.

Section 11.20 <u>USA PATRIOT Act</u>. Each Lender subject to the Patriot Act hereby notifies each of the Credit Parties that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies each of the Credit Parties, which information includes the name and address of each of the Credit Parties and other information that will allow such Lender to identify each of the Credit Parties in accordance with the Patriot Act.

Section 11.21 <u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>. Notwithstanding anything to the contrary in any Credit Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender that is an Affected Financial Institution arising under any Credit Document, to the extent that such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority, and each party hereto agrees and consents to, and acknowledges and agrees to be bound by: (a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder that may be payable to it by any Lender that is an Affected Financial Institution; and (b) the effects of any Bail-In Action on any such liability, including, if

------

applicable, (i) a reduction, in full or in part, or cancellation of any such liability, (ii) a conversion of all, or a portion, of such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to, or otherwise conferred on, it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Credit Document, or (iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

Section 11.22 <u>Certain ERISA Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that at least one of the following is and will be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender is not using "plan assets" (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments or this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84–14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95–60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90–1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91–38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96–23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84–14);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Revolving Commitments and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84–14; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84–14 are satisfied with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, unless either (1) <u>clause (a)(i</u>) above is true with respect to a Lender, or (2) a Lender has provided another representation, warranty and covenant as provided in <u>clause (a)(iv</u>) above, such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that the Administrative Agent is *not* a fiduciary with respect to the assets of such Lender involved in such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Credit Document or any documents related hereto or thereto).

Section 11.23 <u>Acknowledgment Regarding any Supported QFCs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent that the Credit Documents provide support, through a guarantee or otherwise, for any Swap Obligation or any other agreement or instrument that is a QFC (such support, "*<u>QFC Credit Support</u>*"; and each such QFC, a "*<u>Supported QFC</u>*"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "*<u>U</u>*<u>.</u>*<u>S</u>*<u>.</u> *<u>Special Resolution</u> <u>Regimes</u>*") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Credit Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that a Covered Entity that is a party to a Supported QFC (each, a "*<u>Covered</u> <u>Party</u>*") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the Laws of the United States or a state of the United States. In the event that a Covered Party, or a BHC Act Affiliate of a Covered Party, becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Credit Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Credit Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

[*Remainder of Page Intentionally Left Blank*]

------

ANNEX II

TO FIRST AMENDMENT TO CREDIT AGREEMENT

<u>APPENDIX A</u>

[On file with the Administrative Agent]

------

ANNEX III

TO FIRST AMENDMENT TO CREDIT AGREEMENT

[On file with the Administrative Agent]

## Exhibit 4.5

**Exhibit 4.5** 

***Executed Copy*** 

**AMENDED AND RESTATED CREDIT AGREEMENT** 

dated as of May 5, 2026

by and among

SAFEPOINT HOLDINGS, INC.

as the Borrower,

CERTAIN SUBSIDIARIES OF THE BORROWER FROM TIME TO TIME PARTY HERETO,

as Guarantors,

THE LENDERS FROM TIME TO TIME PARTY HERETO,

and

REGIONS BANK,

as the Administrative Agent, the Collateral Agent, the Issuing Bank and the Swingline Lender

BANK OZK,

FLAGSTAR BANK, N.A.,

THE HUNTINGTON NATIONAL BANK,

KEYBANK NATIONAL ASSOCIATION,

PINNACLE BANK (D/B/A SYNOVUS BANK),

and

TEXAS CAPITAL BANK,

as Co-Syndication Agents

CIBC BANK USA,

as Documentation Agent

REGIONS CAPITAL MARKETS, a division of Regions Bank, BANK OZK,

FLAGSTAR BANK, N.A.,

THE HUNTINGTON NATIONAL BANK,

KEYBANK NATIONAL ASSOCIATION,

PINNACLE BANK (D/B/A SYNOVUS BANK),

and

TCBI SECURITIES, INC.,

as Joint Lead Arrangers and Joint Bookrunners

Cover Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
|  |  | *Page* |
| **Article 1 — DEFINITIONS AND INTERPRETATION** | **Article 1 — DEFINITIONS AND INTERPRETATION** | **2** |
| Section 1.1 | Definitions | 2 |
| Section 1.2 | Accounting Terms | 57 |
| Section 1.3 | Rules of Interpretation | 59 |
| Section 1.4 | Rules of Interpretation with Respect to Regulated Subsidiaries | 61 |
| Section 1.5 | Classifications of Loans and Borrowings | 61 |
| Section 1.6 | Cashless Rollovers | 62 |
| Section 1.7 | Interest Rate Disclosure | 62 |
| **Article 2 — LOANS AND LETTERS OF CREDIT** | **Article 2 — LOANS AND LETTERS OF CREDIT** | **62** |
| Section 2.1 | Revolving Loans and Term Loans | 62 |
| Section 2.2 | Swingline Loans | 67 |
| Section 2.3 | Issuances of Letters of Credit and Purchase of Participations Therein | 70 |
| Section 2.4 | Pro Rata Shares; Availability of Funds | 75 |
| Section 2.5 | Evidence of Debt; Register; Lenders' Books and Records; Notes | 76 |
| Section 2.6 | Scheduled Principal Payments | 76 |
| Section 2.7 | Interest on Loans | 77 |
| Section 2.8 | Conversion / Continuation | 79 |
| Section 2.9 | Default Rate of Interest | 80 |
| Section 2.10 | Fees | 80 |
| Section 2.11 | Prepayments/Commitment Reductions | 82 |
| Section 2.12 | Application of Prepayments | 85 |
| Section 2.13 | General Provisions Regarding Payments | 85 |
| Section 2.14 | Sharing of Payments by Lenders | 86 |
| Section 2.15 | Cash Collateral | 87 |
| Section 2.16 | Defaulting Lenders | 88 |
| Section 2.17 | Removal or Replacement of Lenders | 91 |
| **Article 3 — YIELD PROTECTION** | **Article 3 — YIELD PROTECTION** | **92** |
| Section 3.1 | Making or Maintaining SOFR Loans; Benchmark Replacement | 92 |
| Section 3.2 | Increased Costs | 96 |
| Section 3.3 | Taxes | 97 |
| Section 3.4 | Mitigation Obligations; Designation of a Different Lending Office | 101 |
| **Article 4 — GUARANTY** | **Article 4 — GUARANTY** | **101** |
| Section 4.1 | The Guaranty | 101 |
| Section 4.2 | Obligations Unconditional | 102 |
| Section 4.3 | Reinstatement | 103 |
| Section 4.4 | Certain Additional Waivers | 103 |
| Section 4.5 | Remedies | 103 |
| Section 4.6 | Rights of Contribution | 103 |
| Section 4.7 | Guarantee of Payment; Continuing Guarantee | 103 |
| Section 4.8 | Keepwell | 103 |
| **Article 5 — CONDITIONS PRECEDENT** | **Article 5 — CONDITIONS PRECEDENT** | **104** |
| Section 5.1 | Conditions Precedent to Initial Credit Extensions | 104 |
| Section 5.2 | Conditions to Each Credit Extension | 107 |

---

**Table of Contents** to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | | |
|:---|:---|:---|
| **Article 6 — REPRESENTATIONS AND WARRANTIES** | **Article 6 — REPRESENTATIONS AND WARRANTIES** | **108** |
| Section 6.1 | Organization; Requisite Power and Authority; Qualification | 108 |
| Section 6.2 | Equity Interests and Ownership | 108 |
| Section 6.3 | Due Authorization | 109 |
| Section 6.4 | No Conflict | 109 |
| Section 6.5 | Governmental Consents | 109 |
| Section 6.6 | Binding Obligation | 109 |
| Section 6.7 | Financial Statements | 109 |
| Section 6.8 | No Material Adverse Effect; No Default or Event of Default | 111 |
| Section 6.9 | Tax Matters | 111 |
| Section 6.10 | Properties | 111 |
| Section 6.11 | Environmental Matters | 112 |
| Section 6.12 | No Defaults | 112 |
| Section 6.13 | No Litigation or other Adverse Proceedings | 112 |
| Section 6.14 | Information Regarding Credit Parties, Subsidiaries and Other Regulated Entities | 112 |
| Section 6.15 | Governmental Regulation | 113 |
| Section 6.16 | Employee Matters | 114 |
| Section 6.17 | Pension Plans | 115 |
| Section 6.18 | Solvency | 115 |
| Section 6.19 | Compliance with Laws | 115 |
| Section 6.20 | Disclosure | 116 |
| Section 6.21 | Insurance | 116 |
| Section 6.22 | Pledge and Security Agreement | 116 |
| Section 6.23 | Mortgages | 117 |
| Section 6.24 | No Casualty | 117 |
| **Article 7 — AFFIRMATIVE COVENANTS** | **Article 7 — AFFIRMATIVE COVENANTS** | **117** |
| Section 7.1 | Financial Statements and Other Reports | 117 |
| Section 7.2 | Existence | 122 |
| Section 7.3 | Payment of Taxes and Claims | 122 |
| Section 7.4 | Maintenance of Properties | 122 |
| Section 7.5 | Insurance | 122 |
| Section 7.6 | Inspections | 123 |
| Section 7.7 | Lenders Meetings | 123 |
| Section 7.8 | Compliance with Laws and Material Contracts | 123 |
| Section 7.9 | Use of Proceeds | 123 |
| Section 7.10 | Environmental Matters | 124 |
| Section 7.11 | Additional Real Estate Assets | 124 |
| Section 7.12 | Pledge of Personal Property Assets | 125 |
| Section 7.13 | Books and Records | 127 |
| Section 7.14 | Additional Subsidiaries | 127 |
| Section 7.15 | Maintenance of Reinsurance | 127 |
| **Article 8 — NEGATIVE COVENANTS** | **Article 8 — NEGATIVE COVENANTS** | **127** |
| Section 8.1 | Indebtedness | 128 |
| Section 8.2 | Liens | 130 |
| Section 8.3 | No Further Negative Pledges | 132 |
| Section 8.4 | Restricted Payments | 132 |
| Section 8.5 | Burdensome Agreements | 133 |

---

ii

------

---

| | | |
|:---|:---|:---|
| Section 8.6 | Investments | 133 |
| Section 8.7 | Use of Proceeds | 135 |
| Section 8.8 | Financial Covenants | 136 |
| Section 8.9 | Fundamental Changes; Disposition of Assets; Acquisitions | 136 |
| Section 8.10 | Disposal of Subsidiary Interests | 137 |
| Section 8.11 | Sales and Lease-Backs | 137 |
| Section 8.12 | Transactions with Affiliates and Insiders | 138 |
| Section 8.13 | Modification or Payment of Certain Funded Debt | 138 |
| Section 8.14 | Conduct of Business | 139 |
| Section 8.15 | Fiscal Year | 139 |
| Section 8.16 | Amendments to Organizational Agreements / Material Agreements | 139 |
| Section 8.17 | Accounting and Reporting Changes | 140 |
| Section 8.18 | Statutory Capitalization / Risk-Based Capital Ratio | 140 |
| Section 8.19 | Holdco Restrictions | 140 |
| **Article 9 — EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS** | **Article 9 — EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS** | **141** |
| Section 9.1 | Events of Default | 141 |
| Section 9.2 | Remedies | 145 |
| Section 9.3 | Application of Funds | 146 |
| **Article 10 — AGENCY** | **Article 10 — AGENCY** | **149** |
| Section 10.1 | Appointment and Authority | 149 |
| Section 10.2 | Rights as a Lender | 149 |
| Section 10.3 | Exculpatory Provisions | 150 |
| Section 10.4 | Reliance by Administrative Agent | 151 |
| Section 10.5 | Delegation of Duties | 151 |
| Section 10.6 | Resignation of Administrative Agent | 151 |
| Section 10.7 | Non-Reliance on Administrative Agent and Other Lenders | 152 |
| Section 10.8 | No Other Duties, etc | 153 |
| Section 10.9 | Administrative Agent May File Proofs of Claim | 153 |
| Section 10.10 | Collateral and Guaranty Matters | 153 |
| Section 10.11 | Erroneous Payments | 155 |
| **Article 11 — MISCELLANEOUS** | **Article 11 — MISCELLANEOUS** | **158** |
| Section 11.1 | Notices; Effectiveness; Electronic Communications | 158 |
| Section 11.2 | Expenses; Indemnity; Damage Waiver | 159 |
| Section 11.3 | Set-Off | 162 |
| Section 11.4 | Amendments and Waivers | 162 |
| Section 11.5 | Successors and Assigns | 165 |
| Section 11.6 | Independence of Covenants | 170 |
| Section 11.7 | Survival of Representations, Warranties and Agreements | 170 |
| Section 11.8 | No Waiver; Remedies Cumulative | 170 |
| Section 11.9 | Marshalling; Payments Set Aside | 171 |
| Section 11.10 | Severability | 171 |
| Section 11.11 | Obligations Several; Independent Nature of Lenders' Rights | 171 |
| Section 11.12 | Headings | 171 |
| Section 11.13 | Applicable Laws | 171 |
| Section 11.14 | WAIVER OF JURY TRIAL | 172 |
| Section 11.15 | Confidentiality | 172 |
| Section 11.16 | Usury Savings Clause | 174 |
| Section 11.17 | Electronic Execution; Counterparts | 175 |

---

iii

------

---

| | | |
|:---|:---|:---|
| Section 11.18 | No Advisory or Fiduciary Relationship | 175.0 |
| Section 11.19 | Integration; Effectiveness | 176.0 |
| Section 11.20 | USA PATRIOT Act | 176.0 |
| Section 11.21 | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 176.0 |
| Section 11.22 | Certain ERISA Matters | 177.0 |
| Section 11.23 | Acknowledgment Regarding any Supported QFCs | 178.0 |
| Section 11.24 | Non-Business Day Performance | 178.0 |
| Section 11.25 | Amendment and Restatement; Waiver of Breakage Costs; Reallocation | 178.0 |

---

iv

------

---

| | |
|:---|:---|
| <u>Appendices</u>: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appendix A | Lenders, Commitments and Commitment Percentages |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appendix B | Notice Information |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appendix C | Existing Letters of Credit |
| <u>Schedules</u>: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 6.1 | Organization; Requisite Power and Authority; Qualification |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 6.2 | Equity Interests and Ownership |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 6.10(b) | Real Estate Assets |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 6.14 | Names, Jurisdictions and Tax Identification Numbers |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 6.21 | Insurance Coverage |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 8.1 | Existing Indebtedness |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 8.2 | Existing Liens |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 8.6 | Existing Investments |
| <u>Exhibits</u>: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 1.1 | [*Form of*] Secured Party Designation Notice |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 2.1 | [*Form of*] Funding Notice |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 2.3 | [*Form of*] Issuance Notice |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 2.5 | [*Form of*] Note |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 2.8 | [*Form of*] Conversion / Continuation Notice |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 3.3 | [*Forms of*] U.S. Tax Compliance Certificates (Forms 1 – 4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 7.1(c) | [*Form of*] Compliance Certificate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 7.14 | [*Form of*] Guarantor Joinder Agreement |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 11.5 | [*Form of*] Assignment Agreement |

---

v

------

**AMENDED AND RESTATED CREDIT AGREEMENT** 

This AMENDED AND RESTATED CREDIT AGREEMENT (as amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time, this "<u>*Agreement*</u>"), dated as of May 5, 2026 (the "*<u>Effective Date</u>*"), is entered into by and among SAFEPOINT HOLDINGS, INC., a Florida corporation (the "<u>*Borrower*</u>"), certain Subsidiaries of the Borrower from time to time party hereto, as Guarantors, the Lenders from time to time party hereto, and REGIONS BANK (together with its successors, "<u>*Regions*</u>"), in its capacities as the administrative agent (in such capacity, together with its successors and permitted assigns in such capacity, the "<u>*Administrative Agent*</u>") and the collateral agent (in such capacity, together with its successors and permitted assigns in such capacity, the "<u>*Collateral Agent*</u>") for such Lenders.

RECITALS

WHEREAS, senior secured credit facilities have been established in favor of the Borrower, as borrower under that certain Credit Agreement, dated as of February 18, 2025 (the "<u>*Original Closing* Date</u>"), by and among the Borrower, the guarantors from time to time party thereto, the lenders from time to time party thereto, and Regions, as administrative agent and collateral agent for such lenders (as amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time prior to the Effective Date, the "<u>*Existing* Credit Agreement</u>"), pursuant to which the lenders party to the Existing Credit Agreement as of the date that is immediately *prior* to the Effective Date (collectively, the "<u>*Existing Lenders*</u>") provided senior secured credit facilities in favor of the Borrower, comprised of (i) a Seventy-Five Million Dollar ($75,000,000) revolving credit facility in favor of the Borrower (the "<u>*Existing Revolving Facility*</u>"), (ii) a term loan (the "<u>*Existing Term Loan A*</u>"), advanced in a single installment on the Original Closing Date in an original principal amount of One-Hundred Million Dollars ($100,000,000), of which approximately Ninety Million Dollars ($90,000,000) in aggregate principal remains outstanding as of the Effective Date (immediately prior to giving effect to this Agreement), and (iii) a delayed draw term loan (the "<u>*Existing Delayed Draw Term Loan*</u>") advanced in multiple separate installments during the DDTL Availability Period (as such term is defined in the Existing Credit Agreement), in an aggregate committed original principal amount of up to One-Hundred Fifteen Million Dollars ($115,000,000) and of which approximately Twenty-Three Million One-Hundred Twenty-Five Thousand Dollars ($23,125,000) in aggregate principal (for all advances thereunder, taken together) remains outstanding as of the Effective Date (immediately *prior* to giving effect to this Agreement); and

WHEREAS, the Borrower has requested certain modifications to, and extensions of, the senior secured credit facilities evidenced by the Existing Credit Agreement, and in particular, that the Lenders: (a) provide, in its favor, a new Two-Hundred Million Dollar ($200,000,000) revolving credit facility in replacement of the Existing Revolving Facility, which new revolving credit facility (i) may (the same as for Existing Revolving Facility) be utilized in full for the issuance of standby letters of credit, and (ii) includes a Fifteen Million Dollar ($15,000,000) swingline sub-facility; (b) make a new term loan to the Borrower, to be advanced in full in a single installment on the Effective Date, in an aggregate original principal amount of Two-Hundred Million Dollars ($200,000,000), the proceeds of which will be used, in part, on the Effective Date refinance, in full, the aggregate outstanding principal balances under the Existing Term Loan A and the Existing Delayed Draw Term Loan; and (c) establish a new committed delayed draw term loan facility in replacement of the commitments under the Existing Credit Agreement in respect of the Existing Delayed Draw Term Loan, to be advanced (at the request of the Borrower) in up to eight (8) separate installments during the DDTL Availability Period (here and hereafter as such term is defined in <u>Section</u> <u>1.1</u>), in an aggregate committed original principal amount (for all advances thereunder, taken together) of up to Two-Hundred Million Dollars ($200,000,000); and

Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

WHEREAS, in each case upon the terms, and subject to the conditions, set forth in this Agreement: (a) the Lenders, the Issuing Bank and the Swingline Lender, to the extent of their respective Revolving Commitments (here and hereafter as such term is defined in <u>Section</u> <u>1.1</u>), are willing severally to provide the requested new revolving credit facility (including the related swingline sub-facility) in favor of the Borrower; (b) the Lenders, to the extent of their respective Term Loan A Commitments (here and hereafter as such term is defined in <u>Section</u> <u>1.1</u>), are willing severally to make the requested new single advance term loan to the Borrower on the Effective Date; (c) the Lenders, to the extent of their respective DDTL Commitments (here and hereafter as such term is defined in <u>Section</u> <u>1.1</u>), are willing severally to make the requested new delayed draw term loan facility available to the Borrower; and (d) the Lenders, the Agents, the Issuing Bank and the Swingline Lender have agreed to the other requested modifications to the senior secured credit facilities evidenced by the Existing Credit Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements contained herein, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, each of the parties to this Agreement hereby covenant and agree as follows:

AGREEMENT

**Article 1** 

**<u>DEFINITIONS AND INTERPRETATION</u>** 

Section 1.1 <u>Definitions</u>. The following terms used herein, including in the introductory paragraph, recitals, appendices, exhibits and schedules hereto, shall have the following meanings:

"<u>*Acquisition*</u>" shall mean, with respect to any Person, the acquisition by such Person, in a single transaction or in a series of related transactions, of: (a) all, or any substantial portion, of the Property of another Person, or any division, line of business or other business unit of another Person; or (b) *at least* a majority of the Voting Stock of another Person, in each case, whether or not involving a merger or consolidation with such other Person and whether for cash, property, services, assumption of Indebtedness, securities or otherwise.

"*<u>Additional Incremental Lender</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.1(d)(i)(D</u>).

"<u>*Administrative Agent*</u>" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"<u>*Administrative Questionnaire*</u>" shall mean an administrative questionnaire provided by the Lenders in a form supplied by the Administrative Agent.

"<u>*Adverse Proceeding*</u>" shall mean any action, suit, proceeding (whether administrative, judicial or otherwise), governmental investigation or arbitration (whether or not purportedly on behalf of any Credit Party, any Subsidiary or any other Regulated Entity) at law or in equity, or before or by any Governmental Authority, whether pending, threatened in writing against any Credit Party, any Subsidiary or any other Regulated Entity or any material Property of any Credit Party, any Subsidiary or any other Regulated Entity.

------

"<u>*Affected Financial Institution*</u>" shall mean: (a) any EEA Financial Institution; or (b) any UK Financial Institution.

"*<u>Affected Lender</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.1(b</u>).

"*<u>Affected Loans</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.1(b</u>).

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

"<u>*Agent*</u>" shall mean, collectively, the Administrative Agent and the Collateral Agent.

"<u>*Aggregate DDTL Commitment Amount*</u>" shall mean, at any time, the amount of the Aggregate DDTL Commitments in effect at such time. On the Effective Date as of the time of initial effectiveness of this Agreement, the Aggregate DDTL Commitment Amount is Two-Hundred Million Dollars ($200,000,000).

"<u>*Aggregate DDTL Commitments*</u>" shall mean, at any time, the DDTL Commitments of all of the Lenders in effect at such time, taken together.

"<u>*Aggregate Revolving Commitment Amount*</u>" shall mean, at any time, the amount of the Aggregate Revolving Commitments in effect at such time. On the Effective Date as of the time of initial effectiveness of this Agreement, the Aggregate Revolving Commitment Amount is Two-Hundred Million Dollars ($200,000,000).

"<u>*Aggregate Revolving Commitments*</u>" shall mean, at any time, the Revolving Commitments of all of the Lenders in effect at such time, taken together.

"<u>*Aggregate Revolving Credit Exposure*</u>" shall mean, at any time, the sum of the Revolving Credit Exposures of all of the Lenders at such time, taken together.

"<u>*Aggregate Term Loan A Commitment Amount*</u>" shall mean, at any time, the amount of the Aggregate Term Loan A Commitments in effect at such time. On the Effective Date as of the time of initial effectiveness of this Agreement (but prior to giving effect to the Borrowing of the Term Loan A on the Effective Date), the Aggregate Term Loan A Commitment Amount is Two-Hundred Million Dollars ($200,000,000).

"<u>*Aggregate Term Loan A Commitments*</u>" shall mean, at any time, the Term Loan A Commitments of all of the Lenders in effect at such time, taken together.

"<u>*Agreement*</u>" shall have the meaning specified for such term in the introductory paragraph of this Agreement.

"<u>*All-In Yield*</u>" shall mean, as to any Indebtedness, the yield thereof (without giving effect to any underlying fluctuations in the underlying base rate), whether in the form of interest rate, margin, original issue discount, upfront fees, a SOFR or Base Rate floor (or any floor on any SOFR-Based Rate or any other interest rate that is derived from SOFR, the SOFR Reference Rate for an applicable tenor or the Base Rate), or otherwise, in each case of the foregoing, incurred or payable by the Borrower generally to all of the lenders of such Indebtedness; <u>provided</u>, <u>that</u>, (i) original issue discount and upfront fees shall be equated to interest rate assuming a four (4) year life to maturity (or, if less, the stated life to maturity at

------

the time of incurrence of the applicable Indebtedness), (ii) "*All-In Yield*" shall not include customary arrangement fees, structuring fees, commitment fees, underwriting fees, amendment fees and similar fees (regardless of whether paid, in whole or in part, to any or all of lenders of such Indebtedness), or other fees *not* paid generally to all lenders of such Indebtedness, and (iii) if such Indebtedness includes a SOFR or Base Rate floor (or any floor on any SOFR-Based Rate or any other interest rate that is derived from SOFR, the SOFR Reference Rate for an applicable tenor, or the Base Rate) that is *greater than* the SOFR or Base Rate floor (or any floor on any SOFR-Based Rate or any other interest rate that is derived from SOFR, the SOFR Reference Rate for an applicable tenor, or the Base Rate) applicable to any existing Class of Term Loans, such differential between interest rate floors shall be included in the calculation of All-In Yield, but only to the extent that an increase in the interest rate floor applicable to such existing Class of Term Loans would cause an increase in the interest rate then in effect thereunder, and in such case, the interest rate floor (but *not* the Applicable Margin) applicable to such existing Class of Term Loans shall be increased to the extent of such differential between interest rate floors.

"<u>*ALTA*</u>" shall mean the American Land Title Association.

"<u>*Annual Financial Statements*</u>" shall have the meaning specified for such term in <u>Section</u> <u>5.1(f)(ii</u>).

"<u>*Anti-Corruption Laws*</u>" shall mean the Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd–1, et seq., the UK Bribery Act of 2010, and all other laws, rules, and regulations of any jurisdiction applicable to any Credit Party or any of its Affiliates from time to time concerning or relating to bribery or corruption.

"<u>Applicable Laws</u>" shall mean all applicable laws, including all applicable provisions of constitutions, statutes, rules, ordinances, regulations and orders of all Governmental Authorities and all orders, rulings, writs and decrees of all courts, tribunals and arbitrators.

"<u>*Applicable Margin*</u>" shall mean, except as otherwise set forth in (A) any Incremental Facility Agreement with respect to any Incremental Term Loan established thereunder, or (B) any Auto Borrow Agreement with respect to any Swingline Loan advanced pursuant to an Auto Borrow Agreement then in effect, as of any date of determination, (a) during the period from the Effective Date through, and including, the date that is two (2) Business Days immediately following the date on which the financial statements and related Compliance Certificate are delivered to the Administrative Agent pursuant to <u>Section 7.1(a)</u> and <u>Section 7.1(c)</u>, respectively, for the Fiscal Quarter ending September 30, 2026, the applicable percentage per annum based upon Pricing Level II as set forth in the table immediately below, and (b) thereafter, the applicable percentage per annum determined by reference to the table set forth immediately below, using the Consolidated Leverage Ratio as set forth in the Compliance Certificate most recently delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(c</u>), with any increase or decrease in the Applicable Margin resulting from a change in the Consolidated Leverage Ratio becoming effective on the date that is two (2) Business Days immediately following the date on which such Compliance Certificate is delivered.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Pricing**<br> **Level** | **Consolidated**<br> **Leverage Ratio** | **SOFR Loans and Letter of<br>Credit Fee** | **Base Rate Loans** | **Commitment Fee** |  |  |  |  |  |
| I | < 1.25 to 1 | 3.00% | 2.00% | 0.400% |  |  |  |  |  |
| II | ≥ 1.25 to 1.0, *but*<br> < 1.75 to 1.0 | 3.25% | 2.25% | 0.400% |  |  |  |  |  |
| II | ≥ 1.25 to 1.0, *but*<br> < 1.75 to 1.0 | 3.25% | 2.25% | 0.400% | III | ≥ 1.75 to 1.0, *but*<br> < 2.25 to 1.0 | 3.50% | 2.50% | 0.450% |
| III | ≥ 1.75 to 1.0, *but*<br> < 2.25 to 1.0 | 3.50% | 2.50% | 0.450% |  |  |  |  |  |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| IV | ≥ 2.25 to 1 | 3.75% | 2.75% | 0.500% |

---

Notwithstanding anything to the contrary in the foregoing: (i) if, at any time, a Compliance Certificate and/or the accompanying financial statements are not delivered when due in accordance herewith, then Pricing Level IV as set forth in the table immediately above shall apply as of the first (1<sup>st</sup>) Business Day after the date on which such Compliance Certificate and accompanying financial statements were required to have been delivered to the Administrative Agent pursuant to <u>Section 7.1(a)</u> and <u>Section 7.1(c),</u> respectively, and such Pricing Level shall remain in effect until the date on which such Compliance Certificate and such accompanying financial statements are delivered to the Administrative Agent; and (ii) the determination of the Applicable Margin for any period shall be subject to the provisions of <u>Section</u> <u>2.7(e</u>). The Applicable Margin with respect to any Incremental Term Loan shall be as provided in the Incremental Facility Agreement establishing such Incremental Term Loan.

"<u>*Approved Fund*</u>" shall mean any Fund that is administered or managed by: (a) a Lender; (b) an Affiliate of a Lender; or (c) an entity, or an Affiliate of an entity, that administers or manages a Lender.

"<u>*Arrangers*</u>" shall mean each of RCM, Bank OZK, Flagstar Bank, N.A., The Huntington National Bank, KeyBank National Association, Pinnacle Bank (d/b/a Synovus Bank) and TCBI Securities, Inc., each in their respective capacities as joint lead arranger and joint bookrunner under this Agreement.

"<u>*Asset Sale*</u>" shall mean a sale, lease, Sale and Leaseback Transaction, assignment, conveyance, exclusive license (as licensor), Securitization Transaction, transfer or other disposition to, or any exchange of Property with, any Person, in one transaction or a series of transactions, of any Credit Party, any Subsidiary or any other Regulated Entity or of all, or any part, of any of their respective businesses or Properties of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, created, leased or licensed, including the Equity Interests in any Subsidiary, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) dispositions of surplus, obsolete or worn-out Property, or Property no longer used or useful in the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity, whether now owned or hereafter acquired, in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) dispositions of inventory sold, and Intellectual Property licensed, in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) dispositions of accounts or payment intangibles (each as defined in the UCC) resulting from the compromise or settlement thereof in the ordinary course of business for *less than* the full amount thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) dispositions of cash and Cash Equivalents in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) licenses, sublicenses, leases or subleases granted to any third parties in arm's-length commercial transactions in the ordinary course of business that do *not* interfere, in any material respect, with the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) dispositions of Property held by Regulated Entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the termination or surrender of any real property lease of any Credit Party, any Subsidiary or any other Regulated Entity in the ordinary course of business, so long as the loss of such leased location could *not* be reasonably expected to have an adverse and material effect on any of the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the abandonment or other disposition of Intellectual Property, whether now or hereafter owned or leased or acquired in connection with an Acquisition or other permitted Investment, that is, in the reasonable business judgment of the Borrower, no longer economically practicable or commercially desirable to maintain or used or useful in the respective businesses of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any issuance of Equity Interests in the Borrower (including, without limitation, pursuant to a Qualifying IPO);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) to the extent constituting a sale, transfer, lease, or other disposition of an asset, any Restricted Payment made pursuant to <u>Section</u> <u>8.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) sales, transfers, or other dispositions of Investments to the extent permitted under <u>Section</u> <u>8.6</u> in joint ventures to the extent required by, or made pursuant to customary buy/sell arrangements between, the parties set forth in joint venture arrangements and similar binding agreements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) dispositions of Property to the extent that: (i) such Property is exchanged for credit against the purchase price of substantially similar replacement Property; or (ii) the proceeds of such disposition are promptly applied to the purchase price of substantially similar replacement Property.

"<u>*Assignment Agreement*</u>" shall mean an assignment agreement entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by <u>Section</u> <u>11.5(b)(iii</u>)) and accepted by the Administrative Agent, in substantially the form of <u>Exhibit 11.5</u> or any other form (including electronic documentation generated by MarkitClear or other electronic platform) approved by the Administrative Agent.

"<u>*Attributable Principal Amount*</u>" shall mean, in the case of: (a) Capital Leases, the amount of Capital Lease obligations determined in accordance with GAAP; (b) Synthetic Leases, an amount determined by capitalization of the remaining lease payments thereunder as if it were a Capital Lease determined in accordance with GAAP; (c) Securitization Transactions, the outstanding principal amount of such financing, after taking into account reserve amounts and making appropriate adjustments, determined by the Administrative Agent in its reasonable judgment; and (d) Sale and Leaseback Transactions, the present value (discounted in accordance with GAAP at the debt rate implied in the applicable lease) of the obligations of the lessee for rental payments during the term of such lease.

"<u>*Authorized Officer*</u>" shall mean, as applied to any Person, any individual holding the position of chairman of the board (if an officer), chief executive officer, president or one (1) of its vice presidents (or the equivalent thereof), chief financial officer or treasurer and, *solely* for purposes of making the certifications required under <u>Section 5.1(b)(ii)</u> and <u>Section 5.1(c)</u>, any secretary or assistant secretary.

"*<u>Auto Borrow Agreement</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.2(b)(vi</u>).

"*<u>Automatic Acceleration Event of Default</u>*" shall mean an Event of Default pursuant to <u>Section 9.1(f)</u> or <u>Section 9.1(g)</u>.

"<u>*Available Tenor*</u>" shall mean, as of any date of determination and with respect to the then-current Benchmark, as applicable, any tenor for such Benchmark or any payment period for interest calculated with reference to such Benchmark, as applicable, that is, or may be, used for determining the length of any interest period (including any Interest Period) pursuant to this Agreement as of such date of determination.

------

"<u>*Bail-In Action*</u>" shall mean the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"<u>*Bail-In Legislation*</u>" shall mean: (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing Law for such EEA Member Country from time to time which is described in the applicable EU Bail-In Legislation Schedule; and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act of 2009 (as amended from time to time), and any other Law applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions, or any affiliates of any of the foregoing (other than through liquidation, administration, or other insolvency proceedings).

"<u>*Bankruptcy Code*</u>" shall mean Title 11 of the United States Code entitled "*Bankruptcy*," as now and hereafter in effect, or any successor statute.

"<u>*Base Rate*</u>" shall mean, for any date of determination, a rate per annum equal to the *highest* of (a) the rate of interest that Regions announces from time to time as its prime lending rate, as in effect from time to time (the "<u>*Prime Rate*</u>"), (b) the Federal Funds Rate, as in effect from time to time, *plus* one-half of one percent (0.50%) per annum, (c) Term SOFR in effect on such day for a forward-looking Interest Period of one (1) month commencing on such day, *plus* one percent (1.00%) per annum (with any change(s) in any of the rates described in the foregoing <u>clauses (a)</u> through <u>(c)</u> to be effective as of the date of any such change(s) in such rates), and (d) the Floor. The Prime Rate is a reference rate and does *not* necessarily represent the lowest or best rate actually charged to any customer. The Administrative Agent and the Lenders may make commercial loans, or other loans, at rates of interest at, above, or below the Prime Rate. Any change(s) to the Base Rate due to a change in the Prime Rate, the Federal Funds Rate and/or Term SOFR, as the case may be, will be deemed to be effective from, and including, the date of effectiveness of such change(s) to the Prime Rate, the Federal Funds Rate and/or Term SOFR. For the avoidance of doubt and notwithstanding anything to the contrary in the foregoing, if, at any time, the Base Rate is less than the Floor, *then* the Base Rate shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents.

"<u>*Base Rate Borrowing*</u>" shall mean a Borrowing, the Loans in respect of which bear interest at a rate determined by reference to the Base Rate (including, for the avoidance of doubt, pursuant to clause (c) of the definition of "Base Rate" above).

"<u>*Base Rate Loan*</u>" shall mean a Loan bearing interest at a rate determined by reference to the Base Rate (including, for the avoidance of doubt, pursuant to clause (c) of the definition of "*Base Rate*" above).

"<u>*Benchmark*</u>" shall mean, as of the Effective Date, the SOFR Reference Rate for any applicable tenor; <u>provided</u>, <u>that</u>, if any Benchmark Replacement has been incorporated into this Agreement after the Effective Date pursuant to <u>Section</u> <u>3.1</u>, then "*Benchmark*" shall mean the applicable Benchmark Replacement.

"<u>*Benchmark Illegality* / *Impracticability Event*</u>" shall mean the occurrence of one (1) or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the making, maintaining and/or continuation of the then-current Benchmark by any Lender shall have become unlawful as a result of compliance by such Lender in good faith with any law, treaty, governmental rule, regulation, guideline or order (or would conflict with any

------

such treaty, governmental rule, regulation, guideline or order *not* having the force of law, even though the failure to comply therewith would *not* be unlawful);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any Benchmark, any successor administrator of the published screen rate for such Benchmark, or any Governmental Authority having jurisdiction over the Administrative Agent or the administrator of such Benchmark, shall have made a public statement establishing a specific date (whether expressly or by virtue of such public statement) after which an Available Tenor of such Benchmark, or the published screen rate for such Benchmark, shall or will no longer be representative or made available, or otherwise used for determining the interest rate of loans, or shall or will otherwise cease; <u>provided</u>, <u>that</u>, at the time of such statement, there is no successor administrator that is satisfactory to the Administrative Agent that will continue to provide such representative interest periods of such Benchmark after such specific date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the making, maintaining and/or continuation of the then-current Benchmark by any Lender has become impracticable, as a result of contingencies occurring after the Effective Date that materially and adversely affect the ability of a Lender to make, maintain and/or continue its Loans at the then-current Benchmark (including, without limitation, because the published screen rate for such Benchmark in a relevant tenor is *not* available or published on a current basis and such circumstances are unlikely to be temporary); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) with respect to any Lender, the then-current Benchmark (including any related mathematical or other adjustments thereto) does or will *not* adequately and fairly reflect the cost to such Lender of making, funding and/or maintaining its Loans at the then-current Benchmark.

For the avoidance of doubt, a "Benchmark Illegality / Impracticability Event" shall be deemed to have occurred, with respect to any Benchmark, if a public statement or publication of information as described above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"<u>*Benchmark Replacement*</u>" shall mean Daily Simple SOFR for any payment period for interest calculated that can be determined by the Administrative Agent, without any amendment to, or further action or consent of any other party to, this Agreement or any other Credit Document.

"<u>*Benchmark Replacement Adjustment*</u>" shall mean, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or equal to zero), that has been selected by the Administrative Agent and the Borrower, giving due consideration to: (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body; or (b) any evolving, or then-prevailing, market convention for determining a spread adjustment, or a method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

"*<u>Benchmark Replacement Date</u>*" shall have the meaning specified for such term in <u>Section</u> <u>3.1(g)(i</u>).

"<u>*Beneficial Ownership Certification*</u>" shall have the meaning specified for such term in <u>Section</u> <u>5.1(k</u>).

------

"<u>*Benefit Plan*</u>" shall mean any of: (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA; (b) a "plan" as defined in, and subject to, Section 4975 of the Internal Revenue Code; or (c) any Person whose assets include (for purposes of ERISA Section 3(42), or otherwise for purposes of Title I of ERISA or Section 4975 of the Internal Revenue Code) the assets of any such "employee benefit plan" or "plan".

"<u>*BHC Act Affiliate*</u>" of a party shall mean an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. § 1841(k)) of such party.

"<u>*Borrower*</u>" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"<u>*Borrowing*</u>" shall mean, as the context may require, a borrowing consisting of: (a) Loans of the same Class and Type, made, converted or continued on the same date, and, in the case of SOFR Loans, as to which a single Interest Period is in effect; or (b) a Swingline Loan.

"<u>*Business Day*</u>" shall mean any day, other than a Saturday, a Sunday, or any other day that is a legal holiday under the laws of the state of New York or is a day on which banking institutions located in such state are authorized, or are required by Applicable Law or any Governmental Act, to close; <u>provided</u>, <u>that</u>, with respect to notices and determinations in connection with, and payments of principal and/or interest on, SOFR Loans, such day is also a U.S. Government Securities Business Day.

"<u>*Capital Expenditures*</u>" shall mean, with respect to any Person for any period of measurement, the *sum of* (without duplication) (a) the additions to property, plant and equipment and other capital expenditures of such Person that are (or would be required to be) set forth on a consolidated statement of cash flows of such Person for such period, prepared in accordance with GAAP, *plus* (b) the Attributable Principal Amount of Capital Leases incurred by such Person during such period, but *excluding* any such expenditures to the extent that such expenditures are: (i) made with the Net Cash Proceeds of any Asset Sale or Involuntary Disposition to the extent that such expenditures are used to purchase Property that is the same as, or substantially functionally equivalent to, the Property subject to such Asset Sale or Involuntary Disposition (and including, for purposes of clarity, the purchase price of replacement Property that is purchased, to the extent that the gross amount of such purchase price is reduced by the credit granted by the seller of such replacement Property for such existing Property being traded in at such time); or (ii) part of the aggregate amounts payable in connection with, or constitute other consideration for, any Permitted Acquisition or other Investment permitted under this Agreement (whether consummated during, or prior to, such period of measurement).

"<u>*Capital Lease*</u>" shall mean, as applied to any Person, any lease of any Property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person.

"<u>*Captive Reinsurance Companies*</u>" shall mean, collectively: (a) each of (i) Bobcat Re Ltd., (ii) Canal Re Ltd., (iii) Pompano Re Ltd., and (iv) Tarpon Ltd.; and (b) any controlled Affiliate of any Credit Party that is primarily engaged in the provision of insurance and/or reinsurance services to other Credit Parties, Subsidiaries and/or Regulated Entities.

"<u>*Cash Collateralize*</u>" shall mean to pledge and deposit with, or deliver to, the Administrative Agent, the Collateral Agent, the Issuing Bank or the Swingline Lender, as applicable, as collateral for the Letter of Credit Obligations or Swingline Loans, as applicable, or obligations of Lenders to fund participations in respect thereof, cash or deposit account balances or, if the Administrative Agent, the Collateral Agent, the Issuing Bank or Swingline Lender, as applicable, may agree in their sole discretion,

------

other credit support, in each case, pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent, the Collateral Agent, the Issuing Bank and/or the Swingline Lender, as applicable. "*Cash Collateral*" shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.

"<u>*Cash Equivalents*</u>" shall mean, as of any date of determination, any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) marketable securities (i) issued or directly and unconditionally guaranteed as to interest and principal by the United States government, or (ii) issued by any agency of the United States the obligations of which are backed by the full faith and credit of the United States, in each case of the foregoing <u>clauses (a)(i)</u> and <u>(a)(ii)</u>, maturing within one (1) year after such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) marketable direct obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof, in each case, maturing within one (1) year after such date and having, at the time of the acquisition thereof, a rating of *at least* A–1 from S&P or *at least* P–1 from Moody's;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) commercial paper maturing *no more than* one (1) year from the date of creation thereof and having, at the time of the acquisition thereof, a rating of *at least* A–1 from S&P or *at least* P–1 from Moody's;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) certificates of deposit or bankers' acceptances maturing within one (1) year after such date and issued or accepted by any Lender or by any commercial bank organized under the laws of the United States, or of any state thereof or the District of Columbia, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *is at least* "adequately capitalized" (as defined in the regulations of its primary federal banking regulator); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has Tier 1 capital (as defined in such regulations) of *not less than* One-Hundred Million Dollars ($100,000,000); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) shares of any money market mutual fund that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) has substantially all of its assets invested continuously in the types of investments referred to in <u>clauses (a)</u> and <u>(b)</u> above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has net assets of *not less than* Five-Hundred Million Dollars ($500,000,000); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) has the highest rating obtainable from either S&P or Moody's.

"<u>*CFC*</u>" shall mean a "controlled foreign corporation" within the meaning of Section 957 of the Code.

"<u>*Change in Control*</u>" shall mean the occurrence of one (1) or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at any time *prior* to the consummation of a Qualifying IPO:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Permitted Holders, taken together, shall cease to own and control, beneficially and of record, directly or indirectly, *at least* thirty-seven percent (37.0%) of the outstanding Voting Stock in the Borrower; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) David Flitman, an individual resident of the state of Florida, shall cease to be the duly appointed, acting chief executive officer of the Borrower, and no interim or permanent successor reasonably acceptable to the Administrative Agent shall be appointed within ninety (90) calendar days after such cessation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the acquisition of ownership, directly or indirectly, beneficially or of record, by any "person" or "group" (within the meaning of the Exchange Act as in effect on the Effective Date), other than the Permitted Holders, of thirty percent (30.0%) or more of the outstanding Voting Stock in the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at any time *after* the consummation of a Qualifying IPO:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any "person" or "group" (within the meaning of the Exchange Act as in effect on the Effective Date) other than (x) the Permitted Holders, and (y) any underwriter in connection with such Qualifying IPO *solely* for the purposes of facilitating the distribution of Equity Interests in the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) is or shall become the "beneficial owner" (as defined in Rules 13d–3 and 13d–5 under the Exchange Act as in effect on the Effective Date), directly or indirectly, of thirty percent (30.0%) or more of the outstanding Voting Stock in the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) has obtained the power (whether or *not* exercised) to elect a majority of the members of the board of directors or other equivalent governing body of the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) during any period of twenty-four (24) consecutive calendar months, a majority of the members of the board of directors or other equivalent governing body of any Credit Party cease to be composed of individuals: (A) who were members of that board or other equivalent governing body on the Effective Date; (B) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in <u>clause (b)(ii)(A</u>) above constituting, at the time of such election or nomination, *at least* a majority of that board or other equivalent governing body; or (C) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in <u>clauses (b)(ii)(A)</u> and <u>(b)(ii)(B)</u> above constituting, at the time of such election or nomination, at least a majority of that board or other equivalent governing body; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) except pursuant to a transaction that is expressly permitted under this Agreement and the other Credit Documents, the Borrower shall cease to possess the right to elect (through contract, ownership of Voting Stock, or otherwise), at all times, a majority of the board of directors or managers (or equivalent governing body) of each of its Subsidiaries and/or to direct the management policies and decisions of each such Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) except pursuant to a transaction that is expressly permitted under this Agreement and the other Credit Documents, any Person that, on the Effective Date is or at any time thereafter becomes: (i) a Captive Reinsurance Company shall thereafter cease to qualify as a *Captive Reinsurance Company* under the criteria set forth in clause (b) of the definition of "*Captive Reinsurance Company*" above; or (ii) a Qualifying Reciprocal Entity shall thereafter cease to qualify as a Qualifying Reciprocal Entity under the criteria set forth in clause (b) of the definition of "*Qualifying Reciprocal Entity*" below; or (iii) a Regulated Subsidiary (other than a Captive Reinsurance Company) shall thereafter cease to qualify as a Regulated Subsidiary (other than a Captive Reinsurance Company) under the criteria set forth in clause (b) of the definition of "*Regulated Subsidiary*" below.

------

"<u>*Change in Law*</u>" shall mean the occurrence, after the Effective Date, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty, or in the administration, interpretation, implementation or application thereof, by any Governmental Authority, or (c) the making or issuance of any request, rule, guideline or directive (whether or *not* having the force of law) by any Governmental Authority; <u>provided</u>, <u>that</u>, notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith, (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, and (iii) all requests, rules, guidelines or directives issued by a Governmental Authority in connection with a Lender's submission or re-submission of a capital plan under 12 C.F.R. § 225.8 or a Governmental Authority's assessment thereof shall, in each case, be deemed to be a "*Change in Law*", regardless of the date enacted, adopted or issued.

"<u>*Class*</u>", when used in reference to any Loan or Borrowing, shall refer to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Swingline Loans, the Term Loan A, the Delayed Draw Term Loan, or a specified Incremental Term Loan, and, when used in reference to any Commitment, refers to whether such Commitment is a Revolving Commitment, a Swingline Commitment, a Term Loan A Commitment, a DDTL Commitment, or an Incremental Term Loan Commitment in respect of a specified Incremental Term Loan.

"<u>*Collateral*</u>" shall mean the collateral identified in, and at any time covered by, the Collateral Documents.

"<u>*Collateral Agent*</u>" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"<u>*Collateral Documents*</u>" shall mean, collectively, the Security Agreement, the Mortgages, and all other instruments, documents and/or agreements delivered by any Credit Party pursuant to this Agreement or any of the other Credit Documents in order to grant to the Collateral Agent, for the benefit of the holders of the Obligations, a Lien on any real, personal or mixed Property of any Credit Party as security for the Obligations.

"<u>*Combined Statutory Surplus*</u>" shall mean, as of any date of determination, the aggregate Statutory Surplus of all of the Regulated Entities that are *not* Captive Reinsurance Companies, taken together on a combined basis.

"*<u>Commitment Fee</u>*" shall have the meaning specified for such term in <u>Section 2.10(a</u>).

"<u>Commitment Percentage</u>" shall mean, for each Lender and with respect to: (a) any Revolving Loans (or any Borrowing thereof) or any Swingline Loans (or any Borrowing thereof), such Lender's Revolving Commitment Percentage; (b) the Term Loan A (or any Borrowing thereof), such Lender's Term Loan A Commitment Percentage; (c) the Delayed Draw Term Loan (or any Borrowing of an advance thereunder), such Lender's DDTL Commitment Percentage; and (d) any Incremental Term Loan (or any Borrowing thereof or thereunder), such Lender's Incremental Term Loan Commitment Percentage in respect of such Incremental Term Loan.

"<u>*Commitments*</u>" shall mean, collectively, the Revolving Commitments, the Term Loan A Commitments, the DDTL Commitments, and any Incremental Term Loan Commitments.

------

"<u>*Commodity Exchange Act*</u>" shall mean the Commodity Exchange Act (7 U.S.C. § 1 *et seq.*), as amended.

"<u>*Competitor*</u>" shall mean any competitor of any Credit Party, Subsidiary or other Regulated Entity that is in the same or a similar line of business as any Credit Party, Subsidiary or other Regulated Entity.

"<u>*Compliance Certificate*</u>" shall mean a Compliance Certificate substantially in the form of <u>Exhibit 7.1(c</u>).

"<u>*Conforming Changes*</u>" shall mean, with respect to (a) the use and/or administration of, and/or any conventions associated with, SOFR, the SOFR Reference Rate for any applicable tenor and/or any SOFR-Based Rate (for any Interest Period, as applicable), or (b) the use, administration, adoption and/or implementation of, and/or any conventions associated with, any Benchmark Replacement, in each case of the foregoing <u>clauses (a)</u> and <u>(b)</u>, any technical, administrative and/or operational change(s) (including, without limitation, any such change(s) to the definition of "*Base Rate*" above, the definition of "*Business Day*" above, the definition of "*Daily Simple* SOFR" below, the definition of "*Interest Period*" below (or any similar or analogous definition, or the addition of an applicable concept of "interest period"), the definition of "*SOFR*" below, the definition of "*SOFR Reference Rate*" below, the definition of "*Term SOFR*" below, the definition of "U.S. Government Securities Business Day" below, the timing and frequency of determining rates and making payments of interest, the timing of delivery of any Funding Notices (or other requests for borrowing of Loans), the timing of delivery of any notices of optional reduction or termination of any Commitment(s), the timing of delivery of any notices of optional or voluntary prepayment of any Loans (or any other notices of prepayment of any Loans), the timing of delivery of any Conversion / Continuation Notices (or other notices of the continuation or conversion of Loans), the applicability and length of lookback periods, the applicability of <u>Section</u> <u>3.1(c</u>), and any other technical, administrative and/or operational matters) that the Administrative Agent determines, in its reasonable discretion, may be appropriate to reflect the adoption and/or implementation of any such rate and/or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent determines, in its reasonable discretion, that (i) the adoption and/or implementation of, or of any portion of, such market practice is not administratively feasible for the Administrative Agent, or (ii) no market practice for the administration of any such rate exists, then, in each case of the foregoing <u>clauses (i)</u> and <u>(ii)</u>, permit the use and administration thereof by the Administrative Agent in such other manner of administration as the Administrative Agent determines is reasonably necessary in connection with the administration of this Agreement and the other Credit Documents).

"<u>*Connection Income Taxes*</u>" shall mean Other Connection Taxes that are imposed on, or measured by, net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"<u>*Consolidated EBITDA*</u>" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, an amount equal to the *sum of*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Consolidated Net Income (*exclusive*, for purposes of clarity, of Regulated Entities) for such period; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the following, in each case, *solely* to the extent deducted in calculating such Consolidated Net Income (and without duplication):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Consolidated Interest Charges for such period; *plus*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the provision for federal, state, local and foreign income taxes payable by the Credit Parties and Subsidiaries (other than Regulated Entities) for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) depreciation and amortization expense for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) non-cash stock compensation issued for such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) out-of-pocket fees, costs and expenses payable, or otherwise incurred, in cash during such period in connection with the closing of this Agreement and the other Credit Documents; <u>provided</u>, <u>that</u>, such fees, costs and expenses are payable or otherwise incurred *prior* to the date that is three (3) months after the Effective Date; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the aggregate amount of managing general agency, service company or attorney-in-fact fees that are due and owing, or that have already been paid, by any Regulated Entity, on the one hand, to any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the other hand, pursuant to any managing general agent, service company or attorney-in-fact agreement entered into between any Credit Party or Subsidiary (other than any Regulated Subsidiary) and any Regulated Entity, but which have been waived during such period in accordance with this Agreement by the applicable Credit Party or Subsidiary (other than a Regulated Subsidiary) to whom such fees would have been, or, in the case of any such fees that have already been paid and are subsequently so waived, have been, paid, in each case of the foregoing of this <u>clause (b)(vi</u>), to the extent supported (so long as any such documentation is readily available to, or preparable by, the Credit Parties, Subsidiaries and other Regulated Entities) by documentation provided, and reasonably acceptable, to the Administrative Agent; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) other non-cash charges and non-cash expenses reducing such Consolidated Net Income for such period, including any write-offs or write-downs (but *excluding* any such non-cash charge or non-cash expense to the extent that such non-cash charge or non-cash expense (A) represents an accrual of, or reserve for, cash charges or cash expenses in any future period, or amortization of a prepaid cash expense or cash charge that was paid in a prior period but not included in the calculation of Consolidated EBITDA for such prior period, or (B) is an expense or charge related to accounts receivable or other current assets); *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) reasonable and documented costs, fees and out-of-pocket expenses associated with a Qualifying IPO and payable, or otherwise incurred, in cash; <u>provided, that</u>, all such costs, fees and expenses added back pursuant to this <u>clause (b)(viii</u>) that are associated with a Qualifying IPO that is not consummated shall not exceed One Million Dollars ($1,000,000) in the aggregate; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all non-cash items increasing such Consolidated Net Income (but *excluding* any items that represent the reversal of an accrual of, or reserve for, anticipated cash charges or cash expenses that reduced Consolidated EBITDA in any prior period).

"<u>*Consolidated Fixed Charge Coverage Ratio*</u>" shall mean, as of any date of determination, the ratio of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Consolidated EBITDA; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Consolidated Unfinanced Capital Expenditures; *minus*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Consolidated Taxes; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate amount of Restricted Payments paid in cash by the Credit Parties and Subsidiaries (other than Regulated Entities) to Persons other than Credit Parties; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in each case solely to the extent that, immediately *after* giving effect to the making of any such net Investment, the Consolidated Net Leverage Ratio, calculated on a Pro Forma Basis, is *greater than or equal to* 1.5 to 1.0, the aggregate amount (determined on a cost basis) of Investments (including, for the avoidance of doubt, Investments consisting of the forgiveness of fees as described in the last sentence of the definition of "*Investments*" below) made by any Credit Party in any Person that is *not* itself a Credit Party (including, for purposes of clarity, in any Regulated Entity) during such period, but *excluding* any such Investments to the extent financed with the proceeds of Loans (including Revolving Loans) or other long-term, non-revolving Indebtedness, net of the amount (if any) of Returned Reinsurance Investments received by the Credit Parties during such period;

all as determined in accordance with GAAP; to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Consolidated Fixed Charges,

in each case of the foregoing, measured on a consolidated basis for the Credit Parties and Subsidiaries (other than Regulated Entities) for the Trailing Period most recently ended as of such date; <u>provided</u>, <u>that</u>, notwithstanding anything to the contrary in the foregoing or elsewhere in this Agreement or any other Credit Document, the calculation of Consolidated Fixed Charges, for purposes of the calculation of the Consolidated Fixed Charge Coverage Ratio measured for the Trailing Period ending:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) September 30, 2026, shall be deemed to equal the *product* of: (A) actual Consolidated Fixed Charges paid in cash, measured for the period of one (1) Fiscal Quarter then ended; *multiplied by* (B) four (4);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) December 31, 2026, shall be deemed to equal the product of: (A) actual Consolidated Fixed Charges paid in cash, measured for the period consisting of the two (2) consecutive full Fiscal Quarters then ended; *multiplied by* (B) two (2); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) March 31, 2027, shall be deemed to equal the *product of*: (A) actual Consolidated Fixed Charges paid in cash, measured for the period consisting of the three (3) consecutive full Fiscal Quarters then ended; *multiplied by* (B) four thirds (4/3).

"<u>*Consolidated Fixed Charges*</u>" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, an amount equal to the *sum of*: (a) Consolidated Interest Charges for such period; *plus* (b) Consolidated Scheduled Funded Debt Payments for such period.

"<u>*Consolidated Funded Debt*</u>" shall mean all Funded Debt of the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis determined in accordance with GAAP; <u>provided</u>, <u>that</u>, for the avoidance of doubt, "*Consolidated Funded Debt*" shall include any intercompany Indebtedness owing by any Credit Party or Subsidiary (other than a Regulated Entity) to any Regulated Entity.

------

"<u>*Consolidated Interest Charges*</u>" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, an amount equal to the *sum of*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all interest, premium payments, debt discount, fees, charges, and related expenses in connection with Funded Debt of a type described in clauses (a) or (b) of the definition of "*Funded Debt*" below (other than, for purposes of clarity, payments in respect of Earn Out Obligations), in each case, to the extent treated as interest in accordance with GAAP; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the portion of rent expense with respect to such period under Capital Leases that is treated as interest in accordance with GAAP; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the implied interest component of Synthetic Leases with respect to such period;

<u>provided, that</u>, for the avoidance of doubt, "*Consolidated Interest Charges*" shall include all interest, premium, payments, debt discount, fees, charges and related expenses in connection with any intercompany Indebtedness owing by any Credit Party or Subsidiary (other than a Regulated Entity) to any Regulated Entity.

"<u>*Consolidated Leverage Ratio*</u>" shall mean, as of any date of determination, the ratio of: (a) Consolidated Funded Debt as of such date; to (b) Consolidated EBITDA, measured for the most recently ended Trailing Period.

"<u>*Consolidated Net Income*</u>" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (including or excluding Regulated Entities, as so specified textually in the relevant instance of calculation) on a consolidated basis, the net income of the Credit Parties and Subsidiaries (but *excluding*, in any event, extraordinary gains) for such period, as determined in accordance with GAAP; <u>provided</u>, <u>that</u>, for purposes of any determination of Consolidated Net Income that is exclusive of Regulated Entities, any dividends or other distributions paid by a Regulated Entity to another Credit Party or Subsidiary during the relevant period of measurement shall be disregarded and shall *not*, in any event, be considered net income of any Credit Party or Subsidiary (other than such Regulated Entity) for such period.

"<u>*Consolidated Net Leverage Ratio*</u>" shall mean, as of any date of determination, the ratio of: (a) the difference between (i) Consolidated Funded Debt as of such date, *minus* (ii) Unrestricted Cash in an aggregate amount *not* to exceed Twenty-Five Million Dollars ($25,000,000) at any time; to (b) Consolidated EBITDA, measured for the most recently ended Trailing Period.

"<u>*Consolidated Scheduled Funded Debt Payments*</u>" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis, the *sum of* all scheduled payments of principal on Consolidated Funded Debt, as determined in accordance with GAAP. For purposes of this definition, "<u>*scheduled payments of principal*</u>" shall: (a) be determined without giving effect to any reduction of such scheduled payments resulting from the application of any voluntary or mandatory prepayments made during the applicable period; (b) be deemed to include payments with respect to the Attributable Principal Amount in respect of Capital Leases, Securitization Transactions, Sale and Leaseback Transactions and Synthetic Leases; and (c) *not* include any voluntary prepayments or mandatory prepayments required pursuant to <u>Section</u> <u>2.11</u>.

"<u>*Consolidated Taxes*</u>" shall mean, for any period of measurement, the aggregate amount of all Taxes paid in cash, as determined in accordance with GAAP, by the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis; <u>provided</u>, <u>that</u>, "*Consolidated Taxes*" shall include all

------

Taxes paid in cash by the Credit Parties and Subsidiaries (other than Regulated Entities) on account of, on behalf of, or attributable to, any Regulated Entity to the extent that such Regulated Entity has *not* made Restricted Payments to the party paying such Taxes pursuant to <u>Section</u> <u>8.4(a</u>) within two (2) months of such tax liabilities becoming due and payable, or actually being paid in cash, by the paying party.

"<u>*Consolidated Unfinanced Capital Expenditures*</u>" shall mean, for any period of measurement, determined for the Credit Parties and Subsidiaries (other than Regulated Entities) on a consolidated basis in accordance with GAAP, the aggregate amount actually paid in cash by the Credit Parties and Subsidiaries (other than Regulated Entities) on account of Capital Expenditures, but *excluding* Capital Expenditures to the extent financed with the proceeds of Loans (including Revolving Loans) or other long-term, non-revolving Indebtedness.

"<u>*Contractual Obligation*</u>" shall mean, as applied to any Person, any provision of any Security issued by that Person or of any indenture, mortgage, deed of trust, contract, undertaking, agreement or other instrument to which that Person is a party or by which it, or any of its Properties, is bound, or to which it, or any of its Properties, is otherwise subject.

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

"<u>*Controlled Account Agreement*</u>" shall mean any tri-party agreement by and among a Credit Party, the Collateral Agent, and a depositary bank or securities or commodities intermediary (as applicable) at which such Credit Party maintains one (1) or more deposit, disbursement, lockbox, securities and/or commodities accounts granting "control" (as defined in the UCC) to the Collateral Agent with respect to such account(s), in each case, in form and substance reasonably satisfactory to the Collateral Agent.

"<u>*Conversion* / *Continuation Date*</u>" shall mean the effective date of a continuation or conversion, as the case may be, as set forth in the applicable Conversion / Continuation Notice.

"<u>*Conversion* / Continuation Notice</u>" shall mean a Conversion / Continuation Notice substantially in the form of <u>Exhibit 2.8</u>.

"<u>*Covered Entity*</u>" shall mean any of the following: (a) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §–252.82(b); (b) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §–47.3(b); and (c) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §–382.2(b).

"<u>*Covered Party*</u>" shall mean have the meaning specified for such term in <u>Section</u> <u>11.23</u>.

"<u>*Credit Date*</u>" shall mean, with respect to any Credit Extension, the date on which such Credit Extension is made.

"<u>*Credit Document*</u>" shall mean any of this Agreement, each Note, each Issuer Document, the Collateral Documents, any Guarantor Joinder Agreement, the Fee Letter, any Auto Borrow Agreement, any Incremental Facility Agreement, any documents or certificates executed by any Credit Party in favor of the Issuing Bank relating to Letters of Credit, and, to the extent evidencing or securing the Obligations, all other documents, instruments or agreements executed and delivered by any Credit Party for the benefit of any Agent, the Issuing Bank or any Lender in connection herewith or therewith, and including, for the

------

avoidance of doubt, any Guarantor Joinder Agreement (but specifically *excluding* any Secured Swap Agreements and any Secured Treasury Management Agreements).

"<u>*Credit Extension*</u>" shall mean the making of a Loan or the issuing or extending of a Letter of Credit.

"<u>*Credit Parties*</u>" shall mean, collectively, the Borrower and each Guarantor.

"*<u>Cure Period</u>*" shall have the meaning specified for such term in <u>Section</u> <u>9.4(a</u>).

"*<u>Cure Proceeds</u>*" shall have the meaning specified for such term in <u>Section</u> <u>9.4(a</u>).

"<u>*Daily Simple SOFR*</u>" shall mean, for any date of determination, SOFR, with the conventions for such rate (which shall include a lookback) being established by the Administrative Agent in accordance with the conventions for such rate selected or recommended by the Relevant Governmental Body for determining "*Daily Simple SOFR*" for business loans; <u>provided</u>, <u>that</u>, (a) if the Administrative Agent decides that any such convention is *not* administratively feasible for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion, and (b) if, at any time, Daily Simple SOFR (determined in accordance with such convention(s)) is *less than* the Floor, then Daily Simple SOFR shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents.

"<u>*DDTL Amortization Payment Amount*</u>" shall mean, at any time with respect to an advance under the Delayed Draw Term Loan during the DDTL Availability Period, an amount equal to the *quotient of*: (a) *the product of* (i) the aggregate original principal amount of such advance under the Delayed Draw Term Loan, *multiplied by* (ii) ten percent (10.0%); divided by (b) four (4).

"<u>*DDTL Availability Period*</u>" shall mean the period from, but *excluding*, the Effective Date to, but excluding, the DDTL Commitment Termination Date.

"<u>*DDTL Commitment*</u>" shall mean, with respect to each Lender, the obligation of such Lender to advance its respective portion of principal under the Delayed Draw Term Loan, in up to eight (8) separate advances during the DDTL Availability Period, in each case pursuant to <u>Section</u> <u>2.1(c</u>), in an aggregate original principal amount advanced by such Lender during the DDTL Availability Period (for all such advances, taken together) *not to exceed* the applicable amount set forth with respect to such Lender as such Lender's "*DDTL Commitment*" on <u>Appendix A</u>, subject to any increase(s), adjustment(s) and/or reduction(s) pursuant to the terms and conditions of this Agreement.

"<u>*DDTL Commitment Percentage*</u>" shall mean, with respect to each Lender at any time, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the *sum of* (i) the amount of such Lender's respective DDTL Commitment (if any) in effect at such time, *plus* (ii) the aggregate principal balance of the portion of the Delayed Draw Term Loan advanced by such Lender that is outstanding at such time; and (b) the *denominator* of which is the *sum of* (i) the Aggregate DDTL Commitment Amount in effect at such time, *plus* (ii) the aggregate outstanding principal balance of the Delayed Draw Term Loan at such time. The DDTL Commitment Percentages of each Lender as of the Effective Date are set forth on <u>Appendix A</u>.

"<u>*DDTL Commitment Termination Date*</u>" shall mean the *earliest* to occur of: (a) the first (1<sup>st</sup>) Business Day after the date that is the second (2<sup>nd</sup>) annual anniversary of the Effective Date; (b) the date on which eight (8) separate advances under the Delayed Draw Term Loan shall have been made in accordance with this Agreement; (c) the date on which the Borrower shall have provided written notice to

------

the Administrative Agent of its election to terminate the Aggregate DDTL Commitments in accordance with <u>Section</u> <u>2.11(b</u>); and (d) the date on which the Aggregate DDTL Commitments shall have been terminated, and/or all amounts outstanding under this Agreement shall have been declared, or automatically have become, due and payable, in each case of the foregoing of this <u>clause (d</u>), pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise).

"<u>*Debt Transaction*</u>" shall mean, with respect to any Credit Party, any Subsidiary or any other Regulated Entity, any sale, issuance, placement, assumption or guaranty of Funded Debt, whether or *not* evidenced by a promissory note or other written evidence of Indebtedness, except for Funded Debt permitted to be incurred and remain outstanding after the Effective Date pursuant to <u>Section</u> <u>8.1</u>.

"<u>*Debtor Relief Laws*</u>" shall mean the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect.

"<u>*Default*</u>" shall mean a condition or event that, after notice or lapse of time or both, would constitute an Event of Default.

"<u>*Default Rate*</u>" shall mean an interest rate equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to Obligations (including, for purposes of clarity, Loans bearing interest at the Base Rate determined pursuant to clause (c) of the definition of "*Base Rate*" above) other than SOFR Loans and the Letter of Credit Fee, the Base Rate *plus* the Applicable Margin, if any, applicable to such Obligations *plus* two percent (2.0%) per annum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to SOFR Loans, Term SOFR *plus* the Applicable Margin, if any, applicable to SOFR Loans *plus* two percent (2.0%) per annum; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to the Letter of Credit Fee, the Applicable Margin for the Letter of Credit Fee *plus* two percent (2.0%) per annum.

"<u>*Default Right*</u>" shall have the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§–252.81, 47.2 or 382.1, as applicable.

"<u>*Defaulting Lender*</u>" shall mean, subject to <u>Section 2.16(b)</u>, any Lender that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has failed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fund all, or any portion, of its Loans within two (2) Business Days of the date such Loans were required to be funded hereunder, unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender's determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has *not* been satisfied; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) pay to any Agent, the Issuing Bank, the Swingline Lender, or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in any Letters of Credit or Swingline Loans) within two (2) Business Days of the date when due;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has notified the Borrower, the Administrative Agent, the Issuing Bank, or the Swingline Lender in writing that it does *not* intend to comply with its funding obligations hereunder, or has made a public statement to that effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) has failed, within three (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (<u>provided</u>, <u>that</u>, such Lender shall cease to be a Defaulting Lender pursuant to this <u>clause (c</u>) upon receipt of such written confirmation by the Administrative Agent and the Borrower); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) has, or has a direct or indirect parent company that has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) become the subject of a proceeding under any Debtor Relief Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) become the subject of a Bail-In Action;

<u>provided, that</u>, a Lender shall *not* be a Defaulting Lender *solely* by virtue of the ownership or acquisition of any equity interest in that Lender, or any direct or indirect parent company thereof, by a Governmental Authority, so long as such ownership interest does *not* result in or provide such Lender with immunity from the jurisdiction of courts within the United States, or from the enforcement of judgments or writs of attachment on its assets, or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of <u>clauses (a</u>) through (<u>d</u>) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to <u>Section</u> <u>2.16(b</u>)) upon delivery of written notice of such determination to the Borrower, the Issuing Bank, the Swingline Lender and each Lender.

"<u>*Delayed Draw Term Loan*</u>" shall have the meaning provided for such term in <u>Section</u> <u>2.1(c</u>). The Delayed Draw Term Loan may also be referred to in this Agreement and the other Credit Documents as the "<u>DDTL</u>".

"<u>*Disqualified Equity Interests*</u>" shall mean, with respect to any Person, any Equity Interests in such Person that, by their terms (or by the terms of any security or other Equity Interests into which they are convertible, or for which they are exchangeable), or upon the happening of any event or condition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) matures (but *excluding* any maturity as a result of an optional redemption by the issuer thereof the exercise of which, by the terms of such Equity Interests, is contingent upon such redemption *not* being prohibited by this Agreement or any of the other Credit Documents) or is mandatorily redeemable (other than (i) *solely* in exchange for Equity Interests that are *not* otherwise Disqualified Equity Interests, or (ii) as a result of a redemption that, by the terms of such Equity Interests, is contingent upon such redemption *not* being prohibited by this Agreement or any of the other Credit Documents), pursuant to a sinking fund obligation or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is redeemable at the option of the holder thereof (other than (i) *solely* in exchange for Equity Interests that are not otherwise Disqualified Equity Interests, or (ii) as a result of a

------

redemption that, by the terms of such Equity Interests, is contingent upon such redemption *not* being prohibited by this Agreement or any of the other Credit Documents), in whole or in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) provides for the scheduled payment of dividends in cash; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is or becomes convertible into, or exchangeable for, Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests;

in each case of the foregoing <u>clauses (a)</u> through <u>(d)</u>, on or prior to the date that is one-hundred eighty one (181) calendar days after the Latest Maturity Date; <u>provided</u>, <u>that</u>, (I) to the extent that any such Equity Interests are issued pursuant to a Benefit Plan for the benefit of any Credit Party or Subsidiary to any employees of any Credit Party or Subsidiary, such Equity Interests shall *not* constitute Disqualified Equity Interests *solely* as a result of such Equity Interests being required to be repurchased by a Credit Party or Subsidiary in order to satisfy requirements under applicable Law, and (II) in the case of the foregoing <u>clauses (a)</u> and <u>(b)</u>, if any Equity Interests constitute Disqualified Equity Interests as a result of the occurrence of a Change in Control, the consummation of an Asset Sale or other disposition, or the consummation of any other Specified Transaction or other transaction, then such Equity Interests shall *not* constitute Disqualified Equity Interests for purposes of this Agreement and the other Credit Documents so long as any rights of the holder(s) thereof upon the occurrence of such a Change in Control, the consummation of such an Asset Sale or other disposition, or the consummation of such other Specified Transaction(s) or other transaction(s) are, in any such case, subject to the prior occurrence of the Payment in Full of all Obligations.

"<u>*Disqualified Institution*</u>" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) those Competitors and other Persons, if any, identified on a list provided by the Borrower to the Administrative Agent and made available to the Lenders on or prior to the Effective Date in anticipation of the closing of this Agreement on the Effective Date (which list, for the avoidance of doubt, shall be deemed to be a blank list as of the Effective Date) (the "<u>*Disqualified Institution List*</u>") (as such Disqualified Institution List may be supplemented from time to time by the Borrower pursuant to <u>clause (c</u>) below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Person that is reasonably identifiable (based *solely* to the extent such legal entity has the name of a Person set forth on the Disqualified Institution List in its legal name) as an Affiliate of any Person set forth on the Disqualified Institution List; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other Competitor identified by legal name in writing to the Administrative Agent at any time after the Effective Date (other than during the continuance of an Event of Default) (it being understood and agreed that the Borrower shall be required to provide a fully updated Disqualified Institution List to the Administrative Agent in order to supplement such list after the Effective Date), which designation shall become effective one (1) day after the date that such written designation to the Administrative Agent is made available to the Lenders on IntraLinks, Syndtrak, Debtdomain or a similar electronic transmission system, but which shall *not* apply retroactively to disqualify any Persons that have previously acquired an assignment or participation interest in the Loans and/or Commitments.

Notwithstanding anything to the contrary in the foregoing, a Person that would be a Disqualified Institution as a result of being an Affiliate of a Competitor pursuant to <u>clause (b</u>) above shall *not* constitute a Disqualified Institution if such Person is a financial institution, bona fide debt fund or investment vehicle that is engaged in the business of making, purchasing, holding or otherwise investing in commercial loans, notes, bonds and similar extensions of credit or securities in the ordinary course of

------

business to unaffiliated third parties and no Disqualified Institution makes investment decisions for such Person.

"<u>*Disqualified Institution List*</u>" shall have the meaning set forth in the definition of "*Disqualified Institution*" above.

"*<u>Dollars</u>*" and the sign "<u>$</u>" shall mean the lawful money of the United States.

"<u>*Domestic Subsidiary*</u>" shall mean any Subsidiary that is incorporated or formed (as the case may be) under the Applicable Laws of the United States or of any state, district or other political subdivision thereof, other than any such Subsidiary of the type(s) described in clauses (b) or (c) of the definition of "*Foreign Subsidiary*" below.

"<u>*Earn Out Obligations*</u>" shall mean, with respect to any Acquisition or other Investment permitted under this Agreement consisting of the purchase of Equity Interests, all obligations of any Credit Party, any Subsidiary or any other Regulated Entity to make earn out or other similar contingent payments that are payable based on the achievement of specified financial results over time (but *excluding*, for the avoidance of doubt, payments in respect of purchase price adjustments, working capital adjustments and non-competition and/or consulting agreements) pursuant to the definitive documentation relating to such Acquisition or other Investment.

"<u>*EEA Financial Institution*</u>" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any credit institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA Resolution Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any entity established in an EEA Member Country that is a parent of an institution described in <u>clause (a</u>) above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in <u>clauses</u> <u>(a)</u> or <u>(b)</u> above and is subject to consolidated supervision with its parent.

"<u>*EEA Member Country*</u>" shall mean any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"<u>*EEA Resolution Authority*</u>" shall mean any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"<u>*Effective Date*</u>" shall have the meaning provided for such term in the introductory paragraph to this Agreement.

"<u>*Eligible Assignee*</u>" shall mean any Person that meets the requirements to be an assignee under <u>Section</u> <u>11.5(b</u>), subject to any consents and representations, if any as may be required therein.

"<u>*Environmental Claim*</u>" shall mean any known investigation, written notice, notice of violation, written claim, action, suit, proceeding, written demand, abatement order or other written order or directive (conditional or otherwise), by any Person arising:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) pursuant to, or in connection with, any actual or alleged violation of any Environmental Law;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in connection with any actual or alleged damage, injury, threat or harm to human health, safety, natural resources or the environment.

"<u>*Environmental Laws*</u>" shall mean any and all current or future federal or state (or any subdivision of either of them), statutes, ordinances, orders, rules, regulations, judgments, Governmental Authorizations, or any other written requirements of Governmental Authorities relating to: (a) any Hazardous Materials Activity; (b) the generation, use, storage, transportation or disposal of Hazardous Materials; or (c) protection of human health and the environment from pollution, in any manner applicable to any Credit Party, any Subsidiary, any Regulated Entity, or any of the respective Facilities of any of the foregoing.

"<u>*Environmental Liability*</u>" shall mean any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of any Credit Party, any Subsidiary or any other Regulated Entity directly or indirectly resulting from or based upon: (a) violation of any Environmental Law; (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials; (c) exposure to any Hazardous Materials; (d) the Release, or threatened Release, of any Hazardous Materials into the environment; or (e) any contract, agreement or other consensual arrangement pursuant to which any Credit Party, any Subsidiary or any other Regulated Entity assumed liability with respect to any of the foregoing.

"<u>*Equity Interests*</u>" shall mean, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.

"<u>*ERISA*</u>" shall mean the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

"<u>*ERISA Affiliate*</u>" shall mean, as applied to any Person: (a) any corporation which is a member of a controlled group of corporations within the meaning of Section 414(b) of the Internal Revenue Code of which that Person is a member; (b) any trade or business (whether or not incorporated) which is a member of a group of trades or businesses under common control within the meaning of Section 414(c) of the Internal Revenue Code of which that Person is a member; and (c) any member of an affiliated service group within the meaning of Section 414(m) or (o) of the Internal Revenue Code of which that Person, any corporation described in <u>clause (a)</u> above or any trade or business described in <u>clause (b)</u> above is a member.

"<u>*ERISA Event*</u>" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a "reportable event" within the meaning of Section 4043 of ERISA and the regulations issued thereunder with respect to any Pension Plan (but *excluding* those for which notice to the PBGC has been waived by regulation);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the failure to meet the minimum funding standard of Section 412 of the Internal Revenue Code with respect to any Pension Plan (whether or not waived in accordance with Section 412(c) of the Internal Revenue Code), the failure to make by its due date any minimum required contribution or any required installment under Section 430(j) of the Internal Revenue Code with respect to any Pension Plan or the failure to make by its due date any required contribution to a Multiemployer Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the provision by the administrator of any Pension Plan pursuant to Section 4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress termination described in Section 4041(c) of ERISA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the withdrawal from any Pension Plan with two (2) or more contributing sponsors or the termination of any such Pension Plan, in either case resulting in material liability pursuant to Section 4063 or 4064 of ERISA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the institution by the PBGC of proceedings to terminate any Pension Plan, or the occurrence of any event or condition reasonably likely to constitute grounds under ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the imposition of liability pursuant to Section 4062(a) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA, each case reasonably likely to result in material liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the withdrawal of any Credit Party, any Subsidiary, any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, in a complete or partial withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if such withdrawal is reasonably likely to result in material liability, or the receipt by any Credit Party, any Subsidiary, any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, of notice from any Multiemployer Plan that it is in insolvency pursuant to Section 4241 or 4245 of ERISA, or that it is in "critical" or "endangered" status within the meaning of Section 305 of ERISA, or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA, if such insolvency or termination is reasonably likely to result in material liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the imposition of fines, penalties, taxes or related charges under Chapter 43 of the Internal Revenue Code, Section 502(c), (i) or (l), or Section 4071 of ERISA in respect of any Pension Plan if such fines, penalties, taxes or related charges are reasonably likely to result in material liability to the Credit Parties, the Subsidiaries, the other Regulated Entities, and/or their respective ERISA Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) receipt from the Internal Revenue Service of a final written determination of the failure of any Pension Plan intended to be qualified under Section 401(a) of the Internal Revenue Code to qualify under Section 401(a) of the Internal Revenue Code, or the failure of any trust forming part of any such plan to qualify for exemption from taxation under Section 501(a) of the Internal Revenue Code; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the imposition of a lien pursuant to Section 430(k) of the Internal Revenue Code or pursuant to Section 303(k) or 4068 of ERISA.

"*<u>Erroneous Payment</u>*" shall have the meaning specified for such term in <u>Section</u> <u>10.11(a</u>).

"<u>*Erroneous Payment Deficiency Assignment*</u>" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"<u>*Erroneous Payment Impacted Class*</u>" shall have the meaning specified for such term in <u>Section 10.11(d)</u>.

------

"<u>*Erroneous Payment Return Deficiency*</u>" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"<u>*Erroneous Payment Subrogation Rights*</u>" shall have the meaning specified for such term in <u>Section</u> <u>10.11(d</u>).

"<u>*EU Bail-In Legislation Schedule*</u>" shall mean the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"<u>*Event of Default*</u>" shall mean each of the conditions or events set forth in <u>Section</u> <u>9.1</u>.

"<u>*Exchange Act*</u>" shall mean the Securities Exchange Act of 1934, as amended from time to time, and any successor statute.

"<u>*Excluded Accounts*</u>" shall mean: (a) deposit and/or securities accounts used *solely* for the payment of Taxes, the balance of which consists exclusively of (i) withheld income taxes, federal, state or local employment taxes and sales taxes, in such amounts as are required, in the reasonable judgment of the Borrower, to be paid to the IRS or state or local Governmental Authorities, or (ii) amounts required to be paid over to an employee benefit plan pursuant to DOL Reg. §–2510.3–102 on behalf of, or for the benefit of, employees of one (1) or more Credit Parties; (b) all accounts used *solely* for payroll, accounts maintained *solely* in trust for the benefit of third parties and fiduciary purposes (including fiduciary tax accounts), escrow and trust accounts, zero balance or swept accounts, and healthcare and other employee benefit accounts (including 401(k) accounts and pension fund accounts), in each case of this <u>clause (b</u>), so long as such account is used *solely* for such purpose; (c) any deposit and/or securities account maintained in a jurisdiction outside of the United States or owned by a Foreign Subsidiary; and (d) accounts the balance of which consists exclusively of amounts to be paid to employees in the ordinary course of business.

"<u>*Excluded Property*</u>" shall mean, with respect to the Borrower and each other Credit Party, including any Person that becomes a Credit Party after the Effective Date as contemplated by <u>Section</u> <u>7.14</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Excluded Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Real Estate Asset owned in fee or leased by a Credit Party that is located outside of the United States, or any Real Estate Asset leased by a Credit Party that is located in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Real Estate Asset owned in fee by a Credit Party that is located in the United States having a fair market value *not* in *excess* of One Million Dollars ($1,000,000) (as reasonably determined by the Borrower on the Effective Date or on the date of later purchase of such Real Estate Asset, as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any personal Property (including, without limitation, motor vehicles) in respect of which perfection of a Lien is *not:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) governed by the UCC; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) effected by appropriate evidence of the Lien being filed in either the United States Copyright Office or the United States Patent and Trademark Office;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Equity Interests in: (i) any direct Foreign Subsidiary, to the extent *not* required to be pledged to secure the Obligations pursuant to <u>Section</u> <u>7.12(a</u>); and (ii) any Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Property which, subject to the terms of <u>Section</u> <u>8.3</u>, is subject to a Lien of the type described in <u>Section</u> <u>8.2(m</u>) pursuant to documents which prohibit the applicable Credit Party from granting any other Liens in such Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any Property to the extent that the grant of a security interest therein would violate Applicable Laws, require a consent *not* obtained of any Governmental Authority, or constitute a breach of or default under, or result in the termination of or require a consent *not* obtained under, any contract, lease, license or other agreement evidencing or giving rise to such Property, or result in the invalidation thereof or provide any party thereto with a right of termination (other than to the extent that any such term would be rendered ineffective pursuant to Section 9–406, 9–407, 9–408 or 9–409 of the applicable UCC or any other Applicable Law or principles of equity);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any lease, license, certificate, permit, agreement or other authorization issued by any Governmental Authority, or any Properties subject to any such lease, license, certificate, permit, agreement or other authorization, in each case of the foregoing, in existence on the Effective Date or upon the acquisition of the relevant Subsidiary party thereto (other than any such lease, license, certificate, permit, agreement or other authorization entered into in contemplation of this Agreement in order that any Property would constitute "*Excluded Property*" by operation of this <u>clause (h</u>)), *solely* if, and to the extent that, the grant of a security interest therein would: (i) violate or invalidate such lease, license, certificate, permit, agreement or other authorization (in each case, only if such violation or invalidation is *not* rendered ineffective pursuant to Section 9–406, 9–407, 9–408 or 9–409 of the applicable UCC or any other Applicable Law or principles of equity); (ii) create a right of termination in favor of any party thereto other than any Credit Party (or an Affiliate thereof); or (iii) otherwise require the consent of any Person that is *not* a Credit Party (or an Affiliate thereof), unless such consent has been obtained (<u>provided</u>, <u>that</u>, the Credit Parties shall have no obligation or responsibility to obtain such consent);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Margin Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any intent-to-use trademark application prior to the filing of a "Statement of Use" or "Amendment to Allege Use" with respect thereto, *solely* if, and to the extent, if any, that, and *solely* during the period, if any, during which, the grant or enforcement of a security interest therein would impair the validity or enforceability of such intent-to-use trademark application under Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any ownership interest of such Credit Party in the Property of, and/or any Equity Interests in, any joint venture entity and/or any Subsidiary that is *not* Wholly Owned Subsidiary, *solely* to the extent that (i) a security interest therein is *not* permitted to be granted by such Credit Party pursuant to the terms of the Organizational Documents of such joint venture entity or non-Wholly Owned Subsidiary (in each case, as in effect on the Effective Date or on such later date of initial acquisition by such Credit Party of Equity Interests in such joint venture entity or non-Wholly Owned Subsidiary), or (ii) the granting of a security interest therein by such Credit Party would require, pursuant to such Organizational Documents or the terms of other Contractual Obligations of such Credit Party (in each case, as in effect on the Effective Date or on such later date of initial acquisition by such Credit Party of Equity Interests in such joint venture entity or

------

non-Wholly Owned Subsidiary), the consent of a Person that is *not* a Credit Party (or an Affiliate thereof) (in each case, after giving effect to Section 9–406, 9–407, 9–408 or 9–409 of the applicable UCC or any other Applicable Law or principle of equity, the assignment of which is expressly deemed to be effective under the UCC or other Applicable Law or principle of equity notwithstanding such provision), unless such consent has been obtained (<u>provided,</u> <u>that,</u> the Credit Parties shall have no obligation or responsibility to obtain such consent); <u>provided,</u> <u>that,</u> no such Organizational Documents or Contractual Obligations were formed, created, assumed or entered into (as applicable) with the intention of causing such Property to constitute "*Excluded Property*" by operation of this <u>clause (k</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) any Property of any Credit Party to the extent that the costs, burdens (including tax and/or regulatory burdens, if applicable), difficulty or consequence of obtaining a security interest therein or perfection thereof *exceeds*, in the reasonable determination and agreement in writing of the Collateral Agent and the Borrower, the benefit to the holders of the Obligations afforded thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) proceeds and products of any and all of the foregoing excluded Property described in <u>clauses (a)</u> through <u>(l)</u> above only to the extent such proceeds and products would constitute Property or assets of the type described in <u>clauses (a)</u> through <u>(l)</u> above;

<u>provided</u>, <u>that,</u> the security interest granted to the Collateral Agent under the Security Agreement or any other Credit Document shall attach immediately to any asset of any Obligor (as such term is defined in the Security Agreement) at such time as such asset ceases to meet any of the criteria for "*Excluded Property*" described in any of the foregoing <u>clauses (a)</u> through <u>(m)</u> above.

"<u>*Excluded Swap Obligation*</u>" shall mean, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all, or a portion, of the Guaranty of such Guarantor of, or the grant under a Credit Document by such Guarantor of a security interest to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act (or the application or official interpretation thereof) by virtue of such Guarantor's failure for any reason to constitute an "eligible contract participant" as defined in the Commodity Exchange Act (determined after giving effect to <u>Section</u> <u>4.8</u> hereof and any and all guarantees of such Guarantor's Swap Obligations by other Credit Parties) at the time the Guaranty of such Guarantor, or grant by such Guarantor of a security interest, becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a Master Agreement governing more than one Swap Agreement, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to Swap Agreements for which such Guaranty or security interest becomes illegal.

"<u>*Excluded Subsidiary*</u>" shall mean, collectively, each Subsidiary of the Borrower (other than, in any event, any Subsidiary that was, at any time *prior* to the relevant date of determination, a Guarantor and/or an Obligor (as such term is defined in the Security Agreement)):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prohibited by Applicable Laws from providing a Guarantee of the Obligations and/or granting a Lien in favor of the Collateral Agent, for the benefit of the holders of the Obligations, in substantially all of its Property (other than any Excluded Property);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a Regulated Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a Foreign Subsidiary; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) an Immaterial Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent that the Agents and the Borrower mutually determine and agree in writing that the costs and/or burden (including tax and/or regulatory burdens, if applicable) of obtaining a Guarantee by such Subsidiary of the Obligations would outweigh the benefit to the holders of the Obligations of obtaining such Guarantee.

"<u>*Excluded Taxes*</u>" shall mean any of the following Taxes imposed on, or with respect to, a Recipient or required to be withheld or deducted from a payment to a Recipient:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Taxes imposed on, or measured by, net income (however denominated), profits, or overall gross income or receipts, franchise or similar Taxes, and branch profits Taxes, in each case,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that are Other Connection Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to, or for the account of, such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under <u>Section</u> <u>2.17</u>), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender changes its lending office,

except, in each case, to the extent that, pursuant to <u>Section</u> <u>3.3</u>, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Taxes attributable to such Recipient's failure to comply with <u>Section</u> <u>3.3(f</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any U.S. federal withholding Taxes imposed under FATCA.

"<u>*Existing Credit Agreement*</u>" has the meaning provided for such term in the recitals hereto.

"<u>*Existing Delayed Draw Term Loan*</u>" has the meaning provided for such term in the recitals hereto.

"<u>*Existing Lenders*</u>" has the meaning provided for such term in the recitals hereto.

"<u>*Existing Letters of Credit*</u>" shall mean those certain letters of credit (if any) issued and outstanding under the Existing Credit Agreement as of the Effective Date, as set forth on <u>Appendix C</u>.

"<u>*Existing Revolving Facility*</u>" has the meaning provided for such term in the recitals hereto.

"<u>*Existing Term Loan A*</u>" has the meaning provided for such term in the recitals hereto.

------

"<u>*Facility*</u>" shall mean any real property including all buildings, fixtures or other improvements located on such real property now, hereafter or heretofore owned, leased, operated or used by any Credit Party, any Subsidiary or any other Regulated Entity, or any of their respective predecessors.

"<u>*FATCA*</u>" shall mean Sections 1471 through 1474 of the Internal Revenue Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and *not* materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code.

"<u>*Federal Funds Rate*</u>" shall mean, for any day, the rate per annum (expressed, as a decimal, rounded upwards, if necessary, to the next higher one one-hundredth of one percent (0.01%)) equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the FRBNY on the Business Day next succeeding such day; <u>provided</u>, <u>that</u>, (a) if such day is *not* a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate charged to Regions or any other Lender selected by the Administrative Agent on such day on such transactions as determined by the Administrative Agent.

"<u>*Federal Reserve Board*</u>" shall mean the Board of Governors of the Federal Reserve System (or any successor).

"<u>*Fee Letter*</u>" shall mean that certain fee letter agreement, dated as of February 25, 2026, by and among the Borrower, Regions and RCM.

"<u>*FHLB*</u>" shall mean any federal home loan bank.

"<u>*Financial Covenants*</u>" shall mean, collectively, each of the financial covenants set forth in <u>Section 8.8(a)</u>, <u>Section 8.8(b)</u> and <u>Section</u> <u>8.8(c</u>).

"<u>*Financial Officer Certification*</u>" shall mean, with respect to the financial statements for which such certification is required, the certification of the chief financial officer of the Borrower that such financial statements fairly present, in all material respects, the financial condition of the Credit Parties and Subsidiaries (including or excluding Regulated Entities, as so specified textually in the relevant instance of calculation) as of the dates indicated and the results of their operations and their cash flows for the periods indicated, subject to changes resulting from audit and normal year-end adjustments.

"<u>*Fiscal Quarter*</u>" shall mean a fiscal quarter of any Fiscal Year.

"<u>*Fiscal Year*</u>" shall mean the fiscal year of the Borrower ending on December 31 of each calendar year.

"<u>*Flood Hazard Property*</u>" shall mean any Real Estate Asset subject to a mortgage or deed of trust in favor of the Collateral Agent, for the benefit of the holders of the Obligations, and located in an area designated by the Federal Emergency Management Agency as having special flood or mud slide hazards.

"<u>*Floor*</u>" shall mean a rate of interest equal to zero percent (0.00%) per annum (subject to the proviso to the last sentence of <u>Section</u> <u>3.1(g)(v</u>)).

"<u>*Foreign Lender*</u>" shall mean a Lender that is *not* a U.S. Person.

------

"<u>*Foreign Subsidiary*</u>" shall mean any Subsidiary that: (a) is *not* a Domestic Subsidiary; (b) is a FSHCO; or (c) is a direct or indirect Subsidiary of a CFC (other than any such Subsidiary treated as a C-corporation for U.S. federal income tax purposes).

"<u>*FRBNY*</u>" shall mean the Federal Reserve Bank of New York (or any successor).

"<u>*Fronting Exposure*</u>" shall mean, at any time there is a Defaulting Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to the Issuing Bank, such Defaulting Lender's Revolving Commitment Percentage of the outstanding Letter of Credit Obligations with respect to Letters of Credit issued by the Issuing Bank, other than Letter of Credit Obligations as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to the Swingline Lender, such Defaulting Lender's Revolving Commitment Percentage of outstanding Swingline Loans made by the Swingline Lender, other than Swingline Loans as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders.

"<u>*FSHCO*</u>" shall mean any Domestic Subsidiary that does *not* own any material Property other than the Equity Interests in, and/or Indebtedness (if any) of, one (1) or more CFCs (or other FSHCOs).

"<u>*Fund*</u>" shall mean any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.

"<u>*Funded Debt*</u>" shall mean, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all obligations for borrowed money, whether current or long-term (including the Obligations hereunder), all obligations evidenced by bonds, debentures, notes, loan or credit agreements or other similar instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all obligations in respect of the deferred purchase price of Property or services (other than trade accounts payable in the ordinary course of business and, in each case, *not* past due for *more than* sixty (60) calendar days), including, without limitation, any Earn Out Obligations recognized as a liability on the balance sheet of such Person in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all unreimbursed obligations of such Person with respect to draw amounts under letters of credit, bankers' acceptances and similar instruments (including bank guaranties);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Attributable Principal Amount of Capital Leases, Synthetic Leases, Securitization Transactions and Sale and Leaseback Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Disqualified Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all Funded Debt of others secured by (or for which the holder of such Funded Debt has an existing right, contingent or otherwise, to be secured by) any Lien on, or payable out of the proceeds of production from, Property owned or acquired by such Person, whether or not the obligations secured thereby have been assumed;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all Guarantees in respect of Funded Debt of another Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Funded Debt of any partnership or joint venture or other similar entity in which such Person is a general partner or joint venturer, and, as such, has personal liability for such obligations, but only to the extent there is recourse to such Person for payment thereof.

For purposes hereof, the amount of Funded Debt shall be determined based on: (i) the outstanding principal amount thereof, in the case of borrowed money indebtedness under <u>clause (a</u>) above and purchase money indebtedness and deferred purchase obligations under <u>clause (b</u>) above; and (ii) the amount of Funded Debt that is the subject of such Guarantees, in the case of Guarantees under <u>clause (g</u>) above.

"<u>*Funding Notice*</u>" shall mean a notice substantially in the form of <u>Exhibit 2.1</u>.

"<u>*GAAP*</u>" shall mean, subject to the limitations on the application thereof set forth in <u>Section</u> <u>1.2</u>, accounting principles generally accepted in the United States in effect as of the date of determination thereof.

"<u>*Governmental Acts*</u>" shall mean any act or omission, whether rightful or wrongful, of any present or future *de jure or de facto* government or Governmental Authority.

"<u>*Governmental Authority*</u>" shall mean the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank and any group or body charged with setting financial accounting or regulatory capital rules or standards).

"<u>*Governmental Authorization*</u>" shall mean any permit, license, authorization, plan, directive, consent order or consent decree of or from any Governmental Authority.

"<u>*Guarantee*</u>" shall mean, as to any Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any obligation, contingent or otherwise, of such Person guaranteeing, or having the economic effect of guaranteeing, any Indebtedness or other obligation payable or performable by another Person (the "<u>*primary obligor*</u>") in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to purchase or lease Property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien).

The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term "*Guarantee*" as a verb has a corresponding meaning.

"<u>*Guaranteed Obligations*</u>" shall have the meaning specified for such term in <u>Section</u> <u>4.1</u>.

"<u>*Guarantor Joinder Agreement*</u>" shall mean a guarantor joinder agreement substantially in the form of <u>Exhibit 7.14</u> delivered by a Domestic Subsidiary pursuant to <u>Section 7.14.</u>

"<u>*Guarantors*</u>" shall mean: (a) each existing and future direct and indirect Domestic Subsidiary that is not an Excluded Subsidiary; (b) each Person identified as a "*Guarantor*" on the signature pages to this Agreement; (c) each other Person that joins as a Guarantor pursuant to <u>Section</u> <u>7.14</u>; (d) with respect to (i) Secured Swap Obligations, (ii) Secured Treasury Management Obligations, and (iii) Swap Obligations of a Specified Credit Party (determined before giving effect to <u>Section 4.1</u> and <u>Section 4.8</u>) under the Guaranty hereunder, the Borrower; and (e) their successors and permitted assigns.

"<u>*Guaranty*</u>" shall mean the Guarantee made by the Guarantors in favor of the Administrative Agent, the Lenders and the other holders of the Obligations pursuant to <u>Article 4</u>.

"<u>*Hazardous Materials*</u>" shall mean any hazardous substances defined by the Comprehensive Environmental Response Compensation and Liability Act, 42 USCA 9601, *et seq*., as amended ("<u>CERCLA</u>"), including any hazardous waste as defined under 40 C.F.R. Parts 260–270, gasoline or petroleum (including crude oil or any fraction thereof), asbestos or polychlorinated biphenyls.

"<u>*Hazardous Materials Activity*</u>" shall mean any past, current, proposed or threatened activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, presence, existence, location, Release, threatened Release, discharge, placement, generation, transportation, processing, construction, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.

"<u>*Highest Lawful Rate*</u>" shall mean the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under Applicable Laws relating to any Lender which are currently in effect or, to the extent allowed under such Applicable Laws, which may hereafter be in effect and which allow a higher maximum non-usurious interest rate than Applicable Laws now allow.

"<u>*Immaterial Subsidiary*</u>" shall mean, as of any date of determination, each Subsidiary that has been designated by the Borrower, in writing to the Administrative Agent (including by deemed

------

designation pursuant to <u>clause (c</u>) below), as an "*Immaterial Subsidiary*" for purposes of this Agreement (and *not* subsequently re-designated as a Material Subsidiary as provided below), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for purposes of this Agreement and the other Credit Documents, at no time shall

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the aggregate book value of the total Property of (I) all Immaterial Subsidiaries, as of the last day of the most recently ended Trailing Period, *equal* or *exceed* five percent (5.0%), or (II) any individual Immaterial Subsidiary, as of the last day of the most recently ended Trailing Period, *equal* or *exceed* two and one-half of one percent (2.5%), in each case of the foregoing <u>clauses (a)(i)(A)(I)</u> and <u>(a)(i)(A)(II)</u>, of the aggregate book value of the total Property of the Credit Parties and Subsidiaries as of such date, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the gross revenues of (I) all Immaterial Subsidiaries for the most recently ended Trailing Period *equal* or *exceed* five percent (5.0%), or (II) any individual Immaterial Subsidiary for the most recently ended Trailing Period *equal* or *exceed* two and one-half of one percent (2.5%), in each case of the foregoing <u>clauses (a)(i)(B)(I</u>) and (<u>a)(i)(B)(II</u>), of the gross revenues of the Credit Parties and Subsidiaries for such period,

in each case of the foregoing <u>clauses (a)(i)(A)</u> and <u>(a)(i)(B)</u>, determined on a consolidated basis in accordance with GAAP, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the portion of Consolidated EBITDA, recomputed as of the last day of the most recently ended Trailing Period, attributable to the operations of (I) all Immaterial Subsidiaries, taken together, *equal* or *exceed* five percent (5.0%), or (II) any individual Immaterial Subsidiary *equal* or *exceed* two and one-half of one percent (2.5%), in each case of the foregoing <u>clauses (a)(i)(C)(I)</u> and <u>(a)(i)(C)(II)</u>, of Consolidated EBITDA for such period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower shall *not* designate any new Immaterial Subsidiary if such designation would *not* comply with the provisions set forth in the foregoing <u>clause (a)(i</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the event that, on any Subsidiary Determination Date, the aggregate book value of the total Property, gross revenues or attributable portion of Consolidated EBITDA of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) all Subsidiaries so designated by the Borrower as "*Immaterial Subsidiaries*" (and not re-designated as "*Material Subsidiaries*"), taken together, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any individual Subsidiary so designated by the Borrower as an "*Immaterial Subsidiary*" (and *not* re-designated as a "*Material Subsidiary*"),

shall, in any such case of the foregoing <u>clauses (a)(iii)(A)</u> or <u>(a)(iii)(B)</u>, *exceed* the respective limits set forth in the foregoing <u>clause (a)(i</u>), then the Borrower shall, promptly and, in any event, within five (5) Business Days after the applicable Subsidiary Determination Date, re-designate one (1) or more Immaterial Subsidiaries as Material Subsidiaries by providing written notice of such re-designation(s) to the Administrative Agent, so that (immediately after giving effect to such re-designation(s)) the aggregate book value of total Property, gross revenues and attributable portion of Consolidated EBITDA of (I) all Subsidiaries still designated as "*Immaterial Subsidiaries*", taken together, and (II) each individual Subsidiary still designated as an

------

"*Immaterial Subsidiary*", in each case of the foregoing <u>clauses (a)(iii)(I) and (a)(iii)(II</u>), shall *not exceed* such respective limits; and <u>further</u> (and for purposes of clarity), upon any such re-designation made in accordance with the foregoing of this definition, each individual Subsidiary so re-designated shall be required to become a Guarantor in accordance with <u>Section</u> <u>7.14</u> (it being understood and agreed that the forty-five (45) calendar day period referred to in such Section shall be deemed to have commenced as of the applicable Subsidiary Determination Date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower may designate and re-designate a Subsidiary as an Immaterial Subsidiary at any time, subject to the restrictions and limitations set forth in the foregoing <u>clause (a</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) notwithstanding anything to the contrary in the foregoing of this definition, on the Effective Date as of the time of initial effectiveness of this Agreement, the Borrower shall be deemed to have designated Farpoint Holdings, LLC, a Florida limited liability company, as an "*Immaterial Subsidiary*" for purposes of this Agreement.

"<u>*Incremental Cap*</u>" shall mean, as of any date of determination, the *difference between*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) One-Hundred Fifty Million Dollars ($150,000,000); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the aggregate original principal or committed amount of all Incremental Facilities previously established and/or incurred as of such date.

"<u>*Incremental DDTL Increase*</u>" shall mean any increase in the Aggregate DDTL Commitment Amount established after the Effective Date pursuant to <u>Section</u> <u>2.1(e</u>).

"<u>*Incremental Facility*</u>" shall mean any Incremental Revolver Increase, any Incremental Term Loan A Increase, any Incremental DDTL Increase, or any other Incremental Term Loan.

"<u>*Incremental Facility Agreement*</u>" shall mean, with respect to any Incremental Facility, the definitive amendment, credit, commitment, joinder and/or other legal documentation executed and delivered by the Borrower pursuant to which such Incremental Facility is established, which amendment, credit, commitment, joinder and/or other legal documentation shall be in form and detail reasonably satisfactory to the Agents.

"<u>*Incremental Revolver Increase*</u>" shall mean any increase in the Aggregate Revolving Commitment Amount established after the Effective Date pursuant to <u>Section</u> <u>2.1(e</u>).

"<u>*Incremental Term Loan*</u>" shall mean any additional Term Loan established after the Effective Date pursuant to <u>Section</u> <u>2.1(e</u>) (including, for purposes of clarity, (i) any additional advance under the Term Loan A or the Delayed Draw Term Loan established in connection with an Incremental Term Loan A Increase or an Incremental DDTL Increase, as well as (ii) any additional Term Loan of a separate Class established after the Effective Date pursuant to such Section).

"<u>*Incremental Term Loan A Increase*</u>" shall mean any increase in the Aggregate Term Loan A Commitment Amount established after the Effective Date pursuant to <u>Section</u> <u>2.1(e</u>).

"<u>*Incremental Term Loan Commitment*</u>" shall mean, with respect to any Person(s) identified as an "*Incremental Lender*" (or substantially similar designation) in respect of an Incremental Term Loan in the Incremental Facility Agreement establishing such Incremental Term Loan, the respective commitment of such Person(s) (together with their respective successors and permitted assigns) to advance their respective portion of principal under such Incremental Term Loan in accordance with the terms of such

------

Incremental Facility Agreement and this Agreement; <u>provided</u>, <u>that</u>, at any time after the establishment and incurrence of such Incremental Term Loan, the determination of "*Required Lenders*" shall thereafter include the aggregate outstanding principal balance of such Incremental Term Loan.

"<u>*Incremental Term Loan Commitment Percentage*</u>" shall mean, with respect to each Lender at any time and for any Incremental Term Loan, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the *sum of* (i) the amount of such Lender's Incremental Term Loan Commitment (if any) in respect of such Incremental Term Loan in effect at such time, *plus* (ii) the aggregate principal balance of the portion of such Incremental Term Loan advanced by such Lender that is outstanding at such time; and (b) the *denominator* of which is the *sum of* (i) the aggregate amount of the Incremental Term Loan Commitments of all of the Lenders, taken together, in respect of such Incremental Term Loan in effect at such time, *plus* (ii) the aggregate outstanding principal balance of such Incremental Term Loan at such time.

"<u>*Indebtedness*</u>" shall mean, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Funded Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) net obligations under any Swap Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Guarantees in respect of Indebtedness of another Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Indebtedness of the types referred to in <u>clauses (a</u>) through <u>(c)</u> above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or joint venturer, unless such Indebtedness is expressly made non-recourse to such Person.

For purposes hereof, the amount of Indebtedness shall be determined based on the Swap Termination Value in the case of net obligations under any Swap Agreement pursuant to <u>clause (b</u>) above.

"<u>*Indemnified Taxes*</u>" shall mean: (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by, or on account of, any obligation of any Credit Party under any Credit Document; and (b) to the extent *not* otherwise described in <u>clause (a</u>), Other Taxes.

"*Indemnitee*" shall have the meaning specified for such term in <u>Section</u> <u>11.2(b</u>).

"<u>*Insurance Regulatory Authority*</u>" shall mean, with respect to any Regulated Entity, the insurance department or similar Governmental Authority charged with regulating insurance companies or insurance holding companies, in its jurisdiction of domicile and, to the extent that it has regulatory authority over such Regulated Entity, in each other jurisdiction in which such Regulated Entity conducts business or is licensed to conduct business.

"<u>*Intellectual Property*</u>" shall mean all trademarks, service marks, trade names, copyrights, patents, patent rights, franchises related to intellectual property, licenses related to intellectual property and other intellectual property rights.

"<u>*Interest Payment Date*</u>" shall mean, with respect to: (a) any Base Rate Loan and any Swingline Loan, (i) the last Business Day of each calendar quarter, commencing on the first (1<sup>st</sup>) such date to occur after the Effective Date, (ii) the Revolving Commitment Termination Date, (iii) the DDTL Commitment Termination Date, and (iv) the applicable Maturity Date therefor; and (b) any SOFR Loan, (i) the last day

------

of each Interest Period applicable to such Loan, <u>provided</u>, <u>that</u>, in the case of each Interest Period of longer than three (3) months "*Interest Payment Date*" shall also include each date that is three (3) months, or an integral multiple thereof, after the commencement of such Interest Period, (ii) the Revolving Commitment Termination Date, (iii) the DDTL Commitment Termination Date, and (iv) the applicable Maturity Date therefor.

"<u>*Interest Period*</u>" shall mean, in connection with a SOFR Loan, an interest period of one (1), three (3) or six (6) months (in each case, subject to availability), as selected by the Borrower in the applicable Funding Notice or Conversion / Continuation Notice, (a) initially, commencing on the Credit Date or Conversion / Continuation Date thereof, as the case may be, and (b) thereafter, commencing on the day on which the immediately preceding Interest Period expires, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if an Interest Period would otherwise expire on a day that is *not* a Business Day, such Interest Period shall expire on the next succeeding Business Day unless no further Business Day occurs in such month, in which case, such Interest Period shall expire on the immediately preceding Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall, subject to <u>clause (iii</u>) below, end on the last Business Day of a calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no Interest Period with respect to any Term Loan shall extend beyond any principal amortization payment date, except to the extent that the portion of such Term Loan that is comprised of SOFR Loans that is expiring prior to the applicable principal amortization payment date *equals* or *exceeds* the amount of the principal amortization payment then due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) no Interest Period with respect to any portion of the Revolving Loans shall extend beyond the Revolving Commitment Termination Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no Interest Period with respect to any portion of the Delayed Draw Term Loan shall extend beyond the DDTL Commitment Termination Date.

"<u>*Interest Rate Determination Date*</u>" shall mean, with respect to any Interest Period, the date that is two (2) Business Days prior to the first (1<sup>st</sup>) day of such Interest Period.

"<u>*Internal Revenue Code*</u>" shall mean the Internal Revenue Code of 1986.

"<u>*Investment*</u>" shall mean, as to any Person, any direct or indirect acquisition of or relating to, or investment by, such Person (including pursuant to any merger with any Person that was *not* a Wholly Owned Subsidiary prior to such merger), whether by means of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the purchase or other acquisition of Equity Interests of another Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such other Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an Acquisition.

------

For purposes of calculating compliance with any of the Financial Covenants (and, for purposes of any calculations substantially based on, or derivative from, such compliance), the amount of any Investment shall be deemed to be the amount *actually* invested, without adjustment for subsequent increases or decreases in the value of such Investment. For the avoidance of doubt, any forgiveness (in whole or in part) by the Credit Parties (or any of them) of any fees otherwise owed by, or on behalf of, any Regulated Entity, on the one hand, to, or for the benefit of, the Credit Parties (or any of them), on the other hand, pursuant to any managing general agent, service company or attorney-in-fact agreement between any such Regulated Entity, on the one hand, and the Credit Parties (or any of them), on the other hand, shall, in any such case of the foregoing, constitute an "*Investment*" by such Credit Party or Credit Parties (as applicable) in such Regulated Entity, in the aggregate amount of such fees that are so forgiven.

"<u>*Involuntary Disposition*</u>" shall mean the receipt by any Credit Party, any Subsidiary, or any other Regulated Entity of any cash insurance proceeds or condemnation awards payable by reason of theft, loss, physical destruction or damage, taking or similar event with respect to any of its Property.

"<u>*IRS*</u>" shall mean the United States Internal Revenue Service.

"<u>*ISP*</u>" shall mean, with respect to any Letter of Credit, the "International Standby Practices 1998" published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance of such Letter of Credit).

"*<u>Issuance Notice</u>*" shall mean an Issuance Notice substantially in the form of <u>Exhibit 2.3</u>.

"<u>*Issuer Documents*</u>" shall mean with respect to any Letter of Credit, the Letter of Credit Application, and any other document, agreement and instrument entered into by the Issuing Bank and any Credit Party, any Subsidiary or any other Regulated Entity, or otherwise in favor of the Issuing Bank and relating to such Letter of Credit.

"<u>*Issuing Bank*</u>" shall mean Regions in its capacity as issuer of Letters of Credit hereunder, together with its permitted successors and assigns in such capacity.

"<u>*Junior Debt*</u>" shall mean any Funded Debt of any Credit Party, Subsidiary or other Regulated Entity that is: (a) unsecured; (b) secured by any or all of the Collateral and subordinated in respect of lien priority to the Liens granted in favor of the Collateral Agent, for the benefit of the holders of the Obligations; or (c) subordinated in right of payment to the prior payment of any or all of the Obligations.

"<u>*Latest Maturity Date*</u>" shall mean, as of any date of determination, the *latest* to occur of: (a) the Revolving Commitment Termination Date; (b) the DDTL Commitment Termination Date; and (c) the latest Maturity Date applicable to any Term Loan.

"<u>*Leasehold Property*</u>" shall mean any leasehold interest of any Credit Party, as lessee or tenant, in any Real Estate Asset, or any Property right pursuant to a lease, rental, easement, servitude or similar agreement, however termed, in each case now held or hereafter acquired.

"<u>*Lenders*</u>" shall mean, collectively, each financial institution with a Commitment, together with its successors and permitted assigns. The initial Lenders as of the Effective Date are identified on the signature pages to this Agreement.

"<u>*Letter of Credit*</u>" shall mean, collectively: (a) any standby letter of credit issued under this Agreement; and (b) the Existing Letters of Credit.

------

"<u>*Letter of Credit Application*</u>" shall mean an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the Issuing Bank.

"<u>*Letter of Credit Borrowing*</u>" shall mean any Credit Extension resulting from a drawing under any Letter of Credit that has *not* been reimbursed or refinanced as a Borrowing of Revolving Loans.

"<u>*Letter of Credit Fees*</u>" shall have the meaning specified for such term in <u>Section</u> <u>2.10(b)(i</u>).

"<u>*Letter of Credit Obligations*</u>" shall mean, at any time, the *sum of*: (a) the maximum amount available to be drawn under Letters of Credit then outstanding, assuming compliance with all requirements for drawings referenced therein; *plus* (b) the aggregate amount of all drawings under Letters of Credit that have *not* been reimbursed by the Borrower, including Letter of Credit Borrowings. For all purposes of this Agreement, (i) amounts available to be drawn under Letters of Credit will be calculated as provided in <u>Section</u> <u>1.3(i</u>), and (ii) if a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be "outstanding" in the amount so remaining available to be drawn.

"<u>*Letter of Credit Sublimit*</u>" shall mean, as of any date of determination, the aggregate unused amount of the Aggregate Revolving Commitments then in effect.

"<u>*Lien*</u>" shall mean: (a) any lien, mortgage, pledge, assignment, security interest, charge or encumbrance of any kind (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, and any lease or license in the nature thereof) and any option, trust or other preferential arrangement having the practical effect of any of the foregoing; and (b) in the case of Securities, any purchase option, call or similar right of a third party with respect to such Securities.

"<u>*Liquidity*</u>" shall mean, as of any date of determination, the *sum of*: (a) Unrestricted Cash as of such date; *plus* (b) the aggregate amount actually available to be drawn by the Borrower under the Aggregate Revolving Commitments on such date.

"<u>*Loan*</u>" shall mean any Revolving Loan, any Swingline Loan or any Term Loan, and the Base Rate Loans and SOFR Loans comprising such Loans.

"<u>*Margin Stock*</u>" shall have the meaning specified for such term in Regulation U of the Federal Reserve Board, as in effect from time to time.

"<u>*Master Agreement*</u>" shall have the meaning specified for such term in the definition of "*Swap Agreement*" below.

"<u>*Material Adverse Effect*</u>" shall mean any effect, event, condition, action, omission, change or state of facts that, individually or in the aggregate, has resulted in, or could reasonably be expected to result in, a material adverse effect with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the business operations, assets, Property or financial condition of the Credit Parties, Subsidiaries and other Regulated Entities, taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the ability of the Credit Parties, taken as a whole, to fully and timely perform the

Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the legality, validity, binding effect, or enforceability against a Credit Party of any Credit Document to which it is a party;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the value of the whole, or any material part, of the Collateral, or the priority of Liens in the whole, or any material part, of the Collateral in favor of the Collateral Agent, for the benefit of the holders of the Obligations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the material rights, remedies and benefits available to, or conferred upon, the Agent, any Lender, and/or any other holder of Obligations under any Credit Document.

"<u>*Material Contract*</u>" shall mean: (a) any managing general agent or service company agreement entered into between any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the one hand, and any Regulated Entity, on the other hand; (b) any attorney-in-fact agreement entered into between any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the one hand, and any Qualifying Reciprocal Entity, on the other hand; and (c) any other Contractual Obligation to which any Credit Party, any Subsidiary or any other Regulated Entity, or any of their respective Properties, are bound (other than those evidenced by the Credit Documents) pursuant to which a default, breach or termination thereof could reasonably be expected to result in a Material Adverse Effect.

"<u>*Material IP Rights*</u>" shall mean all Intellectual Property of the Credit Parties, Subsidiaries and other Regulated Entities, whether now owned or licensed or hereafter acquired, licensed or developed, that is material to the ability of the Credit Parties, taken as a whole, to generate revenue or that is otherwise material to the conduct of business of the Credit Parties, taken as a whole.

"<u>*Material Subsidiary*</u>" shall mean, as of any date of determination, each Subsidiary that is *not* an Immaterial Subsidiary.

"<u>*Maturity Date*</u>" shall mean: (a) with respect to the Term Loan A and the Delayed Draw Term Loan, the *earlier* to occur of (i) the date that is the fifth (5<sup>th</sup>) annual anniversary of the Effective Date (or, if such date is *not* a Business Day, the immediately prior Business Day), and (ii) the date on which the aggregate outstanding principal balance(s) of the Term Loan A and/or the Delayed Draw Term Loan (as applicable) have been declared, or automatically have become, due and payable pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise); and (b) with respect to any Incremental Term Loan, the *earlier* to occur of (i) the maturity date identified in the applicable Incremental Facility Agreement establishing such Incremental Term Loan, and (ii) the date on which the aggregate outstanding principal balance of such Incremental Term Loan has been declared, or automatically has become, due and payable pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise).

"<u>*Moody's*</u>" shall mean Moody's Investor Services, Inc., together with its successors.

"<u>*Mortgages*</u>" shall mean the mortgages, deeds of trust or deeds to secure debt that purport to grant to the Collateral Agent, for the benefit of the holders of the Obligations, a security interest in any Real Estate Asset.

"<u>*Multiemployer Plan*</u>" shall mean any "multiemployer plan" as defined in Section 3(37) of ERISA which is sponsored, maintained or contributed to by, or required to be contributed to by, any of the Credit Parties, Subsidiaries or Regulated Entities, or any of their respective ERISA Affiliates, or with respect to which any of the Credit Parties, Subsidiaries or Regulated Entities, or any of their respective ERISA Affiliates, previously sponsored, maintained or contributed to or was required to contributed to, and still has liability.

"<u>*NAIC*</u>" shall mean the National Association of Insurance Commissioners (or any successor to any of its principal functions).

------

"<u>*Net Cash Proceeds*</u>" shall mean the aggregate proceeds paid in cash or Cash Equivalents received by any Credit Party, any Subsidiary or any other Regulated Entity in connection with any Specified Transaction, net of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) direct costs incurred or estimated costs for which reserves are maintained, in connection therewith (including legal, accounting and investment banking fees and expenses, sales commissions and underwriting discounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) estimated Taxes paid or payable (including sales, use or other transactional taxes and any net marginal increase in income taxes) as a result thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the amount required to retire any Indebtedness secured by a Lien on related Property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reasonable reserves in accordance with GAAP for any liabilities or indemnification payments (fixed or contingent) attributable to seller's indemnities and representations and warranties to purchasers and other retained liabilities in respect of any Asset Sale undertaken by any Credit Party, any Subsidiary or any other Regulated Entity; <u>provided</u>, <u>that</u>, to the extent that any such amount ceases to be so reserved (other than any reduction in such reserve to make a payment in respect of such liability or indemnification obligations), the amount thereof shall be deemed to be Net Cash Proceeds of such Asset Sale at such time.

For purposes hereof, "N*et Cash Proceeds*" includes any cash or Cash Equivalents received upon the disposition of any non-cash consideration received by any Credit Party, any Subsidiary or any other Regulated Entity in any Specified Transaction.

"*<u>Non-Consenting Lender</u>*" shall have the meaning specified for such term in <u>Section</u> <u>2.17</u>.

"<u>*Non-Defaulting Lender*</u>" shall mean, at any time, each Lender that is *not* a Defaulting Lender at such time.

"<u>*Non-Qualifying Reinsurer*</u>" shall mean any reinsurer that is *not* a Qualifying Reinsurer.

"<u>*Note*</u>" shall mean a promissory note in the form of <u>Exhibit 2.5</u> issued by the Borrower in favor of a Lender, as such promissory note may be amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing from time to time.

"<u>*Notice*</u>" shall mean a Funding Notice, an Issuance Notice or a Conversion / Continuation Notice.

"<u>*Obligations*</u>" shall mean all obligations, indebtedness and other liabilities of every nature of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Credit Party from time to time owing to the Agents (including any former Agents), the Issuing Bank, the Lenders (including former Lenders in their capacity as such) or any of them, the Qualifying Swap Providers and the Qualifying Treasury Management Banks under any Credit Document, any Secured Swap Agreement or any Secured Treasury Management Agreement, and (without duplication)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each Subsidiary and other Regulated Entity from time to time owing to the Qualifying Swap Providers and the Qualifying Treasury Management Banks under any Secured Swap Agreement or any Secured Treasury Management Agreement,

------

in each case of the foregoing <u>clause (a)</u> and <u>(b)</u>, together with all renewals, extensions, modifications or refinancings thereof, whether for principal, interest (including fees and interest which, but for the filing of a petition in bankruptcy with respect to such Credit Party, Subsidiary or other Regulated Entity, would have accrued on any Obligation, whether or not a claim is allowed against such Credit Party, Subsidiary or other Regulated Entity for such interest or fees in the related bankruptcy proceeding), reimbursement of amounts drawn under Letters of Credit, payments for early termination of Swap Agreements, fees, expenses, indemnification or otherwise, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Erroneous Payment Subrogation Rights;

<u>provided</u>, <u>that</u>, the "*<u>Obligations</u>*" of a Credit Party, Subsidiary or other Regulated Entity shall *exclude* any Excluded Swap Obligations with respect to such Credit Party, Subsidiary or other Regulated Entity. Notwithstanding anything to the contrary contained herein or under any of the other Credit Documents, the obligations of any Credit Party, any Subsidiary or any other Regulated Entity under any Secured Swap Agreement or any Secured Treasury Management Agreement shall be secured and guaranteed pursuant to the Credit Documents only to the extent that, and for so long as, the Obligations (other than any Obligations with respect to Secured Swap Agreements and Secured Treasury Management Agreements) are so secured and guaranteed.

"<u>*OFAC*</u>" shall mean the U.S. Department of the Treasury's Office of Foreign Assets Control.

"<u>*Organizational Documents*</u>" shall mean, with respect to: (a) any corporation, its certificate or articles of incorporation or organization, as amended, and its by-laws, as amended; (b) any limited partnership, its certificate of limited partnership, as amended, and its partnership agreement, as amended; (c) any general partnership, its partnership agreement, as amended; and (d) any limited liability company, its articles of organization, certificate of formation or comparable documents, as amended, and its operating agreement, as amended. In the event any term or condition of this Agreement or any other Credit Document requires any Organizational Document to be certified by a secretary of state or similar governmental official, the reference to any such "*Organizational Document*" shall only be to a document of a type customarily certified by such governmental official.

"<u>*Original Closing Date*</u>" shall have the meaning specified for such term in the recitals hereto.

"<u>*Other Connection Taxes*</u>" shall mean, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Credit Document, or sold or assigned an interest in any Loan or Credit Document).

"<u>*Other Taxes*</u>" shall mean all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Credit Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to <u>Section</u> <u>2.17</u>).

"<u>*Participant*</u>" shall have the meaning specified for such term in <u>Section 11.5(d</u>).

"*<u>Participant Register</u>*" shall have the meaning specified for such term in <u>Section 11.5(d</u>).

"*<u>Patriot Act</u>*" shall have the meaning specified for such term in <u>Section 6.15(f</u>).

------

"*<u>Payment Event of Default</u>*" shall mean an Event of Default pursuant to <u>Section 9.1(a</u>).

The "<u>*Payment in Full*</u>" of the Obligations (or any specified Class thereof), and the Obligations (or any specified Class thereof) being "<u>*Paid in Full*</u>", shall, in each case, mean the expiration or earlier termination of all of the Commitments (or of all of the Commitments of the specified Class thereof, as applicable), the payment in full, in immediately available funds, of all of the Obligations (or such specified Class thereof), and, as applicable, the expiration or earlier termination (or Cash Collateralization to the satisfaction of the Issuing Bank) of all Letters of Credit (in each case, without any pending draw) and the reimbursement of all other Letter of Credit Obligations, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) contingent indemnification and expense reimbursement Obligations, in each case of this <u>clause (a</u>), *solely* to the extent that no claim(s) giving rise thereto have been asserted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) obligations, indebtedness and other liabilities under any Secured Swap Agreement or any Secured Treasury Management Agreement owed by any Credit Party, any Subsidiary, or any other Regulated Entity to any Qualifying Swap Provider or any Qualifying Treasury Management Bank (as applicable), *solely* to the extent that security, guarantee and/or other arrangements satisfactory to such Qualifying Swap Provider or such Qualifying Treasury Management Bank with respect to such obligations, indebtedness and other liabilities shall have been made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) contingent Obligations for which (i) Cash Collateral, (ii) backstopping letters of credit, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) other arrangements have been made, in each case of the foregoing <u>clauses (c)(i)</u> through <u>(c)(iii)</u>, that are satisfactory to the holder(s) of such contingent Obligations.

"*<u>Payment Recipient</u>*" shall have the meaning specified for such term in <u>Section 10.11(a)</u>.

"<u>*PBGC*</u>" shall mean the Pension Benefit Guaranty Corporation or any successor thereto.

"<u>*Pension Plan*</u>" shall mean any "employee pension benefit plan" as defined in Section 3(2) of ERISA other than a Multiemployer Plan, which is subject to Section 412 of the Internal Revenue Code or Section 302 of ERISA and which is sponsored, maintained or contributed to by, or required to be contributed to by, any Credit Party, any Subsidiary or any other Regulated Entity, or with respect to which any Credit Party, any Subsidiary or any other Regulated Entity previously sponsored, maintained or contributed to, or was required to contribute to, and still has liability.

"<u>*Periodic Term SOFR Determination Date*</u>" shall have the meaning specified for such term in the definition of "*Term SOFR*" below.

"<u>*Permitted Acquisition*</u>" shall mean (x) any portfolio investment made by any Regulated Entity in the ordinary course of business, as well as (y) any Acquisition that, *solely* in the case of this <u>clause (y</u>), satisfies each of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Property to be acquired (or the Property of the Person to be acquired) in such Acquisition is a business, or is used or useful in a business, permitted under <u>Section</u> <u>8.14</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the board of directors (or other comparable governing body) of the Person to be acquired (or owning the Property to be acquired) shall have approved the Acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) both immediately *before* and immediately *after giving* effect to such Acquisition (and to the payment of all cash consideration and any incurrence or assumption of Indebtedness in connection

------

therewith, but without giving effect to any "netting" of the cash proceeds thereof against Consolidated Funded Debt):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default shall exist and be continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the representations and warranties made by each of the Credit Parties in each Credit Document to which they are a party shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) as if made on, and as of, the date of consummation of such Acquisition (after giving effect thereto), except to the extent that such representations and warranties expressly relate to an earlier date, in which case, such representations and warranties shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Credit Parties shall be in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis, shall be *at least* 0.25 to 1.0 (a "*quarter turn*") *less than* the maximum Consolidated Leverage Ratio then permitted under <u>Section</u> <u>8.8(a</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) there shall be at least Ten Million Dollars ($10,000,000) of Liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the aggregate cash and non-cash consideration (including any assumption of Indebtedness, deferred purchase price and any Earn Out Obligations and any equity consideration) paid by the Credit Parties, Subsidiaries and other Regulated Entities (and including, for purposes of clarity, any such Captive Reinsurance Companies) for all such Acquisitions occurring during the term of this Agreement shall *not exceed* twenty-five percent (25.0%) of the consolidated stockholders' equity of the Credit Parties, Subsidiaries and other Regulated Entities (determined based on the consolidated financial statements most recently delivered to the Administrative Agent pursuant to this Agreement at the time of consummation of any such Acquisition); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *at least* five (5) Business Days prior to the consummation of such Acquisition, an Authorized Officer of the Borrower shall provide a certificate, in form and detail reasonably satisfactory to the Administrative Agent, affirming compliance with each of the items set forth in <u>clauses (a</u>) through (<u>d</u>) above.

"<u>*Permitted Holders*</u>" shall mean, collectively: (a) each of (i) David Flitman, an individual resident of the state of Florida, and (ii) Steven Hoffman, an individual resident of the state of Florida; and (b) any trust or other estate-planning vehicle established for the benefit of (i) any such individual referred to in the foregoing <u>clause (a</u>), or (ii) any other individual having a relationship by blood (to the second (2<sup>nd</sup>) degree of consanguinity), marriage, or adoption to any such individual referred to in the foregoing <u>clause (a</u>), and, in each case of the foregoing <u>clauses (b)(i)</u> and <u>(b)(ii)</u>, in respect of which such individual referred to in the foregoing <u>clause (a</u>) serves as sole trustee or in a similar capacity.

"*<u>Permitted Liens</u>*" shall mean each of the Liens permitted pursuant to <u>Section 8.2</u>.

------

"<u>*Permitted Refinancing*</u>" shall mean, with respect to any existing Indebtedness, any extension, renewal, refinancing and/or replacement of any such Indebtedness, so long as any such extension, renewal, refinancing and/or replacement of such Indebtedness:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has market terms and conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has a maturity date that is *later than* that of the Indebtedness being extended, renewed or refinanced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) has an average life to maturity that is *greater than* that of the Indebtedness being extended, renewed or refinanced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) does *not* include an obligor that was *not* an obligor with respect to the Indebtedness being extended, renewed or refinanced, unless such obligor is also a Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) remains subordinated if, and to the same extent that, the Indebtedness being extended, renewed or refinanced was subordinated to the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) remains unsecured if the Indebtedness being extended, renewed or refinanced was unsecured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) does *not exceed* in a principal amount the principal amount of the Indebtedness being renewed, extended, refinanced or replaced, *plus* accrued and unpaid interest and reasonable fees and expenses, premiums and penalties incurred in connection therewith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) is *not* incurred, created or assumed if any Default or Event of Default then exists or would arise therefrom.

"<u>*Person*</u>" shall mean any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"*Platform*" shall have the meaning specified for such term in <u>Section 11.1(d</u>).

"<u>*Prime Rate*</u>" shall mean the per annum rate which the Administrative Agent publicly announces from time to time to be its prime lending rate, as in effect from time to time. The Administrative Agent's prime lending rate is a reference rate and does *not* necessarily represent the lowest or best rate charged to customers.

"<u>*Principal Office*</u>" shall mean, for the Agents, the Swingline Lender and the Issuing Bank, such Person's "*Principal Office*" as described on <u>Appendix B</u>, or such other office as it may from time to time designate in writing to the Borrower and each Lender.

"<u>*Pro Forma Basis*</u>" shall mean, with respect to any Specified Transaction, whether actual or proposed, for purposes of determining compliance with any of the Financial Covenants (or with any condition(s) and/or test(s) based on such compliance that are subject to calculation on a "*Pro Forma Basis*" as indicated in this Agreement or any other Credit Document, including for purposes of determining the Applicable Margin), Consolidated EBITDA and/or Combined Statutory Surplus (or with any condition(s) and/or test(s) based on Consolidated EBITDA and/or Combined Statutory Surplus that are subject to calculation on a "*Pro Forma Basis*" as indicated in this Agreement or any other Credit Document), that such actual or proposed Specified Transaction shall be deemed to have occurred on, and as of, (I) the first (1<sup>st</sup>) day of the most recently ended Trailing Period, in the case of either of the Financial

------

Covenants set forth in <u>Section 8.8(a</u>) or <u>Section 8.8(b</u>), or (II) the first (1<sup>st</sup>) day of the most recently ended Fiscal Quarter, in the case of the Financial Covenant set forth in <u>Section</u> <u>8.8(c</u>) (or, in any such case of the foregoing <u>clauses (I</u>) and (<u>II</u>), on, and as of, the first (1<sup>st</sup>) day of such other historical period of time as may be expressly specified in this Agreement or another Credit Document for a specific purpose), and <u>further</u>, the following pro forma adjustments shall be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Asset Sale or Involuntary Disposition, income statement and cash flow statement items (whether positive or negative) attributable to the Property disposed of shall be *excluded* to the extent relating to any period occurring *prior* to the date of such Asset Sale or Involuntary Disposition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Acquisition, income statement items attributable to the Person or Property acquired shall be *included* to the extent relating to any period applicable in such calculations to the extent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) such items are *not* otherwise included in such income statement items for the Credit Parties, Subsidiaries and other Regulated Entities in accordance with GAAP or in accordance with any defined terms set forth in <u>Section</u> <u>1.1</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) such items are supported by financial statements or other information satisfactory to the Administrative Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Indebtedness incurred or assumed by any Credit Party, any Subsidiary, or any other Regulated Entity (including the Person or Property acquired) in connection with such transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall be deemed to have been incurred as of the first (1<sup>st</sup>) day of the applicable period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if such Indebtedness has a floating or formula rate, shall have an implied rate of interest for the applicable period for purposes of this definition determined by utilizing the rate that is, or would be, in effect with respect to such Indebtedness as of the relevant date of determination.

"<u>*Probable Maximum Loss*</u>" shall have the meaning specified and as used by each applicable Insurance Regulatory Authority.

"<u>*Property*</u>" shall mean an interest of any kind in any property or asset, whether real, personal or mixed, and whether tangible or intangible.

"<u>*PTE*</u>" shall mean a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"<u>*QFC*</u>" shall have the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. §–5390(c)(8)(D).

"*<u>QFC Credit Support</u>*" shall have the meaning specified for such term in <u>Section 11.23</u>.

"<u>*Qualified ECP Guarantor*</u>" shall mean, in respect of any Swap Obligation, each Credit Party that, at the time the Guaranty (or grant of security interest, as applicable) becomes or would become

------

effective with respect to such Swap Obligation, has total assets *exceeding* Ten Million Dollars ($10,000,000) or such other Credit Party as constitutes an "eligible contract participant" under the Commodity Exchange Act and which may cause another Person to qualify as an "eligible contract participant" with respect to such Swap Obligation at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

"<u>*Qualifying IPO*</u>" shall mean the issuance and sale by the Borrower of its common Equity Interests in an underwritten primary public offering (other than a public offering pursuant to a registration statement on SEC Form S-8) pursuant to an effective registration statement filed with the SEC in accordance with the U.S. Securities Act of 1933, as amended from time to time, and any successor statute (whether alone or in connection with a secondary public offering).

"<u>*Qualifying Reciprocal Entity*</u>" shall mean, collectively: (a) each of (i) Cajun Underwriters Reciprocal Exchange, and (ii) Manatee Insurance Exchange; and (b) any reciprocal insurance exchange or other similar entity (other than a Regulated Subsidiary or other risk-bearing insurance company Subsidiary) in respect of which a Credit Party whose Equity Interests are pledged as Collateral in accordance with <u>Section</u> <u>7.12(a</u>) is, at all times during the term of this Agreement after the formation of such reciprocal insurance exchange or other similar entity, duly appointed as the attorney-in-fact of such reciprocal insurance exchange or other similar entity pursuant to documentation reasonable acceptable to the Administrative Agent.

"<u>*Qualifying Reinsurer*</u>" shall mean: (a) the Florida Hurricane Catastrophe Fund; (b) any Person (which may include Affiliates of any Credit Party, including Captive Reinsurance Companies) providing reinsurance services with *at least* an "A–" financial strength rating from A.M. Best Company (or any successor in interest thereto); or (c) any Person (which may include Affiliates of any Credit Party, including Captive Reinsurance Companies) providing reinsurance services that has collateralized its obligations to the Regulated Entities at a level consistent with NAIC's requirements for credit on Schedule F of the statutory financial statements of the Regulated Entities.

"<u>*Qualifying Swap Provider*</u>" shall mean: (a) any of Regions and its Affiliates; and (b) any Person that (i) at the time it enters into a Swap Agreement with any Credit Party, any Subsidiary or any other Regulated Entity, is a Lender or an Affiliate of a Lender, or (ii) in the case of a Swap Agreement with any Credit Party, any Subsidiary or any other Regulated Entity in effect on or prior to the Effective Date, is, as of the Effective Date or within thirty (30) calendar days thereafter, a Lender or an Affiliate of a Lender, and, in each such case under this <u>clause (b</u>), shall have provided a Secured Party Designation Notice to the Administrative Agent. For purposes hereof, the term "*Lender*" shall be deemed to include the Administrative Agent.

"<u>*Qualifying Treasury Management Bank*</u>" shall mean: (a) any of Regions and its Affiliates; and (b) any Person that (A) at the time it enters into a Treasury Management Agreement, is a Lender or an Affiliate of a Lender, or (B) in the case of a Treasury Management Agreement in effect on or prior to the Effective Date, is, as of the Effective Date or within thirty (30) calendar days thereafter, a Lender or an Affiliate of a Lender, and, in each such case under this <u>clause (b</u>), shall have provided a Secured Party Designation Notice to the Administrative Agent. For purposes hereof, the term "*Lender*" shall be deemed to include the Administrative Agent.

"<u>*RCM*</u>" shall mean Regions Capital Markets, a division of Regions (together with its successors).

"<u>*Real Estate Asset*</u>" shall mean, at any time of determination, any interest (fee, leasehold or otherwise) then owned by any Credit Party, any Subsidiary or any other Regulated Entity in any real property.

------

"<u>*Recipient*</u>" shall mean (a) the Administrative Agent, (b) the Collateral Agent, (c) any Lender, and (d) the Issuing Bank, as applicable.

"*<u>Refunded Swingline Loans</u>*" shall have the meaning specified for such term in <u>Section 2.2(b)(iii</u>).

"<u>*Regions*</u>" shall have the meaning specified for such term in the introductory paragraph to this Agreement.

"*<u>Register</u>*" shall have the meaning specified for such term in <u>Section 11.5(c</u>).

"<u>*Regulated Entity*</u>" shall mean, collectively: (a) each Qualifying Reciprocal Entity; and (b) each Regulated Subsidiary.

"<u>*Regulated Subsidiary*</u>" shall mean: (a) each of (i) Safepoint Insurance Company, and (ii) each Captive Reinsurance Company; and (b) any Domestic Subsidiary (i) that is a risk retention entity subject to regulation by a Governmental Authority and/or required by Applicable Laws to utilize SAP and submit them to a Governmental Authority, and (ii) with respect to which the Administrative Agent has received prior written notification that such Domestic Subsidiary constitutes a Regulated Subsidiary.

"*<u>Reimbursement Date</u>*" shall have the meaning specified for such term in <u>Section 2.3(d</u>).

"<u>*Related Parties*</u>" shall mean, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"<u>*Release*</u>" shall mean any release, spill, emission, leaking, pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material into the indoor or outdoor environment (including the abandonment or disposal of any barrels, containers or other closed receptacles containing any Hazardous Material), including the movement of any Hazardous Material through the air, soil, surface water or groundwater.

"<u>*Relevant Governmental Body*</u>" shall mean the Federal Reserve Board and/or the FRBNY, or a committee officially endorsed or convened by the Federal Reserve Board and/or the FRBNY, or any successor thereto.

"*<u>Removal Effective Date</u>*" shall have the meaning specified for such term in <u>Section 10.6(b</u>).

"<u>*Required DDTL Lenders*</u>" shall mean, as of any date of determination, *at least* two (2) unaffiliated Lenders (unless there is only one (1) Lender at such time, in which case, such Lender) having Total Credit Exposures of the types described in clauses (a) (*solely* with respect to the Delayed Draw Term Loan) and (c) of the definition of "*Total Credit Exposure*" below, taken together, representing *more than* fifty percent (50.0%) of the *sum* of the Total Credit Exposures of such types of all of the Lenders at such time, taken together; <u>provided</u>, <u>that</u>, the Total Credit Exposure of any Defaulting Lender shall be *excluded* for purposes of making a determination of Required DDTL Lenders.

"<u>*Required Lenders*</u>" shall mean, as of any date of determination, at *least two* (2) unaffiliated Lenders (unless there is only one (1) Lender at such time, in which case, such Lender) having Total Credit Exposures, taken together, representing *more than* fifty percent (50.0%) of the *sum* of the Total Credit Exposures of all of the Lenders at such time, taken together; <u>provided</u>, <u>that</u>, the Total Credit Exposure of any Defaulting Lender shall be *excluded* for purposes of making a determination of Required Lenders.

------

"<u>*Required Revolving Lenders*</u>" shall mean, as of any date of determination, *at least two* (2) unaffiliated Lenders (unless there is only one (1) Lender at such time, in which case, such Lender) having Total Credit Exposures of the types described in clauses (b) and (d) of the definition of "*Total Credit Exposure*" below, taken together, representing *more than* fifty percent (50.0%) of the *sum of* the Total Credit Exposures of such types of all of the Lenders at such time, taken together; <u>provided</u>, <u>that</u>, the Total Credit Exposure of any Defaulting Lender shall be *excluded* for purposes of making a determination of Required Revolving Lenders.

"*<u>Resignation Effective Date</u>*" shall have the meaning specified for such term in <u>Section 10.6(a</u>).

"<u>*Resolution Authority*</u>" shall mean an EEA Resolution Authority, or, with respect to any UK Financial Institution, a UK Resolution Authority.

"<u>*Restricted Payment*</u>" shall mean any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in any Credit Party or Subsidiary, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests, or on account of any return of capital to such Person's stockholders, partners or members (or the equivalent Person thereof), or any setting apart of funds or Property for any of the foregoing (but *not* including, for purposes of clarity, any dividend or other distribution (whether in cash, securities or other Property) made by any Qualifying Reciprocal Entity to any of its policyholders).

"*<u>Returned Reinsurance Investments</u>*" shall mean, with respect to any Investment (the "*<u>original Investment</u>*" for a Returned Reinsurance Investment) made by the Credit Parties in a Captive Reinsurance Company during the treaty period for an applicable reinsurance agreement that is used (or the Net Cash Proceeds of which are used) by such Captive Reinsurance Company to provide cash collateral in connection with such reinsurance agreement, the portion of the Net Cash Proceeds of such original Investment that are returned to the Credit Parties in satisfaction of such original Investment by *not later than* the date that is ninety (90) calendar days after the end of such treaty period.

"<u>*Revolver Availability Period*</u>" shall mean the period from, and including, the Effective Date to, but excluding, the Revolving Commitment Termination Date.

"<u>*Revolving Commitment*</u>" shall mean, with respect to each Lender, the obligation of such Lender to advance (or to otherwise fund) its respective portion of principal under Revolving Loans from time to time made during the Revolver Availability Period pursuant to <u>Section</u> <u>2.1(a</u>) and to otherwise acquire participations in Letters of Credit and Swingline Loans in accordance with the terms of this Agreement, in an aggregate principal amount advanced (or otherwise funded or acquired) by such Lender *not to exceed* the applicable amount set forth with respect to such Lender as such Lender's "*Revolving Commitment*" on <u>Appendix A</u> (or in the applicable Assignment Agreement pursuant to which such Lender becomes a party to this Agreement after the Effective Date, as applicable) at any time outstanding, subject to any increase(s), adjustment(s) and/or reduction(s) pursuant to the terms and conditions of this Agreement.

"<u>*Revolving Commitment Percentage*</u>" shall mean, with respect to each Lender at any time, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the amount of such Lender's Revolving Commitment (if any) in effect at such time; and (b) the *denominator* of which is the Aggregate Revolving Commitment Amount in effect at such time. The Revolving Commitment Percentages of each Lender as of the Effective Date are set forth on <u>Appendix A</u>.

"<u>*Revolving Commitment Termination Date*</u>" shall mean the *earliest* to occur of: (a) the date that is the fifth (5<sup>th</sup>) annual anniversary of the Effective Date (or, if such date is *not* a Business Day, the

------

immediately prior Business Day); (b) the date on which the Borrower shall have provided written notice to the Administrative Agent of its election to terminate the Aggregate Revolving Commitments in accordance with <u>Section</u> <u>2.11(b</u>); and (c) the date on which the Aggregate Revolving Commitments shall have been terminated, and/or all amounts outstanding under this Agreement shall have been declared, or automatically have become, due and payable, in each case of the foregoing of this <u>clause (c</u>), pursuant to <u>Section</u> <u>9.2</u> (whether by acceleration or otherwise).

"<u>*Revolving Credit Exposure*</u>" shall mean, with respect to any Lender at any time, the *sum of*: (a) the aggregate outstanding principal balances of the respective portions of each then outstanding Revolving Loan advanced by such Lender, taken together, at such time; *plus* (b) the aggregate amount of such Lender's participation obligations in respect of Letters of Credit Obligations and Swingline Loans, taken together, at such time.

"<u>*Revolving Loan*</u>" shall mean a Loan made by the Lenders to the Borrower pursuant to <u>Section</u> <u>2.1(a</u>).

"<u>*Revolving Obligations*</u>" shall mean, collectively, the Revolving Loans, the Letter of Credit Obligations, and the Swingline Loans.

"<u>*S&P*</u>" shall mean Standard & Poor's, a Standard & Poor's Financial Services LLC business, together with its successors.

"<u>*Sale and Leaseback Transaction*</u>" shall mean, with respect to any Credit Party, any Subsidiary or any other Regulated Entity, any arrangement, directly or indirectly, with any Person (other than a Credit Party) whereby any such Person(s) shall sell or transfer any Property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such Property or other Property that it intends to use for substantially the same purpose(s) as the Property being sold or transferred.

"<u>*SAP*</u>" shall mean the statutory accounting practices prescribed or permitted by the insurance commissioner (or other similar authority) as of the Effective Date in the jurisdiction of incorporation or formation (as applicable) of an applicable Regulated Entity for the preparation of annual statements and other financial reports by insurance companies of the same type as such Regulated Entity.

"<u>*Sanctioned Country*</u>" shall mean (a) a country, a territory, or a government of a country or territory, (b) an agency of the government of a country or a territory, or (c) an organization directly or indirectly owned or controlled by a country, a territory or its government, in each case of the foregoing <u>clauses (a</u>) through (<u>c</u>), that is subject to Sanctions.

"<u>*Sanctioned Person*</u>" shall mean: (a) a Person named on the list of "Specially Designated Nationals" or any other Sanctions related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union or any European Union member state; (b) any Person operating, organized or resident in a Sanctioned Country; or (c) any Person owned or controlled by any such Person or Persons described in the foregoing <u>clauses (a</u>) or (<u>b</u>).

"<u>*Sanctions*</u>" shall mean economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by: (a) the U.S. government, including those administered by OFAC or the U.S. Department of State; (b) the United Nations Security Council; (c) the European Union; (d) any European Union member state; (e) His Majesty's Treasury of the United Kingdom; or (f) any other relevant sanctions authority.

------

"<u>*SEC*</u>" shall mean the United States Securities and Exchange Commission (or any successor to any of its principal functions).

"*<u>Secured Party Designation Notice</u>*" shall mean a notice in the form of <u>Exhibit 1.1</u> (or other writing in form and substance satisfactory to the Administrative Agent) from a Qualifying Swap Provider or a Qualifying Treasury Management Bank to the Administrative Agent that it holds Obligations entitled to share in the guaranties and collateral interests provided herein in respect of a Secured Swap Agreement or Secured Treasury Management Agreement, as appropriate.

"<u>*Secured Swap Agreement*</u>" shall mean any Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and a Qualifying Swap Provider, on the other hand. For the avoidance of doubt, a holder of Obligations in respect of a Secured Swap Agreement shall be subject to the provisions of <u>Section 9.3</u> and <u>Section 10.10</u>.

"<u>*Secured Swap Obligations*</u>" shall mean all obligations owing to a Qualifying Swap Provider in connection with any Secured Swap Agreement including any and all cancellations, buy backs, reversals, terminations or assignments of any Secured Swap Agreement, any and all renewals, extensions and modifications of any Secured Swap Agreement and any and all substitutions for any Secured Swap Agreement, including all fees, costs, expenses and indemnities, whether primary, secondary, direct, fixed or otherwise (including any monetary obligations incurred during the pendency of any bankruptcy or insolvency proceedings, regardless of whether allowed or allowable in such bankruptcy or insolvency proceedings), in each case, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising.

"<u>*Secured Treasury Management Agreement*</u>" shall mean any Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and a Qualifying Treasury Management Bank, on the other hand. For the avoidance of doubt, a holder of Obligations in respect of a Secured Treasury Management Agreement shall be subject to the provisions of <u>Section 9.3</u> and <u>Section 10.10</u>.

"*<u>Secured Treasury Management Obligations</u>*" shall mean all obligations owing to a Qualifying Treasury Management Bank under a Secured Treasury Management Agreement, including all fees, costs, expenses and indemnities, whether primary, secondary, direct, fixed or otherwise (including any monetary obligations incurred during the pendency of any bankruptcy or insolvency proceedings, regardless of whether allowed or allowable in such bankruptcy or insolvency proceedings), in each case, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising.

"<u>*Securities*</u>" shall mean any stock, shares, partnership interests, limited liability company interests, voting trust certificates, certificates of interest or participation in any profit-sharing agreement or arrangement (e.g., stock appreciation rights), options, warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as "securities" or any certificates of interest, shares or participations in temporary or interim certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing.

"<u>*Security Agreement*</u>" shall mean that certain Amended and Restated Security and Pledge Agreement, dated as of the Effective Date, given by the Credit Parties, as obligors, to the Collateral Agent, for the benefit of the holders of the Obligations, and any other pledge agreements or security agreements that may be given by any Person pursuant to the terms hereof, in each case, as the same may

------

be amended, restated, amended and restated, supplemented, replaced, and/or otherwise modified in writing from time to time.

"<u>*Securitization Transaction*</u>" shall mean any financing or factoring or similar transaction (or series of such transactions) entered by any Credit Party, any Subsidiary or any other Regulated Entity pursuant to which any such Person(s) may sell, convey or otherwise transfer, or grant a security interest in, accounts, payments, receivables, rights to future lease payments or residuals or similar rights to payment (the "<u>*Securitization Receivables*</u>") to a special purpose subsidiary or affiliate (a "*<u>Securitization Subsidiary</u>*") or any other Person.

"<u>*SOFR*</u>" shall mean, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator's Website on the immediately succeeding U.S. Government Securities Business Day; <u>provided</u>, <u>that</u>, if such published rate is subsequently corrected and provided by the SOFR Administrator, or on the SOFR Administrator's Website, within the *longer* of (i) one (1) hour of the time when such rate was first published, and (ii) the republication cut-off time for SOFR, if any, as specified by the SOFR Administrator in the applicable SOFR benchmark methodology, then "*SOFR*" shall instead mean such secured overnight financing rate for such Business Day subject to those corrections.

"<u>*SOFR Administrator*</u>" shall mean the FRBNY (or any successor administrator of the secured overnight financing rate).

"<u>*SOFR Administrator's Website*</u>" shall mean the website of the FRBNY accessible at (as of the Effective Date) <u>https://www.newyorkfed.org</u>, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

"<u>*SOFR-Based Rate*</u>" shall mean each of Term SOFR for any Interest Period and Daily Simple SOFR.

"<u>*SOFR Borrowing*</u>" shall mean a Borrowing, the Loans in respect of which bear interest at a rate determined by reference to Term SOFR for any available Interest Period, other than pursuant to clause (c) of the definition of "*Base Rate*" above.

"<u>*SOFR Loan*</u>" shall mean a Loan bearing interest at a rate determined by reference to Term SOFR for any available Interest Period, other than pursuant to clause (c) of the definition of "*Base Rate*" above.

"<u>*SOFR Reference Rate*</u>" shall mean the rate per annum determined by the Administrative Agent as the forward-looking term rate based on SOFR for an applicable tenor.

"*<u>Solvent</u>*" or "*<u>Solvency</u>*" shall mean, with respect to any Person as of a particular date, that on such date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such Person is able to pay its debts and other liabilities, contingent obligations and other commitments as they mature in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Person does *not* intend to, and does *not* believe that it will, incur debts or liabilities beyond such Person's ability to pay as such debts and liabilities mature in their ordinary course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such Person is *not* engaged in a business or a transaction, and is *not* about to engage in a business or a transaction, for which such Person's Property would constitute

------

unreasonably small capital after giving due consideration to the prevailing practice in the industry in which such Person is engaged or is to engage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the fair value of the Property of such Person is *greater than* the total amount of liabilities, including, without limitation, contingent liabilities, of such Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the present fair salable value of the Property of such Person is *not less than* the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured.

In computing the amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

"<u>*Specified Credit Party*</u>" shall mean any Credit Party that is, at the time on which the Guaranty (or grant of security interest, as applicable) becomes effective with respect to a Swap Obligation, a corporation, partnership, proprietorship, organization, trust or other entity that would *not* be an "eligible contract participant" under the Commodity Exchange Act at such time but for the effect of <u>Section</u> <u>4.8</u>.

"*<u>Specified Equity Contribution</u>*" shall have the meaning provided for such term in <u>Section 9.4(a</u>).

"<u>*Specified Transaction*</u>" shall mean any Asset Sale, any Involuntary Disposition, any Acquisition, the making of any Investment, the declaration and/or making of any Restricted Payment, the establishment and/or incurrence of any Incremental Facility, any Debt Transaction, any issuance or sale by any Person of shares of its Equity Interests (including, without limitation, pursuant to a Qualifying IPO) or any other contribution of equity capital (whether in cash or otherwise), any Sale and Leaseback Transaction, any Securitization Transaction, and/or any other transaction that is subject to calculation on a "*Pro Forma Basis*" as indicated in this Agreement or any other Credit Document (or in any other agreement, document, certificate and/or instrument executed and/or delivered in connection herewith or therewith).

"<u>*Statutory Surplus*</u>" shall mean, as of any date of determination for any Regulated Entity, the total capital and surplus of such Regulated Entity, determined in accordance with SAP.

"<u>*Subsidiary*</u>" shall mean, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which *more than* fifty percent (50.0%) of the Voting Stock is at the time owned or controlled, directly or indirectly, by that Person, or the accounts of which would be consolidated with those of such Person in its consolidated financial statements in accordance with GAAP, if such statements were prepared as of such date, or one or more of the other Subsidiaries of that Person or a combination thereof; <u>provided</u>, <u>that</u>, (i) in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a "qualifying share" of the former Person shall be deemed to be outstanding, and (ii) notwithstanding anything to the contrary in the foregoing of this definition, each Regulated Subsidiary shall be deemed to be a Subsidiary of the Borrower. Unless otherwise expressly stated, all references to "Subsidiary" in this Agreement and each other Credit Document shall refer to a Subsidiary of the Borrower (including, for purposes of clarity, each Regulated Subsidiary).

"<u>*Subsidiary Determination Date*</u>" shall mean any date on which financial statements and/or any related Compliance Certificate are, or are required to be, delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>).

------

"*<u>Supported QFC</u>*" shall have the meaning specified for such term in <u>Section 11.23</u>.

"<u>*Swap Agreement*</u>" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, currency swap transactions, cross-currency rate swap transactions, currency options, cap transactions, floor transactions, collar transactions, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options or warrants to enter into any of the foregoing), whether or not any such transaction is governed by, or otherwise subject to, any master agreement or any netting agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any and all transactions or arrangements of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement (or similar documentation) published from time to time by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such agreement or documentation, together with any related schedules, a "<u>*Master Agreement*</u>"), including any such obligations or liabilities under any Master Agreement.

"<u>*Swap Obligation*</u>" shall mean, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a "swap" within the meaning of Section 1a(47) of the Commodity Exchange Act.

"<u>*Swap Termination Value*</u>" shall mean, in respect of any one or more Swap Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Agreements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any date on or after the date such Swap Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any date prior to the date referenced in <u>clause (a</u>), the amount(s) determined as the mark-to-market value(s) for such Swap Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Agreements (which may include a Lender or any Affiliate of a Lender).

"<u>*Swingline Lender*</u>" shall mean Regions in its capacity as Swingline Lender hereunder, together with its permitted successors and assigns in such capacity.

"<u>*Swingline Loan*</u>" shall mean a Loan made by the Swingline Lender to the Borrower pursuant to <u>Section</u> <u>2.2</u>.

"<u>*Swingline Rate*</u>" shall mean the Base Rate *plus* the Applicable Margin applicable to Base Rate Loans (or, with respect to any Swingline Loan advanced pursuant to an Auto Borrow Agreement, such other rate as separately agreed in writing between the Borrower and the Swingline Lender).

"<u>*Swingline Sublimit*</u>" shall mean, as of any date of determination, the *lesser* of: (a) Fifteen Million Dollars ($15,000,000); and (b) the aggregate unused amount of the Aggregate Revolving Commitments then in effect.

------

"<u>*Synthetic Lease*</u>" shall mean a lease transaction under which the parties intend that: (a) the lease will be treated as an "operating lease" by the lessee pursuant to Statement of Financial Accounting Standards No. 13, as amended; and (b) the lessee will be entitled to various tax and other benefits ordinarily available to owners (as opposed to lessees) of like Property.

"<u>*Taxes*</u>" shall mean all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"<u>*Term Loans*</u>" shall mean, collectively, the Term Loan A, the Delayed Draw Term Loan, and any Incremental Term Loans.

"*<u>Term Loan A</u>*" shall have the meaning specified for such term in <u>Section 2.1(b</u>).

"<u>*Term Loan A Commitment*</u>" shall mean, with respect to each Lender as of the Effective Date, the obligation of such Lender to advance its respective portion of principal under the Term Loan A on the Effective Date pursuant to <u>Section</u> <u>2.1(b</u>), in an aggregate original principal amount advanced by such Lender on the Effective Date equal to the applicable amount that is set forth with respect to such Lender as such Lender's "*Term Loan A Commitment*" on <u>Appendix A</u> (as such Appendix is in effect on the Effective Date).

"<u>*Term Loan A Commitment Percentage*</u>" shall mean, with respect to each Lender at any time, a fraction (expressed as a percentage carried to the ninth (9<sup>th</sup>) decimal place): (a) the *numerator* of which is the *sum of* (i) the amount of such Lender's Term Loan A Commitment (if any) in effect at such time, *plus* (ii) the aggregate principal balance of the portion of the Term Loan A advanced by such Lender that is outstanding at such time; and (b) the *denominator* of which is the *sum of* (i) the Aggregate Term Loan A Commitment Amount in effect at such time, *plus* (ii) the aggregate outstanding principal balance of the Term Loan A at such time. The Term Loan A Commitment Percentages of each Lender as of the Effective Date are set forth on <u>Appendix A</u>.

"<u>*Term Loan Commitments*</u>" shall mean, collectively, the Term Loan A Commitments, the DDTL Commitments and any Incremental Term Loan Commitments.

"<u>*Term SOFR*</u>" means, as of any date of determination, for any calculations with respect to a SOFR Loan and/or a SOFR Borrowing and/or any determination of the Base Rate pursuant to clause (c) of the definition of "*Base Rate*" above, the rate per annum equal to the SOFR Reference Rate for a forward-looking tenor comparable to the then applicable or selected (as applicable) Interest Period for such SOFR Loan or SOFR Borrowing (or for a forward-looking one (1) month tenor, in the case of any determination of the Base Rate pursuant to clause (c) of the definition of "*Base Rate*" above), determined as of the date (such date, a "<u>*Periodic Term SOFR Determination Date*</u>") that is two (2) U.S. Government Securities Business Days prior to the first (1st) day of such Interest Period, as such rate is published by the Term SOFR Administrator on such Periodic Term SOFR Determination Date; <u>provided</u>, <u>that</u>, (a) if, as of 11:00 a.m. (New York City time) on any Periodic Term SOFR Determination Date, the SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator, *then "Term SOFR*" shall instead mean the SOFR Reference Rate for such applicable tenor as published by the *Term SOFR* Administrator on the first (1<sup>st</sup>) preceding U.S. Government Securities Business Day for which such SOFR Reference Rate for such applicable tenor was published by the Term SOFR Administrator, subject to <u>Section</u> <u>3.1</u>, and (b) if, at any time, Term SOFR (determined in accordance with the foregoing of this definition of "*Term SOFR*", including in accordance with the foregoing <u>clause (a</u>) of this proviso) is *less than* the Floor, then *Term SOFR* shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents. Any change(s) in *Term SOFR* for any Interest Period due to any

------

change(s) in the SOFR Reference Rate for a comparable tenor shall be effective from, and including, the effective date of any such change(s) in such SOFR Reference Rate, without further notice to any Credit Party, any Subsidiary, any other Regulated Entity, any other party to this Agreement or any other Credit Document, or any other Person.

"<u>*Term SOFR Administrator*</u>" means, the CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the SOFR Reference Rate for any applicable tenor selected by the Administrative Agent in its reasonable discretion).

"<u>*Threshold Amount*</u>" shall mean One Million Dollars ($1,000,000).

"*<u>Title Policy</u>*" shall have the meaning specified for such term in <u>Section 7.11(b)(iii</u>).

"<u>*Total Credit Exposure*</u>" shall mean, with respect to any Lender at any time, the *sum of*: (a) the *sum of* the aggregate outstanding principal balances of the respective portions of each then outstanding Term Loan advanced by such Lender, taken together, at such time; *plus* (b) the unused amount of such Lender's respective Revolving Commitment in effect at such time; *plus* (c) the unused amount of such Lender's respective DDTL Commitment in effect at such time; *plus* (d) such Lender's Revolving Credit Exposure at such time.

"<u>*Trailing Period*</u>" shall mean, as of any date of determination, the period consisting of the four (4) consecutive full Fiscal Quarters most recently ended as of such date of determination.

"<u>*Treasury Management Agreement*</u>" shall mean any agreement governing the provision of treasury or cash management services, including deposit accounts, funds transfer, automated clearinghouse, commercial credit cards, purchasing cards, cardless e-payable services, debit cards, stored value cards, zero balance accounts, returned check concentration, controlled disbursement, lockbox, account reconciliation and reporting and trade finance services.

"<u>*Type*</u>", when used in reference to a Loan or Borrowing, shall refer to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to Term SOFR for any Interest Period (other than pursuant to clause (c) of the definition of "*Base Rate*" above) or the Base Rate (including, for the avoidance of doubt, pursuant to clause (c) of the definition of "*Base Rate*" above).

"<u>*UCC*</u>" shall mean the Uniform Commercial Code (or any similar or equivalent legislation) as in effect in the State of New York (or any other applicable jurisdiction, as the context may require).

"<u>*UK Financial Institution*</u>" shall mean any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"<u>*UK Resolution Authority*</u>" shall mean the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"<u>*Unadjusted Benchmark Replacement*</u>" shall mean the applicable Benchmark Replacement without giving effect to the Benchmark Replacement Adjustment.

"*<u>United States</u>*" or "*<u>U.S</u>*." shall mean the United States of America.

------

"<u>*Unrestricted Cash*</u>" shall mean, as of any date of determination, the aggregate amount of unrestricted and unencumbered (other than by Liens in favor of the Collateral Agent) cash and/or *Cash Equivalents* (measured at fair market value) of the Credit Parties. For the avoidance of doubt, the terms "*cash*" and "*Cash Equivalents*" as used in this definition shall only apply to any such Property that is directly owned by a Credit Party, and shall *not* include any amounts of consolidated or combined cash and/or Cash Equivalents consisting of funds owned by: (i) a Subsidiary (including any Regulated Subsidiary) that is *not* a Credit Party; or (ii) any other Regulated Entity.

"<u>*U.S.* Government Securities Business Day</u>" shall mean any day, other than: (a) a Saturday or a Sunday; or (b) any day on which SIFMA recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in U.S. government securities.

"<u>*U.S.* Person</u>" shall mean any Person that is a "United States person" as defined in Section 7701(a)(30) of the Internal Revenue Code.

"*<u>U.S. Special Resolution Regime</u>*" shall have the meaning specified for such term in <u>Section 11.23</u>.

"*<u>U.S. Tax Compliance Certificate</u>*" shall have the meaning specified for such term in <u>Section 3.3(f)</u>.

"<u>*Voting Stock*</u>" shall mean, with respect to any Person, Equity Interests issued by such Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even though the right so to vote has been suspended by the happening of such a contingency.

"<u>*Weighted Average Life*</u>" shall mean, when applied to any Indebtedness as of any date of determination, the number of years obtained by *dividing*: (a) the *sum of* the products obtained by *multiplying* (i) the amount of each then-remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof, *by* (ii) the number of years (calculated to the nearest one-twelfth (1/12)) that will elapse between such date and the making of such payment; *by* (b) the then-outstanding principal amount of such Indebtedness.

"<u>*Wholly Owned Subsidiary*</u>" shall mean, as of any date of determination, with respect to any Person, any Subsidiary of such Person of which all of the Equity Interests (other than, in the case of a Foreign Subsidiary, Equity Interests in such Foreign Subsidiary issued to (i) qualify directors, to the extent required by Applicable Law, or (ii) satisfy other requirements of Applicable Law with respect to the ownership of Equity Interests in such Foreign Subsidiary) are, as of such date, directly or indirectly owned and controlled by such Person or by one (1) or more other Wholly Owned Subsidiaries of such Person (or by a combination of the foregoing). Unless otherwise expressly stated, all references to "Wholly Owned Subsidiary" in this Agreement and each other Credit Document shall refer to a Wholly Owned Subsidiary of the Borrower (including, for purposes of clarity, each Regulated Subsidiary that is a Wholly Owned Subsidiary of the Borrower).

"<u>*Withholding Agent*</u>" shall mean any Credit Party and the Administrative Agent.

"<u>*Write-Down and Conversion Powers*</u>" shall mean: (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule; and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify

------

or change the form of a liability of any UK Financial Institution, or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that Person or any other Person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it, or to suspend any obligation in respect of that liability, or any of the powers under that Bail-In legislation that are related or ancillary to any of those powers.

Section 1.2 <u>Accounting Terms</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise expressly provided in this Agreement or any other Credit Document, all accounting terms used in this Agreement and the other Credit Documents shall be interpreted, all accounting determinations under this Agreement and the other Credit Documents shall be made, and all financial statements required to be delivered under this Agreement and the other Credit Documents shall be prepared, in each case of the foregoing, in accordance with GAAP or SAP (as applicable), as in effect from time to time, applied on a basis consistent with the most recent consolidated financial statements of the Credit Parties and Subsidiaries delivered pursuant to <u>Section</u> <u>7.1(b</u>) (or, if, at any time, no such financial statements have been delivered pursuant to <u>Section</u> <u>7.1(b</u>), then on a basis consistent with the Annual Financial Statements); <u>provided</u>, <u>that</u>, if the Borrower notifies the Administrative Agent that the Borrower wishes to amend any Financial Covenant to eliminate the effect of any change(s) in GAAP or SAP (as applicable) on the operation of such Financial Covenant (or, if the Administrative Agent notifies the Borrower that the Required Lenders wish to amend <u>Section</u> <u>8.8</u> for such purpose), then the Credit Parties' compliance with such Financial Covenant shall be determined on the basis of GAAP or SAP (as applicable) as in effect on the date immediately *prior* to the date on which the relevant change(s) in GAAP or SAP (as applicable) became effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Borrower and the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, at any time, any change in GAAP or SAP, or in the consistent application thereof, would affect the computation of any Financial Covenant or any other requirement set forth in any Credit Document, and either the Borrower or the Required Lenders shall object in writing to determining compliance based on such change, then the Lenders and the Borrower shall negotiate in good faith to amend such Financial Covenant, other requirement or applicable defined term(s) to preserve the original intent thereof in light of such change to GAAP or SAP (as applicable), <u>provided</u>, <u>that</u>, until so amended such computations shall continue to be made on a basis consistent with the most recent financial statements delivered pursuant to <u>Section</u> <u>7.1</u> as to which no such objection has been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in the foregoing or elsewhere in this Agreement or any other Credit Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all terms of an accounting or financial nature used in this Agreement or any other Credit Document shall be construed, and all computations of amounts and ratios referred to in this Agreement or any other Credit Document shall be made, in each case of the foregoing, without giving effect to any election under Accounting Standards Codification Section 825–10 (or any other Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of any Credit Party, any Subsidiary or any other Regulated Entity at "fair value" (as defined therein); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for purposes of determining compliance with any covenant (including the computation of any Financial Covenant) set forth in this Agreement or any other Credit Document, Indebtedness of the Credit Parties, Subsidiaries and other Regulated Entities shall be deemed to be carried at one hundred percent (100.0%) of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470–20 on financial liabilities shall be disregarded.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary in the foregoing, the parties hereto acknowledge and agree that (A) all calculations in accordance with <u>Section</u> <u>8.8</u> of the Financial Covenants (but *not* including, for purposes of clarity, the testing of any availability, basket or other condition set forth in any Article or Section of this Agreement or any other Credit Document other than in <u>Section</u> <u>8.8</u> that requires, by its terms, that any Financial Covenant measurement(s) be calculated on a Pro Forma Basis), and (B) all calculations of the Consolidated Leverage Ratio for purposes of determining the Applicable Margin, in each case of the foregoing <u>clauses (c)(A)</u> and <u>(c)(B)</u>, shall be made on a Pro Forma Basis *solely* with respect to (i) any Asset Sale of all of the outstanding Equity Interests in, or all, or substantially all, of the Property of, any Credit Party, any Subsidiary or any other Regulated Entity, (ii) any Asset Sale of a line of business or division of any Credit Party, any Subsidiary or any other Regulated Entity, or (iii) any Acquisition (including any related incurrence or assumption of Indebtedness), in each case of the foregoing <u>clauses (c)(i</u>) through (<u>c)(iii</u>), consummated during the applicable period of measurement, and no other Specified Transactions consummated during the applicable period of measurement shall be given effect on a Pro Forma Basis for purposes of such specified calculations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For purposes of determining compliance with any applicable basket permission(s) set forth in <u>Article 8</u> with respect to any item incurred, granted, paid, invested, made or disposed of (as applicable) in reliance on such basket permission(s) that is denominated in any currency other than Dollars, the amount of such item shall be deemed to be the Dollar-equivalent amount (as determined by the Administrative Agent) of the amount (denominated in a currency other than Dollars) of such item. In the event that any basket permission set forth in <u>Article 8</u> is exceeded *solely* as a result of fluctuations, after the last time that such basket permission was utilized or relied on by a Credit Party, Subsidiary or other Regulated Entity, between the amount (denominated in a currency other than Dollars) of any item incurred, granted, paid, invested, made or disposed of (as applicable) measured as of such time, on the one hand, and the Dollar-equivalent amount thereof (as determined by the Administrative Agent), on the other hand, then such basket permission shall *not* be deemed to have been exceeded *solely* as a result of such currency exchange rate fluctuations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything to the contrary in this Agreement or any other Credit Document, any calculation of "extraordinary gains", "extraordinary losses" and/or "extraordinary charges" shall, in each case for all purposes of this Agreement and the other Credit Documents (including, without limitation, for any determination of Consolidated EBITDA or Consolidated Net Income), be determined by reference to GAAP as in effect immediately *prior* to giving effect to FASB's Accounting Standards Update No. 2015–01.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event that any Lien, any Indebtedness (whether tested at the time of initial incurrence, upon application of all, or any portion, of the proceeds thereof, or otherwise), any Asset Sale or other disposition, any Acquisition or other Investment, any Restricted Payment, any Affiliate transaction, any restrictive agreement and/or any prepayment of Indebtedness (as applicable), or any other transaction that is subject to any of the negative covenant restrictions set forth in <u>Article 8</u>, meets the criteria of one (1) or more of the categories of transactions then expressly permitted pursuant to any clause of the applicable Section(s) of <u>Article 8</u>, then such transaction (or portion thereof, as applicable) at any time shall be permitted under one (1) or more of such clauses of such Section(s) as the Borrower may determine in its sole discretion at such time (unless otherwise expressly and specifically restricted pursuant to the terms of this Agreement), and, for the avoidance of doubt, unless otherwise expressly and specifically restricted pursuant to the terms of this Agreement, the Borrower may subsequently reclassify or divide (as applicable) such transaction (or portion thereof, as applicable) among such permitting clauses of such applicable Section(s) and shall only be required, at any given time, to count such transaction (or portion thereof, as applicable) as permitted in reliance on one (1) of such permitting clauses of such applicable Section(s).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) For purposes of determining the amount of any Earn Out Obligations and/or other deferred purchase price obligations of any Person for purposes of this Agreement and the other Credit Documents, the amount of such Earn Out Obligations and/or other deferred purchase price obligations shall be deemed to be the aggregate liability in respect thereof required to be reflected as a liability on the balance sheet of such Person in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything to the contrary in this Agreement or any other Credit Document, all liability amounts shall be determined *excluding* any liability relating to any operating lease, all asset amounts shall be determined *excluding* any right-of-use assets relating to any operating lease, all amortization amounts shall be determined *excluding* any amortization of a right-of-use asset relating to any operating lease, and all interest amounts shall be determined *excluding* any deemed interest comprising a portion of fixed rent payable under any operating lease, in each case of the foregoing, to the extent that such liability, asset, amortization or interest pertains to an operating lease under which the covenantor or a member of its consolidated group is the lessee and would *not* have been accounted for as such under GAAP as in effect on December 31, 2015.

Section 1.3 <u>Rules of Interpretation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Terms Generally</u>. The definitions of terms used in this Agreement and the other Credit Documents shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "*include*", "*includes*" and "*including*" shall be deemed to be followed by the phrase ", *without limitation*,". The word "*will*" shall be construed to have the same meaning and effect as the word "*shall*". In the computation of periods of time *from* a specified date to a later specified date, unless otherwise specified, the word "*from*" shall mean "*from, and including*," and the word "to" shall mean "to, *but excluding*,". In addition, unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any definition of, or reference to, any agreement, instrument or other document (including any Organizational Document) shall be construed as referring to such agreement, instrument or other document as it was originally executed, or as it may from time to time be amended, restated, amended and restated, supplemented, increased, extended, refinanced, renewed, replaced, and/or otherwise modified in writing, as applicable (subject to any restrictions on such amendments, restatements, amendments and restatements, supplements, increases, extensions, refinancings, renewals, replacements, and/or other written modifications as set forth in this Agreement or any other Credit Document);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any reference in any Credit Document to any Person shall be construed to include such Person's successors and permitted assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the words "*hereof*", "*herein*" and "*hereunder*", and words of similar import, when used in any Credit Document, shall be construed to refer to such Credit Document as a whole, and *not* to any particular provision hereof or thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all references in any Credit Document to Articles, Sections, Appendices, Exhibits and/or Schedules shall be construed to refer to Articles, Sections, Appendices, Exhibits and/or Schedules, as applicable, to or of the Credit Document in which such reference appears;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all references contained in a Section, clause, sub-clause or definition to clauses, sub-clauses or definitions occurring "above" or "below", or to any "foregoing", "preceding" or "proceeding" clauses, sub-clauses or definitions, in each case of the foregoing, shall refer to the

------

applicable clause or sub-clause of, or definition set forth in, such Section or such clause, sub-clause or definition, as the case may be, and all general references contained in a Section, or a clause or sub-clause thereof, to "the above" or "the below" shall refer, collectively, to all provisions of such Section, clause or sub-clause, as applicable, occurring prior to or after, as applicable, the occurrence of such general reference;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all references herein to sums denominated in Dollars or dollars, or with the symbol "$", refer to the lawful currency of the United States, unless such reference specifically identifies another currency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any reference in any Credit Document to a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term shall be deemed to apply to a division of or by a limited liability company or a limited partnership, or an allocation of assets to a series of a limited liability company or a limited partnership (or the unwinding of such a division or allocation), as if it were a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term, as applicable, to, of, or with a separate Person, and any division of a limited liability company or a limited partnership shall constitute a separate Person hereunder or thereunder (and each division of any limited liability company or limited partnership that is a subsidiary, joint venture, or any other like term shall also constitute such a Person);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any definition of, or reference to, any Applicable Law shall include all statutory and regulatory rules, regulations, orders and provisions consolidating, amending, replacing, and/or interpreting such Applicable Law, and any definition of, or reference to, any Applicable Law shall, unless otherwise expressly specified, refer to such Applicable Law as amended, modified, and/or supplemented from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the words "*asset*" and "*property*" shall be construed to have the same meaning and effect, and to refer to any and all real and personal, tangible and intangible Properties, including, without limitation, cash, securities, accounts and contract rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) unless otherwise expressly specified, all references in this Agreement or any other Credit Document to times of day shall be references to Eastern time (daylight or standard, as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) the terms "*lease*" and "*license*" shall include any sub-lease and/or any sub-license, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) all terms (whether or not capitalized in occurrence) used in this Agreement and the other Credit Documents that are *not* specifically defined in this Agreement or any other Credit Document, or under GAAP, but are defined in the UCC, shall have the respective meanings provided for such terms in the UCC, with the term "*instrument*" having the meaning provided for such term in Article 9 of the UCC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) (A) whenever the phrase "appraised value" (or words of like or similar import) is used in this Agreement or any other Credit Document with respect to any Real Estate Asset, such "appraised value" (or words of like or similar import) shall mean the value of such Real Estate Asset determined using an Appraisal; and (B) whenever the phrases "updated Appraisal", "updated appraisal" or "an update thereof" (or words of like or similar import) relating to an Appraisal or other appraisal are used in this Agreement or any other Credit Document, any such

------

"update" shall be in form and substance, and from a third-party provider, reasonably acceptable to the Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) whenever the phrase "*to the knowledge of*" (or words of like or similar import) relating to the knowledge of any Credit Party, any Subsidiary or any other Regulated Entity is used in this Agreement or any other Credit Document, such phrase shall mean, and refer to, the actual knowledge of any Authorized Officer of such Person(s) after due inquiry; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) for purposes of clarity and unless the context expressly provides otherwise, any references in this Agreement or any other Credit Document to a Regulated Entity that is *not* a Subsidiary (or to a Regulated Entity that is *not* a Regulated Subsidiary) shall be, and are intended as, a reference to one (1) or more Qualifying Reciprocal Entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Letter of Credit Amounts</u>. Unless otherwise expressly specified in this Agreement or another Credit Document, the amount of a Letter of Credit, at any time, shall be deemed to be the stated amount of such Letter of Credit in effect at such time (after giving effect to any actual permanent reductions in the stated amount of such Letter of Credit pursuant to the terms of such Letter of Credit); <u>provided</u>, <u>that</u>, with respect to any Letter of Credit that, by its terms or the terms of any other Issuer Document related thereto, provides for one (1) or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit, after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Section Headings</u>. Section headings in this Agreement and the other Credit Documents are included herein or therein (as applicable) for convenience of reference only and shall *not* constitute a part hereof or thereof for any other purpose, or otherwise be given any substantive effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Informed Negotiation</u>. This Agreement and the other Credit Documents are the result of negotiations among, and have been reviewed by counsel to, among others, the Agent and each of the Credit Parties, and this Agreement, and each of the other Credit Documents, are the product of discussions and negotiations among such parties. Accordingly, this Agreement and the other Credit Documents are *not* intended to be construed against the Agent, the Issuing Bank or any of the Lenders merely on account of any such Person's (or its counsel's) involvement in the preparation and/or closing of this Agreement and/or any other Credit Document.

Section 1.4 <u>Rules of Interpretation with Respect to Regulated Entities</u>. Should an applicable Governmental Authority notify any Credit Party or Subsidiary of a potentially actionable issue or concern related to control of a Regulated Entity or determine that all or any of the Lenders, the Administrative Agent and/or the Collateral Agent is or are acting as control persons, as defined or used under the Florida Insurance Code or other Applicable Laws, of any Regulated Entity due to one or more provisions of this Agreement, the parties agree to promptly further negotiate in good faith to modify this Agreement such that none of the Lenders or the Agents are considered by such Governmental Authority to be control persons of the Regulated Entities and to effect the original intent of the parties as closely as possible in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

Section 1.5 <u>Classifications of Loans and Borrowings</u>. For purposes of this Agreement and the other Credit Documents, Loans may be classified and referred to by Class (*e.g.*, a "*Revolving Loan*", the "*Term Loan A*" or the "*Delayed Draw Term Loan*"), by Type (*e.g.*, a "*SOFR Loan*" or a "*Base Rate Loan*"), or by Class and Type (*e.g.,* a "*Revolving SOFR Loan*"). Borrowings also may be classified and

------

referred to by Class (*e.g., a "Revolving Borrowing"*), by Type (e.g., a "*SOFR Borrowing*" or a "*Base Rate Borrowing*"), or by Class and Type (*e.g., a "Revolving SOFR Borrowing*").

Section 1.6 <u>Cashless Rollovers</u>. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, to the extent that any Lender agrees to extend the maturity date of, or replaces, renews and/or refinances any of, its then-existing Loans pursuant to any Borrowing under an Incremental Facility and/or any loans incurred under a new credit facility (including, without limitation, a new credit facility documented as an amendment and restatement of this Agreement), in each case of the foregoing, to the extent that such extension, replacement, renewal and/or refinancing is effected by means of a "cashless roll" by such Lender, then such extension, replacement, renewal and/or refinancing shall be deemed to comply with any requirement(s) under this Agreement or any other Credit Document that any related payment(s) to be made in effectuating such extension, replacement, renewal and/or refinancing be made "in Dollars", "in immediately available funds", "in cash" or any other similar requirement.

Section 1.7 <u>Interest Rate Disclosure</u>. The Administrative Agent does not warrant or accept responsibility for, and shall <u>*not*</u> have any liability whatsoever with respect to: (a) the continuation, administration, submission and/or calculation of, or any other matter related to, any of the Base Rate, the SOFR Reference Rate (for any applicable tenor) and/or any SOFR-Based Rate (for any Interest Period, as applicable), or any component definition used or referred to in, or any rate(s) used or referred to in, the definitions of any of the foregoing in <u>Section</u> <u>1.1</u>, or for any alternative, successor or replacement rate thereto (including, without limitation, any Benchmark Replacement), including whether the composition and/or characteristics of any such actual or proposed alternative, successor or replacement rate (including, without limitation, any Benchmark Replacement) is or will be similar to, or produces or will produce the same or substantially equivalent value or economic equivalence of, or has or will have the same or a comparable volume or liquidity as, any of the Base Rate, the SOFR Reference Rate (for any applicable tenor), any SOFR-Based Rate (for any Interest Period, as applicable) and/or any other Benchmark prior to its discontinuance or unavailability; or (b) the effect, implementation and/or composition of any Conforming Changes. The Administrative Agent, together with its Affiliates and other related entities, may engage in transactions that affect the calculation of any of the Base Rate, the SOFR Reference Rate (for any applicable tenor), any SOFR-Based Rate (for any Interest Period, as applicable), any alternative, successor or replacement rate of any of the foregoing (including, without limitation, any Benchmark Replacement), and/or any relevant adjustments to any of the foregoing, in any such case of the foregoing, in a manner adverse to the Borrower and the other Credit Parties. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain any of the Base Rate, the SOFR Reference Rate (for any applicable tenor), any SOFR-Based Rate (for any Interest Period, as applicable), and/or any other Benchmark, in each case of the foregoing, pursuant to the terms of this Agreement, and the Administrative Agent shall have no liability whatsoever to any Credit Party, any Subsidiary, any other Regulated Entity, any Lender and/or any other Person for damages of any kind, including direct or indirect, special, punitive, incidental and/or consequential damages, costs, losses and/or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or any component thereof) provided by any such information source or service.

**Article 2** 

**<u>LOANS AND LETTERS OF CREDIT</u>**

Section 2.1 <u>Revolving Loans and Term Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans</u>. Subject to the terms and conditions set forth herein (including the conditions precedent to Borrowing set forth in <u>Section</u> <u>5.2</u>), each of the Lenders hereby severally agrees

------

to advance its respective Revolving Commitment Percentage of revolving loans (each such loan, a "<u>*Revolving Loan*</u>") to the Borrower, in Dollars from time to time during the Revolver Availability Period, in an aggregate principal amount outstanding at any time for each Lender up to, but *not exceeding*, the amount of such Lender's respective Revolving Commitment; <u>provided</u>, <u>that</u>, immediately after giving effect to the Borrowing of any Revolving Loan, (i) the Aggregate Revolving Credit Exposure shall *not exceed* the Aggregate Revolving Commitment Amount, and (ii) the Revolving Credit Exposure of any Lender shall *not exceed* the amount of such Lender's respective Revolving Commitment. Revolving Loans may be disbursed from time to time during the Revolver Availability Period, and may be outstanding from time to time, as Base Rate Loans or SOFR Loans (or a combination thereof), as the Borrower may request in accordance with this Agreement. Revolving Loans borrowed pursuant to this clause (a) may be repaid, in whole or in part, and re-borrowed from time to time during the Revolver Availability Period without premium or penalty (subject to <u>Section</u> <u>3.1(c</u>)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term Loan A</u>. Subject to the terms and conditions set forth herein (including the conditions precedent to Borrowing set forth in <u>Section</u> <u>5.2</u>), each of the Lenders hereby severally agrees to advance their respective Term Loan A Commitment Percentage of a term loan (the "<u>*Term Loan A*</u>") to the Borrower, in Dollars in a single disbursement on the Effective Date, in an original principal amount for each Lender equal to the amount of such Lender's respective Term Loan A Commitment in effect on the Effective Date. The Term Loan A may be Borrowed on the Effective Date, and may be outstanding from time to time thereafter, as Base Rate Loans or SOFR Loans (or a combination thereof), as the Borrower may request in accordance with this Agreement. Amounts repaid on the Term Loan A may not be reborrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delayed Draw Term Loan</u>. Subject to the terms and conditions set forth herein (including the conditions precedent to Borrowing set forth in <u>Section</u> <u>5.2</u>), each of the Lenders hereby severally agrees to advance their respective DDTL Commitment Percentage of a delayed draw term loan (the "<u>*Delayed Draw Term Loan*</u>") to the Borrower, in Dollars in up to eight (8) separate advances during the DDTL Availability Period, in an aggregate original principal amount for each Lender (for all advances under the Delayed Draw Term Loan, taken together) of *not greater than* the amount of such Lender's respective DDTL Commitment. The Delayed Draw Term Loan may be disbursed from time to time during the DDTL Availability Period, and may be outstanding from time to time during the term of this Agreement, as Base Rate Loans or SOFR Loans (or a combination thereof), as the Borrower may request in accordance with this Agreement. Amounts repaid on the Delayed Draw Term Loan may *not* be reborrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Borrowing Mechanics</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All advances under any Term Loan and, except pursuant to <u>Section</u> <u>2.2(b)(iii</u>), all Revolving Loans shall be made in an aggregate minimum amount of Five-Hundred Thousand Dollars ($500,000) and, if greater, in an integral multiple of One-Hundred Thousand Dollars ($100,000) in excess thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Whenever the Borrower desires that the Lenders make a Term Loan or a Revolving Loan, the Borrower shall deliver to the Administrative Agent a fully executed Funding Notice by *no later than* (A) 1:00 p.m. (Eastern time) *at least three* (3) Business Days in advance of the proposed Credit Date, in the case of a SOFR Loan, and (B) 1:00 p.m. (Eastern time) *at least* one (1) Business Day in advance of the proposed Credit Date, in the case of a Base Rate Loan (<u>provided, that</u>, a Funding Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Funding Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed). Except as otherwise provided herein, any Funding Notice for any Loans that are SOFR

------

Loans shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to make a borrowing in accordance therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notice of receipt of each Funding Notice in respect of each Revolving Loan or Term Loan, together with the amount of each Lender's Commitment Percentage of the relevant Class in respect thereof, if any, together with the applicable interest rate, shall be provided by the Administrative Agent to each applicable Lender by telefacsimile with reasonable promptness, but (<u>provided, that</u>, the Administrative Agent shall have received such notice by 1:00 p.m. (Eastern time)) by *not later than* 4:00 p.m. (Eastern time) on the same day as the Administrative Agent's receipt of such notice from the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Each Lender shall make its respective Commitment Percentage of the requested Loan available to the Administrative Agent by *not later than* 11:00 a.m. (Eastern time) on the applicable Credit Date by wire transfer of same day funds in Dollars, at the Administrative Agent's Principal Office. Except as provided herein, upon satisfaction or waiver of the applicable conditions precedent specified herein, the Administrative Agent shall make the proceeds of such Credit Extension available to the Borrower on the applicable Credit Date by causing an amount of same day funds in Dollars equal to the proceeds of all Loans received by the Administrative Agent in connection with the Credit Extension from the Lenders to be credited to the account of the Borrower at the Administrative Agent's Principal Office (or to such other account as may be designated in writing to the Administrative Agent by the Borrower).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Incremental Facilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the terms and conditions set forth in this Agreement, the Borrower shall have the right, from time to time upon *at least ten* (10) Business Days' prior written notice to the Administrative Agent (or such shorter period of notice as the Administrative Agent may agree in its sole discretion), to (I) increase the Aggregate Revolving Commitment Amount, (II) increase the Aggregate Term Loan A Commitment Amount, (III) increase the Aggregate DDTL Commitment Amount, and/or (IV) establish one (1) or more additional term loans of a separate Class, subject, however, in any such case of the foregoing <u>clauses (e)(i)(I</u>) through (<u>e)(i)(IV</u>), to the satisfaction of each of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the aggregate original principal or committed amount of all such Incremental Facilities, taken together, shall *not exceed* the Incremental Cap in effect at the time of the establishment and/or incurrence (as applicable) of any Incremental Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) each Incremental Facility shall be in a minimum principal or committed amount of Five Million Dollars ($5,000,000), and, if greater, in an integral multiple of Five-Hundred Thousand Dollars ($500,000) in excess thereof (or such lesser amounts as the Administrative Agent may agree in its sole discretion);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the establishment and incurrence (as applicable) of each Incremental Facility shall be contingent upon the receipt by the Administrative Agent of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) additional Commitments of the applicable Class in a corresponding amount to such requested increase in the aggregate amount of Commitments of such Class, or Incremental Term Loan Commitments in a corresponding amount to the aggregate original principal amount of such requested Incremental Term Loan of a separate Class, in each case of the

------

foregoing of this <u>clause (e)(i)(C)(I</u>), from either existing Lenders or from one (1) or more other financial institutions (each such other financial institution, an "<u>*Additional Incremental Lender*</u>") that: (1) qualifies as an Eligible Assignee; and (2) is approved (such approval not to be unreasonably withheld, conditioned or delayed) by the Administrative Agent and, in the case of any increased or new Commitment in respect of an Incremental Revolver Increase, each of the Issuing Bank and the Swingline Lender, or from a combination of existing Lenders and/or Additional Incremental Lenders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) documentation from each existing Lender or Additional Incremental Lender providing a Commitment in respect of such Incremental Facility, in form and substance reasonably acceptable to the Administrative Agent, evidencing its: (I) agreement to provide such Commitment; and (II) acceptance of its obligations as a Lender under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the Administrative Agent shall have received all customary officer's certificates, legal opinions and other documents (including, without limitation, resolutions of the board of directors or managers (or equivalent governing body) of each Credit Party and customary opinions of counsel to the Credit Parties, if required to be provided by the existing Lenders and Additional Incremental Lenders providing Commitments in respect of such Incremental Facility) it may reasonably request relating to the corporate, limited liability company or other necessary authority for the establishing of such Incremental Facility and the validity thereof, and any other matters relevant thereto, all in form and substance reasonably satisfactory to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) the Borrower shall have delivered to the Administrative Agent a certificate, dated as of the date of establishment and/or incurrence (as applicable) of such Incremental Facility, and duly executed by an Authorized Officer of the Borrower, certifying, on behalf of the Borrower and each other Credit Party, that, both immediately *before* and immediately *after* giving effect to the establishment and/or incurrence (as applicable) of such Incremental Facility and the consummation of any related transactions (including, without limitation, any Acquisitions) substantially contemporaneously in connection therewith (and assuming, in the case of any Incremental Revolver Increase, any Incremental Term Loan A Increase or any Incremental DDTL Increase, that the Incremental Commitments newly established in connection therewith are fully utilized):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) no Default or Event of Default shall have occurred and be continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) all representations and warranties of each Credit Party set forth in the Credit Documents (including, without limitation, the representations and warranties of each Credit Party set forth in <u>Article 6</u>) are true and correct, in all material respects (or, if such representation and warranty is qualified by materiality or Material Adverse Effect, in all respects), on, and as of, such date, except to the extent that such representations and warranties specifically relate to an earlier date, in which case, they are true and correct, in all material respects (or, if such representation and warranty is qualified by materiality or Material Adverse Effect, in all respects), as of such earlier date; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) the Collateral Agent shall have received such amendments to the Collateral Documents as the Collateral Agent shall request in order to cause the Collateral Documents to secure the Obligations (in a manner consistent with the terms of the Collateral Documents as in effect immediately *prior* to the date of establishment and/or incurrence (as applicable) of such Incremental Facility) after giving effect to the establishment and/or incurrence (as applicable) of such Incremental Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) if any Revolving Loans are outstanding at the time of establishment of any Incremental Revolver Increase, then the Borrower shall, if applicable, prepay one (1) or more of the then outstanding Revolving Loans (any such prepayment to be subject to <u>Section</u> <u>3.1(c</u>)) in an amount necessary such that, after giving effect to such Incremental Revolver Increase, each Lender will hold its respective *pro rata* share of outstanding Revolving Loans; <u>provided</u>, <u>that</u>, any such prepayment may be effected, in whole or in part, pursuant to a cashless rollover in accordance with <u>Section</u> <u>1.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any increased or new Commitments established in respect of an existing (as of the date that is immediately *prior* to the date of establishment of such Incremental Facility) Class of Commitments shall have terms substantially identical to those for Commitments of such Class under this Agreement as of the date that is immediately *prior* to the date of establishment of such Incremental Facility, except for fees payable to the Lenders providing increased or new Commitments in respect of such Incremental Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) the terms and provisions applicable to any Incremental Term Loan of a separate Class shall (to the extent *not* in conflict with the terms and provisions of this Agreement pertaining to Incremental Term Loans) be as set forth in the applicable Incremental Facility Agreement establishing such Incremental Term Loan, <u>provided, that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) such Incremental Term Loan shall have a final maturity date that is coterminous with, or later than, the Latest Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) the Weighted Average Life of such Incremental Term Loan shall *not* be *less than* the Weighted Average Life of any other then-outstanding Term Loan (including of the Term Loan A, the Delayed Draw Term Loan and any other then outstanding Incremental Term Loan); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) the All-In Yield applicable to any Incremental Term Loan shall *not* be *more than* one-half of *one* percent (0.50%) *higher than* the corresponding All-In Yield applicable to any other then-outstanding Term Loan (including the Term Loan A, the Delayed Draw Term Loan and any other then outstanding Incremental Term Loan) (it being understood and agreed that interest on any other then-outstanding Term Loan may be increased to the extent necessary to satisfy this requirement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J) the Borrower shall have paid any applicable upfront and/or arrangement fee(s) in connection with the establishment and/or incurrence (as applicable) of such Incremental Facility, as agreed by the Borrower in writing; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K) except to the extent otherwise required or expressly permitted pursuant to this Agreement (including, for purposes of clarity, the foregoing of this <u>clause (e)(i</u>)), all other terms and conditions of any Incremental Term Loan of a Class separate from the Term Loan A and the Delayed Draw Term Loan shall be reasonably satisfactory to the Agents.

Notwithstanding anything to the contrary in the foregoing of this <u>clause (e)(i</u>): (I) neither any Agent nor any Lender, nor any Affiliate of any of the foregoing (nor any of their respective successors or assigns), shall have any obligation to agree to increase any Class of its Commitments or any of its other obligations under this Agreement and the other Credit Documents, or to otherwise provide all, or any portion, of any Incremental Facility, and any decision by a Lender to agree to any such increase or to otherwise provide all, or any portion, of an Incremental Facility shall be made in its sole and absolute discretion, independently from, and without reliance upon, any other existing Lender or Additional Incremental Lender; and (II) neither any Arranger, any Agent nor any Lender, nor any Affiliate of any of the foregoing (nor any of their respective successors or assigns), shall have any responsibility for arranging any Commitments in respect of any Incremental Facility, in each case of this <u>clause (e)(i)(II</u>), without their prior written consent and subject to such conditions (including, without limitation, fee arrangements) as they may require in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Agents, the Credit Parties, and the existing Lenders and/or Additional Incremental Lenders providing any Commitment(s) in respect of any Incremental Facility, without the further consent of any other Person, are expressly permitted to enter into an Incremental Facility Agreement to establish any such Incremental Facility effected in accordance with the foregoing <u>clause (e)(i</u>), which Incremental Facility Agreement may amend this Agreement and the other Credit Documents to implement such technical, administrative and/or mechanical changes as may be necessary or advisable to be implemented in connection therewith (including, without limitation, to ensure continuing *pro rata* allocations of Loans and Commitments and to implement ratable participations in Letters of Credit).

Section 2.2 <u>Swingline Loans.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Swingline Loans Commitments</u>. During the Revolver Availability Period, subject to the terms and conditions hereof, the Swingline Lender shall make Swingline Loans to the Borrower in an aggregate amount up to, but *not exceeding*, the Swingline Sublimit; <u>provided</u>, <u>that</u>, after giving effect to the making of any Swingline Loan, in no event shall (i) the Aggregate Revolving Credit Exposure *exceed* the Aggregate Revolving Commitment Amount, and (ii) the aggregate amount of Revolving Credit Exposure of any Lender *exceed* the amount of such Lender's respective Revolving Commitment. Amounts borrowed pursuant to this <u>Section</u> <u>2.2</u> may be repaid and reborrowed during the Revolver Availability Period. The Swingline Lender's Revolving Commitment shall expire on the Revolving Commitment Termination Date and all Swingline Loans, and all other amounts owed hereunder with respect to the Swingline Loans and the Revolving Commitments, shall be Paid in Full by *no later than* such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Borrowing Mechanics for Swingline Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to <u>clause (b)(vi</u>) below, whenever the Borrower desires that the Swingline Lender make a Swingline Loan, the Borrower shall deliver to the Administrative Agent a Funding Notice by *no later than* 11:00 a.m. on the proposed Credit Date (<u>provided</u>, <u>that</u>, a Funding Notice delivered by the Borrower may be expressly conditioned in writing upon the

------

consummation of any specified transaction or event, in which case, such Funding Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Swingline Lender shall make the amount of its Swingline Loan available to the Administrative Agent by *not later than* 3:00 p.m. (Eastern time) on the applicable Credit Date by wire transfer of same day funds in Dollars, at the Administrative Agent's Principal Office. Except as provided herein, upon satisfaction or waiver of the conditions precedent specified herein, the Administrative Agent shall make the proceeds of such Swingline Loans available to the Borrower on the applicable Credit Date by causing an amount of same day funds in Dollars equal to the proceeds of all such Swingline Loans received by the Administrative Agent from the Swingline Lender to be credited to the account of the Borrower at the Administrative Agent's Principal Office, or to such other account as may be designated in writing to the Administrative Agent by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) With respect to any Swingline Loans that have *not* been voluntarily prepaid by the Borrower pursuant to <u>Section</u> <u>2.11</u>, the Swingline Lender may, at any time in its sole and absolute discretion, deliver to the Administrative Agent (with a copy to the Borrower), by no *later than* 11:00 a.m. (Eastern time) on the day of the proposed Credit Date, a notice (which shall be deemed to be a Funding Notice given by the Borrower) requesting that each Lender holding a Revolving Commitment make Revolving Loans that are Base Rate Loans to the Borrower on such Credit Date in an aggregate principal amount equal to the principal amount of such Swingline Loans (the "<u>*Refunded Swingline Loans*</u>") outstanding on the date such notice is given which the Swingline Lender requests the Lenders to prepay (<u>provided</u>, <u>that</u>, a Funding Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Funding Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed). Notwithstanding anything to the contrary in this Agreement: (A) the proceeds of such Revolving Loans made by the Lenders other than the Swingline Lender shall be immediately delivered by the Administrative Agent to the Swingline Lender (and *not* to the Borrower) and applied to repay a corresponding portion of the Refunded Swingline Loans; and (B) on the day that such Revolving Loans are made, the Swingline Lender's Revolving Commitment Percentage of the Refunded Swingline Loans shall be deemed to be paid with the proceeds of a Revolving Loan made by the Swingline Lender to the Borrower, and such portion of the Swingline Loans deemed to be so paid shall no longer be outstanding as Swingline Loans but shall instead constitute part of the Swingline Lender's outstanding Revolving Loans to the Borrower. The Borrower hereby authorizes the Administrative Agent and the Swingline Lender to charge the Borrower's accounts with the Administrative Agent and the Swingline Lender (up to the amount available in each such account) in order to immediately pay the Swingline Lender the amount of the Refunded Swingline Loans to the extent the proceeds of such Revolving Loans made by the Lenders, including the Revolving Loans deemed to be made by the Swingline Lender, are insufficient to repay in full the Refunded Swingline Loans. If any portion of any such amount paid (or deemed to be paid) to the Swingline Lender should be recovered by, or on behalf of, the Borrower from the Swingline Lender in bankruptcy, by assignment for the benefit of creditors or otherwise, the loss of the amount so recovered shall be ratably shared among all Lenders in the manner contemplated by <u>Section</u> <u>2.14</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If, for any reason, Revolving Loans are not made pursuant to <u>clause (b)(iii</u>) above in an amount sufficient to repay any amounts owed to the Swingline Lender in respect of any outstanding Swingline Loans on or before the third (3<sup>rd</sup>) Business Day after demand for payment thereof by the Swingline Lender, each Lender holding a Revolving Commitment shall be deemed to, and hereby agrees to, have purchased a participation in such outstanding Swingline Loans, and

------

in an amount equal to its Revolving Commitment Percentage of the applicable unpaid amount together with accrued interest thereon; <u>provided, that</u>, any such participation purchased by a Lender shall be limited to an amount that would *not* cause the aggregate amount of Revolving Credit Exposure of such Lender (immediately after giving effect to such participation) to *exceed* the amount of such Lender's respective Revolving Commitment. On the Business Day that notice is provided by the Swingline Lender (or by the 11:00 a.m. (Eastern time) on the following Business Day, if such notice is provided after 2:00 p.m. (Eastern time)), each Lender holding a Revolving Commitment shall deliver to the Swingline Lender an amount equal to its respective participation in the applicable unpaid amount in same day funds at the Principal Office of the Swingline Lender. In order to evidence such participation each Lender holding a Revolving Commitment agrees to enter into a participation agreement at the request of the Swingline Lender in form and substance reasonably satisfactory to the Swingline Lender. In the event that any Lender holding a Revolving Commitment fails to make available to the Swingline Lender the amount of such Lender's participation as provided in this <u>clause (b)(v</u>), the Swingline Lender shall be entitled to recover such amount on demand from such Lender together with interest thereon for three (3) Business Days at the rate customarily used by the Swingline Lender for the correction of errors among banks and thereafter at the Base Rate, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notwithstanding anything contained herein to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) each Lender's obligation to make Revolving Loans for the purpose of repaying any Refunded Swingline Loans pursuant to <u>clause (b)(iii</u>) above, and each Lender's obligation to purchase a participation in any unpaid Swingline Loans pursuant to the immediately preceding paragraph, shall be absolute and unconditional and shall *not* be affected by any circumstance, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) any set-off, counterclaim, recoupment, defense or other right which such Lender may have against the Swingline Lender, any Credit Party or any other Person for any reason whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) the occurrence or continuation of a Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) any adverse change in the business, operations, properties, assets, condition (financial or otherwise) or prospects of any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) any breach of this Agreement or any other Credit Document by any party thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(V) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing;

<u>provided, that</u>, such obligations of each Lender are subject to the condition that the Swingline Lender had *not* received prior notice from the Borrower or the Required Revolving Lenders that any of the conditions under <u>Section</u> <u>5.2</u> to the making of the applicable Refunded Swingline Loans or other unpaid Swingline Loans were *not* satisfied at the time such Refunded Swingline Loans or other unpaid Swingline Loans were made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Swingline Lender shall *not* be obligated to make any Swingline Loans:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) if it has elected *not* to do so after the occurrence, and during the continuation, of a Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) it does *not* in good faith believe that all conditions under <u>Section</u> <u>5.2</u> to the making of such Swingline Loan have been satisfied or waived by the Required Revolving Lenders; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) at a time when a Defaulting Lender exists, unless the Swingline Lender has entered into arrangements satisfactory to it and the Borrower to eliminate the Swingline Lender's risk with respect to the Defaulting Lender's participation in such Swingline Loan, including by Cash Collateralizing such Defaulting Lender's Revolving Commitment Percentage of the outstanding Swingline Loans in a manner reasonably satisfactory to the Swingline Lender and the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) In order to facilitate the borrowing of Swingline Loans, the Borrower and the Swingline Lender may mutually agree, and are hereby authorized, to enter into an auto borrow agreement in form and substance satisfactory to the Swingline Lender and the Administrative Agent (the "<u>*Auto Borrow Agreement*</u>") providing for the automatic advance by the Swingline Lender of Swingline Loans under the conditions set forth in the Auto Borrow Agreement, subject to the conditions set forth in this Agreement. At any time that an Auto Borrow Agreement is in effect, advances under the Auto Borrow Agreement shall be deemed Swingline Loans for all purposes of this Agreement and the other Credit Documents, except that Borrowings of Swingline Loans under the Auto Borrow Agreement shall be made in accordance with the Auto Borrow Agreement. For purposes of determining the Aggregate Revolving Credit Exposure at any time during which an Auto Borrow Agreement is in effect, the aggregate outstanding principal balance of all Swingline Loans shall be deemed to equal the *sum of*: (A) the aggregate outstanding principal balance of all Swingline Loans at such time; *plus* (B) the maximum unused amount available to be borrowed under such Auto Borrow Agreement at such time.

Section 2.3 <u>Issuances of Letters of Credit and Purchase of Participations Therein.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Letters of Credit</u>. During the Revolver Availability Period, subject to the terms and conditions hereof, the Issuing Bank agrees to issue Letters of Credit for the account of the Borrower or any of its Subsidiaries in the aggregate amount up to, but *not exceeding*, the Letter of Credit Sublimit, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each Letter of Credit shall be denominated in Dollars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the stated amount of each Letter of Credit shall *not be less than* Fifty Thousand Dollars ($50,000) or such lesser amount as may be approved in writing by the Issuing Bank in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) immediately *after* giving effect to such issuance, in no event shall: (A) the Aggregate Revolving Credit Exposure exceed the Aggregate Revolving Commitment Amount; (B) the Revolving Credit Exposure of any Lender *exceed* the amount of such Lender's respective Revolving Commitment; and (C) the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, *exceed* the Letter of Credit Sublimit; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in no event shall any Letter of Credit have an expiration date that is *later than* the *earlier* to occur of: (A) seven (7) calendar days *prior* to the Revolving Commitment Termination Date; and (B) the date which is one (1) year from the date of issuance of such Letter of Credit.

Subject to the foregoing (other than <u>clause (a)(iv</u>)) the Issuing Bank may agree that a Letter of Credit will automatically be extended for one or more successive periods *not to exceed* one (1) year each, unless the Issuing Bank elects *not* to extend for any such additional period; <u>provided, that</u>, (I) the Issuing Bank shall *not* extend any such Letter of Credit if it has received written notice that an Event of Default has occurred and is continuing at the time the Issuing Bank must elect to allow such extension, and (II) in the event that any Lender is at such time a Defaulting Lender, unless the Issuing Bank has entered into arrangements satisfactory to the Issuing Bank (in its sole discretion) with the Borrower or such Defaulting Lender to eliminate the Issuing Bank's Fronting Exposure with respect to such Lender (after giving effect to <u>Section</u> <u>2.16(a)(iv</u>) and any Cash Collateral provided by the Defaulting Lender), including by Cash Collateralizing such Defaulting Lender's Revolving Commitment Percentage of the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, in a manner reasonably satisfactory to Agents, the Issuing Bank shall *not* be obligated to issue or extend any Letter of Credit hereunder. The Issuing Bank may send a Letter of Credit or conduct any communication to or from the beneficiary via the Society for Worldwide Interbank Financial Telecommunication ("<u>*SWIFT*</u>") message or overnight courier, or any other commercially reasonable means of communicating with a beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice of Issuance</u>. Whenever the Borrower desires the issuance of a Letter of Credit, the Borrower shall deliver to the Administrative Agent an Issuance Notice by *no later than* 1:00 p.m. (Eastern time) *at least* three (3) Business Days in advance of the proposed date of issuance (or such shorter period as may be agreed to by the Issuing Bank in any particular instance) (<u>provided</u>, <u>that</u>, an Issuance Notice delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such Issuance Notice shall be revoked or extended if such event or transaction does *not* occur or is delayed). Upon satisfaction or waiver of the conditions set forth in <u>Section</u> <u>5.2</u>, the Issuing Bank shall issue the requested Letter of Credit only in accordance the Issuing Bank's standard operating procedures (including, without limitation, the delivery by the Borrower of such executed documents and information pertaining to such requested Letter of Credit, including any Issuer Documents, as the Issuing Bank or the Administrative Agent may require). Upon the issuance of any Letter of Credit or amendment or modification to a Letter of Credit, the Issuing Bank shall promptly notify the Administrative Agent and each Lender of such issuance, which notice shall be accompanied by a copy of such Letter of Credit or amendment or modification to a Letter of Credit and the amount of such Lender's respective participation in such Letter of Credit pursuant to <u>clause (e</u>) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Responsibility of Issuing Bank With Respect to Requests for Drawings and Payments</u>. In determining whether to honor any drawing under any Letter of Credit by the beneficiary thereof, the Issuing Bank shall be responsible only to examine the documents delivered under such Letter of Credit with reasonable care so as to ascertain whether they appear on their face to be in accordance with the terms and conditions of such Letter of Credit. As between the Borrower and the Issuing Bank, the Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit issued by the Issuing Bank, by the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, the Issuing Bank shall *not* be responsible for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for and issuance of any such Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) failure of the beneficiary of any such Letter of Credit to comply fully with any conditions required in order to draw upon such Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) errors in interpretation of technical terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any such Letter of Credit or of the proceeds thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any consequences arising from causes beyond the control of the Issuing Bank, including any Governmental Acts; none of the above shall affect or impair, or prevent the vesting of, the Issuing Bank's rights or powers hereunder.

Without limiting the foregoing and in furtherance thereof, any action taken or omitted by the Issuing Bank under or in connection with the Letters of Credit or any documents and certificates delivered thereunder, if taken or omitted in good faith, shall not give rise to any liability on the part of the Issuing Bank to any Credit Party. Notwithstanding anything to the contrary contained in this <u>clause</u> <u>(c</u>), the Borrower shall retain any and all rights it may have against the Issuing Bank for any liability arising solely out of the gross negligence or willful misconduct of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Reimbursement by the Borrower of Amounts Drawn or Paid Under Letters of Credit</u>. In the event the Issuing Bank has determined to honor a drawing under a Letter of Credit, it shall immediately notify the Borrower and the Administrative Agent, and the Borrower shall reimburse the Issuing Bank on or before the Business Day immediately following the date on which such drawing is honored (the "<u>*Reimbursement Date*</u>") in an amount in Dollars and in same day funds equal to the amount of such honored drawing; <u>provided</u>, <u>that</u>, (i) anything contained herein to the contrary notwithstanding, (A) unless the Borrower shall have notified the Administrative Agent and the Issuing Bank *prior* to 11:00 a.m. (Eastern time) on the date such drawing is honored that the Borrower intends to reimburse the Issuing Bank for the amount of such honored drawing with funds other than the proceeds of Revolving Loans, the Borrower shall be deemed to have given a timely Funding Notice to the Administrative Agent requesting the Lenders to make Revolving Loans that are Base Rate Loans on the Reimbursement Date in an amount in Dollars equal to the amount of such honored drawing, and (B) subject to satisfaction or waiver of the conditions specified in <u>Section</u> <u>5.2</u>, the Lenders shall, on the Reimbursement Date, make Revolving Loans that are Base Rate Loans in the amount of such honored drawing, the proceeds of which shall be applied directly by the Administrative Agent to reimburse the Issuing Bank for the amount of such honored drawing, and (ii) if, for any reason, proceeds of Revolving Loans are *not* received by the Issuing Bank on the Reimbursement Date in an amount equal to the amount of such honored drawing, the Borrower shall reimburse the Issuing Bank, on demand, in an amount in same day funds equal to the *excess* of the amount of such honored drawing *over* the aggregate amount of such Revolving Loans, if any, which are so received. Nothing in this <u>clause (d</u>) shall be deemed to relieve any Lender from its obligation to make Revolving Loans on the terms and conditions

------

set forth herein, and the Borrower shall retain any and all rights it may have against any Lender resulting from the failure of such Lender to make such Revolving Loans under this <u>clause (d</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Lenders' Purchase of Participations in Letters of Credit</u>. Immediately upon the issuance of each Letter of Credit, each Lender having a Revolving Commitment shall be deemed to have purchased, and hereby agrees to irrevocably purchase, from the Issuing Bank a participation in such Letter of Credit and any drawings honored thereunder in an amount equal to such Lender's Revolving Commitment Percentage (with respect to the Revolving Commitments) of the maximum amount which is or at any time may become available to be drawn thereunder; <u>provided</u>, <u>that</u>, any such participation purchased by a Lender shall be limited to an amount that would *not* cause the aggregate amount of Revolving Credit Exposure of such Lender (immediately after giving effect to such participation) to *exceed* the amount of such Lender's respective Revolving Commitment. In the event that the Borrower shall fail, for any reason, to reimburse the Issuing Bank as provided in <u>clause (d</u>) above, the Issuing Bank shall promptly notify each Lender of the unreimbursed amount of such honored drawing and of such Lender's respective participation therein based on such Lender's Revolving Commitment Percentage. Each Lender shall make available to the Issuing Bank an amount equal to its respective participation, in Dollars and in same day funds, at the office of the Issuing Bank specified in such notice, by *not later than* 12:00 p.m. (Eastern time) on the first (1<sup>st</sup>) Business Day (under the laws of the jurisdiction in which such office of the Issuing Bank is located) after the date notified by the Issuing Bank. In the event that any Lender fails to make available to the Issuing Bank on such Business Day the amount of such Lender's participation in such Letter of Credit as provided in this <u>clause (e</u>), the Issuing Bank shall be entitled to recover such amount on demand from such Lender together with interest thereon for three (3) Business Days at the rate customarily used by the Issuing Bank for the correction of errors among banks and thereafter at the Base Rate. Nothing in this <u>clause (e</u>) shall be deemed to prejudice the right of any Lender to recover from the Issuing Bank any amounts made available by such Lender to the Issuing Bank pursuant to this Section in the event that it is determined that the payment with respect to a Letter of Credit in respect of which payment was made by such Lender constituted gross negligence or willful misconduct on the part of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order. In the event the Issuing Bank shall have been reimbursed by other Lenders pursuant to this <u>clause (e</u>) for all or any portion of any drawing honored by the Issuing Bank under a Letter of Credit, the Issuing Bank shall distribute to each Lender which has paid all amounts payable by it under this <u>clause (e</u>) with respect to such honored drawing such Lender's Revolving Commitment Percentage of all payments subsequently received by the Issuing Bank from the Borrower in reimbursement of such honored drawing when such payments are received. Any such distribution shall be made to a Lender at its primary address set forth below its name on <u>Appendix B</u> or at such other address as such Lender may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Obligations Absolute</u>. The obligation of the Borrower to reimburse the Issuing Bank for drawings honored under the Letters of Credit issued by it and to repay any Revolving Loans made by the Lenders pursuant to <u>clause (d</u>) above and the obligations of the Lenders under <u>clause (e</u>) above shall be unconditional and irrevocable and shall be paid strictly in accordance with the terms hereof under all circumstances including any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any lack of validity or enforceability of any Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the existence of any claim, set-off, defense (other than that such drawing has been repaid) or other right which the Borrower or any Lender may have at any time against a beneficiary or any transferee of any Letter of Credit (or any Persons for whom any such transferee may be acting), the Issuing Bank, a Lender or any other Person or, in the case of a Lender, against the Borrower, whether in connection herewith, the transactions contemplated

------

herein or any unrelated transaction (including any underlying transaction between the Borrower or any of its Subsidiaries and the beneficiary for which any Letter of Credit was procured);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any draft or other document presented under any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) payment by the Issuing Bank under any Letter of Credit against presentation of a draft or other document which does *not* substantially comply with the terms of such Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any adverse change in the business, operations, properties, assets, or financial condition of the Borrower or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any breach hereof or any other Credit Document by any party thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the fact that an Event of Default or a Default shall have occurred and be continuing;

<u>provided</u>, <u>that</u>, in each case, that payment by the Issuing Bank under the applicable Letter of Credit shall *not* have constituted gross negligence or willful misconduct of the Issuing Bank under the circumstances in question, as determined by a court of competent jurisdiction in a final, non-appealable order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Indemnification</u>. Without duplication of any obligation of the Credit Parties under <u>Section</u> <u>11.2</u>, in addition to amounts payable as provided herein, each of the Credit Parties hereby agrees, on a joint and several basis, to protect, indemnify, pay and save harmless the Issuing Bank from and against any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including reasonable out-of-pocket fees, expenses and disbursements of counsel) which the Issuing Bank may incur or be subject to as a consequence, direct or indirect, of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the issuance of any Letter of Credit by the Issuing Bank, other than as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the gross negligence or willful misconduct of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the wrongful dishonor by the Issuing Bank of a proper demand for payment made under any Letter of Credit issued by it; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the failure of the Issuing Bank to honor a drawing under any such Letter of Credit as a result of any Governmental Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Applicability of ISP</u>. Unless otherwise expressly agreed by the Issuing Bank and the Borrower when a Letter of Credit is issued, the rules of the ISP shall apply to each Letter of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Letters of Credit Issued for Subsidiaries</u>. Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary of the Borrower, the Borrower shall be obligated to reimburse the Issuing Bank hereunder for any and all drawings under such Letter of Credit. The Borrower hereby acknowledges that the issuance of Letters of

------

Credit for the account of the Subsidiaries inures to the benefit of the Borrower, and that the Borrower's business derives substantial benefits from the businesses of such Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Conflict with Issuer Documents</u>. In the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control.

Section 2.4 <u>Pro Rata Shares; Availability of Funds.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Pro Rata Shares</u>. All Loans shall be made, and all participations purchased, by the Lenders simultaneously and proportionately to their respective *pro rata* shares of the Loans, it being understood that no Lender shall be responsible for any default by any other Lender in such other Lender's obligation to make a Loan requested hereunder or purchase a participation required hereby nor shall any Commitment, or the portion of the aggregate outstanding principal balance of any Loans, of any Lender be increased or decreased as a result of a default by any other Lender in such other Lender's obligation to make a Loan requested hereunder or purchase a participation required hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Availability of Funds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Funding by Lenders; Presumption by Administrative Agent</u>. Unless the Administrative Agent shall have received notice from a Lender *prior* to the proposed date of any Borrowing (or, in the case of any Borrowing of Base Rate Loans, *prior* to 12:00 p.m. (Noon) (Eastern time) on the date of such Borrowing) that such Lender will *not* make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with <u>Section</u> <u>2.1(d</u>) or, in the case of a Borrowing of Base Rate Loans, that such Lender has made such share available in accordance with, and at the time required by, <u>Section</u> <u>2.1(d</u>) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from, and including, the date such amount is made available to the Borrower to, but *excluding*, the date of payment to the Administrative Agent, at, (A) in the case of a payment to be made by such Lender, the *greater of* the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Loans, *plus*, in either case, any administrative, processing or similar fees customarily charged by the Administrative Agent in connection therewith. If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period. If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender's Loan included in such Borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Payments by the Borrower; Presumptions by Administrative Agent</u>. Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may

------

be, the amount due. In such event, if the Borrower has *not* in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or the Issuing Bank, in immediately available funds with interest thereon, for each day from, and including, the date such amount is distributed to it to, but *excluding*, the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

Notices given by the Administrative Agent under this <u>clause (b</u>) shall be conclusive absent manifest error.

Section 2.5 <u>Evidence of Debt; Register; Lenders' Books and Records; Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Lenders' Evidence of Debt</u>. Each Lender shall maintain on its internal records an account or accounts evidencing the Obligations of the Borrower and each other Credit Party to such Lender, including the amounts of the Loans made by it and each repayment and prepayment in respect thereof. Any such recordation shall be conclusive and binding on the Borrower, absent manifest error; <u>provided</u>, <u>that</u>, (i) the failure to make any such recordation, or any error in such recordation, shall *not* affect any Lender's Commitment or the Borrower's obligations in respect of any applicable Loans, and (ii) in the event of any inconsistency between the Register and any Lender's records, the recordations in the Register shall govern in the absence of demonstrable error therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notes</u>. The Borrower shall execute and deliver to (i) each Lender on the Effective Date, (ii) each Additional Incremental Lender or other Person who joins this Agreement as a Lender after the Effective Date, and (iii) each Person who is a permitted assignee of such a Lender described in the foregoing <u>clauses (b)(i)</u> or <u>(b)(ii)</u> pursuant to <u>Section 11.5</u>, in each case of the foregoing <u>clauses (b)(i)</u> through <u>(b)(iii</u>), to the extent requested by such Person, a Note to evidence such Person's respective portion of the Revolving Loans, Swingline Loans, Term Loans and other Obligations.

Section 2.6 <u>Scheduled Principal Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans</u>. The aggregate outstanding principal balance of Revolving Loans (together with any unpaid accrued interest and fees with respect thereto) shall become due and payable, and be repaid, in full on the Revolving Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Swingline Loans</u>. The aggregate outstanding principal balance of Swingline Loans (together with any unpaid accrued interest and fees with respect thereto) shall become due and payable, and be repaid, in full on the *earlier* to occur of: (i) the date of demand therefor by the Swingline Lender; and (ii) the Revolving Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Term Loan A</u>. The outstanding principal balance of the Term Loan A shall be repaid in equal quarterly installments, beginning on the last Business Day of the Fiscal Quarter ending September 30, 2026, in an amount of Five Million Dollars ($5,000,000) per Fiscal Quarter, payable on the last Business Day of each Fiscal Quarter (as such quarterly installments may hereafter be adjusted as a result of prepayments made pursuant to <u>Section 2.11</u>), unless accelerated sooner pursuant to Article 9, with the outstanding principal balance of the Term Loan A (together with any unpaid accrued interest and fees with respect thereto) being due and payable in full on the Maturity Date for the Term Loan A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delayed Draw Term Loan</u>. The outstanding principal balance of each advance made under the Delayed Draw Term Loan during the DDTL Availability Period shall be repaid in equal quarterly installments, beginning on the last Business Day of the first (1<sup>st</sup>) full Fiscal Quarter ending after

------

the date on which such advance is made, in an amount equal to the DDTL Amortization Payment Amount for such advance per Fiscal Quarter, payable on the last Business Day of each Fiscal Quarter (as such quarterly installments may hereafter be adjusted as a result of prepayments made pursuant to <u>Section 2.11</u>), unless accelerated sooner pursuant to <u>Article 9</u>, with the outstanding principal balance of each advance under the Delayed Draw Term Loan (together with any unpaid accrued interest and fees with respect thereto) being due and payable in full on the Maturity Date for the Delayed Draw Term Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Incremental Term Loans</u>. The outstanding principal balance of any Incremental Term Loans shall be repaid in installments on the date(s), and in the amount(s), set forth in the applicable Incremental Facility Agreement establishing such Incremental Term Loan.

Section 2.7 <u>Interest on Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise set forth herein, each Loan shall bear interest on the unpaid principal amount thereof from the date made through repayment (whether by acceleration or otherwise) thereof as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of Revolving Loans, the Term Loan A and the Delayed Draw Term Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) to the extent outstanding as Base Rate Loans, at the Base Rate *plus* the Applicable Margin; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) to the extent outstanding as SOFR Loans, at Term SOFR *plus* the Applicable Margin; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of Swingline Loans, at the Swingline Rate (or with respect to any Swingline Loan advanced pursuant to an Auto Borrow Agreement, such other rate as separately agreed in writing between the Borrower and the Swingline Lender);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any Incremental Term Loan, at the percentages per annum specified in the applicable Incremental Facility Agreement establishing such Incremental Term Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The basis for determining the rate of interest with respect to any Loan (except a Swingline Loan, which may only be made and maintained at the Swingline Rate (unless and until converted into a Revolving Loan pursuant to the terms and conditions hereof)), and the Interest Period with respect to any SOFR Loan, shall be selected by the Borrower and notified to the Administrative Agent and the Lenders pursuant to the applicable Funding Notice or Conversion / Continuation Notice, as the case may be. If, on any day, a Loan is outstanding with respect to which a Funding Notice or Conversion / Continuation Notice has *not* been delivered to the Administrative Agent in accordance with the terms hereof specifying the applicable basis for determining the rate of interest, then for that day: (i) if such Loan is a SOFR Loan, such Loan shall become a Base Rate Loan; and (ii) if such Loan is a Base Rate Loan, such Loan shall remain a Base Rate Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with SOFR Loans, there shall be *no more than* eight (8) Interest Periods outstanding at any time. In the event the Borrower fails to specify between a Base Rate Loan or a SOFR Loan in the applicable Funding Notice or Conversion / Continuation Notice, such Loan: (i) if outstanding as a SOFR Loan, will be automatically continued, on the last day of the then-current Interest Period for such Loan, as a SOFR Loan with an equivalent Interest Period; and (ii) if outstanding as a Base Rate Loan will remain as, or (if *not* then outstanding) will be made as, a Base Rate Loan. In the event the Borrower

------

fails to specify an Interest Period for any SOFR Loan in the applicable Funding Notice or Conversion / Continuation Notice, the Borrower shall be deemed to have selected an Interest Period of one (1) month. As soon as practicable *after* 10:00 a.m. (Eastern time) on each Interest Rate Determination Date, the Administrative Agent shall determine (which determination shall, absent manifest error, be final, conclusive and binding upon all parties) the interest rate that shall apply to each of the SOFR Loans for which an interest rate is then being determined (and for the applicable Interest Period) and shall promptly give notice thereof (in writing or by telephone confirmed in writing) to the Borrower and each Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Interest payable pursuant to this <u>Section</u> <u>2.7</u> shall be computed on the basis of: (i) for interest at the Base Rate, year of three hundred sixty-five (365) or three hundred sixty-six (366) days, as the case may be; and (ii) for all other computations of fees and interest, a year of three hundred sixty (360) days, in each case, for the actual number of days elapsed in the period during which it accrues. In computing interest on any Loan, the date of the making of such Loan, or the first (1<sup>st</sup>) day of an Interest Period applicable to such Loan, or, with respect to a Base Rate Loan being converted from a SOFR Loan, the date of conversion of such SOFR Loan to such Base Rate Loan, as the case may be, shall be included, and the date of payment of such Loan or the expiration date of an Interest Period applicable to such Loan or, with respect to a Base Rate Loan being converted to a SOFR Loan, the date of conversion of such Base Rate Loan to such SOFR Loan, as the case may be, shall be excluded; <u>provided</u>, <u>that</u>, if a Loan is repaid on the same day on which it is made, one (1) day's interest shall be paid on that Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If, as a result of any restatement of, or other adjustment to, the financial statements of the Borrower or for any other reason, the Borrower or the Lenders determine that (i) the Consolidated Leverage Ratio, as calculated by the Borrower as of any applicable date, was inaccurate, and (ii) a proper calculation of the Consolidated Leverage Ratio would have resulted in higher pricing for such period, then the Borrower shall immediately and retroactively be obligated to pay to the Administrative Agent, for the account of the holders of the Obligations, promptly on demand (and, in any event, by *not later than* ten (10) consecutive calendar days after the date of such demand) by the Administrative Agent (or, after the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower or any other Credit Party under the Bankruptcy Code or other Debtor Relief Law, automatically and any without further action(s) by the Agent or any Lender), an amount equal to the excess of the amount of interest and fees that should have been paid for such period over the amount of interest and fees actually paid for such period. This <u>clause (e</u>) shall *not* limit the rights of the Agent or any Lender, as the case may be, under any other provision of this Agreement. The Borrower's obligations under this <u>clause (e</u>) shall survive the termination of the Commitments and the repayment of all other Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as otherwise set forth herein, interest on each Loan shall accrue on a daily basis and shall be payable in arrears on and to: (i) each Interest Payment Date applicable to that Loan; (ii) upon any prepayment of that Loan (other than a voluntary prepayment of a Revolving Loan or Term Loan which interest shall be payable in accordance with <u>clause (f)(i</u>) above), to the extent accrued on the amount being prepaid; and (iii) at maturity, including final maturity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Borrower agrees to pay to the Issuing Bank, with respect to drawings honored under any Letter of Credit issued by the Issuing Bank, interest on the amount paid by the Issuing Bank in respect of each such honored drawing from, and including, the date such drawing is honored to, but *excluding*, the date such amount is reimbursed by, or on behalf of, the Borrower at a rate equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for the period from, and including, the date such drawing is honored to, but *excluding*, the applicable Reimbursement Date, the rate of interest otherwise payable hereunder with respect to Revolving Loans that are Base Rate Loans; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) thereafter, a rate which is the *lesser* of: (y) two percent (2.0%) per annum in excess of the rate of interest otherwise payable hereunder with respect to Revolving Loans that are Base Rate Loans; and (z) the Highest Lawful Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Interest payable pursuant to <u>clause (g</u>) above shall be computed on the basis of a year of three hundred sixty-five (365) or three hundred sixty-six (366) days, as the case may be, for the actual number of days elapsed in the period during which it accrues, and shall be payable on demand or, if no demand is made, on the date on which the related drawing under a Letter of Credit is reimbursed in full. Promptly upon receipt by the Issuing Bank of any payment of interest pursuant to <u>clause (g</u>) above, the Issuing Bank shall distribute to each Lender, out of the interest received by the Issuing Bank in respect of the period from the date such drawing is honored to, but *excluding*, the date on which the Issuing Bank is reimbursed for the amount of such drawing (including any such reimbursement out of the proceeds of any Revolving Loans), the amount that such Lender would have been entitled to receive in respect of the letter of credit fee that would have been payable in respect of such Letter of Credit for such period if no drawing had been honored under such Letter of Credit. In the event the Issuing Bank shall have been reimbursed by the Lenders for all or any portion of such honored drawing, the Issuing Bank shall distribute to each Lender which has paid all amounts payable by it under <u>Section</u> <u>2.3(e</u>) with respect to such honored drawing such Lender's Revolving Commitment Percentage of any interest received by the Issuing Bank in respect of that portion of such honored drawing so reimbursed by the Lenders for the period from the date on which the Issuing Bank was so reimbursed by the Lenders to but excluding the date on which such portion of such honored drawing is reimbursed by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In connection with the use and/or administration of SOFR, the SOFR Reference Rate for any applicable tenor and/or any SOFR-Based Rate, the Administrative Agent shall have the right to make Conforming Changes in consultation with the Borrower from time to time and, notwithstanding anything to the contrary in this Agreement or in any other Credit Document, any amendment(s) implementing any such Conforming Changes shall become effective without any further action(s) and/or consent(s) of any other party to this Agreement or any other Credit Document or of any other Person. The Administrative Agent shall promptly notify the Borrower and the Lenders of the effectiveness of any Conforming Changes implemented in connection with the use and/or administration of SOFR, the SOFR Reference Rate for any applicable tenor and/or any SOFR-Based Rate.

Section 2.8 <u>Conversion / Continuation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So long as no Default or Event of Default shall have occurred and then be continuing or would result therefrom, the Borrower shall have the option:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to convert at any time all, or any part, of any Loan equal to One-Hundred Thousand Dollars ($100,000) and, if greater, in an integral multiple of Fifty Thousand Dollars ($50,000) in excess thereof from one Type of Loan to another Type of Loan; <u>provided</u>, <u>that</u>, a SOFR Loan may only be converted on the expiration of the Interest Period applicable to such SOFR Loan unless the Borrower shall pay all amounts due under <u>Section</u> <u>3.1(c</u>) in connection with any such conversion; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon the expiration of any Interest Period applicable to any SOFR Loan, to continue all or any portion of such Loan as a SOFR Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall deliver a Conversion / Continuation Notice to the Administrative Agent by *no later than* 1:00 p.m. (Eastern time) *at least three* (3) Business Days in advance of the proposed Conversion / Continuation Date. Except as otherwise provided herein, a Conversion / Continuation Notice for conversion to, or continuation of, any SOFR Loans (or telephonic notice in lieu

------

thereof) shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to effect a conversion or continuation in accordance therewith.

Section 2.9 <u>Default Rate of Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any amount of principal of any Loan is *not* paid when due, whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any amount (other than principal of any Loan) payable by the Borrower under any Credit Document is *not* paid when due (after the expiration of any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then, at the request of the Required Lenders, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the occurrence and during the continuance of an Automatic Acceleration Event of Default or a Payment Event of Default, the Borrower shall pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the occurrence and during the continuance of an Event of Default other than an Automatic Acceleration Event of Default and a Payment Event of Default, the Borrower shall, at the request of the Required Lenders, pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the case of any SOFR Loan, upon the expiration of the Interest Period in effect at the time the Default Rate of interest is effective, each such SOFR Loan shall thereupon become a Base Rate Loan and shall thereafter bear interest at the Default Rate then in effect for Base Rate Loans. Payment or acceptance of the increased rates of interest provided for in this <u>Section</u> <u>2.9</u> is *not* a permitted alternative to timely payment and shall *not* constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Administrative Agent or any Lender.

Section 2.10 <u>Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Commitment Fee</u>. The Borrower shall pay to the Administrative Agent, for the account of each Lender in accordance with its Revolving Commitment Percentage and its DDTL Commitment Percentage (as applicable), a commitment fee (the "<u>*Commitment Fee*</u>") equal to the sum of: (i) the *product of* (A) the Applicable Margin, *multiplied by* (B) the actual daily amount by which the Aggregate Revolving Commitment Amount exceeds the Aggregate Revolving Credit Exposure, subject to adjustment(s) as provided in <u>Section</u> <u>2.16</u>; plus (ii) the *product of* (A) the Applicable Margin, *multiplied by* (B) the Aggregate DDTL Commitment Amount then in effect. The Commitment Fee shall accrue at all times during the Revolver Availability Period and at all times during the DDTL Commitment Period, including at any time during which one or more of the conditions in <u>Article 5</u> is *not* met, and shall be due and payable quarterly in arrears on the last Business Day of each March, June, September and December, commencing with the first (1<sup>st</sup>) such date to occur after the Effective Date, on the Revolving Commitment Termination Date and on the DDTL Commitment Termination Date; <u>provided, that,</u> (I) no Commitment Fee shall accrue on any Revolving Commitment or any DDTL Commitment of any Defaulting Lender so

------

long as such Lender shall be a Defaulting Lender, and (II) any Commitment Fee accrued with respect to any Revolving Commitment or any DDTL Commitment of a Defaulting Lender during the period *prior* to the time that such Lender became a Defaulting Lender that remains unpaid at such time shall *not* be payable by the Borrower so long as such Lender shall be a Defaulting Lender. The Commitment Fee shall be calculated quarterly in arrears, and, if there is any change in the Applicable Margin during any quarter, the actual daily amount shall be computed and *multiplied by* the Applicable Margin separately for each period during such quarter that such Applicable Margin was in effect. For purposes of calculation of the Commitment Fee, Swingline Loans shall not be counted toward, or be considered as usage of, the Aggregate Revolving Commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b) Letter of Credit Fees.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Letter of Credit Fees</u>. The Borrower shall pay to the Administrative Agent for the account of each Lender, in accordance with its Revolving Commitment Percentage, a Letter of Credit fee for each Letter of Credit equal to the Applicable Margin *multiplied by* the daily maximum amount available to be drawn under such Letter of Credit (collectively, the "<u>*Letter of Credit Fees*</u>"). For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with <u>Section</u> <u>1.3(b</u>). The Letter of Credit Fees shall be computed on a quarterly basis in arrears, and shall be due and payable on the last Business Day of each March, June, September and December, commencing with the first (1<sup>st</sup>) such date to occur after the issuance of such Letter of Credit, on the expiration date thereof and thereafter on demand; <u>provided</u>, <u>that</u>, (1) no Letter of Credit Fees shall accrue in favor of a Defaulting Lender so long as such Lender shall be a Defaulting Lender, and (2) any Letter of Credit Fees accrued in favor of a Defaulting Lender during the period prior to the time such Lender became a Defaulting Lender and unpaid at such time shall *not* be payable by the Borrower so long as such Lender shall be a Defaulting Lender. If there is any change in the Applicable Margin during any quarter, the daily maximum amount available to be drawn under each Letter of Credit shall be computed and *multiplied* by the Applicable Margin separately for each period during such quarter that such Applicable Margin was in effect. Notwithstanding anything to the contrary contained herein, upon the occurrence and during the continuance of an Automatic Acceleration Event of Default or a Payment Event of Default, all Letter of Credit Fees shall accrue at the Default Rate; and, upon the occurrence and during the continuance of an Event of Default other than an Automatic Acceleration Event of Default and a Payment Event of Default, then upon the request of the Required Lenders, all Letter of Credit Fees shall accrue at the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Fronting Fee and Documentary and Processing Charges Payable to Issuing Bank</u>. The Borrower shall pay, directly to the Issuing Bank for its own account, a fronting fee with respect to each Letter of Credit, at the rate per annum specified in the Fee Letter, computed on the daily amount available to be drawn under such Letter of Credit on a quarterly basis in arrears. Such fronting fee shall be due and payable on the last Business Day of each March, June, September and December in respect of the most recently-ended quarterly period (or portion thereof, in the case of the first (1<sup>st</sup>) payment), commencing with the first (1<sup>st</sup>) such date to occur after the issuance of such Letter of Credit, on its expiration date and thereafter on demand. For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with <u>Section</u> <u>1.3(b</u>). In addition, the Borrower shall pay directly to the Issuing Bank for its own account the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of the Issuing Bank relating to letters of credit as from time to time in effect. Such customary fees and standard costs and charges are due and payable on demand and are non-refundable.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Fees</u>. The Borrower shall pay to RCM and the Administrative Agent, for their own respective accounts, fees in the amounts, and at the times, specified in the Fee Letter. Such fees shall be fully earned when paid and shall *not* be refundable for any reason whatsoever, except to the extent set forth in the Fee Letter.

Section 2.11 <u>Prepayments / Commitment Reductions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voluntary Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any time and from time to time, the Loans may be repaid in whole or in part without premium or penalty (subject to <u>Section</u> <u>3.1</u>):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) with respect to Base Rate Loans, the Borrower may prepay any such Loans on any Business Day, in whole or in part, in an aggregate minimum amount of Five-Hundred Thousand Dollars ($500,000) and, if greater, in an integral multiple of One-Hundred Thousand Dollars ($100,000) in excess thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) with respect to SOFR Loans, the Borrower may prepay any such Loans on any Business Day, in whole or in part (together with any amounts due pursuant to <u>Section</u> <u>3.1(c</u>)), in an aggregate minimum amount of Five-Hundred Thousand Dollars ($500,000) and, if greater, in an integral multiple of One-Hundred Thousand Dollars ($100,000) in excess thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) with respect to Swingline Loans, the Borrower may prepay any such Loans on any Business Day, in whole or in part, in any amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All such prepayments shall be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) upon written or telephonic notice on the date of prepayment in the case of Base Rate Loans or Swingline Loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) upon *not less than* three (3) Business Days' prior written or telephonic notice in the case of SOFR Loans;

in each case, given to the Administrative Agent or the Swingline Lender, as the case may be, by 11:00 a.m. (Eastern time) on the date required and, if given by telephone, promptly confirmed in writing to the Administrative Agent (and the Administrative Agent will promptly transmit such telephonic or original notice for a Credit Extension by telefacsimile or telephone to each Lender) (<u>provided</u>, <u>that</u>, a notice of prepayment delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such notice of prepayment shall be revoked or extended if such event or transaction does *not* occur or is delayed). Upon the giving of any such notice, the principal amount of the Loans specified in such notice shall become due and payable on the prepayment date specified therein. Any such voluntary prepayment shall be applied as specified in <u>Section</u> <u>2.12(a</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Commitment Reductions / Terminations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower may, from time to time upon *not less than* three (3) Business Days' prior written or telephonic notice confirmed in writing to the Administrative Agent (which original written or telephonic notice the Administrative Agent will promptly transmit by telefacsimile or telephone to each applicable Lender), at any time and from time to time,

------

terminate, in whole or permanently reduce in part, the Revolving Commitments (ratably among the Lenders in accordance with their respective commitment percentage thereof), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any such partial reduction of the Revolving Commitments shall be in an aggregate minimum amount of Five Million Dollars ($5,000,000) and, if greater, in an integral multiple of One Million Dollars ($1,000,000) in excess thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Borrower shall *not* terminate or reduce the Aggregate Revolving Commitments if, immediately *after* giving effect thereto and to any concurrent prepayments hereunder, the Aggregate Revolving Credit Exposure *exceeds* the Aggregate Revolving Commitment Amount; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) if, immediately after giving effect to any reduction of the Aggregate Revolving Commitment Amount, the Letter of Credit Sublimit and/or the Swingline Sublimit *exceed* the Aggregate Revolving Commitment Amount, then the Letter of Credit Sublimit and/or the Swingline Sublimit, as applicable, shall be automatically reduced by the amount of such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower's notice to the Administrative Agent shall designate the date (which shall be a Business Day) of such termination or reduction and the amount of any partial reduction, and such termination or reduction of the Aggregate Revolving Commitments shall be effective on the date specified in the Borrower's notice and shall reduce the Revolving Commitments of each Lender proportionately to its Revolving Commitment Percentage thereof (<u>provided</u>, <u>that</u>, a notice of termination or reduction of the Aggregate Revolving Commitments delivered by the Borrower may be expressly conditioned in writing upon the consummation of any specified transaction or event, in which case, such notice of termination or reduction shall be revoked or extended if such event or transaction does *not* occur or is delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary in the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Aggregate Term Loan A Commitments shall terminate automatically on the Effective Date upon the Borrowing of the Term Loan A on the Effective Date pursuant to this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Aggregate DDTL Commitments shall (I) be automatically reduced, on a Dollar-for-Dollar basis, by the aggregate original principal amount of each advance made under the Delayed Draw Term Loan during the DDTL Availability Period at the time such advance is made, and (II) terminate automatically on the DDTL Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mandatory Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Revolving Commitments</u>. If, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Aggregate Revolving Credit Exposure shall *exceed* the Aggregate Revolving Commitment Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, shall *exceed* the Letter of Credit Sublimit; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the aggregate outstanding principal balance of all Swingline Loans, taken together, shall *exceed* the Swingline Sublimit;

then immediate prepayment will be made on, or in respect of, the Revolving Obligations in an amount equal to such excess; <u>provided</u>, <u>that</u>, except with respect to the foregoing <u>clause (c)(i)(B)</u>, Letter of Credit Obligations will *not* be Cash Collateralized hereunder until the Revolving Loans and Swingline Loans shall have been Paid in Full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Asset Sales and Involuntary Dispositions</u>. Prepayment will be made on the Obligations on the third Business Day following receipt of Net Cash Proceeds in an amount equal to one hundred percent (100.0%) of the Net Cash Proceeds received from any Asset Sale or Involuntary Disposition involving any asset of any Credit Party, any Subsidiary or any other Regulated Entity (other than (A) any Asset Sales the aggregate amount of Net Cash Proceeds of which does *not exceed* Five-Hundred Thousand Dollars ($500,000) in any Fiscal Year, and (B) any Involuntary Dispositions the aggregate amount of Net Cash Proceeds of which does *not exceed* Five-Hundred Thousand Dollars ($500,000) in any Fiscal Year, in each case, to the extent such Net Cash Proceeds are not reinvested in the assets (but *excluding* current assets as classified by GAAP) of the Credit Parties, Subsidiaries and other Regulated Entities within one hundred eighty (180) calendar days of the date of such Asset Sale or Involuntary Disposition (it being understood that such prepayment shall be due immediately upon the expiration of such 180-day period); <u>provided</u>, <u>that</u>, no such reinvestment shall be made upon the occurrence and during the continuance of any Event of Default). Notwithstanding anything to the contrary in the foregoing, no prepayments will be required to be made on the Obligations with respect to the receipt of Net Cash Proceeds from the sale of any portfolio assets by any Regulated Entity in the ordinary course of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Debt Transactions</u>. Prepayment will be made on the Obligations in an amount equal to one hundred percent (100.0%) of the Net Cash Proceeds from any Debt Transactions on the Business Day following receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Specified Equity Contributions</u>. Prepayment will be made on the Obligations in an amount equal to one hundred percent (100.0%) of the Net Cash Proceeds from any Specified Equity Contribution on the Business Day following receipt thereof.

Notwithstanding any other provision of this <u>Section</u> <u>2.11</u>, with respect to any amount of Net Cash Proceeds subject to any of the foregoing <u>clauses (c)(ii</u>) through <u>(c)(iv</u>) attributable to a Foreign Subsidiary, in the event that the Borrower determines in good faith in consultation with the Administrative Agent that the upstreaming of cash equal to such amount by such Foreign Subsidiary would (i) violate any local law (*e.g*., financial assistance, thin capitalization, corporate benefit, or the fiduciary and statutory duties of the directors of such Foreign Subsidiary) or any term of any Organizational Document applicable to such Foreign Subsidiary required by Applicable Law, or (ii) cause any material adverse tax consequence to the Credit Parties, Subsidiaries and other Regulated Entities, then such amount shall be *excluded* from such Net Cash Proceeds; <u>provided</u>, <u>that</u>, for one (1) year from the date on which the obligation to make the applicable prepayment arose, the Borrower and such Foreign Subsidiary shall use all commercially reasonable efforts to overcome or eliminate any such restrictions or minimize any such costs of prepayment and, if successful, shall promptly make the applicable prepayment, unless the Borrower shall have determined in good faith in consultation with the Administrative Agent that such actions would require the expenditure of a material amount of funds.

------

Section 2.12 <u>Application of Prepayments</u>. Within each Loan, prepayments will be applied, *<u>first</u>*, to Base Rate Loans, and <u>*then*</u>, to SOFR Loans in direct order of Interest Period maturities. In addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voluntary Prepayments</u>. Voluntary prepayments will be applied as specified by the Borrower, <u>provided</u>, <u>that</u>, in the case of prepayments on any of the Term Loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the prepayment will be applied ratably to the Term Loans then outstanding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to each Term Loan then outstanding, the prepayments will be applied to remaining principal installments thereunder as directed in writing by the Borrower (and, absent such direction, in direct order of maturity thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mandatory Prepayments</u>. Mandatory prepayments will be applied as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Mandatory prepayments in respect of the Revolving Commitments under <u>Section</u> <u>2.11(c)(i</u>) above shall be applied to the respective Revolving Obligations, as appropriate, but without a permanent reduction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Mandatory prepayments in respect of Asset Sales and Involuntary Dispositions under <u>Section 2.11(c)(ii</u>), Debt Transactions under <u>Section 2.11(c)(iii</u>), and Specified Equity Contributions under <u>Section 2.11(c)(iv</u>) shall be applied as follows: (A) <u>*first*</u>, ratably to the Term Loans, until the same are paid in full; and (B) <u>*then*</u>, to the Revolving Obligations (without a permanent reduction thereof) as follows, (I) <u>*first*</u>, to the principal balance of the Swingline Loans, until the same shall have been paid in full, to the Swingline Lender, (II) <u>*second*</u>, to the principal balance of the Revolving Loans, until the same shall have been paid in full, *pro rata* to the Lenders based on their respective Revolving Commitments, and (III) <u>*third*</u>, to Cash Collateralize the Letters of Credit as of such date *plus* any accrued and unpaid fees thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Mandatory prepayments with respect to each of the Term Loans will be applied to remaining principal installments thereunder (including the installment due on the applicable Maturity Date therefor) on a *pro rata* basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Prepayments on the Obligations will be paid by the Administrative Agent to the Lenders ratably in accordance with their respective interests therein (except for Defaulting Lenders where their share will be applied as provided in <u>Section 2.16(a)(ii</u>) hereof).

Section 2.13 <u>General Provisions Regarding Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments by the Borrower of principal, interest, fees and other Obligations hereunder or under any other Credit Document shall be made in Dollars in immediately available funds, without defense, recoupment, setoff or counterclaim, free of any restriction or condition. The Administrative Agent shall, and the Borrower hereby authorizes the Administrative Agent to, debit a deposit account of the Borrower or any of its Subsidiaries held with the Administrative Agent or any of its Affiliates and designated for such purpose by the Borrower or such Subsidiary in order to cause timely payment to be made to the Administrative Agent of all principal, interest and fees due hereunder or under any other Credit Document (subject to sufficient funds being available in its accounts for that purpose).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the Administrative Agent is unable to debit a deposit account of the Borrower or any of its Subsidiaries held with the Administrative Agent or any of its Affiliates in order to cause timely payment to be made to the Administrative Agent of all principal, interest and fees due

------

hereunder or any other Credit Document (including because insufficient funds are available in its accounts for that purpose), payments hereunder and under any other Credit Document shall be delivered to the Administrative Agent, for the account of the Lenders, *not later than* 2:00 p.m. on the date due at the Principal Office of the Administrative Agent or via wire transfer of immediately available funds to an account designated by the Administrative Agent (or at such other location as may be designated in writing by the Administrative Agent from time to time); for purposes of computing interest and fees, funds received by the Administrative Agent after that time on such due date shall be deemed to have been paid by the Borrower on the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All payments in respect of the principal amount of any Loan (other than voluntary repayments of Revolving Loans) shall be accompanied by payment of accrued interest on the principal amount being repaid or prepaid, and all such payments (and, in any event, any payments in respect of any Loan on a date when interest is due and payable with respect to such Loan) shall be applied to the payment of interest then due and payable before application to principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall promptly distribute to each Lender at such address as such Lender shall indicate in writing, such Lender's applicable *pro rata* share of all payments and prepayments of principal and interest due to such Lender hereunder, together with all other amounts due with respect thereto, including all fees payable with respect thereto, to the extent received by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary in the foregoing provisions hereof, if any Conversion / Continuation Notice is withdrawn as to any Affected Lender or if any Affected Lender makes Base Rate Loans in lieu of its *pro rata* share of any SOFR Loans, the Administrative Agent shall give effect thereto in apportioning payments received thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subject to the provisos set forth in the definition of "*Interest Period*", whenever any payment to be made hereunder shall be stated to be due on a day that is *not* a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest hereunder or of the Commitment Fee hereunder, but such payment shall be deemed to have been made on the date therefor for all other purposes hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Administrative Agent may, but shall *not* be obligated to, deem any payment by, or on behalf of, the Borrower hereunder that is *not* made in same day funds prior to 2:00 p.m. to be a non-conforming payment. Any such payment shall *not* be deemed to have been received by the Administrative Agent until the *later* of: (i) the time such funds become available funds; and (ii) the applicable next Business Day. The Administrative Agent shall give prompt telephonic notice to the Borrower and each applicable Lender (confirmed in writing) if any payment is non-conforming. Any non-conforming payment may constitute or become a Default or Event of Default in accordance with the terms of <u>Section</u> <u>9.1(a</u>). Interest shall continue to accrue on any principal as to which a non-conforming payment is made until such funds become available funds (but in no event *less than* the period from the date of such payment to the next succeeding applicable Business Day) at the Default Rate (unless otherwise provided by the Required Lenders) from the date such amount was due and payable until the date such amount is Paid in Full.

Section 2.14 <u>Sharing of Payments by Lenders</u>. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of, or interest on, any of its Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of such Loans and accrued interest thereon or other such obligations *greater than* its *pro rata* share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the

------

Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of, and accrued interest on, their respective Loans and other amounts owing them; <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the provisions of this Section shall *not* be construed to apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any payment made by the Borrower pursuant to, and in accordance with, the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any amounts applied by the Swingline Lender to outstanding Swingline Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any amounts applied to Letter of Credit Obligations by the Issuing Bank or Swingline Loans by the Swingline Lender, as appropriate, from Cash Collateral provided under <u>Section 2.15</u> or <u>Section 2.16</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any payment obtained by a Lender as consideration for the assignment of, or sale of, a participation in any of its Loans, or participations in Letter of Credit Obligations, Swingline Loans or other obligations hereunder, to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this <u>Section</u> <u>2.14</u> shall apply).

Each of the Credit Parties consents to the foregoing and agrees, to the extent it may effectively do so under Applicable Laws, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Credit Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Credit Party in the amount of such participation.

Section 2.15 <u>Cash Collateral</u>. At any time that there shall exist a Defaulting Lender, within one (1) Business Day following the written request of the Administrative Agent or the Issuing Bank (with a copy to the Administrative Agent) the Borrower shall Cash Collateralize the Issuing Bank's Fronting Exposure with respect to such Defaulting Lender in an amount sufficient to cover the applicable Fronting Exposure (after giving effect to <u>Section</u> <u>2.16(a)(iv</u>) and any Cash Collateral provided by the Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant of Security Interest</u>. The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grants to the Administrative Agent, for the benefit of the Issuing Bank, and agrees to maintain, a perfected first priority security interest in all such Cash Collateral as security for the Defaulting Lenders' obligation to fund participations in respect of Letter of Credit Obligations, to be applied pursuant to <u>clause (b</u>) below. If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent and the Issuing Bank as herein provided, or that the total amount of such Cash Collateral is less than the applicable Fronting Exposure, the Borrower will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an

------

amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Application</u>. Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this <u>Section 2.15</u> or <u>Section 2.16</u> in respect of Letters of Credit shall be applied to the satisfaction of the Defaulting Lender's obligation to fund participations in respect of Letter of Credit Obligations (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided for herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Requirement</u>. Cash Collateral (or the appropriate portion thereof) provided to reduce the Issuing Bank's Fronting Exposure shall no longer be required to be held as Cash Collateral pursuant to this <u>Section</u> <u>2.15</u> following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the elimination of the applicable Fronting Exposure (including by the termination of Defaulting Lender status of the applicable Lender); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the determination by the Administrative Agent and the Issuing Bank that there exists excess Cash Collateral;

<u>provided, that</u>, (x) that Cash Collateral furnished by, or on behalf of, a Credit Party shall *not* be released during the continuance of a Default or Event of Default (and, following application as provided in this <u>Section 2.15</u>, may be otherwise applied in accordance with <u>Section 9.3</u>) but shall be released upon the cure, termination or waiver of such Default or Event of Default in accordance with the terms of this Agreement, and (y) the Person providing Cash Collateral and the Issuing Bank or Swingline Lender, as applicable, may agree that Cash Collateral shall *not* be released, but instead held to support future anticipated Fronting Exposure or other obligations.

Section 2.16 <u>Defaulting Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Defaulting Lender Adjustments</u>. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Waivers and Amendments</u>. Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in <u>Section 11.4(a)(iii)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Defaulting Lender Waterfall</u>. Any payment of principal, interest, fees or other amount (other than fees which any Defaulting Lender is not entitled to receive pursuant to <u>clause</u> <u>(a)(iii</u>) below) received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to <u>Article 9</u> or otherwise, and including any amounts made available to the Administrative Agent by that Defaulting Lender pursuant to <u>Section</u> <u>11.3</u>), shall be applied at such time or times as may be determined by the Administrative Agent as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) <u>*first*</u>, to the payment of any amounts owing by that Defaulting Lender to the Administrative Agent hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <u>*second*</u>, to the payment on a *pro rata* basis of any amounts owing by that Defaulting Lender to the Issuing Bank or the Swingline Lender hereunder;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)*<u>third</u>*, to Cash Collateralize the Issuing Bank's Fronting Exposure with respect to such Defaulting Lender in accordance with <u>Section</u> <u>2.15</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) <u>*fourth*</u>, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which that Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) <u>*fifth*</u>, if so determined by the Administrative Agent and the Borrower, to be held in a non-interest bearing deposit account and released in order to: (I) satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this Agreement; and (II) Cash Collateralize the Issuing Bank's future Fronting Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with <u>Section</u> <u>2.15</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) <u>*sixth*</u>, to the payment of any amounts owing to the Lenders, the Issuing Bank or the Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the Issuing Bank or the Swingline Lender against that Defaulting Lender as a result of that Defaulting Lender's breach of its obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) <u>*seventh*</u>, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against that Defaulting Lender as a result of that Defaulting Lender's breach of its obligations under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) <u>*eighth*</u>, to that Defaulting Lender or as otherwise directed by a court of competent jurisdiction;

<u>provided, that</u>, if (x) such payment is a payment of the principal amount of any Loans or Letter of Credit Borrowings in respect of which that Defaulting Lender has *not* fully funded its appropriate share, and (y) such Loans or Letter of Credit Borrowings were made at a time when the conditions set forth in <u>Section</u> <u>5.2</u> were satisfied or waived, such payment shall be applied *solely* to the payment of the Loans of, and Letter of Credit Borrowings owed to, all Non-Defaulting Lenders on a *pro rata* basis, prior to being applied to the payment of any Loans of, or Letter of Credit Borrowings owed to, such Defaulting Lender, until such time as all Loans and funded and unfunded participations in Letter of Credit Obligations and Swingline Loans are held by the Lenders *pro rata* in accordance with their Revolving Commitments without giving effect to <u>clause (a)(iv</u>) below. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this <u>clause (a)(ii</u>) shall be deemed paid to (and the underlying obligations satisfied to the extent of such payment) and redirected by that Defaulting Lender, and each Lender irrevocably consents hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Certain Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Such Defaulting Lender shall *not* be entitled to receive any Commitment Fee, any fees with respect to Letters of Credit (except as provided in <u>clause (b</u>) below) or any other fees hereunder for any period during which that Lender is a Defaulting Lender (and the Borrower shall *not* be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Each Defaulting Lender shall be entitled to receive Letter of Credit Fees for any period during which that Lender is a Defaulting Lender only to the extent allocable to its Revolving Commitment Percentage of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to <u>Section</u> <u>2.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) With respect to any fee *not* required to be paid to any Defaulting Lender pursuant to <u>clause (a)(iii)(A)</u> or <u>(a)(iii)(B)</u> above, the Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender's participation in Letter of Credit Obligations or Swingline Loans that has been reallocated to such Non-Defaulting Lender pursuant to <u>clause (a)(iv</u>) below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) pay to the Issuing Bank and Swingline Lender, as applicable, the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to the Issuing Bank's or Swingline Lender's Fronting Exposure to such Defaulting Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) *not* be required to pay the remaining amount of any such fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Reallocation of Participations to Reduce Fronting Exposure</u>. All, or any part, of such Defaulting Lender's participation in Letter of Credit Obligations and Swingline Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Revolving Commitment Percentages (calculated without regard to such Defaulting Lender's Revolving Commitment), but only to the extent that: (x) the conditions set forth in <u>Section</u> <u>5.2</u> are satisfied at the time of such reallocation (and, unless the Borrower shall have otherwise notified the Administrative Agent at such time, the Borrower shall be deemed to have represented and warranted that such conditions are satisfied at such time); and (y) such reallocation does *not* cause the aggregate Revolving Credit Exposure at such time to *exceed* such Non-Defaulting Lender's Revolving Commitment. No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender's increased exposure following such reallocation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Cash Collateral, Repayment of Swingline Loans</u>. If the reallocation described in <u>clause (a)(iv</u>) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) <u>*first*</u>, prepay Swingline Loans in an amount equal to the Swingline Lender's Fronting Exposure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <u>*second*</u>, Cash Collateralize the Issuing Bank's Fronting Exposure in accordance with the procedures set forth in <u>Section</u> <u>2.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Defaulting Lender Cure</u>. If the Borrower, the Administrative Agent and the Swingline Lender and the Issuing Bank agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon, as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit

------

and Swingline Loans to be held *pro rata* by the Lenders in accordance with the Revolving Commitments (without giving effect to <u>clause (a)(iv</u>) above), whereupon such Lender will cease to be a Defaulting Lender; <u>provided</u>, <u>that</u>, no adjustments will be made retroactively with respect to fees accrued or payments made by, or on behalf of, the Borrower while that Lender was a Defaulting Lender; and <u>provided</u>, <u>further</u>, <u>that</u>, except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>New Swingline Loans / Letters of Credit</u>. So long as any Lender is a Defaulting Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Swingline Lender shall *not* be required to fund Swingline Loans unless it is satisfied that it will have no Fronting Exposure after giving effect to such Swingline Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Issuing Bank shall *not* be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.

Section 2.17 <u>Removal or Replacement of Lenders</u>. If:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender requests compensation under <u>Section</u> <u>3.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Credit Party is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>3.3</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Lender gives notice of an inability to fund SOFR Loans under <u>Section</u> <u>3.1(b</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any Lender is a Defaulting Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any Lender (a "<u>*Non-Consenting Lender*</u>") does not consent (including by way of a failure to respond in writing to a proposed amendment, consent or waiver by the date and time specified by the Administrative Agent) to a proposed amendment, consent, change, waiver, discharge or termination hereunder or with respect to any Credit Document that has been approved by the Required Lenders;

then, the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate without recourse (in accordance with, and subject to, the restrictions contained in, and consents required by, <u>Section</u> <u>11.5</u>), all of its interests, rights (other than its rights under <u>Section 3.2</u>, <u>Section 3.3</u> and <u>Section 11.2</u>) and obligations under this Agreement and the related Credit Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower shall have paid to the Administrative Agent the assignment fee specified in <u>Section</u> <u>11.5(b)(iv</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in Letter of Credit Borrowings, as applicable, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Credit Documents (including any amounts under <u>Section</u> <u>3.1(c</u>)) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any such assignment resulting from a claim for compensation under <u>Section 3.2</u> or payments required to be made pursuant to <u>Section 3.3</u>, such assignment is reasonably expected to result in a reduction in such compensation or payments thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such assignment does *not* conflict with Applicable Laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in the case of any such assignment resulting from a Non-Consenting Lender's failure to consent to a proposed amendment, consent, change, waiver, discharge or termination, the successor replacement Lender shall have consented to the proposed amendment, consent, change, waiver, discharge or termination.

Each Lender agrees that in the event it, or its interests in the Loans and obligations hereunder, shall become subject to the replacement and removal provisions of this Section, it will cooperate with the Borrower and the Administrative Agent to give effect to the provisions hereof, including execution and delivery of an Assignment Agreement in connection therewith, but the replacement and removal provisions of this Section shall be effective regardless of whether an Assignment Agreement shall have been given.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

**Article 3** 

**<u>YIELD PROTECTION</u>**

Section 3.1 <u>Making or Maintaining SOFR Loans; Benchmark Replacement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Inability to Determine Rates</u>. Notwithstanding anything to the contrary in this Agreement or any other Credit Document (<u>provided</u>, <u>that</u>, for the avoidance of doubt, any Swap Agreement shall be deemed not to be a "*Credit Document*" for purposes of this <u>Section</u> <u>3.1</u>), in the event that the Administrative Agent shall have determined (which determination shall be final and conclusive and binding upon all parties to this Agreement), on any Interest Rate Determination Date with respect to any SOFR Loans, that reasonable and adequate means do *not* exist for ascertaining the interest rate applicable to such SOFR Loans on the basis provided for in the definition of "*Term SOFR*" (and any related defined terms used therein) in <u>Section</u> <u>1.1</u>, then the Administrative Agent shall give notice (either by telefacsimile or by telephone confirmed in writing) to the Borrower and each Lender of such determination, whereupon and whereafter, (i) no Loans may or shall be made as, or continued as or converted into, SOFR Loans until such time as the Administrative Agent shall have notified the Borrower and the Lenders in writing that the event(s) and/or circumstance(s) giving rise to such initial determination no longer exist, (ii) any Funding Notice(s) and/or any Conversion / Continuation Notice(s) given by the Borrower with respect to any Loan(s) in respect of which such determination was made shall be deemed to have been rescinded by the Borrower, and (iii) all such Loan(s) described in the foregoing <u>clause (a)(ii</u>) shall be automatically made or continued as, or converted into, as applicable, Base Rate Loans on the last day of the then-current Interest Period applicable thereto (without reference to clause (c) of the definition of "Base Rate" in <u>Section</u> <u>1.1</u>), unless the Borrower shall have prepaid such Loan(s) in accordance with this Agreement; <u>provided</u>, <u>that</u>, if the event(s) and/or circumstance(s) giving rise to such initial determination shall have occurred but only with respect to certain (but *not* all) of the tenors of the then applicable term rate Benchmark (including, for the avoidance of doubt, the SOFR Reference Rate for any applicable tenor), then (A) the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any

------

similar or analogous definition) for any Benchmark settings at or after such time to remove such illegal or impracticable tenor, and (B) if a tenor that was removed pursuant to the foregoing <u>clause (a)(A</u>) is subsequently displayed on a screen or information service for a Benchmark, then the Administrative Agent may modify the definition of "Interest Period" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Illegality or Impracticability of the Benchmark. Subject to clause (g</u>) below, in the event that, on any date, any Lender shall have determined (which determination (A) shall be final and conclusive and binding upon all parties to this Agreement, but (B) shall be made only after written notice to, and consultation with, the Borrower and the Administrative Agent) that a Benchmark Illegality / Impracticability Event has occurred with respect to such Lender, then such Lender shall be an "*<u>Affected Lender</u>*" and such Lender shall, on that date, give notice (either by telefacsimile or by telephone confirmed in writing) to the Borrower and the Administrative Agent of such determination (which notice the Administrative Agent shall promptly transmit to each other Lender). Thereafter: (i) the obligation of such Affected Lender to make Loans as, or to continue Loans as or to convert Loans to, SOFR Loans shall be suspended, until such notice shall have been withdrawn by such Affected Lender in writing to the Administrative Agent and the Borrower; (ii) to the extent that such determination by such Affected Lender relates to a SOFR Loan, or to a continuation thereof or a conversion of outstanding Loans thereto, then being requested by the Borrower pursuant to a Funding Notice or Conversion / Continuation Notice (as applicable), then the Affected Lender shall make such Loan as (or convert such Loan to, as applicable) a Base Rate Loan, determined without reference to clause (c) of the definition of "Base Rate" in <u>Section</u> 1.1; (iii) such Affected Lender's obligation to maintain its outstanding SOFR Loans (the "*<u>Affected Loans</u>*") shall be terminated at the earlier to occur of (A) the expiration of the Interest Period then in effect with respect to such Affected Loans, or (B) when required by Applicable Law; and (iv) such Affected Loans shall automatically convert into Base Rate Loans, determined without reference to clause (c) of the definition of "Base Rate" in <u>Section</u> <u>1.1</u>, on the date of such termination described in the foregoing <u>clause (b)(iii</u>). Notwithstanding anything to the contrary in the foregoing of this clause (b), to the extent that a determination by an Affected Lender as described above relates to a SOFR Loan (or a continuation thereof or a conversion of outstanding Loans thereto) then being requested by the Borrower pursuant to a Funding Notice or Conversion / Continuation Notice (as applicable), then the Borrower shall have the option, subject to the provisions of the foregoing <u>clause (a</u>), to rescind such Funding Notice or Conversion / Continuation Notice (as applicable) as to all Lenders by giving notice (either by telefacsimile or telephone confirmed in writing) to the Administrative Agent of such rescission on the date on which such Affected Lender gives notice of its determination as described in the foregoing of this <u>clause (b</u>) (which notice of rescission the Administrative Agent shall promptly transmit to each other Lender). Except as otherwise provided in the immediately preceding sentence, nothing in this <u>clause (b</u>) shall affect the obligation of any Lender, other than an Affected Lender, to make or maintain Loans as, or to continue outstanding Loans as or convert outstanding Loans into, SOFR Loans in accordance with the terms of this Agreement. Notwithstanding anything to the contrary in the foregoing, if a Benchmark Illegality / Impracticability Event shall have occurred but only with respect to certain (but not all) of the tenors of the then applicable term rate Benchmark (including, for the avoidance of doubt, the SOFR Reference Rate for any applicable tenor), then: (I) the Administrative Agent may modify the definition of "*<u>Interest Period</u>*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such illegal or impracticable tenor; and (II) if a tenor that was removed pursuant to the foregoing <u>clause (b)(I</u>) is not, or is no longer, subject to a Benchmark Illegality / Impracticability Event, then the Administrative Agent may modify the definition of "*Interest Period*" in <u>Section</u> <u>1.1</u> (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Compensation for Breakage or Non-Commencement of Interest Periods</u>. The Borrower shall compensate each Lender, upon written request by such Lender (which request shall set forth the

------

basis for requesting such amounts), for all reasonable out-of-pocket losses, expenses and liabilities (including any interest paid, or calculated to be due and payable, by such Lender to lenders of funds borrowed by it to make or carry its SOFR Loans, and any loss, expense or liability sustained by such Lender in connection with the liquidation or re-employment of such funds, but *excluding* loss of anticipated profits) that such Lender sustains if: (i) for any reason (other than a default by such Lender), a borrowing of any SOFR Loans does not occur on a date specified therefor in a Funding Notice (or a telephonic request for borrowing), or a conversion to, or continuation of, any SOFR Loans does not occur on a date specified therefor in a Conversion / Continuation Notice (or a telephonic request for conversion or continuation); (ii) any prepayment or other principal payment of, or any conversion of, any of its SOFR Loans occurs on any day other than the last day of an Interest Period applicable to that Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise), including as a result of an assignment in connection with the replacement of a Lender pursuant to <u>Section</u> <u>2.17</u>; or (iii) any prepayment of any of its SOFR Loans is not made on any date specified in a notice of prepayment given by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Booking of SOFR Loans</u>. Any Lender may make, carry or transfer SOFR Loans at, to, or for the account of any of its branch offices or the office of an Affiliate of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certificates for Reimbursement</u>. A certificate of a Lender setting forth, in reasonable detail, the amount(s) necessary to compensate such Lender, as specified in the foregoing <u>clause (c</u>), and the circumstances giving rise thereto, shall be delivered to the Borrower and shall be conclusive absent manifest error. In the absence of any such manifest error, the Borrower shall pay to the applicable Lender or the Issuing Bank, as the case may be, the amount(s) shown as due on any such certificate promptly and, in any event, within ten (10) Business Days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Delay in Requests</u>. The Borrower shall *not* be required to compensate a Lender pursuant to the foregoing <u>clause (c</u>) for any such amount(s) incurred *more than* six (6) calendar months *prior* to the date on which such Lender shall have delivered to the Borrower the certificate referenced in the foregoing <u>clause (e</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Benchmark Replacement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>*Generally*</u>. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, if the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error), or the Required Lenders (individually or jointly) notify the Administrative Agent (with, in the case of the Required Lenders, a copy delivered to the Borrower) that the Required Lenders (as applicable) have determined, that a Benchmark Illegality / Impracticability Event has occurred, then, on a date and time determined by the Administrative Agent (any such date, a "<u>*Benchmark Replacement Date*</u>"), which date shall be at the end of an Interest Period or on the relevant Interest Payment Date, as applicable, for interest calculated, the then current Benchmark shall be replaced under this Agreement and the other Credit Documents with the Benchmark Replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>*Amendment*</u>. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, (A) if the Administrative Agent determines that any alternative Benchmark (other than the SOFR Reference Rate for any applicable tenor) set forth in the definition of "*Benchmark Replacement*" in <u>Section</u> <u>1.1</u> is available on, or prior to, the applicable Benchmark Replacement Date, or (B) a Benchmark Illegality / Impracticability Event has occurred with respect to a Benchmark Replacement (other than the SOFR Reference Rate for any applicable tenor) then in effect, then, in each case of the foregoing <u>clauses (g)(ii)(A</u>) and (<u>g)(ii)(B</u>), the Administrative Agent and the Borrower may amend this Agreement solely for the

------

purpose of replacing the SOFR Reference Rate (for any applicable tenor), or any then current Benchmark Replacement, in accordance with this <u>Section</u> <u>3.1</u> at the end of any applicable Interest Period, relevant Interest Payment Date or payment period for interest calculated, as applicable, with another alternate benchmark rate, in any such case, giving due consideration to any evolving, or then existing, convention(s) for similar Dollar-denominated syndicated credit facilities for such alternative benchmark(s), and, in each case, including any mathematical or other adjustments to such benchmark(s) (giving due consideration to any evolving, or then existing, convention(s) for similar Dollar-denominated syndicated credit facilities for such benchmark(s)), which adjustment(s), or method(s) for calculating such adjustment(s), shall be published on an information service as selected by the Administrative Agent from time to time in its reasonable discretion and may be periodically updated. For the avoidance of doubt, any such proposed rate and adjustment(s) shall constitute a Benchmark Replacement. Any such amendment shall become effective at 5:00 P.M. (New York City time) on the date that is five (5) Business Days *after* the date on which the Administrative Agent shall have posted a copy of such proposed amendment to all Lenders and the Borrower, without any further action(s) and/or consent(s) of any Credit Party, any other party to this Agreement or any other Credit Document and/or any other Person, so long as the Administrative Agent has *not* received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>*Notices*</u>. The Administrative Agent shall notify (in one (1) or more notices) the Borrower and each Lender of the implementation of any Benchmark Replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>*Administration of Benchmark Replacement*</u>. Any Benchmark Replacement shall be applied in a manner consistent with market practice; <u>provided, that</u>, to the extent that such market practice is not administratively feasible for the Administrative Agent, then such Benchmark Replacement shall be applied in a manner as otherwise reasonably determined by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>*Floor*</u>. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, if, at any time, any Benchmark Replacement, as determined in accordance with this <u>Section 3.1</u> and the related definitions in <u>Section 1.1</u>, shall be *less than* the Floor, then such Benchmark Replacement shall be deemed to equal the Floor for all purposes of this Agreement and the other Credit Documents; <u>provided, that</u>, notwithstanding anything to the contrary in this Agreement or in any other Credit Document, at any time that the applicable interest rate for Base Rate Loans is determined without reference to clause (c) of the definition of "*Base Rate*" in <u>Section 1.1</u> by operation of this <u>Section 3.1</u>, then the "*Floor*", for purposes of calculating such applicable interest rate, shall be increased by one percent (1.00%) per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>*Conforming Changes*</u>. In connection with the use, administration, adoption and/or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Conforming Changes from time to time in consultation with the Borrower, and, notwithstanding anything to the contrary in this Agreement or in any other Credit Document, any amendments implementing such Conforming Changes will become effective without any further action(s) and/or consent(s) of any Credit Party, any other party to this Agreement or any other Credit Document and/or any other Person; <u>provided</u>, <u>that</u>, with respect to any such amendment effected in reliance on this <u>clause (g)(vi</u>), the Administrative Agent shall post a copy of such amendment implementing such Conforming Changes to the Borrower and the Lenders reasonably promptly after such amendment becomes effective.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <u>*Standards for Decisions and Determinations*</u>. Any determination, decision, or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this <u>clause (g</u>), including, without limitation, any determination with respect to a tenor, rate or adjustment, or of the occurrence or non-occurrence of an event, circumstance or date, and any decision to take, or refrain from taking, any action or any selection, will be conclusive and binding absent manifest error, and may be made in its or their, as applicable, sole discretion, and, in any event, without consent from any Credit Party, any other party to this Agreement or any other Credit Document or any other Person, except, in each case, as expressly required pursuant to this <u>clause (g</u>).

Section 3.2 <u>Increased Costs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Increased Costs Generally</u>. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender or the Issuing Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in <u>clauses (b</u>) through (<u>d</u>) of the definition of "*Excluded Taxes*", and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on any Lender or the Issuing Bank or the secured overnight financing or any other applicable interbank lending market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its obligation to make any such Loan, or to increase the cost to such Lender, the Issuing Bank or such other Recipient of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender, Issuing Bank or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, Issuing Bank or other Recipient, the Borrower will pay to such Lender, Issuing Bank or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender, Issuing Bank or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

(b) <u>Capital and Liquidity Requirements</u>. If any Lender, the Issuing Bank or the Swingline Lender (for purposes hereof, may be referred to collectively as "*the Lenders*" or a "*Lender*") determines that any Change in Law affecting such Lender or any lending office of such Lender or such Lender's holding company, if any, regarding capital or liquidity ratios or requirements has or would have the effect of reducing the rate of return on such Lender's capital or on the capital of such Lender's holding company, if any, as a consequence of this Agreement, the commitments of such Lender hereunder or the Loans made by, or participations in Letters of Credit and Swingline Loans held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or such Lender's holding company could have achieved but for such Change in Law (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender, as the case may be, such additional amount

------

or amounts as will compensate such Lender or such Lender's holding company for any such reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificates for Reimbursement</u>. A certificate of a Lender or the Issuing Bank setting forth in reasonable detail the amount or amounts necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be, as specified in <u>clauses (a)</u> <u>or (b</u>) above and the circumstances giving rise thereto shall be delivered to the Borrower and shall be conclusive absent manifest error. In the absence of any such manifest error, the Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within ten

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Business Days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delay in Requests</u>. Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender's or the Issuing Bank's right to demand such compensation, <u>provided</u>, <u>that</u>, the Borrower shall *not* be required to compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs incurred or reductions suffered *more than* six (6) months prior to the date that such Lender or the Issuing Bank, as the case may be, delivers to the Borrower the certificate referenced in <u>clause (c</u>) above and notifies the Borrower of such Lender's or the Issuing Bank's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).

Section 3.3 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Issuing Bank</u>. For purposes of this <u>Section 3.3</u>, the term "*Lender*" shall include the Issuing Bank and the term "*Applicable Laws*" shall include FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes</u>. Any and all payments by, or on account of, any obligation of any Credit Party hereunder or under any other Credit Document shall be made without deduction or withholding for any Taxes, except as required by Applicable Laws. If any Applicable Laws (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Laws and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Credit Party shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment of Other Taxes by the Credit Parties</u>. The Credit Parties shall timely pay to the relevant Governmental Authority in accordance with Applicable Laws, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Tax Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Credit Parties shall jointly and severally indemnify each Recipient and shall make payment in respect thereof within ten (10) Business Days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly

------

or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of any such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Lender shall severally indemnify the Administrative Agent, within ten (10) Business Days after demand therefor, for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Indemnified Taxes attributable to such Lender (but only to the extent that any Credit Party has *not* already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Credit Parties to do so);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Taxes attributable to such Lender's failure to comply with the provisions of <u>Section</u> <u>11.5(d</u>) relating to the maintenance of a Participant Register; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Excluded Taxes attributable to such Lender;

in each case, that are payable or paid by the Administrative Agent in connection with any Credit Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Credit Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this <u>clause (d)(ii</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by any Credit Party to a Governmental Authority pursuant to this Section, such Credit Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of a return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Status of Lenders; Tax Documentation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Credit Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by Applicable Laws or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two (2) sentences, the completion, execution and submission of such documentation (other than such documentation set forth in <u>clauses (f)(ii)(A</u>), (<u>f)(ii)(B) and (f)(ii)(D</u>) below) shall *not* be required if, in the Lender's reasonable judgment, such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), duly completed and executed originals of IRS Form W–9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party: (x) with respect to payments of interest under any Credit Document, duly completed and executed originals of IRS Form W–8BEN–E (or W–8BEN as applicable) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty; and (y) with respect to any other applicable payments under any Credit Document, IRS Form W–8BEN–E (or W–8BEN as applicable) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) duly completed and executed originals of IRS Form W–8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 871 or 881(c) of the Internal Revenue Code: (x) a certificate substantially in the form of <u>Exhibit 3.3–1</u> to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Internal Revenue Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Internal Revenue Code (a "<u>*U.S. Tax Compliance Certificate*</u>"); and (y) duly completed and executed originals of IRS Form W–8BEN–E (or W–8BEN as applicable); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) to the extent a Foreign Lender is not the beneficial owner, duly completed and executed originals of IRS Form W–8IMY, accompanied by IRS Form W–8ECI, IRS Form W–8BEN–E (or W–8BEN as applicable), a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit 3.3–2</u> or <u>Exhibit 3.3– 3</u>, IRS Form W–9, and/or other certification documents from each beneficial owner, as applicable; <u>provided, that</u>, if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit 3.3–4</u> on behalf of each such direct and indirect partner;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), duly executed originals of any other form prescribed by Applicable Laws as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Laws to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if a payment made to a Lender under any Credit Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by Applicable Laws (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this <u>clause (f)(ii)(D</u>), "<u>*FATCA*</u>" shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that, if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Treatment of Certain Refunds</u>. Unless required by Applicable Laws, at no time shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a Lender, or have any obligation to pay to any Lender, any refund of Taxes withheld or deducted from funds paid for the account of such Lender. If any indemnified party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this <u>Section</u> <u>3.3</u> (including by the payment of additional amounts pursuant to this <u>Section</u> <u>3.3</u>), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this <u>Section</u> <u>3.3</u> with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of the indemnified party, shall repay to such indemnified party the amount paid over pursuant to this <u>clause (g</u>) (*plus* any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this <u>clause (g</u>), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this <u>clause (g</u>) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification, and giving rise to such refund, had not been deducted, withheld or otherwise imposed, and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any

------

indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Survival</u>. Each party's obligations under this <u>Section 3.3</u> shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Credit Document.

Section 3.4 <u>Mitigation Obligations; Designation of a Different Lending Office</u>. If any Lender requests compensation under <u>Section</u> <u>3.2</u>, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>3.3</u>, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment: (i) would eliminate or reduce amounts payable pursuant to <u>Section</u> <u>3.2</u> or <u>Section</u> <u>3.3</u>, as the case may be, in the future; and (ii) would *not* subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

**Article 4** 

**<u>GUARANTY</u>** 

Section 4.1 <u>The Guaranty</u>. Each of the Guarantors hereby jointly and severally guarantees to the Administrative Agent, the Lenders, the Qualifying Swap Providers, the Qualifying Treasury Management Banks and the other holders of the Obligations as hereinafter provided, as primary obligor and not as surety, the prompt payment of the Obligations (the "<u>*Guaranteed Obligations*</u>") in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise) strictly in accordance with the terms thereof. The Guarantors hereby further agree that, if any of the Obligations are *not* Paid in Full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise), the Guarantors will, jointly and severally, promptly pay the same, without any demand or notice whatsoever, and that, in the case of any extension of time of payment or renewal of any of the Obligations, the same will be promptly Paid in Full when due (whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise) in accordance with the terms of such extension or renewal.

Notwithstanding any provision to the contrary contained herein, in any other of the Credit Documents, Swap Agreements, Treasury Management Agreements or other documents relating to the Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the obligations of each Guarantor under this Agreement and the other Credit Documents shall be limited to an aggregate amount equal to the largest amount that would *not* render such obligations subject to avoidance under the Debtor Relief Laws or any comparable provisions of any applicable state law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Guaranteed Obligations of a Guarantor shall *exclude* any Excluded Swap Obligations with respect to such Guarantor.

------

Section 4.2 <u>Obligations Unconditional</u>. The obligations of the Guarantors under <u>Section 4.1</u> are joint and several, absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of any of the Credit Documents, Swap Agreements or Treasury Management Agreements, or any other agreement or instrument referred to therein, or any substitution, release, impairment or exchange of any other guarantee of or security for any of the Obligations, and, to the fullest extent permitted by Applicable Laws, irrespective of any law or regulation or other circumstance whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this <u>Section</u> <u>4.2</u> that the obligations of the Guarantors hereunder shall be absolute and unconditional under any and all circumstances. Each Guarantor agrees that such Guarantor shall have no right of subrogation, indemnity, reimbursement or contribution against the Borrower or any other Guarantor for amounts paid under this <u>Article 4</u> until such time as the Obligations have been Paid in Full. Without limiting the generality of the foregoing, it is agreed that, to the fullest extent permitted by Applicable Law, the occurrence of any one or more of the following shall *not* alter or impair the liability of any Guarantor hereunder, which shall remain absolute and unconditional as described above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at any time or from time to time, without notice to any Guarantor, the time for any performance of or compliance with any of the Obligations shall be extended, or such performance or compliance shall be waived;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any of the acts mentioned in any of the provisions of any of the Credit Documents, any Secured Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, or any Secured Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand, or any other agreement or instrument referred to in the Credit Documents, such Secured Swap Agreements or such Secured Treasury Management Agreements shall be done or omitted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the maturity of any of the Obligations shall be accelerated, or any of the Obligations shall be modified, supplemented or amended in any respect, or any right under any of the Credit Documents, any Secured Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, or any Secured Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand, or any other agreement or instrument referred to in the Credit Documents, such Secured Swap Agreements or such Secured Treasury Management Agreements shall be waived or any other guarantee of any of the Obligations or any security therefor shall be released, impaired or exchanged in whole or in part or otherwise dealt with;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Lien granted to, or in favor of, the Administrative Agent or any Lender or Lenders as security for any of the Obligations shall fail to attach or be perfected; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any of the Obligations shall be determined to be void or voidable (including, without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to the claims of any Person (including, without limitation, any creditor of any Guarantor).

With respect to its obligations hereunder, each Guarantor hereby expressly waives diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that the Administrative Agent or any Lender exhaust any right, power or remedy or proceed against any Person under any of the Credit Documents, any Secured Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, or any Secured Treasury Management Agreement between any Credit Party, any Subsidiary

------

or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand, or any other agreement or instrument referred to in the Credit Documents, such Secured Swap Agreements or such Secured Treasury Management Agreements, or against any other Person under any other guarantee of, or security for, any of the Obligations.

Section 4.3 <u>Reinstatement</u>. The obligations of the Guarantors under this <u>Article 4</u> shall be automatically reinstated if, and to the extent that, for any reason, any payment by, or on behalf of, any Person in respect of the Obligations is rescinded or must be otherwise restored by any holder of any of the Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and each Guarantor agrees that it will indemnify the Administrative Agent and each Lender on demand for all reasonable costs and expenses (including, without limitation, the fees, charges and disbursements of counsel) incurred by the Administrative Agent or such Lender in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.

Section 4.4 <u>Certain Additional Waivers</u>. Each Guarantor agrees that such Guarantor shall have no right of recourse to security for the Obligations, except through the exercise of rights of subrogation pursuant to <u>Section 4.2</u> and through the exercise of rights of contribution pursuant to <u>Section 4.6</u>.

Section 4.5 <u>Remedies</u>. The Guarantors agree that, to the fullest extent permitted by Applicable Law, as between the Guarantors, on the one hand, and the Administrative Agent and the Lenders, on the other hand, the Obligations may be declared to be forthwith due and payable as provided in <u>Section</u> <u>9.2</u> (and shall be deemed to have become automatically due and payable in the circumstances provided in said <u>Section 9.2</u>) for purposes of <u>Section 4.1</u> notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Obligations from becoming automatically due and payable) as against any other Person and that, in the event of such declaration (or the Obligations being deemed to have become automatically due and payable), the Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by the Guarantors for purposes of <u>Section</u> <u>4.1</u>. The Guarantors acknowledge and agree that their obligations hereunder are secured in accordance with the terms of the Collateral Documents and that the Lenders may exercise their remedies thereunder in accordance with the terms thereof.

Section 4.6 <u>Rights of Contribution</u>. The Guarantors agree among themselves that, in connection with payments made hereunder, each Guarantor shall have contribution rights against the other Guarantors as permitted under Applicable Laws. Such contribution rights shall be subordinate and subject in right of payment to the obligations of such Guarantors under the Credit Documents and no Guarantor shall exercise such rights of contribution until all Obligations have been Paid in Full.

Section 4.7 <u>Guarantee of Payment; Continuing Guarantee</u>. The guarantee in this <u>Article 4</u> is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to all Obligations whenever arising.

Section 4.8 <u>Keepwell</u>. Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Specified Credit Party to honor all of such Specified Credit Party's obligations under the Guaranty and the Collateral Documents in respect of Swap Obligations (<u>provided</u>, <u>that</u>, each Qualified ECP Guarantor shall only be liable under this <u>Section</u> <u>4.8</u> for the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor's obligations and undertakings under this <u>Article 4</u>, voidable under applicable Debtor Relief Laws, and not

------

for any greater amount). The obligations and undertakings of each Qualified ECP Guarantor under this <u>Section</u> <u>4.8</u> shall remain in full force and effect until the Guaranteed Obligations have been indefeasibly paid and performed in full and the commitments relating thereto have expired or terminated, or, with respect to any Guarantor, if earlier, such Guarantor is released from its Guaranteed Obligations in accordance with <u>Section 10.10(a)</u>. Each Qualified ECP Guarantor intends that this <u>Section 4.8</u> constitute, and this <u>Section</u> <u>4.8</u> shall be deemed to constitute, a "keepwell, support, or other agreement" for the benefit of each Specified Credit Party for all purposes of section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

**Article 5** 

**<u>CONDITIONS PRECEDENT</u>** 

Section 5.1 <u>Conditions Precedent to Initial Credit Extensions</u>. The obligation of each Lender to make a Credit Extension on the Effective Date is subject to the satisfaction of the following conditions on or before the Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Executed Credit Documents</u>. Receipt by the Administrative Agent of executed counterparts of this Agreement and the other Credit Documents, in each case, in form and substance reasonably satisfactory to the Administrative Agent and the Lenders and duly executed by the appropriate parties thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organizational Documents</u>. Receipt by the Administrative Agent of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Charter Documents</u>. Copies of articles of incorporation, certificate of organization or formation, or other like document for each of the Credit Parties certified as of a recent date by the appropriate Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Organizational Documents Certificate</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Copies of bylaws, operating agreement, partnership agreement or like document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) copies of resolutions approving the transactions contemplated in connection with the financing and authorizing execution and delivery of the Credit Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) incumbency certificates, for each of the Credit Parties, in each case, certified by an Authorized Officer in form and substance reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Good Standing Certificate</u>. Copies of certificates of good standing, existence or the like of a recent date for each of the Credit Parties from the appropriate Governmental Authority of its jurisdiction of incorporation, formation or organization, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Closing Certificate</u>. Receipt by the Administrative Agent of a certificate from an Authorized Officer of the Borrower, in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders, confirming, among other things:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all consents, approvals, authorizations, registrations, or filings required to be made or obtained by the Borrower and the other Credit Parties, if any, in connection with this Agreement and the other Credit Documents and the transactions contemplated herein and therein have been obtained and are in full force and effect, and all waiting periods with respect thereto shall have expired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no investigation or inquiry by any Governmental Authority regarding this Agreement and the other Credit Documents and the transactions contemplated herein and therein is ongoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) since the date of the most-recent annual audited financial statements for the Borrower, there has been no event or circumstance which could be reasonably expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the most-recent annual audited financial statements were prepared in accordance with GAAP or SAP (as applicable) consistently applied, except as noted therein, and fairly present, in all material respects, the financial condition and results from operations of the Credit Parties, Subsidiaries and Regulated Entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Borrower, individually, and the Credit Parties, Subsidiaries and other Regulated Entities, taken as a whole, are Solvent after giving effect to the transactions contemplated hereby and the incurrence of Indebtedness related thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the conditions set forth in <u>Section 5.2(c)</u> and <u>Section 5.2(d</u>) have been satisfied as of the Effective Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) immediately *after* giving effect to any Credit Extensions to occur on the Effective Date, the Consolidated Leverage Ratio, determined on a Pro Forma Basis (except measured for the most recent Trailing Period in respect of which financial statements of the Credit Parties, Subsidiaries and other Regulated Entities approved by the Administrative Agent are available), is *not greater than* 2.0 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Opinions of Counsel</u>. Receipt by the Administrative Agent of customary opinions of counsel for each of the Credit Parties, including, among other things, opinions regarding the due authorization, execution and delivery of the Credit Documents and the enforceability thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Personal Property Collateral</u>. Receipt by the Collateral Agent of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>UCC Financing Statements</u>. Such UCC financing statements necessary or appropriate to perfect the security interests in the personal property collateral, as determined by the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Intellectual Property Filings</u>. Such patent, trademark and copyright notices, filings and recordations necessary or appropriate to perfect the security interests in intellectual property and intellectual property rights, as determined by the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Pledged Equity Interests</u>. Original certificates evidencing any certificated Equity Interests pledged as collateral, together with undated stock transfer powers executed in blank.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Evidence of Insurance</u>. Certificates of insurance for casualty, liability and any other insurance required by the Credit Documents, identifying the Collateral Agent as lender's loss payee with respect to the casualty insurance and additional insured with respect to the liability insurance, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Financial Statements</u>. Receipt and satisfactory review by the Administrative Agent of copies of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the internally-prepared quarterly unaudited consolidated and consolidating financial statements of the Credit Parties, Subsidiaries and other Regulated Entities for (A) the Fiscal Quarter ended December 31, 2025, and (B) to the extent available prior to the Effective Date, the Fiscal Quarter ended March 31, 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the extent available prior to the Effective Date, the audited consolidated and unaudited consolidating financial statements for the Credit Parties, Subsidiaries and other Regulated Entities for the Fiscal Year ended December 31, 2025 (the "<u>*Annual Financial Statements*</u>"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such other financial information in respect of the financial condition, results of operations and cash flows of the Credit Parties, Subsidiaries and other Regulated Entities as the Administrative Agent shall have reasonably requested prior to the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Funding Notice; Funds Disbursement Instructions</u>. The Administrative Agent shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a duly executed Funding Notice with respect to any Credit Extension(s) to occur on the Effective Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) duly executed disbursement instructions (with wiring instructions and account information) for all disbursements to be made on the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Florida Taxes</u>. The Administrative Agent shall have received either: (i) execution and delivery affidavits evidencing execution and delivery of this Agreement and the Notes outside of the State of Florida; or (ii) evidence that all applicable Florida stamp tax fees have been paid or will be paid contemporaneously with closing of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Refinancing of Existing Indebtedness</u>. Receipt by the Administrative Agent of evidence of the payment in full of existing Indebtedness (other than Indebtedness permitted to remain outstanding after the Effective Date pursuant to <u>Section</u> <u>8.1</u>) including, without limitation, all existing Indebtedness outstanding under the Existing Credit Agreement, and any releases, terminations or other documents reasonably required by the Administrative Agent to evidence the payoff of such Indebtedness and release or termination of Liens related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Fees and Expenses</u>. The Administrative Agent shall have confirmation that all reasonable out-of-pocket fees and expenses (and all filing and recording fees and taxes) required to be paid on or before the Effective Date have been paid, including the reasonable out-of-pocket fees and expenses of counsel for the Administrative Agent.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Patriot Act; Anti-Money Laundering Laws</u>. The provision by the Credit Parties of all documentation and other information that the Administrative Agent or any Lender requests in order to comply with its ongoing obligations under applicable "know your customer" and anti-money laundering rules and regulations, including the Patriot Act, including, without limitation, certification regarding beneficial ownership of legal entity customers (each, a "<u>*Beneficial Ownership Certification*</u>").

For purposes of determining compliance with the conditions specified in this <u>Section</u> <u>5.1</u>, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by, or acceptable or satisfactory to, a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Effective Date specifying its objection thereto.

The funding of the initial Loan(s) hereunder on the Effective Date shall evidence the satisfaction of the foregoing conditions.

Section 5.2 <u>Conditions to Each Credit Extension</u>. The obligation of each Lender to fund its respective Commitment Percentage of any Credit Extension on any Credit Date, including, without limitation, on the Effective Date, are subject to the satisfaction, or waiver in accordance with <u>Section</u> <u>11.4</u>, of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Administrative Agent shall have received a fully executed and delivered Funding Notice, together with the documentation and certifications required therein with respect to each Credit Extension;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) immediately *after* making the Credit Extension requested on such Credit Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Aggregate Revolving Credit Exposure shall *not exceed* the Aggregate Revolving Commitment Amount; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the aggregate outstanding principal balance of any Class of Term Loans shall *not exceed* the aggregate amount of the Commitments of the Lenders of such Class that were in effect on the date(s) that such Commitments were established (as such Commitments were subsequently reduced pursuant to <u>Section 2.11(b)</u>, as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as of such Credit Date, the representations and warranties contained herein and in the other Credit Documents shall be true and correct in all material respects (except to the extent that any such representations and warranties are qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) on and as of that Credit Date, to the same extent as though made on and as of that date, except, to the extent such representations and warranties specifically relate to an earlier date, in which case, such representations and warranties shall have been true and correct in all material respects (except to the extent that any such representations and warranties are qualified by a Material Adverse Effect or other materiality, in which case, such representations and warranties shall be true and correct in all respects) on and as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) as of such Credit Date, no event shall have occurred and be continuing, or would result from the consummation of the applicable Credit Extension, that would constitute an Event of Default or a Default; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *solely* in the case of a Credit Extension consisting of an advance under the Delayed Draw Term Loan, receipt by the Administrative Agent of a certificate, duly executed by an Authorized Officer of the Borrower, certifying, on behalf of the Borrower and each of the other Credit Parties, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) both immediately *before* and immediately *after* giving effect to such Credit Extension, the Credit Parties shall be in compliance, on a Pro Forma Basis, with each of the Financial Covenants; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately *after* giving effect to such Credit Extension, the Consolidated Leverage Ratio, determined on a Pro Forma Basis, shall be *less than* 2.0 to 1.0;

in each case of the foregoing <u>clauses (e)(i)</u> and <u>(e)(ii)</u>, as supported by reasonably detailed calculations attached to such certificate.

**Article 6** 

**<u>REPRESENTATIONS AND WARRANTIES</u>** 

In order to induce the Agents and the Lenders to enter into this Agreement and to make each Credit Extension to be made thereby, the Borrower and each other Credit Party represents and warrants to the Administrative Agent and each Lender as follows:

Section 6.1 <u>Organization; Requisite Power and Authority; Qualification</u>. Each Credit Party, each Subsidiary and each other Regulated Entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation or formation (as the case may be) as identified in <u>Schedule 6.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has all requisite power and authority to own and operate its respective Properties, to carry on its business as now conducted and as proposed to be conducted, to enter into the Credit Documents to which it is a party and to carry out the transactions contemplated thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is qualified to do business and in good standing in every jurisdiction where necessary to carry out its business and operations, except in jurisdictions where the failure to be so qualified or in good standing has *not* had, and could *not* be reasonably expected to have, a Material Adverse Effect.

Section 6.2 <u>Equity Interests, Ownership and Control. Schedule 6.2</u> correctly sets forth the ownership interest(s) or attorney-in-fact relationship(s), as applicable, of each Credit Party in or with (as applicable) each other Credit Party, Subsidiary and other Regulated Entity, together with the ownership interest(s) of each direct holder of outstanding Equity Interests in the Borrower, in each case of the foregoing, as of the Effective Date. The Equity Interests in each Credit Party, each Subsidiary and each other Regulated Entity have been duly authorized and validly issued and are fully paid and non-assessable. Except as set forth on <u>Schedule 6.2</u>, as of the Effective Date, there is no existing option, warrant, call, right, commitment, buy-sell, voting trust or other shareholder agreement or other agreement to which any Subsidiary is a party requiring, and there is no membership interest or other Equity Interests of any Subsidiary outstanding that, upon conversion or exchange, would require, the issuance by any Subsidiary of any additional membership interests or other Equity Interests of any Subsidiary or other

------

Securities convertible into, exchangeable for or evidencing the right to subscribe for or purchase, a membership interest or other Equity Interests of any Subsidiary.

Section 6.3 <u>Due Authorization</u>. The execution, delivery and performance of the Credit Documents have been duly authorized by all necessary action on the part of each Credit Party, each Subsidiary and each other Regulated Entity that is a party thereto.

Section 6.4 <u>No Conflict</u>. The execution, delivery and performance by Credit Parties, the Subsidiaries and the other Regulated Entities of the Credit Documents to which they are parties, and the consummation of the transactions contemplated by the Credit Documents, do *not* and will *not*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) violate, in any material respect, any provision of any Applicable Laws relating to any Credit Party, any Subsidiary or any other Regulated Entity, any of the Organizational Documents of any such Person, or any order, judgment or decree of any court or other agency of government binding on any such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) except as could *not* reasonably be expected to have a Material Adverse Effect, conflict with, result in a breach of or constitute (with due notice or lapse of time or both), a default under any other Contractual Obligations of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) result in, or require the creation or imposition of, any Lien upon any of the Property of any Credit Party, any Subsidiary or any other Regulated Entity (other than any Liens created under any of the Credit Documents in favor of the Collateral Agent, for the benefit of the holders of the Obligations), whether now owned or hereafter acquired; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) require any approval of stockholders, members or partners or any approval or consent of any Person under any Contractual Obligation of any Credit Party, any Subsidiary or any other Regulated Entity.

Section 6.5 <u>Governmental Consents</u>. The execution, delivery and performance by the Credit Parties, the Subsidiaries and the other Regulated Entities of the Credit Documents to which they are a party, and the consummation of the transactions contemplated by the Credit Documents, do *not* and will *not* require, as a condition to the effectiveness thereof, any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority, except for filings and recordings with respect to the Collateral to be made, or otherwise delivered to the Collateral Agent for filing and/or recordation, (a) as of the Effective Date, with respect to each Credit Document executed on the Effective Date, and (b) as of such later date of execution, with respect to each Credit Document executed after the Effective Date, and other filings, recordings or consents which have been obtained or made, as applicable.

Section 6.6 <u>Binding Obligation</u>. Each Credit Document has been duly executed and delivered by each Credit Party, each Subsidiary and each other Regulated Entity that is a party thereto, and is the legally valid and binding obligation of each such Person, enforceable against each such Person in accordance with its respective terms, except as may be limited by Debtor Relief Laws or by equitable principles relating to enforceability.

Section 6.7 <u>Financial Statements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The audited consolidated balance sheet, and related consolidated statements of income or operations and cash flows, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (to the extent required to be delivered in accordance with such Section) the unaudited combined balance sheet, and related combined statements of income or operations and cash flows, of the applicable

------

Qualifying Reciprocal Entities, in each case of the foregoing, for the most recent Fiscal Year ended with respect to which the Borrower has delivered financial statements in accordance with <u>Section</u> <u>7.1(b</u>), and the summaries/schedules prepared by management of the Borrower related thereto, including the notes thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) were prepared in accordance with GAAP or SAP (as applicable) consistently applied throughout the period covered thereby, except as otherwise expressly noted therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) fairly present, in all material respects, the financial condition of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) on a consolidated basis or of the applicable Qualifying Reciprocal Entities on a combined basis (as the case may be) as of the date thereof and their respective results of operations and cash flows for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) show all material indebtedness and other liabilities, direct or contingent, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) or of the applicable Qualifying Reciprocal Entities (as the case may be) as of the date of such financial statements, including liabilities for taxes, material commitments and Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The unaudited consolidated balance sheet, and related consolidated statements of income or operations and cash flows, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (to the extent required to be delivered in accordance with such Section) the unaudited combined balance sheet, and related combined statements of income or operations and cash flows, of the applicable Qualifying Reciprocal Entities, in each case of the foregoing, for the most recent Fiscal Quarter ended with respect to which the Borrower has delivered financial statements in accordance with <u>Section</u> <u>7.1(a</u>), and the summaries/schedules prepared by management of the Borrower related thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) were prepared in accordance with GAAP or SAP (as applicable) consistently applied throughout the period covered thereby, except as otherwise expressly noted therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) fairly present, in all material respects, the financial condition of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) on a consolidated basis or of the applicable Qualifying Reciprocal Entities on a combined basis (as the case may be) as of the date thereof and their respective results of operations and cash flows for the period covered thereby, subject, in the case of each of the foregoing <u>clauses (b)(i)</u> and <u>(b)(ii)</u>, to the absence of footnotes and to normal year-end audit adjustments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) show all material indebtedness and other liabilities, direct or contingent, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) or of the applicable Qualifying Reciprocal Entities (as the case may be) as of the date of such financial statements, including liabilities for taxes, material commitments and Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The forecasted consolidated balance sheet, and related forecasted consolidated statements of income or operations and cash flows, of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (to the extent required to be delivered in accordance with such Section) the forecasted combined balance sheet, and related forecasted combined statements of income or operations and cash flows, of the applicable Qualifying Reciprocal Entities, in each case of the foregoing, most recently delivered by the Borrower in accordance with <u>Section</u> <u>7.1(d</u>) were prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair in light of the conditions existing at the time of delivery of such forecasted financial statements, and represented, at the time of delivery, the

------

Borrower's good faith estimate of the future financial condition and performance of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) or of the applicable Qualifying Reciprocal Entities (as the case may be) based upon assumptions believed by the Borrower to be reasonable at the time.

Section 6.8 <u>No Material Adverse Effect; No Default or Event of Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Material Adverse Effect</u>. Since the Original Closing Date, no event, circumstance or change has occurred that has caused or evidences, either in any case or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Default or Event of Default</u>. No Default or Event of Default has occurred and is continuing.

Section 6.9 <u>Tax Matters</u>. Each Credit Party, each Subsidiary, and each other Regulated Entity has (a) filed all federal and state tax returns required to be filed, and has paid all federal and state taxes levied or imposed upon them or their respective Property, income, businesses and franchises that are due and payable, and (b) filed all other material tax returns and reports required to be filed, and have paid all other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their respective Property, income, businesses and franchises otherwise due and payable, except: (i) those being actively contested in good faith and by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP; or (ii) *solely* with respect to the foregoing <u>clause (b</u>), to the extent that the failure to do so could *not* reasonably be expected to result, in the aggregate when taken together, in a Material Adverse Effect.

Section 6.10 <u>Properties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Title</u>. Each Credit Party, each Subsidiary and each other Regulated Entity has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) good, sufficient and legal title to (in the case of fee-owned Real Estate Assets),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) valid leasehold interests in (in the case of leasehold interests in real or personal Property), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) good title to (in the case of all other personal Property),

all of their respective Properties reflected in their financial statements and other information referred to in <u>Section 6.7</u> and in the most recent financial statements delivered pursuant to <u>Section 7.1,</u> in each case, except for assets disposed of since the date of such financial statements as permitted under <u>Section</u> <u>8.10</u>. All such Properties are free and clear of Liens other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Real Estate</u>. As of the Effective Date, <u>Schedule 6.10(b)</u> contains a true, accurate and complete list of all Real Estate Assets of the Credit Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Intellectual Property</u>. Each Credit Party, each Subsidiary and each other Regulated Entity owns, or is validly licensed to use, all Intellectual Property that is necessary for the present conduct of its business, free and clear of Liens (other than Permitted Liens), without conflict with the rights of any other Person, unless the failure to own or benefit from such valid license could *not*, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. To the knowledge of any Authorized Officer of any Credit Party, no Credit Party, Subsidiary or other Regulated Entity is infringing, misappropriating, diluting, or otherwise violating the Intellectual Property rights of any other

------

Person unless such infringement, misappropriation, dilution or violation could *not*, individually or in the aggregate when taken together, reasonably be expected to have a Material Adverse Effect.

Section 6.11 <u>Environmental Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Credit Party, nor any of its Subsidiaries, any other Regulated Entity nor any of their respective current Facilities (*solely* during, and with respect to, such Person's ownership thereof) or operations, and to their knowledge, no former Facilities (*solely* during, and with respect to, any Credit Party's, its Subsidiary's or any other Regulated Entity's ownership thereof), are subject to any outstanding order, consent decree or settlement agreement with any Person relating to any Environmental Law, any Environmental Claim, or any Hazardous Materials Activity that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Credit Party, nor any of its Subsidiaries nor any other Regulated Entity, has received any letter or request for information under Section 104 of the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9604) or any comparable state law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there are and, to the knowledge of any Authorized Officer of any Credit Party, have been, no Hazardous Materials Activities that could reasonably be expected to form the basis of an Environmental Claim against any Credit Party, any Subsidiary or any other Regulated Entity that, individually or in the aggregate when taken together, could reasonably be expected to have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) no Credit Party, Subsidiary or other Regulated Entity has filed any notice under any Environmental Law indicating past or present treatment of Hazardous Materials at any Facility (solely during, and with respect to, such Credit Party's, Subsidiary's or other Regulated Entity's ownership thereof), and no Credit Party's, Subsidiary's or other Regulated Entity's respective operations involve the generation, transportation, treatment, storage or disposal of hazardous waste, as defined under 40 C.F.R. Parts 260–270 or any equivalent state rule defining hazardous waste, except in compliance with all applicable Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Compliance with all current requirements pursuant to or under Environmental Laws could *not* be reasonably expected to have, individually or in the aggregate when taken together, a Material Adverse Effect.

Section 6.12 <u>No Defaults</u>. No Credit Party, Subsidiary or other Regulated Entity is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any of its Contractual Obligations, except, in each case, where the consequences, direct or indirect, of such default or defaults, if any, could *not* reasonably be expected to have a Material Adverse Effect.

Section 6.13 <u>No Litigation or other Adverse Proceedings</u>. There are no Adverse Proceedings that: (a) purport to affect or pertain to this Agreement or any other Credit Document, or any of the transactions contemplated hereby; or (b) could reasonably be expected to have a Material Adverse Effect. No Credit Party, Subsidiary or other Regulated Entity is subject to, or is in default with respect to, any final judgments, writs, injunctions, decrees, rules or regulations of any Governmental Authority that, individually or in the aggregate when taken together, could reasonably be expected to have a Material Adverse Effect.

Section 6.14 <u>Information Regarding Credit Parties, Subsidiaries and Other Regulated Entities</u>. Set forth on <u>Schedule 6.14</u> is the jurisdiction of incorporation or formation (as the case may be), the exact legal name (and for the prior five (5) years or since the date of its incorporation or formation (as the case

------

may be) has been) and the true and correct U.S. taxpayer identification number (or foreign equivalent, if any) of each Credit Party, each Subsidiary and each other Regulated Entity as of the Effective Date, together with an indication of whether such Person is a Credit Party, a Qualifying Reciprocal Entity, a Regulated Subsidiary, or a Subsidiary (other than a Regulated Subsidiary or a Credit Party).

Section 6.15 <u>Governmental Regulation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Credit Party, Subsidiary or other Regulated Entity is subject to regulation under the Investment Company Act of 1940. No Credit Party, Subsidiary or other Regulated Entity is an "investment company" or a company "controlled" by a "registered investment company" or a "principal underwriter" of a "registered investment company" as such terms are defined in the Investment Company Act of 1940.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Credit Party, Subsidiary or other Regulated Entity is an "enemy" or an "ally of the enemy" within the meaning of Section 2 of the Trading with the Enemy Act of the United States of America (50 U.S.C. App. §§ 1 *et seq*.), as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the knowledge of any Authorized Officer of any Credit Party, no Credit Party, Subsidiary or other Regulated Entity is in violation of: (A) the Trading with the Enemy Act, as amended; (B) any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto; or (C) the Patriot Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No Credit Party, Subsidiary or other Regulated Entity: (A) is a blocked person described in Section 1 of the Anti-Terrorism Order; or (B) to the knowledge of any Authorized Officer of any Credit Party, engages in any dealings or transactions, or is otherwise associated, with any such blocked person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Credit Party, each Subsidiary and each other Regulated Entity, and each of their respective directors and officers and, to the knowledge of any Authorized Officer of any Credit Party, each of their respective employees and agents, are in compliance with applicable Sanctions and are *not* engaged in any activity that would reasonably be expected to result in any Credit Party, any Subsidiary or any other Regulated Entity being designated as a Sanctioned Person. No Credit Party, Subsidiary or other Regulated Entity nor, to the knowledge of any Authorized Officer of any Credit Party, any of their respective Affiliates are in violation of any of the country or list based economic and trade sanctions administered and enforced by OFAC that are described or referenced at http://www.ustreas.gov/offices/enforcement/ofac/ or as otherwise published from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Credit Party, Subsidiary or other Regulated Entity, nor, to the knowledge of any Authorized Officer of any Credit Party, any of their respective directors, officers, employees or Affiliates: (A) is a Sanctioned Person; (B) has any of its Property located in a Sanctioned Country (unless approved by the Lenders); or (C) derives any of its operating income from investments in, or transactions with Sanctioned Persons (unless approved by the Lenders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The proceeds of any Credit Extension or other transaction contemplated by this Agreement or any other Credit Document have not been used: (A) in violation of any Sanctions; (B) to fund any operations in, finance any investments or activities in or make any payments to, a

------

Sanctioned Person or a Sanctioned Country; or (C) in any other manner that would result in a violation of Sanctions by any Person (including the Agents, the Lenders or any other Person participating in the Credit Extensions, whether as an underwriter, advisor, investor or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Credit Party, each Subsidiary and each other Regulated Entity, and, to the knowledge of any Authorized Officer of any Credit Party, each of their respective directors, officers, employees and Affiliates, is in material compliance with Anti-Corruption Laws. No Credit Party, Subsidiary or other Regulated Entity has made a payment, offering, or promise to pay, or authorized the payment of, money or anything of value: (i) in order to assist in obtaining or retaining business for or with, or directing business to, any foreign official, foreign political party, party official or candidate for foreign political office; (ii) to a foreign official, foreign political party or party official or any candidate for foreign political office; and (iii) with the intent to induce the recipient to misuse his or her official position to direct business wrongfully to any such member or to any other Person, in violation of any Anti-Corruption Law. No part of the proceeds of any Credit Extension or other transaction contemplated by this Agreement or any other Credit Document will violate Anti-Corruption Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent applicable, each Credit Party, each Subsidiary and each other Regulated Entity is in compliance with Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001) (as amended from time to time, the "<u>*Patriot Act*</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No Credit Party, Subsidiary or other Regulated Entity is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any Margin Stock. No part of the proceeds of any Credit Extension made to any Credit Party will be used:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to purchase or carry any such Margin Stock, or to extend credit to others for the purpose of purchasing or carrying any such Margin Stock or for any purpose that violates, or is inconsistent with, the provisions of Regulation T, Regulation U or Regulation X of the Federal Reserve Board, as in effect from time to time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to finance or refinance any: (A) commercial paper issued by any Credit Party, Subsidiary or other Regulated Entity; or (B) any other Indebtedness, except for Indebtedness that a Credit Party incurred for general corporate or working capital purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No Credit Party, Subsidiary or other Regulated Entity is an Affected Financial Institution.

Section 6.16 <u>Employee Matters</u>. No Credit Party, Subsidiary or other Regulated Entity is engaged in any unfair labor practice that could reasonably be expected to have a Material Adverse Effect. There is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no unfair labor practice complaint pending against any Credit Party, any Subsidiary or any other Regulated Entity, or to the knowledge of any Authorized Officer of any Credit Party, threatened in writing against any of them before the National Labor Relations Board, and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement that is so pending against any Credit Party, any Subsidiary or any other Regulated Entity or, to the knowledge of any Authorized Officer of any Credit Party, threatened in writing against any of them,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no strike or work stoppage in existence or, to the knowledge of any Authorized Officer of any Credit Party, threatened in writing that involves any Credit Party, any Subsidiary or any other Regulated Entity, and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to the knowledge of any Authorized Officer of any Credit Party, no union representation question existing with respect to the employees of any Credit Party, any Subsidiary or any other Regulated Entity and, to the knowledge of any Authorized Officer of any Credit Party, no union organization activity that is taking place,

except (with respect to any matter specified in <u>clause (a)</u> through <u>(c)</u> above, either individually or in the aggregate when taken together) such as could *not* reasonably be expected to have a Material Adverse Effect.

Section 6.17 <u>Pension Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as could not reasonably be expected to have a Material Adverse Effect, each Credit Party, each Subsidiary and each other Regulated Entity is in compliance with all applicable provisions and requirements of ERISA and the Internal Revenue Code and the regulations and published interpretations thereunder with respect to its Pension Plan, and have performed all their obligations under each Pension Plan in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Pension Plan that is intended to qualify under Section 401(a) of the Internal Revenue Code has received a favorable determination letter or is the subject of a favorable opinion letter from the Internal Revenue Service indicating that such Pension Plan is so qualified and, to the knowledge of any Authorized Officer of any Credit Party, nothing has occurred subsequent to the issuance of such determination letter that would cause such Pension Plan to lose its qualified status, except where such event could *not* reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as could *not* reasonably be expected to have a Material Adverse Effect, no liability to the PBGC (other than required premium payments), the Internal Revenue Service, any Pension Plan (other than for routine claims and required funding obligations in the ordinary course) or any trust established under Title IV of ERISA has been incurred by any Credit Party, any Subsidiary, any other Regulated Entity, or any of the ERISA Affiliates of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as would *not* reasonably be expected to result in liability to the Credit Parties, Subsidiaries and other Regulated Entities in *excess* of the Threshold Amount, no ERISA Event has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except to the extent required under Section 4980B of the Internal Revenue Code and Section 601 *et seq*. of ERISA or similar state laws, and except as could *not* reasonably be expected to have a Material Adverse Effect, no Pension Plan provides health or welfare benefits (through the purchase of insurance or otherwise) for any retired or former employee of any Credit Party, any Subsidiary or any other Regulated Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) As of the Effective Date, no Credit Party, or any Subsidiary or any other Regulated Entity, is a Benefit Plan.

Section 6.18 <u>Solvency</u>. The Borrower individually is, and the Credit Parties, Subsidiaries and other Regulated Entities taken as a whole are, and, upon the incurrence of any Credit Extension on any date on which this representation and warranty is made (including, without limitation, the Effective Date), each will be, Solvent.

Section 6.19 <u>Compliance with Laws</u>. Each Credit Party, each Subsidiary and each other Regulated Entity is in compliance with: (a) the Patriot Act and OFAC rules and regulations, as provided in <u>Section</u> <u>6.15</u>; and (b) except such non-compliance with such other Applicable Laws that, individually

------

or in the aggregate when taken together, could *not* reasonably be expected to result in a Material Adverse Effect, all other Applicable Laws. Each Credit Party, each Subsidiary and each other Regulated Entity possesses all certificates, authorities or permits issued by appropriate Governmental Authorities necessary to conduct the business now operated by them and the failure of which to have could reasonably be expected to have a Material Adverse Effect, and have *not* received any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit the failure of which to have or retain could reasonably be expected to have a Material Adverse Effect.

Section 6.20 <u>Disclosure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No representation or warranty of any Credit Party or any Subsidiary contained in any Credit Document to which it is a party, or in any other documents, certificates or written statements furnished to the Lenders by, or on behalf of, any Credit Party or any Subsidiary for use in connection with the transactions contemplated hereby (other than projections and pro forma financial information contained in such materials), contains any untrue statement of a material fact or omits to state a material fact (known to any Authorized Officer of a Credit Party or Subsidiary, in the case of any document not furnished by any of them) necessary in order to make the statements contained herein or therein not misleading in any material manner in light of the circumstances in which the same were made. Any projections and pro forma financial information contained in such materials are based upon good faith estimates and assumptions believed by the Credit Parties to be reasonable at the time made, it being recognized by the Administrative Agent and the Lenders that such projections as to future events are not to be viewed as facts and that actual results during the period or periods covered by any such projections may differ from the projected results and that such differences may be material. There are no facts known to any Credit Party (other than matters of a general economic nature) that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect and that have *not* been disclosed herein or in such other documents, certificates and statements furnished to the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the Effective Date or as of such later date on which any Beneficial Ownership Certification was delivered to the Administrative Agent or a Lender, the information included in each Beneficial Ownership Certification is true and correct in all respects.

Section 6.21 <u>Insurance</u>. The properties of the Credit Parties and Subsidiaries are insured with financially sound and licensed insurance companies, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the applicable Credit Party or Subsidiary operates. The insurance coverage of the Credit Parties and Subsidiaries as in effect on the Effective Date is outlined as to carrier, policy number, expiration date, type, amount and deductibles on <u>Schedule 6.21</u>.

Section 6.22 <u>Security Agreement</u>. The Security Agreement is effective to create in favor of the Collateral Agent, for the ratable benefit of the holders of the Obligations, a legal, valid and enforceable security interest in the Collateral identified therein, except to the extent the enforceability thereof may be limited by applicable Debtor Relief Laws affecting creditors' rights generally and by equitable principles of law (regardless of whether enforcement is sought in equity or at law), and the Security Agreement shall create a fully perfected Lien on, and security interest in, all right, title and interest of the obligors thereunder in such Collateral, in each case prior and superior in right to any other Lien (other than Permitted Liens):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to any such Collateral that is a "security" (as such term is defined in the UCC) and is evidenced by a certificate, when such Collateral is delivered to the Collateral Agent with duly executed stock powers with respect thereto;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any such Collateral that is a "security" (as such term is defined in the UCC) but is *not* evidenced by a certificate, when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the pledgor or when "control" (as such term is defined in the UCC) is established by the Collateral Agent over such interests in accordance with the provision of Section 8–106 of the UCC, or any successor provision; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to any such Collateral that is *not* a "security" (as such term is defined in the UCC), when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the pledgor (to the extent such security interest can be perfected by filing under the UCC).

Section 6.23 <u>Mortgages</u>. Each of the Mortgages is effective to create in favor of the Collateral Agent, for the ratable benefit of the holders of the Obligations, a legal, valid and enforceable security interest in the Real Estate Assets identified therein in conformity with Applicable Laws, except to the extent the enforceability thereof may be limited by applicable Debtor Relief Laws affecting creditors' rights generally and by equitable principles of law (regardless of whether enforcement is sought in equity or at law), and, when the Mortgages and UCC financing statements in appropriate form are duly recorded at the locations identified in the Mortgages, and recording or similar taxes, if any, are paid, the Mortgages shall constitute a legal, valid and enforceable Lien on, and security interest in, all right, title and interest of the grantors thereunder in such Real Estate Assets, in each case prior and superior in right to any other Lien (other than Permitted Liens).

Section 6.24 <u>No Casualty</u>. Neither the businesses nor the Properties of any Credit Party, any Subsidiary, or any other Regulated Entity are affected by any fire, explosion, accident, drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty (whether or not covered by insurance) that, either individually or in the aggregate when taken together, could reasonably be expected to have a Material Adverse Effect.

**Article 7** 

**<u>AFFIRMATIVE COVENANTS</u>** 

Each Credit Party covenants and agrees that, until the Obligations shall have been Paid in Full, such Credit Party shall perform, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to perform, all of the covenants set forth in this <u>Article 7</u>.

Section 7.1 <u>Financial Statements and Other Reports</u>. The Borrower will deliver, or will cause to be delivered, to the Administrative Agent (for prompt further distribution by the Administrative Agent to each Lender):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Quarterly Financial Statements</u>. By *no later than* the date that is forty-five (45) consecutive calendar days after the end of each Fiscal Quarter (including, for purposes of clarity, the last Fiscal Quarter of each Fiscal Year), commencing with the Fiscal Quarter ended March 31, 2026, (i) the unaudited consolidated and consolidating balance sheet of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) as of the end of such Fiscal Quarter together with the related consolidated and consolidating statements of income or operations and cash flows of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) for such Fiscal Quarter, and for the period from the beginning of the then current Fiscal Year through the end of such Fiscal Quarter, and (ii) *solely* to the extent that the financial results and operations of any Qualifying Reciprocal Entities are *not* included or otherwise

------

accounted for on a non-controlling interest basis in any such consolidated and/or consolidating financial statements, the unaudited combined and combining balance sheet of such Qualifying Reciprocal Entities as of the end of such Fiscal Quarter together with the related combined and combining statements of income or operations and cash flows of such Qualifying Reciprocal Entities for such Fiscal Quarter, and for the period from the beginning of the then current Fiscal Year through the end of such Fiscal Quarter, in each case of the foregoing <u>clauses (a)(i)</u> and <u>(a)(ii)</u>, setting forth, in each case in comparative form, the corresponding figures for the corresponding periods of the previous Fiscal Year, all in reasonable detail and consistent, in all material respects, with the manner of presentation as of the Effective Date, together with a Financial Officer Certification with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Financial Statements</u>. By *no later than* the date that is one hundred twenty (120) consecutive calendar days after the end of each Fiscal Year, commencing with the Fiscal Year ended December 31, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) the audited consolidated and consolidating balance sheet of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) as of the end of such Fiscal Year together with the related audited consolidated and consolidating statements of income or operations and cash flows of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) for such Fiscal Year, and (B) *solely* to the extent that the financial results and operations of any Qualifying Reciprocal Entities are *not* included or otherwise accounted for on a non-controlling interest basis in any such consolidated and/or consolidating financial statements, the unaudited combined and combining balance sheet of such Qualifying Reciprocal Entities as of the end of such Fiscal Year together with the related unaudited combined and combining statements of income or operations and cash flows of such Qualifying Reciprocal Entities for such Fiscal Year, in each case of the foregoing <u>clauses (b)(i)(A)</u> and <u>(b)(i)(B)</u>, setting forth, in each case in comparative form, the corresponding figures for the previous Fiscal Year, all in reasonable detail and consistent, in all material respects, with the manner of presentation as of the Effective Date, together with a Financial Officer Certification with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to such audited consolidated financial statements of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), a report thereon of PricewaterhouseCoopers LLP or other independent certified public accountants selected by the Borrower and reasonably acceptable to the Administrative Agent (it being understood and agreed that any of the other "Big Four" accounting firms, Grant Thornton, Alvarez & Marsal, RSM US LLP and BDO USA LLP are each acceptable to the Administrative Agent), which report shall be unqualified as to going concern and scope of audit (except to the extent any qualification results solely from a current maturity of any Indebtedness under this Agreement) and shall state that such consolidated financial statements fairly present, in all material respects, the consolidated financial position of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) as of the dates indicated, and the results of their operations and cash flows for the periods indicated, all in conformity with GAAP applied on a basis consistent with prior years (except as otherwise disclosed in such financial statements), and <u>further</u>, that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Compliance Certificate; Summaries / Schedules</u>. Together with each delivery of the financial statements pursuant to <u>clauses (a)</u> or <u>(b)</u> above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a duly completed Compliance Certificate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) summaries/schedules prepared by management of the Borrower, accompanied by a Financial Officer Certification with respect thereto, setting forth:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) consolidating and (if applicable) combining detail in respect of such financial statements in form and scope acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) principal and interest payments made by the Credit Parties and Subsidiaries (other than any Regulated Entities) with respect to intercompany Indebtedness owing by any Credit Party or Subsidiary (other than any Regulated Entity) to any Regulated Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) intercompany Indebtedness owing by any Credit Party or Subsidiary (other than any Regulated Entity) to any Regulated Entity that is eliminated upon consolidation in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Annual Budget</u>. Within sixty (60) consecutive calendar days following the end of each Fiscal Year, forecasts prepared by management of the Borrower, in form reasonably satisfactory to the Administrative Agent and the Required Lenders, of (i) the consolidated and consolidating balance sheet of the Credit Parties and Subsidiaries (including Regulated Subsidiaries) together with the related consolidated and consolidating statements of income or operations and cash flows of the Credit Parties and Subsidiaries (including Regulated Subsidiaries), and (ii) *solely* to the extent that the forecasted financial results and operations of any Qualifying Reciprocal Entities are *not* included or otherwise accounted for on a non-controlling interest basis in any such forecasted consolidated and/or consolidating financial statements, the combined and combining balance sheet of such Qualifying Reciprocal Entities together with the related combined and combining statements of income or operations and cash flows for such Qualifying Reciprocal Entities, in each case of the foregoing <u>clauses (d)(i)</u> and <u>(d)(ii)</u>, prepared on a quarterly basis for the immediately following Fiscal Year (including, for purposes of clarity, any such Fiscal Year during which any of the Revolving Commitment Termination Date, the DDTL Commitment Termination Date or any applicable Maturity Date occurs);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Statutory Accounting Principles Statement</u>. Within forty-five (45) consecutive calendar days following the end of each of the first (1<sup>st</sup>) three (3) Fiscal Quarters of each Fiscal Year, commencing with the Fiscal Quarter ended March 31, 2026, and within ninety (90) consecutive calendar days following the end of each Fiscal Year, SAP statements for each Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Information Regarding Credit Parties</u>. Each Credit Party will furnish to the Collateral Agent prior written notice of any change in such Credit Party's: (i) legal name; (ii) corporate structure; (iii) Federal Taxpayer Identification Number; or (iv) jurisdiction of incorporation, formation or organization, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Securities and Exchange Commission Filings</u>. Promptly after the same are filed, copies of all annual, regular, periodic and special reports and registration statements that the Borrower may file, or be required to file, with the SEC under Section 13 or 15(d) of the Exchange Act, <u>provided</u>, <u>that</u>, any documents required to be delivered pursuant to this <u>clause (g</u>) shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower's website, or (ii) on which such documents are posted on the Borrower's behalf on SyndTrak or other relevant website, if any to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent). Notwithstanding anything to the contrary, as to any information contained in materials furnished pursuant to this <u>clause (g</u>), the Borrower shall not be separately required to furnish such information under <u>clauses (a)</u> or <u>(b)</u> above, or pursuant to any other requirement of this Agreement or any other Credit Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Notice of Default and Material Adverse Effect</u>. Promptly (and, in any event, within two (2) Business Days) upon any Authorized Officer of any Credit Party obtaining knowledge:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) of any condition or event that constitutes a Default or an Event of Default, or that notice has been given to any Credit Party, any Subsidiary, or any other Regulated Entity with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that any Person has given any notice to any Credit Party, any Subsidiary or any other Regulated Entity, or taken any other action with respect to any event or condition set forth in <u>Section</u> <u>9.1(b</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) of the occurrence of any Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) of the institution, or any Credit Party's, any Subsidiary's or any other Regulated Entity's receipt of any threat in writing of the institution, of any action, suit, investigation or proceeding against or affecting any Credit Party, any Subsidiary or any other Regulated Entity, including any such investigation or proceeding by any Insurance Regulatory Authority or other Governmental Authority (other than routine periodic inquiries, investigations or reviews), that could reasonably be expected, individually or in the aggregate when taken together, to have a Material Adverse Effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) of the receipt by any Credit Party, any Subsidiary, or any other Regulated Entity from any Insurance Regulatory Authority or other Governmental Authority of any notice of any actual or threatened suspension, limitation or revocation of, failure to renew, imposition of any restraining order, escrow or impoundment of funds in connection with, or the taking of any other materially adverse action in respect of, any license, permit, accreditation or authorization of any Credit Party, any Subsidiary or any other Regulated Entity, where such action could reasonably be expected to have a Materially Adverse Effect;

deliver to the Administrative Agent a certificate of its Authorized Officers specifying the nature and period of existence of such condition, event or change, or specifying the notice given and action taken by any such Person and the nature of such claimed Event of Default, Default, event or condition or change, and what action the Credit Parties, Subsidiaries and other Regulated Entities have taken, are and/or and propose to take with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>ERISA</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Promptly upon becoming aware of the occurrence of, or forthcoming occurrence of, any ERISA Event, a written notice specifying the nature thereof, what action(s) any Credit Party, any Subsidiary, any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, has taken, is taking and/or proposes to take with respect thereto and, when known, any action taken or threatened by the Internal Revenue Service, the Department of Labor or the PBGC with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) promptly upon reasonable request of the Administrative Agent, copies of each Schedule B (*Actuarial Information*) to the annual report (Form 5500 Series) filed by any Credit Party, any Subsidiary or any other Regulated Entity, or any of the respective ERISA Affiliates of any of the foregoing, with respect to each Pension Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) promptly after their receipt, copies of all notices received by any Credit Party, any Subsidiary or any other Regulated Entity, or any of the respective ERISA

------

Affiliates of any of the foregoing, from a Multiemployer Plan sponsor concerning an ERISA Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Securities and Exchange Commission Investigations</u>. Promptly and, in any event, within five (5) Business Days after receipt thereof by any Credit Party, any Subsidiary or any other Regulated Entity thereof, copies of each notice or other correspondence received from the Securities and Exchange Commission (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or other inquiry by such agency regarding financial or other operational results of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Asset Sales, Involuntary Dispositions and Debt Transactions</u>. Concurrently with delivery of each Compliance Certificate, notice of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the occurrence and amount of Net Cash Proceeds of any Asset Sale or Involuntary Disposition (in each case, regardless of whether the Net Cash Proceeds therefrom fall below the threshold amounts set forth in <u>Section</u> <u>2.11(c)(ii</u>) and/or have already been, or are anticipated to be, re-invested pursuant to the reinvestment provisions thereof) in *excess* of the *product of* (A) fifty percent (50.0%), *multiplied by* (B) the Threshold Amount; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the occurrence of any Debt Transactions and the amount of Net Cash Proceeds therefrom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Changes in Accounting or Financial Reporting Practices</u>. Promptly and, in any event, within ten (10) Business Days after implementation thereof, notice of any material change in accounting policies or financial reporting practices of any Credit Party, any Subsidiary or any other Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Insurance Filings</u>. Within fifteen (15) Business Days after the required filing date, copies of any annual statement or quarterly statement required to be filed with any Insurance Regulatory Authority by any Credit Party, any Subsidiary or any other Regulated Entity, in each case, in the form filed with such Insurance Regulatory Authority in conformity with the requirements thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Other Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Promptly upon their becoming available, copies of all financial statements, reports, notices and proxy statements (other than minutes of the board of directors or managers (or equivalent governing body) thereof) sent or made available generally by the Borrower to its respective security holders acting in such capacity, or by any Subsidiary or any other Regulated Entity to its respective security holders, if any, other than the Borrower, another Credit Party, another Subsidiary or another Regulated Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such other information and data with respect to the Credit Parties, Subsidiaries and other Regulated Entities as from time to time may be reasonably requested by the Administrative Agent (or by any Lender through the Administrative Agent); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) prompt written notice of any change to the information set forth in any Beneficial Ownership Certification that would result in a change to the list of beneficial owners set forth therein.

Each notice pursuant to <u>clauses (i)</u> <u>and (j</u>) above shall be accompanied by a statement of an Authorized Officer of the Borrower: (x) setting forth details of the occurrence referred to therein; and (y) stating what action(s) the Credit Parties, Subsidiaries and other Regulated Entities have taken and/or

------

propose to take with respect thereto. Each notice pursuant to <u>clause (h</u>) above shall describe with particularity any and all provisions of this Agreement and any other Credit Document that have been breached.

Section 7.2 <u>Existence</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, at all times preserve and keep in full force and effect (a) its existence, and (b) except to the extent that failure to do so would *not* reasonably be expected to result in a Material Adverse Effect, all rights and franchises, licenses and permits material to its business, except to the extent permitted by <u>Section</u> <u>8.10</u> or not constituting an Asset Sale hereunder.

Section 7.3 <u>Payment of Taxes and Claims</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, pay (a) all federal, state and other material taxes imposed upon it or any of its respective Properties or in respect of any of its income, businesses or franchises, before any penalty or fine accrues thereon, and (b) all claims (including claims for labor, services, materials and supplies) for sums that have become due and payable and that by law have or may become a Lien upon any of its Properties, prior to the time when any penalty or fine shall be incurred with respect thereto; <u>provided, that</u>, no such tax or claim need be paid if it is being contested in good faith by appropriate proceedings promptly instituted and diligently conducted, so long as (i) adequate reserve or other appropriate provision, as shall be required in conformity with GAAP shall have been made therefor, (ii) in the case of a tax or claim which has or may become a Lien against any of the Collateral, such contest proceedings conclusively operate to stay the sale of any portion of the Collateral to satisfy such tax or claim, and (iii) the failure to make payment pending such contest could *not* reasonably be expected to result in a Material Adverse Effect. No Credit Party will, nor will it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, file, or consent to the filing of, any consolidated or combined income tax return with any Person other than the Credit Parties, Subsidiaries and other Regulated Entities.

Section 7.4 <u>Maintenance of Properties</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, maintain, or cause to be maintained, in good repair, working order and condition, ordinary wear and tear excepted, all material properties used or useful in the businesses of the Credit Parties, Subsidiaries and other Regulated Entities, and from time to time will make, or cause to be made, all appropriate repairs, renewals and replacements thereof, except where failure to do so would *not* materially adversely affect the operations of the businesses of the Credit Parties, Subsidiaries and other Regulated Entities, taken as a whole.

Section 7.5 <u>Insurance</u>. The Credit Parties will maintain, or cause to be maintained, with financially sound and licensed insurers, property insurance, such public liability insurance, third party property damage insurance with respect to liabilities, losses or damage in respect of the Properties and businesses of the Credit Parties as may customarily be carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses, in each case in such amounts, with such deductibles, covering such risks and otherwise on such terms and conditions as shall be customary for such Persons. Without limiting the generality of the foregoing, each Credit Party will maintain, or cause to be maintained: (a) flood insurance with respect to each Flood Hazard Property, if any, that is located in a community that participates in the National Flood Insurance Program, in each case, in compliance with any applicable regulations of the Federal Reserve Board; and (b) replacement value casualty insurance on the Collateral under such policies of insurance, with such insurance companies, in such amounts, with such deductibles, and covering such risks as are at all times carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses. Each

------

such policy of insurance shall: (i) name the Collateral Agent, on behalf of the holders of the Obligations, as an additional insured thereunder as its interests may appear; and (ii) in the case of each property insurance policy, contain a loss payable clause or endorsement, reasonably satisfactory in form and substance to the Collateral Agent, that names the Collateral Agent, on behalf of the holders of the Obligations, as the loss payee thereunder and provides for *at least* thirty (30) days' prior written notice (or such shorter prior written notice as may be agreed by the Collateral Agent in its reasonable discretion) to the Collateral Agent of any modification or cancellation of such policy.

Section 7.6 <u>Inspections</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, permit representatives and independent contractors of the Administrative Agent (which may include representatives of Lenders) to visit and inspect any of its properties, to conduct field audits, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; <u>provided, that</u>, (i) when an Event of Default exists the Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and without advance notice, and (ii) unless an Event of Default has occurred and is continuing, the Borrower shall not be responsible for the expense of any such inspections other than one (1) inspection per Fiscal Year by the Administrative Agent. Notwithstanding anything to the contrary in this <u>Section</u> <u>7.6</u>, neither any Credit Party nor any Subsidiary (including any Regulated Subsidiary) or any other Regulated Entity will be required to disclose, or to permit the inspection or discussion of, any document, information or other matter (x) in respect of which disclosure to the Administrative Agent or any Lender (or their representatives) is prohibited by Applicable Law, fiduciary duty or any binding agreement, or (y) that is subject to attorney client or similar privilege or constitutes attorney work product.

Section 7.7 <u>Lenders Meetings</u>. The Borrower will, upon the request of the Administrative Agent or the Required Lenders, participate in a meeting of the Administrative Agent and the Lenders once during each Fiscal Year to be held at the Borrower's corporate offices (or at such other physical location, or in lieu thereof being held "virtually" by telephone or video conference, in each case, as may be agreed to by the Borrower and the Administrative Agent) at such time as may be agreed to by the Borrower and the Administrative Agent.

Section 7.8 <u>Compliance with Laws and Material Contracts</u>. Each Credit Party will comply, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and all other Persons (including any other Regulated Entities), if any, on or occupying any Facilities to comply, with (a) the Patriot Act and OFAC rules and regulations, and, (b) except where the failure to do so would *not* reasonably be expected to have a Material Adverse Effect, (i) all other Applicable Laws, and (ii) all Material Contracts entered into by any Credit Party, any Subsidiary (including any Regulated Subsidiary) or any other Regulated Entity.

Section 7.9 <u>Use of Proceeds</u>. The Credit Parties shall use the proceeds of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans; Delayed Draw Term Loan</u>. All Revolving Loans and all advances under the Delayed Draw Term Loan *solely* (i) to finance permitted Investments in Regulated Entities, (ii) to finance Capital Expenditures, and (iii) for working capital and other general corporate purposes (and, in each case of the foregoing, to pay transaction fees, costs and expenses in connection therewith);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term Loan A</u>. The Term Loan A *solely* on the Effective Date to (i) refinance, in full, all existing Indebtedness of the Credit Parties, Subsidiaries and other Regulated Entities that is not permitted to remain outstanding after the Effective Date pursuant to this Agreement (including all Indebtedness outstanding under the Existing Credit Agreement), and (ii) pay transaction fees, costs and expenses in connection with the closing of this Agreement and the other Credit Documents on the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Incremental Term Loans</u>. Each Incremental Term Loan *solely* for the purpose(s) set forth in the applicable Incremental Facility Agreement establishing such Incremental Term Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Letters of Credit</u>. All Letters of Credit *solely* for general corporate purposes;

in each case of the foregoing <u>clauses (a)</u> through (<u>d</u>), to the extent *not* in violation of any Applicable Laws or the terms of the Credit Documents.

Section 7.10 <u>Environmental Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Environmental Disclosure</u>. Each Credit Party will deliver to the Administrative Agent and the Lenders, with reasonable promptness, such documents and/or information as from time to time may be reasonably requested by the Administrative Agent or any Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Hazardous Materials Activities, Etc</u>. Each Credit Party shall promptly take, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to promptly take, any and all actions necessary to (i) cure any violation of applicable Environmental Laws by such Credit Party, Subsidiary or other Regulated Entity that would reasonably be expected to have, individually or in the aggregate when taken together, a Material Adverse Effect, and (ii) respond to any Environmental Claim against any such Credit Party, Subsidiary or other Regulated Entity and discharge any obligations it may have to any Person thereunder where failure to do so would reasonably be expected to result, individually or in the aggregate when taken together, in a Material Adverse Effect.

Section 7.11 <u>Additional Real Estate Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that any Credit Party owns or acquires a Real Estate Asset, then such Credit Party, by no *later than* ninety (90) consecutive calendar days (or by such later date as may be agreed in writing by the Collateral Agent in its sole discretion) after acquiring such Real Estate Asset, shall take all such actions and execute and deliver, or cause to be executed and delivered, all such Mortgages, documents, instruments, agreements, opinions and certificates similar to those described in <u>clause (b</u>) immediately below that the Collateral Agent shall reasonably request to create in favor of the Collateral Agent, for the benefit of the holders of the Obligations, a valid and, subject to any filing and/or recording referred to herein, enforceable Lien on, and security interest in such Real Estate Asset. The Administrative Agent may, in its reasonable judgment, grant extensions of time for compliance or exceptions with respect to the provisions of this <u>Section</u> <u>7.11</u> by any Credit Party. In addition to the foregoing, the applicable Credit Party shall, at the request of the Required Lenders, deliver, from time to time, to the Administrative Agent such appraisals as are required by Applicable Law of Real Estate Assets with respect to which the Collateral Agent has been granted a Lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In order to create in favor of the Collateral Agent, for the benefit of the holders of the Obligations, a valid and, subject to any filing and/or recording referred to herein, enforceable Lien on, and security interest in, any Real Estate Asset that is prior and superior in right to any other Lien (other than

------

Permitted Liens), the Agents (with copies sufficient for each Lender) shall have received from the applicable Credit Party with respect to such Real Estate Asset:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fully executed and notarized Mortgages, in proper form for recording in all appropriate places in all applicable jurisdictions, encumbering such Real Estate Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an opinion of counsel (which counsel shall be reasonably satisfactory to the Collateral Agent) in each state in which such Real Estate Asset is located with respect to the enforceability of the form(s) of Mortgages to be recorded in such state and such other matters as the Collateral Agent may reasonably request, in each case in form and substance reasonably satisfactory to the Collateral Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) ALTA mortgagee title insurance policies or unconditional commitments therefor issued by one or more title companies reasonably satisfactory to the Collateral Agent (each, a "<u>*Title Policy*</u>") with respect to such Real Estate Asset, in amounts *not less than* the fair market value of such Real Estate Asset, together with a title report issued by a title company with respect thereto and copies of all recorded documents listed as exceptions to title or otherwise referred to therein, each in form and substance reasonably satisfactory to the Collateral Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) evidence reasonably satisfactory to the Collateral Agent that the applicable Credit Party has paid to the title company or to the appropriate Governmental Authorities all expenses and premiums of the title company and all other sums required in connection with the issuance of each Title Policy and all recording and stamp taxes (including mortgage recording and intangible taxes) payable in connection with recording the Mortgage for such Real Estate Asset in the appropriate real estate records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a recently issued flood zone determination certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) evidence of flood insurance with respect to each Flood Hazard Property that is located in a community that participates in the National Flood Insurance Program, in each case in compliance with any applicable regulations of the Federal Reserve Board, in form and substance reasonably satisfactory to the Collateral Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if an exception to the Title Policy with respect to any Real Estate Asset subject to a Mortgage would arise without such ALTA surveys, ALTA surveys of such Real Estate Asset; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) reports and other reasonable information, in form, scope and substance reasonably satisfactory to the Administrative Agent, regarding environmental matters relating to such Real Estate Asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in the foregoing of this <u>Section</u> <u>7.11</u>, no Mortgage shall be granted with respect to any Real Estate Asset until the Administrative Agent shall have received written confirmation from each Lender of the satisfactory completion by such Lender of flood diligence with respect to such Real Estate Asset.

Section 7.12 <u>Pledge of Personal Property Assets</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Equity Interests</u>. The Borrower and each other Credit Party shall cause:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) one hundred percent (100.0%) of the issued and outstanding Equity Interests of each Domestic Subsidiary (including, without limitation, each Domestic Subsidiary resulting from the division or allocation of any limited liability company that is *not* a Regulated Subsidiary); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) sixty-five percent (65.0%) of the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956–2(c)(2)), and one hundred percent (100.0%) of the issued and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956–2(c)(2)), of each Foreign Subsidiary that is directly owned by any Credit Party;

to be subject, at all times, to a first priority lien (subject to any Permitted Lien) in favor of the Collateral Agent, for the benefit of the Lenders, pursuant to the terms and conditions of the Collateral Documents, together with opinions of counsel and any filings and deliveries or other items reasonably requested by the Collateral Agent necessary in connection therewith to perfect the security interests therein, all in form and substance reasonably satisfactory to the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Personal Property</u>. The Borrower and each other Credit Party shall (i) cause all of its owned and leased personal property (other than Excluded Property) to be subject, at all times, to first priority (subject to any Permitted Lien), perfected Liens in favor of the Collateral Agent, for the benefit of the holders of the Obligations, to secure the Obligations pursuant to the terms and conditions of the Collateral Documents or, with respect to any such property acquired subsequent to the Effective Date, such other additional security documents as the Collateral Agent shall reasonably request, subject in any case to Permitted Liens, and (ii) deliver such other documentation as the Collateral Agent may reasonably request in connection with the foregoing, including, without limitation, appropriate UCC–1 financing statements, certified resolutions and other organizational and authorizing documents of such Person, opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to above and the perfection of the Collateral Agent's Liens thereunder) and other items reasonably requested by the Collateral Agent necessary in connection therewith to perfect the security interests therein, all in form, content and scope reasonably satisfactory to the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Landlord Consents</u>. Upon the reasonable request of the Collateral Agent, the Credit Parties shall use commercially reasonable efforts to obtain landlord consents with respect to leased locations where corporate records or material amounts of personal property of any of the Credit Parties are maintained, which landlord consents shall be in form and substance reasonably acceptable to the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Controlled Account Agreements</u>. The Borrower and each other Credit Party shall, unless otherwise consented to by the Collateral Agent in writing, cause (in each case, as promptly as practicable and, in any event, by *no later than* (A) the date that is ninety (90) consecutive calendar days after the Effective Date (or by such later date as the Collateral Agent may agree in its sole discretion), in the case of any such accounts in existence on the Effective Date, and (B) the date that is ninety (90) consecutive calendar days after the date of establishment or acquisition of such account (or by such later date as the Collateral Agent may agree in its sole discretion), in the case of any such account(s) established or acquired after the Effective Date) each deposit, disbursement, lockbox, securities and/or commodities account of any Credit Party (including, without limitation, any such account(s) that are or will be held at Regions), other than any Excluded Accounts, to be subject to a Controlled Account Agreement; <u>provided</u>, <u>that</u>, no Controlled Account Agreement shall be required, in any event, with respect to any such account

------

that has a balance (or which holds Property with a fair market value) of *less than* Fifty Thousand Dollars ($50,000), in any individual instance, or One-Hundred Fifty Thousand Dollars ($150,000), when taken together with the account balances (or aggregate amount of the fair market value of Property) of all other deposit, disbursement, lockbox, securities and/or commodities accounts of any Credit Party (other than any Excluded Accounts) that are not subject to a Controlled Account Agreement.

Section 7.13 <u>Books and Records</u>. Each Credit Party will, and will cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, keep proper books of record and account in which full, true and correct, in all material respects, entries shall be made of all dealings and transactions in relation to their respective businesses and activities to the extent necessary to prepare the consolidated financial statements of the Credit Parties and Subsidiaries both *inclusive* and *exclusive* of all Regulated Entities, in each case otherwise in conformity with GAAP.

Section 7.14 <u>Additional Subsidiaries</u>. Within forty-five (45) calendar days after the date of acquisition or formation of any Subsidiary (including, without limitation, upon the inception of any Subsidiary resulting from the division or allocation of a limited liability company or upon the reinstatement or reincorporation of a formerly dissolved Subsidiary) or of re-designation of any Immaterial Subsidiary as a Material Subsidiary in accordance with the definition of "*Immaterial Subsidiary*" in <u>Section</u> <u>1.1</u> (or, in any such case, by such later date as the Administrative Agent may agree in its sole discretion), the Credit Parties shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) notify the Administrative Agent thereof in writing, together with the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) jurisdiction of incorporation or formation (as the case may be);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) number of shares of each class of its Equity Interests outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) number and percentage of outstanding shares of each class owned (directly or indirectly) by any Credit Party, any Subsidiary or any other Regulated Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) number and effect, if exercised, of all outstanding options, warrants, rights of conversion or purchase and all other similar rights with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if such Subsidiary is *not* an Excluded Subsidiary, cause such Person to (i) become a Guarantor by executing and delivering to the Administrative Agent a Guarantor Joinder Agreement or such other documents as the Administrative Agent shall deem appropriate for such purpose, and (ii) deliver to the Administrative Agent documents of the types referred to in <u>Section</u> <u>5.1(b)</u> and Section <u>5.1(e</u>) and favorable opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to in the immediately foregoing <u>clause (b)(i</u>)), all in form, content and scope satisfactory to the Administrative Agent.

Section 7.15 <u>Maintenance of Reinsurance</u>. The Credit Parties, Subsidiaries and other Regulated Entities shall maintain a program of reinsurance *at least* equal to that: (a) required by the applicable Insurance Regulatory Authority of the applicable state of domicile for each such Person; and (b) determined by Demotech, Inc. to be necessary for a company to obtain an "A" rating.

**Article 8** 

**<u>NEGATIVE COVENANTS</u>** 

------

Each Credit Party covenants and agrees that, until the Obligations shall have been Paid in Full, such Credit Party shall perform, and shall cause each of its Subsidiaries (including any Regulated Subsidiaries) and each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to perform, each of the covenants set forth in this <u>Article 8</u>.

Section 8.1 <u>Indebtedness</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries nor any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, create, incur, assume or guaranty, or otherwise become or remain directly or indirectly liable with respect to any Indebtedness, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) unsecured Indebtedness of any Credit Party owing to any other Credit Party; (ii) unsecured Indebtedness of any Subsidiary or other Regulated Entity that (in any such case) is *not* a Credit Party owing to any other Subsidiary or other Regulated Entity that (in any such case) is *not* a Credit Party; and (iii) unsecured Indebtedness of any Credit Party owing to any Subsidiary or other Regulated Entity that (in any such case) is *not* a Credit Party, <u>provided, that</u>, (A) the aggregate outstanding amount of Indebtedness incurred in reliance on this <u>clause (b)(iii</u>) shall *not exceed* Five-Hundred Thousand Dollars ($500,000) at any time, and (B) any such Indebtedness incurred or outstanding in reliance on this <u>clause (b)(iii</u>) shall be subordinated in right of payment (by operation of the terms of an applicable subordination agreement entered into with the Administrative Agent) to the prior Payment in Full of the Obligations on terms reasonably acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Guarantees with respect to Indebtedness otherwise permitted under this <u>Section</u> <u>8.1</u>; <u>provided</u>, <u>that</u>, any Guarantees granted or in effect in reliance on this <u>clause (c)</u> shall be subordinated to the Obligations if, and to the extent that, the Indebtedness guaranteed thereby is subordinated to the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Indebtedness existing on the Effective Date and described in <u>Schedule 8.1</u>, together with any Permitted Refinancing thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Indebtedness with respect to (i) Capital Leases (<u>provided</u>, <u>that</u>, any such Indebtedness shall be secured only by the asset subject to such Capital Lease), and (ii) purchase money Indebtedness (<u>provided, that</u>, any such Indebtedness shall be secured only by the asset acquired in connection with the incurrence of such Indebtedness); <u>provided</u>, <u>that</u>, the *sum of* the aggregate principal amount of any Indebtedness under this <u>clause (e</u>) at any time outstanding shall *not exceed* Five-Hundred Thousand Dollars ($500,000);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Indebtedness in respect of any Swap Agreement that is entered into in the ordinary course of business to hedge, limit or mitigate risks to which any Credit Party, any Subsidiary or any other Regulated Entity is exposed in the conduct of its business or the management of its liabilities (it being acknowledged by each Credit Party that a Swap Agreement entered into for speculative purposes, or otherwise of a speculative nature, is *not* a Swap Agreement entered into in the ordinary course of business to hedge, limit or mitigate risks);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to the extent constituting Indebtedness, all obligations in connection with each Permitted Acquisition (including, without limitation, Earn Out Obligations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Indebtedness representing deferred compensation to officers, directors, employees of any Credit Party, any Subsidiary or any other Regulated Entity;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Guarantees (i) by any Credit Party of Indebtedness of any Subsidiary (other than any Regulated Subsidiary) that is <u>not</u> a Credit Party, and (ii) by any Subsidiary (other than any Regulated Subsidiary) of Indebtedness of any Credit Party or of any other Subsidiary (other than any Regulated Subsidiary) that is <u>not</u> a Credit Party; <u>provided</u>, <u>that</u>, (A) Guarantees by any Credit Party of Indebtedness of any Subsidiary (other than any Regulated Subsidiary) that is <u>not</u> a Credit Party shall be subject to compliance with <u>Section</u> <u>8.6</u>, and (B) any Guarantees granted or in effect in reliance on this <u>clause (i</u>) shall be subordinated to the Obligations if, and to the extent that, the Indebtedness guaranteed thereby is subordinated to the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Indebtedness owed to any Person (including obligations in respect of letters of credit for the benefit of such Person) providing workers' compensation, health, disability or other employee benefits or property, casualty, liability insurance, self-insurance, pursuant to reimbursement or indemnification obligations to such Person or to finance insurance premiums, in each case incurred in the ordinary course of business and consistent with past practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Indebtedness in respect of or guarantee of performance bonds, bid bonds, appeal bonds, surety bonds, performance and completion guarantees, workers' compensation claims, letters of credit, bank guarantees and banker's acceptances, warehouse receipts or similar instruments and similar obligations (other than in respect of other Indebtedness for borrowed money), in each case provided in the ordinary course of business and consistent with past practice; <u>provided, that</u>, any Indebtedness arising from the provision by any Credit Party of any of the foregoing for the benefit of any Person that is *not* a Credit Party is subject to compliance with <u>Section</u> <u>8.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) cash management obligations and other Indebtedness in respect of netting services, overdraft protection and similar arrangements, in each case, in connection with cash management and deposit accounts maintained in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) to the extent constituting Indebtedness, Guarantees in the ordinary course of business of the obligations of suppliers, customers, franchisees and licensees of the Credit Parties and Subsidiaries (other than any Regulated Entities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) performance guarantees primarily guaranteeing performance of contractual obligations to a third party and <u>not</u> for the purpose of guaranteeing payment of Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) (i) Indebtedness of a Regulated Entity under "surplus notes" owing to one (1) or more other Credit Parties, Subsidiaries or other Regulated Entities, (ii) Indebtedness of a Qualifying Reciprocal Entity under "surplus notes" owing to one (1) or more Persons other than the Credit Parties, Subsidiaries and other Regulated Entities, and (iii) Indebtedness of a Regulated Subsidiary under "surplus notes" owing to one (1) or more Persons other than the Credit Parties, Subsidiaries and other Regulated Entities, <u>provided</u>, <u>that</u>, the aggregate principal amount of Indebtedness permitted in reliance on this <u>clause (o)(iii</u>) shall *not exceed* Fifty Million Dollars ($50,000,000) at any time outstanding; <u>provided</u>, <u>that</u>, in any such case of the foregoing clauses <u>(o)(i) through (o)(iii</u>), (A) such Indebtedness shall be subordinated to the policyholders of the applicable Regulated Entity, (B) payments of principal of, and interest on, such Indebtedness shall only be made upon the prior written consent of the applicable Governmental Authority, and (C) the principal amount of such Indebtedness shall constitute equity in accordance with SAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Indebtedness of any of the Regulated Entities owing to, and in the form of (or incurred pursuant to) loans, funding agreements, and/or guaranteed investment contracts entered into by such Regulated Entity with, a FHLB in connection with the membership of such

------

Regulated Entity in or with such FHLB in the ordinary course of business; <u>provided, that,</u> any such Indebtedness incurred in reliance on this <u>clause (p</u>) is *not* recourse to any of the Credit Parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) other unsecured Indebtedness of the Credit Parties, Subsidiaries and other Regulated Entities in an aggregate amount *not exceeding* One Million Dollars ($1,000,000) at any time outstanding.

Accrual of interest or dividends, the accretion of accreted value, the accretion or amortization of original issue discount and the payment of interest, premium, fees or expenses, in the form of additional Indebtedness, or preferred stock (in each case, so long as such additional Indebtedness or preferred stock is in the same form and on the same terms as the Indebtedness to which such payment relates) shall *not* be deemed to be an incurrence of Indebtedness for purposes of this <u>Section</u> <u>8.1</u>.

Section 8.2 <u>Liens</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, create, incur, assume, or permit to exist any Lien on, or with respect to, any Properties of any kind (including any document or instrument in respect of goods or accounts receivable) of any Credit Party, any Subsidiary or any other Regulated Entity, whether now owned or hereafter acquired, created or licensed or any income, profits or royalties therefrom, or file, or permit the filing of, or otherwise permit to remain in effect, any financing statement or other similar notice of any Lien with respect to any such Property, income, profits or royalties under the UCC of any State or under any similar recording or notice statute or under any Applicable Laws related to intellectual property, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens in favor of the Collateral Agent, for the benefit of the holders of the Obligations, granted pursuant to any Credit Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liens for Taxes *not* yet due, or for Taxes if obligations with respect to such Taxes are being contested in good faith by appropriate proceedings diligently conducted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) statutory Liens of landlords, banks, carriers, warehousemen, mechanics, repairmen, workmen and materialmen, and other Liens imposed by Applicable Law (other than any such Lien imposed pursuant to Section 430(k) of the Internal Revenue Code or Section 303(k) or 4068 of ERISA that would constitute an Event of Default under <u>Section</u> <u>9.1(j</u>)), in each case, incurred in the ordinary course of business: (i) for amounts *not* yet overdue; or (ii) for amounts that are overdue and that are being contested in good faith by appropriate proceedings, so long as such reserves or other appropriate provisions, if any, as shall be required by GAAP shall have been made for any such contested amounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens incurred in the ordinary course of business in connection with workers' compensation, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, trade contracts, performance and return-of-money bonds and other similar obligations (exclusive of obligations for the payment of borrowed money or other Indebtedness), so long as no foreclosure, sale or similar proceedings have been commenced with respect to any portion of the Collateral on account thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) easements, rights-of-way, restrictions, encroachments, and other minor defects or irregularities in title, in each case, that do *not* and will not interfere, in any material respect, with the ordinary conduct of the businesses of any Credit Party, any Subsidiary or any other Regulated Entity, including, without limitation, all encumbrances shown on any policy of title insurance in favor of the Collateral Agent with respect to any Real Estate Asset;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any interest or title of a lessor or sub-lessor under any lease of real estate permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Liens *solely* on any cash earnest money deposits made by any Credit Party or Subsidiary (other than any Regulated Subsidiary) in connection with any letter of intent, or purchase agreement permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) purported Liens evidenced by the filing of precautionary UCC financing statements relating *solely* to operating leases of personal property entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any zoning or similar law or right reserved to, or vested in, any governmental office or agency to control or regulate the use of any real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) licenses of patents, trademarks, and other intellectual property rights granted by any Credit Party or Subsidiary (other than any Regulated Entity) in the ordinary course of business and *not* interfering in any respect with the ordinary conduct of the business of such Credit Party or Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Liens existing as of the Effective Date and described in <u>Schedule 8.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Liens securing purchase money Indebtedness and Capital Leases to the extent permitted pursuant to <u>Section</u> <u>8.1(e); provided, that</u>, any such Lien shall encumber only the asset acquired with the proceeds of such Indebtedness or the assets subject to such Capital Lease, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Liens in favor of the Issuing Bank or the Swingline Lender on cash collateral securing the obligations of a Defaulting Lender to fund risk participations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Liens consisting of judgment or judicial attachment liens relating to judgments which do not constitute an Event of Default hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) licenses (including licenses of Intellectual Property), sublicenses, leases or subleases granted to third parties in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Liens in favor of collecting banks under Section 4–210 of the UCC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Liens (including the right of set-off) in favor of a bank or other depository institution arising as a matter of law encumbering deposits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Liens on insurance policies and the proceeds thereof granted in the ordinary course of business to secure the financing of insurance premiums with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) Liens of bailees in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) utility and similar deposits in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Liens on Property (other than, in any event, Collateral) of the Regulated Entities securing Indebtedness permitted and incurred in reliance on <u>Section</u> <u>8.1(p</u>); and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) other Liens to the extent securing Indebtedness or other monetary obligations in an aggregate amount *not to exceed* Two-Hundred Fifty Thousand Dollars ($250,000) at any time outstanding.

Section 8.3 <u>No Further Negative Pledges</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, enter into any Contractual Obligation (other than this Agreement and the other Credit Documents) that limits the ability of any Credit Party, any Subsidiary or any other Regulated Entity to create, incur, assume or suffer to exist Liens on property of such Person; <u>provided, that, this Section</u> <u>8.3</u> shall *not* prohibit:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any negative pledge incurred or provided in favor of any holder of Indebtedness permitted under <u>Section</u> <u>8.1(e</u>), solely to the extent any such negative pledge relates to the Property financed by or subject to Permitted Liens securing such Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Permitted Lien or any document or instrument governing any Permitted Lien; <u>provided</u>, <u>that</u>, any such restriction contained therein relates only to the Property subject to such Permitted Lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) customary restrictions and conditions contained in any agreement relating to the disposition of any Property permitted under <u>Section</u> <u>8.10</u> pending the consummation of such disposition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) customary provisions restricting assignments, subletting or other transfers contained in leases, licenses, joint venture agreements and similar agreements entered into in the ordinary course of business.

Section 8.4 <u>Restricted Payments</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Subsidiary of the Borrower may make Restricted Payments to any Person that directly owns Equity Interests in such Subsidiary, ratably according to their respective holdings of the type of Equity Interests in respect of which such Restricted Payment is being made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower may declare and make dividend payments or other distributions payable *solely* in common Equity Interests in the Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) other Restricted Payments paid in cash, so long as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default exists or would result therefrom; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately *after* giving effect to any such Restricted Payment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Consolidated Leverage Ratio, determined on a Pro Forma Basis, is *at least* 0.25 to 1.0 (a "quarter turn") *less than* the Consolidated Leverage Ratio required for the most recently ended Trailing Period; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there remains *at least* Ten Million Dollars ($10,000,000) of Liquidity.

Section 8.5 <u>Burdensome Agreements</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, enter into, or permit to exist, any Contractual Obligation that encumbers or restricts the ability of any such Person to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pay dividends or make any other distributions to any Credit Party on its Equity Interests or with respect to any other interest or participation in, or measured by, its profits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) pay any Indebtedness or other obligation owed to any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) make loans or advances to any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) sell, lease or transfer any of its Property to any Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) pledge its Property pursuant to the Credit Documents or any renewals, refinancings, exchanges, refundings or extension thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) act as a Credit Party pursuant to the Credit Documents or any renewals, refinancings, exchanges, refundings or extension thereof;

except (in respect of any of the matters referred to in <u>clauses (i)</u> through (<u>iv</u>) above) for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) this Agreement and the other Credit Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any document or instrument governing Indebtedness incurred pursuant to <u>Section</u> <u>8.1(e)</u>; <u>provided</u>, <u>that</u>, any such restriction contained therein relates only to the Property constructed or acquired in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Permitted Lien or any document or instrument governing any Permitted Lien; <u>provided</u>, <u>that</u>, any such restriction contained therein relates only to the Property subject to such Permitted Lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) customary restrictions and conditions contained in any agreement relating to the sale of any Property permitted under <u>Section</u> <u>8.10</u> pending the consummation of such sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any restrictions regarding licensing or sublicensing by the Credit Parties, Subsidiaries and other Regulated Entities of Intellectual Property in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) customary provision in leases and other contracts restricting the assignment thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) restrictions that arise in connection with Indebtedness permitted to be incurred pursuant to <u>Section</u> <u>8.1(j</u>).

Section 8.6 <u>Investments</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, make or own any Investment in any Person, including any joint venture and any Foreign Subsidiary, except:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investments in cash and Cash Equivalents and deposit accounts or securities accounts in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) equity Investments owned as of the Effective Date in any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) intercompany loans to the extent permitted under <u>Section</u> <u>8.1(b</u>), and guarantees to the extent permitted under <u>Section</u> <u>8.1(c</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Investments existing on the Effective Date and described on <u>Schedule 8.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Investments constituting Swap Agreements permitted by <u>Section</u> <u>8.1(f</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Permitted Acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Investments constituting accounts receivable, trade debt and deposits for the purchase of goods, in each case made in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Investments made by Regulated Entities in the ordinary course of business that are consistent with the respective investment policies of each such Regulated Entity in effect on the Effective Date, as such policy may be amended or modified from time to time by board (or equivalent) approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Guarantees by any Credit Party, any Subsidiary or any other Regulated Entity constituting Indebtedness permitted by <u>Section</u> <u>8.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) loans or advances to employees, officers or directors of members of any Credit Party or Subsidiary (other than any Regulated Subsidiary) in the ordinary course of business for travel, relocation and related expenses; <u>provided</u>, <u>that</u>, the aggregate amount of all such loans and advances does *not exceed* Five-Hundred Thousand Dollars ($500,000) in the aggregate at any time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, customers and suppliers, or upon the foreclosure with respect to any secured Investment or other transfer of title with respect to any secured Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Investments resulting from pledges or deposits described in <u>Section</u> <u>8.2(d</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Investments consisting of cash earnest money deposits in connection with a Permitted Acquisition or other Investment permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Investments consisting of endorsements for collection or deposit in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Investments by any Credit Party, any Subsidiary, or any other Regulated Entity in a Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Investments by Subsidiaries (including Regulated Subsidiaries) that are not Credit Parties or by Qualifying Reciprocal Entities, on the one hand, in other Subsidiaries (including Regulated Subsidiaries) that are *not* Credit Parties or in other Qualifying Reciprocal Entities, on the other hand;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Investments by the Credit Parties in (including, without limitation, in the form of provision of a Letter of Credit for the benefit of) Regulated Entities to the extent required to provide capital support for such Regulated Entities, <u>provided</u>, <u>that</u>, each of the following conditions shall have been satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default exists or would result from such Investment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately *after* giving effect to any such Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis, shall be at least 0.25 to 1.0 (a "*quarter turn*") less than the maximum Consolidated Leverage Ratio then in effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there shall be *at least* Ten Million Dollars ($10,000,000) of Liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Investments made in connection with Indebtedness permitted and incurred in reliance on <u>Section</u> <u>8.1(p</u>) consisting of Equity Interests in an FHLB that are held by a Regulated Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) other Investments in an aggregate amount that does *not exceed* One Million Dollars ($1,000,000) outstanding at any time (measured on a cost basis, to the extent applicable).

Notwithstanding anything to the contrary in the foregoing, in no event shall any Credit Party, any Subsidiary or any other Regulated Entity make, or permit to be made, any Investment that results in or facilitates, in any manner: (A) any Restricted Payment *not* otherwise permitted under the terms of <u>Section</u> <u>8.4</u> being made; or (B) any Material IP Rights being contributed or otherwise transferred, sold or disposed of to any Person that is *not* a Credit Party. For purposes of determining compliance with this <u>Section</u> <u>8.6</u>, any Investment that is written down, written off or forgiven by any Credit Party, any Subsidiary or any other Regulated Entity shall continue to count against any cap set forth in the clause or clauses of this <u>Section</u> <u>8.6</u> pursuant to which such Investment is permitted.

Section 8.7 <u>Use of Proceeds</u>. No Credit Party shall use the proceeds of any Credit Extension of the Loans except pursuant to <u>Section</u> <u>7.9</u>. No Credit Party shall use, and each Credit Party shall ensure that each of its Subsidiaries, each Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact, and each of the respective directors, officers, employees and agents of each of the foregoing, shall not use, the proceeds of any Credit Extension:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to refinance any commercial paper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in any manner that causes, or might cause, such Credit Extension, or the application of such proceeds, to violate any applicable Sanctions, Regulation T, Regulation U or Regulation X of the Federal Reserve Board, as in effect from time to time or any other regulation thereof, or to violate the Exchange Act;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country.

Section 8.8 <u>Financial Covenants</u>. The Credit Parties shall *not*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Consolidated Leverage Ratio</u>. Permit the Consolidated Leverage Ratio, as of the end of any Fiscal Quarter commencing with the Fiscal Quarter ending September 30, 2026, to be *greater than* the applicable ratio in respect of such Fiscal Quarter determined in accordance with the table set forth immediately below:

---

| | |
|:---|:---|
| ***Fiscal Quarter Ending*** | ***Consolidated Leverage***<br> ***Ratio*** |
| September 30, 2026, and each Fiscal Quarter ending thereafter but on or prior to the DDTL Commitment Termination Date | 2.75 to 1 |
| The first (1<sup>st</sup>) Fiscal Quarter ending after the DDTL Commitment Termination Date, and each Fiscal Quarter ending thereafter but on or prior to the first (1<sup>st</sup>) annual anniversary of the DDTL Commitment Termination Date | 2.5 to 1 |
| The first (1<sup>st</sup>) Fiscal Quarter ending after the first (1<sup>st</sup>) annual anniversary of the DDTL Commitment Termination Date, and each Fiscal Quarter ending thereafter during the term of this Agreement | 2.25 to 1 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consolidated Fixed Charge Coverage Ratio</u>. Permit the Consolidated Fixed Charge Coverage Ratio, as of the end of any Fiscal Quarter commencing with the Fiscal Quarter ending September 30, 2026, to be *less than* 1.25 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Combined Statutory Surplus</u>. Permit the Combined Statutory Surplus, as of the end of any Fiscal Quarter commencing with the Fiscal Quarter ending September 30, 2026, to be *less than* the *sum* of: (i) eighty percent (80.0%) of the Combined Statutory Surplus, determined as of the end of the Fiscal Quarter ended March 31, 2026; *plus* (ii) eighty percent (80.0%) of the aggregate amount of Investments (including, for purposes of clarity, Investments in the form of "surplus notes") made after March 31, 2026 by any Credit Party or Subsidiary (other than a Regulated Entity) in any Regulated Entity (other than a Captive Reinsurance Company), including, for purposes of clarity, any such Investments made with the proceeds of Revolving Loans or an advance under the Delayed Draw Term Loan.

Section 8.9 <u>Fundamental Changes; Disposition of Assets; Acquisitions</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, enter into any Acquisition or transaction of merger or consolidation, or liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution), or make any Asset Sale, or acquire by purchase or otherwise (other than purchases or other acquisitions of inventory and materials and the acquisition of equipment and capital expenditures in the

------

ordinary course of business, subject to <u>Section</u> <u>8.9</u>) the business, Property or fixed assets of, or Equity Interests or other evidence of beneficial ownership in, any Person or any division or line of business or other business unit of any Person (including, in each case, pursuant to the division or allocation of a limited liability company), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Subsidiary of any Credit Party may be merged with or into the Borrower or any other Subsidiary, or be liquidated, wound up or dissolved, or all, or any part, of its business or Property may be conveyed, sold, leased, transferred or otherwise disposed of, in one (1) transaction or a series of transactions, to the Borrower or any other Subsidiary; <u>provided, that,</u> in the case of such a merger, (i) if the Borrower is party to the merger, the Borrower shall be the continuing or surviving Person, and (ii) if any Guarantor is a party to such merger, then a Guarantor shall be the continuing or surviving Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Investments made in accordance with <u>Section</u> <u>8.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) sales of any Property made by any Regulated Entity in the ordinary course of business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Asset Sales, the proceeds of which, when aggregated with the proceeds of all other Asset Sales consummated within the same Fiscal Year in reliance on this <u>clause (d</u>), do not exceed One Million Dollars ($1,000,000); <u>provided, that</u>, (i) the consideration received by any Credit Party, Subsidiary or other Regulated Entity for the Property sold, or otherwise disposed of, pursuant to such Asset Sale shall be in an aggregate amount *at least* equal to the fair market value (as determined in good faith by the board of directors or managers (or similar governing body) of the applicable Credit Party, Subsidiary or other Regulated Entity) of such Property, (ii) *no less than seventy-five* percent (75.0%) of such proceeds shall be paid in cash or Cash Equivalents, and (iii) no Default or Event of Default exists at the time of consummation of such Asset Sale or would result therefrom.

Notwithstanding anything to the contrary in the foregoing, in no event shall any Credit Party, any Subsidiary or any other Regulated Entity make, or permit to be made, any Asset Sale that results in or facilitates, in any manner, any Material IP Rights being contributed or otherwise transferred, sold or disposed of to any Person that is *not* a Credit Party.

Section 8.10 <u>Disposal of Subsidiary Interests</u>. Except for any sale of all of its interests in the Equity Interests of any of its Subsidiaries in compliance with the provisions of <u>Section</u> <u>8.9</u> and except for Liens securing the Obligations, no Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) directly or indirectly sell, assign, pledge, or otherwise encumber or dispose of any Equity Interests in any of its Subsidiaries, except to qualify directors if required by Applicable Laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) permit any of its Subsidiaries directly or indirectly to sell, assign, pledge, or otherwise encumber or dispose of any Equity Interests in any of its Subsidiaries, except to another Credit Party (subject to the restrictions on such disposition otherwise imposed hereunder), or to qualify directors if required by Applicable Laws.

Section 8.11 <u>Sales and Lease-Backs</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, become or remain liable as lessee or as a

------

guarantor or other surety with respect to any lease of any Property (whether real, personal or mixed), whether now owned or hereafter acquired, which the applicable Credit Party, Subsidiary or other Regulated Entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has sold or transferred, or is to sell or to transfer, to any other Person (other than any Credit Party); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) intends to use for substantially the same purpose as any other Property that has been, or is to be, sold or transferred by any Credit Party to any Person (other than any Credit Party) in connection with such lease.

Section 8.12 <u>Transactions with Affiliates and Insiders</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, directly or indirectly, enter into or permit to exist any transaction (including the purchase, sale, lease or exchange of any Property or the rendering of any service) with any officer, director or Affiliate of any Credit Party, any Subsidiary or any other Regulated Entity on terms that are *less* favorable to such Credit Party, Subsidiary or other Regulated Entity, as the case may be, than those that might be obtained at the time from a Person who is *not* an officer, director or Affiliate of any Credit Party, any Subsidiary or any other Regulated Entity; <u>provided, that</u>, the foregoing restriction shall *not* apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any transaction exclusively between or among Credit Parties, and any transaction exclusively between or among Affiliates of any Credit Party, any Subsidiary or any other Regulated Entity that are not Credit Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) compensation (including bonuses and equity or other consideration) and employee benefit arrangements paid to, indemnities provided for the benefit of, and employment and severance arrangements entered into with, and reimbursement of expenses of officers and directors and approved by the Board of Directors of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Restricted Payment to the extent permitted by <u>Section</u> <u>8.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Investment to the extent permitted by <u>Section</u> <u>8.6</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any issuances of securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment agreements, employee stock options and employee stock ownership plans.

Section 8.13 <u>Modification or Payment of Certain Funded Debt</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) after the issuance thereof, amend or modify (or permit the termination, amendment or modification of) the terms of any Junior Debt in a manner adverse, in any material respect, to the interests of the Lenders (including specifically shortening any maturity or average life to maturity or requiring any payment sooner than previously scheduled or increasing the interest rate or fees applicable thereto), except to the extent any such amendment or modification constitutes a Permitted Refinancing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) pay, prepay, redeem, purchase, repurchase, defease, retire or extinguish, or otherwise satisfy, or obligate itself or any other Credit Party, Subsidiary or other Regulated Entity to do any of the foregoing, in respect of any Junior Debt other than any Indebtedness in the form of "surplus notes",

------

except for payments of regularly scheduled interest, regularly scheduled amortization (if any) of principal, accrued fees and expenses and customary indemnification obligations, and other required payments at the scheduled maturity thereof, in each case of this <u>clause (b</u>), *solely* to the extent that each of the following conditions are satisfied in respect of such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default then exists or would result from the making of such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) both immediately *before* and immediately *after* giving effect to any such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Credit Parties are in compliance, on a Pro Forma Basis, with each of the Financial Covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis, shall be at least 0.25 to 1.0 (a "*quarter turn*") less than the maximum Consolidated Leverage Ratio then in effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there shall be *at least* Ten Million Dollars ($10,000,000) of Liquidity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such payment, prepayment, redemption, purchase, repurchase, defeasance, retirement, extinguishment or other satisfaction is permitted under any and all applicable subordination, standstill and/or similar provisions in any applicable Contractual Obligation of such Credit Party, Subsidiary or other Regulated Entity.

Section 8.14 <u>Conduct of Business</u>. From and after the Effective Date, no Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, engage in any business other than the businesses engaged in by such Credit Party, Subsidiary or other Regulated Entity on the Effective Date and businesses that are substantially similar, related or incidental thereto.

Section 8.15 <u>Fiscal Year</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to, change its Fiscal Year-end from December 31.

Section 8.16 <u>Amendments to Organizational Agreements / Material Agreements</u>. No Credit Party shall, nor shall it permit any of its Subsidiaries (including any Regulated Subsidiaries) or any Qualifying Reciprocal Entity in respect of which it is appointed as attorney-in-fact to: (a) amend, or permit any amendments to, its Organizational Documents, if such amendment could reasonably be expected to be materially adverse to the Lenders or any Agent; (b) amend or permit any amendments to, or terminate or waive any provision of, any Material Contract (other than any managing general agent, service company or attorney-in-fact agreement), unless such amendment, termination, or waiver would not have, and would *not* be expected to have, a Material Adverse Effect; or (c) amend or permit any amendments to, or terminate or waive any provision of, any managing general agent, service company or attorney-in-fact agreement entered into by any Credit Party or Subsidiary (other than any Regulated Subsidiary), on the one hand, and a Regulated Entity, on the other hand, unless such amendment, termination, or waiver would *not* have, and would *not* be expected to have, an adverse effect on the Credit

------

Parties, the Agents or the Lenders, <u>provided, that</u>, notwithstanding anything to the contrary in the foregoing of this <u>clause (c</u>), so long as any such waiver is permitted as an Investment in accordance with <u>Section</u> <u>8.6</u>, the Credit Parties and Subsidiaries (other than Regulated Subsidiaries) shall be permitted to waive any provision of any managing general agent, service company or attorney-in-fact agreement entered into by any Credit Party or Subsidiary (other than a Regulated Subsidiary), on the one hand, and a Regulated Entity, on the other hand, in order to reduce or waive, in whole or in part, managing general agency, service company or attorney-in-fact fees that are then due and payable thereunder and/or have already been paid but which are subsequently waived in accordance with Applicable Law by the Credit Party or Subsidiary (other than a Regulated Subsidiary) to whom such fees would otherwise have been paid thereunder, as applicable.

Section 8.17 <u>Accounting and Reporting Changes</u>. (i) No Credit Party or Subsidiary (other than any Regulated Entity) may make any significant change in accounting treatment or reporting practices, except as required by GAAP or the SEC; and (ii) no Regulated Entity may make any significant change in accounting treatment or reporting practices, except as required by SAP.

Section 8.18 <u>Statutory Capitalization / Risk-Based Capital Ratio</u>. As of the end of each Fiscal Year, each Credit Party, Subsidiary and other Regulated Entity that is subject to any minimum statutory capitalization and/or risk-based capital ratio requirements imposed by any Insurance Regulatory Authority and/or Applicable Laws shall meet or exceed such requirements and, in any event, maintain a risk-based capital ratio of *at least* three-hundred percent (300.0%) of the authorized control level (or substantially equivalent term as used under Applicable Laws and/or by any applicable Insurance Regulatory Authority); <u>provided, that</u>, in the event of any failure to comply with any of the foregoing requirements, the Credit Parties, Subsidiaries and other Regulated Entities shall have a period of thirty (30) calendar days, measured from, and including, the date on which any of the Credit Parties, Subsidiaries and other Regulated Entities that are subject to any such requirements shall have reported, or have been required under Applicable Law or other requirement of an Insurance Regulatory Authority to report, any such capitalization and/or risk-based capital ratio information to an applicable Insurance Regulatory Authority, to return to compliance with such minimum statutory capitalization and/or risk-based capital ratio requirements.

Section 8.19 <u>Holdco Restrictions</u>. The Borrower shall *not* incur any Indebtedness, grant any Liens upon any of its Property, or engage in any operations, business or activity whatsoever, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) incurring and carrying Indebtedness permitted under <u>Section</u> <u>8.1</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) owning and/or purchasing Equity Interests in Subsidiaries and serving as the attorney-in-fact for Qualifying Reciprocal Entities,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) granting a security interest in its Property pursuant to the terms of any Collateral Documents or otherwise as permitted by <u>Section</u> <u>8.2</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) providing a Guaranty of the Obligations pursuant to this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) maintaining its corporate or limited liability company (as applicable) existence,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) participating in tax, accounting and other administrative activities for itself and/or as a member of the consolidated group of companies including the Credit Parties and Subsidiaries,

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) executing and delivering, and exercising its respective rights and performing each of its respective obligations under, each of the Credit Documents to which it is a party, any Secured Swap Agreements and/or Secured Treasury Management Agreements to which it is a party, and any other Contractual Obligations to which it is a party,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) opening and maintaining bank accounts,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) making any Restricted Payments or Investments expressly permitted to be made pursuant to this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) providing customary indemnification to officers and directors in the ordinary course of business (including pursuant to any Acquisition agreement and related documents to which it is a party),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) owning cash and Cash Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) issuing securities or other payments, awards or grants in cash, securities, or otherwise pursuant to (or for the funding of, as applicable) employment agreements to which it is a party or related employee stock options and employee stock ownership plans, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) any activities incidental or reasonably related to the foregoing,

in each case of the foregoing <u>clauses (a)</u> through <u>(m)</u>, in a lawful manner *not* in contravention of the terms of this Agreement and the other Credit Documents.

**Article 9** 

**<u>EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS.</u>**

Section 9.1 <u>Events of Default</u>. If any one (1) or more of the following conditions or events shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Failure to Make Payments When Due</u>. Failure by any Credit Party to pay:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the principal of any Loan when due, whether at stated maturity, by acceleration or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within one (1) Business Day of when due, any amount payable to the Issuing Bank in reimbursement of any drawing under a Letter of Credit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) within five (5) Business Days of when due, any interest on any Loan or any fee or any other amount due hereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Default in Other Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Failure of any Credit Party, any Subsidiary, or any other Regulated Entity to pay when due any principal of or interest on, or any other amount payable in respect of, one or more items of Indebtedness (other than Indebtedness referred to in <u>clause (a</u>) above) in an aggregate principal amount in *excess* of the Threshold Amount, in each case, beyond the grace or cure period, if any, provided therefor; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) breach or default by any Credit Party, any Subsidiary, or any other Regulated Entity with respect to any other term of (A) one (1) or more items of Indebtedness in the aggregate principal amounts referred to in <u>clause (b)(i</u>) above, or (B) any loan agreement, mortgage, indenture or other agreement relating to such item(s) of Indebtedness, in each case, beyond the grace or cure period, if any, provided therefor, if the effect of such breach or default is to cause, or to permit the holder or holders of that Indebtedness (or a trustee on behalf of such holder or holders), to cause, that Indebtedness to become or be declared due and payable (or subject to a compulsory repurchase or redeemable) prior to its stated maturity or the stated maturity of any underlying obligation, as the case may be;

<u>provided</u>, <u>that</u>, so long as the Administrative Agent has *not* exercised any remedies under this <u>Article 9</u>, any Default or Event of Default under this <u>clause (b</u>) shall be immediately cured and no longer continuing (without any action on the part of the Administrative Agent, any Lender or otherwise) as and when any such failure (I) is remedied by applicable Credit Party, Subsidiary or other Regulated Entity, or (II) is waived (including in the form of amendment) by the requisite holders of the applicable item of Indebtedness; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Breach of Certain Covenants</u>. Failure of any Credit Party to perform or comply with any term or condition contained in <u>Section 7.1(a)</u>, <u>Section 7.1(b)</u>, <u>Section 7.1(c)</u>, <u>Section 7.1(h)</u>, <u>Section 7.2(a)</u>, <u>Section 7.6</u>, <u>Section 7.9</u> or <u>Section 7.15</u>, or <u>Article 8</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Breach of Representations, etc</u>. Any representation, warranty, certification or other statement made, or deemed made, by any Credit Party or Subsidiary in any Credit Document to which it is a party, or in any statement or certificate at any time given by any Credit Party, Subsidiary or other Regulated Entity in writing pursuant hereto or thereto, or in connection herewith or therewith, shall be false in any material respect as of the date made or deemed made; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Other Defaults Under Credit Documents</u>. Any Credit Party, any Subsidiary or any other Regulated Entity shall default in the performance of, or compliance with, any term contained herein or in any of the other Credit Documents to which it is a party, other than any such term referred to in any other clause of this <u>Section</u> <u>9.1</u>, and such default shall *not* have been remedied or waived within thirty (30) days after the *earlier* to occur of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an Authorized Officer of any Credit Party becoming aware of such default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) receipt by the Borrower of notice from the Administrative Agent or the Required Lenders of such default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Involuntary Bankruptcy; Appointment of Receiver, etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A court of competent jurisdiction shall enter a decree or order for relief in respect of any Credit Party, any Subsidiary, or any other Regulated Entity in an involuntary case under the Bankruptcy Code or Debtor Relief Laws now or hereafter in effect, which decree or order is *not* stayed, or any other similar relief shall be granted under any applicable federal or state law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) an involuntary case shall be commenced against any Credit Party, any Subsidiary, or any other Regulated Entity under the Bankruptcy Code or other Debtor Relief Laws now or hereafter in effect;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over any Credit Party, any Subsidiary or any other Regulated Entity, or over all, or a substantial part, of their respective Property, shall have been entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) there shall have occurred the involuntary appointment of an interim receiver, trustee or other custodian of any Credit Party, any Subsidiary, or any other Regulated Entity for all, or a substantial part, of its respective Property; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) a warrant of attachment, execution or similar process shall have been issued against any substantial part of the Property of any Credit Party, any Subsidiary or any other Regulated Entity;

and any such event described in this <u>clause (f)(ii</u>) shall continue for sixty (60) days without having been dismissed, bonded or discharged; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Voluntary Bankruptcy; Appointment of Receiver, etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Credit Party, any Subsidiary, or any other Regulated Entity shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) have an order for relief entered with respect to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) commence a voluntary case under the Bankruptcy Code or other Debtor Relief Laws now or hereafter in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) consent to the appointment of, or taking possession by, a receiver, trustee or other custodian for all, or a substantial part, of its Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) make any assignment for the benefit of creditors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) be unable, or fail generally, or admit in writing its inability, to pay its debts as such debts become due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the board of directors (or similar governing body) of any Credit Party, any Subsidiary or any other Regulated Entity, or any committee thereof, shall adopt any resolution or otherwise authorize any action to approve any of the actions referred to in this <u>clause (g</u>) or in <u>clause (f</u>) above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Judgments and Attachments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any one or more final, non-appealable money judgments, writs or warrants of attachment or similar process involving an aggregate amount at any time in *excess* of the Threshold Amount (to the extent *not* adequately covered by insurance as to which a solvent and unaffiliated insurance company has acknowledged coverage in writing) shall be entered or filed against any Credit Party, any Subsidiary or any other Regulated Entity, or any of their respective Property, and shall remain undischarged, un-vacated, un-bonded or un-stayed for a period of sixty (60) days; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any non-monetary judgment or order shall be rendered against any Credit Party, any Subsidiary or any other Regulated Entity that could reasonably be expected to have a Material Adverse Effect, and shall remain undischarged, un-vacated, un-bonded or un-stayed for a period of sixty (60) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Dissolution</u>. Any order, judgment or decree shall be entered against any Credit Party, any Subsidiary or any other Regulated Entity decreeing the dissolution or split up of any such Person, and such order shall remain undischarged or un-stayed for a period in *excess* of thirty (30) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Pension Plans</u>. There shall occur one (1) or more ERISA Events that, individually or in the aggregate when taken together, results in liability to the Credit Parties, Subsidiaries and other Regulated Entities (taken together) in excess of the Threshold Amount during the term hereof and which is *not* paid by the applicable due date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Change in Control</u>. A Change in Control shall occur; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Invalidity of Credit Documents and Other Documents</u>. At any time after the execution and delivery thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) this Agreement or any other Credit Document ceases to be in full force and effect (other than by reason of (x) a release of Collateral in accordance with the terms of this Agreement and the other Credit Documents, or (y) the Payment in Full of the Obligations) or is declared to be null and void; or (B) the Collateral Agent shall *not* have, or shall cease to have, a valid and perfected Lien in any material portion of the Collateral purported to be covered by the Collateral Documents with the priority required by the relevant Collateral Document, except, in the case of this <u>clause (l)(i)(B</u>), to the extent that any such lapse is due to the failure by the Collateral Agent to (I) file any UCC financing statement or any continuation thereof, or (II) maintain possession of certificates, promissory notes, or other possessory Collateral pledged under the Collateral Documents (except to the extent that any such items were required to be delivered to the Collateral Agent pursuant to this Agreement and the other Credit Documents and were *not* so delivered within the applicable timeframe prescribed therefor in the applicable Credit Document(s)); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Credit Party, any Subsidiary, or any other Regulated Entity shall contest the validity or enforceability of any Credit Document in writing or deny in writing that any Credit Party has any further liability, including with respect to future advances by the Lenders, under any Credit Document to which it is a party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Risk Retention</u>. On June 1<sup>st</sup> of each calendar year, the net (of reinsurance coverage obtained) pre-tax catastrophe retention of any individual Regulated Entity (other than any Captive Reinsurance Company), whose Statutory Surplus is available for payment of claims on policies issued by the Regulated Entities (other than Captive Reinsurance Companies), *exceeds* twenty-five percent (25.0%) of the Statutory Surplus of such Regulated Entity, determined as of March 31<sup>st</sup> of the same calendar year in the event of a 1/100 Probable Maximum Loss followed by a subsequent event equivalent to a 1/50 Probable Maximum Loss, as measured by a catastrophe model that has been approved by the appropriate Insurance Regulatory Authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Reinsurer Concentration</u>. The aggregate amount of risk retention for catastrophe reinsurance (but *excluding* catastrophe reinsurance the full amount of which is collateralized as reasonably determined by the Administrative Agent) provided for payment of claims on policies purchased from the Credit Parties, Subsidiaries and other Regulated Entities provided by (i) any

------

Qualifying Reinsurer (other than the Florida Hurricane Catastrophe Fund) with an "A+" or higher financial strength rating from A.M. Best Company (or any successor in interest thereto), on an annual contract year basis, *exceeds* thirty-five percent (35.0%), or (ii) any other individual (or affiliated) reinsurer (other than the Florida Hurricane Catastrophe Fund), on an annual contract year basis, *exceeds* twenty-five percent (25.0%), in each case of the foregoing <u>clauses (n)(i)</u> and <u>(n)(ii)</u>, of the aggregate amount of all such risk retention provided by all reinsurers (other than the Florida Hurricane Catastrophe Fund); <u>provided</u>, <u>that</u>, (A) for purposes of determining whether an Event of Default exists under this <u>clause (n)</u>, reinsurance provided by Non-Qualifying Reinsurers shall be *excluded* from the calculation of the aggregate amount of risk retention to the extent that the aggregate amount of reinsurance provided by Non-Qualifying Reinsurers *exceeds* ten percent (10.0%) of the aggregate amount of all reinsurance maintained by, or for the benefit of, the Regulated Entities whose Statutory Surpluses are available for payment of claims on policies issued by the Credit Parties, Subsidiaries and other Regulated Entities, and (B) no Event of Default shall arise under this <u>clause (n</u>) to the extent *solely* arising from the merger, after the Effective Date but *prior* to the renewal of the applicable reinsurance agreements, of any reinsurer into another reinsurer, so long as no party to any such merger is a Credit Party, a Subsidiary, another Regulated Entity, or an Affiliate of any of the foregoing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Dissolution</u>. Any order, judgment or decree shall be entered against any Credit Party, any Subsidiary, or any other Regulated Entity decreeing the dissolution or split up of any such Person, and such order, judgement or decree shall remain undischarged or unstayed for a period in excess of thirty (30) calendar days.

Section 9.2 <u>Remedies</u>. Subject to any applicable restrictions set forth in <u>Section 9.4</u> in connection with the making of a Specified Equity Contribution, upon (a) the occurrence of an Automatic Acceleration Event of Default, automatically, and (b) the occurrence, and during the continuance, of any other Event of Default, at the request of (or with the consent of) the Required Lenders, upon notice to the Borrower by the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Revolving Commitments, if any, of each Lender having such Revolving Commitments, and the obligation of the Issuing Bank to issue any Letter of Credit, each shall immediately terminate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the DDTL Commitments, if any, of each Lender having such DDTL Commitments shall immediately terminate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each of the following shall immediately become due and payable, in each case, without presentment, demand, protest or other requirements of any kind, all of which are hereby expressly waived by each of the Credit Parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the unpaid principal amount of, and accrued interest on, the Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) an amount equal to the maximum amount that may at any time be drawn under all Letters of Credit then outstanding (regardless of whether any beneficiary under any such Letter of Credit shall have presented, or shall be entitled at such time to present, the drafts or other documents or certificates required to draw under such Letters of Credit); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) all other Obligations;

<u>provided</u>, <u>that</u>, the foregoing <u>sub-clauses (ii)(A</u>), <u>(ii)(B</u>) and <u>(ii)(C</u>) shall *not* affect in any way the obligations of the Lenders under <u>Section 2.2(b)(iii)</u> or <u>Section 2.3(e)</u>;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Administrative Agent shall cause the Collateral Agent to enforce any and all Liens and security interests created pursuant to Collateral Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Administrative Agent shall direct the Borrower to pay (and the Borrower hereby agrees, upon receipt of such notice, or automatically upon the occurrence of any Automatic Acceleration Event of Default, to pay) to the Administrative Agent such additional amounts of cash, to be held as security for the Borrower's reimbursement Obligations in respect of Letters of Credit then outstanding under arrangements acceptable to the Administrative Agent, equal to the aggregate issued and outstanding amount of all Letter of Credit Obligations, taken together, at such time.

Notwithstanding anything herein or otherwise to the contrary, any Event of Default occurring hereunder shall continue to exist (and shall be deemed to be continuing) until such time as such Event of Default has been cured to the satisfaction of the Required Lenders or waived in writing in accordance with the terms of <u>Section</u> <u>11.4</u>.

Section 9.3 <u>Application of Funds</u>. After the exercise of remedies provided for in <u>Section 9.2</u> (or after the Loans have automatically become immediately due and payable), any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>*First*</u>, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (other than principal, interest and Letter of Credit Fees but including without limitation all reasonable out-of-pocket fees, expenses and disbursements of any law firm or other counsel and amounts payable under <u>Section 3.1</u>, <u>Section 3.2</u> and <u>Section 3.3</u>) payable to the Administrative Agent and the Collateral Agent, in each case, in its capacity as such;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>*Second*</u>, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders, including, without limitation, all reasonable out-of-pocket fees, expenses and disbursements of any law firm or other counsel and amounts payable under <u>Section 3.1</u>, <u>Section 3.2</u> and <u>Section 3.3</u>), ratably among the Lenders in proportion to the respective amounts described in this <u>clause (b</u>) payable to them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>*Third*</u>, to payment of that portion of the Obligations constituting accrued and unpaid Letter of Credit Fees and interest on the Loans, Letter of Credit Borrowings and other Obligations ratably among such parties in proportion to the respective amounts described in this <u>clause (c</u>) payable to them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>*Fourth*</u>, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) payment of that portion of the Obligations constituting unpaid principal of the Loans and Letter of Credit Borrowings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) payment of breakage, termination or other amounts owing in respect of any Swap Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Swap Provider, on the other hand, to the extent such Swap Agreement is permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) payments of amounts due under any Treasury Management Agreement between any Credit Party, any Subsidiary or any other Regulated Entity, on the one hand, and any Qualifying Treasury Management Bank, on the other hand; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Administrative Agent for the account of the Issuing Bank, to Cash Collateralize that portion of the Letter of Credit Obligations comprised of the aggregate undrawn amount of Letters of Credit;

ratably among such parties in proportion to the respective amounts described in this <u>clause (d</u>) payable to them; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>*Last*</u>, the balance, if any, after all of the Obligations have been Paid in Full, to the Borrower or as otherwise required by Applicable Laws.

Subject to <u>Section</u> <u>2.3</u>, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to <u>clause (d</u>) above shall be applied to satisfy drawings under such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above.

Excluded Swap Obligations with respect to any Guarantor shall *not* be paid with amounts received from such Guarantor or such Guarantor's assets, but appropriate adjustments shall be made with respect to payments from other Credit Parties to preserve the allocation to Obligations otherwise set forth above in this <u>Section</u> <u>9.3</u>.

Notwithstanding anything to the contrary in the foregoing, Secured Swap Obligations and Secured Treasury Management Obligations shall be excluded from the application described above if the Administrative Agent has not received a Secured Party Designation Notice, together with such supporting documentation as the Administrative Agent may request, from the applicable Qualifying Swap Provider or Qualifying Treasury Management Bank, as the case may be. Each Qualifying Swap Provider or Qualifying Treasury Management Bank not a party to this Agreement that has given the notice contemplated by the preceding sentence shall, by such notice, be deemed to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of <u>Article 10</u> for itself and its Affiliates as if a "*Lender*" party to this Agreement.

Section 9.4 <u>Cure Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any provision to the contrary contained in this Agreement or any other Credit Document, for purposes of determining compliance with the Financial Covenants set forth in <u>Section 8.8(a)</u> and <u>Section 8.8(b)</u>, respectively, the proceeds ("*<u>Cure Proceeds</u>*") of any cash equity contribution (which equity shall be common Equity Interests or other Equity Interests not constituting Disqualified Equity Interests) that is made by any of the holders (direct or indirect) of outstanding Equity Interests in the Borrower to the Borrower after the end of the applicable Fiscal Quarter in respect of which such Cure Proceeds are contributed but, in any event, on or prior to the date that is fifteen (15) Business Days after the date on which financial statements have been, or are required to have been, delivered to the Administrative Agent pursuant to <u>Section</u> <u>7.1(a</u>) in respect of such Fiscal Quarter (each such period, a "<u>*Cure Period*</u>"), will be included in the calculation of (and such Cure Proceeds shall increase) Consolidated EBITDA on a dollar-for-dollar basis *solely* for the limited purpose of determining compliance with the Financial Covenant set forth in <u>Section</u> <u>8.8(a</u>) and/or the Financial Covenant set forth in <u>Section</u> <u>8.8(b</u>) (as applicable) for (I) such Fiscal Quarter, and (II) any subsequent fiscal period including such Fiscal Quarter (each such contribution of Cure Proceeds, a "<u>*Specified Equity Contribution*</u>"), and, for the avoidance of doubt, such Cure Proceeds shall be disregarded and shall not affect the calculation of Consolidated EBITDA for all other purposes of this Agreement and the other Credit Documents (including, without limitation, for purposes of calculating compliance with any of such Financial Covenants with respect to any other fiscal period, calculating compliance with the Financial Covenant set forth in <u>Section</u> <u>8.8(c</u>) with

------

respect to any fiscal period, calculation of the Applicable Margin, calculation of availability under any Financial Covenant-related basket, carveout or exception set forth in this Agreement or any other Credit Document, or calculation of compliance, on a Pro Forma Basis or otherwise, with any financial ratio-based test or condition related to determining whether the consummation of any Specified Transaction is permitted under this Agreement or any other Credit Document), <u>provided, that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) with respect to each fiscal period consisting of two (2) consecutive full Fiscal Quarters, there shall be *at least* one (1) Fiscal Quarter during such period in respect of which no Specified Equity Contribution is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there shall be *no more than five* (5) Specified Equity Contributions made in the aggregate during the term of this Agreement (it being understood and agreed that, in the event that a Specified Equity Contribution is made in respect of multiple Financial Covenants each measured as of the end of a single Fiscal Quarter, then such Specified Equity Contribution for such Fiscal Quarter shall count as a single Specified Equity Contribution for purposes of this <u>clause (a)(ii</u>));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate amount of Cure Proceeds contributed in respect of any individual Specified Equity Contribution shall be *no greater than* the minimum amount required to cause the Credit Parties to be in compliance with the applicable Financial Covenant(s) for the applicable Fiscal Quarter in respect of which such Specified Equity Contribution is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all Specified Equity Contributions shall be disregarded for purposes of the calculation of Consolidated EBITDA for all purposes of this Agreement and the other Credit Documents, other than for the express purpose(s), and for the applicable period(s), as described in the foregoing of this <u>Section</u> <u>9.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) there shall be *no pro forma* or other reduction in Indebtedness, through either the netting of cash or prepayment of the Term Loans or otherwise, with any Cure Proceeds received by any Credit Party, any Subsidiary or any other Regulated Entity in respect of any Specified Equity Contribution for purposes of determining compliance with the Financial Covenants for any period(s) in respect of which such Specified Equity Contribution is included in Consolidated EBITDA in accordance with this <u>clause (a</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Borrower shall prepay the Obligations with the Cure Proceeds received by any Credit Party, any Subsidiary or any Regulated Entity in connection with any Specified Equity Contribution in accordance with <u>Section</u> <u>2.11(c)(iv</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary contained in this Agreement or any other Credit Document, upon the Administrative Agent's receipt of written notice from the Borrower that it intends, prior to the expiration of the applicable Cure Period (relating to the applicable Fiscal Quarter with respect to which the applicable Financial Covenant violation(s) relate), to effect an equity cure pursuant to this <u>Section</u> <u>9.4</u> (any such notice being irrevocable) and until the expiration of such Cure Period, and solely to the extent that no Event of Default exists at such time (other than in respect of a Financial Covenant tested for such Fiscal Quarter), neither the Administrative Agent nor any Lender shall be permitted to (i) accelerate the Obligations, (ii) terminate the Commitments, (iii) impose Default Interest, or (iv) exercise remedies under the Credit Documents (including against the Collateral), in each case of the foregoing <u>clauses (b)(i)</u> through <u>(b)(iv)</u>, *solely* as a result of such Event(s) of Default resulting from a violation of any Financial Covenant(s) tested for such Fiscal Quarter. Notwithstanding anything to the contrary in the foregoing, no Lender shall be required to make any Loan, and the Issuing Bank shall not be required to issue any Letter of Credit, from and after the last day of the applicable Fiscal Quarter (with respect to

------

which the breach of an applicable Financial Covenant(s) has occurred) until the date on which the applicable Credit Party, Subsidiary or other Regulated Entity shall have received the Cure Proceeds in accordance with this <u>Section</u> <u>9.4</u>.

**Article 10** 

**<u>AGENCY</u>** 

Section 10.1 <u>Appointment and Authority</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Lenders and the Issuing Bank hereby irrevocably appoints Regions to act on its behalf as the Administrative Agent hereunder and under the other Credit Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this <u>Article 10</u> are *solely* for the benefit of the Administrative Agent, the Lenders and the Issuing Bank, and no Credit Party, Subsidiary or other Regulated Entity shall have rights as a third party beneficiary of any of such provisions. It is understood and agreed that the use of the term "*agent*" herein or in any other Credit Documents (or any other similar term) with reference to the Administrative Agent is *not* intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Lenders hereby irrevocably appoints, designates and authorizes the Collateral Agent to take such action on its behalf under the provisions of this Agreement and each Collateral Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any Collateral Document, together with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any Collateral Document, the Collateral Agent shall not have any duties or responsibilities, except those expressly set forth herein or therein, nor shall the Collateral Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any Collateral Document or otherwise exist against the Collateral Agent. Without limiting the generality of the foregoing sentence, the use of the term "*agent*" herein and in the Collateral Documents with reference to the Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. The Collateral Agent shall act on behalf of the Lenders with respect to any Collateral and the Collateral Documents, and the Collateral Agent shall have all of the benefits and immunities: (i) provided to the Administrative Agent under the Credit Documents with respect to any acts taken or omissions suffered by the Collateral Agent in connection with any Collateral or the Collateral Documents as fully as if the term "*Administrative Agent*" as used in such Credit Documents included the Collateral Agent with respect to such acts or omissions; and (ii) as additionally provided herein or in the Collateral Documents with respect to the Collateral Agent.

Section 10.2 <u>Rights as a Lender</u>. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender, and may exercise the same as though it were *not* the Administrative Agent, and the term "*Lender*" or "*Lenders*" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may

------

accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with, the Borrower, any Subsidiary or other Affiliate of the Borrower or any other Regulated Entity, as if such Person were *not* the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

Section 10.3 <u>Exculpatory Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Credit Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall *not* have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Credit Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Credit Documents), <u>provided</u>, <u>that</u>, the Administrative Agent shall *not* be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Credit Document or Applicable Law, including, for the avoidance of doubt, any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall *not*, except as expressly set forth herein and in the other Credit Documents, have any duty to disclose, and shall *not* be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall *not* be liable for any action taken or not taken by it: (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in <u>Section 11.4</u> and <u>Section 9.2</u>); or (ii) in the absence of its own gross negligence or willful misconduct, as determined by a court of competent jurisdiction by final and non-appealable judgment. The Administrative Agent shall be deemed *not* to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent in writing by the Borrower, a Lender or the Issuing Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall *not* be responsible for or have any duty to ascertain or inquire into:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any statement, warranty or representation made in or in connection with this Agreement or any other Credit Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Credit Document or any other agreement, instrument or document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the satisfaction of any condition set forth in <u>Article 5</u> or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent and any assignor of a Loan or seller of a participation hereunder shall be entitled to rely conclusively on a representation of the assignee Lender or Participant in any document delivered in connection with this Agreement, including, without limitation, the relevant Assignment Agreement or participation agreement, as applicable, that such assignee or purchaser is not a Disqualified Institution. The Administrative Agent shall *not* be responsible or have any liability for, or have any duty to ascertain, inquire into, monitor or enforce, compliance with the provisions hereof relating to Disqualified Institutions. Without limiting the generality of the foregoing, the Administrative Agent shall not (x) be obligated to ascertain, monitor or inquire as to whether any Lender or Participant or prospective Lender or Participant is a Disqualified Institution, or (y) have any liability with respect to or arising out of any assignment or participation of Loans, or disclosure of confidential information, to any Disqualified Institution.

Section 10.4 <u>Reliance by Administrative Agent</u>. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the Issuing Bank, the Administrative Agent may presume that such condition is satisfactory to such Lender or the Issuing Bank unless the Administrative Agent shall have received notice to the contrary from such Lender or the Issuing Bank prior to the making of such Loan or the issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower and its Subsidiaries), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

Section 10.5 <u>Delegation of Duties</u>. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Credit Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this <u>Section</u> <u>10.5</u> shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

Section 10.6 <u>Resignation of Administrative Agent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent may at any time give notice of its resignation to the Lenders, the Issuing Bank and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with

------

an office in the United States (but which shall not be a Disqualified Institution), or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the "<u>*Resignation Effective Date*</u>"), then the retiring Administrative Agent may (but shall not be obligated to) on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent meeting the qualifications set forth above. Whether or not a successor has been appointed such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Person serving as Administrative Agent is a Defaulting Lender pursuant to <u>clause</u> <u>(d</u>) of the definition thereof, the Required Lenders may, to the extent permitted by Applicable Law by notice in writing to the Borrower and such Person remove such Person as the Administrative Agent and, in consultation with the Borrower, appoint a successor. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days (or such earlier day as shall be agreed by the Required Lenders (the "<u>*Removal Effective Date*</u>")), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With effect from the Resignation Effective Date or the Removal Effective Date (as applicable): (1) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Credit Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders or the Issuing Bank under any of the Credit Documents, the retiring or removed Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed); and (2) except for any indemnity payments owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and the Issuing Bank directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments owed to the retiring or removed Administrative Agent), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Credit Documents (if not already discharged therefrom as provided above in this Section). The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor, unless otherwise agreed between the Borrower and such successor. After the retiring or removed Administrative Agent's resignation or removal hereunder and under the other Credit Documents, the provisions of this <u>Article 10</u> and <u>Section</u> <u>11.2</u> shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.

Section 10.7 <u>Non-Reliance on Administrative Agent and Other Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Lenders and the Issuing Bank acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each of the Lenders and the Issuing Bank also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this

------

Agreement, any other Credit Document or any related agreement or any document furnished hereunder or thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Lender hereby represents and warrants that: (i) (A) the Credit Documents set forth the terms of a commercial lending facility, and (B) such Lender is engaged in the making, acquiring or holding of commercial loans in the ordinary course, and is entering into this Agreement as a Lender for the purpose of making, acquiring or holding commercial loans and providing other credit facilities as set forth in this Agreement, as may be applicable to such Lender, and not, in any event, for the purpose of purchasing, acquiring or holding any other type of financial instrument or any security; and (ii) such Lender is sophisticated with respect to decisions to make, acquire and/or hold commercial loans and to provide other credit facilities as set forth in this Agreement, as may be applicable to such Lender, and either it, or the Person exercising discretion in making its decision to make, acquire and/or hold such commercial loans, and/or to provide such other credit facilities, as the case may be, is experienced in making, acquiring or holding such commercial loans and/or providing such other credit facilities. Each Lender agrees not to assert a claim in contravention of any of the foregoing of this <u>clause (b</u>).

Section 10.8 <u>No Other Duties, etc</u>. Anything herein to the contrary notwithstanding, none of the Arrangers, Co-Documentation Agents or Syndication Agent listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Credit Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or the Issuing Bank hereunder.

Section 10.9 <u>Administrative Agent May File Proofs of Claim</u>. In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or Letter of Credit Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, Letter of Credit Obligations and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the Issuing Bank and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the Issuing Bank and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the Issuing Bank and the Administrative Agent under <u>Section</u> <u>2.10 and Section</u> <u>11.2</u>) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and the Issuing Bank to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders and the Issuing Bank, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under <u>Section</u> <u>2.10 and Section</u> <u>11.2</u>).

Section 10.10 <u>Collateral and Guaranty Matters</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Lenders (including the Issuing Bank and the Swingline Lender) irrevocably authorize each Agent, at its option and in its discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to release any Lien on any Property granted to, or held under, any Credit Document securing the Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) upon the Payment in Full of the Obligations under this Agreement and the other Credit Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) that is sold or otherwise disposed of, or to be sold or otherwise disposed of, as part of, or in connection with, any sale or other disposition permitted under the Credit Documents or consented to in accordance with the terms of this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) subject to <u>Section</u> <u>11.4</u>, if approved, authorized or ratified in writing by the Required Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to subordinate any Lien on any Property granted to, or held under, any Credit Document securing the Obligations to the holder of any Lien on such Property that is permitted by <u>Section</u> <u>8.2(m</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to release any Guarantor from its obligations under this Agreement and the other Credit Documents if such Person ceases to be a Guarantor as a result of a transaction permitted under the Credit Documents.

Upon request by any Agent at any time, the Required Lenders will confirm in writing the Administrative Agent's authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under this Agreement pursuant to this <u>Section</u> <u>10.10</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall *not* be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Administrative Agent's Lien thereon, or any certificate prepared by any Credit Party in connection therewith, nor shall the Administrative Agent be responsible or liable to the Lenders for any failure to monitor or maintain any portion of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in this Agreement or any other Credit Document, each of the Credit Parties, each Agent and each other holder of the Obligations hereby agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no holder of the Obligations shall have any right individually to realize upon any of the Collateral or to enforce this Agreement, the Notes or any other Credit Document, it being understood and agreed that all powers, rights and remedies hereunder may be exercised solely by the Administrative Agent, on behalf of the holders of the Obligations in accordance with the terms hereof and all powers, rights and remedies under the Collateral Documents may be exercised solely by the Collateral Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event of a foreclosure by the Collateral Agent on any of the Collateral pursuant to a public or private sale or other disposition, the Collateral Agent or any Lender may be the purchaser of any or all of such Collateral at any such sale or other disposition, and the Collateral Agent, as agent for and representative of the holders of the Obligations (but *not* any Lender or Lenders in its or their respective individual capacities, unless the Required Lenders

------

shall otherwise agree in writing) shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all, or any portion, of the Collateral sold at any such public sale, to use and apply any of the Obligations as a credit on account of the purchase price for any collateral payable by the Collateral Agent at such sale or other disposition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Secured Swap Agreement or Secured Treasury Management Agreement will create (or be deemed to create) in favor of any Qualifying Swap Provider or any Qualifying Treasury Management Bank, respectively that is a party thereto any rights in connection with the management or release of any Collateral or of the obligations of the Borrower or any other Credit Party under the Credit Documents except as expressly provided herein or in the other Credit Documents. By accepting the benefits of the Collateral, each such Qualifying Swap Provider and Qualifying Treasury Management Bank shall be deemed to have appointed the Collateral Agent as its agent and agreed to be bound by the Credit Documents as a holder of the Obligations, subject to the limitations set forth in this <u>clause (d</u>). Furthermore, it is understood and agreed that the Qualifying Swap Provider and Qualifying Treasury Management Banks, in their capacity as such, shall not have any right to notice of any action or to consent to, direct or object to any action hereunder or under any of the other Credit Documents or otherwise in respect of the Collateral (including the release or impairment of any Collateral, or to any notice of or consent to any amendment, waiver or modification of the provisions hereof or of the other Credit Documents) other than in its capacity as a Lender and, in any case, only as expressly provided herein.

Section 10.11 <u>Erroneous Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Administrative Agent notifies a Lender, the Issuing Bank, any other holder(s) of the Obligations or any other Person(s) who has received funds on behalf of a Lender, the Issuing Bank or any other holder(s) of the Obligations (any such Lender, Issuing Bank, other holder(s) of the Obligations or other recipient(s), a "<u>*Payment Recipient*</u>") that the Administrative Agent has determined in its sole discretion (whether or not after its receipt of any notice delivered pursuant to <u>clause (b</u>) below) that any funds received by such Payment Recipient from the Administrative Agent, or any of its Affiliates, were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient on its behalf) (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "<u>*Erroneous Payment*</u>") and demands the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall, at all times, remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in *no* event *later than* two (2) Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from, and including, the date on which such Erroneous Payment (or portion thereof) was received by such Payment Recipient to, and including, the date on which such amount is repaid to the Administrative Agent in same day funds at the *greater of* the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice delivered from the Administrative Agent to any Payment Recipient pursuant to this <u>clause (a</u>) shall be conclusive and binding, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting anything in the immediately foregoing <u>clause (a</u>), each Lender, the Issuing Bank, each other holder(s) of the Obligations party hereto and each other Payment Recipient party hereto hereby further agrees that, if it receives a payment, prepayment or repayment (whether received as

------

a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (I) that is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (II) that was *not* preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (III) that such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient(s) otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part), in each case of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) in any such case of the immediately preceding <u>clauses (b)(I) or (b)(II</u>), an error shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary), or (B) in any such case of the immediately preceding <u>clause (b)(III</u>), an error has been made, in each case of the foregoing <u>clauses (b)(i)(A)</u> and <u>(b)(i)(B)</u>, with respect to such payment, prepayment or repayment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender, Issuing Bank, other holder(s) of the Obligations or other Payment Recipient(s) shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in any event, within one (1) Business Day of its obtaining knowledge of such error) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this <u>clause (b</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Lender, the Issuing Bank, each other holder of the Obligations party hereto and each other Payment Recipient party hereto hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s) under any Credit Document, or otherwise payable or distributable by the Administrative Agent to such Lender, the Issuing Bank, such other holder(s) of the Obligations and/or such other Payment Recipient(s) from any source, against any amount due to the Administrative Agent under immediately preceding <u>clause (a</u>) or under the indemnification provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that an Erroneous Payment (or portion thereof) is *not* recovered by the Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance with foregoing <u>clause (a</u>), from any Lender, the Issuing Bank, any other holder(s) of the Obligations or any other Payment Recipient(s) that has received such Erroneous Payment (or portion thereof) (and/or from any other recipient who received such Erroneous Payment (or portion thereof) on the respective behalf of any of the foregoing) (such unrecovered amount, an "<u>*Erroneous Payment Return Deficiency*</u>"), upon the Administrative Agent's notice to such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, at any time: (i) such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, shall be deemed to have assigned (to the extent it has any such Loans) its Loans (but not its Commitments) of the relevant Class with respect to which such Erroneous Payment was made (the "<u>*Erroneous Payment Impacted Class*</u>") in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of such Loans (but not Commitments) of the Erroneous Payment Impacted Class, the "<u>*Erroneous Payment Deficiency* Assignment</u>") at par plus any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance), and such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, is hereby (together with the Borrower) deemed to have executed and delivered an Assignment Agreement (or, to the extent applicable, an agreement incorporating an Assignment Agreement by reference pursuant to Debtdomain, Intralinks, Syndtrak, or a substantially similar electronic transmission system as to which the Administrative Agent

------

and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and <u>further</u>, such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be, shall deliver any Note(s) evidencing any such Loans to the Administrative Agent; (ii) the Administrative Agent, as the assignee Lender, shall be deemed to acquire the Erroneous Payment Deficiency Assignment; (iii) upon such deemed acquisition, the Administrative Agent, as the assignee Lender, shall become a Lender, the Issuing Bank or such other type of holder of the Obligations, as the case may be, hereunder with respect to such Erroneous Payment Deficiency Assignment, and <u>further</u>, the assigning Lender, the Issuing Bank or such other holder(s) of the Obligations shall cease to be a Lender, the Issuing Bank or such other holder of the Obligations, as the case may be, hereunder with respect to such Erroneous Payment Deficiency Assignment, but excluding, for the avoidance of doubt, such Person's obligations under the indemnification provisions of this Agreement and its applicable Commitments, which shall survive as to such assigning Lender, Issuing Bank or other holder(s) of the Obligations; and (iv) the Administrative Agent may reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. The Administrative Agent may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and, upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender, the Issuing Bank, the other applicable holder(s) of the Obligations or the other such applicable Payment Recipient(s), as the case may be, shall be reduced by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender, the Issuing Bank, such other holder(s) of the Obligations or such other Payment Recipient(s), as the case may be (and/or against any recipient that receives funds on the respective behalf of any of the foregoing). For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender or the Issuing Bank, and such Commitments shall remain available in accordance with the terms of this Agreement. In addition, each party hereto agrees that, except to the extent that the Administrative Agent has sold a Loan (or portion thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and irrespective of whether the Administrative Agent may be equitably subrogated, the Administrative Agent shall be contractually subrogated to all of the rights and interests of the applicable Lender, the Issuing Bank or any other applicable holder(s) of the Obligations under the Credit Documents with respect to each Erroneous Payment Return Deficiency (the "<u>*Erroneous Payment Subrogation Rights*</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each of the parties hereto agree that an Erroneous Payment shall *not* pay, prepay, repay, discharge, or otherwise satisfy any Obligations owed by the Borrower or any other Credit Party, except, in each case, to the extent that such Erroneous Payment is, and *solely* with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrower or any other Credit Party for the purpose of making such Erroneous Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent permitted by Applicable Law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and each party hereto, to the extent constituting a Payment Recipient, hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including, without limitation, waiver of any defense based on "*discharge for value*" or any similar doctrine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each party's respective obligations, agreements and waivers under this <u>Section</u> <u>10.11</u> shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, any Lender, the Issuing Bank or any other holder(s) of the Obligations, the termination of any or all of the Commitments, and/or the repayment, satisfaction or discharge of any or all of the Obligations (or any portion thereof) under any Credit Document.

------

**Article 11** 

**<u>MISCELLANEOUS</u>** 

Section 11.1 <u>Notices; Effectiveness; Electronic Communications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices Generally</u>. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in <u>clause (b</u>) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier or electronic mail as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Administrative Agent, the Borrower or any other Credit Party, to the address, telecopier number, electronic mail address or telephone number specified in <u>Appendix B</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to any Lender, the Issuing Bank or the Swingline Lender, to the address, telecopier number, electronic mail address or telephone number in its Administrative Questionnaire on file with the Administrative Agent.

Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by telecopier shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices and other communications delivered through electronic communications to the extent provided in <u>clause (b</u>) below, shall be effective as provided in <u>clause (b</u>) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Electronic Communications</u>. Notices and other communications to the Lenders and the Issuing Bank hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, <u>provided</u>, <u>that</u>, the foregoing shall *not* apply to notices to any Lender or the Issuing Bank pursuant to <u>Article 2</u> if such Lender or the Issuing Bank, as applicable, has notified the Administrative Agent and the Borrower that it is incapable of receiving notices under such Article by electronic communication. The Administrative Agent or any Credit Party may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, <u>provided, that</u>, approval of such procedures may be limited to particular notices or communications.

Unless the Administrative Agent otherwise prescribes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "*return receipt requested*" function, as available, return e-mail or other written acknowledgement); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing <u>clause (b)(i</u>) of notification that such notice or communication is available and identifying the website address therefor,

------

<u>provided</u>, <u>that</u>, with respect to <u>clauses (b)(i)</u> and <u>(b)(ii)</u> above, if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Change of Address, Etc</u>. Any party hereto may change its address or telecopier number for notices and other communications hereunder by notice to the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Platform</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Credit Party agrees that the Administrative Agent may, but shall *not* be obligated to, make the Communications (as defined below) available to the Issuing Bank and the other Lenders by posting the Communications on Debtdomain, Intralinks, Syndtrak or a substantially similar electronic transmission system (the "<u>*Platform*</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Platform is provided "*as is*" and "*as available*". The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or the Platform. In no event shall the Administrative Agent or any of its Related Parties (collectively, the "<u>*Agent Parties*</u>") have any liability to the Borrower or the other Credit Parties, any Lender or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower's, any other Credit Party's or the Administrative Agent's transmission of communications through the Platform. "<u>*Communications*</u>" means, collectively, any notice, demand, communication, information, document or other material provided by, or on behalf of, any Credit Party pursuant to any Credit Document or the transactions contemplated therein which is distributed to the Administrative Agent, any Lender or the Issuing Bank by means of electronic communications pursuant to this Section, including through the Platform.

Section 11.2 <u>Expenses; Indemnity; Damage Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Costs and Expenses</u>. The Credit Parties shall pay, on a joint and several basis, each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all reasonable and documented costs and out-of-pocket expenses incurred by the Administrative Agent and its Affiliates (which, in the case of legal counsel, shall be limited to the reasonable fees, charges and disbursements of one primary counsel for the Agents, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, one local counsel to the Agents, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) if reasonably deemed necessary by the Administrative Agent, and, *solely* in the case of an actual or perceived conflict of interest, one additional primary counsel and, if reasonably deemed necessary by the Administrative Agent (or the relevant Lender or Lenders, as applicable), one additional counsel in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) for each group of such affected Persons similarly situated, taken as a whole) in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Credit Documents or any

------

amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all reasonable and documented costs and out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all reasonable and documented costs and out-of-pocket expenses incurred by the Administrative Agent, any Lender or the Issuing Bank (which, in the case of legal counsel, shall be limited to the reasonable fees, charges and disbursements of one primary counsel for the Agents, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, one local counsel to the Agents, the Lenders, the Issuing Bank, the Swingline Lender and their respective Affiliates, taken as a whole, in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) if reasonably deemed necessary by the Administrative Agent, and, *solely* in the case of an actual or perceived conflict of interest, one additional primary counsel and, if reasonably deemed necessary by the Administrative Agent (or the relevant Lender or Lenders, as applicable), one additional counsel in each material relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) for each group of such affected Persons similarly situated, taken as a whole) in connection with the enforcement or protection of its rights:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in connection with this Agreement and the other Credit Documents, including its rights under this Section; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification by the Credit Parties</u>. The Credit Parties shall indemnify, on a joint and several basis, the Administrative Agent (and any sub-agent thereof), the Collateral Agent (and any sub-agent thereof), each Lender and the Issuing Bank, and each Related Party of any of the foregoing Persons (each such Person being called an "<u>*Indemnitee*</u>") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (which, in the case of legal counsel, shall be limited to the reasonable fees, charges and disbursements of one primary counsel for the Indemnitees, taken as a whole, and of one special and local counsel to the Indemnitees, taken as a whole, in each applicable jurisdiction retained by the Administrative Agent and/or the Collateral Agent, and, in the event of any actual or potential conflict of interest, one additional primary, special and local counsel, as applicable, for each Indemnitee subject to a conflict), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Borrower or any other Credit Party) other than such Indemnitee or its Related Parties arising out of, in connection with, or as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the execution or delivery of this Agreement, any other Credit Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by any Credit Party, any Subsidiary or any other Regulated Entity, or any Environmental Liability related in any way to any Credit Party, any Subsidiary or any other Regulated Entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing <u>sub-clauses (b)(i), (b)(ii), or (b)(iii</u>), whether based on contract, tort or any other theory, whether brought by a third party or by any Credit Party, any Subsidiary or any other Regulated Entity, and regardless of whether any Indemnitee is a party thereto;

<u>provided, that</u>, such indemnity shall *not*, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses: (x) are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee; or (y) result from a claim brought by the Borrower or any Credit Party against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder or under any other Credit Document, if the Borrower or such Credit Party has obtained a final and non-appealable judgment in its favor on such claim as determined by a court of competent jurisdiction. This <u>clause (b</u>) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Reimbursement by Lenders</u>. To the extent that the Credit Parties for any reason fail to indefeasibly pay any amount required under <u>clauses (a)</u> or <u>(b)</u> above to be paid by it to the Administrative Agent (or any sub-agent thereof), the Collateral Agent (or any sub-agent thereof), the Issuing Bank or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the Collateral Agent (or any such sub-agent), the Issuing Bank or such Related Party, as the case may be, such Lender's pro rata share (in each case, determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount, <u>provided, that,</u> the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or the Issuing Bank in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) or the Issuing Bank in connection with such capacity. The obligations of the Lenders under this <u>clause (c</u>) are subject to the provisions of this Agreement that provide that their obligations are several in nature, and not joint and several.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Waiver of Consequential Damages, Etc</u>. To the fullest extent permitted by Applicable Law, none of the Credit Parties shall assert, and each hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Credit Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof. No Indemnitee referred to in <u>clause (b</u>) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Credit Documents or the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payments</u>. All amounts due under this Section shall be payable promptly, but in any event within ten (10) Business Days after written demand therefor (including delivery of copies of applicable invoices, if any).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Survival</u>. The provisions of this Section shall survive resignation or replacement of the Administrative Agent, Collateral Agent, the Issuing Bank, the Swingline Lender or any Lender,

------

termination of the commitments hereunder and repayment, satisfaction and discharge of the loans and obligations hereunder.

Section 11.3 <u>Set-Off</u>. If an Event of Default shall have occurred and be continuing, each Lender, the Issuing Bank, and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, the Issuing Bank or any such Affiliate to or for the credit or the account of the Borrower or any other Credit Party against any and all of the obligations of the Borrower or such Credit Party now or hereafter existing under this Agreement or any other Credit Document to such Lender, the Issuing Bank or their respective Affiliates, irrespective of whether or not such Lender, the Issuing Bank or such Affiliate shall have made any demand under this Agreement or any other Credit Document and although such obligations of the Borrower or such Credit Party may be contingent or un-matured or are owed to a branch, office or Affiliate of such Lender or the Issuing Bank different from the branch or office holding such deposit or obligated on such indebtedness; <u>provided, that</u>, in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of <u>Section</u> <u>2.16</u> and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing Bank, and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender, the Issuing Bank and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, the Issuing Bank or their respective Affiliates may have. Each of the Lenders and the Issuing Bank agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application, <u>provided, that</u>, the failure to give such notice shall not affect the validity of such setoff and application.

Section 11.4 <u>Amendments and Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Required Lenders' Consent</u>. Subject to <u>clauses (b)</u> and <u>(c)</u> below, no amendment, modification, termination or waiver of any provision of the Credit Documents, or consent to any departure by any Credit Party therefrom, shall in any event be effective without the written concurrence of the Administrative Agent and the Required Lenders, <u>provided</u>, <u>that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each of the Fee Letter and any Auto Borrow Agreement may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitments, Loans and/or Letter of Credit Obligations of such Lender may not be increased or extended without the consent of such Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each Lender is entitled to vote as such Lender sees fit on any bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the provisions of Section 1126(c) of the Bankruptcy Code of the United States supersedes the unanimous consent provisions set forth herein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Required Lenders shall determine whether or not to allow any Credit Party to use cash collateral in the context of a bankruptcy or insolvency proceeding and such determination shall be binding on all of the Lenders.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Affected Lenders' Consent</u>. Without the written consent of each Lender (other than a Defaulting Lender except as provided in <u>clause (a)(ii</u>) above) that would be affected thereby (it being understood and agreed, for purposes of clarity, that all Lenders shall be deemed to be affected Lenders for purposes of any amendment, modification, termination, or consent described in <u>clauses (b)(v), (b)(vii</u>), <u>(b)(viii)</u> and <u>(b)(ix)</u> below), but subject to <u>Section</u> <u>3.1(a</u>), no amendment, modification, termination, or consent shall be effective if the effect thereof would be to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) extend the Revolving Commitment Termination Date, the DDTL Commitment Termination Date, or any Maturity Date, or otherwise postpone the scheduled date for the termination or reduction of any Commitment of a Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) waive, reduce the amount (or the amount payable in cash) of, or postpone or extend the time for payment (in cash or otherwise) of, any scheduled (including at maturity) payment or repayment (other than any mandatory prepayment) in respect of any Loan, Letter of Credit or other Obligation, whether of principal, interest, fees, reimbursement obligations or other amounts, or otherwise reduce the rate of interest applicable thereto; <u>provided, that</u>, only the consent of the Required Lenders shall be necessary to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) waive any imposition of the *Default Rate* pursuant to <u>Section</u> <u>2.9</u>, amend the definition of "*Default Rate*" in <u>Section</u> <u>1.1</u>, or otherwise waive any obligation of the Borrower to pay interest at the Default Rate; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) amend any Financial Covenant (or any defined term used therein) even if the effect of such amendment would be to reduce the rate of interest on any Loan or to reduce any fee payable hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) change the provisions of: (A) <u>Section 2.12</u>, <u>Section 2.14</u> or <u>Section 9.3</u> in any respect; or (B) <u>Section</u> <u>2.11</u> in any manner that would alter the pro rata sharing of payments, the *pro rata* reduction of Commitments, and/or the order of application of funds or proceeds required thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) extend the stated expiration date of any Letter of Credit beyond the Revolving Commitment Termination Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amend, modify, terminate, or waive any provision of this <u>clause (b</u>), any provision of the below <u>clause (c</u>), or any other provision of this Agreement that expressly provides that the consent of all Lenders, or of all affected Lenders, is required to amend, modify, terminate, or waive such provision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) amend the definitions of "*Required DDTL Lenders*", "*Required Lenders*" or "*Required Revolving Lenders*" in <u>Section</u> <u>1.1</u>, or otherwise change the percentage of the Total Credit Exposures (or any component(s) thereof) of all of the Lenders that is required for the Lenders, or any of them, to take any action hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) (A) release all, or substantially all, of the Guarantors from their respective obligations hereunder, or (B) limit the liability of such Guarantors under <u>Article 4</u> or under any other guaranty agreement Guaranteeing the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) release all, or substantially all, of the Collateral;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) consent to the assignment or transfer by the Borrower of any of its rights and obligations under any Credit Document, or otherwise to the release of the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) subordinate (or consent to the subordination of), in whole or in part, (A) any of the Liens in favor of the Collateral Agent, for the benefit of the holders of the Obligations, securing any or all of the Obligations to any Liens securing any Indebtedness, or (B) any of the Obligations in right of payment to any Indebtedness, in each case of the foregoing <u>clauses</u> <u>(b)(x)(A)</u> and <u>(b)(x)(B)</u>, other than as expressly permitted by this Agreement as in effect on the Effective Date with respect to Indebtedness of the type described in <u>Section</u> <u>8.1(e</u>) (as in effect on the Effective Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Consents</u>. No amendment, modification, termination or waiver of any provision of the Credit Documents, or consent to any departure by the Borrower or any other Credit Party therefrom, shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) increase any Commitment of any Lender over the amount thereof then in effect (or otherwise reinstate any previously terminated Commitment of any Lender) without the consent of such Lender; <u>provided</u>, <u>that</u>, no amendment, modification or waiver of any condition precedent, covenant, Default or Event of Default shall constitute an increase in any Commitment of any Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) amend, modify, terminate or waive any provision hereof relating to the Swingline Sublimit or the Swingline Loans without the consent of the Swingline Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) amend, modify, terminate or waive any obligation of Lenders relating to the purchase of participations in Letters of Credit as provided in <u>Section</u> <u>2.3(e</u>) without the written consent of the Administrative Agent and of the Issuing Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) amend, modify, terminate or waive any provision of this <u>Article 11</u> as the same applies to the Administrative Agent, or any other provision hereof as the same applies to the rights or obligations of the Administrative Agent, in each case, without the consent of the Administrative Agent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amend, modify, terminate or waive any condition precedent to the obligation of each Lender to fund its respective Commitment Percentage of any Credit Extension on any Credit Date set forth in <u>Section</u> <u>5.2</u>, without the consent of the Required Revolving Lenders (in the case of the making of a Revolving Loan or the issuing or extending of a Letter of Credit) or the Required DDTL Lenders (in the case of the making of an advance under the Delayed Draw Term Loan), as applicable (it being understood and agreed that the consent of the Required Lenders, in addition to the consent of the Required DDTL Lenders or the Required Revolving Lenders (as applicable), shall not be required for any such amendment, modification, termination or waiver).

Notwithstanding any of the foregoing to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) this Agreement may be amended: (I) to implement technical, administrative and/or mechanical changes pursuant to an Incremental Facility Agreement effected in accordance with <u>Section</u> <u>2.1(e)(ii</u>); (II) to effect Conforming Changes in accordance with <u>Section</u> <u>2.7(i</u>); and (III) in connection with the implementation of a Benchmark Replacement and/or any related Conforming Changes, all as provided in <u>Section</u> <u>3.1(g</u>);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Borrower and the other Credit Parties shall not be required for any amendment, modification or waiver of the provisions of <u>Article 10</u> (other than the provisions of <u>Section 10.6</u> or <u>Section 10.10</u>), so long as such amendment is not adverse to the interests of the Borrower and the other Credit Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the Credit Parties, the Administrative Agent and/or the Collateral Agent, without the consent of any Lender, may enter into any amendment, modification or waiver of any Credit Document, or enter into any new agreement or instrument, to effect the granting, perfection, protection, expansion or enhancement of any security interest in any Collateral or additional property to become Collateral for the benefit of the holders of the Obligations, or as required by local law to give effect to, or protect any security interest for the benefit of the holders of the Obligations, in any property or so that the security interests therein comply with Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the Agents and the Borrower may amend, modify or supplement this Agreement or any other Credit Document to cure or correct administrative or technical errors or omissions or any ambiguity, mistake, defect, inconsistency or obvious error, or to make any necessary or desirable administrative or technical change, and such amendment shall become effective without any further consent of any other party to such Credit Document, so long as such amendment, modification or supplement does not adversely affect the rights of any Lender or any other holder of the Obligations in any material respect, if the same is not objected to in writing by the Required Lenders within five (5) Business Days following receipt of notice thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) this Agreement may be amended and restated without the consent of any Lender (but with the consent of the Borrower and the Administrative Agent) if, upon giving effect to such amendment and restatement, such Lender shall no longer be a party to this Agreement (as so amended and restated), the Commitments of such Lender shall have terminated, such Lender shall have no other commitment or other obligation hereunder, and shall have been paid in full all principal, interest and other amounts owing to it, or accrued for its account, under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Execution of Amendments, etc</u>. The Administrative Agent may, but shall have no obligation to, with the concurrence of any Lender, execute amendments, modifications, waivers or consents on behalf of such Lender. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on any Credit Party in any case shall entitle any Credit Party to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver or consent effected in accordance with this <u>Section</u> <u>11.4</u> shall be binding upon the Administrative Agent, each Lender at the time outstanding, each future Lender and, if signed by the Borrower, on the Borrower.

Section 11.5 <u>Successors and Assigns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors and Assigns Generally</u>. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Credit Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to an assignee in accordance with the provisions of <u>clause (b</u>) below;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) by way of participation in accordance with the provisions of <u>clause (d</u>) below; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) by way of pledge or assignment of a security interest subject to the restrictions of <u>clause (e</u>) below (and any other attempted assignment or transfer by any party hereto shall be null and void).

Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in <u>clause (d</u>) below and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignments by Lenders</u>. Any Lender may, at any time, assign to one or more assignees (other than to any Disqualified Institution) all, or a portion, of its rights and obligations under this Agreement (including all, or a portion, of its Commitments, Loans and obligations hereunder at the time owing to it), <u>provided, that</u>, any such assignment shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Minimum Amounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in the case of an assignment of the entire remaining amount of the assigning Lender's Commitments and Loans at the time owing to it of the relevant Class or contemporaneous assignments to Approved Funds (that equal at least the amounts specified in <u>clause (b)(i)(B</u>) below in the aggregate) or, in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in any case not described in <u>clause (b)(i)(A</u>) above, the aggregate amount of the Commitment(s), and/or the aggregate outstanding principal balance of the Loan(s), of the relevant Class of the assigning Lender subject to such assignment (determined as of the date the Assignment Agreement evidencing such assignment tis delivered to the Administrative Agent or, if a "*Trade Date*" is specified in such Assignment Agreement, as of the Trade Date) shall not be less than (I) Two Million Dollars ($2,000,000), in the case of any assignment of Revolving Loans or Revolving Commitments, and (II) Five Million Dollars ($5,000,000), in the case of any assignment of Term Loans or Term Loan Commitments, unless (in any such case of the foregoing <u>clauses (b)(i)(B)(I</u>) or (<u>b)(i)(B)(II</u>)) each of the Administrative Agent and, so long as no Event of Default shall have occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld, conditioned or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Proportionate Amounts</u>. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Commitments and Loans assigned, except that this <u>clause (b)(ii</u>) shall not prohibit any Lender from assigning all, or a portion, of its rights and obligations on a non-pro rata basis as between its Revolving Commitment and/or Revolving Loans, on the one hand, and its Commitments in respect of Term Loans and/or its Term Loans, on the other the hand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Required Consents</u>. No consent shall be required for any assignment except to the extent required by <u>clause (b)(i)(B</u>) above and, in addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required, unless (I) an Event of Default shall have occurred

------

and is continuing at the time of such assignment, or (II) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; <u>provided, that</u>, the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Administrative Agent (such consent *not* to be unreasonably withheld or delayed) shall be required for assignments in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) commitments under revolving credit facilities and unfunded commitments under term loan facilities if such assignment is to a Person that is not a Lender with a commitment in respect of such facility, an Affiliate of such Lender or an Approved Fund with respect to such Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) a funded Term Loan to a Person who is *not* a Lender, an Affiliate of a Lender or an Approved Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the consent of the Issuing Bank (such consent *not* to be unreasonably withheld or delayed) shall be required for any assignment in respect of any Revolving Commitment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the consent of the Swingline Lender (such consent *not* to be unreasonably withheld or delayed) shall be required for any assignment in respect of any Revolving Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Assignment Agreement</u>. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment Agreement, together with a processing and recordation fee in the amount of Three Thousand Five-Hundred Dollars ($3,500), unless waived, in whole or in part by the Administrative Agent in its discretion. The assignee, if it is *not* a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Assignment to Certain Persons</u>. No such assignment shall be made to: (A) any Credit Party, any Subsidiary, any other Regulated Entity, or any Affiliate of any of the foregoing; (B) any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this <u>clause (b)(v)(B)</u>; or <u>(C)</u> a Disqualified Institution, <u>provided</u>, <u>that</u>, any assignment made to a Disqualified Institution in violation of this <u>clause (b)(v)(C</u>) shall *not* be void, but the provisions of <u>clause (f)(ii</u>) below may apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>No Assignment to Natural Persons</u>. No such assignment shall be made to a natural person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <u>Certain Additional Payments</u>. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or sub-participations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable *pro rata* share of Loans previously requested but *not* funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to: (x) pay and satisfy in full all

------

payment liabilities then owed by such Defaulting Lender to the Administrative Agent, the Issuing Bank, the Swingline Lender and each other Lender hereunder (and interest accrued thereon); and (y) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in Letters of Credit and Swingline Loans in accordance with its Revolving Commitment Percentage. Notwithstanding anything to the contrary in the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under Applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to <u>clause (c</u>) below, from and after the effective date specified in each Assignment Agreement, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment Agreement, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment Agreement, be released from its obligations under this Agreement (and, in the case of an Assignment Agreement covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of <u>Section</u> <u>2.16</u>, Section <u>2.17</u> and <u>Section</u> <u>11.2</u> with respect to facts and circumstances occurring prior to the effective date of such assignment; <u>provided, that,</u> except to the extent expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender. The Borrower will execute and deliver on request, at its own expense, a Note to the assignee evidencing the interests taken by way of assignment hereunder. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection (other than an assignment or transfer to a Disqualified Institution) shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with <u>clause (d</u>) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Register</u>. The Administrative Agent, acting *solely* for this purpose as an agent of the Borrower, shall maintain at one of its offices in the United States, a copy of each Assignment Agreement delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans and Obligations owing to, each Lender pursuant to the terms hereof from time to time (the "<u>*Register*</u>"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Participations</u>. Any Lender may at any time, without the consent of, or notice to, any Credit Party or the Administrative Agent, sell participations to any Person (other than a natural Person, a Credit Party, a Subsidiary, another Regulated Entity, another Affiliate of any of the foregoing, or a Disqualified Institution) (each, a "<u>*Participant*</u>") in all, or a portion, of such Lender's rights and/or obligations under this Agreement (including all, or a portion, of its Commitment and/or the Loans owing to it); <u>provided, that</u>, (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower, the Administrative Agent, the Issuing Bank and Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under <u>Section</u> <u>11.2(c</u>) with respect to any payments made by such Lender to its Participant(s).

------

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u>, <u>that</u>, such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in <u>clauses (b)</u> or <u>(c)</u> of <u>Section 11.4</u> that affects such Participant; <u>provided</u>, <u>further</u>, <u>that</u>, any such agreement or instrument shall require the applicable Participant to represent and warrant for the benefit of the Borrower and such Lender that such Participant is not a Disqualified Institution. The Borrower agrees that each Participant shall be entitled to the benefits of <u>Section 3.2</u>, <u>Section 3.1</u> and <u>Section</u> <u>3.3</u> (subject to the requirements and limitations therein, including the requirements under <u>Section</u><u> </u><u>3.3(f)</u> (it being understood that the documentation required under <u>Section</u> <u>3.3(f</u>) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to <u>clause (b</u>) above; <u>provided</u>, <u>that</u>, such Participant (A) agrees to be subject to the provisions of <u>Section</u><u> </u><u>2.17</u> and <u>Section</u> <u>3.4</u> as if it were an assignee under <u>clause (b)</u> below, and (B) shall *not* be entitled to receive any greater payment under <u>Section 3.2</u> or <u>Section</u> <u>3.3</u> with respect to any participation than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower's request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of <u>Section</u> <u>2.17</u> with respect to any Participant. To the extent permitted by Applicable Law, each Participant also shall be entitled to the benefits of <u>Section</u> <u>11.3</u> as though it were a Lender; <u>provided</u>, <u>that</u>, such Participant agrees to be subject to <u>Section</u> <u>2.14</u> as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Credit Documents (the "<u>*Participant Register*</u>"); <u>provided</u>, <u>that</u>, no Lender shall have any obligation to disclose all, or any portion, of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Credit Document) to any Person, except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103–1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certain Pledges</u>. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement, or any promissory notes evidencing its interests hereunder, to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this <u>Section</u> <u>11.5</u> shall *not* apply to any such pledge or assignment of a security interest; <u>provided</u>, <u>that</u>, no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Disqualified Institution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No assignment or participation shall be made to any Person that was a Disqualified Institution as of the date on which the assigning Lender entered into an Assignment Agreement or participation agreement, as applicable, with such Person (unless the Borrower has consented to such assignment to such entity, in which case, such entity will not be considered a Disqualified Institution for the purpose of such assignment).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If any assignment or participation is made to any Disqualified Institution without the Borrower's prior written consent in violation of <u>clause (f)(i</u>) above, the Borrower may, at its sole expense and effort, upon notice to the applicable Disqualified Institution, (A) terminate any Revolving Commitment of such Disqualified Institution and repay all Obligations of the Borrower owing to such Disqualified Institution in connection with such Revolving Commitment, and (B) in the case of an outstanding portion of any Term Loan held by such Disqualified Institution, prepay or purchase such portion of the Term Loans, in each case, plus accrued interest, fees and other amounts payable to such Disqualified Institution hereunder; <u>provided</u>, <u>that</u>, the Borrower may not use the proceeds of any Revolving Loans to repay outstanding Obligations owing to a Disqualified Institution pursuant to the foregoing <u>clauses (f)(ii)(A</u>) and (<u>f)(ii)(B</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary herein, Disqualified Institutions (x) will not have the right to receive information, reports or other materials provided to the Lenders by the Borrower, the Administrative Agent or any other Lender, attend or participate in meetings attended by the Lenders and the Administrative Agent or access any electronic site established for the Lenders or confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders, and (y) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) under, this Agreement or any other Credit Document, each Competitor will be deemed to have consented in the same proportion as the Lenders that are not Disqualified Institutions consented to such matter. The Administrative Agent shall have the right, and the Borrower hereby expressly authorizes the Administrative Agent to post the Disqualified Institution List on the Platform, including the portion of the Platform that is designated for "public side" Lenders and/or provide the Disqualified Institution List to each Lender requesting the same.

Section 11.6 <u>Independence of Covenants</u>. All covenants hereunder shall be given independent effect so that, if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

Section 11.7 <u>Survival of Representations, Warranties and Agreements</u>. All representations, warranties and agreements made herein shall survive the execution and delivery hereof and the making of any Credit Extension. Notwithstanding anything herein or implied by law to the contrary, the agreements of each Credit Party set forth in <u>Section</u> <u>3.1(c), Section</u> <u>3.2, Section</u> <u>3.3, Section</u> <u>11.2, Section</u> <u>11.3,</u> and <u>Section</u> <u>11.10, and the agreements of the Lenders and the Agents set forth in Section</u> <u>2.14, Section</u> <u>10.3</u> and <u>Section</u> <u>11.2(c</u>), shall survive the payment of the Loans, the cancellation, expiration or cash collateralization of the Letters of Credit, and the termination hereof.

Section 11.8 <u>No Waiver; Remedies Cumulative</u>. No failure or delay on the part of the Administrative Agent or any Lender in the exercise of any power, right or privilege hereunder or under any other Credit Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other power, right or privilege. The rights, powers and remedies given to the Administrative Agent and each Lender hereby are cumulative and shall be in addition to and independent of all rights, powers and remedies existing by virtue of any statute or rule of law or in any of the other Credit Documents, any Swap Agreements or any Treasury Management Agreements. Any forbearance or failure to exercise, and any delay in exercising, any right, power or

------

remedy hereunder shall not impair any such right, power or remedy or be construed to be a waiver thereof, nor shall it preclude the further exercise of any such right, power or remedy.

Section 11.9 <u>Marshalling; Payments Set Aside</u>. Neither any Agent nor any Lender shall be under any obligation to marshal any assets in favor of any Credit Party or any other Person or against or in payment of any or all of the Obligations. To the extent that any Credit Party makes a payment or payments to any Agent, the Issuing Bank, the Swingline Lender or the Lenders (or to any Agent on behalf of Lenders), or the Agents, the Issuing Bank or the Lenders enforce any security interests or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any Debtor Relief Law, any other state or federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred.

Section 11.10 <u>Severability</u>. In case any provision in or obligation hereunder or any Note or other Credit Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

Section 11.11 <u>Obligations Several; Independent Nature of Lenders' Rights</u>. The obligations of the Lenders hereunder are several and no Lender shall be responsible for the obligations or Revolving Commitment of any other Lender hereunder. Nothing contained herein or in any other Credit Document, and no action taken by the Lenders pursuant hereto or thereto, shall be deemed to constitute the Lenders as a partnership, an association, a joint venture or any other kind of entity. The amounts payable at any time hereunder to each Lender shall be a separate and independent debt, and, subject to <u>Section</u> <u>10.10(c</u>), each Lender shall be entitled to protect and enforce its rights arising under this Agreement and the other Credit Documents and it shall not be necessary for any other Lender to be joined as an additional party in any proceeding for such purpose.

Section 11.12 <u>Headings</u>. Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.

Section 11.13 <u>Applicable Laws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law</u>. This Agreement and the other Credit Documents and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of, or relating to this Agreement or any other Credit Document (except, as to any other Credit Document, as expressly set forth therein), and the transactions contemplated hereby and thereby, shall be construed in accordance with, and be governed by, the law of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Submission to Jurisdiction</u>. Each party hereto irrevocably and unconditionally submits, for itself and its Property, to the non-exclusive jurisdiction of the courts of the State of New York sitting in the Borough of Manhattan and of the United States District Court of the Southern District sitting in the Borough of Manhattan, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Credit Document, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by Applicable Law, in such Federal court. Each of the parties hereto agrees that a

------

final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or in any other Credit Document shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Agreement or any other Credit Document against any Credit Party or its properties in the courts of any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver of Venue</u>. Each party hereto irrevocably and unconditionally waives, to the fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Credit Document in any court referred to in <u>clause (b</u>) above. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Service of Process</u>. Each party hereto irrevocably consents to service of process in the manner provided for notices in <u>Section</u> <u>11.1</u>. Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by Applicable Law.

Section 11.14 <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO: (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER; AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

Section 11.15 <u>Confidentiality</u>. Each of the Agents, the Issuing Bank and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to its Affiliates and to its Related Parties (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent required or requested by any regulatory agency or authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to the extent required by Applicable Laws or regulations or by any subpoena or similar legal process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to any other party hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in connection with the exercise of any remedies hereunder or under any other Credit Document or any action or proceeding relating to this Agreement or any other Credit Document or the enforcement of rights hereunder or thereunder;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) subject to an agreement containing provisions substantially the same as those of this Section, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any assignee of or Participant in, or any prospective assignee of or Participant in, any rights and/or obligations of any Agent, the Issuing Bank or any Lender under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any actual or prospective new lenders invited to join this Agreement in connection with an increase and/or extension of any of the Loans and/or Commitments hereunder (whether pursuant to an Incremental Facility, by way of an amendment or an amendment and restatement hereof, or otherwise);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower or its obligations, this Agreement or payments hereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any bona fide credit insurer or reinsurer of, or otherwise engaged by, an Agent or Lender in connection with the provision of insurance, reinsurance or credit risk mitigation coverage under which payments are to be made, or may be made, by reference to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) on a confidential basis to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any rating agency in connection with rating any of the Credit Parties, Subsidiaries or other Regulated Entities, or any of the credit facilities provided for herein; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the CUSIP Service Bureau or any similar agency or organization in connection with the application, issuance, publishing and monitoring of CUSIP numbers or other market identifiers with respect to the credit facilities provided for herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) with the consent of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent such Information: (x) becomes publicly available other than as a result of a breach of this <u>Section</u> <u>11.15</u>; or (y) becomes available to the Administrative Agent, any Lender, the Issuing Bank or any of their respective Affiliates on a non-confidential basis from a source other than the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) for purposes of establishing a "due diligence" defense.

In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry, and service providers (including potential or actual credit insurers and re-insurers) to the Administrative Agent or any Lender in connection with the administration of this Agreement, the other Credit Documents, and the Commitments.

For purposes of this Section, "<u>*Information*</u>" shall mean all information received from any Credit Party, any Subsidiary or any other Regulated Entity relating to any Credit Party, any Subsidiary or any other Regulated Entity, or any of the respective businesses of any of the foregoing, other than any such information that is available to the Administrative Agent, any Lender or the Issuing Bank on a non-confidential basis prior to disclosure by such Credit Party, Subsidiary or other Regulated Entity; <u>provided</u>,

------

<u>that</u>, in the case of information received from any Credit Party, any Subsidiary or any other Regulated Entity after the Effective Date, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this <u>Section</u> <u>11.15</u> shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

Each of the Agents, the Issuing Bank and the Lenders acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Information may include material non-public information concerning any Credit Party, any Subsidiary and/or any other Regulated Entity, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) it has developed compliance procedures regarding the use of material non-public information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) it will handle such material non-public information in accordance with Applicable Law, including United States federal and state securities laws.

For the avoidance of doubt, nothing set forth in this <u>Section</u> <u>11.15</u> shall prohibit any individual from communicating or disclosing information (including any Information) regarding suspected violations of Applicable Law to a Governmental Authority or applicable self-regulatory authority.

Section 11.16 <u>Usury Savings Clause</u>. Notwithstanding any other provision herein to the contrary, the aggregate interest rate charged or agreed to be paid with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the nature of interest under Applicable Laws shall not exceed the Highest Lawful Rate. If the rate of interest (determined without regard to the preceding sentence) under this Agreement at any time exceeds the Highest Lawful Rate, the aggregate outstanding principal amount of all Loans shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect. In addition, if when the Loans made hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is less than the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect, then to the extent permitted by Applicable Law, the Borrower shall pay to the Administrative Agent an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding anything to the contrary in the foregoing, it is the intention of the Lenders and each of the Credit Parties to conform strictly to any applicable usury laws. Accordingly, if any Lender contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such Lender's option be applied to the aggregate outstanding principal amount of all Loans or be refunded to each of the applicable Credit Parties. In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Highest Lawful Rate, such Person may, to the extent permitted by Applicable Laws:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) characterize any payment that is not principal as an expense, fee, or premium rather than interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) exclude voluntary prepayments and the effects thereof; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest, throughout the contemplated term of the Obligations hereunder.

Section 11.17 <u>Electronic Execution; Counterparts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Electronic Execution</u>. Each of the parties hereto hereby agrees that: (i) the electronic signature of any party to this Agreement or to any other Credit Document shall be as valid as an original "*wet*" signature of such party thereto, and <u>further</u>, that such signature shall be effective to bind such party to this Agreement or to such other Credit Document, as applicable; and (ii) any electronically signed document (including, without limitation, this Agreement and each other Credit Document) shall be deemed to (A) be "*written*" or "*in writing*", (B) have been signed, (C) constitute a record established and maintained in the ordinary course of business, and (D) constitute an original written record when printed from electronic files. Such paper copies or "*printouts*", if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding, will be admissible as between the parties to the same extent, and under the same conditions, as other original business records created and maintained in documentary form. None of the parties hereto shall contest the admissibility of true and accurate copies of electronically signed documents on the basis of the best evidence rule or as not satisfying the business records exception to the hearsay rule. For purposes of this <u>Section 11.17</u>: (I) "*<u>electronic signature</u>*" shall mean a manually-signed original signature that is then transmitted by electronic means; (II) "<u>*transmitted* by electronic means</u>" shall mean sent in the form of a facsimile or sent via the internet as a ".pdf" (portable document format) or other replicating image attached to an e-mail message; and (III) "<u>*electronically signed document*</u>" shall mean a document transmitted by electronic means and containing, or to which there is affixed, an electronic signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Counterparts</u>. This Agreement and each other Credit Document may be executed by one (1) or more of the parties to this Agreement or such other Credit Document (as the case may be) on any number of separate counterparts, and all of said counterparts shall, taken together, be deemed to constitute one (1) and the same instrument. Delivery of an executed counterpart of a signature page to this Agreement, or any other Credit Document, by facsimile transmission or any other electronic mail in ".pdf" format, shall be as effective as delivery of a manually executed counterpart of this Agreement or such other Credit Document.

Section 11.18 <u>No Advisory of Fiduciary Relationship</u>. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Credit Document), each of the Credit Parties acknowledges and agrees, and acknowledges its Affiliates' understanding, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the arranging and other services regarding this Agreement provided by the Administrative Agent, are arm's-length commercial transactions between the Credit Parties, on the one hand, and the Administrative Agent, on the other hand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Credit Parties have consulted their own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each of the Credit Parties is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Credit Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 175

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Administrative Agent is and has been acting *solely* as a principal and, except as expressly agreed in writing by the relevant parties, has *not* been, is *not* and will *not* be acting as an advisor, agent or fiduciary, for any Credit Party or any of their Affiliates or any other Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Administrative Agent does *not* have any obligation to any Credit Party or any of their Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Credit Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Administrative Agent and its respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Credit Parties and their Affiliates, and the Administrative Agent does not have any obligation to disclose any of such interests to any Credit Party or its Affiliates.

To the fullest extent permitted by Applicable Law, each of the Credit Parties hereby waives and releases, any claims that it may have against the Administrative Agent with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

Section 11.19 <u>Integration; Effectiveness</u>. This Agreement and the other Credit Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Article 5, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.

Section 11.20 <u>USA PATRIOT Act</u>. Each Lender subject to the Patriot Act hereby notifies each of the Credit Parties that, pursuant to the requirements of the Patriot Act and U.S. beneficial ownership regulations relating to legal entity customers, it is required to obtain, verify and record information that identifies each of the Credit Parties, which information includes the name and address of each of the Credit Parties and other information that will allow such Lender to identify each of the Credit Parties in accordance with the Patriot Act and such beneficial ownership regulations.

Section 11.21 <u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>. Notwithstanding anything to the contrary in any Credit Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender that is an Affected Financial Institution arising under any Credit Document, to the extent that such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority, and each party hereto agrees and consents to, and acknowledges and agrees to be bound by: (a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder that may be payable to it by any Lender that is an Affected Financial Institution; and (b) the effects of any Bail-In Action on any such liability, including, if applicable, (i) a reduction, in full or in part, or cancellation of any such liability, (ii) a conversion of all, or a portion, of such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to, or otherwise conferred on, it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Credit Document, or (iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

------

Section 11.22 <u>Certain ERISA Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that at least one of the following is and will be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender is not using "plan assets" (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments or this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84–14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95–60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90–1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91–38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96–23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84–14);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Revolving Commitments and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84–14; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84–14 are satisfied with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, unless either (1) <u>clause (a)(i</u>) above is true with respect to a Lender, or (2) a Lender has provided another representation, warranty and covenant as provided in <u>clause (a)(iv</u>) above, such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that the Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender's entrance into,

------

participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Credit Document or any documents related hereto or thereto).

Section 11.23 <u>Acknowledgment Regarding any Supported QFCs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent that the Credit Documents provide support, through a guarantee or otherwise, for any Swap Obligation or any other agreement or instrument that is a QFC (such support, "*<u>QFC Credit Support</u>*"; and each such QFC, a "*<u>Supported QFC</u>*"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "<u>*U.S. Special Resolution Regimes*</u>") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Credit Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that a Covered Entity that is a party to a Supported QFC (each, a "<u>*Covered Party*</u>") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the Laws of the United States or a state of the United States. In the event that a Covered Party, or a BHC Act Affiliate of a Covered Party, becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Credit Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Credit Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

Section 11.24 <u>Non-Business Day Performance</u>. If any covenant, duty, obligation or other agreement of any Credit Party, Subsidiary or other Regulated Entity under this Agreement or any other Credit Document is required, pursuant to the terms hereof or thereof (but for this <u>Section</u> <u>11.24</u>), to be performed on, or by no later than, a date that is not a Business Day (including, subject to <u>Section</u> <u>2.13</u>, the making of any payment required to be made by any Credit Party, Subsidiary or other Regulated Entity under this Agreement or any other Credit Document), then such covenant, duty, obligation or other agreement shall instead be required to be performed by such Credit Party, Subsidiary or other Regulated Entity on, or by no later than, the date that is the next succeeding Business Day after such non-Business Day.

Section 11.25 <u>Amendment and Restatement; Waiver of Breakage Costs; Reallocation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendment and Restatement</u>. The parties hereto agree that, on the Effective Date, the following transactions shall be deemed to occur automatically, without further action by any party hereto:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Existing Credit Agreement shall be deemed to be amended and restated in its entirety pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all obligations of the Credit Parties under the Existing Credit Agreement that are outstanding as of the Effective Date shall, in all respects, be continuing, and shall be deemed to be Obligations outstanding hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each of the Guarantees made pursuant to the Existing Credit Agreement to Regions (as successor in interest to the Existing Lenders) shall remain in full force and effect with respect to the Obligations and are hereby reaffirmed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Collateral Documents, and the Liens created thereunder in favor of Regions (as successor in interest to the Existing Lenders), shall remain in full force and effect with respect to the Obligations and are hereby reaffirmed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all references in the other Credit Documents to the Existing Credit Agreement shall be deemed to refer, without further amendment, restatement, amendment and restatement, supplement or other modification thereof, to this singular Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Waiver of Breakage Costs</u>. To the extent that any loans are outstanding under the Existing Credit Agreement as of the date that is immediately prior to the Effective Date, the Borrower shall be required to make any prepayment(s) and/or adjustment(s) on, or with respect to, such loans as are necessary (in the determination of the Administrative Agent) to give effect to the Commitments, and pro rata share of each Class of Loans of the Lenders, as set forth on <u>Appendix A</u>. The Borrower, in consultation with the Administrative Agent, has endeavored to manage the allocation of Commitments and Loans, and the selection of Interest Period(s) (if applicable) with respect to any outstanding Loan(s), in such a manner as to minimize break-funding costs. However, notwithstanding the foregoing endeavors, such prepayment(s) of such Loans under this Agreement will likely result in the incurrence of breakage costs. Notwithstanding anything to the contrary in <u>Section</u> <u>3.1(c</u>), each of the Lenders party hereto that was party to the Existing Credit Agreement hereby waives its right to receive compensation or reimbursement for any such breakage costs: (i) in connection with the reallocation of Commitments, and its pro rata share of each Class of Loans, on the Effective Date; and (ii) in connection with any resetting of the Interest Period(s) (if applicable) for any Loan(s) outstanding as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Reallocation</u>. The Agents, the Credit Parties, and the Lenders hereby acknowledge and agree that the Commitment amounts of each Lender, as set forth on <u>Appendix A</u>, are the Commitment amounts of such Lender as of the Effective Date, with the reallocation of Loans outstanding under the Commitments of the Lenders as they existed immediately prior to the Effective Date having been made per instructions from the Administrative Agent, and neither any Assignment Agreement, nor any other action of any Person, is, or shall be, required in order to give effect to such Commitments as set forth on <u>Appendix A</u>.

*[Remainder of Page Intentionally Left Blank; Signature Pages Follow]* 

------

IN WITNESS WHEREOF, each of the parties hereto have caused a counterpart of this Agreement to be duly executed and delivered by its below duly authorized officer as of the day and year first written above.

---

| | | |
|:---|:---|:---|
|  BORROWER: | **SAFEPOINT HOLDINGS, INC.,**<br> a Florida corporation | **SAFEPOINT HOLDINGS, INC.,**<br> a Florida corporation |
|  | **By:** | /s/ Steven Hoffman |
|  | Name: Steven Hoffman | Name: Steven Hoffman |
|  | Title: Chief Financial Officer | Title: Chief Financial Officer |

---

---

| | | |
|:---|:---|:---|
|  GUARANTORS: | **CAJUN UNDERWRITERS HOLDINGS LLC,**<br> a Delaware limited liability company<br> **CAJUN UNDERWRITERS RISK MANAGEMENT, LLC,**<br> a Delaware limited liability company<br> **INSIGHT RISK SOLUTIONS, LLC,**<br> a Florida limited liability company<br> **MANATEE RISK MANAGEMENT, LLC,**<br> a Florida limited liability company<br> **SAFEPOINT MGA, LLC,**<br> a Florida limited liability company | **CAJUN UNDERWRITERS HOLDINGS LLC,**<br> a Delaware limited liability company<br> **CAJUN UNDERWRITERS RISK MANAGEMENT, LLC,**<br> a Delaware limited liability company<br> **INSIGHT RISK SOLUTIONS, LLC,**<br> a Florida limited liability company<br> **MANATEE RISK MANAGEMENT, LLC,**<br> a Florida limited liability company<br> **SAFEPOINT MGA, LLC,**<br> a Florida limited liability company |
|  | **By:** | /s/ Steven Hoffman |
|  | Name: Steven Hoffman | Name: Steven Hoffman |
|  | Title: Chief Financial Officer | Title: Chief Financial Officer |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | | |
|:---|:---|:---|
|  ADMINISTRATIVE AGENT<br> AND COLLATERAL AGENT: | **REGIONS BANK,**<br> as the Administrative Agent and the Collateral Agent | **REGIONS BANK,**<br> as the Administrative Agent and the Collateral Agent |
|  | By: | /s/ Jon McRae |
|  | Name: Jon McRae | Name: Jon McRae |
|  | Title: Director | Title: Director |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | | |
|:---|:---|:---|
|  LENDERS: | **REGIONS BANK,**<br> as the Issuing Bank, the Swingline Lender, and a Lender | **REGIONS BANK,**<br> as the Issuing Bank, the Swingline Lender, and a Lender |
|  | By: | /s/ Jon McRae |
|  | Name: Jon McRae | Name: Jon McRae |
|  | Title: Director | Title: Director |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **BANK OZK,**<br> as a Lender | **BANK OZK,**<br> as a Lender |
| By: | /s/ Kayley Ghoss |
|  Name: Kayley Ghoss | Name: Kayley Ghoss |
| Title: Director | Title: Director |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
|  **FLAGSTAR BANK, N.A.,**<br> as a Lender | **FLAGSTAR BANK, N.A.,**<br> as a Lender |
| By: | /s/ Maria Totin |
|  Name: Maria Totin | Name: Maria Totin |
| Title: Senior Vice President | Title: Senior Vice President |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **THE HUNTINGTON NATIONAL BANK**, | **THE HUNTINGTON NATIONAL BANK**, |
| as a Lender | as a Lender |
| By: | /s/ Austin G. Love |
| Name: Austin G. Love | Name: Austin G. Love |
| Title: SVP, Managing Director | Title: SVP, Managing Director |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
|  **KEYBANK NATIONAL ASSOCIATION,** | **KEYBANK NATIONAL ASSOCIATION,** |
|  as a Lender | as a Lender |
| By: | /s/ Amra Rausche |
|  Name: Amra Rausche | Name: Amra Rausche |
| Title: Senior Vice President | Title: Senior Vice President |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
|  **PINNACLE BANK,** A TENNESSEE STATE-CHARTERED BANK D/B/A SYNOVUS BANK, as a Lender | **PINNACLE BANK,** A TENNESSEE STATE-CHARTERED BANK D/B/A SYNOVUS BANK, as a Lender |
|  By: | /s/ Ricardo Escobedo |
|  Name: Ricardo Escobedo | Name: Ricardo Escobedo |
|  Title: Director | Title: Director |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
|  **TEXAS CAPITAL BANK,** | **TEXAS CAPITAL BANK,** |
|  as a Lender | as a Lender |
| By: | /s/ Ben Beugelsdijk |
|  Name: Ben Beugelsdijk | Name: Ben Beugelsdijk |
|  Title: Vice President | Title: Vice President |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **CIBC BANK USA,** | **CIBC BANK USA,** |
|  as a Lender | as a Lender |
| By: | /s/ Daniel Poncer |
|  Name: | Daniel Poncer |
|  Title: | Commercial Banking Officer |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
| **CITIZENS BANK, N.A.,** | **CITIZENS BANK, N.A.,** |
| as a Second Amendment Joining Lender and as a Lender | as a Second Amendment Joining Lender and as a Lender |
| By: | /s/ Donald A. Wright |
|  Name: | Donald A. Wright |
|  Title: | SVP |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
|  **EAST WEST BANK,** | **EAST WEST BANK,** |
|  as a Lender | as a Lender |
| By: | /s/ Giancarlo Salinas |
|  Name: | Giancarlo Salinas |
|  Title: | FVP |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
|  **TRUIST BANK,** | **TRUIST BANK,** |
|  as a Lender | as a Lender |
|  By: | /s/ Madison Waterfield |
|  Name: Madison Waterfield | Name: Madison Waterfield |
|  Title: Director | Title: Director |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
|  **TRUSTMARK BANK,** | **TRUSTMARK BANK,** |
|  as a Lender | as a Lender |
|  By: | /s/ James R.Pryor |
|  Name: James R.Pryor | Name: James R.Pryor |
|  Title: Senior Vice President | Title: Senior Vice President |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
|  **CTBC BANK CORP (U.S.A.),** | **CTBC BANK CORP (U.S.A.),** |
|  as a Lender | as a Lender |
|  By: | /s/ Sean Walker |
|  Name: Sean Walker | Name: Sean Walker |
|  Title: SVP & Team Leader | Title: SVP & Team Leader |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
|  **DEUTSCHE BANK AG NEW YORK BRANCH,** | **DEUTSCHE BANK AG NEW YORK BRANCH,** |
|  as a Lender | as a Lender |
| By: | /s/ Marko Lukin |
| Name: | Marko Lukin |
| Title: | Director |
| By: | /s/ Alison Lugo |
| Name: | Alison Lugo |
| Title: | Vice President |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
|  **MORGAN STANLEY SENIOR FUNDING, INC.**, as a Lender | **MORGAN STANLEY SENIOR FUNDING, INC.**, as a Lender |
| By: | /s/ Michael King |
| Name: Michael King | Name: Michael King |
| Title: Vice President | Title: Vice President |

---

[*Signature Pages Continue*]

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

---

| | |
|:---|:---|
|  **LAKE FOREST BANK & TRUST COMPANY, NATIONAL ASSOCIATION** (A SUBSIDIARY OF WINTRUST FINANCIAL CORPORATION), as a Lender | **LAKE FOREST BANK & TRUST COMPANY, NATIONAL ASSOCIATION** (A SUBSIDIARY OF WINTRUST FINANCIAL CORPORATION), as a Lender |
| By: | /s/ Shane Bryant |
| Name: | Shane Bryant |
| Title: | Director |

---

Signature Page to Amended and Restated Credit Agreement (Safepoint Holdings, Inc.)

------

**<u>Appendix A-C</u>**

[On file with the Administrative Agent]

------

**<u>Schedules 6.1-8.6</u>**

[On file with the Administrative Agent]

------

**<u>Exhibits 1.1-11.5</u>**

[On file with the Administrative Agent]

## Exhibit 4.6

**Exhibit 4.6** 

CLASS A SUBORDINATED SURPLUS DEBENTURE

This Subordinated Surplus Debenture executed this 15<sup>th</sup> day of June, 2022 by and between Cajun Underwriters Reciprocal Exchange, a Louisiana reciprocal insurance exchange ("<u>Borrower</u>") and Safepoint Insurance Company, a Florida insurance company ("<u>Lender</u>"), together referred to as "the parties".

It is deemed to be in the best interest of Borrower to increase its surplus as to policyholders, enabling it to continue or expand to transact the business of insurance in accordance with the Louisiana Insurance Code (the "<u>Code</u>") and requirements of the Louisiana Department (the "<u>Department</u>") of Insurance. Lender hereby indicates its willingness to contribute to Borrower acceptable funds to accomplish the purpose as set forth in this Debenture, in the amount, on the terms, and subject to the conditions set forth herein.

Pursuant to and in compliance with the Code, approval of the Department has been obtained to this agreement, for such contribution to surplus, and a Board Resolution has been issued by the Board of Directors of Borrower, as evidenced by copy of resolution attached.

For and in consideration of the parties' mutual agreements as set forth herein, Lender hereby makes a contribution to Borrower's surplus of $6,000,000.00 and Borrower hereby accepts said contribution to surplus.

This Debenture is subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amount.</u> The contribution to surplus in the amount of $6,000,000.00 is made in the form of cash or cash
equivalents. These assets have been be approved by the Department and found to be acceptable assets pursuant to Subpart B-1, Part III, Chapter 2 of the Code. Legal title to the contributed assets shall be
registered in the name of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Interest Rate and Debenture Repayment.</u> Said sum of money shall bear interest from the date of
contribution at the rate of 8% per annum on the unpaid principal balance. Accrued interest shall be payable annually, commencing on July 1, 2023, and continuing on July 1 of each year thereafter, said repayment subject to first having been
approved by the Department. The principal sum of this Debenture and any unpaid interest thereon shall be due and payable in full under this Debenture on December 31, 2042, subject to approval by the Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Repayment and Limitations.</u> Borrower shall not make any principal or interest payment in respect to this
Debenture unless such payment is approved in advance by the Department. Principal payments will be made pari-passu to all investors of this Debenture class. Borrower shall not make any principal or interest payment in respect to this Debenture
except out of surplus, excluding capital, and only if Borrower is in compliance with the Code. Payment of this Debenture will not be approved if such payment would cause Borrower to be in violation of any part of the Code. This Debenture shall not
remain unpaid after such time as the original intent referenced above has been achieved or is no longer applicable unless approval for repayment of Debenture has not been granted by the Department.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Financial Statement Disclosure.</u> Said unpaid principal of this Debenture shall not form a part of the
legal or statutory liabilities of Borrower. This amount shall be reported as surplus. Accrued and unpaid interest approved by the Department shall be reported as a legal and statutory liability of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Priority.</u> In the event of reorganization, dissolution, 100% reinsurance or liquidation of Borrower after
the retirement of all its outstanding obligations other than Subordinated Debentures, the holders of Subordinated Debentures remaining unpaid shall be entitled to preferential right in remaining assets of Borrower equal to the unpaid principal
balance, plus accrued interest, before any distribution of such assets to shareholders or other owners pursuant to La. Stat. Ann. § 22:2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Subordination</u>. This Debenture is subordinate to all subscriber policy claims, subordinate to claimant
and beneficiary claims, and subordinate to all other classes of credits other than the Debenture holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. No modification or amendment may be made with respect to this Debenture without prior written approval of the
Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. This Debenture contains the entire agreement between the above referenced parties. There are no other addendums
or agreements with any other party which form a part of this contract.

This Debenture is transferable only by assignment on the books of Lender upon surrender of this Debenture properly assigned. The reissued Debenture must be submitted to the Commissioner of the Department and is subject to all the terms, conditions, and limitations herein contained.

Signature page follows

------

![LOGO](g73198dsp003.jpg)

## Exhibit 4.7

**Exhibit 4.7** 

**REASSIGNMENT OF CLASS A SUBORDINATED SURPLUS DEBENTURE** 

Pursuant to the Investment Agreement dated August 31, 2023, the undersigned Class A Surplus Note Debenture for $6,000,000 originally executed on June 15, 2022, between ClinchPoint Holdings and Cajun Underwriters Reciprocal Exchange is hereby reassigned to Safepoint Insurance Company.

No changes or amendments are being made to the underlying debenture other than Safepoint Insurance Company is now the holder of said debenture.

Duly executed signatures are contained in the Investment Agreement, which is attached hereto.

------

CLASS A SUBORDINATED SURPLUS DEBENTURE

This Subordinated Surplus Debenture executed this 15<sup>th</sup> day of June, 2022 by and between Cajun Underwriters Reciprocal Exchange, a Louisiana reciprocal insurance exchange ("<u>Borrower</u>") and Clinchpoint Holdings, LLC, a South Dakota limited liability company ("<u>Lender</u>"), together referred to as "the parties".

It is deemed to be in the best interest of Borrower to increase its surplus as to policyholders, enabling it to continue or expand to transact the business of insurance in accordance with the Louisiana Insurance Code (the "Code") and requirements of the Louisiana Department (the "Department") of Insurance. Lender hereby indicates its willingness to contribute to Borrower acceptable funds to accomplish the purpose as set forth in this Debenture, in the amount, on the terms, and subject to the conditions set forth herein.

Pursuant to and in compliance with the Code, approval of the Department has been obtained to this agreement, for such contribution to surplus, and a Board Resolution has been issued by the Board of Directors of Borrower, as evidenced by copy of resolution attached.

For and in consideration of the parties' mutual agreements as set forth herein, Lender hereby makes a contribution to Borrower's surplus of $6,000,000.00 and Borrower hereby accepts said contribution to surplus.

This Debenture is subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amount</u>. The contribution to surplus in the amount of $6,000,000.00 is made in the form of cash or cash
equivalents. These assets have been be approved by the Department and found to be acceptable assets pursuant to Subpart B-1, Part III, Chapter 2 of the Code. Legal title to the contributed assets shall be
registered in the name of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Interest Rate and Debenture Repayment</u>. Said sum of money shall bear interest from the date of
contribution at the rate of 8% per annum on the unpaid principal balance. Accrued interest shall be payable annually, commencing on July 1, 2023, and continuing on July 1 of each year thereafter, said repayment subject to first having been
approved by the Department. The principal sum of this Debenture and any unpaid interest thereon shall be due and payable in full under this Debenture on December 31, 2042, subject to approval by the Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Repayment and Limitations</u>. Borrower shall not make any principal or interest payment in respect to this
Debenture unless such payment is approved in advance by the Department. Principal payments will be made pari-passu to all investors of this Debenture class. Borrower shall not make any principal or interest payment in respect to this Debenture
except out of surplus, excluding capital, and only if Borrower is in compliance with the Code. Payment of this Debenture will not be approved if such payment would cause Borrower to be in violation of any part of the Code. This Debenture shall not
remain unpaid after such time as the original intent referenced above has been achieved or is no longer applicable unless approval for repayment of Debenture has not been granted by the Department.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Financial Statement Disclosure</u>. Said unpaid principal of this Debenture shall not form a part of the
legal or statutory liabilities of Borrower. This amount shall be reported as surplus. Accrued and unpaid interest approved by the Department shall be reported as a legal and statutory liability of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Priority</u>. In the event of reorganization, dissolution, 100% reinsurance or liquidation of Borrower after
the retirement of all its outstanding obligations other than Subordinated Debentures, the holders of Subordinated Debentures remaining unpaid shall be entitled to preferential right in remaining assets of Borrower equal to the unpaid principal
balance, plus accrued interest, before any distribution of such assets to shareholders or other owners pursuant to La. Stat. Ann.§ 22:2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Subordination</u>. This Debenture is subordinate to all subscriber policy claims, subordinate to claimant
and beneficiary claims, and subordinate to all other classes of credits other than the Debenture holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. No modification or amendment may be made with respect to this Debenture without prior written approval of the
Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. This Debenture contains the entire agreement between the above referenced parties. There are no other addendums
or agreements with any other party which form a part of this contract.

This Debenture is transferable only by assignment on the books of Lender upon surrender of this Debenture properly assigned. The reissued Debenture must be submitted to the Commissioner of the Department and is subject to all the terms, conditions, and limitations herein contained.

Signature page follows

------

![LOGO](g73198dsp007.jpg)

------

**INVESTMENT AGREEMENT** 

**BY AND BETWEEN** 

**SAFEPOINT HOLDINGS, INC.** 

**AND** 

**CLINCHPOINT HOLDINGS, LLC** 

**August 31, 2023** 

------

**INVESTMENT AGREEMENT** 

This **Investment Agreement** ("***Agreement***"), dated as of August 31, 2023, is entered into by and between Safepoint Holdings, Inc., a corporation organized and existing under the laws of the State of Florida ("***Safepoint***" or the "***Company***) and **Clinchpoint Holdings, LLC** a limited liability company organized and existing under the laws of the State of South Dakota ("***Clinchpoint***" ****or ***Investor***") (collectively ("***the Parties***")*.***

**WHEREAS**, currently, **Safepoint** and **Clinchpoint** each have a fifty percent (50%) interest in Cajun Underwriters Holdings, LLC, a limited liability company organized and existing under the laws of the State of Delaware ("***CU Holdings");***

**WHEREAS**, **Clinchpoint** desires to invest in Safepoint by means of selling its fifty percent (50%) interest in CU Holdings to Safepoint and transferring its Class A Surplus Subordinated Debenture of Cajun Underwriters Reciprocal Exchange in the amount of six million dollars ($6,000,000) to Safepoint in exchange for a twenty percent (20%) interest in Safepoint;

**NOW THEREFORE**, in consideration of the foregoing recitals and of the mutual covenants, agreements, undertakings, representations and warranties contained herein, the parties hereby agree as follows:

**ARTICLE 1. EXCHANGE OF INTERESTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1. Transfer of Interests:** Subject to the terms and conditions of this Agreement, Safepoint agrees to transfer and issue twenty percent (20%) of the fully diluted shares of Safepoint to Clinchpoint as reflected in Exhibit A to this Agreement.

**ARTICLE 2. CONSIDERATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1. Monetary Consideration:** In addition to the exchange of interests described in Section 1, Clinchpoint agrees to transfer and convey its Class A Surplus Subordinated Debenture of Cajun Underwriters Reciprocal Exchange in the amount of six million dollars ($6,000,000) to Safepoint. A copy of the Debenture is attached as Exhibit B to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2. Board of Directors Representation.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Board Seats**: As part of the consideration for the transfer of interests described in Section 1,
Clinchpoint shall be entitled to appoint three (3) individuals to the Board of Directors of Safepoint and shall have the same rights and responsibilities of other board members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Appointment Process**: Clinchpoint shall have the right to nominate candidates for the three
(3) board seats as outlined in Section 2.2(a). The nominees shall be subject to the approval of the board of directors of Safepoint in accordance with Safepoint's bylaws and corporate governance practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Compensation**. The appointed representatives of Clinchpoint shall be entitled to receive compensation for
services rendered as a member of the Board. The compensation shall be an annual payment of $100,000 payable pursuant to Safepoint's customary procedures for the payment of Board fees.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Term and Removal**: The appointed representatives of Clinchpoint shall serve for a term as determined by
the Bylaws of Safepoint. Clinchpoint shall have the right to remove and replace its appointed representatives withprior written notice to Safepoint.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Information Sharing**. Safepoint shall provide Clinchpoint's appointed representatives with relevant
and necessary information to effectively perform their duties as board members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Confidentiality and Fiduciary Duties**: the appointed representatives of Clinchpoint shall adhere to the
same confidentiality and fiduciary duties as other board members of Safepoint.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Regulatory Approval**. All board appointments, equity interest transfers, and surplus note sale are
subject to and contingent upon regulatory approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The parties agree to act in good faith to ensure the proper implementation of this clause, including but not
limited to amending the articles of incorporation and the bylaws to incorporate Clinchpoint's right to elect three (3) directors to the board of Safepoint.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3 Dividends.** As part of the consideration for the transfer of interests, Safepoint agrees to distribute dividends to Clinchpoint as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Exhibit C illustrates the Dividend Policy as agreed upon by Safepoint and ClinchPoint. The Policy will be
ratified by the Board of Directors of Safepoint.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Dividends shall be payable pursuant to Safepoint's Dividend Policy as implemented by the Board, attached
as Exhibit C to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The parties agree to act in good faith to ensure the proper implementation of this clause, including but not
limited to amending the articles of incorporation and bylaws to incorporate the Dividend Plan.

**ARTICLE 3. REPRESENTATIONS AND WARRANTIES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1. Safepoint's Representations and Warranties:** The Chief Executive Officer and Chief Financial Officer of Safepoint represent and warrant that they have no knowledge of any fraudulent activity, misrepresentations, or any other material adverse information related to the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2. Sophisticated Investor Acknowledgement:** The parties hereto acknowledge and agree that each party is a sophisticated investor, knowledgeable and experienced in business matters, and fully capable of evaluating the risks and benefits of the transaction contemplated by this agreement. Each party hereby waives any right to assert a claim based on a lack of understanding or knowledge regarding the terms, conditions, or risks associated with the transaction.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3. Assumption of Risks**: Each party acknowledges and accepts that they have conducted their own due diligence and investigation of the transaction, and that they are entering into this agreement with full understanding of the potential risks and rewards. Each party assumes the risk of any adverse consequences that may arise from the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4. No Reliance:** Each party acknowledges that they have not relied upon any representations, warranties, or statements, whether written or oral, other than those expressly set forth in this agreement. No party shall have any claim against the other party based on any alleged misrepresentation or omission, except to the extent expressly provided for in this agreement.

**ARTICLE 4. GOVERNING LAW AND JURISDICTION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1. Governing Law:** this agreement shall be governed by and construed in accordance with the laws of the State of Florida, without regard to its conflict of law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2. Jurisdiction**: Any legal action or proceeding arising out of or relating to this agreement shall be subject to the exclusive jurisdiction of the courts of the State of Florida, and the parties hereby consent to the personal jurisdiction of such courts.

**ARTICLE 5. REGULATORY APPROVAL** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1. Regulatory Approval**. This Agreement is subject to the condition that all required regulatory approvals and clearances, including but not limited to approvals from governmental authorities, including but not limited to the Florida Office of Insurance Regulation and the Louisiana Department of Insurance, and any other regulatory body, shall be obtained prior to the closing of the transaction. Each party shall use commercially reasonable efforts to promptly file all necessary applications, notifications, and submissions and cooperate in good faith to secure such approvals. In the event the required regulatory approval is not obtained, this Agreement shall be deemed terminated and neither party shall have any further liabilities or obligations hereunder.

**ARTICLE 6. MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1. Counterparts:** This agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2. Amendment:** This agreement may not be amended or modified except in writing and signed by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3. Entire Agreement:** This document constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings or agreements, whether oral or written.

The parties have executed this Investment Agreement as of the date first above written.

------

---

| | |
|:---|:---|
|  **SAFEPOINT HOLDINGS, INC.** | **SAFEPOINT HOLDINGS, INC.** |
| By: | /s/ David Flitman |
| Name: | David Flitman |
| Title: | President & CEO |
| By: | /s/ Steven Hoffman |
| Name: | Steven Hoffman |
| Title: | CFO |

---

------

---

| | |
|:---|:---|
| **CLINCHPOINT HOLDINGS,LLC** | **CLINCHPOINT HOLDINGS,LLC** |
| By: | /s/ Robert J. Arowood |
| Name: | Robert J. Arowood |
| Title: | Member |
| By: | /s/ William M. Arowood |
| Name: | William M. Arowood |
| Title: | Member |
| By: | /s/ Timothy B. Chesson |
| Name: | Timothy B. Chesson |
| Title: | Member |

---

------

**EXHIBIT A** 

**<u>Common Stock Outstanding as of Date of Close:</u>**

**Safepoint Holdings Ownership- Common Shares** 

**Pro-forma 8/31/2023 Post Close** 

---

| | | | |
|:---|:---|:---|:---|
| **Shareholder** | **Shares** | **%** | **Status** |
|  **ClinchPoint Holdings, LLC** | **254159** | **20.0%** | **Vested** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; David Flitman | 113228 | 8.9% | vested |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; David Flitman | 300000 | 23.6% | Unvested |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Flitman | 413228 | 32.5% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Steve Hoffman | 30, 652 | 2.4% | vested |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Steve Hoffman | 125000 | 9.8% | Unvested |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Hoffman | 155652 | 12.2% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nancy Baily | 13000 | 1.0% | vested |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; John Burns | 13000 | 1.0% | Vested |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Don Rhomberg | 7, 332 | 0.6% | vested |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wayne Matthews | 4000 | 0.3% | vested |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3 Employees | 41425 | 3.3% | vested |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24 Employees | 369000 | 29.0% | Unvested |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Totals** | **1270796** | **100.0%** |  |
| Note: David Flitman, Jennifer Cotugno and Steve Hoffman can vote the unvested shares as a committee. Once vested, voting right revert to the individual holders. | Note: David Flitman, Jennifer Cotugno and Steve Hoffman can vote the unvested shares as a committee. Once vested, voting right revert to the individual holders. | Note: David Flitman, Jennifer Cotugno and Steve Hoffman can vote the unvested shares as a committee. Once vested, voting right revert to the individual holders. | Note: David Flitman, Jennifer Cotugno and Steve Hoffman can vote the unvested shares as a committee. Once vested, voting right revert to the individual holders. |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Unvested Shares | 794000 | 62.5% |  |

---

------

**CLASS A SUBORDINATED SURPLUS DEBENTURE** 

This Subordinated Surplus Debenture executed this 15<sup>th</sup> day of June, 2022 by and between Cajun Underwriters Reciprocal Exchange, a Louisiana reciprocal insurance exchange ("<u>Borrower</u>") and Clinchpoint Holdings, LLC, a South Dakota limited liability company ("<u>Lender</u>"), together referred to as "the parties".

It is deemed to be in the best interest of Borrower to increase its surplus as to policyholders, enabling it to continue or expand to transact the business of insurance in accordance with the Louisiana Insurance Code (the "<u>Code</u>") and requirements of the Louisiana Department (the "<u>Department</u>") of Insurance. Lender hereby indicates its willingness to contribute to Borrower acceptable funds to accomplish the purpose as set forth in this Debenture, in the amount, on the tenns, and subject to the conditions set forth herein.

Pursuant to and in compliance with the Code, approval of the Department has been obtained to this agreement, for such contribution to surplus, and a Board Resolution has been issued by the Board of Directors of Borrower, as evidenced by copy of resolution attached.

For and in consideration of the parties' mutual agreements as set forth herein, Lender hereby makes a contribution to Borrower's surplus of $6,000,000.00 and Borrower hereby accepts said contribution to surplus.

This Debenture is subject to the following tenns and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amount</u>. The contribution to surplus in the amount of $6,000,000.00 is made in the form of cash or cash
equivalents. These assets have been be approved by the Department and found to be acceptable assets pursuant to Subpart B-1, Part III, Chapter 2 of the Code. Legal title to the contributed assets shall be
registered in the name of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Interest Rate and Debenture Repayment</u>. Said sum of money shall bear interest from the date of
contribution at the rate of 8% per annum on the unpaid principal balance. Accrued interest shall be payable annually, commencing on July 1, 2023, and continuing on July 1 of each year thereafter, said repayment subject to first having been
approved by the Department. The principal sum of this Debenture and any unpaid interest thereon shall be due and payable in full under this Debenture on December 31, 2042, subject to approval by the Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Repayment and Limitations</u>. Borrower shall not make any principal or interest payment in respect to this
Debenture unless such payment is approved in advance by the Department. Principal payments will be made pari-passu to all investors of this Debenture class. Borrower shall not make any principal or interest payment in respect to this Debenture
except out of surplus, excluding capital, and only if Borrower is in compliance with the Code. Payment of this Debenture will not be approved if such payment would cause Borrower to be in violation of any part of the Code. This Debenture shall not
remain unpaid after such time as the original intent referenced above has been achieved or is no longer applicable unless approval for repayment of Debenture has not been granted by the Department.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Financial Statement Disclosure</u>. Said unpaid principal of this Debenture shall not form a part of the
legal or statutory liabilities of Borrower. This amount shall be reported as surplus. Accmed and unpaid interest approved by the Department shall be reported as a legal and statutory liability of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Priority</u>. In the event of reorganization, dissolution, I 00% reinsurance or liquidation of Borrower
after the retirement of all its outstanding obligations other than Subordinated Debentures, the holders of Subordinated Debentures remaining unpaid shall be entitled to preferential right in remaining assets of Borrower equal to the unpaid principal
balance, plus accrued interest, before any distribution of such assets to shareholders or other owners pursuant to La. Stat. Ann.§ 22:2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Subordination</u>. This Debenture is subordinate to all subscriber policy claims, subordinate to claimant
and beneficiary claims, and subordinate to all other classes of credits other than the Debenture holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. No modification or amendment may be made with respect to this Debenture without prior written approval of the
Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. This Debenture contains the entire agreement between the above referenced parties. There are no other addendums
or agreements with any other party which form a part of this contract.

This Debenture is transferable only by assignment on the books of Lender upon surrender of this Debenrure properly assigned. The reissued Debenture must be submitted to the Commissioner of the Department and is subject to all the terms, conditions, and limitations herein contained.

Signature page follows

------

![LOGO](g73198dsp017.jpg)

------

![LOGO](g73198g22m01.jpg)

**Safepoint Holdings, Inc. Dividend Policy**

---

| | |
|:---|:---|
| Payout Factor: | 25% |
| Payout Base: | Consolidated GAAP Net Income |
| Payout Timing: | Immediately following Demotech and KBRA rating affirmation based on year-end financials filed March 1. Expectation would be April/May payout. |
| Payout Requirements: | Minimum Risk-Based Capital score for each carrier of 400% Affirmation of acceptable rating by Demotech and KBRA for each carrier |
| Policy Implementation: | Period begins immediately following the funding and formation of a Florida Reciprocal. For example, if the reciprocal is funded and licensed July 1, 2024, then this Dividend Policy would cover Net Income beginning 7/1/24. Payout on second half of 2024 would be made following rating affirmation early 2025. Thereafter policy covers full calendar years. |
| Dividend Recipients: | All common shareholders, including restricted shares. |

---

This Dividend Policy is subject to any relevant provisions regarding dividend in the articles of incorporation and bylaws of Safepoint Holdings, Inc., as well as any applicable provisions of Florida law.

## Exhibit 4.8

**Exhibit 4.8** 

**CLASS A SUBORDINATED SURPLUS DEBENTURE** 

This Subordinated Surplus Debenture executed this 1*5*<sup>th</sup> day of June, 2022 by and between Cajun Underwriters Reciprocal Exchange, a Louisiana reciprocal insurance exchange ("<u>Borrower</u>") and Clinchpoint Holdings, LLC, a South Dakota limited liability company ("<u>Lender</u>"), together referred to as "the parties".

It is deemed to be in the best interest of Borrower to increase its surplus as to policyholders, enabling it to continue or expand to transact the business of insurance in accordance with the Louisiana Insurance Code (the "<u>Code</u>") and requirements of the Louisiana Department (the "<u>Department</u>") of Insurance. Lender hereby indicates its willingness to contribute to Borrower acceptable funds to accomplish the purpose as set forth in this Debenture, in the amount, on the terms, and subject to the conditions set forth herein.

Pursuant to and in compliance with the Code, approval of the Department has been obtained to this agreement, for such contribution to surplus, and a Board Resolution has been issued by the Board of Directors of Borrower, as evidenced by copy of resolution attached.

For and in consideration of the parties' mutual agreements as set forth herein, Lender hereby makes a contribution to Borrower's surplus of $6,000,000.00 and Borrower hereby accepts said contribution to surplus.

This Debenture is subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amount</u>. The contribution to surplus in the amount of $6,000,000.00 is made in the form of cash or cash
equivalents. These assets have been be approved by the Department and found to be acceptable assets pursuant to Subpart B-1, Part III, Chapter 2 of the Code. Legal title to the contributed assets shall be
registered in the name of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Interest Rate and Debenture Repayment</u>. Said sum of money shall bear interest from the date of
contribution at the rate of 8% per annum on the unpaid principal balance. Accrued interest shall be payable annually, commencing on July 1, 2023, and continuing on July 1 of each year thereafter, said repayment subject to first having been
approved by the Department. The principal sum of this Debenture and any unpaid interest thereon shall be due and payable in full under this Debenture on December 31, 2042, subject to approval by the Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Repayment and Limitations</u>. Borrower shall not make any principal or interest payment in respect to this
Debenture unless such payment is approved in advance by the Department. Principal payments will be made pari-passu to all investors of this Debenture class. Borrower shall not make any principal or interest payment in respect to this Debenture
except out of surplus, excluding capital, and only if Borrower is in compliance with the Code. Payment of this Debenture will not be approved if such payment would cause Borrower to be in violation of any part of the Code. This Debenture shall not
remain unpaid after such time as the original intent referenced above has been achieved or is no longer applicable unless approval for repayment of Debenture has not been granted by the Department.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Financial Statement Disclosure</u>. Said unpaid principal of this Debenture shall not form a part of the
legal or statutory liabilities of Borrower. This amount shall be reported as surplus. Accrued and unpaid interest approved by the Department shall be reported as a legal and statutory liability of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Priority</u>. In the event of reorganization, dissolution, 100% reinsurance or liquidation of Borrower after
the retirement of all its outstanding obligations other than Subordinated Debentures, the holders of Subordinated Debentures remaining unpaid shall be entitled to preferential right in remaining assets of Borrower equal to the unpaid principal
balance, plus accrued interest, before any distribution of such assets to shareholders or other owners pursuant to La. Stat. Ann. § 22:2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Subordination</u>. This Debenture is subordinate to all subscriber policy claims, subordinate to claimant
and beneficiary claims, and subordinate to all other classes of credits other than the Debenture holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. No modification or amendment may be made with respect to this Debenture without prior written approval of the
Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. This Debenture contains the entire agreement between the above referenced parties. There are no other addendums
or agreements with any other party which form a part of this contract.

This Debenture is transferable only by assignment on the books of Lender upon surrender of this Debenture properly assigned. The reissued Debenture must be submitted to the Commissioner of the Department and is subject to all the terms, conditions, and limitations herein contained.

Signature page follows

------

![LOGO](g73198dsp021.jpg)

## Exhibit 4.9

**Exhibit 4.9** 

CLASS A SUBORDINATED SURPLUS DEBENTURE

This Subordinated Surplus Debenture executed this 23 day of September, 2022 by and between Cajun Underwriters Reciprocal Exchange, a Louisiana reciprocal insurance exchange ("<u>Borrower</u>") and Cajun Investco I, LLC, a Michigan limited liability company ("<u>Lender</u>"), together referred to as "the parties".

It is deemed to be in the best interest of Borrower to increase its surplus as to policyholders, enabling it to continue or expand to transact the business of insurance in accordance with the Louisiana Insurance Code (the "<u>Code</u>") and requirements of the Louisiana Department (the "<u>Department</u>") of Insurance. Lender hereby indicates its willingness to contribute to Borrower acceptable funds to accomplish the purpose as set forth in this Debenture, in the amount, on the terms, and subject to the conditions set forth herein.

Pursuant to and in compliance with the Code, approval of the Department has been obtained to this agreement, for such contribution to surplus, and a Board Resolution has been issued by the Board of Directors of Borrower, as evidenced by copy of resolution attached.

For and in consideration of the parties' mutual agreements as set forth herein, Lender hereby makes a contribution to Borrower's surplus of $2,000,000.00 and Borrower hereby accepts said contribution to surplus.

This Debenture is subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amount.</u> The contribution to surplus in the amount of $2,000,000.00 is made in the form of cash or cash
equivalents. These assets have been be approved by the Department and found to be acceptable assets pursuant to Subpart B-1, Part III, Chapter 2 of the Code. Legal title to the contributed assets shall be
registered in the name of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Interest Rate and Debenture Repayment.</u> Said sum of money shall bear interest from the date of
contribution at the rate of 8% per annum on the unpaid principal balance. Accrued interest shall be payable annually, commencing on July 1, 2023, and continuing on July 1 of each year thereafter, said repayment subject to first having been
approved by the Department. The principal sum of this Debenture and any unpaid interest thereon shall be due and payable in full under this Debenture on December 31, 2042, subject to approval by the Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Repayment and Limitations.</u> Borrower shall not make any principal or interest payment in respect to this
Debenture unless such payment is approved in advance by the Department. Principal payments will be made pari-passu to all investors of this Debenture class. Borrower shall not make any principal or interest payment in respect to this Debenture
except out of surplus, excluding capital, and only if Borrower is in compliance with the Code. Payment of this Debenture will not be approved if such payment would cause Borrower to be in violation of any part of the Code. This Debenture shall not
remain unpaid after such time as the original intent referenced above has been achieved or is no longer applicable unless approval for repayment of Debenture has not been granted by the Department.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Financial Statement Disclosure.</u> Said unpaid principal of this Debenture shall not form a part of the
legal or statutory liabilities of Borrower. This amount shall be reported as surplus. Accrued and unpaid interest approved by the Department shall be reported as a legal and statutory liability of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Priority.</u> In the event of reorganization, dissolution, 100% reinsurance or liquidation of Borrower after
the retirement of all its outstanding obligations other than Subordinated Debentures, the holders of Subordinated Debentures remaining unpaid shall be entitled to preferential right in remaining assets of Borrower equal to the unpaid principal
balance, plus accrued interest, before any distribution of such assets to shareholders or other owners pursuant to La. Stat. Ann. § 22:2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Subordination</u>. This Debenture is subordinate to all subscriber policy claims, subordinate to claimant
and beneficiary claims, and subordinate to all other classes of credits other than the Debenture holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. No modification or amendment may be made with respect to this Debenture without prior written approval of the
Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. This Debenture contains the entire agreement between the above referenced parties. There are no other addendums
or agreements with any other party which form a part of this contract.

This Debenture is transferable only by assignment on the books of Lender upon surrender of this Debenture properly assigned. The reissued Debenture must be submitted to the Commissioner of the Department and is subject to all the terms, conditions, and limitations herein contained.

Signature page follows

------

![LOGO](g73198dsp024.jpg)

## Exhibit 4.10

**Exhibit 4.10** 

CLASS A SUBORDINATED SURPLUS DEBENTURE

This Subordinated Surplus Debenture executed this 4th day of May, 2023 by and between Cajun Underwriters Reciprocal Exchange, a Louisiana reciprocal insurance exchange (''<u>Borrower</u>") and Cajun Underwriters Holdings, LLC, a Delaware limited liability company ("<u>Lender</u>"), together referred to as "the parties".

It is deemed to be in the best interest of Borrower to increase its surplus as to policyholders, enabling it to continue or expand to transact the business of insurance in accordance with the Louisiana Insurance Code (the "<u>Code</u>") and requirements of the Louisiana Department (the "<u>Department</u>") of Insurance. Lender hereby indicates its willingness to contribute to Borrower acceptable funds to accomplish the purpose as set forth in this Debenture, in the amount, on the terms, and subject to the conditions set forth herein.

Pursuant to and in compliance with the Code, approval of the Department has been obtained to this agreement, for such contribution to surplus, and a Board Resolution has been issued by the Board of Directors of Borrower, as evidenced by copy of resolution attached.

For and in consideration of the parties' mutual agreements as set forth herein, Lender hereby makes a contribution to Borrower's surplus of $3,000,000.00 and Borrower hereby accepts said contribution to surplus.

This Debenture is subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amount.</u> The contribution to surplus in the amount of $3,000,000.00 is made in the form of cash or cash
equivalents. These assets have been be approved by the Department and found to be acceptable assets pursuant to Subpart B-1, Part III, Chapter 2 of the Code. Legal title to the contributed assets shall be
registered in the name of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Interest Rate and Debenture Repayment.</u> Said sum of money shall bear interest from the date of
contribution at the rate of 8% per annum on the unpaid principal balance. Accrued interest shall be payable annually, commencing on July 1, 2023, and continuing on July 1 of each year thereafter, said repayment subject to first having been
approved by the Department. The principal sum of this Debenture and any unpaid interest thereon shall be due and payable in full under this Debenture on December 31, 2042, subject to approval by the Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Repayment and Limitations.</u> Borrower shall not make any principal or interest payment in respect to this
Debenture unless such payment is approved in advance by the Department. Principal payments will be made pari-passu to all investors of this Debenture class. Borrower shall not make any principal or interest payment- in respect to this Debenture
except out of surplus, excluding capital, and only if Borrower is in compliance with the Code. Payment of this Debenture will not be approved if such payment would cause Borrower to be in violation of any part of the Code. This Debenture shall not
remain unpaid after such time as the original intent referenced above has been achieved or is no longer applicable unless approval for repayment of Debenture has not been granted by the Department.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Financial Statement Disclosure.</u> Said unpaid principal of this Debenture shall not form a part of the
legal or statutory liabilities of Borrower. This amount shall be reported as surplus. Accrued and unpaid interest approved by the Department shall be reported as a legal and statutory liability of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Priority.</u> In the event of reorganization, dissolution, 100% reinsurance or liquidation of Borrower after
the retirement of all its outstanding obligations other than Subordinated Debentures, the holders of Subordinated Debentures remaining unpaid shall be entitled to preferential right in remaining assets of Borrower equal to the unpaid principal
balance, plus accrued interest, before any distribution of such assets to shareholders or other owners pursuant to La. Stat. Ann. *§*  22:2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Subordination</u>. This Debenture is subordinate to all subscriber policy claims, subordinate to claimant
and beneficiary claims, and subordinate to all other classes of credits other than the Debenture holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. No modification or amendment may be made with respect to this Debenture without prior written approval of the
Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. This Debenture contains the entire agreement between the above referenced parties. There are no other addendums
or agreements with any other party which form a part of this contract.

This Debenture is transferable only by assignment on the books of Lender upon surrender of this Debenture properly assigned. The reissued Debenture must be submitted to the Commissioner of the Department and is subject to all the terms, conditions, and limitations herein contained.

Signature page follows

------

![LOGO](g73198dsp027.jpg)

## Exhibit 4.11

**Exhibit 4.11** 

CLASS A SUBORDINATED SURPLUS DEBENTURE

This Subordinated Surplus Debenture executed this 7th day of February 2024 by and between Cajun Underwriters Reciprocal Exchange, a Louisiana reciprocal insurance exchange ("<u>Borrower</u>") and Safepoint Holdings, Inc., a Florida corporation ("<u>Lender</u>"), together referred to as ''the parties".

It is deemed to be in the best interest of Borrower to increase its surplus as to policyholders, enabling it to continue or expand to transact the business of insurance in accordance with the Louisiana Insurance Code (the " <u>Code</u>") and requirements of the Louisiana Department (the "<u>Department</u>") of Insurance. Lender hereby indicates its willingness to contribute to Borrower acceptable funds to accomplish the purpose as set forth in this Debenture, in the amount, on the terms, and subject to the conditions set forth herein.

Pursuant to and in compliance with the Code, approval of the Department has been obtained to this agreement, for such contribution to surplus, and a Board Resolution has been issued by the Board of Directors of Borrower, as evidenced by copy of resolution attached.

For and in consideration of the parties' mutual agreements as set forth herein, Lender hereby makes a contribution to Borrower's surplus of $1,750,000.00 and Borrower hereby accepts said contribution to surplus.

This Debenture is subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amount.</u> The contribution to surplus in the amount of $1,750,000.00 is made in the form of cash or cash
equivalents. These assets have been approved by the Department and found to be acceptable assets pursuant to Subpart B-1, Part III, Chapter 2 of the Code. Legal title to the contributed assets shall be
registered in the name of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Interest Rate and Debenture Repayment.</u> Said sum of money shall bear interest from the date of
contribution at the rate of 8% per annum on the unpaid principal balance. Accrued interest shall be payable annually, commencing on December 31, 2024, and continuing on December 31 of each year thereafter, said repayment subject to first
having been approved by the Department. The principal sum of this Debenture and any unpaid interest thereon shall be due and payable in full under this Debenture on December 31, 2044, subject to approval by the Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Repayment and Limitations.</u> Borrower shall not make any principal or interest payment in respect to this
Debenture unless such payment is approved in advance by the Department, as required under LA R.S. 22:84(B) and SSAP No. 41R, paragraph 3(d). Principal payments will be made pari-passu to all investors of this Debenture class. Borrower shall not make
any principal or interest payment in respect to this Debenture except out of surplus, excluding capital, and only if Borrower is in compliance with the Code. Payment of this Debenture will not be approved if such payment would cause Borrower to be
in violation of any part of the Code. This Debenture shall not remain unpaid after such time as the original intent referenced above has been achieved or is no longer applicable unless approval for repayment of Debenture has not been granted by the
Department.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Financial Statement Disclosure.</u> Said unpaid principal of this Debenture shall not form a part of the
legal or statutory liabilities of Borrower. This amount shall be reported as surplus. Accrued and unpaid interest approved by the Department shall be reported as a legal and statutory liability of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Priority.</u> In the event of reorganization, dissolution, 100% reinsurance or liquidation of Borrower after
the retirement of all its outstanding obligations other than Subordinated Debentures, the holders of Subordinated Debentures remaining unpaid shall be entitled to preferential right in remaining assets of Borrower equal to the unpaid principal
balance, plus accrued interest, before any distribution of such assets to shareholders or other owners pursuant to La. Stat. Ann. § 22:2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Subordination</u>. This Debenture is subordinate to all subscriber policy claims, subordinate to claimant
and beneficiary claims, and subordinate to all other classes of credits other than the Debenture holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. No modification or amendment may be made with respect to this Debenture without prior written approval of the
Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. This Debenture contains the entire agreement between the above referenced parties. There are no other addendums
or agreements with any other party which form a part of this contract.

This Debenture is transferable only by assignment on the books of Lender upon surrender of this Debenture properly assigned. The reissued Debenture must be submitted to the Commissioner of the Department and is subject to all the terms, conditions, and limitations herein contained.

Signature page follows

------

![LOGO](g73198dsp030.jpg)

IN WITNESS WHEREOF, this Debenture has been executed and delivered as of the date first written above on behalf of the parties hereto by their respective officers duly authorized hereunto. Attest: CAJUN UNDERWRITERS RECIPROCAL EXCHANGE By Print Name: Steve Hoffman Title: Chief Financial Officer STATE OF FLORIDA COUNTY OF Hillsborough The foregoing instrument was acknowledged before me by Steve Hoffman on behalf of [Borrower], this 7th day of February, 2024. (Notary Public) Personally Known x OR Produced Identification Type of Identification Produced Attest: SAFEPOINT HOLDINGS, INC. By Print Name: David Flitman Title: President & CEO Attest: SAFEPOINT HOLDINGS, INC. By Print Name: David Flitman Title: President & CEO STATE OF Florida COUNTY OF Hillsborough The foregoing instrument was acknowledged before me by David Flitman on behalf of [Lender], this 7th day of February, 2024. (Notary Public) Personally Known _x_ OR Produced Identification Type of Identification Produced

## Exhibit 4.12

**Exhibit 4.12** 

**CONFIDENTIAL TRADE SECRET** 

**SUBORDINATED SURPLUS DEBENTURE** 

This Subordinated Surplus Debenture executed this 5th day of January, 2024 by and between Manatee Insurance Exchange, a Florida domiciled insurance reciprocal exchange ("<u>Borrower</u>") and Safepoint Holdings, Inc., a Florida domiciled corporation ("<u>Lender</u>'), together referred to as ''the parties".

It is deemed to be in the best interest of Borrower to increase its surplus as to policyholders, enabling it to continue or expand to transact the business of insurance in accordance with the Florida Insurance Code and requirements of the Florida Office of Insurance Regulation. Lender hereby indicates its willingness to contribute to Borrower acceptable funds to accomplish the purpose as set forth in this Debenture, in the amount, on the terms, and subject to the conditions set forth herein.

Pursuant to and in compliance with Section 628.401, Florida Statutes, approval of the Florida Office of Insurance Regulation has been obtained to this agreement, for such contribution to surplus, and a Board Resolution has been issued by the Board of Directors of Borrower, as evidenced by copy of resolution attached.

For and in consideration of the parties' mutual agreements as set forth herein, Lender hereby contributes to Borrower's surplus of $20,000,000 and Borrower hereby accepts said contribution to surplus.

This Debenture is subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amount</u>. The contribution to surplus in the amount of $20,000,000 is made in the form of cash or cash
equivalents. These assets have been approved by the Florida Office of Insurance Regulation and found to be acceptable assets pursuant to Chapter 625 Part II, Florida Statutes. Legal title to the contributed assets shall be registered in the name of
Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Interest Rate and Debenture Repayment</u>. Said sum of money shall bear interest from the date of
contribution at the rate of eight percent (8%) per annum on the unpaid principal balance. Accrued interest shall be payable annually, commencing on January 5, 2025, and continuing on January 5 of each year thereafter, said repayment
subject to first having been approved by the Florida Office of Insurance Regulation. The principal sum of this Debenture and any unpaid interest thereon shall be due and payable in full under this Debenture on January 5, 2044, subject to
approval by the Florida Office of Insurance Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Repayment and Limitations</u>. Borrower shall not make any principal or interest payment in respect to this
Debenture unless such payment is approved in advance by the Florida Office of Insurance Regulation. Borrower shall not make any principal or interest payment in respect to this Debenture except out of surplus, excluding capital, and only if Borrower
is in compliance with the Florida Insurance Code. Payment of this Debenture will not be approved if such payment would cause Borrower to be in

------

**CONFIDENTIAL TRADE SECRET** 

violation of any part of the Florida Insurance Code. This Debenture shall not remain unpaid after such time as the original intent referenced above has been achieved or is no longer applicable unless approval for repayment of Debenture has not been granted by the Florida Office of Insurance Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Financial Statement Disclosure</u>. Said unpaid principal of this Debenture shall not form a part of the
legal or statutory liabilities of Borrower. This amount shall be reported as surplus. Accrued and unpaid interest approved by the Florida Office of Insurance Regulation shall be reported as a legal and statutory liability of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Priority</u>. In the event of reorganization, dissolution, 100% reinsurance or liquidation of Borrower after
the retirement of all its outstanding obligations other than Subordinated Debentures, the holders of Subordinated Debentures remaining unpaid shall be entitled to preferential right in remaining assets of Borrower equal to the unpaid principal
balance, plus accrued interest, before any distribution of such assets to shareholders or other owners pursuant to Section 631.271, Florida Statutes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. No modification or amendment may be made with respect to this Debenture without prior written approval of the
Florida Office of Insurance Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. This Debenture contains the entire agreement between the above referenced parties. There are no other addendums
or agreements with any other party which form a part of this contract.

This Debenture is transferable only by assignment on the books of Lender upon surrender of this Debenture properly assigned. The reissued Debenture must be submitted to the Commissioner of the Office of Insurance Regulation and is subject to all the terms, conditions, and limitations herein contained.

*Signature page follows* 

------

**CONFIDENTIAL TRADE SECRET** 

**IN WITNESS WHEREOF,** this Debenture has been executed and delivered as of the date first written above on behalf of the parties hereto by their respective officers duly authorized hereunto.

---

| | | |
|:---|:---|:---|
| Attest: | Manatee Insurance Exchange | Manatee Insurance Exchange |
| ![LOGO](g73198g45t67.jpg) | By | /s/ David Flitman |
|  | Print Name: | David Flitman |
|  | Title: | President & CEO |

---

STATE OF FLORIDA} <br> COUNTY OF HILLSBOROUGH}

The foregoing instrument was acknowledged before me by David Flitman on behalf of Borrower, this 4th day of January, 2024.

---

| | |
|:---|:---|
|  <u>Chelsea Buck</u> <br> (Notary Public) | ![LOGO](g73198g45t78.jpg) |
|  <br> Personally Known <u>X</u> OR Produced Identification<u> </u> | ![LOGO](g73198g45t78.jpg) |
|  Type of Identification Produced  | ![LOGO](g73198g45t78.jpg) |

---

---

| | | |
|:---|:---|:---|
| Attest: | Safepoint Holdings, Inc. | Safepoint Holdings, Inc. |
| ![LOGO](g73198g67u87.jpg) | By | /s/ Steve Hoffman |
|  | Print Name: | Steve Hoffman |
|  | Title: | Chief Financial Officer |

---

---

| |
|:---|
| STATE OF FLORIDA} |
| COUNTY OF HILLSBOROUGH} |
| The foregoing instrument was acknowledged before me by Steve Hoffman on behalf of Lender, this 4th day of January, 2024. |

---

---

| | |
|:---|:---|
|  <u>Chelsea Buck</u> <br> (Notary Public) | ![LOGO](g73198g76o90.jpg) |
|  Personally Known <u>X</u> OR Produced Identification<u> </u> | ![LOGO](g73198g76o90.jpg) |
|  Type of Identification Produced  | ![LOGO](g73198g76o90.jpg) |

---

## Exhibit 4.13

**Exhibit 4.13** 

**SUBORDINATED SURPLUS DEBENTURE** 

This Subordinated Surplus Debenture executed this 18th day of January, 2024 by and between Manatee Insurance Exchange, a Florida domiciled insurance reciprocal exchange ("<u>Borrower</u>") and Acrisure SI-Vehicles, LLC, a Michigan domiciled limited liability company ("<u>Lender</u>"), together referred to as "the parties".

It is deemed to be in the best interest of Borrower to increase its surplus as to policyholders, enabling it to continue or expand to transact the business of insurance in accordance with the Florida Insurance Code and requirements of the Florida Office oflnsurance Regulation. Lender hereby indicates its willingness to contribute to Borrower acceptable funds to accomplish the purpose as set forth in this Debenture, in the amount, on the terms, and subject to the conditions set forth herein.

Pursuant to and in compliance with Section 628.401, Florida Statutes, approval of the Florida Office of Insurance Regulation has been obtained to this agreement, for such contribution to surplus, and a Board Resolution has been issued by the Board of Directors of Borrower, as evidenced by copy of resolution attached.

For and in consideration of the parties' mutual agreements as set forth herein, Lender hereby contributes to Borrower's surplus of $5,000,000 and Borrower hereby accepts said contribution to surplus.

This Debenture is subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amount</u>. The contribution to surplus in the amount of $5,000,000 is made in the form of cash or cash
equivalents. These assets have been approved by the Florida Office of Insurance Regulation and found to be acceptable assets pursuant to Chapter 625 Part II, Florida Statutes. Legal title to the contributed assets shall be registered in the name of
Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Interest Rate and Debenture Repayment</u>. Said sum of money shall bear interest from the date of
contribution at the rate of eight percent (8%) per annum on the unpaid principal balance. Accrued interest shall be payable annually, commencing on January 18, 2025, and continuing on January 18 of each year thereafter, said repayment
subject to first having been approved by the Florida Office of Insurance Regulation. The principal sum of this Debenture and any unpaid interest thereon shall be due and payable in full under this Debenture on January 18, 2044, subject to
approval by the Florida Office of Insurance Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Repayment and Limitations</u>. Borrower shall not make any principal or interest payment in respect to this
Debenture unless such payment is approved in advance by the Florida Office of Insurance Regulation. Borrower shall not make any principal or interest payment in respect to this Debenture except out of surplus, excluding capital, and only if Borrower
is in compliance with the Florida Insurance Code. Payment of this Debenture will not be approved if such payment would cause Borrower to be in

------

violation of any part of the Florida Insurance Code. This Debenture shall not remain unpaid after such time as the original intent referenced above has been achieved or is no longer applicable unless approval for repayment of Debenture has not been granted by the Florida Office of Insurance Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Financial Statement Disclosure</u>. Said unpaid principal of this Debenture shall not form a part of the
legal or statutory liabilities of Borrower. This amount shall be reported as surplus. Accrued and unpaid interest approved by the Florida Office of Insurance Regulation shall be reported as a legal and statutory liability of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Priority</u>. In the event of reorganization, dissolution, 100% reinsurance or liquidation of Borrower after
the retirement of all its outstanding obligations other than Subordinated Debentures, the holders of Subordinated Debentures remaining unpaid shall be entitled to preferential right in remaining assets of Borrower equal to the unpaid principal
balance, plus accrued interest, before any distribution of such assets to shareholders or other owners pursuant to Section 631.271, Florida Statutes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. No modification or amendment may be made with respect to this Debenture without prior written approval of the
Florida Office of Insurance Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. This Debenture contains the entire agreement between the above referenced parties. There are no other addendums
or agreements with any other party which form a part of this contract.

This Debenture is transferable only by assignment on the books of Lender upon surrender of this Debenture properly assigned. The reissued Debenture must be submitted to the Commissioner of the Office of Insurance Regulation and is subject to all the terms, conditions, and limitations herein contained.

*Signature page follows* 

------

**IN WITNESS WHEREOF,** this Debenture has been executed and delivered as of the date first written above on behalf of the parties hereto by their respective officers duly authorized hereunto.

---

| | | |
|:---|:---|:---|
| Attest: | Manatee Insurance Exchange | Manatee Insurance Exchange |
| ![LOGO](g73198g03a11.jpg) | By | /s/ David Flitman |
|  | Print Name: | David Flitman |
|  | Title: | President and CEO |

---

STATE OF FLORIDA <br> COUNTY OF HILLSBOROUGH

The foregoing instrument was acknowledged before me by David Flitman on behalf of Borrower, this 18th day of January, 2024.

---

| | |
|:---|:---|
|  <u>Nicole Pirolo</u> <br> (Notary Public) | ![LOGO](g73198g05a11.jpg) |
|  <br> Personally Known <u>X</u> OR Produced Identification<u> </u> | ![LOGO](g73198g05a11.jpg) |
|  Type of Identification Produced  | ![LOGO](g73198g05a11.jpg) |

---

---

| | | |
|:---|:---|:---|
| Attest: | Acrisure SI-Vehicles, LLC | Acrisure SI-Vehicles, LLC |
| ![LOGO](g73198g04a11.jpg) | By | /s/ Ryan G. Foley |
|  | Print Name: | Ryan G. Foley |
|  | Title: | Executive Vice President |

---

---

| |
|:---|
| STATE OF MICHIGAN |
| COUNTY OF KENT} |
| The foregoing instrument was acknowledged before me by Ryan G. Foley on behalf of Lender, this 18th day of January, 202 . |

---

---

| |
|:---|
|  **<u>[illegible]</u>**  |
|  (Notary Public) |
|  <br> Personally Known <u>X</u> OR Produced Identification<u> </u> |
|  <br> Type of Identification Produced  |

---

## Exhibit 5.1

**Exhibit 5.1** 

---

| | |
|:---|:---|
| ![LOGO](g73198g0316193251869.jpg)  | 787 Seventh Avenue <br> New York, NY 10019-6099<br> Tel: 212 728 8000 <br> Fax: 212 728 8111  |

---

[•], 2026

Safepoint Holdings, Inc.

4010 Gunn Highway

Tampa, Florida 33618

Ladies and Gentlemen:

We have acted as counsel to Safepoint Holdings, Inc., a Delaware corporation (the "<u>Company</u>"), in connection with the preparation and filing of a Registration Statement on Form S-1 under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), filed with the Securities and Exchange Commission (the "<u>Commission</u>") on [•], 2026 (Registration No. 333-[•]) (as amended, the "<u>Registration Statement</u>"), relating to the proposed registration by the Company of up to [•] shares (the "<u>Firm Shares</u>") of common stock of the Company, par value $0.01 per share ("<u>Common Stock</u>"), of which [•] shares will be sold by the Company and [•] shares will be sold by the selling stockholders identified in the Registration Statement (the "<u>Selling Stockholders</u>"), and up to [•] additional shares of Common Stock to be sold by the Company and the Selling Stockholders upon the exercise of the underwriters' over-allotment option (the "<u>Option Shares</u>" and, together with the Firm Shares, the "<u>Shares</u>"). The offering of the Shares is referred to herein as the "<u>Offering</u>".

We have examined copies of the form of Amended and Restated Certificate of Incorporation of the Company (the "<u>Charter</u>") and the form of Amended and Restated Bylaws of the Company (the "<u>Bylaws</u>"), each to become effective prior to the closing of the Offering, the Registration Statement, the Underwriting Agreement, the relevant resolutions adopted by the Company's Board of Directors and other records and documents that we have deemed necessary for the purpose of this opinion letter. We are familiar with originals or copies, certified or otherwise identified to our satisfaction, of such other documents, corporate records, papers, statutes and authorities as we have deemed necessary to form a basis for the opinions hereinafter expressed.

As to questions of fact material to the opinions expressed below, we have relied without independent check or verification upon certificates and comparable documents of public officials and officers and representatives of the Company and statements of fact contained in the documents we have examined. In our examination and in rendering our opinions contained herein, we have assumed (i) the genuineness of all signatures of all parties; (ii) the authenticity of all corporate records, documents, agreements, instruments and certificates submitted to us as originals and the conformity to original documents and agreements of all documents and agreements submitted to us as conformed, certified or photostatic copies; and (iii) the capacity of natural persons.

Based on and subject to the foregoing and to the other qualifications and limitations set forth herein, we are of the opinion that, upon (i) due action by the Company's Board of Directors or a duly appointed committee thereof to determine the price per share of the Shares, (ii) the due execution and delivery of the Underwriting Agreement by the parties thereto and (iii) the effectiveness of the Registration Statement under the Act, (1) the Firm Shares have been duly authorized and, when issued, sold and paid for in accordance with the terms set forth in the prospectus contained in the Registration Statement and the form of Underwriting Agreement, will be validly issued, fully paid and non-assessable and (2) the Option Shares have been duly authorized and, when issued upon conversion of the currently existing shares to Common Stock, will be validly issued, fully paid and non-assessable.

BRUSSELS CHICAGO DALLAS FRANKFURT HAMBURG HOUSTON LONDON LOS ANGELES

MILAN MUNICH NEW YORK PALO ALTO PARIS ROME SAN FRANCISCO WASHINGTON

------

Safepoint Holdings, Inc.

[•], 2026

The opinion expressed herein is limited to the General Corporation Law of the State of Delaware, and we express no opinion with respect to the laws of any other country, state or jurisdiction. The opinion expressed herein is limited to matters expressly set forth herein, and no opinion is to be implied or may be inferred beyond the matters expressly stated herein. The opinion expressed herein is given as of the date hereof, and we assume no obligation to update or supplement such opinion after the date hereof. The opinion expressed herein is rendered as of the date first written above and we disclaim any obligation to advise you of facts, circumstances, events or developments that hereafter may be brought to our attention and that may alter, affect or modify the opinion expressed herein. The opinion expressed herein is expressly limited to the matters set forth above and we render no opinion, whether by implication or otherwise, as to any other matters relating to the Company, the Selling Stockholders or the Shares.

We hereby consent to the filing of this opinion letter with the Commission as an exhibit to the Registration Statement, and to the use of our name under the heading "Legal Matters" in the prospectus included as part of the Registration Statement. In giving this consent, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission promulgated thereunder.

Very truly yours,

## Exhibit 10.1

**Exhibit 10.1** 

**<u>INDEMNIFICATION AND ADVANCEMENT AGREEMENT</u>**

This Indemnification and Advancement Agreement ("Agreement") is made as of [•], 20[•] by and between Safepoint Holdings, Inc., a Delaware corporation (the "Company"), and [•] ("Indemnitee"). This Agreement supersedes and replaces any and all previous Agreements between the Company and Indemnitee covering indemnification and advancement of expenses.

**RECITALS** 

WHEREAS, the Board of Directors of the Company (the "Board") believes that highly competent persons have become more reluctant to serve publicly-held corporations as directors, officers, or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification and advancement of expenses against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;

WHEREAS, the Board has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself. The Company's Bylaws and Certificate of Incorporation require indemnification of the officers and directors of the Company. Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (the "DGCL"). The Bylaws, the Certificate of Incorporation, and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and its directors, officers, and other persons with respect to indemnification and advancement of expenses;

WHEREAS, the uncertainties relating to such insurance, to indemnification, and to advancement of expenses may increase the difficulty of attracting and retaining such persons;

WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company and its stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified;

WHEREAS, this Agreement is a supplement to, and in furtherance of, the Bylaws, the Certificate of Incorporation and any resolutions adopted pursuant thereto, as well as any rights of

------

Indemnitee under any directors' and officers' liability insurance policy, and is not a substitute therefor, and does not diminish or abrogate any rights of Indemnitee thereunder; and

WHEREAS, Indemnitee does not regard the protection available under the Bylaws, the Certificate of Incorporation, and available insurance as adequate in the present circumstances, and may not be willing to serve or continue to serve as a director or officer without adequate additional protection, and the Company desires Indemnitee to serve or continue to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that Indemnitee be so indemnified and be advanced expenses.

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

Section 1. <u>Services to the Company.</u> Indemnitee agrees to serve or continue to serve as a director or officer of the Company. Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law). This Agreement does not create any obligation on the Company to continue Indemnitee in such position and is not an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee.

Section 2. <u>Definitions.</u> As used in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Agent" means any person who is authorized by the Company or an Enterprise to act for or represent the interests of the Company or an Enterprise, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A "Change in Control" occurs upon the earliest to occur after the date of this Agreement of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Acquisition of Stock by Third Party. Any Person (as defined below) becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing a majority of the combined voting power of the Company's then outstanding securities unless the change in relative beneficial ownership of the Company's securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Change in Board of Directors. During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 2(b)(i), 2(b)(iii) or 2(b)(iv) of this Agreement) whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Corporate Transactions. The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger

------

or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Liquidation. The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets (whether in a single transaction or series of related transactions); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Other Events. There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. For purposes of this Section 2(b), the following terms have the following meanings:

---

| | |
|:---|:---|
| 1 | "Person" has the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person excludes (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any entity owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.  |

---

2 "Beneficial Owner" has the meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner excludes any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company with another entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Corporate Status" describes the status of a person who is or was acting as a director, officer, employee, or Agent of the Company or an Enterprise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Disinterested Director" means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "Enterprise" means any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other entity for which Indemnitee is or was serving at the request of the Company as a director, officer, employee, or Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "Expenses" includes all reasonable attorneys' fees, retainers, court costs, transcript costs, fees and other costs of experts and other professionals, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, excise taxes and penalties under the Employee Retirement Income Security Act of 1974, as amended, and all other disbursements, obligations, or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses also include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) for purposes of Section 14(d) of this Agreement only, Expenses incurred by Indemnitee in connection with the interpretation, enforcement, or defense of Indemnitee's rights under this Agreement, by litigation or otherwise. Expenses, however, do not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "Independent Counsel" means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the five years prior to its selection or appointment has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements) or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" does not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement. The Company agrees to pay the reasonable fees and expenses of the Independent Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Proceeding" includes any threatened, pending or completed action, suit, claim, counterclaim, cross claim, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing, or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative, legislative, regulatory, or investigative (formal or informal) nature, including any appeal therefrom, in which Indemnitee was, is, or will be involved as a party, potential party, non-party witness or otherwise by reason of Indemnitee's Corporate Status or by reason of any action taken by Indemnitee (or a failure to take action by Indemnitee) or of any action (or failure to act) on Indemnitee's part while acting pursuant to Indemnitee's Corporate Status, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification, reimbursement, or advancement of Expenses can be provided under this Agreement. A Proceeding also includes a situation the Indemnitee believes in good faith may lead to, or culminate in, the institution of a Proceeding.

Section 3. <u>Indemnity in Third-Party Proceedings.</u> The Company will indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, the Company will

------

indemnify Indemnitee to the fullest extent permitted by applicable law against all Expenses, judgments, fines and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with, or in respect of, such Expenses, judgments, fines and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with such Proceeding or any claim, issue, or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal Proceeding, had no reasonable cause to believe that Indemnitee's conduct was unlawful.

Section 4. <u>Indemnity in Proceedings by or in the Right of the Company.</u> The Company will indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 4, the Company will indemnify Indemnitee to the fullest extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in, or not opposed to, the best interests of the Company. The Company will not indemnify Indemnitee for Expenses under this Section 4 related to any claim, issue, or matter in a Proceeding for which Indemnitee has been finally adjudged by a court to be liable to the Company, unless, and only to the extent that, the Court of Chancery of the state of Delaware (the "Delaware Court") or any court in which the Proceeding was brought determines upon application by Indemnitee that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.

Section 5. <u>Indemnification for Expenses of a Party Who is Wholly or Partly Successful.</u> To the fullest extent permitted by applicable law, the Company will indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection with any Proceeding to the extent that Indemnitee is successful, on the merits or otherwise. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues, or matters in such Proceeding, the Company will indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with or related to each successfully resolved claim, issue or matter to the fullest extent permitted by law. For purposes of this Section 5 and without limitation, the termination of any claim, issue, or matter in such a Proceeding by dismissal, with or without prejudice, will be deemed to be a successful result as to such claim, issue, or matter.

Section 6. <u>Indemnification for Expenses of a Witness.</u> To the fullest extent permitted by applicable law, the Company will indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with any Proceeding to which Indemnitee is not a party but to which Indemnitee is a witness, deponent, interviewee, or otherwise asked to participate or provide information.

Section 7. <u>Partial Indemnification.</u> If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company will indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

------

Section 8. <u>Additional Indemnification.</u> Notwithstanding any limitation in Sections 3, 4, or 5 of this Agreement, the Company will indemnify Indemnitee to the fullest extent permitted by applicable law (including but not limited to, the DGCL and any amendments to or replacements of the DGCL adopted after the date of this Agreement that expand the Company's ability to indemnify its officers, directors, employees or Agents) if Indemnitee is a party to, or threatened to be made a party to, any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor).

Section 9. <u>Exclusions.</u> Notwithstanding any provision in this Agreement, the Company is not obligated under this Agreement to indemnify Indemnitee for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any Expenses for which an amount was actually paid to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except to the extent provided in this Agreement and except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reimbursement of the Company by Indemnitee of any compensation pursuant to any compensation recoupment or clawback policy adopted by the Board or the compensation committee of the Board, including but not limited to any such policy adopted to comply with stock exchange listing requirements implementing Section 10D of the Exchange Act; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any Proceeding initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Proceeding or part of any Proceeding is to enforce Indemnitee's rights to indemnification or advancement, of Expenses, including a Proceeding (or any part of any Proceeding) initiated pursuant to Section 14 of this Agreement, (ii) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (iii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

Section 10. <u>Advances of Expenses.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company will advance, to the extent not prohibited by law, the Expenses incurred by Indemnitee in connection with:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. any Proceeding (or any part of any Proceeding) not initiated by Indemnitee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. any Proceeding (or any part of any Proceeding) initiated by Indemnitee if

1 the Proceeding or part of any Proceeding is to enforce Indemnitee's rights to obtain indemnification or advancement of Expenses from the Company or Enterprise, including a proceeding initiated pursuant to Section 14 of this Agreement, or

2 the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company will advance any such Expenses within thirty (30) days after the receipt by the Company of a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding eligible for advancement of expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Advances will be unsecured and interest free. Indemnitee hereby undertakes to repay, within thirty (30) days after demand by the Company, any amounts so advanced for such Expenses (without interest) to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company for such Expenses. Indemnitee qualifies for advances pursuant to the terms herein upon the execution of this Agreement and delivery to the Company; no other form of undertaking is required other than the execution of this Agreement. The Company will make advances without regard to Indemnitee's ability to repay the Expenses and without regard to Indemnitee's ultimate entitlement to indemnification under the other provisions of this Agreement.

Section 11. <u>Procedure for Notification of Claim for Indemnification or Advancement.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Indemnitee will notify the Company in writing of any Proceeding with respect to which Indemnitee intends to seek indemnification or advancement of Expenses hereunder as soon as reasonably practicable following the receipt by Indemnitee of written notice thereof. Indemnitee will include in the written notification to the Company a description of the nature of the Proceeding and the facts underlying the Proceeding and provide such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such Proceeding. Indemnitee's failure to notify the Company will not relieve the Company from any obligation it may have to Indemnitee under this Agreement, and any delay in so notifying the Company will not constitute a waiver by Indemnitee of any rights under this Agreement. The Secretary of the Company will, promptly upon receipt of such a request for indemnification or advancement, advise the Board in writing that Indemnitee has requested indemnification or advancement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company will be entitled to participate in the Proceeding at its own expense.

------

Section 12. <u>Procedure Upon Application for Indemnification.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless a Change of Control has occurred, the determination of Indemnitee's entitlement to indemnification will be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. by a majority vote of the Disinterested Directors, even though less than a quorum of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by written opinion provided by Independent Counsel selected by the Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. if so directed by the Board, by the stockholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a Change in Control has occurred, the determination of Indemnitee's entitlement to indemnification will be made by written opinion provided by Independent Counsel selected by Indemnitee (unless Indemnitee requests such selection be made by the Board)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The party selecting Independent Counsel pursuant to subsection (a)(iii) or (b) of this Section 12 will provide written notice of the selection to the other party. The notified party may, within ten (10) days after receiving written notice of the selection of Independent Counsel, deliver to the selecting party a written objection to such selection; <u>provided</u>, <u>however</u>, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of "Independent Counsel" as defined in Section 2 of this Agreement, and the objection will set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected will act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or the Delaware Court has determined that such objection is without merit. If, within thirty (30) days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 11(a) of this Agreement and the final disposition of the Proceeding, Independent Counsel has not been selected or, if selected, any objection to such selection has not been resolved, either the Company or Indemnitee may petition the Delaware Court for resolution of any objection made by the Company or Indemnitee to the other's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by such court or by such other person as such court designates. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 14(a) of this Agreement, Independent Counsel will be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Indemnitee will cooperate with the person, persons or entity making the determination with respect to Indemnitee's entitlement to indemnification, including providing to such person, persons, or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. The Company will advance and pay any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity

------

making the indemnification determination irrespective of the determination as to Indemnitee's entitlement to indemnification and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom. The Company promptly will advise Indemnitee in writing of the determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied and providing a copy of any written opinion provided to the Board by Independent Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If it is determined that Indemnitee is entitled to indemnification, the Company will make payment to Indemnitee within thirty (30) days after such determination.

Section 13. <u>Presumptions and Effect of Certain Proceedings.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In making a determination with respect to entitlement to indemnification under this Agreement, the person, persons, or entity making such determination will, to the fullest extent not prohibited by law, presume Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 11(a) of this Agreement, and the Company will, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption. Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper under the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, will be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the determination of the Indemnitee's entitlement to indemnification has not been made pursuant to Section 12 of this Agreement within sixty (60) days after the later of (i) receipt by the Company of Indemnitee's request for indemnification pursuant to Section 11(a) of this Agreement and (ii) the final disposition of the Proceeding for which Indemnitee requested Indemnification (the "Determination Period"), the requisite determination of entitlement to indemnification will, to the fullest extent not prohibited by law, be deemed to have been made and Indemnitee will be entitled to such indemnification absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification or (ii) a prohibition of such indemnification under applicable law. The Determination Period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, the Determination Period will not apply (i) if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 12(a)(iv) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such

------

determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The termination of any Proceeding or of any claim, issue, or matter therein by judgment, order, settlement or conviction, or upon a plea of <u>nolo</u> <u>contendere</u> or its equivalent, will not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee's conduct was unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of any determination of good faith, Indemnitee will be deemed to have acted in good faith if Indemnitee acted based on (i) the records or books of account of the Company, its subsidiaries, or an Enterprise, including financial statements, (ii) information supplied to Indemnitee by the directors or officers of the Company, its subsidiaries, or an Enterprise in the course of their duties, (iii) the advice of legal counsel for the Company, its subsidiaries, or an Enterprise or (iv) information or records given or reports made to the Company, or an Enterprise by an independent certified public accountant or by an appraiser, financial advisor or other expert selected with reasonable care by or on behalf of the Company, its subsidiaries, or an Enterprise. Further, Indemnitee will be deemed to have acted in a manner "not opposed to the best interests of the Company," as referred to in this Agreement if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan. The provisions of this Section 13(d) are not exclusive and do not limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The knowledge and/or actions, or failure to act, of any other person affiliated with the Company, or an Enterprise (including, but not limited to, a director, officer, trustee, partner, managing member, Agent or employee) may not be imputed to Indemnitee for purposes of determining Indemnitee's right to indemnification under this Agreement.

------

Section 14. <u>Remedies of Indemnitee.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Indemnitee may commence litigation against the Company in the Delaware Court to obtain indemnification or advancement of Expenses provided by this Agreement in the event that (i) a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) the Company does not advance Expenses pursuant to Section 10 of this Agreement, (iii) the determination of entitlement to indemnification is not made pursuant to Section 12 of this Agreement within the Determination Period, (iv) the Company does not indemnify Indemnitee pursuant to Section 5 or 6 or the second to last sentence of Section 12(d) of this Agreement within thirty (30) days after receipt by the Company of a written request therefor, (v) the Company does not indemnify Indemnitee pursuant to Section 3, 4, 7, or 8 of this Agreement within thirty (30) days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) in the event that the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or Proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder. The Company will not oppose Indemnitee's right to seek any such adjudication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding commenced pursuant to this Section 14 will be conducted in all respects as a *de novo* trial on the merits and Indemnitee may not be prejudiced by reason of that adverse determination. In any judicial proceeding commenced pursuant to this Section 14, the Company will have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be, and will not introduce evidence of the determination made pursuant to Section 12 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a determination is made pursuant to Section 12 of this Agreement that Indemnitee is entitled to indemnification, the Company will be bound by such determination in any judicial proceeding commenced pursuant to this Section 14 unless (i) Indemnitee made a misstatement of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with Indemnitees' request for indemnification, or (ii) the Company is prohibited from indemnifying Indemnitee under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company is, to the fullest extent not prohibited by law, precluded from asserting in any judicial proceeding commenced pursuant to this Section 14 that the procedures and presumptions of this Agreement are not valid, binding, or enforceable and will stipulate in any such court that the Company is bound by all the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) It is the intent of the Company that, to the fullest extent permitted by law, the Indemnitee not be required to incur legal fees or other Expenses associated with the interpretation, enforcement, or defense of Indemnitee's rights under this Agreement, by litigation or otherwise, because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Indemnitee under this Agreement. The Company, to the fullest extent permitted by law, will (within thirty (30) days after receipt by the Company of a written request therefor) advance to Indemnitee such Expenses which are incurred by Indemnitee in connection with a Proceeding concerning this Agreement, Indemnitee's other rights to indemnification or advancement of Expenses from the Company, or concerning any directors' and

------

officers' liability insurance policies maintained by the Company, and will indemnify Indemnitee against any and all such Expenses unless the court determines that Indemnitee's claims in such action were made in bad faith or frivolous, or that the Company is prohibited by law from indemnifying Indemnitee for such Expenses.

Section 15. <u>Non-exclusivity; Survival of Rights; Insurance; Subrogation.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The indemnification, contribution and advancement of Expenses provided by this Agreement are not exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or Disinterested Directors or otherwise. The indemnification, contribution and advancement of Expenses provided by this Agreement may not be limited or restricted by any amendment, alteration or repeal of this Agreement in any way with respect to any action taken or omitted by Indemnitee in Indemnitee's Corporate Status occurring prior to any amendment, alteration or repeal of this Agreement. To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification, contribution or advancement of Expenses than would be afforded currently under the Bylaws, the Certificate of Incorporation, or this Agreement, it is the intent of the parties hereto that Indemnitee enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy is cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, will not prevent the concurrent assertion or employment of any other right or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company hereby acknowledges that Indemnitee may have certain rights to indemnification, advancement of Expenses and/or insurance provided by one or more other Persons with whom or which Indemnitee may be associated. The relationship between the Company and such other Persons, other than an Enterprise, with respect to Indemnitee's rights to indemnification, advancement of Expenses, and insurance is described by this subsection, subject to the provisions of subsection (d) of this Section 15 with respect to a Proceeding concerning Indemnitee's Corporate Status with an Enterprise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Company hereby acknowledges and agrees:

1) the Company's obligations to Indemnitee are primary and any obligation of any other Persons, other than an Enterprise, are secondary (i.e., the Company is the indemnitor of first resort) with respect to any request for indemnification or advancement of Expenses made pursuant to this Agreement concerning any Proceeding;

3) any obligation of any other Persons with whom or which Indemnitee may be associated to indemnify Indemnitee and/or advance Expenses to Indemnitee in respect of any proceeding are secondary to the Company's obligations;

------

4) the Company will indemnify Indemnitee and advance Expenses to Indemnitee hereunder to the fullest extent provided herein without regard to any rights Indemnitee may have against any other Person with whom or which Indemnitee may be associated or an insurer of any such Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Company irrevocably waives, relinquishes and releases (A) any other Person with whom or which Indemnitee may be associated from any claim of contribution, subrogation, reimbursement, exoneration or indemnification, or any other recovery of any kind in respect of amounts paid by the Company to Indemnitee pursuant to this Agreement and (B) any right to participate in any claim or remedy of Indemnitee against any Person, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from any Person, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim, remedy or right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. In the event any other Person with whom or which Indemnitee may be associated or their insurers advances or extinguishes any liability or loss for Indemnitee, the payor has a right of subrogation against the Company or its insurers for all amounts so paid which would otherwise be payable by the Company or its insurers under this Agreement. In no event will payment by any other Person with whom or which Indemnitee may be associated or their insurers affect the obligations of the Company hereunder or shift primary liability for the Company's obligation to indemnify or advance Expenses to any other Person with whom or which Indemnitee may be associated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Any indemnification or advancement of Expenses provided by any other Person with whom or which Indemnitee may be associated is specifically in excess over the Company's obligation to indemnify and advance Expenses or any valid and collectible insurance (including but not limited to any malpractice insurance or professional errors and omissions insurance) provided by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or Agents of the Company, the Company will obtain a policy or policies covering Indemnitee to the maximum extent of the coverage available for any such director, officer, employee or Agent under such policy or policies, including coverage in the event the Company does not or cannot, for any reason, indemnify or advance Expenses to Indemnitee as required by this Agreement. If, at the time of the receipt of a notice of a claim pursuant to this Agreement, the Company has director and officer liability insurance in effect, the Company will give prompt notice of such claim or of the commencement of a Proceeding, as the case may be, to the insurers in accordance with the procedures set forth in the respective policies. The Company will thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies. Indemnitee agrees to assist the Company's efforts to cause the insurers to pay such amounts and will comply with the terms of such policies, including selection of approved panel counsel, if required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company's obligation to indemnify or advance Expenses hereunder to Indemnitee for any Proceeding concerning Indemnitee's Corporate Status with an Enterprise will

------

be reduced by any amount Indemnitee has actually received as indemnification or advancement of Expenses from such Enterprise. The Company and Indemnitee intend that any such Enterprise (and its insurers) be the indemnitor of first resort with respect to indemnification and advancement of Expenses for any Proceeding related to or arising from Indemnitee's Corporate Status with such Enterprise. The Company's obligation to indemnify and advance Expenses to Indemnitee is secondary to the obligations the Enterprise or its insurers owe to Indemnitee. Indemnitee agrees to take all reasonably necessary and desirable action to obtain from an Enterprise indemnification and advancement of Expenses for any Proceeding related to, or arising from, Indemnitee's Corporate Status with such Enterprise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event of any payment made by the Company under this Agreement, the Company will be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee from any Enterprise or its insurance carrier. Indemnitee will execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

Section 16. <u>Duration of Agreement.</u> The indemnification and advancement of Expenses rights provided by or granted pursuant to this Agreement (i) are binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), (ii) continue as to an Indemnitee who has ceased to be a director, officer, employee or Agent of the Company or of any Enterprise, and (iii) inure to the benefit of Indemnitee and Indemnitee's spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

Section 17. <u>Severability.</u> If any provision or provisions of this Agreement is held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) will not in any way be affected or impaired thereby and will remain enforceable to the fullest extent permitted by law; (b) such provision or provisions will be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) will be construed so as to give effect to the intent manifested thereby.

Section 18. <u>Interpretation</u>. Any ambiguity in the terms of this Agreement will be resolved in favor of Indemnitee and in a manner to provide the maximum indemnification and advancement of Expenses permitted by law. The Company and Indemnitee intend that this Agreement provide to the fullest extent permitted by law for indemnification and advancement of Expenses in excess of that expressly provided, without limitation, by the Certificate of Incorporation, the Bylaws, vote of the Company's stockholders or disinterested directors, or applicable law.

Section 19. <u>Enforcement.</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director, officer, employee, or Agent of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving or continuing to serve as director, officer, employee, or Agent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws, any directors' and officers' insurance maintained by the Company, and applicable law, is not a substitute therefor, and does not diminish or abrogate any rights of Indemnitee thereunder.

Section 20. <u>Modification and Waiver.</u> No supplement, modification or amendment of this Agreement is binding unless executed in writing by the parties hereto. The observance of any term of this Agreement may be waived by the party entitled to enforce such term only by a writing signed by the party against which such waiver is to be asserted. Unless expressly provided herein, no delay on the part of any party hereto in exercising any right, power, or privilege hereunder shall operate as a waiver thereof. No waiver of any of the provisions of this Agreement will be deemed to constitute a waiver of any other provision of this Agreement nor will any waiver constitute a continuing waiver.

Section 21. <u>Notice by Indemnitee.</u> Indemnitee agrees to promptly notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company does not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise.

Section 22. <u>Notices.</u> All notices, requests, demands and other communications under this Agreement will be in writing and will be deemed to have been duly given if (a) delivered by hand to the other party, (b) sent by reputable overnight courier to the other party or (c) sent by facsimile transmission or electronic mail, with receipt of oral confirmation that such communication has been received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee provides to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to the Company to:

Safepoint Holdings, Inc.

4010 Gunn Highway

Tampa, FL 33618

Attention: [•]

Email: [•]

------

or to any other address as may have been furnished to Indemnitee by the Company.

Section 23. <u>Contribution.</u> To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, will contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (a) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (b) the relative fault of the Company (and its directors, officers, employees and Agents) and Indemnitee in connection with such event(s) and/or transaction(s).

Section 24. <u>Applicable Law and Consent to Jurisdiction.</u> This Agreement and the legal relations among the parties are governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. The Company and Indemnitee hereby irrevocably and unconditionally (a) agree that any action, claim, or proceeding between the parties arising out of or in connection with this Agreement may be brought only in the Delaware Court and not in any other state or federal court in the United States of America or any court in any other country, (b) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action, claim, or proceeding arising out of or in connection with this Agreement, (c) waive any objection to the laying of venue of any such action, claim, or proceeding in the Delaware Court, and (d) waive, and agree not to plead or to make, any claim that any such action, claim, or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

Section 25. <u>Identical Counterparts.</u> This Agreement may be executed in one or more counterparts, each of which will for all purposes be deemed to be an original but all of which together constitute one and the same Agreement. Counterparts may be delivered via facsimile, electronic mail (including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act, the Electronic Signatures and Records Act or other applicable law, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

Section 26. <u>Headings.</u> The headings of this Agreement are inserted for convenience only and do not constitute part of this Agreement or affect the construction thereof.

------

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written.

---

| | |
|:---|:---|
| COMPANY | INDEMNITEE |
| By: |  |
| Name: | Name: |
| Title: | Address: |

---

## Exhibit 10.2

**Exhibit 10.2** 

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**PROPERTY CATASTROPHE EXCESS OF LOSS** 

**REINSURANCE CONTRACT** 

Effective: May 1, 2025

(the "Contract")

by and between

**SAFEPOINT INSURANCE COMPANY** 

Tampa, Florida

and

**CAJUN UNDERWRITERS RECIPROCAL EXCHANGE** 

Metairie, Louisiana

and

**MANATEE INSURANCE EXCHANGE** 

Tampa, Florida

including any and/or all companies that are or may hereafter become affiliated therewith

(collectively, the "Company")

and

**The various SUBSCRIBING REINSURER(S), signatories to the** 

**INTERESTS AND LIABILITIES AGREEMENT(S) attached to and** 

**forming part of this Contract** 

(collectively, the "Reinsurer" and individually, each a "Subscribing Reinsurer")

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **1** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
| **ARTICLE** |  | **PAGE** |
|  ARTICLE 1 - | BUSINESS COVERED | 4 |
|  ARTICLE 2 - | RETENTION AND LIMIT | 4 |
|  ARTICLE 3 - | OTHER REINSURANCE | 5 |
|  ARTICLE 4 - | TERM | 5 |
|  ARTICLE 5 - | SPECIAL TERMINATION | 5 |
|  ARTICLE 6 - | RUN-OFF REINSURERS | 8 |
|  ARTICLE 7 - | TERRITORY | 11 |
|  ARTICLE 8 - | SANCTIONS LIMITATION CLAUSE | 11 |
|  ARTICLE 9 - | EXCLUSIONS | 11 |
|  ARTICLE 10 - | SPECIAL ACCEPTANCES | 14 |
|  ARTICLE 11 - | PREMIUM | 14 |
|  ARTICLE 12 - | FLORIDA HURRICANE CATASTROPHE FUND | 15 |
|  ARTICLE 13 - | DEFINITIONS | 16 |
|  ARTICLE 14 - | EXTRA CONTRACTUAL OBLIGATIONS/EXCESS OF POLICY LIMITS | 18 |
|  ARTICLE 15 - | NET RETAINED LIABILITY | 19 |
|  ARTICLE 16 - | ORIGINAL CONDITIONS | 20 |
|  ARTICLE 17 - | NO THIRD PARTY RIGHTS | 20 |
|  ARTICLE 18 - | NOTICE OF LOSS AND LOSS SETTLEMENTS | 20 |
|  ARTICLE 19 - | CASH CALL | 20 |
|  ARTICLE 20 - | LATE PAYMENTS | 20 |
|  ARTICLE 21 - | OFFSET | 21 |
|  ARTICLE 22 - | CURRENCY | 22 |
|  ARTICLE 23 - | RESERVES AND FUNDING | 22 |
|  ARTICLE 24 - | TAXES | 26 |
|  ARTICLE 25 - | ACCESS TO RECORDS | 26 |
|  ARTICLE 26 - | CONFIDENTIALITY | 27 |
|  ARTICLE 27 - | INDEMNIFICATION AND ERRORS AND OMISSIONS | 28 |
|  ARTICLE 28 - | INSOLVENCY | 29 |
|  ARTICLE 29 - | ARBITRATION | 30 |
|  ARTICLE 30 - | SERVICE OF SUIT | 32 |

---

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **2** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

---

| | | |
|:---|:---|:---|
|  ARTICLE 31 - | SEVERABILITY | 33 |
|  ARTICLE 32 - | GOVERNING LAW | 33 |
|  ARTICLE 33 - | ENTIRE AGREEMENT | 33 |
|  ARTICLE 34 - | NON-WAIVER | 34 |
|  ARTICLE 35 - | NOTICES AND MODE OF EXECUTION | 34 |
|  ARTICLE 36 - | AGENCY AND ALLOCATION | 34 |
|  ARTICLE 37 - | INTERMEDIARY | 35 |
|  NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE - REINSURANCE - U.S.A. | NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE - REINSURANCE - U.S.A. | 37 |
|  POOLS, ASSOCIATIONS AND SYNDICATES EXCLUSION CLAUSE | POOLS, ASSOCIATIONS AND SYNDICATES EXCLUSION CLAUSE | 39 |
|  TERRORISM EXCLUSION (PROPERTY TREATY REINSURANCE) | TERRORISM EXCLUSION (PROPERTY TREATY REINSURANCE) | 41 |
|  COMMUNICABLE DISEASE EXCLUSION (PROPERTY TREATY REINSURANCE) | COMMUNICABLE DISEASE EXCLUSION (PROPERTY TREATY REINSURANCE) | 42 |
|  CYBER LOSS EXCLUSION (PROPERTY TREATY REINSURANCE) | CYBER LOSS EXCLUSION (PROPERTY TREATY REINSURANCE) | 43 |
|  FUNGI COVERAGE LIMITATION (PROPERTY CATASTROPHE REINSURANCE) | FUNGI COVERAGE LIMITATION (PROPERTY CATASTROPHE REINSURANCE) | 45 |
|  STRIKE, RIOT, CIVIL COMMOTION AND MALICIOUS ACT EXCLUSION | STRIKE, RIOT, CIVIL COMMOTION AND MALICIOUS ACT EXCLUSION | 46 |
|  TRUST AGREEMENT REQUIREMENTS CLAUSE | TRUST AGREEMENT REQUIREMENTS CLAUSE | 47 |

---

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **3** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**<u>ARTICLE 1 -</u> <u>BUSINESS COVERED</u>** 

This Contract is to indemnify the Company in respect of the liability that may accrue to the Company as a result of loss or losses arising from the peril of Named Storm(s) under Policies classified by the Company as Personal and Commercial Lines Property business, including business assumed by the Company in connection with the depopulation of policies from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Louisiana Citizens Property Insurance Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Texas Windstorm Insurance Association; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Citizens Property Insurance Corporation

in force at the inception of this Contract, or written or renewed during the term of this Contract by or on behalf of the Company, subject to the terms and conditions herein contained.

**<u>ARTICLE 2 -</u> <u>RETENTION AND LIMIT</u>** 

A. For each Excess Layer of reinsurance provided hereunder, the Reinsurer shall be liable in respect of each Loss
Occurrence for the Ultimate Net Loss over and above the initial Ultimate Net Loss (1) each Loss Occurrence, subject to a limit of liability to the Reinsurer of (2) each Loss Occurrence, and subject further to a limit of liability
(3) for all Loss Occurrences commencing during the term of this Contract, as set forth below:

---

| | | | |
|:---|:---|:---|:---|
| ***RETENTION AND LIMIT SCHEDULE*** | ***RETENTION AND LIMIT SCHEDULE*** | ***RETENTION AND LIMIT SCHEDULE*** | ***RETENTION AND LIMIT SCHEDULE*** |
| **Excess Layer** | **Company's**<br>**Retention**<br>**Ultimate Net**<br>**Loss in respect**<br>**of each Loss**<br>**Occurrence**<br>**(1)** | **Reinsurer's Limit of Liability** | **Reinsurer's Limit of Liability** |
| **Excess Layer** | **Company's**<br>**Retention**<br>**Ultimate Net**<br>**Loss in respect**<br>**of each Loss**<br>**Occurrence**<br>**(1)** | **Ultimate Net**<br>**Loss in respect**<br>**of each Loss**<br>**Occurrence**<br>**(2)** | **Ultimate Net Loss**<br>**in respect of all**<br>**Loss Occurrences**<br>**during the term of**<br>**this Contract**<br>**(3)** |
|  **First Layer** | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  **Second Layer** | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  **Third Layer:** | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  **Fourth Layer** | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  **Fifth Layer** | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  **Sixth Layer** | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **4** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

B. No Loss Occurrence shall be covered hereunder unless it involves two or more risks subject to this Contract.
The Company shall be the sole judge as to what constitutes a risk.

**<u>ARTICLE 3 -</u> <u>OTHER REINSURANCE</u>** 

A. The Company shall be permitted to carry other reinsurance, recoveries under which may inure to the benefit of
this Contract.

B. The Company shall be permitted to carry underlying reinsurance, recoveries under which shall inure solely to
the benefit of the Company and be entirely disregarded in applying all of the provisions of this Contract.

**<u>ARTICLE 4 -</u> <u>TERM</u>** 

A. This Contract shall take effect at 12:01 a.m., Standard Time, May 1, 2025, and shall remain in effect
until 12:01 a.m., Standard Time, May 1, 2026, applying to Loss Occurrences commencing during the term of this Contract. "Standard Time" shall mean standard time at the location of the loss.

B. Should this Contract expire or terminate while a Loss Occurrence covered hereunder is in progress, the
Reinsurer shall be responsible for the loss in progress in the same manner and to the same extent it would have been responsible had the Contract expired or terminated the day following the conclusion of the loss in progress.

C. Notwithstanding the expiration of this Contract as hereinabove provided, the provisions of this Contract shall
continue to apply to all obligations and liabilities of the parties incurred hereunder to the end that all such obligations and liabilities shall be fully performed and discharged.

**<u>ARTICLE 5 -</u> <u>SPECIAL TERMINATION</u>** 

A. The Company may terminate or reduce the share of a Subscribing Reinsurer at any time, either during the term or
after the expiration of this Contract, by giving written notice to the Subscribing Reinsurer in the event the Subscribing Reinsurer experiences one or more of the circumstances listed in subparagraphs A(1) through A(13) of this Article. The
effective date of termination shall be the date selected by the Company, which may be a date that is retroactively applied up to a maximum of 90 days prior to the earliest of either the date of public announcement or the date of discovery, as
applicable, of the Subscribing Reinsurer experiencing one or more of the following circumstances, subject to the condition that such selected date must be the last day of a calendar month.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **5** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Subscribing Reinsurer ceases underwriting operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. A state insurance department or other legal authority orders the Subscribing Reinsurer to cease writing
business, or the Subscribing Reinsurer is placed under regulatory supervision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Subscribing Reinsurer has become insolvent or has been placed into liquidation or receivership (whether
voluntary or involuntary), or there have been instituted against it proceedings for the appointment of a receiver, liquidator, rehabilitator, conservator, trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets
or control of its operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Subscribing Reinsurer's policyholders' surplus (or the equivalent under the Subscribing
Reinsurer's accounting system) as reported in such financial statements of the Subscribing Reinsurer as designated by the Company, has been reduced by [\*\*\*]% or more of the amount thereof at any date during the prior 12-month period (including the period prior to the inception of this Contract).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Subscribing Reinsurer has announced its intent to, or has, merged with or has become acquired or controlled
by any company, corporation, or individual(s) not controlling the Subscribing Reinsurer's operations at the inception of this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Subscribing Reinsurer has retroceded its entire liability under this Contract without the Company's
prior written consent, except for retrocessions to members of the Subscribing Reinsurer's holding company group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The Subscribing Reinsurer has been suspended or withdrawn, or has been assigned or downgraded an A.M.
Best's rating of less than "A-" and/or rating of less than "BBB+" by S&P Global Ratings. However, as respects Underwriting Members of Lloyd's, London, a Lloyd's
Market Rating of less than "A-" by A.M. Best and/or less than "BBB+" by S&P Global Ratings shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The Subscribing Reinsurer has transferred or delegated its claims-paying authority, as respects business
subject to this Contract, to an unaffiliated entity; however, agreement by a Lloyd's syndicate to follow claim settlement procedures under the Lloyd's Claims Lead Arrangements shall not constitute a transfer of its claims-paying
authority for purposes of this subparagraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The Subscribing Reinsurer engages in the process of Scheme of Arrangement or similar procedure related to this
Contract, including but not limited to an insurance business transfer scheme pursuant to Part VII of the Financial Services and Markets Act 2000 (U.K.), as may be amended from time to time.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **6** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The Subscribing Reinsurer has, in any other way, assigned its interests or delegated its obligations under this
Contract to an unaffiliated entity; however, agreement by a Lloyd's syndicate to follow claim settlement procedures under the Lloyd's Claims Lead Arrangements shall not constitute a transfer of its claims-paying authority for purposes of
this subparagraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. The Subscribing Reinsurer has failed, from the effective date of this Contract, to provide the Company, or its
appointed agent, with a valid W-8BEN-E, W-9 or other such documentation approved for use by the U.S. Internal Revenue Service in
connection with the Company's withholding, reporting or other obligations, if any, under the Foreign Account Tax Compliance Act (Sections 1471-1474 of the U.S. Internal Revenue Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. The Subscribing Reinsurer has failed to post or maintain required collateral to secure its obligations as
required under this Contract, and has not cured such deficiency within 30 days following written notice thereof from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. There is a severance or obstruction of normal commercial and/or financial intercourse between the United States
of America and the country in which the Subscribing Reinsurer is incorporated or has its principal office as a result of war, terrorism, civil disturbance, currency regulations, or any circumstances arising out of political, financial, or economic
emergency.

Unless it is prohibited by law from doing so, immediately upon the Subscribing Reinsurer's knowledge of a circumstance set forth in this paragraph, the Subscribing Reinsurer must notify the Company of such event in writing, by electronic mail, certified mail, or a nationally or internationally recognized delivery service.

B. Termination shall be effected on a cut-off basis and the Subscribing
Reinsurer shall have no liability with respect to Loss Occurrences commencing after termination. The reinsurance premium due the Subscribing Reinsurer hereunder (including any minimum reinsurance premium) shall be prorated based on the period of the
Subscribing Reinsurer's participation hereon, and the Subscribing Reinsurer shall immediately return any excess reinsurance premium received. Reinstatement premium, if any, shall be calculated based on the Subscribing Reinsurer's
reinsurance premium earned during the period of the Subscribing Reinsurer's participation hereon.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **7** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

C. Additionally, in the event of any of the circumstances listed in paragraph A of this Article, the Company shall
have the option to commute the Subscribing Reinsurer's liability for losses on Policies covered by this Contract. In the event the Company and the Subscribing Reinsurer cannot agree on the commutation amount, they shall appoint an actuary
and/or appraiser to assess such amount and shall share equally any expense of the actuary and/or appraiser. If the Company and the Subscribing Reinsurer cannot agree on an actuary and/or appraiser, the Company and the Subscribing Reinsurer each
shall nominate three individuals, of whom the other shall decline two, and the final appointment shall be made by drawing lots. Until the final resolution of any such commutation, settlements of amounts due hereunder shall continue in accordance
with the terms of this Contract. Payment by the Subscribing Reinsurer of the amount of liability ascertained shall constitute a complete and final release of both parties in respect of liability arising from the Subscribing Reinsurer's
participation under this Contract.

D. The Company's option to require commutation under paragraph C above shall survive the termination or
expiration of this Contract.

**<u>ARTICLE 6 -</u> <u>RUN-OFF REINSURERS</u>** 

A. "Run-off Reinsurer" means any Subscribing Reinsurer that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. has been ordered by a state insurance department or other legal authority to cease writing business, or has
been placed under regulatory supervision or in rehabilitation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. has ceased reinsurance underwriting operations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. has transferred its claims-paying authority to an unaffiliated entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. engages in a process of Scheme of Arrangement or similar procedure related to this Contract, including but not
limited to an insurance business transfer scheme pursuant to Part VII of the Financial Services and Markets Act 2000 (U.K.), as may be amended from time to time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. in any other way has assigned its interests or delegated its obligations under this Contract to an unaffiliated
entity.

Notwithstanding the foregoing, agreement by a Lloyd's syndicate to follow claim settlements procedures under Lloyd's Claims Lead Arrangements shall not constitute a transfer of its claims-paying authority or an assignment of its interests or a delegation of its obligations, for purposes of subparagraphs A(3) and A(5) above.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **8** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

B. Notwithstanding any other provision of this Contract, in the event that a Subscribing Reinsurer becomes a Run-off Reinsurer at any time, the Company may elect, by giving written notice to the Run-off Reinsurer at any time thereafter, that all or any of the following shall apply to
the Run-off Reinsurer's participation hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. If the Run-off Reinsurer does not pay a claim or raise a query
concerning the claim within 30 days of billing, it shall be estopped from denying such claim and must pay immediately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If payment of any claim has been received from Subscribing Reinsurers constituting at least [\*\*\*]% of the
interests and liabilities of all Subscribing Reinsurers that participated on this Contract and are active as of the due date; it being understood that said date shall not be later than 90 days from the date of transmittal by the Intermediary of the
initial billing for each such payment, the Run-off Reinsurer shall be estopped from denying such claim and must pay within 10 days following transmittal to the Run-off Reinsurer of written notification of such payments. For purposes of this subparagraph, a Subscribing Reinsurer shall be deemed to be active if it is not a Run-off Reinsurer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. In the event any payment due the Company from the Run-off Reinsurer
hereunder is not received by the Intermediary by the payment due date, the interest penalty specified in the Late Payments Article shall be increased for each such payment on the last Business Day of each month as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The number of full days that have expired since the overdue date or the last monthly calculation, whichever the
lesser; times

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. 1/365th of the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the six-month United States Treasury Bill rate as quoted in *The Wall Street Journal* on the first Business Day of the month for which the calculation is made; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. 1% plus 0.5% for each 30 days that the payment is past due, subject to a maximum of 8.0%; times

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The amount past due, including accrued interest. Interest shall accumulate until payment of the original amount
due plus interest penalties has been received by the Intermediary. However, if the interest rate provided under this subparagraph exceeds the maximum interest rate allowed by applicable law, such interest rate shall be modified to the highest rate
permitted by the applicable law.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **9** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

For purposes of this subparagraph, payments from the Run-off Reinsurer to the Company shall be due on the date on which the demand for payment (including delivery of bordereaux or quarterly or monthly reports) is received by the Run-off Reinsurer, and shall be overdue 30 days thereafter.

If the information contained in the Company's demand for payment is insufficient or not in accordance with the conditions of this Contract, then within 30 days the Run-off Reinsurer shall request from the Company all additional information necessary to validate its claim and the payment due date, as defined above, shall be deemed to be the date upon which the Run- off Reinsurer received the requested additional information. This paragraph is only for the purpose of establishing when a payment is overdue, and shall not alter the provisions of the Notice of Loss and Loss Settlements Article or other pertinent contractual stipulations.

Should the Run-off Reinsurer dispute a claim presented by the Company and the timeframes set out above be exceeded, interest as stipulated in this subparagraph shall be payable for the entire overdue period, but only for the amount of the final settlement with the Reinsurer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Run-off Reinsurer's liability for losses for Policies covered
by this Contract shall be commuted. In the event the Company and the Run-off Reinsurer cannot agree on the commutation amount of the Run-off Reinsurer's liability
under such Policies, they shall appoint an actuary and/or appraiser to assess such liability and shall share equally any expense of the actuary and/or appraiser. If the Company and the Run-off Reinsurer cannot
agree on an actuary and/or appraiser, the Company and the Run-off Reinsurer each shall nominate three individuals, of whom the other shall decline two, and the final appointment shall be made by drawing lots.
Until the final resolution of any such commutation, settlements of amounts due hereunder shall continue in accordance with the terms of this Contract. Payment by the Run-off Reinsurer of the amount of
liability ascertained shall constitute a complete and final release of both parties under this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Run-off Reinsurer shall have no right of access to the Records of
the Company if the Run-off Reinsurer has denied payment of any claim hereunder or there is a pending arbitration between the Company and the Run-off Reinsurer regarding
any claim hereunder. A reservation of rights shall be considered a denial of a claim.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **10** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Run-off Reinsurer shall immediately provide funding of liabilities
(the "Reinsurer's Obligations") as set forth in the Reserves and Funding Article. This subparagraph does not apply to the Run-off Reinsurer to the extent that the Run-off Reinsurer has already provided funding under the Reserves and Funding Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The provisions of the Arbitration Article shall not apply.

**<u>ARTICLE 7 -</u> <u>TERRITORY</u>** 

The territorial limits of this Contract shall be identical with those of the Company's Policies.

**<u>ARTICLE 8 -</u> <u>SANCTIONS LIMITATION CLAUSE</u>** 

No Reinsurer shall be deemed to provide cover and no Reinsurer shall be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose that Reinsurer to any sanction, prohibition or restriction under United Nations' resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom or United States of America.

**<u>ARTICLE 9 -</u> <u>EXCLUSIONS</u>** 

A. This Contract does not apply to and specifically excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Reinsurance assumed by the Company, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Inter-company reinsurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Policies providing facultative reinsurance of liability which, if written directly, would be covered hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Business the Company would have otherwise written on a direct basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Policies issued to state funds with respect to those interests in which the state has a direct insurable
interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Policies providing reinsurance of so-called captive insurance companies
(or reciprocal companies or risk retention groups or similar arrangements however styled) with respect to insurance written by the captive company or entity which is affiliated with the captive company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Business written at the request of the Company through any insurance company and then reinsured 100% with the
Company.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **11** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. All liability of the Company arising by contract, operation of law, or otherwise, from its participation or
membership, whether voluntary or involuntary, in any insolvency fund. "Insolvency fund" includes any guaranty fund, insolvency fund, plan, pool, association, fund or other arrangement, however denominated, established or governed, which
provides for any assessment of or payment or assumption by the Company of part or all of any claim, debt, charge, fee or other obligation of an insurer, or its successors or assigns, which has been declared by any competent authority to be
insolvent, or which is otherwise deemed unable to meet any claim, debt, charge, fee or other obligation in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Financial guarantee and insolvency business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Loss excluded by the Nuclear Incident Exclusion Clause – Physical Damage – Reinsurance –
U.S.A. – NMA 1119 attached to and forming part of this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Losses excluded by the Pools, Associations and Syndicates Exclusion Clause attached to and forming part of this
Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. All assessments from Citizens Property Insurance Corporation, Texas Windstorm Insurance Association, Louisiana
Citizens Property Insurance Corporation and the Florida Hurricane Catastrophe Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Losses in respect of overhead transmission and distribution lines and their supporting structures other than
those on or within 500-feet of the insured premises; however, public utilities extension and/or suppliers extension and/or contingent business interruption coverage are not subject to this exclusion, provided
that these are not part of a transmitters' or distributors' Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Loss or damage caused by or resulting from war, invasion, hostilities, acts of foreign enemies, civil war,
rebellion, insurrection, military or usurped power, or martial law or confiscation by order of any government or public authority, but this exclusion shall not apply to loss or damage covered under a standard Policy with a standard War Exclusion
Clause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Loss and/or damage and/or costs and/or expenses arising from seepage and/or pollution and/or contamination,
other than contamination from smoke. Nevertheless, this exclusion does not preclude payment of the cost of removing debris of property damaged by a loss otherwise covered hereunder, subject always to a limit of 25% of the Company's property
loss under the applicable original Policy.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **12** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Losses excluded by the Terrorism Exclusion (NMA 2930A) Clause attached to and forming part of this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Losses excluded by the Communicable Disease Exclusion (Property Treaty Reinsurance) (LMA 5394) Clause attached
to and forming part of this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Losses excluded by the Cyber Loss Exclusion (Property Treaty Reinsurance) (LMA 5411) Clause attached to and
forming part of this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Fungi as per the "Fungi Coverage Limitation (Property Catastrophe Reinsurance)" attached to and
forming part of this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Losses excluded by the attached Strike, Riot, Civil Commotion and Malicious Act Exclusion.

B. If the Company inadvertently issues a Policy falling within the scope of paragraph A above, other than
subparagraphs A(3), A(4), A(8), A(10), A(11) and A(14), such Policy shall be covered hereunder, provided that the Company issues, or causes to be issued, the required notice of cancellation within 30 days after a member of the executive or
managerial staff at the Company's home office having underwriting authority in the class of business involved becomes aware that the Policy applies to excluded classes, unless the Company is prevented from canceling said Policy within such
period by applicable statute or regulation, in which case such Policy shall be covered hereunder until the earliest date on which the Company may cancel.

C. Should an arbitration decision or any judicial or regulatory entity having jurisdiction invalidate any
exclusion in (or expand coverage of) the Company's Policy that is also the subject of one or more of the exclusions set forth in paragraph A above, other than subparagraphs A(3), A(4), A(8), A(10), A(11) and A(14), then a loss for which the
Company is liable because of such invalidation (or expansion) of coverage shall not be excluded hereunder.

D. The exclusions enumerated in paragraph A above, other than subparagraphs A(3), A(4), A(8), A(10), A(11) and
A(14), shall not apply when they are merely incidental to the main operations or exposures of the insured, provided such main operations or exposures are also covered by the Company and are not themselves excluded from the scope of this Contract.
The Company will be the sole judge of what is "incidental."

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **13** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**<u>ARTICLE 10 -</u> <u>SPECIAL ACCEPTANCES</u>** 

A. Business that is not within the scope of this Contract may be submitted to a Subscribing Reinsurer for special
acceptance hereunder and such business, if accepted by the Subscribing Reinsurer, shall be subject to all terms, conditions, and limitations of this Contract, except as modified by the special acceptance. Should denial of a request for special
acceptance not be received from the Reinsurer within three Business Days of the Subscribing Reinsurer's receipt of said request, the special acceptance shall be deemed automatically agreed.

B. Any special acceptance business covered under the reinsurance contract being replaced by this Contract shall be
automatically covered hereunder. Furthermore, should the Subscribing Reinsurer become a party to this Contract subsequent to the acceptance of any business not normally covered hereunder, it shall automatically accept same as being part of this
Contract.

**<u>ARTICLE 11 -</u> <u>PREMIUM</u>** 

A. As respects each Excess Layer, the Company shall pay the Reinsurer a deposit premium (2) in accordance
with the Premium Schedule set forth below. The adjusted premium to be paid to the Reinsurer for the reinsurance provided under each Excess Layer shall be calculated at the rate applicable to each Excess Layer (1) multiplied by the
Company's Probable Maximum Loss as of September 30, 2025, subject to the applicable minimum premium (3) as stated in the below Premium Schedule:

---

| | | | |
|:---|:---|:---|:---|
| ***PREMIUM SCHEDULE*** | ***PREMIUM SCHEDULE*** | ***PREMIUM SCHEDULE*** | ***PREMIUM SCHEDULE*** |
| **Excess Layer** | **Rate<br>(1)** | **Deposit Premium<br>(2)** | **Minimum<br>Premium<br>(3)** |
|  **First Layer** | [\*\*\*]% | $[\*\*\*] | $[\*\*\*] |
|  **Second Layer** | [\*\*\*]% | $[\*\*\*] | $[\*\*\*] |
|  **Third Layer** | [\*\*\*]% | $[\*\*\*] | $[\*\*\*] |
|  **Fourth Layer** | [\*\*\*]% | $[\*\*\*] | $[\*\*\*] |
|  **Fifth Layer** | [\*\*\*]% | $[\*\*\*] | $[\*\*\*] |
|  **Sixth Layer** | [\*\*\*]% | $[\*\*\*] | $[\*\*\*] |

---

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **14** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

B. The deposit premium for each excess layer set forth in paragraph A above shall be payable to the Reinsurer by
the Company in installments as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***DEPOSIT INSTALLMENT SCHEDULE*** | ***DEPOSIT INSTALLMENT SCHEDULE*** | ***DEPOSIT INSTALLMENT SCHEDULE*** | ***DEPOSIT INSTALLMENT SCHEDULE*** | ***DEPOSIT INSTALLMENT SCHEDULE*** |
| **Excess Layer** | **May 1, 2025** | **Aug 1, 2025** | **Nov 1, 2025** | **Feb 1, 2025** |
|  **First Layer** | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  **Second Layer** | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  **Third Layer** | $[\*\*\*] | $[\*\*\*] | $[\*\*\*] | $[\*\*\*] |
|  **Fourth Layer** | $[\*\*\*] | $[\*\*\*] | $[\*\*\*] | $[\*\*\*] |
|  **Fifth Layer** | $[\*\*\*] | $[\*\*\*] | $[\*\*\*] | $[\*\*\*] |
|  **Sixth Layer** | $[\*\*\*] | $[\*\*\*] | $[\*\*\*] | $[\*\*\*] |

---

C. Within 30 days after the expiration of this Contract, the Company shall provide a report to the Reinsurer
setting forth the premium due hereunder in accordance with paragraph A above. In the event that the premium so calculated exceeds [\*\*\*]% of the deposit premium paid in accordance with paragraphs A and B of this Article, the Company shall promptly
pay the Reinsurer the difference. Should the premium so calculated be less than [\*\*\*]% of the deposit premium paid in accordance with paragraphs A and B of this Article, the Reinsurer shall promptly pay the Company the difference, subject to the
minimum premiums for the term of this Contract as set forth in the Premium Schedule of paragraph A. above.

D. "Probable Maximum Loss" means the 100-year return period
probable maximum loss estimates, as respects the peril of hurricane as determined by AIR Touchstone v11.5 long term results (including standard event rates and secondary uncertainty and demand surge, but without storm surge), for the in force
insurance portfolio subject to this reinsurance, all calculated as of September 30, 2025.

E. The Company shall furnish the Reinsurer with such information as may be required by the Reinsurer for
completion of its financial statements.

**<u>ARTICLE 12 -</u> <u>FLORIDA HURRICANE CATASTROPHE FUND</u>** 

A. As respects Loss Occurrences subject to this Contract, any loss reimbursement recoverable by the Company under
the Florida Hurricane Catastrophe Fund ("FHCF"), shall be deducted in determining Ultimate Net Loss under this Contract, subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The full reimbursement amount due from the FHCF for coverage under the Mandatory Layer, based on statutory
limits of coverage as of June 1, 2025 shall be deemed recovered by the Company, whether or not actually received from the FHCF and whether or not reduced because of the FHCF's inability to pay.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **15** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Any other FHCF recoveries shall be disregarded for purposes of determining Ultimate Net Loss subject to this
Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. For purposes of allocating recoveries from the FHCF with respect to each Loss Occurrence, only amounts
recoverable by applying the pay-out and retention multiples for the FHCF prior to any reduction in retention due to multiple Loss Occurrences in the same annual period shall be included in calculating the
deduction from Ultimate Net Loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. If the Company's aggregate limit of FHCF reimbursement coverage is exhausted by losses from multiple Loss
Occurrences, and the FHCF does not designate the portion of said limit allocable to each Loss Occurrence, the FHCF reimbursement received shall be allocated to each individual Loss Occurrence in the proportion that the Company's losses in that
Loss Occurrence bear to the Company's total losses arising out of all Loss Occurrences that have exhausted the FHCF coverage.

B. For purposes of loss recoveries under this Contract prior to the final determination of the Company's
retention and limit under the 2025/2026 FHCF reimbursement contract, FHCF coverage shall be calculated using the Company's "Projected Payout Multiple" under the FHCF. Upon determination of the Company's retention and limit
under the FHCF, losses will be adjusted, recognizing any adjustment to the "Projected Payout Multiple" caused by a change in the Aggregate Mandatory FHCF Premium but disregarding any change due to a decrease in the statutory limit.

C. Any FHCF reimbursement premiums paid by the Company for FHCF layers that inure to the benefit of this Contract
shall be deemed to be premiums paid for inuring reinsurance.

**<u>ARTICLE 13 -</u> <u>DEFINITIONS</u>** 

A. "Ultimate Net Loss" means the actual loss paid by the Company or which the Company becomes liable
to pay, such loss to include the allowance for Loss Adjustment Expense, as hereinafter defined, any Extra Contractual Obligation and any Loss in Excess of Policy Limits as defined in the Extra Contractual Obligations/Excess of Policy Limits Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Salvages and all recoveries (including amounts due from all reinsurances that inure to the benefit of this
Contract, whether recovered or not), shall be first deducted from such loss to arrive at the amount of liability attaching hereunder.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **16** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. All salvages, recoveries or payments recovered or received subsequent to loss settlement hereunder shall be
applied as if recovered or received prior to the aforesaid settlement, and all necessary adjustments shall be made by the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Company shall be deemed to be "liable to pay" a loss when a judgment has been rendered that the
Company does not plan to appeal, and/or the Company has obtained a release, and/or the Company has accepted a proof of loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Nothing in this clause shall be construed to mean that losses are not recoverable hereunder until the
Company's "Ultimate Net Loss" has been ascertained.

B. "Loss Adjustment Expense" means costs and expenses incurred by the Company in connection with the
administration, investigation, negotiation, appraisal, adjustment, settlement, litigation, defense, deposition or appeal of a specific claim or loss, or alleged loss, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. court costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. costs of supersedeas and appeal bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. monitoring counsel expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. legal expenses and costs incurred in connection with coverage questions and legal actions connected thereto,
including but not limited to declaratory judgment actions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. post-judgment interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. pre-judgment interest, unless included as part of an award or judgment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. a pro rata share of salaries and expenses of Company field employees, calculated in accordance with the time
occupied in adjusting such loss, and expenses of other Company employees who have been temporarily diverted from their normal and customary duties and assigned to the field adjustment of losses covered by this Contract; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. subrogation, salvage and recovery expenses.

"Loss Adjustment Expense" does not include salaries and expenses of the Company's employees, except as provided in subparagraph B(7) above, and office and other overhead expenses.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **17** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

Notwithstanding the foregoing, for the purposes of this Contract, it is understood that Ultimate Net Loss shall include an allowance for Loss Adjustment Expense, which shall be equal to [\*\*\*]% of all other amounts included within Ultimate Net Loss as defined in this Article.

C. "Loss Occurrence" means the sum of all individual losses sustained by the Company arising out of
and directly occasioned by any one "Named Storm," including any other peril directly resulting therefrom. "Named Storm" means any storm or storm system declared by the US National Hurricane Center, US Central Pacific
Hurricane Center, US Weather Prediction Center, or their successor organizations, all being divisions of the US National Weather Service to be a tropical storm or hurricane, and any successors thereof. A storm or storm system that merges with a
"Named Storm" shall be considered part of that "Named Storm," once it has merged. A "Named Storm" shall be deemed to begin at the effective time and date of the first watch, warning or other official advisory
applicable to such tropical storm or hurricane issued by the above referenced governmental meteorological agencies. A "Named Storm" shall be deemed to end 96 hours after the cancellation of the last watch, warning or other official
advisory applicable to such tropical storm, hurricane or successor, issued by the above referenced governmental meteorological agencies irrespective of the duration of the timing or spacing between such watches, warnings or other official
advisories. If the storm tracks of two or more Named Storms cross and one Named Storm absorbs the other or both Named Storms dissipate, all individual losses sustained by the Company up to the time and date of any such absorption or dissipation
shall remain allocated to the Named Storm which directly occasioned them.

D. "Policy" means any binder, policy, or contract of insurance or reinsurance issued, accepted or held
covered provisionally or otherwise, by or on behalf of the Company.

E. "Business Day" means a day that is not a Saturday, Sunday or a U.S. federal holiday.

**<u>ARTICLE 14 - EXTRA CONTRACTUAL OBLIGATIONS/EXCESS OF POLICY LIMITS</u>**

A. This Contract shall cover Extra Contractual Obligations, as provided in the definition of Ultimate Net Loss.
"Extra Contractual Obligations" shall be defined as those liabilities not covered under any other provision of this Contract and that arise from the handling of any claim on business covered hereunder, such liabilities arising because
of, but not limited to, the following: failure by the Company to settle within the Policy limit, or by reason of alleged or actual negligence, fraud or bad faith in rejecting an offer of settlement or in the preparation of the defense or in the
trial of any action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such action.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **18** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

B. This Contract shall cover Loss in Excess of Policy Limits, as provided in the definition of Ultimate Net Loss.
"Loss in Excess of Policy Limits" shall be defined as Loss in excess of the Policy limit, having been incurred because of, but not limited to, failure by the Company to settle within the Policy limit or by reason of alleged or actual
negligence, fraud or bad faith in rejecting an offer of settlement or in the preparation of the defense or in the trial of any action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such action.

C. An Extra Contractual Obligation and/or Loss in Excess of Policy Limits shall be deemed to have occurred on the
same date as the loss covered under the Company's Policy, and shall constitute part of the original loss.

D. For the purposes of the Loss in Excess of Policy Limits coverage hereunder, the word "Loss" shall
mean any amounts for which the Company would have been contractually liable to pay had it not been for the limit of the original Policy.

E. Loss Adjustment Expense in respect of Extra Contractual Obligations and/or Loss in Excess of Policy Limits
shall be covered hereunder in the same manner as other Loss Adjustment Expense.

F. However, this Article shall not apply where the loss has been incurred due to a final, non-appealable legal adjudication of fraud of a member of the Board of Directors or a corporate officer of the Company acting individually or collectively or in collusion with any individual or corporation or any
other organization or party involved in the presentation, defense or settlement of any claim covered hereunder.

G. In no event shall coverage be provided to the extent not permitted under law.

**<u>ARTICLE 15 -</u> <u>NET RETAINED LIABILITY</u>** 

A. This Contract applies only to that portion of any loss that the Company retains net for its own account (prior
to deduction of any reinsurance that inures solely to the benefit of the Company).

B. The amount of the Reinsurer's liability hereunder in respect of any loss or losses shall not be increased
by reason of the inability of the Company to collect from any other reinsurer(s), whether specific or general, any amounts that may have become due from such reinsurer(s), whether such inability arises from the insolvency of such other reinsurer(s)
or otherwise.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **19** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**<u>ARTICLE 16 -</u> <u>ORIGINAL CONDITIONS</u>** 

All reinsurance under this Contract shall be subject to the same terms, conditions, waivers and interpretations, and to the same modifications and alterations as the respective Policies of the Company. However, in no event shall this be construed in any way to provide coverage outside the terms and conditions set forth in this Contract.

**<u>ARTICLE 17 -</u> <u>NO THIRD PARTY RIGHTS</u>** 

This Contract is solely between the Company and the Reinsurer, and in no instance shall any insured, claimant or other third party have any rights under this Contract except as may be expressly provided otherwise herein.

**<u>ARTICLE 18 -</u> <u>NOTICE OF LOSS AND LOSS SETTLEMENTS</u>** 

A. The Company shall advise the Reinsurer promptly of all losses that, in the opinion of the Company, may result
in a claim hereunder and of all subsequent developments thereto that may materially affect the position of the Reinsurer.

B. The Company alone and at its full discretion shall adjust, settle or compromise all claims and losses.

C. As respects losses subject to this Contract, all loss settlements made by the Company, whether under strict
Policy terms or by way of compromise, and any Extra Contractual Obligations and/or Loss in Excess of Policy Limits, shall be binding upon the Reinsurer, and the Reinsurer agrees to pay or allow, as the case may be, its share of each such settlement
immediately upon receipt of proof of loss, provided such settlements are within the terms of this Contract.

**<u>ARTICLE 19 -</u> <u>CASH CALL</u>** 

Notwithstanding the provisions of the Notice of Loss and Loss Settlements Article, upon the request of the Company, the Reinsurer shall pay any amount with regard to a loss settlement or settlements that are scheduled to be made (including any payments projected to be made) within the next 30 days by the Company, subject to receipt by the Reinsurer of a satisfactory proof of loss. Such agreed payment shall be made within five days from the date the demand for payment was transmitted to the Reinsurer.

**<u>ARTICLE 20 -</u> <u>LATE PAYMENTS</u>** 

(The provisions of this Article shall not be implemented unless specifically invoked by the Company in writing.)

A. In the event that any amount due the Company is not received by the Intermediary hereunder by the payment due
date, the Company may, by notifying the Intermediary in writing, require the Reinsurer to pay, and the Reinsurer agrees to pay, an interest penalty on the amount past due calculated for each such payment on the last Business Day of each month as
follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The number of full days which have expired since the due date or the last monthly calculation, whichever the
lesser; multiplied by

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **20** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. 1/365th of a rate equal to the U.S. Prime Rate as published in *The Wall Street Journal* on the
first Business Day following the date a **  remittance becomes due plus 3%; multiplied by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The amount past due, including accrued interest.

It is agreed that interest shall accumulate until payment of the original amount due plus interest penalties has been received by the Intermediary.

B. The establishment of the payment due date shall, for purposes of this Article, be determined in accordance with
the applicable Article of this Contract.

C. For purposes of interest calculation only, amounts due hereunder shall be deemed paid upon receipt by the
Intermediary. The validity of any claim or payment may be contested under the provisions of this Contract. If the Reinsurer prevails in an arbitration, or any other proceeding, there shall be no interest penalty due. Otherwise, any interest shall be
calculated and due as outlined above. Furthermore, if the Reinsurer pays any claim hereunder that it is contesting and prevails in such action, the Company shall return such payment plus pay interest on same, at a rate calculated as per the
provisions of paragraph A, above; however, such calculation is to begin from the actual date of remittance of funds from the Reinsurer through the date the funds are returned.

**<u>ARTICLE 21 -</u> <u>OFFSET</u>** 

A. The Company and the Reinsurer may offset any balance or amount due from one party to the other under the terms
of this Contract or any other contract heretofore or hereafter entered into by and between them, whether acting as ceding company or assuming reinsurer. However, in the event of the insolvency, administrative supervision, or receivership of a party
hereto, offsets shall be allowed only in accordance with applicable statutes and regulations. For the purposes of determining the date when a party's obligation is incurred with regards to liability for premium (including any deposits and
reinstatements) under such statutes and regulations, the Company and the Reinsurer hereby agree that such date shall be the occurrence of a covered event resulting in Loss under the Contract.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **21** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

B. Should the Company go into liquidation or should a receiver be appointed, all amounts due, or that would become
due (including all deposits and reinstatements, net of adjustments, if any) either the Company or Reinsurer, whether by reason of premium, losses, or otherwise under this Contract or any other contract heretofore or hereafter entered between the
parties (whether such contract is all assumed or ceded), shall be subject to the right of offset at any time and from time to time, and upon the exercise of the same, only the net balance shall be due.

**<u>ARTICLE 22 -</u> <u>CURRENCY</u>** 

A. Where the word "dollars" and/or the sign "$" appear in this Contract, they shall mean
United States dollars.

B. For purposes of this Contract, where the Company receives premiums or pays losses in currencies other than
United States dollars, such premiums or losses shall be converted into United States dollars at the actual rates of exchange at the date these premiums or losses are entered in the Company's books.

**<u>ARTICLE 23 -</u> <u>RESERVES AND FUNDING</u>** 

A. This Article applies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. only to the extent a Subscribing Reinsurer does not qualify for credit with any insurance regulatory authority
having jurisdiction over the Company's reserves, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. to a Subscribing Reinsurer qualified as a reciprocal jurisdiction reinsurer with any such insurance regulatory
authority in the event such Subscribing Reinsurer resists enforcement of a final judgment that is enforceable under the law of the jurisdiction in which it was obtained or a properly enforceable arbitration or arbitral award obtained by the Company
or any legal successor, in which case such Subscribing Reinsurer shall fund 100% of its share of the Reinsurer's Obligations as hereinafter provided.

B. As regards Policies issued by the Company coming within the scope of this Contract, the Company agrees that,
when it files with the insurance regulatory authority or sets up on its books reserves for liabilities which it is required by law to set up, it shall forward to the Subscribing Reinsurer a report showing the proportion of such reserves which is
applicable to the Subscribing Reinsurer. The Subscribing Reinsurer shall fund 100% of its portion of such reserves in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Loss and Loss Adjustment Expense paid by the Company but not recovered from the Subscribing Reinsurer;

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **22** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Known outstanding losses that have been reported to the Subscribing Reinsurer and loss expense relating
thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Reserves for loss and Loss Adjustment Expense incurred but not reported;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Unearned premium (if applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. All other amounts for which the Company cannot take credit on its financial statements unless funding is
provided by the Subscribing Reinsurer;

as shown in the report prepared by the Company (hereinafter referred to as "Reinsurer's Obligations"). The Reinsurer's Obligations shall be funded by funds withheld, cash advances, escrow accounts for the benefit of the Company, Letters of Credit ("LOC"), Trust Account, or a combination thereof. The Subscribing Reinsurer shall have the option of determining the method of funding, subject always to the provision that (a) the method of funding and (b) the terms and provisions of any such LOC or Trust Account and (c) the quality of assets in any Trust Account are all acceptable to the Company and also meet the requirements of each applicable insurance regulatory authority having jurisdiction over the Company's reserves. In the event a provision of any such funding instrument jeopardizes the Company's ability to obtain full credit for reinsurance, such provision shall be void and shall be amended to comply with applicable credit for reinsurance requirements. The Subscribing Reinsurer shall provide funding and/or any adjustments thereto in time for the Company to meet the requirements of each applicable insurance regulatory authority having jurisdiction over the Company's reserves.

C. When funding in whole or in part by an LOC, the Subscribing Reinsurer agrees to apply for and secure timely
delivery to the Company of a clean, irrevocable and unconditional LOC dated on or before December 31 of the year in which the request is made (on or before the last day of the calendar quarter for any quarterly adjustment), issued by a member
of the Federal Reserve System or any bank approved for use by the NAIC Securities Valuation Office, and containing provisions acceptable to the insurance regulatory authorities having jurisdiction over the Company's reserves in an amount equal
to the Reinsurer's Obligations. Such LOC shall be issued for a period of not less than one year and shall include an "evergreen clause," which automatically extends the term for at least one additional year at each expiration date
unless 60 days (or such other time period as may be required by the applicable insurance regulatory authorities) prior to any expiration date the issuing bank notifies the Company by certified or registered mail that the issuing bank elects not to
consider the LOC extended for any additional period. Further, when funding by LOC, if the issuing bank has been put under negative credit watch by a major rating agency or is

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **23** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

removed from the list of banks approved by the NAIC Securities Valuation Office, the Company may require that a replacement LOC be issued by a bank acceptable to the Company, by providing the Subscribing Reinsurer with written notice requesting such replacement LOC. If the Subscribing Reinsurer fails to provide acceptable replacement security within 10 Business Days following receipt of the Company's notice, the Company may draw upon the existing LOC in amounts equal to the Reinsurer's Obligations.

D. The Subscribing Reinsurer and Company agree that any funding provided by the Subscribing Reinsurer pursuant to
the provisions of this Contract may be drawn upon at any time, notwithstanding any other provision of this Contract, and be utilized by the Company or any successor, by operation of law, of the Company including, without limitation, any liquidator,
rehabilitator, receiver or conservator of the Company for the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. To reimburse the Company for the Subscribing Reinsurer's share of unearned premium on Policies reinsured
hereunder on account of cancellations of such Policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. To reimburse the Company for the Reinsurer's Obligations, the payment of which is due under the terms of
this Contract and which has not been otherwise paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. To make refund of any sum which is in excess of the actual amount required to pay the Reinsurer's
Obligations under this Contract (or in excess of [\*\*\*]% of Reinsurer's Obligations, if funding is provided by a Trust Account);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. To fund an account with the Company for the Reinsurer's Obligations if such LOC is under notice of non-renewal or not replaced by the Subscribing Reinsurer within 10 days prior to its expiration. Such cash deposit shall be held in an interest bearing account separate from the Company's other assets, and
interest thereon not in excess of the prime rate shall accrue to the benefit of the Subscribing Reinsurer. Any taxes payable on accrued interest shall be paid out of the assets in the account that are in excess of the Reinsurer's Obligations
(or in excess of [\*\*\*]% of the Reinsurer's Obligations, if funding is provided by a Trust Account). If the assets are inadequate to pay taxes, any taxes due shall be paid by the Subscribing Reinsurer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. To pay the Subscribing Reinsurer's share of any other amounts the Company claims are due under this
Contract.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **24** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

In the event the amount drawn by the Company on any funding provided by the Subscribing Reinsurer is in excess of the actual amount required for subparagraph D(1), D(2), or D(4) or, in the case of subparagraph D(5), the actual amount determined to be due, the Company shall promptly return to the Subscribing Reinsurer the excess amount so drawn. All of the foregoing shall be applied without diminution because of insolvency on the part of the Company or the Subscribing Reinsurer.

E. The issuing bank shall have no responsibility whatsoever in connection with the propriety of withdrawals made
by the Company or the disposition of funds withdrawn, except to ensure that withdrawals are made only upon the order of properly authorized representatives of the Company.

F. At annual intervals, or more frequently at the discretion of the Company, but never more frequently than
quarterly, the Company shall prepare a specific report of the Reinsurer's Obligations, for the sole purpose of amending the LOC or other method of funding, in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. If the report shows that the Reinsurer's Obligations exceed the available balance of the funds withheld
and/or cash advances and/or escrow accounts and/or LOC and/or Trust Account as of the report date, the Subscribing Reinsurer shall, within 30 days after receipt of notice of such excess, make an adjustment to increase the available balance of funds
withheld and/or cash advances and/or escrow accounts and/or LOC and/or Trust Account by the amount of such excess. Should another method of funding be used, the Subscribing Reinsurer shall, within the time period outlined above, increase such
funding by the amount of such difference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If, however, the report shows that the Reinsurer's Obligations are less than the available balance of the
funds withheld and/or cash advances and/or escrow accounts and/or LOC and/or Trust Account, as of the report date, the Company shall, within 30 days after receipt of written request from the Subscribing Reinsurer, release such excess funding by
making or allowing an adjustment to the funds withheld and/or cash advances and/or escrow accounts and/or LOC and/or Trust Account. Where the Reinsurer is funding via a Trust Account, only amounts in excess of [\*\*\*]% of Reinsurer's Obligations
shall be subject to release under this paragraph.

G. Should the Subscribing Reinsurer be in breach of its obligations under this Article, notwithstanding anything
to the contrary elsewhere in this Contract, the Company may seek relief in respect of said breach from any court having competent jurisdiction over the parties hereto.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **25** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**<u>ARTICLE 24 -</u> <u>TAXES</u>** 

A. In consideration of the terms under which this Contract is issued, the Company undertakes not to claim any
deduction of the premium hereon when making Canadian tax returns or when making tax returns, other than Income or Profits Tax returns, to any state or territory of the United States of America or to the District of Columbia.

B. Each Subscribing Reinsurer has agreed to allow, for the purpose of paying the Federal Excise Tax, the
applicable percentage of the premium payable hereon (as imposed under the Internal Revenue Code) to the extent such premium is subject to Federal Excise Tax. Should the Reinsurer claim exempt status from Federal Excise Tax, it shall provide to the
Company, upon its request, proof that the exempt status adequately satisfies the rules as imposed under the Internal Revenue Code and any other applicable U.S. government authority.

C. In the event of any return of premium becoming due hereunder, the Subscribing Reinsurer shall deduct the
applicable percentage of the premium from the amount of the return, and the Company or its agent should take steps to recover the Tax from the U.S. Government.

D. As respects premiums ceded to the Reinsurer under this Contract, the Reinsurer agrees to indemnify the Company
for any liability, expense, interest, or penalty it may incur by reason of the Reinsurer's breach of this Article.

**<u>ARTICLE 25 -</u> <u>ACCESS TO RECORDS</u>** 

A. The Reinsurer or its duly authorized representatives shall have the right to visit the offices of the Company
to inspect, examine, audit, and verify any of the policy, accounting or claim files ("Records") relating to business reinsured under this Contract during regular business hours after giving five Business Days' prior notice. This
right shall be exercisable during the term of this Contract or after the expiration of this Contract. Notwithstanding the above, the Reinsurer shall not have any right of access to the Records of the Company if it is not current in all undisputed
payments due the Company.

B. Notwithstanding the above, the Company reserves the right to withhold from the Reinsurer any Privileged
Documents. However, the Company shall permit and not object to the Reinsurer's access to Privileged Documents in connection with the underlying claim reinsured hereunder following final settlement or final adjudication of the case or cases
involving such claim, with prejudice against all claimants and all parties to such adjudications; the Company may defer release of such Privileged Documents if there are subrogation, contribution, or other third party actions with respect to that
claim or case, and the Company's defense might be jeopardized by release of such Privileged Documents. In the

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **26** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

event that the Company seeks to defer release of such Privileged Documents, it shall, in consultation with the Reinsurer, take other steps as reasonably necessary to provide the Reinsurer with the information it reasonably requires to indemnify the Company without causing a loss of such privileges or protections. The Reinsurer shall not have access to Privileged Documents relating to any dispute between the Company and the Reinsurer.

C. For purposes of this Article:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. "Privileged Documents" means any documents that are Attorney-Client Privilege Documents and/or Work
Product Privilege Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. "Attorney-Client Privilege Documents" means communications of a confidential nature between
(a) the Company, or anyone retained by or at the direction of the Company, or its in house or outside legal counsel, or anyone in the control of such legal counsel, and (b) any in-house or outside
legal counsel, if such communications relate to legal advice being sought by the Company and/or contain legal advice being provided to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. "Work Product Privilege Documents" means communications, written materials and tangible things
prepared by or for in-house or outside counsel, or prepared by or for the Company, in anticipation of or in connection with litigation, arbitration, or other dispute resolution proceedings.

**<u>ARTICLE 26 -</u> <u>CONFIDENTIALITY</u>** 

A. The Reinsurer hereby acknowledges that the documents, information and data provided to it by the Company,
whether directly or through an authorized agent, in connection with the placement and execution of this Contract ("Confidential Information") are proprietary and confidential to the Company. Confidential Information shall not include
documents, information or data that the Reinsurer can show:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. are publicly known or have become publicly known through no unauthorized act of the Reinsurer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. have been rightfully received from a third person without obligation of confidentiality;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. were known by the Reinsurer prior to the placement of this Contract without an obligation of confidentiality;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. were independently developed by the Reinsurer.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **27** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

B. Absent the written consent of the Company, the Reinsurer shall not disclose any Confidential Information to any
third parties, including any affiliated companies, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. when required by retrocessionaires subject to the business ceded to this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. when required by regulators performing an audit of the Reinsurer's records and/or financial condition; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. when required by external auditors performing an audit of the Reinsurer's records in the normal course of
business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. when required by its legal counsel.

Further, the Reinsurer agrees not to use any Confidential Information for any purpose not related to the performance of its obligations or enforcement of its rights under this Contract.

C. Notwithstanding the above, in the event that the Reinsurer is required by court order, other legal process or
any regulatory authority to release or disclose any or all of the Confidential Information, the Reinsurer agrees to provide the Company with written notice of same at least 10 days prior to such release or disclosure, to the extent legally
permissible, and to use reasonable efforts to assist the Company in maintaining the confidentiality provided for in this Article.

D. The provisions of this Article shall extend to the officers, directors and employees of the Reinsurer and its
affiliates, and shall be binding upon their successors and assigns.

**<u>ARTICLE 27 -</u> <u>INDEMNIFICATION AND ERRORS AND OMISSIONS</u>** 

A. The Reinsurer is reinsuring, subject to the terms and conditions of this Contract, the obligations of the
Company under any Policy. The Company shall be the sole judge as to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. what shall constitute a claim or loss covered under any Policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the Company's liability thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. the amount or amounts that it shall be proper for the Company to pay thereunder.

B. The Reinsurer shall be bound by the judgment of the Company as to the obligation(s) and liability(ies) of the
Company under any Policy.

C. Any inadvertent error, omission or delay in complying with the terms and conditions of this Contract shall not
be held to relieve either party hereto from any liability that would attach to it hereunder if such error, omission or delay had not been made, provided such error, omission or delay is rectified immediately upon discovery.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **28** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**<u>ARTICLE 28 -</u> <u>INSOLVENCY</u>** 

A. If more than one reinsured company is referenced within the definition of "Company" in the Preamble
to this Contract, this Article shall apply severally to each such company. Further, this Article and the laws of the domiciliary state shall apply in the event of the insolvency of any company covered hereunder. In the event of a conflict between
any provision of this Article and the laws of the domiciliary state of any company covered hereunder, that domiciliary state's laws shall prevail.

B. In the event of the insolvency of the Company, this reinsurance (or the portion of any risk or obligation
assumed by the Reinsurer, if required by applicable law) shall be payable directly to the Company, or to its liquidator, receiver, conservator or statutory successor, either: (1) on the basis of the liability of the Company, or (2) on the
basis of claims filed and allowed in the liquidation proceeding, whichever may be required by applicable statute, without diminution because of the insolvency of the Company or because the liquidator, receiver, conservator or statutory successor of
the Company has failed to pay all or a portion of any claim. It is agreed, however, that the liquidator, receiver, conservator or statutory successor of the Company shall give written notice to the Reinsurer of the pendency of a claim against the
Company indicating the Policy or bond reinsured, which claim would involve a possible liability on the part of the Reinsurer within a reasonable time after such claim is filed in the conservation or liquidation proceeding or in the receivership, and
that during the pendency of such claim, the Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated any defense or defenses that it may deem available to the Company or its
liquidator, receiver, conservator or statutory successor. The expense thus incurred by the Reinsurer shall be chargeable, subject to the approval of the court, against the Company as part of the expense of conservation or liquidation to the extent
of a pro rata share of the benefit that may accrue to the Company solely as a result of the defense undertaken by the Reinsurer.

C. Where two or more reinsurers are involved in the same claim and a majority in interest elect to interpose
defense to such claim, the expense shall be apportioned in accordance with the terms of this reinsurance Contract as though such expense had been incurred by the Company.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **29** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

D. As to all reinsurance made, ceded, renewed or otherwise becoming effective under this Contract, the reinsurance
shall be payable as set forth above by the Reinsurer to the Company or to its liquidator, receiver, conservator or statutory successor, (except as provided by Section 4118(a)(1)(A) of the New York Insurance Law, provided the conditions of
1114(c) of such law have been met, if New York law applies) or except (1) where the Contract specifically provides another payee in the event of the insolvency of the Company, or (2) where the Reinsurer, with the consent of the direct
insured or insureds, has assumed such policy obligations of the Company as direct obligations of the Reinsurer to the payees under such Policies and in substitution for the obligations of the Company to such payees. Then, and in that event only, the
Company, with the prior approval of the certificate of assumption on New York risks by the Superintendent of Financial Services of the State of New York, or with the prior approval of such other regulatory authority as may be applicable, is entirely
released from its obligation and the Reinsurer shall pay any loss directly to payees under such Policy.

**<u>ARTICLE 29 -</u> <u>ARBITRATION</u>** 

A. Any dispute arising out of the interpretation, performance or breach of this Contract, including the formation
or validity thereof, shall be submitted for decision to a panel of three arbitrators. Notice requesting arbitration shall be in writing and sent certified or registered mail, return receipt requested.

B. One arbitrator shall be chosen by each party and the two arbitrators shall then choose an impartial third
arbitrator who shall preside at the hearing. If either party fails to appoint its arbitrator within 30 days after being requested to do so by the other party, the latter, after 10 days' prior notice by certified or registered mail of its
intention to do so, may appoint the second arbitrator.

C. If the two arbitrators do not agree on a third arbitrator within 60 days of their appointment, the third
arbitrator shall be chosen in accordance with the procedures for selecting the third arbitrator in force on the date the arbitration is demanded, established by the AIDA Reinsurance and Insurance Arbitration Society – U.S.
("ARIAS"). The arbitrators shall be persons knowledgeable about insurance and reinsurance who have no personal or financial interest in the result of the arbitration. If a member of the panel dies, becomes disabled or is otherwise
unwilling or unable to serve, a substitute shall be selected in the same manner as the departing member was chosen and the arbitration shall continue without additional delay.

D. Within 30 days after all arbitrators have been appointed, the panel shall meet and determine timely periods for
briefs, discovery procedures and schedules of hearings.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **30** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

E. The panel shall be relieved of all judicial formality and shall not be bound by the strict rules of procedure
and evidence. Notwithstanding anything to the contrary in this Contract, the arbitrators may at their discretion, consider underwriting and placement information provided by the Company to the Reinsurer, as well as any correspondence exchanged by
the parties that is related to this Contract. The arbitration shall take place in Tampa, Florida, or at such other place as the parties shall agree. The decision of any two arbitrators shall be in writing and shall be final and binding. The panel is
empowered to grant interim relief as it may deem appropriate.

F. The panel shall interpret this Contract as an honorable engagement rather than as merely a legal obligation and
shall make its decision considering the custom and practice of the applicable insurance and reinsurance business as promptly as possible after the hearings. Either party may apply to any court having jurisdiction for an order confirming the decision
and award. If such an order is issued, the party applying for such an order shall be entitled to recover attorney's fees and court costs from the party against whom confirmation is sought.

G. Arbitration proceedings are subject to consolidation as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Single contract, multiple reinsurers, common issue: If more than one Subscribing Reinsurer is involved in
arbitration where there are common questions of law or fact and a possibility of conflicting awards or inconsistent results, all such Subscribing Reinsurers, at the Company's request, shall be joined in a single arbitration proceeding and
shall constitute and act as one party for purposes of this Article and communications shall be made by the Company to each of the Subscribing Reinsurers constituting the one party; provided, however, that nothing therein shall impair the rights of
such Subscribing Reinsurers to assert several, rather than joint defenses or claims, nor be construed as changing the liability of the Reinsurers under the terms of this Contract from several to joint.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Single reinsurer, multiple contracts, common issue: If any Subscribing Reinsurer to this Contract has
subscribed to other reinsurance contracts with the Company, under which a dispute has arisen where there are common questions of law or fact with the dispute being arbitrated under this Contract and a possibility of conflicting awards or
inconsistent results, the Subscribing Reinsurer, at the Company's request, shall arbitrate all such reinsurance disputes involving the same loss or common questions of law or fact in one consolidated proceeding, subject to the provisions of
this Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Single reinsurer, multiple contracts: If any Subscribing Reinsurer to this Contract has subscribed to other
reinsurance contracts with the Company and various disputes have arisen under such contracts, regardless of whether or not there are common questions of law or fact, if mutually agreed to by the parties hereto, the parties shall arbitrate all
reinsurance disputes in one consolidated proceeding, subject to the provisions of this Article.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **31** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

The agreement to consolidate disputes under this Contract and one or more other reinsurance contracts will supersede all other reinsurance contracts entered into between the Company and the Reinsurer, regardless of whether any other reinsurance contract may require or address consolidation.

H. Each party shall bear the expense of its own arbitrator and shall jointly and equally bear with the other party
the cost of the third arbitrator. The remaining costs of the arbitration shall be allocated by the panel. The panel may, at its discretion, award such further costs and expenses as it considers appropriate, including but not limited to
attorneys' fees, to the extent permitted by law.

**<u>ARTICLE 30 -</u> <u>SERVICE OF SUIT</u>** 

A. This Article applies only to those Reinsurers not domiciled in the United States of America, and/or not
authorized in any state, territory and/or district of the United States of America where authorization is required by insurance regulatory authorities.

B. This Article shall not be read to conflict with or override the obligations of the parties to arbitrate their
disputes as provided for in the Arbitration Article. This Article is intended as an aid to compelling arbitration or enforcing such arbitration or arbitral award, not as an alternative to the Arbitration Article for resolving disputes arising out of
this Contract.

C. In the event of the failure of the Subscribing Reinsurer to perform its obligations under this Contract, the
Subscribing Reinsurer, at the request of the Company, shall submit to the jurisdiction of a court of competent jurisdiction within the United States. Nothing in this Article constitutes or should be understood to constitute a waiver of the
Subscribing Reinsurer's rights to commence an action in any court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case to another court as permitted by the laws
of the United States or of any state in the United States. The Subscribing Reinsurer, once the appropriate court is selected, whether such court is the one originally chosen by the Company and accepted by the Subscribing Reinsurer or is determined
by removal, transfer, or otherwise, as provided for above, shall comply with all requirements necessary to give said court jurisdiction and, in any suit instituted against the Subscribing Reinsurer upon this Contract, shall abide by the final
decision of such court or of any appellate court in the event of an appeal.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **32** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

D. Service of process in such suit may be made upon Mendes & Mount, LLP, 750 Seventh Avenue, New York,
New York 10019-6829, or another party specifically designated in the applicable Interests and Liabilities Agreement attached hereto. As respects Lloyd's underwriters, service of process shall be made upon Lloyd's America, Inc.,
Attention: Legal Department, 280 Park Avenue, East Tower, 25th Floor, New York, NY 10017. The above-named are authorized and directed to accept service of process on behalf of the Subscribing Reinsurer in any such suit.

E. Further, pursuant to any statute of any state, territory or district of the United States that makes provision
therefor, the Subscribing Reinsurer hereby designates the party named in its Interests and Liabilities Agreement, or if no party is named therein, the Superintendent, Commissioner or Director of Insurance, or other officer specified for that purpose
in the statute, or his successor or successors in office, as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Company or any beneficiary hereunder arising out
of this Contract, and hereby designates the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof.

**<u>ARTICLE 31 -</u> <u>SEVERABILITY</u>** 

If any provision of this Contract shall be rendered illegal or unenforceable by the laws, regulations or public policy of any jurisdiction, such provision shall be considered void in such jurisdiction, but this shall not affect the validity or enforceability of any other provision of this Contract or the enforceability of such provision in any other jurisdiction.

**<u>ARTICLE 32 -</u> <u>GOVERNING LAW</u>** 

This Contract shall be governed as to performance, administration and interpretation by the laws of the State of Florida, exclusive of conflict of law rules. However, with respect to credit for reinsurance, the rules of all applicable states shall apply.

**<u>ARTICLE 33 -</u> <u>ENTIRE AGREEMENT</u>** 

This Contract sets forth all of the duties and obligations between the Company and the Reinsurer and supersedes any and all prior or contemporaneous written agreements with respect to matters referred to in this Contract. This Contract may not be modified or changed except by an amendment to this Contract in writing signed by both parties. However, this Article shall not be construed as 1) limiting the admissibility of evidence regarding the formation, interpretation, purpose or intent of this Contract, nor 2) excluding any special acceptance made in accordance with the provisions of this Contract.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **33** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**<u>ARTICLE 34 -</u> <u>NON-WAIVER</u>** 

The failure of the Company or the Reinsurer to insist on compliance with this Contract or to exercise any right or remedy hereunder shall not constitute a waiver of any rights contained in this Contract nor prevent either party from thereafter demanding full and complete compliance nor prevent either party from exercising such remedy in the future.

**<u>ARTICLE 35 -</u> <u>NOTICES AND MODE OF EXECUTION</u>** 

A. Whenever a notice, statement, report or any other written communication is required by this Contract, unless
otherwise specified, such notice, statement, report or other written communication may be transmitted by certified or registered mail, nationally or internationally recognized express delivery service, personal delivery, or electronic mail. With the
exception of notices of termination, first class mail is also acceptable.

B. This Contract may be executed by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. an original written ink signature of paper documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. an exchange of facsimile copies showing the original written ink signature of paper documents; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. electronic signature technology employing computer software and a digital signature or digitizer pen pad to
capture a person's handwritten signature in such a manner that the signature is unique to the person signing, is under the sole control of the person signing, is capable of verification to authenticate the signature and is linked to the
document signed in such a manner that if the data is changed, such signature is invalidated.

C. The use of any one or a combination of these methods of execution shall constitute a legally binding and valid
signing of this Contract. This Contract may be executed in one or more counterparts, each of which, when duly executed, shall be deemed an original.

**<u>ARTICLE 36 -</u> <u>AGENCY AND ALLOCATION</u>** 

A. For purposes of this Contract, including the sending and receiving of notices and payments, Safepoint Insurance
Company shall be deemed the agent of Safepoint Insurance Company, Cajun Underwriters Reciprocal Exchange and Manatee Insurance Exchange. In no event, however, shall any reinsured entity be deemed the agent of another with respect to the terms of the
Insolvency Article.

B. Each reinsured company to this Contract agrees to honor the terms set forth herein as if this Contract were a
separate agreement between the Reinsurer and each individually named reinsured company.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **34** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

Notwithstanding the provisions of the Offset Article, balances payable or recoverable by a Subscribing Reinsurer or individual reinsured company shall not serve to offset any balances payable or recoverable to or from any other reinsured company to this Contract. Notwithstanding anything contained in this Article, the Reinsurer's limit of liability for all Loss Occurrences and for all reinsured companies during the term of this Contract, shall be limited as set forth in Retention and Limit Article.

C. If a loss reinsured under this Contract involves more than one entity reinsured hereunder, Safepoint shall
allocate the reinsurance recoveries for such loss to the reinsured entities based on the Reinsurance Allocation Agreement approved by the Florida Office of Insurance Regulation and Louisiana Department of Insurance. Safepoint shall also allocate the
premium due the Reinsurer or any return premium due from the Reinsurer to the reinsured entities based on said Reinsurance Allocation Agreement.

D. In the event that a difference of opinion or dispute arises between any entity reinsured hereunder as to the
allocation of a reinsurance recovery or return premium under this Contract, and the Reinsurer has paid the total amount of such reinsurance recovery or return premium to the Company, the Reinsurer shall have no further liability to any entity
reinsured hereunder with respect to such reinsurance recovery or return premium. Nor shall the Reinsurer have any obligation to participate in the resolution of any such difference of opinion or dispute, whether by arbitration or otherwise.

E. Further, each entity reinsured hereunder agrees to indemnify and hold harmless the Reinsurer for all costs and
expenses of any kind arising out of any difference of opinion or dispute related to the paragraph immediately above.

**<u>ARTICLE 37 -</u> <u>INTERMEDIARY</u>** 

Acrisure Re US Limited is hereby recognized as the Intermediary negotiating this Contract. All communications (including but not limited to notices, statements, premiums, return premiums, commissions, taxes, losses, Loss Adjustment Expenses, salvage and loss settlements) relating hereto will be transmitted to the Company and the Reinsurer through Acrisure Re US Limited, 3060 S. Church St., PO Box 4, Building 400, 4th Floor, Burlington, NC 27215 (or its affiliates). Payments by the Company to Acrisure Re US Limited shall be deemed to constitute payment to the Reinsurer. Payments by the Reinsurer to Acrisure Re US Limited shall be deemed payment to the Company only to the extent that such payments are actually received by the Company.

**[*remainder of page left intentionally blank; signature page follows*]** 

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **35** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**IN WITNESS WHEREOF**, the Company, by its duly authorized officer, has executed this Contract and confirms the Company's review and acceptance of the terms and conditions provided in the attached Interests and Liabilities Agreement(s) attached to and forming part of this Contract.

Signed this 29th day of April, 2025.

---

| | |
|:---|:---|
|  **SAFEPOINT INSURANCE COMPANY** | **SAFEPOINT INSURANCE COMPANY** |
| By: | ![LOGO](g73198g35t43.jpg)  |
|  Printed Name: | Steve Hoffman |
|  Title: | Chief Financial Officer |

---

---

| | |
|:---|:---|
| **CAJUN UNDERWRITERS RECIPROCAL EXCHANGE** | **CAJUN UNDERWRITERS RECIPROCAL EXCHANGE** |
| By: | ![LOGO](g73198g35t43.jpg)  |
|  Printed Name: | Steve Hoffman |
|  Title: | Chief Financial Officer |

---

---

| | |
|:---|:---|
|  **MANATEE INSURANCE EXCHANGE** | **MANATEE INSURANCE EXCHANGE** |
| By: | ![LOGO](g73198g35t43.jpg)  |
|  Printed Name: | Steve Hoffman |
|  Title: | Chief Financial Officer |

---

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **36** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**<u>NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE -</u>** 

**<u>REINSURANCE - U.S.A.</u>** 

1. This Reinsurance does not cover any loss or liability accruing to the Reassured, directly or indirectly, and
whether as Insurer or Reinsurer, from any Pool of Insurers or Reinsurers formed for the purpose of covering Atomic or Nuclear Energy risks.

2. Without in any way restricting the operation of paragraph 1. of this clause, this Reinsurance does not cover
any loss or liability accruing to the Reassured, directly or indirectly and whether as Insurer or Reinsurer, from any insurance against Physical Damage (including business interruption or consequential loss arising out of such Physical Damage) to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Nuclear reactor power plants including all auxiliary property on the site, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. Any other nuclear reactor installation, including laboratories handling radioactive materials in connection
with reactor installations, and "critical facilities" as such, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. Installations for fabricating complete fuel elements or for processing substantial quantities of "special
nuclear material", and for reprocessing, salvaging, chemically separating, storing or disposing of "spent" nuclear fuel or waste materials, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. Installations other than those listed in paragraph 2. III above using substantial quantities of radioactive
isotopes or other products of nuclear fission.

3. Without in any way restricting the operations of paragraphs 1. and 2. hereof, this Reinsurance does not cover
any loss or liability by radioactive contamination accruing to the Reassured, directly or indirectly, and whether as Insurer or Reinsurer, from any insurance on property which is on the same site as a nuclear reactor power plant or other nuclear
installation and which normally would be insured therewith except that this paragraph 3. shall not operate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) where Reassured does not have knowledge of such nuclear reactor power plant or nuclear installation, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) where said insurance contains a provision excluding coverage for damage to property caused by or resulting from
radioactive contamination, however caused. However on and after 1st January 1960 this subparagraph (b) shall only apply provided the said radioactive contamination exclusion provision has been approved by the Governmental Authority having
jurisdiction thereof.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **37** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

4. Without in any way restricting the operations of paragraphs 1., 2. and 3. hereof, this Reinsurance does not
cover any loss or liability by radioactive contamination accruing to the Reassured, directly or indirectly, and whether as Insurer or Reinsurer, when such radioactive contamination is a named hazard specifically insured against.

5. It is understood and agreed that this clause shall not extend to risks using radioactive isotopes in any form
where the nuclear exposure is not considered by the Reassured to be the primary hazard.

6. The term "special nuclear material" shall have the meaning given it in the Atomic Energy Act of
1954 or by any law amendatory thereof.

7. Reassured to be sole judge of what constitutes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) substantial quantities, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the extent of installation, plant or site.

*Note:* Without in any way restricting the operation of paragraph 1. hereof, it is understood and agreed that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all policies issued by the Reassured on or before 31st December 1957 shall be free from the application of the
other provisions of this clause until expiry date or 31st December 1960 whichever first occurs whereupon all the provisions of this clause shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any risk located in Canada policies issued by the Reassured on or before 31st December 1958
shall be free from the application of the other provisions of this clause until expiry date or 31st December 1960 whichever first occurs whereupon all the provisions of this clause shall apply.

12/12/57

NMA 1119

NOTES: Wherever used herein the terms:

"Reassured" shall be understood to mean "Company", "Reinsured", "Reassured" or whatever other term is used in the attached reinsurance document to designate the reinsured company or companies.

"Agreement" shall be understood to mean "Agreement", "Contract", "Policy" or whatever other term is used to designate the attached reinsurance document.

"Reinsurers" shall be understood to mean "Reinsurers", "Underwriters" or whatever other term is used in the attached reinsurance document to designate the reinsurer or reinsurers.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **38** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**<u>POOLS, ASSOCIATIONS AND SYNDICATES EXCLUSION CLAUSE</u>** 

**Section A:** 

This Contract excludes:

a. All business derived directly or indirectly from any Pool, Association or Syndicate which maintains its own
reinsurance facilities.

b. Any Pool or Scheme (whether voluntary or mandatory) formed after March 1, 1968 for the purpose of insuring
property, whether on a country-wide basis or in respect of designated areas. This exclusion shall not apply to so-called Automobile Insurance Plans or other Pools formed to provide coverage for Automobile
Physical Damage.

**Section B:** 

1. This Contract excludes business written by the Company for the same perils, which is known at the time to be
insured by, or in excess of underlying amounts placed in, any Pool, Association or Syndicate, whether by way of insurance or reinsurance, formed for the purpose of writing any of the following:

Oil, Gas or Petro-Chemical Plants

Oil or Gas Drilling Rigs and/or

Aviation Risks

2. The exclusion under paragraph 1 of this Section B does not apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Where the Total Insured Value over all interests of the risk in question is less than $[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. To interests traditionally underwritten as Inland Marine and/or Stock and/or Contents written on a Blanket
basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. To Contingent Business Interruption, except when the Company is aware that the key location is known at the
time to be insured in any Pool, Association or Syndicate named above, other than as provided for under subparagraph (a).

**Section C:** 

1. Nevertheless the Reinsurer specifically agrees that liability accruing to the Company from its participation in
Residual Market Mechanisms, including but not limited to the following, for all perils otherwise protected hereunder shall not be excluded herefrom:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. So-called "Beach and Windstorm Plans" and so-called "Coastal Pools";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. All "FAIR Plan" and "Rural Risk Plan" business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Louisiana Citizens Property Insurance Corporation;

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **39** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Texas Windstorm Insurance Association;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Citizens Property Insurance Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. any similar state-run insurance corporation applicable to business
subject hereunder.

2. However, this reinsurance does not include any increase in such liability resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The inability of any other participant in such Residual Market Mechanisms to meet its liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any claim against a Residual Market Mechanism or any participant therein, including the Company, whether by way
of subrogation or otherwise, brought by or on behalf of any insolvency fund (as defined in the Exclusions Article);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Any assessment or surcharge levied on the policyholder and therefore not a liability of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Any assessments, other than interim and regular assessments, from a Residual Market Mechanism included in
subparagraph 1(c) above.

3. The Company may include in Ultimate Net Loss for any Loss Occurrence covered hereunder only the liability
attributable to that Loss Occurrence. If the relevant entity does not specify what portion of an assessment is attributable to each Loss Occurrence, the Company may include in Ultimate Net Loss in respect of each Loss Occurrence a percentage of the
Company's assessments from the relevant entity related to the calendar year in which the Loss Occurrence commenced, regardless of when assessed, such percentage to be determined by dividing the relevant entity's losses arising from the
Loss Occurrence by its total losses for the calendar year.

4. The Company will deduct from Ultimate Net Loss amounts received as recoupment of any assessment that has been
included in the Ultimate Net Loss, provided the recoupment is directly allocable to the assessment ("itemized recoupment"). The Company shall use commercially reasonable efforts to recoup such assessment. Any amount received as an
itemized recoupment of any assessment (whether under this Contract or any predecessor contract), and therefore deductible from Ultimate Net Loss, shall not be included in the subject premium of this Contract.

However, if a state levies assessments but does not allow itemized recoupment from policyholders, instead allowing the Company to file an overall increased rate, any such premium increased thereby shall not be deemed to be a recoupment that is deductible from Ultimate Net Loss. Any recoupment received as part of a general premium rate increase, not specifically itemized, shall be included as part of the subject premium of this Contract or a successor contract, as applicable.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **40** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**<u>TERRORISM EXCLUSION (PROPERTY TREATY REINSURANCE)</u>** 

Notwithstanding any provision to the contrary within this reinsurance agreement or any endorsement thereto, it is agreed that this reinsurance agreement excludes loss, damage, cost or expense directly or indirectly caused by, contributed to by, resulting from, or arising out of or in connection with any act of terrorism, as defined herein, regardless of any other cause or event contributing concurrently or in any other sequence to the loss.

An act of terrorism includes any act, or preparation in respect of action, or threat of action designed to influence the government de jure or de facto of any nation or political division thereof, or in pursuit of political, religious, ideological, or similar purposes to intimidate the public or a section of the public of any nation by any person or group(s) of persons whether acting alone or on behalf of or in connection with any organization(s) or government(s) de jure or de facto, and which:

(i) involves violence against one or more persons; or

(ii) involves damage to property; or

(iii) endangers life other than that of the person committing the action; or

(iv) creates a risk to health or safety of the public or a section of the public; or

(v) is designed to interfere with or to disrupt an electronic system.

This reinsurance agreement also excludes loss, damage, cost or expense directly or indirectly caused by, contributed to by, resulting from, or arising out of or in connection with any action in controlling, preventing, suppressing, retaliating against, or responding to any act of terrorism.

NMA2930A

19/12/2001

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **41** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**<u>COMMUNICABLE DISEASE EXCLUSION (PROPERTY TREATY</u> <u>REINSURANCE)</u>** 

1. Notwithstanding any provision to the contrary within this reinsurance agreement, this reinsurance agreement
excludes any loss, damage, liability, claim, cost or expense of whatsoever nature, directly or indirectly caused by, contributed to by, resulting from, arising out of, or in connection with a Communicable Disease or the fear or threat (whether
actual or perceived) of a Communicable Disease regardless of any other cause or event contributing concurrently or in any other sequence thereto.

2. As used herein, a Communicable Disease means any disease which can be transmitted by means of any substance or
agent from any organism to another organism where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 the substance or agent includes, but is not limited to, a virus, bacterium, parasite or other organism or any
variation thereof, whether deemed living or not, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 the method of transmission, whether direct or indirect, includes but is not limited to, airborne transmission,
bodily fluid transmission, transmission from or to any surface or object, solid, liquid or gas or between organisms, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 the disease, substance or agent can cause or threaten damage to human health or human welfare or can cause or
threaten damage to, deterioration of, loss of value of, marketability of or loss of use of property.

LMA5394

27 March 2020

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **42** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**<u>CYBER LOSS EXCLUSION (PROPERTY TREATY REINSURANCE)</u>** 

1 Notwithstanding any provision to the contrary within this reinsurance agreement or any endorsement thereto, this reinsurance agreement excludes any:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Cyber Loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 loss, damage, liability, cost or expense of whatsoever nature directly or indirectly caused by, contributed to
by, resulting from, arising out of or in connection with any loss of use, reduction in functionality, repair, replacement, restoration or reproduction of any Data, including any amount pertaining to the value of such Data;

regardless of any other cause or event contributing concurrently or in any other sequence thereto.

2. If the Reinsurers allege that by reason of this exclusion any loss, damage, liability, claim, cost or expense
sustained by the Company is not covered by this reinsurance agreement, the burden of proving the contrary shall be upon the Company.

**<u>Definitions</u>**

3. Cyber Loss means any loss, damage, liability, claim, cost or expense of whatsoever nature directly or
indirectly caused by, contributed to by, resulting from, arising out of or in connection with any Cyber Act or Cyber Incident, including, but not limited to, any action taken in controlling, preventing, suppressing or remediating any Cyber Act or
Cyber Incident.

4. Cyber Act means an unauthorised, malicious or criminal act or series of related unauthorised, malicious or
criminal acts, regardless of time and place, or the threat or hoax thereof involving access to, processing of, use of or operation of any Computer System.

5. Cyber Incident means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 any error or omission or series of related errors or omissions involving access to, processing of, use of or
operation of any Computer System; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 any partial or total unavailability or failure or series of related partial or total unavailability or failures
to access, process, use or operate any Computer System.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **43** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

6. Computer System means:

6.1 any computer, hardware, software, communications system, electronic device (including, but not limited to,
smart phone, laptop, tablet, wearable device), server, cloud or microcontroller including any similar system or any configuration of the aforementioned and including any associated input, output, data storage device, networking equipment or back up
facility.

7. Data means information, facts, concepts, code or any other information of any kind that is recorded or
transmitted in a form to be used, accessed, processed, transmitted or stored by a Computer System.

LMA5411

06 March 2020

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **44** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**<u>FUNGI COVERAGE LIMITATION (PROPERTY CATASTROPHE</u> <u>REINSURANCE)</u>** 

This Agreement excludes absolutely any loss, damage, cost, expense, or liability arising from Fungi unless directly caused by or arising from any peril otherwise covered under this Contract.

Such losses arising from Fungi may only be included in the Company's Ultimate Net Loss if they manifest themselves, and are reported to the Company, within 24 months of the start of the event identified in relation to that Ultimate Net Loss.

Losses arising from Fungi shall not in and of themselves constitute an event for the purposes of recovery hereunder.

If this Agreement includes cover for Extra Contractual Obligations or Excess of Policy Limit payments, then such losses which arise out of claims where Fungi are present or alleged to be present may be included in the Ultimate Net Loss but only up to a maximum of [\*\*\*]% of the Ultimate Net Loss.

For the purposes of this Agreement, Fungi shall be taken to include any type or form of fungus, mold or mildew and any mycotoxins, spores, scents or by products produced or released by fungi.

14/11/02

NMA2955 (amended)

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **45** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**<u>STRIKE, RIOT, CIVIL COMMOTION AND MALICIOUS ACT EXCLUSION</u>**

A. This Contract excludes loss or liability arising out of or in connection with any Strike, Riot, Civil
Commotion, and/or Malicious Act, including any action taken by any person or authority in controlling, preventing or suppressing any Strike, Riot, Civil Commotion and/or Malicious Act.

B. However, subject to the other terms, conditions and exclusions contained in this Contract, this Contract will
cover losses arising from Looting and any Time Element Losses directly resulting from a peril otherwise covered under this Contract ("Covered Peril").

C. For the purposes of this Exclusion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. "Strike" means a lockout or total or partial work stoppage to enforce demands made on an employer
or to protest against an act or condition that is unrelated to a Covered Peril.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. "Riot" means a violent disturbance by a group of persons assembled together for a common purpose
which threatens the public peace that is unrelated to a Covered Peril.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. "Civil Commotion" means a substantial violent disturbance by a large number of persons assembled
together and acting with common purpose or intent that is unrelated to a Covered Peril.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. "Malicious Act" means deliberate act(s) causing loss or damage to property during and/or following
Strike, Riot or Civil Commotion that is unrelated to a Covered Peril.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. "Looting" means the act of taking or attempting to take property from a location that has been
damaged, destroyed, or otherwise made vulnerable as a result of a Covered Peril. Such taking may occur by any means, including force, violence, or threat of force or violence.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **46** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

**<u>TRUST AGREEMENT REQUIREMENTS CLAUSE</u>**

A. Except as provided in paragraph B of this Clause, if the Reinsurer satisfies its funding obligations under the
Funding Article by providing a Trust Agreement, the Reinsurer shall ensure that the Trust Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Requires the Reinsurer to establish a trust account for the benefit of the Company, and specifies what the
Trust Agreement is to cover;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Stipulates that assets deposited in the trust account shall be valued according to their current fair market
value and shall consist only of cash (United States legal tender), certificates of deposit (issued by a United States bank and payable in United States legal tender), and investments of the types permitted by the regulatory authorities having
jurisdiction over the Company's reserves, or any combination of the three, provided that the investments are issued by an institution that is not the parent, subsidiary or affiliate of either the Reinsurer or the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Requires the Reinsurer, prior to depositing assets with the trustee, to execute assignments or endorsements in
blank, or to transfer legal title to the trustee of all shares, obligations or any other assets requiring assignments, in order that the Company, or the trustee upon the direction of the Company, may whenever necessary negotiate these assets without
consent or signature from the Reinsurer or any other entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Requires that all settlements of account between the Company and the Reinsurer be made in cash or its
equivalent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Provides that assets in the trust account shall be withdrawn only as permitted in this Agreement, without
diminution because of the insolvency of the Company or the Reinsurer.

B. If a ceding insurer is domiciled in California and the Reinsurer satisfies its funding obligations under the
Funding Article by providing a Trust Agreement, the Reinsurer shall ensure that the Trust Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Provides that assets deposited in the trust account shall be valued according to their current fair market
value and shall consist only of cash in United States dollars, certificates of deposit issued by a United States financial institution as defined in California Insurance Code Section 922.7(a) and payable in United States dollars, and
investments permitted by the California Insurance Code, or any combination of the above.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **47** of **48** |  |

---

------

**"CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN *OMITTED* AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED."**![LOGO](g73198g69p67.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Provides that investments in or issued by an entity controlling, controlled by or under common control with
either the grantor or the beneficiary of the trust shall not exceed 5.0% of total investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Requires the Reinsurer, prior to depositing assets with the trustee, to execute assignments or endorsements in
blank, or to transfer legal title to the trustee of all shares, obligations or any other assets requiring assignments, in order that the ceding insurer, or the trustee upon the direction of the ceding insurer, may, whenever necessary, negotiate
these assets without consent or signature from the Reinsurer or any other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Provides that assets in the trust account shall be withdrawn only as permitted in this Agreement, without
diminution because of the insolvency of the ceding insurer or the Reinsurer.

C. If there are multiple ceding insurers that collectively comprise the Company, "regulatory
authorities" as referenced in subparagraph A(2) above, shall mean the individual ceding insurer's domestic regulator. If such ceding insurer is subject to the commercial domicile laws or regulations of another state, such laws or
regulations shall apply to the extent not in conflict with those of such ceding insurer's domicile.

---

| | | |
|:---|:---|:---|
| Effective: May 1, 2025 |  | Final: April 17, 2025 |
| Ref No: FLA25C047 |  |  |
|  | Page **48** of **48** |  |

---

## Exhibit 10.3

**Exhibit 10.3** 

**MANAGING GENERAL AGENCY AND CLAIMS ADMINISTRATION** 

**AGREEMENT** 

**("Agreement") Between** 

**Manatee Risk Management, LLC, acting as Attorney-in-Fact for Manatee** 

**Insurance Exchange (collectively, with Manatee Insurance Exchange,** 

**referred to herein as "Manatee")** 

**and** 

**Safepoint MGA, LLC (Hereinafter "SPM")** 

**Made as of the <u>1st</u> day of <u>February</u>, 2024.** 

WHEREAS, Manatee Risk Management. LLC is the Attorney-in-Fact for and tasked with providing management, policy, claims and administrative services to Manatee Insurance Exchange, a Florida domiciled company admitted to transact insurance business in the State of Florida and issue policies of insurance in that state;

WHEREAS, Manatee desires to engage SPM to furnish policy administration and claims servicing with respect to insurance policies for the authorized insurance coverages (the "Authorized Coverages") set forth in Schedule I to this Agreement (the applied for, issued coverages are sometimes referred to as "Policy(ies)"), including renewals, issued from the Effective Date of this Agreement until terminated as hereinafter set forth; and

WHEREAS, SPM desires to produce, administer and manage the Policies and to adjust claims and provide other services in connection with such policies, including but not limited to marketing, claims analysis, general ledger accounting, information services, product and underwriting development and management, and catastrophe risk management on behalf the Manatee; and

WHEREAS, SPM desires to be the Managing General Agency and is hereby bound to the provisions of 626.7451 of the Florida Statutes hereby incorporated and listed in Schedule IV of this agreement. To the extent any language in this agreement conflicts with the provisions listed in Schedule IV, Schedule IV shall prevail in the application of the Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, the parties have agreed that the terms of this Agreement shall be effective as of February 1, 2024, (the "Effective Date") and do otherwise agree as follows:

**ARTICLE I - GENERAL PRINCIPLES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.** Manatee appoints SPM for the purpose of producing and handling Policies for the Authorized Coverages of business set forth in Schedule I and issued, renewed or assumed on or after the Effective Date of this Agreement. SPM agrees to produce the Authorized Coverages of business in accordance with the territory and limits of liability set forth in Schedule I hereto and Manatee's established and approved underwriting requirements and premiums for the Authorized Coverages of business.

------

with respect to the Policies. Nonetheless, Manatee being at risk and having ultimate responsibility and authority for the Policies issued by SPM, at all times shall have the ultimate responsibility and discretion with respect to all matters pertaining to the Policies and to the general welfare of the Manatee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.** SPM shall manage its affairs in accordance with the terms of the Agreement in an ethical and professional manner and in accordance with all applicable laws and regulations of the State of Florida.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.** The Term of this Agreement shall continue for a period of five (5) years from the Effective Date unless sooner terminated pursuant to the terms of this Agreement. SPM shall have the option to renew the term of this Agreement for additional three (3) year periods commencing after the initial five (5) year term and any renewal term by providing written notice to the Manatee at least ninety (90) days prior to the expiration of the initial five (5) year term or any renewal thereof.

**ARTICLE II - UNDERWRITING AND CUSTOMER SERVICE RESPONSIBILITIES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>2.1. General Underwriting and Customer Service Responsibilities</u>.** SPM, undertakes, by itself and through its subcontractors, to provide Manatee comprehensive management and administration of Manatee's insurance business subject to the terms and conditions stated herein and the corporate policies promulgated from time to time by Manatee. Without limiting the generality of the foregoing, SPM shall do the following, except as Manatee may from time to time otherwise expressly direct.

SPM shall have the authority and the duty to act for and on behalf of Manatee insofar as necessary for SPM to perform the functions necessary to carry out the terms of the Agreement, including, but not limited to, marketing, claims analysis, general ledger accounting, information services, product and underwriting development and management, and catastrophe risk management. SPM, through its personnel, facilities, contractual arrangements, and service providers, shall provide such services as set forth in this Agreement and any Addenda as may be attached hereto and incorporated into this Agreement by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>2.2 Marketing and Agency Relations.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** SPM shall ensure that the original source of all business produced under this Agreement shall be properly licensed Agents or Brokers, who maintain appropriate licenses, certificates of authority and appointments as required by regulators to conduct business under this Agreement. SPM shall conduct and maintain proper background checks of Agents and Brokers. Upon discovery, SPM shall immediately notify Manatee of any irregularities regarding any Agent or Broker. Manatee shall have the right to accept, reject or cancel any agent's appointment recommended or made by SPM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** SPM shall have authority to recruit, contact with, manage, train, and supervise Agents as producing agents acting for and on behalf of SPM. SPM may appoint Agents for Manatee at SPM's expense, and upon execution of this Agreement, SPM shall provide to Manatee all information necessary or requested by Manatee to substantiate the expertise and acceptability of each Agent appointed. SPM shall maintain in force a written agreement, in a form acceptable to Manatee, with Agents and Brokers, who are not employees of SPM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) <u>Advertising</u>** 

**(1)** Subject to Manatee's direction and approval, SPM shall be responsible for advertising and marketing the Authorized Business.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) <u>Names, Logos and Marks.</u>** Except as required by regulations, SPM, any Agent or any Broker shall not use the name, logo, trademark or other service marks of Manatee or any of its affiliates in any advertising, promotional materials or public manner of any nature without specific authorization and prior written approval from Manatee. Except as required by Regulations, Manatee shall not use the name, logo, trademark or other such service marks of SPM or any of its affiliates in any advertising, promotion materials or public manner of any nature without specific authorization and prior written approval from SPM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3) <u>Advertisements.</u>** A copy of any proposed advertisement, promotional materials or such public manner and a description of the intended use shall be forwarded to Manatee prior to its use. SPM shall maintain a copy of any and all advertisements and promotional materials containing Manatee's name and full details concerning where, when, and how such advertisements or promotional materials were used, and shall furnish Manatee a copy of all such advertisements, promotion materials and related information. SPM shall comply with all legal requirements regarding content, review and approval of advertising and maintenance of records. SPM shall maintain records of the names and addresses of recipients of any direct mailing or advertising when required by Regulations but shall in all instances record the geographical area in which such mailing or advertising was used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>2.3.</u> <u>Underwriting.</u>** SPM shall provide or shall supervise any subcontractors appointed by SPM or Manatee in providing, all underwriting and policy issuance for all approved lines of business, subject to the instructions, guidelines and limits identified in this Agreement. SPM or any subcontractors appointed by SPM, shall rate, quote and issue policies of insurance consistently with the rate, rule and form filings, with such rate, rule and form filings to be made on behalf of Manatee by SPM. SPM shall also provide policy information services for insureds through itself and its producing agents and shall coordinate such activities with such third parties as Manatee shall from time to time direct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**2.4**.</u> **<u>Underwriting Records.</u>** SPM shall maintain separate, complete and orderly underwriting files or electronic files, records and accounts of all transactions involving Manatee in accordance with generally accepted insurance and accounting practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>2.5.</u> <u>Regulatory Filings</u>.** Forms, rates, and rules for Authorized Business as mutually agreed upon by SPM and Manatee shall be filed by SPM on behalf of Manatee as required with the property regulatory agency. Upon completion of filing and receipt of approval from the applicable regulatory agency or according to approval granted by Regulations, SPM shall notify Manatee of the effective date of such filing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>2.6.</u> <u>Applications and Policies.</u>** SPM shall have the authority to accept quotes and applications for Policies and to issue Policies for Authorized Business submitted by or through Agents or Brokers on forms, at rates, and under rules approved by Manatee. Manatee will accept any application submitted within the parameters of the Underwriting Manual. SPM shall ensure that all applications, binders, policies or other forms are approved by Company and the required applicable state regulatory official prior to use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>2.7.</u> <u>Policy Issuance.</u>** SPM shall not delegate its authority to underwrite and issue Policies or any risk changing endorsements or amendments to Policies to any Agent or Broker without the express written consent of Manatee but SPM may delegate same to a qualified third party. SPM's request to Manatee for approval to delegate such authority shall include a copy of the agreement between SPM and third party which includes such third party's authorities to be delegated by SPM.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**2.8.**</u> **<u>Policy Renewals and Cancellations.</u>** SPM shall be responsible for the proper renewal, non-renewal or cancellation, reinstatement of Policies in accordance with Regulations, Policy provisions, and delegations of authority as provided in this Agreement. SPM shall timely communicate to policyholders any renewal quotes or notices of non-renewal or cancellation to preclude the extension of coverages beyond the expiration dates or cancellation dates of in-force Policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>2.9.</u> <u>Return Commissions.</u>** SPM shall refund to Manatee unearned commissions as collected from the agents on policy cancellations, reductions in premiums or any other return premiums at the same rate at which such commissions were originally retained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>2.10.</u> <u>Premiums and Fees.</u>** SPM shall have the authority to receive premiums and to retain commissions and other fees, as specified in this Agreement, out of such collected premiums and fees, subject to the terms and conditions of this Agreement. SPM shall have the authority to bill premiums to policyholders on an installment basis ad charge policyholders Installment Billing Fees as allowed by Regulations. SPM shall have the authority to accept premiums financed by premium finance companies or other lending institutions. SPM shall be solely responsible and liable for premiums financed and shall cause any unearned premium or commission refunds to be paid directly to said premium finance company or lender and shall not pay or credit any Agent's or Broker's account.

**<u>ARTICLE III - HANDLING OF FUNDS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>3.1.</u> <u>Depository Account.</u>** SPM shall accept in a fiduciary capacity, on behalf of the Manatee, all premiums, policies, fees, interest, and service charges collected and other funds relating to the business written under this Agreement. Manatee shall establish and maintain a "Depository Account" in a bank mutually agreed upon by SPM and Manatee. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation. All premiums, policy fees, interest, and service charges collected by SPM shall be deposited into the Depository Account. Deposits to the Depository Account are to be made daily or no less seldom than weekly if daily determination of deposit amount required is not feasible. Subject to the terms of this Agreement, the proceeds of the Depository Account shall be used for payments as directed by Manatee. There may be retained in such Depository Account no more than sixty (60) days of estimated claim payments and Allocated Loss Adjustment Expenses. It is acknowledged and agreed that any investment income earned and costs assessed in connection with the Depository Account belong to Manatee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>3.2.</u> <u>No Commingling.</u>** SPM shall not commingle any premium or escrow trust funds with personal accounts or other funds held by SPM in any other capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>3.3.</u> <u>Disbursement Account.</u>** Manatee will maintain and adequately fund a Disbursement Account ("Disbursement Account") for the payment by SPM of unearned premiums arising due to cancellation or endorsement of Policies produced by SPM. Manatee and SPM shall each have signature authority over this account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>3.4.</u> <u>Bank Failure.</u>** SPM shall not be liable for any loss which occurs by reason of the default or failure of the bank in which the Depository Account and Disbursement Account are maintained and such loss shall not affect SPM's obligations under this Agreement.

**<u>ARTICLE IV - OTHER REPORTS & REQUIREMENT</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>4.1.</u> <u>Inspection.</u>** Manatee or its authorized representatives shall have the right (but not the obligation) at all reasonable times during business hours of operations to inspect SPM's books, records and bank accounts, wherever located, which pertain to the business which is the subject of this Agreement and shall have the right to copy or make abstracts from such books and records.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>4.2.</u> <u>Written Operating Procedures.</u>** SPM shall establish and maintain written operating procedures regarding the issuance of all Policies and endorsements, as well as the collection of premiums related thereto. Such procedures shall be forwarded to the Manatee and shall be subject to Manatee's review and written approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>4.3.</u> <u>Financial Statement.</u>** Within one hundred fifty (150) days after the end of each fiscal year, SPM shall furnish Manatee with true copies of its unaudited financial statements and the audited, certified balance sheet and related statement of operations of SPM for such fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>4.4.</u> <u>Records.</u>** SPM shall maintain permanent physical or electronic copies of all Policies and applications, or correspondence related to the Policies, either as hard copies or archived in electronic media. Manatee shall have access and the right to copy all accounts and records related to business written hereunder in a form usable by Manatee. SPM shall provide access to all SPM's books, bank accounts, and records to the Florida Office of Insurance Regulation ("Department") or other applicable regulatory authorities in a form usable by the Department or such other regulatory authority. All records shall be retained by SPM and SPM will not destroy these permanent copies without the written permission of Manatee for the longer of five (5) years from the termination date of the Policy or the period specified by the applicable Florida statute regulating preservation of records or the other applicable laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>4.5.</u> <u>Internal Revenue Service Forms.</u>** SPM shall prepare and furnish each Agent with an SPM form 1099 each year when required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>4.6.</u> <u>Errors and Omissions Coverage.</u>** SPM shall maintain an errors and omissions insurance policy and shall submit a copy of said coverages to Manatee for review and approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>4.7.</u> <u>Report of Accounts.</u>** SPM shall render accounts to Manatee detailing all transactions and remit all funds due under the terms of this Agreement to Manatee on a monthly or more frequent basis.

**<u>ARTICLE V - SPM'S COMPENSATION</u>**

Manatee shall pay to SPM, as its sole and full compensation for all authorized business placed with Manatee under this Agreement, and not including the fees and expenses to be paid to SPM for those claim adjustment services provided in Article VII herein, the commission and set forth in Schedule II to the Agreement (hereinafter the "Compensation").

**<u>ARTICLE VI - EXPENSES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>6.1.</u> <u>SPM's Expenses.</u>** Except as otherwise provided in this Agreement, SPM shall pay all expenses incurred by SPM in connection with the underwriting, production, marketing and servicing of the Policies, including but not limited to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Printing of proposals, policy jackets, contracts of insurance, endorsements, cancellation notices, premium
notices, records and reports, and all other documents required to fulfill the obligation of SPM under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Advertising and public relations expenses authorized by SPM. The Manatee's prior written approval shall
be required with respect to any advertising or public relations material that contains Manatee's name and logo.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. SPM's general office expenses, including rent, salaries, utilities, data processing performed by SPM,
transportation, furniture, fixtures, equipment, supplies, telephone, postage, and other general overhead expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>6.2.</u> <u>Manatee's Expenses.</u>** The Manatee shall pay directly all charges and expenses directly attributable to its operations, including but not being limited to the following: Board and Bureau fees; state guaranty fund assessments and other assessments for, or based on, business written pursuant to this Agreement; premium taxes and any other assessments levied by a state or local governmental authority on business written hereunder; cost of reinsurance; legal and auditing expenses incurred at the direction of Manatee, as well as any specifically identifiable marginal costs that can be ascertained and attributed to the processing of Manatee's business under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>6.3.</u> <u>Reimbursement by SPM.</u>** In addition to any rights granted to Manatee hereunder, Manatee shall be entitled to immediate reimbursement or payment from SPM for all ordinary, reasonable and necessary costs, charges and expenses (collectively called "Expenses") paid or incurred by Manatee by reason of or in connection with (i) the termination pursuant to Section 9.2. of this Agreement, or (ii) the breach or non-performance of any covenant or obligation to be observed or performed by SPM or any Agent; provided, however, that in the case of a breach or non-performance by SPM, Manatee shall have given SPM written notice of the breach or non-performance and SPM shall not have cured same within thirty (30) days after the date of the notice, or if same is of such a nature that it cannot reasonably be cured within such time, if SPM has not within such time commenced to cure same and does not diligently continue to and actually cure same. Any expenses incurred by the Manatee after the giving of such notice shall be promptly reimbursed by SPM. Without limiting the generality of the foregoing, SPM's covenants and obligations as referred to herein shall include but not be limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the obligation to deposit, report and remit premiums to Manatee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the obligation to remit return premiums to the insureds when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the obligation to process all policies, endorsements and notices of cancellation and/or non-renewal pursuant to the Manatee's underwriting guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the obligation to observe and comply with underwriting guidelines and sub-agent appointment procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. the obligation to observe and comply with all statutes, regulations, rules and rates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. the obligation to comply with the requirements of Article III hereinabove.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. The writing, binding or issuance of policies and risks by SPM not in accordance with the condition set forth in
this Agreement and any Addenda hereto constitutes a breach of this Agreement, and any loss and expense incurred by Manatee resulting from such breach shall be assumed by SPM. In the event Manatee sustains a loss on a Policy or risk which the SPM has
written, issues or bound which is not within the scope of its authority under the Agreement and any addendum hereto, SPM shall reimburse Manatee for the amount of the loss plus the expenses incurred by Manatee because of the loss.

**<u>ARTICLE VII - CLAIMS ADMINSTRATION SERVICES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>7.1.</u> <u>General Authority.</u>** Manatee grants SPM the authority to investigate, evaluate, handle, adjust, deny and/or settle each claim assigned as appropriate and according to applicable state law, the terms and conditions of the policy and any written standards that may be provided by Manatee in addition to the provisions of the Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>7.2.</u> <u>Duties of SPM.</u>** In addition to, and without limiting, any duties which may be owed by SPM pursuant to Florida law, SPM shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Utilize and enter claims data into the claims administrative system and establish timely reserves that reflect
all amounts reasonably expected to be ultimately payable, which reserves will be reviewed with reasonable frequency and revised, as appropriate, in light of updated information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Dedicate sufficient and appropriate human, equipment and computer resources to provide Claims Services. SPM
shall use only licensed adjusters and licensed private investigators or catastrophic adjusters, where applicable, and such adjusters and investigators shall comply with and confirm to the Florida Statutes, and any applicable rules, orders, and
written interpretations issued by the Department;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Investigate, evaluate, handle, adjust, deny and/or settle each claim assigned to SPM as appropriate including
furnishing insureds with all forms necessary to properly administer claims, appointing adjusters, appraisers, engineers, assessors, or other parties necessary to evaluate Claims, making required payments, and coordinating a proper defense with
Defense Counsel as necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Designate an employee to act as liaison with Manatee to facilitate the provision of the Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Maintain the confidentiality of data or information which is the property of Manatee and which is directly
accessible to SPM in the implementation and performance of the Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Maintain complete, accurate and orderly claims books, files, records and accounts of all transactions in
accordance with generally accepted insurance and accounting practices, which files shall be the joint property of the Manatee and SPM. The data in any electronic claims files maintained by SPM shall be transmitted to Manatee in a timely manner as
reasonably directed by Manatee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Maintain during the term of this Agreement copies of all claims and correspondence related to the claims for a
period of six (6) years after the date of closure of such claim. SPM shall not destroy these copies without the written permission of the Manatee. SPM may, with permission from the Manatee, use magnetic, optical, and other types of technology
to store such data. At the end of such six

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) year period relevant to any claim, Manatee shall authorize SPM to either (a) destroy the closed file or (b) return such file to Manatee at Manatee's expense. Upon an order of liquidation of Manatee, the claims files shall become the sole property of Manatee or its estate once SPM has been paid for the services rendered. SPM shall have reasonable access to and the right to copy all files, books, and records on a timely basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. SPM shall adjust and handle all claims still open upon termination or cancellation of this Agreement for an
agreed upon fee per claim. Manatee shall continue to be responsible for the payment and reimbursement of expenses for such claims as provided in this Article VII. Notwithstanding the foregoing, any settlement authority granted to SPM may be
terminated for cause upon the Manatee's written notice to SPM or upon termination of this Agreement. Manatee may suspend SPM's settlement authority during the pendency of any dispute regarding the cause for termination.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. SPM agrees that all claims occurring during the Term of this Agreement will be reported to Manatee and will be
assigned to properly licensed persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>7.3.</u> <u>Manatee Discretion.</u>** SPM acknowledges and agrees that Manatee, as the party at risk and having ultimate responsibility for the claims to be administered by SPM, shall at all times have ultimate discretion and authority with respect to all matters pertaining to the claims including, without limitation, the processing, handling, disposition, settlement, defense and litigation of all claims. The exercise or failure to exercise such discretion and authority shall not in any way diminish, impair or otherwise affect the obligations of SPM hereunder, including, without limitation, the obligations to exercise reasonable care, to act in good faith, and to otherwise act in a prudent, fair and appropriate manner with regard to the Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>7.4.</u> <u>Duties of Manatee</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Manatee agrees that all claims occurring during the Term of, and under, this Agreement will be reported and
assigned to SPM, unless Manatee otherwise notifies SPM. Manatee will provide all information, in its possession, relevant to particular claims assigned to SPM in order for SPM to fulfill its duties and obligations as set out in Schedule III. SPM
shall notify Manatee, in writing, should Manatee fail to provide any relevant information requested by SPM regarding any specific claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Manatee shall appoint an individual with sufficient authority within Manatee's organization to facilitate
SPM's performance of the Claims Administration Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>7.5.</u> <u>Audit Provisions.</u>** Manatee, its employees, and/or its authorized agents shall have the right, at any reasonable time during normal business hours and with reasonable notice to SPM, to review and/or audit Manatee's claim files maintained by SPM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>7.6.</u> <u>Price and Payment</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Manatee agrees to pay Service Fees and Rates as specified in Schedule III A through Schedule III C of this
Agreement. Schedule III A shall govern the Service Fees and Rates payable to SPM by Manatee on all assumed, new and renewal business written by Manatee. Schedule III B shall govern the Service Fees and Rates payable to SPM by Manatee under those
special circumstances as agreed to in writing by the parties. Schedule III C shall govern the Service Fees and rates payable to SPM by Manatee for catastrophic management services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Service Fees and Rates may increase or decrease by mutual written agreement, if changes in the Claims
Services mutually agreed to in writing substantially alter the servicing personnel, equipment, or result in the servicing being done on a different system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Manatee agrees to pay all tariffs and taxes that are now or may become applicable to the Claims Services
rendered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Service Fees and Rates for Claims Services will be due and payable thirty (30) days after the close of the
month in which Claims Services are performed in amounts pursuant to Schedules III A through III C attached to this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. SPM and Manatee will renegotiate, in good faith, the Claims Services Fees in the event of statutory,
regulatory, or judicial changes that require additional activities not contemplated at inception of this Agreement. Should the parties be unable to reach an agreement, either party may terminate this Agreement upon advance written notice to the
other party at least ninety (90) days prior to the effective date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>7.7.</u> <u>Definition and Payment of "Allocated Loss Adjustment Expense."</u>** All Allocated Loss Adjustment Expenses shall be paid by the Manatee. For purposes of this Agreement, Allocated Loss Adjustment Expense(s) shall mean any expense which is chargeable or attributable to the investigation, coverage analysis, adjustment, negotiation, settlement, defense or general handling of any Claim(s) or action(s) related thereto, or to the protection and/or perfection of Manatee's and/or its insured's right of subrogation, contribution or indemnification. Allocated Loss Adjustment Expense(s) includes, but is not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Attorney's fees and disbursements incurred in connection with the determination of coverage and/or the
adjustment, defense, negotiation or settlement of any Claim; attorney's fees incurred for representation at depositions, hearings, pretrial conferences and/or trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Costs incurred in handling any Alternative Dispute resolution proceeding ("ADR"), legal actions
including trials or appeals, or in pursuing any declaratory judgment action, including deposition fees, cost of appeal bonds, court reporter or stenographic service fees, filing fees, and other court costs, fees and expenses, transcript or printing
costs and all discovery expenses; fees for service of process; fees for witnesses' testimony, opinions, or attendance at hearings or trial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Statutory fines or penalties; pre- and post- judgment interest paid as
a result of litigation, unless legal requirements define such interest as indemnity payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Subcontractors' fees and travel expenses, including independent adjusters, automobile and property
appraisers, to the extent that same are incurred in the adjustment, negotiation, settlement or defense of any Claim (excluding SPM's employees);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Experts' fees including reconstruction experts, engineers, cause and origin reports, photographers,
accountants, economists, metallurgists, cartographers, architects, handwriting experts, physicians, appraisers and other natural and physical science experts, plus the costs associated with preparation of expert reports, depositions, and testimony;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Fees for surveillance, undercover operative and detective services or any other investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Costs for medical examinations, or autopsies, including diagnostic services, and related transportation costs,
fees for medical reports and rehabilitation evaluations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Costs for any public records, medical records, credit bureau reports, and other like reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Costs and expenses incurred where SPM determines it is reasonable to pursue the rights of contribution,
indemnification or subrogation of Manatee and/or its insured including attorney and collection agency fees and/or expenses;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Medical or vocational rehabilitation expenses, and all other medical cost containment services, including, but
not limited to, utilization review, pre-audit admission authorization, hospital bill audit or adjudication, provider bill audit or adjudication, and review of medical case management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Extraordinary travel and related expenses incurred by SPM at the express written request and approval of a
Manatee officer, which are not otherwise payable under this agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. With respect to SPM's determination that an expense(s) incurred pursuant to this Agreement is an
Allocated Loss Adjustment Expense, SPM makes no representation or warranty and assumes no responsibility that such determination (i) is in compliance with or meets the requirements of any statistical plan filing, statutory, regulatory, or insurance
industry reporting scheme or the definition of the Allocated Loss Adjustment Expense thereunder; (ii) is or could be characterized as payment of loss or indemnity; or (iii) is or is not subject to insurance or reinsurance coverage or
limits. Manatee agrees that it is responsible for making all such judgments and for complying with any and all such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>7.8.</u> <u>Limitation of Liability and Remedies.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In providing the Claims Services hereunder, SPM shall have a duty to act with reasonable due care and caution,
in good faith, and in a prudent manner. SPM shall be liable to Manatee for any loss or damage sustained by Manatee as a result of, or related in whole or part to, the bad faith, gross negligence or other intentional misconduct on the part of SPM, or
its officers, directors, employees or agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. SPM agrees to indemnify, defend and hold harmless Manatee, Manatee, its officers, directors, employees, agents,
designees and affiliates (collectively "Indemnified Parties"), from and against any and all claims, causes of action, liabilities, liens, fines, penalties, demands, costs, fees, expenses (including reasonable attorney's fees),
suits, judgments, adjudications and losses of whatever kind or nature incurred by, or claimed against, any of the Indemnified Parties by reason of any bad faith, negligence, or other misconduct by SPM, or any of its officers, directors, employees or
agents, or by reason of any breach of this Agreement by SPM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. SPM shall have no indemnity obligation under this Agreement for any act or omission of SPM taken or omitted to
be taken at the express direction of Manatee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. All indemnity obligations of SPM under this Agreement shall survive the termination or expiration of this
Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. SPM warrants that it now has and shall maintain during the term of this Agreement for the protection and
benefit of Manatee and SPM liability insurance coverage and errors and omissions coverage in an amount reviewed and approved by Manatee.

------

**<u>ARTICLE VIII - TERMINATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>8.1.</u> <u>Continuing Authority</u><u>.</u>** The authority of SPM to issue Policies under this Agreement shall be continuous until terminated, except for mandatory renewals of existing Policies. This agreement may be terminated by either party, at the end of any calendar quarter, without cause, by giving the other party not less than one hundred twenty (120) days prior written notice of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**8.2.**</u> **<u>Termination by Manatee with or without Cause</u>**<u>**.**</u> This Agreement shall terminate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Automatically and immediately at the written election of Manatee, if any public authority cancels or declines
to renew any of the license of SPM necessary to fulfill the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Automatically and immediately in the event of a transfer, sale or pledge of the majority of the stock or a
substantial portion of the assets of SPM, unless this Agreement is assigned with the express written consent of Manatee, or unless the pledge of stock is to a federal or state charted bank to secure loans from the bank to SPM, provided in the event
of such permitted pledge that this Agreement shall terminate if the pledged stock is foreclosed upon or otherwise acquired by the pledgee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. At the election of Manatee upon SPM's material violation of any provision of this Agreement; provided,
however, that SPM will be allowed thirty (30) days after written notice, to cure any non-monetary breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Immediately, at the election of Manatee for the occurrence of any failure by SPM to comply with the provisions
of Section 6.3 a. or b.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Sixty (60) days after delivery of written notice to terminate SPM at the election of Manatee for any
reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>8.3.</u> <u>Termination by SPM.</u>** This agreement may be terminated at the election of and upon written notice from SPM upon the failure of Manatee: (a) to remain licensed in the State of Florida; (b) to comply with Florida laws and Department Rules and Regulations; or (c) to comply with the material provisions of this Agreement; provided, however, that Manatee will be allowed thirty (30) days, after written notice, to cure any non-monetary breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**8.4.**</u> **<u>Suspension and Revocation of Authority</u><u>.</u>** Manatee may suspend SPM's underwriting authority during the pendency of any dispute regarding the termination of this Agreement. Manatee and SPM shall fulfill their obligations under the Policies regardless of any dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>8.5.</u> <u>Effect of Termination.</u>** In the event of proper termination of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Except as set forth in Section 7.2.h. herein, the obligations of SPM and Manatee under this Agreement
shall be discharged promptly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. No party shall have a claim upon the other for loss of prospective profit or damage to the business arising
therefrom; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. SPM's records shall remain the property of SPM and left in SPM's possession, provided SPM is in
compliance with all of its obligations to Manatee. Copies of such documents shall be furnished to Manatee by SPM upon written request of Manatee.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>8.6.</u> <u>Run-off</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Manatee shall, concurrent with its notice of termination or within thirty (30) days of SPM's notice
of termination, notify SPM of whether Manatee intends to have SPM service the Policies through their run-off, or whether it intends to manage the run-off itself. Except
as set forth in Section 7.2.h. herein, SPM's compensation in either event is set forth in Schedule II to this Agreement. For purposes of this Agreement, the term "run-off' shall mean
confirming coverage under the Policies to claims adjusters, administering the in-force Policies and any required renewals and endorsement thereof, providing reports to Manatee as elsewhere required by this
Agreement, paying premium to Manatee and return premium to the insureds, collecting all sums due from Agents, including return commissions, and such other activities of SPM specifically required by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. SPM shall upon demand return to Manatee any Policies, forms or other supplies imprinted with Manatee's
name regardless of who incurred the cost for same, or any Policies, forms or other supplies furnished to SPM by Manatee, with the exception of any forms which in SPM's reasonable opinion are required to complete an orderly run-off of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. In the event this Agreement terminates and/or SPM refuses or is unable to administer and run-off business produced under this Agreement, then in that event SPM shall immediately provide Manatee with a tape back-up of all programs and data libraries, including
updated source code and data files, used in the production and administration of business hereunder (the "Data"). Manatee agrees that it shall utilize the Data solely for the purpose of administering and running off the business produced
hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. SPM hereby grants, at no cost to Manatee, a limited license to Manatee to use SPM's Software in
connection with the administration and run-off of the business produced hereunder. SPM shall deliver the Software, together with the Source and object code for the Software, as well as all available related
manuals, immediately upon delivery of the Data to Manatee as provided in the preceding Section.

**<u>ARTICLE IX - ARBITRATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1.** Any controversy, claim or dispute arising out of or relating to this Agreement, including questions regarding the arbitrability of any issues or the scope, applicability enforceability, validity or breach of this or any other provision of this Agreement or differences of opinion as to the interpretation of this Agreements, shall be submitted to arbitration, one arbitrator to be chosen by the Manatee, one by the SPM, and an umpire by the two arbitrators (the arbitrators and umpire are referred to as the "Panel").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2.** The Panel shall, unless the parties otherwise agree, meet in Tampa, Florida. Members of the Panel shall be disinterested officers or former officers of property and casualty insurance companies or insurance agencies authorized to transaction business in the state in which the controversy, claim or dispute arose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3.** The arbitration shall be instituted by the claimant serving a notice upon the respondent setting forth a statement of the nature of the dispute and the name, address and current (or last, if retired) employment position of the arbitrator appointed by the claimant. The respondent shall appoint its arbitrator within twenty (20) days after the service of claimant's notice and shall, within such time, similarly notify claimant of the name, address and current (or last, if retired) employment position of the respondent's arbitrator. IF the respondent fails to appoint its arbitrator within such twenty (20) day period, the claimant shall also appoint the second arbitrator within ten (10) days after the expiration of the twenty (20) days for respondent to appoint its arbitrator. IF the

------

two arbitrators fail to agree upon the appointment of an umpire at the end of the twenty (20) days following the last date of the appointment of the arbitrators, then they each shall within ten (10) days thereafter, name three (3) candidates who serve as umpire, and within ten (10) days thereafter each shall decline two (2) of the candidates named by the other; within five (5) days thereafter, a decision shall be make by drawing lots as to which of the last two (2) candidates shall be the umpire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.4.** The respondent shall submit its statement within twenty (20) days after receipt of the claimant's statement, and the claimant ay submit a reply statement within ten (10) days after the receipt of the respondent's statement. Copies of all statements shall be sent to the parties and the Panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.5.** Any hearing shall commence within thirty (30) days following the selection of the umpire. The Panel shall render its decision within thirty (30) days following the termination of the hearings unless the parties consent to an extension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.6.** The Panel shall consider this Agreement an honorable engagement rather than merely a legal obligation and shall make its decision with regard to the custom and usage of the insurance and reinsurance business. The Panel shall issue its decision in writing upon evidence introduced at a hearing or by other means of submitting evidence in which strict rules of evidence need not be followed, but in which cross examination and rebuttal shall be allowed if requested. The majority decision of the Panel shall be final and binding upon all parties to the proceeding. Judgment may be entered confirming the award of the Panel in any court having jurisdiction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.7.** Each party shall bear the expense of its own arbitrator and shall jointly and equally bear the expense of the umpire. The remaining costs of the arbitration proceedings shall be allocated by the Panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.8.** In the event of subsequent actions or proceedings necessary to enforce the judgment entered thereon or any other rights flowing therefrom, the prevailing party shall be entitled to recover its reasonable attorney's fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.9.** Any suit, action,, or other proceeding by or against either party to this Agreement, including any proceeding to compel arbitration, to confirm the arbitration award, or to enforce any remedy available to either party may be brought in the District Court of the State of Florida and each of the parties hereto submits and consents to the non-exclusive jurisdiction of each such court for the purpose of any such suit, action or proceeding. The parties agree that process in any action or proceeding shall be personally served and that such service shall be sufficient to confer in personam jurisdiction over the party so served.

**<u>ARTICLE X - INDEMNITY AGREEMENT</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1.** SPM shall indemnity Manatee and its subsidiaries, successors, reinsurers and assignees, as well as their shareholders, directors, officers and agents against and in respect of any and all liabilities (as defined below), made or instituted against or incurred by Manatee or such other indemnitees and which arise, either directly or indirectly, out of any action or inaction of SPM or any Agent, or their employees or representatives, in connection with any obligations of SPM arising out of this Agreement, including but not limited to any action or inaction of SPM concerning the termination of Agent(s) pursuant to all applicable laws. This Section 11.1 does not apply to the extent that the loss resulted from action or inaction of SPM, which is a result of acting in accordance with the written instructions of Manatee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.** Manatee shall indemnify SPM and its subsidiaries, successors, reinsurers and assignees, as well as their shareholders, directors, officers and agents against and in respect of any and all liabilities (as defined below) made or instituted against or incurred by SPM or such other indemnitees and which arise, either directly or indirectly, out of any action or inaction of Manatee, or their employees or representatives, in connection with any obligations of Manatee arising out of this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3.** For purposes of this Article XI, "liabilities" means all claims, demands, actions, proceedings, liability, losses, damages, costs or expenses, including without limitation, attorneys' fees, disbursements and court costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4.** The indemnification provisions of this Article X do not apply to covered claims made under any policy issued in accordance with this Agreement nor with regard to the Claims Services, as set forth in Section 7.8. herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.5.** All indemnity obligations herein shall survive the termination or expiration of this Agreement.

**<u>ARTICLE XI - GENERAL PROVISIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>11.1.</u> <u>Survival.</u>** Article IX on Arbitration, Section 8.6 on "run-off', and all other provisions of this Agreement that are pertinent to the "run-off' and the Claims Services to be rendered under Section 7.2.h. shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>11.2.</u> <u>Independent Contactor Relationship.</u>** Nothing herein shall create the relationship of employer and employee between Manatee and SPM, it being understood and agreed that SPM is an independent contractor of Manatee for the purposes set forth herein with all rights, powers and duties as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>11.3.</u> <u>Non-assignable.</u>** Neither Manatee nor SPM may assign this Agreement or any part thereof to another person or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**11.3(a)**</u>. **<u>Subcontracting</u>**. SPM may subcontract or delegate its duties under this Agreement with other persons or entities, subject to the prior written consent of Manatee, which consent may not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>11.4.</u> <u>Modification.</u>** This Agreement may not be changed, nor may any provision hereof be waived, except by a written document signed by both parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>11.5.</u> <u>Non-Waiver.</u>** The failure of Manatee or SPM to insist on strict compliance with this Agreement, or to exercise any right or remedy hereunder, shall not constitute a waiver of any rights contained herein or estop the parties from thereafter demanding full and complete compliance therewith, or prevent the parties from thereafter demanding full and complete compliance therewith, nor prevent the parties from exercising any right or remedy in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>11.6.</u> <u>Notice.</u>** Any notice required or permitted to be given under this Agreement shall be in writing and shall be deemed duly given if delivered personally, or by a recognized courier service, or by registered or certified mail, return receipt requested, to the party for whom it is intended at the following address or such other address as the party may designate from time to time.

---

| | |
|:---|:---|
| **For SPM:** | Safepoint MGA, LLC |
|  | 12640 Telecom Drive |
|  | Temple Terrace, FL 33637 |
|  | **Attn: David Flitman** |

---

------

---

| | |
|:---|:---|
| **For Manatee:** | Manatee Risk Management<br> 12640 Telecom Drive<br> Temple Terrace, FL 33637<br> **Attn: Steven Hoffman** |

---

Notices shall be deemed given when delivered, or three (3) days after delivery to the courier or mailing, as above provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>11.7.</u> <u>Invalidity.</u>** If any provision of this Agreement should be found to be invalid or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>11.8.</u> <u>Governing Law.</u>** This Agreement shall be interpreted under and pursuant to the laws of the State of Florida, without giving effect to its conflicts of laws provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>11.9.</u> <u>Assigns.</u>** Subject to the provisions of 12.3 hereof, this Agreement shall bind and benefit the successors and permitted assigns of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>11.10.</u> <u>Counterparts.</u>** This agreement may be executed in two (2) or more counterparts, ach of which shall be deemed an original but all of which together shall constitute one and the same agreement.

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

---

| | | |
|:---|:---|:---|
| **Safepoint MGA, LLC:** | **Safepoint MGA, LLC:** |  |
| BY: | /s/ David Flitman | Date:2/1/2024 |
| Title: President and CEO | Title: President and CEO |  |
| **Manatee Risk Management:** | **Manatee Risk Management:** |  |
| BY: | /s/ Steven Hoffman | Date:2/1/2024 |
| Title: Chief Financial Officer | Title: Chief Financial Officer |  |

---

------

<u>SCHEDULE I</u> 

AUTHORIZED COVERAGES, TERRITORY AND LIMITS OF COVERAGE

[Omitted]

------

<u>SCHEDULE II</u> 

COMPENSATION

[Omitted]

------

<u>SCHEDULE III CLAIMS SERVICES</u> 

[Omitted]

------

<u>SCHEDULE III A</u> 

Fees Applicable to New and Renewal Business for Claims Services

[Omitted]

------

<u>SCHEDULE III B</u> 

Time and Expense Fees

[Omitted]

------

<u>SCHEDULE III C</u> 

Catastrophe Management Services & Fees

[Omitted]

------

<u>SCHEDULE IV</u> 

Required Contract Provisions per Florida Statute 626.7451

[Omitted]

## Exhibit 10.4

**Exhibit 10.4** 

**FIFTH AMENDMENT TO** 

**MANAGING GENERAL AGENCY AND CLAIMS ADMINISTRATION AGREEMENT** 

**Between** 

**SAFEPOINT MGA, LLC** 

**(Hereinafter called the "MGA")** 

**And** 

**SAFEPOINT INSURANCE COMPANY** 

**(Hereinafter called the ''Company")** 

**Made as of this 1st day of August 2020** 

**WHEREAS,** MGA and the Company entered into the Managing General Agency and Claims Administration Agreement dated as of November 14. 2013 (the "Agreement"): and

**WHEREAS,** MGA and the Company desire to amend the Agreement to make it compliant with certain regulatory requirements of States other than Florida applicable to an agreement between an insurance company and a managing general agent.

**WHEREAS,** MGA and the Company desire to amend the Agreement to specify the fees charged in accordance with legal services provided by the MGA to the Company

**WHEREAS,** MGA and the Company desire to amend the Agreement to expand the field adjuster fee schedule to include all claims. where it currently only applies to catastrophe claims

**NOW, THEREFORE,** the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The parties agree to amend the Agreement to add the Regulatory Addendum. in the form attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The parties agree that for each lawsuit handled by the MGA on behalf of the Company, the Company shall pay the
MGA a fixed fee of $5.250.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The parties agree that Schedule III D – as amended effective 6-1-2019. shall include all claims where the adjustment of the claims is handled by the MGA. The current schedule notes that it applies to catastrophe claims. but this amendment will allow for the schedule to
include non-catastrophe claims adjusted by the MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Except as modified herein. the Agreement shall remain in full force and effect and any other rights or duties
of the parties to the Agreement shall be unaffected by this Fifth Amendment to the Agreement.

**IN WITNESS WHEREOF,** the parties have executed this Fifth Amendment to the Agreement as of the date set forth above.

---

| | | | |
|:---|:---|:---|:---|
| SAFEPOINT MGA, LLC | SAFEPOINT MGA, LLC | SAFEPOINT INSURANCE COMPANY | SAFEPOINT INSURANCE COMPANY |
| By: | /s/ Steve Hoffman | By: | /s/ Nancy Baily |
| Its: | CFO | Its: | C.O.O. |

---

------

**FOURTH AMENDMENT TO** 

**MANAGING GENERAL AGENCY AND CLAIMS ADMINISTRATION AGREEMENT** 

**Between** 

**SAFEPOINT MGA, LLC** 

**(Hereinafter called the "MGA")** 

**And** 

**SAFEPOINT INSURANCE COMPANY** 

**(Hereinafter called the "Company")** 

**Made as of the 30th day of June, 2019** 

**WHEREAS,** MGA and Company entered into the Managing General Agency and Claims Administration Agreement dated as of November 14, 2013 (together with amendments thereto, the "Agreement"); and

**WHEREAS,** MGA receives compensation in the form of commission and other fees under the Agreement; and

**WHEREAS,** the parties desire to provide for the waiver of MGA's right, at MGA's sole discretion, to all or part of MGA's compensation payable by Company.

**NOW, THEREFORE,** the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. MGA may, in its sole discretion, elect to waive its right to all or part of its commissions, fees, and/or other
compensation which is or may become due to MGA under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. In the event of such waiver, MGA shall notify Company in writing of its determination. The effective date of
such waiver shall be stated on the written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Any such waiver shall be a full, complete, and unconditional waiver of MGA's right to receive the amount
indicated in the written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. MGA shall be under no obligation to waive any amounts that may be due under the Agreement, and no waiver shall
be construed to create any obligation of MGA to waive such amounts due in the future. No such waiver shall affect Company's obligations to pay MGA any other amounts that may be owed pursuant to the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Except as modified herein, the Agreement shall remain in full force and effect and any other rights or duties
of the parties to the Agreement shall be unaffected by this Fourth Amendment to the Agreement.

**IN WITNESS WHEREOF,** the parties have executed this First Amendment to the Agreement as of the date set forth above.

---

| | | | |
|:---|:---|:---|:---|
| SAFEPOINT MGA, LLC | SAFEPOINT MGA, LLC | SAFEPOINT INSURANCE COMPANY | SAFEPOINT INSURANCE COMPANY |
| By: | /s/ Steve Hoffman | By: | /s/ Nancy Baily |
| Its: | CFO | Its: | C.O.O. |

---

------

**THIRD AMENDMENT TO** 

**MANAGING GENERAL AGENCY AND CLAIMS ADMINISTRATION AGREEMENT** 

**Between** 

**SAFEPOINT MGA, LLC** 

**(Hereinafter called the "MGA")** 

**And** 

**SAFEPOINT INSURANCE COMPANY** 

**(Hereinafter called the "Company")** 

**Made as of the 1st day of June, 2019** 

**WHEREAS,** MGA and Company entered into the Managing General Agency and Claims Administration Agreement dated as of November 14, 2013 ("Agreement"); and

**WHEREAS,** the MGA and Company have renewed this agreement twice for two year periods; and

**NOW, THEREFORE,** the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Amend SCHEDULE III D - Catastrophe Management Services and Fees-to the new fee schedule effective June 1, 2019 as approved by the Florida Office of insurance Regulation on July 3, 2019.

**IN WITNESS WHEREOF,** the parties have executed this Third Amendment to the Agreement as of the date set forth above.

---

| | | | |
|:---|:---|:---|:---|
| SAFEPOINT MGA, LLC | SAFEPOINT MGA, LLC | SAFEPOINT INSURANCE COMPANY | SAFEPOINT INSURANCE COMPANY |
| By: | /s/ Nancy Baily | By: | /s/ Steve Hoffman |
| Its: | C.O.D. | Its: | Chief Financial Officer |

---

------

This entire document is confidential trade secret and/or proprietary business information and must not be released pursuant to sections 624.4212, 624.4213, 688.001-688.009, 812.08 I, 815.04 and 815.045, Florida Statutes.

**SECOND AMENDMENT TO** 

**MANAGING GENERAL AGENCY AND CLAIMS ADMINISTRATION AGREEMENT** 

**Between** 

**SAFEPOINT MGA, LLC** 

**(Hereinafter called the "MGA")** 

**And** 

**SAFEPOINT INSURANCE COMPANY** 

**(Hereinafter called the "Company")** 

**Made as of the 1st day of January, 2018** 

**WHEREAS,** MGA and Company entered into the Managing General Agency and Claims Administration Agreement dated as of November 14, 2013 ("Agreement"); and

**WHEREAS,** MGA receives a commission under Section 5.1 of the Agreement equivalent to 24.5% of Company's Total Direct Written Premium; and

**WHEREAS,** MGA and Company desire to reduce MGA's commission to 23% of Company's Total Direct Written Premium effective as of January 1, 2018 and remain as such thereafter unless otherwise amended.

**NOW, THEREFORE,** the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Effective January 1, 2018, MGA's commission under Section 5.1 of the Agreement shall be 23.0%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as modified herein, the Agreement shall remain in full force and effect and any other rights or duties
of the parties to the Agreement shall be unaffected by this First Amendment to the Agreement.

**IN WITNESS WHEREOF,** the parties have executed this First Amendment to the Agreement as of the date set forth above.

---

| | | | |
|:---|:---|:---|:---|
| SAFEPOINT MGA, LLC | SAFEPOINT MGA, LLC | SAFEPOINT INSURANCE COMPANY | SAFEPOINT INSURANCE COMPANY |
| By: | /s/ Steve Hoffman | By: | /s/ David Flitman |
| Its: | CFO | Its: | CEO + President |

---

------

This entire document is confidential trade secret and/or proprietary business information and must not be released pursuant to sections 624.4212, 624.4213, 688.001-688.009, 812.081, 815.04 and 815.045, Florida Statutes.

**FIRST AMENDMENT TO** 

**MANAGING GENERAL AGENCY AND CLAIMS ADMINISTRATION AGREEMENT** 

**Between** 

**SAFEPOINT MGA, LLC** 

**(Hereinafter called the "MGA")** 

**And** 

**SAFEPOINT INSURANCE COMP ANY** 

**(Hereinafter called the "Company")** 

**Made as of the 1st day of July, 2017** 

**WHEREAS,** MGA and Company entered into the Managing General Agency and Claims Administration Agreement dated as of November 14, 2013 ("Agreement"); and

**WHEREAS,** MGA receives a commission under Section 5.1 of the Agreement equivalent to 24.5% of Company's Total Direct Written Premium; and

**WHEREAS,** MGA and Company desire to reduce MGA's commission to 21% effective for the period July 1, 2017 to December 31, 2017 ("Waiver Period"); and

**WHEREAS,** MGA and Company desire that, on and after January 1, 2018, the commission payable to the MGA by Company under Section 5.1 of the Agreement shall revert to 24.5%.

**NOW, THEREFORE,** the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. For the period July 1, 2017 to December 31, 2017, MGA's commission under Section 5.1 of
the Agreement shall be reduced from 24.5% to 21 %.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. On and after January 1, 2018, MGA's commission under Section 5.1 of the Agreement shall revert
to 24.5%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as modified herein, the Agreement shall remain in full force and effect and any other rights or duties
of the parties to the Agreement shall be unaffected by this First Amendment to the Agreement.

**IN WITNESS WHEREOF,** the parties have executed this First Amendment to the Agreement as of the date set forth above.

---

| | | | |
|:---|:---|:---|:---|
| SAFEPOINT MGA, LLC | SAFEPOINT MGA, LLC | SAFEPOINT INSURANCE COMPANY | SAFEPOINT INSURANCE COMPANY |
| By: | /s/ Steve Hoffman | By: | /s/ David Flitman |
| Its: | CFO | Its: | CFO + Treasurer |

---

------

**THIRD RENEWAL TO** 

**MANAGING GENERAL AGENCY AND CLAIMS ADMINISTRATION AGREEMENT** 

**Between** 

**SAFEPOINT MGA, LLC** 

**(Hereinafter called the "MGA")** 

**And** 

**SAFEPOINT INSURANCE COMPANY** 

**(Hereinafter called the "Company")** 

**Made as of the 14th day of November 2020** 

**WHEREAS,** MGA and Company entered into the Managing General Agency and Claims Administration Agreement dated as of November 14, 2013 ("Agreement"); and

**WHEREAS,** MGA shall have the option to renew the term of this Agreement for additional two-year periods commencing after the initial three-year term and any renewal term: and

**WHEREAS,** MGA desires to renew effective November 14. 2020 the term of this Agreement for an additional two-year period.

**NOW, THEREFORE,** the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Effective November 14, 2020 this agreement is therefore renewed for a two-year period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as modified herein, the Agreement shall remain in full force and effect and any other rights or duties
of the parties to the Agreement shall be unaffected by this Third Renewal to the Agreement.

**IN WITNESS WHEREOF,** the parties have executed this Third Renewal to the Agreement as of the date set forth above.

---

| | | | |
|:---|:---|:---|:---|
| SAFEPOINT MGA, LLC | SAFEPOINT MGA, LLC | SAFEPOINT INSURANCE COMPANY | SAFEPOINT INSURANCE COMPANY |
| By: | /s/ Steve Hoffman | By: | /s/ Nancy Baily |
| Its: | CFO | Its: | C.O.D. |

---

------

**SECOND RENEWAL TO** 

**MANAGING GENERAL AGENCY AND CLAIMS ADMINISTRATION AGREEMENT** 

**Between** 

**SAFEPOINT MGA, LLC** 

**(Hereinafter called the "MGA")** 

**And** 

**SAFEPOINT INSURANCE COMPANY** 

**(Hereinafter called the "Company")** 

**Made as of the 14th day of November, 2018** 

**WHEREAS,** MGA and Company entered into the Managing General Agency and Claims Administration Agreement dated as of November 14, 2013 ("Agreement"); and

**WHEREAS,** MGA shall have the option to renew the term of this Agreement for additional two year periods commencing after the initial three year term and any renewal term; and

**WHEREAS,** MGA desires to renew effective November 14, 2018 the term of this Agreement for an additional two year period.

**NOW, THEREFORE,** the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Effective November 14, 2018 this agreement is therefore renewed for a two year period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as modified herein, the Agreement shall remain in full force and effect and any other rights or duties
of the parties to the Agreement shall be unaffected by this Second Renewal to the Agreement.

**IN WITNESS WHEREOF,** the parties have executed this Second Renewal to the Agreement as of the date set forth above.

---

| | | | |
|:---|:---|:---|:---|
| SAFEPOINT MGA, LLC | SAFEPOINT MGA, LLC | SAFEPOINT INSURANCE COMPANY | SAFEPOINT INSURANCE COMPANY |
| By: | /s/ Steve Hoffman | By: | /s/ David Flitman |
| Its: | CFO | Its: | President |

---

------

**FIRST RENEWAL TO** 

**MANAGING GENERAL AGENCY AND CLAIMS ADMINISTRATION AGREEMENT** 

**Between** 

**SAFEPOINT MGA, LLC** 

**(Hereinafter called the "MGA")** 

**And** 

**SAFEPOINT INSURANCE COMPANY** 

**(Hereinafter called the "Company")** 

**Made as of the 14th day of November, 2016** 

**WHEREAS,** MGA and Company entered into the Managing General Agency and Claims Administration Agreement dated as of November 14, 2013 ("Agreement"); and

**WHEREAS,** MGA shall have the option to renew the term of this Agreement for additional two year periods commencing after the initial three year term and any renewal term; and

**WHEREAS,** MGA desires to renew effective November 14, 2016 the term of this Agreement for an additional two year period.

**NOW, THEREFORE,** the parties agree *as* follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Effective November 14, 2016 this agreement is therefore renewed for a two year period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as modified herein, the Agreement shall remain in full force and effect and any other rights or duties
of the parties to the Agreement shall be unaffected by this First Renewal to the Agreement.

**IN WITNESS WHEREOF,** the parties have executed this First Renewal to the Agreement as of the date set forth above.

---

| | | | |
|:---|:---|:---|:---|
| SAFEPOINT MGA, LLC | SAFEPOINT MGA, LLC | SAFEPOINT INSURANCE COMPANY | SAFEPOINT INSURANCE COMPANY |
| By: | /s/ Steve Hoffman | By: | /s/ David Flitman |
| Its: | CFO | Its: | President |

---

------

**MANAGING GENERAL AGENCY** 

**AND CLAIMS ADMINISTRATION AGREEMENT** 

**("Agreement")** 

**Between** 

**<u>Safepoint MGA, LLC</u>** 

**(Hereinafter, individually or collectively, the "MGA")** 

**And** 

**<u>Safepoint Insurance Company</u>** 

**(Hereinafter called the "Company")** 

**Made as of the 14 day of November, 2013.** 

**WHEREAS,** the Company is admitted to transact insurance business in the State of Florida, and issue policies of insurance in that state and may be admitted in additional jurisdictions in the future; and

**WHEREAS,** the Company desires MGA to act as its managing general agent with respect to insurance policies for the authorized insurance coverages (the "Authorized Coverages") set forth in Schedule I to this Agreement (the applied for, issued coverages are sometimes referred to as "Policy (ies)"), in each state in which the Company is licensed and authorized to transact insurance, including renewals, issued from the Effective Date of this Agreement until terminated as hereinafter set forth; and

**WHEREAS,** MGA desires to produce, administer and manage the Policies and to adjust claims and provide other services in connection with such policies, including but not limited to marketing, claims analysis, general ledger accounting, information services, product and underwriting development and management, and catastrophe risk management on behalf of the Company; and

**NOW, THEREFORE,** in consideration of the premises and the mutual covenants hereinafter contained, the parties have agreed that the terms of this Agreement shall be effective as of<u> </u>, 2013 , (the "Effective Date") and do otherwise agree as follows:

**ARTICLE I - GENERAL PRINCIPLES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. In accordance with § 626.7451, Florida Statutes ("F. S.") , or such other laws and regulations of such other jurisdictions encompassed by this Agreement, the Company appoints MGA for the purpose of producing and handling Policies for the Authorized Coverages of business set forth in Schedule I and issued or renewed on or after the Effective Date of this Agreement. MGA agrees to produce the Authorized Coverages of business in accordance with the territory and limits of liability set forth in Schedule I hereto and the Company's established and approved underwriting requirements and premiums for the Authorized Coverages of business.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. The Company, relying upon the expertise of MGA, grants authority to MGA hereunder solely with respect to the Policies. Nonetheless, the Company being at risk and having ultimate responsibility and authority for the Policies issued by MGA, at all times shall have the ultimate responsibility and discretion with respect to all matters pertaining to the Polices and to the general welfare of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. Consistent with the intention of the parties to produce an operating profit for the Company, MGA shall manage its affairs in accordance with the terms of the Agreement in an ethical and professional manner and in accordance with all applicable laws and regulations of the State of Florida or the applicable laws and regulations of such other states in which the Company is licensed and authorized to transact insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. The Company, relying upon the expertise of MGA, grants authority to MGA to solicit and negotiate reinsurance with respect to the programs authorized by the Company. Nonetheless, the Company being at risk and having ultimate responsibility for all reinsurance contracts issued, will have the ultimate responsibility and discretion with respect to the approval and contracting for all reinsurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 The Term of this Agreement shall continue for a period of three (3) years from the Effective Date unless sooner terminated pursuant to the terms of this Agreement. The MGA shall have the option to renew the term of this Agreement for additional two (2) year periods commencing after the initial three (3) year term and any renewal term by providing written notice to the Company at least ninety (90) days prior to the expiration of the initial three (3) year term or any renewal thereof.

------

**ARTICLE II - UNDERWRITING AUTHORITY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Agents</u>. The Company hereby grants to MGA authority to accept applications to issue the Policies received through appointed licensed insurance agents ("Producing Agents") and agents authorized as "Brokering Agents" (as defined in Section 626.752, F.S. or as defined by other similar statutes in any state in which the Company issues Policies) . MGA may not authorize or facilitate the appointment of any insurance broker or agent, or any other entity, to issue Policies on behalf of the Company without the prior written consent of the Company. The MGA may not appoint a sub-managing general agent for the business of the Company. The Company reserves the right to appoint one or more sub-Managing General Agents for the business of the Company. The MGA may not permit any of its sub-producers to serve on its Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. <u>Agent Agreements</u>. Any and all agreements with any insurance broker, agent, Producing Agent, Brokering Agent or other entity (hereinafter collectively called the "Agent") shall be made directly between MGA and such Agent. Such agreements shall provide that with respect to any action taken or not taken by MGA in connection with a Policy (ies) or this Agreement, the Agent shall look solely to MGA for any and all expenses, costs, causes of action and damages suffered by the Agent. Nothing in this Section is intended to create a cause or claim against MGA that the Agent would not otherwise have against the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. <u>Agent Responsibility</u>. MGA shall bear sole responsibility to oversee the placement of business through Agents. With respect to a Policy (ies) or this Agreement, MGA shall hold the Company harmless and reimburse the Company for any and all fines and expenses levied against or incurred by the Company as a result of MGA accepting business from an unlicensed Agent, or the failure of the Company, MGA, or any Brokering Agent to comply with Section 626.752, F.S. regulating the exchange of business between Insurer and Brokering Agents, unless such costs and expenses result solely from the Company's failure to take legally required or reasonably necessary specific actions recommended to the Company by MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. <u>Policy Services</u>. Pursuant to the terms and provisions of this Agreement, the Company hereby grants to MGA authority to receive and accept proposals of insurance from the Effective Date of this Agreement until the termination of this Agreement for the Authorized Coverages. Such authority shall include the binding of coverage, the issuing and endorsing of Policies in the name of the Company, and the canceling and non-renewing of such binders and contracts when the best judgment of MGA dictates.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. <u>Underwriting</u>. The Company grants MGA authority to provide the Policies pursuant to the underwriting guidelines provided in writing to MGA by the Company. Such underwriting guidelines shall include, but not be limited to, guidelines pertaining to the basis of the rates to be charged, types of risks to be written, maximum limits of liability, applicable exclusions, territorial limitations, policy cancellation provisions, and maximum policy period. All underwriting guidelines that the Company provides the MGA, in writing, shall be deemed incorporated in this Agreement by reference and adoptions. The Company grants MGA authority to operate within written guidelines approved in writing by the Company, subject, however, to the professional judgment of supervisory underwriting personnel; and any Policy issued by or at the request of MGA which does not fall within such guidelines shall, at the Company's request, be promptly terminated, and MGA shall indemnify the Company from and against any liability thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. <u>One-Year Terms</u>. The Company grants MGA authority to issue or have issued Policies having a maximum term of one year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. <u>Policy Language</u>. The Company grants MGA authority to utilize only insurance contract wordings, endorsement wordings and rates that are approved by the Company and are properly filed and approved, to the extent necessary, by the appropriate regulatory authorities of the State of Florida or of such other states in which the Company is licensed and authorized to transact insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. <u>MGA Appointment: Maximum Annual Net Written Premium Production</u>. The Company appoints MGA to issue Policies on behalf of the Company in the State of Florida and such other states in which the Company is licensed and authorized to transact insurance. Other than through MGA, Company agrees not to write the Authorized Coverages of business that the Company is duly licensed to write, or to appoint another managing general agent to write the Authorized Coverages of business that the Company is duly licensed to write, in the State of Florida or such other jurisdictions encompassed by this Agreement for during the term of this Agreement as set forth in paragraph 1.5 herein (the "Term"). Under no circumstances shall the MGA produce from the Authorized Coverages Net Written Premium in excess of $125,000,000 in any year without the express written approval of the Company for any Net Written Premium written in excess of the aforestated amount.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9. <u>Policyholder Information</u>. The Company shall not disclose, share, or otherwise make available to any other person, partnership, corporation, managing agent, agent, broker, independent agent or broker, underwriting manager, or other insurer information regarding the Company's policyholders who have been issued Policies pursuant to MGA's authority under this Agreement until one year after the termination of this Agreement. The foregoing limitation shall not prohibit the Company from disclosing such information to its independent accountants or auditors, insurance department examiners, or as otherwise required in the normal course of the Company's business. Company and MGA shall fully comply with the provisions of any applicable Federal laws, the laws of the State of Florida and the applicable laws of such other states in which the Company is licensed and authorized to transact insurance applicable to policyholder information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10. <u>Expirations</u>. In the event of the termination of this Agreement, MGA's records and the use and control of expirations of the Company's business produced by Agents registered or appointed by the Company shall remain the property of the MGA, subject to any rights in the Agents pursuant to the terms of any agreement between MGA and the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11. <u>Premium Financing</u>. With respect to Policies, MGA shall have the authority to enter into agreements with premium finance companies ("PFCs"), to receive notices of premium financing, to receive proceeds of premium financing, and to receive and act upon notices and requests of cancellations from PFCs. The MGA shall not delegate this authority to any Agent. Subject to the PFCs contracts with the insureds and applicable statutes (e.g. F.S. §627.848) and rules and regulations of the State of Florida or of such other states in which the Company transacts insurance, and to the extent of the contract balances due the PFCs from the insureds, the MGA shall return all unearned premium directly to the PFCs to the extent held by MGA and shall cause the Agents to return all unearned commission to the PFCs to the extent held by the Agents.

------

**ARTICLE III - HANDLING OF FUNDS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Depository Account</u>. MGA shall accept in a fiduciary capacity, on behalf of the Company, all premiums, policies, fees, interest, and service charges collected and other funds relating to the business written under this Agreement. The Company shall establish and maintain a "Depository Account" in a bank mutually agreed upon by MGA and the Company. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation. All premiums, policy fees, interest, and service charges collected by MGA shall be deposited into the Depository Account. Deposits to the Depository Account are to be made daily or no less seldom than weekly if daily determination of deposit amount required is not feasible. Subject to the terms of this Agreement, the proceeds of the Depository Account shall be used for payments as directed by the Company. There may be retained in such Depository Account no more than sixty (60) days of estimated claim payments and Allocated Loss Adjustment Expenses. It is acknowledged and agreed that any investment income earned and costs assessed in connection with the Depository Account belong to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>No Commingling</u>. The MGA shall not commingle any premium or escrow trust funds with personal accounts or other funds held by MGA in any other capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. <u>Premiums</u>. MGA assumes responsibilities for, and shall promptly, on no less than a monthly basis, pay the Company all premiums collected on Policies issued by or through MGA or on MGA's behalf for the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. <u>Disbursement Account</u>. The Company will maintain and adequately fund a Disbursement Account ("Disbursement Account") for the payment by MGA of unearned premiums arising due to cancellation or endorsement of the Company's Policies produced by MGA. The Company and MGA shall each have signature authority over this account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. <u>Bank Failure</u>. MGA shall not be liable for any loss which occurs by reason of the default or failure of the bank in which the Depository Account and Disbursement Account are maintained and such loss shall not affect MGA's obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6. <u>Return Commissions</u>. MGA shall refund to the Company unearned commissions on policy cancellations, reductions in premiums or any other return premiums at the same rate of which such commissions were originally retained.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7. <u>Policy Fee</u>. MGA shall comply with the provisions of Section 626.7451(11), F.S., and the applicable laws and regulations of such other states in which the Company is licensed and authorized to transact insurance, and shall be entitled to retain as fully earned upon collection any duly authorized and collected per-policy fee pursuant to such law(s). The per-policy fee in Florida shall not exceed $25. 00 or such other amount as may be authorized under Florida law or the amount established by applicable laws and regulations in such other states in which the Company is licensed and authorized to transact insurance, as applicable. In no instance shall the aggregate of the per-policy fees for a placement of business authorized under Section 626.7451(11), Florida Statutes, when combined with any other per-policy fee charged by the Company, result in per-policy fees which exceed the aggregate amount of $25.00 or the amount as may be authorized by Florida law or the amount established by the applicable laws and regulations in such other states in which the Company is licensed and authorized to transact insurance, as applicable. The per-policy fee shall be a component of the Company's rate filing, if required by the applicable laws of each state in which the Company transacts business.

**ARTICLE IV - OTHER REPORTS & REQUIREMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Underwriting Records</u>. MGA shall maintain separate, complete and orderly underwriting files or electronic files, records and accounts of all transactions involving the Company in accordance with generally accepted insurance and accounting practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>Inspection</u>. The Company or its authorized representatives shall have the right (but not the obligation) at all reasonable times during business hours of operations to inspect MGA's books, records and bank accounts, whether located, which pertain to the business which is the subject of this Agreement and shall have the right to copy or make abstracts from such books and records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>Written Operating Procedures</u>. MGA shall establish and maintain written operating procedures regarding the issuance of all Policies and endorsements, as well as the collection of premiums related thereto. Such procedures shall be forwarded to the Company and shall be subject to the Company's review and written approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>Financial Statement</u>. Within one hundred fifty (150) days after the end of each fiscal year of MGA, MGA shall furnish the Company with true copies of its unaudited financial statements and the audited, certified balance sheet and related statement of operations of MGA for such fiscal year.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. <u>Records</u>. MGA shall maintain permanent physical or electronic copies of all Policies and applications or correspondence related to the Policies, either as hard copies, on microfiche or archived in electronic media. The Company shall have access and the right to copy all accounts and records related to business written hereunder in a form usable by the Company. MGA shall provide access to all MGA' s books, bank accounts, and records to the Florida Office of Insurance Regulation and Department of Financial Services (collectively, the "Department") or other applicable regulatory authorities in each state in which the Company transacts insurance in a form usable by the Department or such other regulatory authority. All records shall be retained by the MGA according to the provisions of Section 626.561, F.S., or the applicable laws and regulations of such other states in which the Company is licensed and authorized to transact insurance. MGA will not destroy these permanent copies without the written permission of the Company for the longer of five (5) years from the termination date of the Policy or the period specified by the applicable Florida statute regulating preservation of records or the other applicable laws and regulations of such other states in which the Company is licensed and authorized to transact insurance.

4.6. <u>Complaints: Company' s Duty to Forward Complaints</u>. The MGA shall maintain and make available for inspection by the Company, complaint log (s) of all written: (i) complaints and requests for assistance filed with MGA or the Company by the Department or any other agency or department of the State of Florida or any other state or jurisdiction, at the request of an insured, claimant, lienholder, or any other interested party to a Policy or claim thereunder; and (ii) lawsuits and arbitrations. The log(s) will include the name of the complainant, the Policy number and/or claim number, and the date the complaint was received. MGA shall maintain copies of the complaints and MGA' s written response regarding resolution and remedy of said complaint. The Company shall forward to MGA, by next day delivery service, all complaints, time-demand correspondence, and subpoenas received by the Company relevant to the MGA on this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7. <u>Licenses</u>. The Company and MGA shall maintain all licenses and regulatory approvals necessary to conduct the business covered under this Agreement. MGA represents that it holds a currently effective managing agent's license in Florida and any other license required in such other jurisdictions in which the Company does business with the MGA pursuant to this Agreement and agrees to maintain such license during the Term of this Agreement and any extensions thereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8. <u>Cancellations</u>. Notwithstanding the authority granted to MGA by the Company, the Company may require MGA to terminate coverage provided by any Policy so long as such termination does not violate Florida law or the laws and regulations of any other state in which the Company is licensed and authorized to transact insurance. If the Company exercises this right, the Company shall do so in a writing which includes the reasons for such termination and which instructs MGA to send appropriate non-renewal or cancellation notice as required by contract wording or relevant regulatory or statutory authority to terminate coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9. <u>Agent Licensing</u>. MGA is required and agrees to be in compliance with, and MGA shall make reasonable inquiry and take all reasonable steps to ascertain that all Agents are in compliance with, all state laws and regulations, which affect the Policies and the Agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10. <u>IRS Forms</u>. MGA shall prepare and furnish each Agent with an IRS form 1099 each year when required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11. <u>Advertisement</u>. MGA shall obtain the approval of the Company before issuing any advertisement, circular, pamphlet or other publication, which refers to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12. <u>Errors and Omissions Coverage</u>. To further secure the Company, MGA shall maintain an errors and omissions insurance policy issued by an insurance carrier admitted in Florida, rated "B+" or better by A.M. Best, with policy limits of no less than One Million Dollars ($1,000,000), and a deductible no greater than One Hundred Thousand Dollars ($100,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13. <u>Report of Accounts</u>. MGA shall render accounts to the Company detailing all transactions and remit all funds due under the terms of this Agreement to the Company on a monthly or more frequent basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14. <u>Additional Limitations on Authority</u>. The Company does not grant MGA authority to, and MGA shall not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Negotiate, cede, purchase, or bind any reinsurance or retrocession, including but not limited to facultative or
treaty, on behalf of the Company without approval by the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Commit the Company to participate in insurance or reinsurance syndicates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Appoint any Agent or producer without assuring that such Agent is lawfully licensed to transact the type of
insurance for which such Agent is appointed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Collect any payment from a reinsurer without the Company's prior approval. If prior approval is given, a
report must be promptly forwarded to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Without the prior approval of the Company, pay or commit the Company to pay a claim over a specified amount,
net of reinsurance, which exceeds one (1%) percent of the Company's policyholder's surplus as of December 31 of the last completed calendar year.

**ARTICLE V - MGA'S COMPENSATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>Compensation</u>. The Company shall pay to MGA, as its sole and full compensation for all authorized business placed with the Company under this Agreement, and not including the fees and expenses to be paid to MGA for those claim adjustment services provided in Article VII herein, the commission and policy fee set forth in Schedule II to this Agreement (hereinafter the "Compensation").

**ARTICLE VI - EXPENSES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. <u>MGA' s Expenses</u>. Except as otherwise provided in this Agreement, MGA shall pay all expenses incurred by MGA in connection with the underwriting, production, marketing and servicing of the Policies, including but not limited to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Printing of proposals, policy jackets, contracts of insurance, endorsements, cancellation notices, premium
notices, records and reports, and all other documents required to fulfill the obligations of MGA under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Advertising and public relations expenses authorized by MGA. The Company's prior written approval shall
be required with respect to any advertising or public relations material that contains the Company's name and logo.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. MGA's general office expenses, including rent, salaries, utilities, data processing performed by MGA,
transportation, furniture, fixtures, equipment, supplies, telephone, postage, and other general overhead expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. <u>Company's Expenses</u>. The Company shall pay directly all charges and expenses directly attributable to its operations, including but not being limited to the following: Board and Bureau fees; state guaranty fund assessments and other assessments for, or based on, business written pursuant to this Agreement; premium taxes and any other assessments levied by a state or local governmental authority on business written hereunder; cost of reinsurance; legal and auditing expenses incurred at the direction of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. <u>Reimbursement by MGA</u>. In addition to any rights granted to the Company hereunder, the Company shall be entitled to immediate reimbursement or payment from MGA for all ordinary, reasonable and necessary costs, charges and expenses (collectively called "Expenses") paid or incurred by the Company by reason of or in connection with (i) the termination pursuant to Section 9. 2 of this Agreement, or (ii) the breach or non-performance of any covenant or obligation to be observed or performed by MGA or any Agent; provided, however that in the case of a breach or non-performance by MGA, the Company shall have given MGA written notice of the breach or non-performance and MGA shall not have cured same within thirty (30) days after the date of the notice, or if same is of such a nature that it cannot reasonably be cured within such time, if MGA has not within such time commenced to cure same and does not diligently continue to and actually cure same. Any expenses incurred by the Company after the giving of such notice shall be promptly reimbursed by MGA. Without limiting the generality of the foregoing, MGA's covenants and obligations as referred to herein shall include but not be limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the obligation to deposit, report and remit premiums to the company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the obligation to remit return premiums to the insureds when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the obligation to process all policies, endorsements and notices of cancellation and/or non-renewal pursuant to the Company's underwriting guidelines;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the obligation to observe and comply with underwriting guidelines and sub-agent appointment procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. the obligation to observe and comply with all statutes, regulations, rules and rates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. the obligation to comply with the requirements of Article III hereinabove.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. The writing, binding or issuance of policies and risks by MGA not in accordance with the conditions set forth
in this Agreement and any Addenda hereto constitutes a breach of this Agreement, and any loss and expense incurred by the Company resulting from such breach shall be assumed by MGA. In the event the Company sustains a loss on a Policy or risk which
the MGA has written, issued or bound which is not within the scope of its authority under this Agreement and any addendum hereto, MGA shall reimburse the Company for the amount of the loss plus the expenses incurred by the Company because of the
loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. <u>Coverage</u>. In the event that any obligation to grant or extend insurance coverage is imposed on the Company by a Court or the Department or any other state or jurisdiction as a result of any breach or non-performance by MGA or any Agent of its or their obligations under Policies, then and in that event, MGA shall (a) pay any fine or penalty imposed upon the Company and all Expenses incurred by the Company. MGA may seek reimbursement for such fine, penalty, or Expenses from the responsible Agent or cause such Agent to pay such fine, penalty, or Expense.

**ARTICLE VII - CLAIMS ADMINISTRATION SERVICES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. <u>General Authority</u>. The Company appoints MGA for the purpose of investigating, evaluating, handling, adjusting, and settling each claim which may arise during the term of this Agreement under the Policies ("Claims Services") within the established authority for claims as set forth in Schedule III which is incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. <u>Duties of MGA</u>. In addition to, and without limiting, any duties which may be owed by MGA pursuant to Florida law or the laws of such other states in which the Company is licensed and authorized to transact insurance, and the applicable regulations pertaining thereto, MGA shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Utilize and enter the Company claims data into the claims administrative system as directed by Company in a
timely manner.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Dedicate sufficient and appropriate human, equipment and computer resources to provide Company with the Claims
Services enumerated in Schedule III to this Agreement. The Claims Services shall use only licensed adjusters(as defined in F. S. Chapter 626, Part VI or the other laws and regulations of such other states in which the Company is licensed and
authorized to transact insurance and does transact business (if applicable)), and licensed private investigators (as described in Chapter 493, F.S. or the laws and regulations of such other states in which the Company is licensed and authorized to
transact insurance and does transact business (if applicable)), or catastrophic adjusters, where applicable, (as defined in F. S. §626. 859 or the laws and regulations of such other states in which the Company is licensed and authorized and
does transact insurance (if applicable)), and such adjusters and investigators shall comply with and conform to the Florida Statutes, and any applicable rules, orders, and written interpretations issued by the Department or such other laws and
regulations of such other states in which the Company is licensed and authorized and does transact insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Investigate, evaluate, handle, adjust and settle each claim assigned MGA within the authority established for
claims as set forth in Schedule III, which authority is subject to termination for cause or upon termination of this agreement in accordance with §626.7451 (7) (d) or such other laws and regulations of such other states in which the Company is
licensed and authorized and does transact insurance (if applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Designate an employee to act as liaison with Company to facilitate the provision of the Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Maintain the confidentiality of data or information which is the property of Company and which is directly
accessible to MGA in the implementation and performance of the Claims Services.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Maintain complete, accurate and orderly claims books, files, records and accounts of all transactions in
accordance with generally accepted insurance and accounting practices, which files shall be the joint property of the Company and MGA. The data in any electronic claims files maintained by the MGA shall be transmitted to the Company in a timely
manner as reasonably directed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Maintain during the term of this Agreement copies of all claims and correspondence related to the claims for a
period of six (6) years after the date of closure of such claim. MGA shall not destroy these copies without the written permission of the Company. MGA may, with permission from Company, use magnetic, optical, and other types of technology to store
such data. At the end of such six (6) year period relevant to any claim, the Company shall authorize MGA to either (a) destroy the closed file or (b) return such file to Company at Company's expense. Upon an order of liquidation
of the Company, the claims files shall become the sole property of the Company or its estate once MGA has been paid for the services rendered. MGA shall have reasonable access to and the right to copy all files, books and records on a timely basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. The MGA shall adjust and handle all claims still open upon termination or cancellation of this Agreement for an
agreed upon fee per claim. Company shall continue to be responsible for the payment and reimbursement of expenses for such claims as provided in this Article VII. Notwithstanding the foregoing, any settlement authority granted to the MGA may be
terminated for cause upon the Company's written notice to the MGA or upon termination of this Agreement. The Company may suspend the MGA's settlement authority during the pendency of any dispute regarding the cause for termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. MGA agrees that all claims occurring during the Term of this Agreement will be reported to the Company and will
be assigned to properly licensed persons.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. MGA agrees that Notice shall be sent by the MGA to the Company as soon as it becomes known that a claim:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Exceeds the limit set by the insurer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Involves a coverage dispute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Exceeds the managing general agent's claims settlement authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Is open for more than 6 months; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Is closed by payment of an amount set by the Department or an amount set by the insurer, whichever is less.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. <u>Company Discretion</u>. MGA acknowledges and agrees that Company, as the party at risk and having ultimate responsibility for the claims to be administered by MGA, shall at all times have ultimate discretion and authority with respect to all matters pertaining to the claims including, without limitation, the processing, handling, disposition, settlement, defense and litigation of all claims. The exercise or failure to exercise such discretion and authority shall not in any way diminish, impair or otherwise affect the obligations of MGA hereunder, including, without limitation, the obligations to exercise reasonable care, to act in good faith, and to otherwise act in a prudent, fair and appropriate manner with regard to the Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. Duties of Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Company agrees that all claims occurring during the Term of, and under, this Agreement will be reported and
assigned to MGA, unless Company otherwise notifies MGA. Company will provide all information, in its possession, relevant to particular claims assigned to MGA in order for MGA to fulfill its duties and obligations as set out in Schedule III. MGA
shall notify Company, in writing, should Company fail to provide any relevant information requested by MGA regarding any specific claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Company shall appoint an individual with sufficient authority within Company's organization to facilitate
MGA's performance of the Claims Services enumerated in Schedule III.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Company has ultimate authority and responsibility for authorizing claims payment and settlement over
MGA's authority of Twenty thousand dollars, ($20,000).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Company shall provide to MGA at no cost to MGA access to the policy or claims administrator system of Company
on a twenty-four (24) hours a day, seven (7) days a week basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5. <u>Audit Provisions</u>. The Company, its employees, and/or its authorized agents shall have the right, at any reasonable time during normal business hours and with reasonable notice to the MGA, to review and/or audit Company's claim files maintained by the MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6. <u>Price and Payment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Company agrees to pay Service Fees and Rates as specified in Schedule II through Schedule III C of this
Agreement. Schedule II shall govern the Service Fees and Rates payable to MGA by Company on all new and renewal business written by Company. Schedule III A shall govern the Services Fees and Rates payable to MGA by Company for subrogation and
salvage activities. Schedule III B shall govern the Services Fees and Rates payable to MGA by Company under those special circumstances as agreed to in writing by the parties. Schedule III C shall govern the Services Fees and Rates payable to MGA by
Company for catastrophic management services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Service Fees and Rates may increase or decrease by mutual written agreement, if changes in the Claims
Services mutually agreed to in writing substantially alter the servicing personnel, equipment, or result in the servicing being done on a different system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Company agrees to pay all tariffs and taxes that are now or may become applicable to the Claims Services
rendered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Service Fees and Rates for Claims Services will be due and payable fifteen (15) days after the close of the
month in which Claims Services are performed in amounts pursuant to Schedules III A through III C attached to this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. MGA and Company will renegotiate, in good faith, the Claims Services Fees in the event of statutory,
regulatory, or judicial changes that require additional activities not contemplated at the inception of this Agreement. Should the parties be unable to reach an agreement, either party may terminate this Agreement upon advance written notice to the
other party at least ninety (90) days prior to the effective date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7. <u>Definition and Payment of "Allocated Loss Adjustment Expense."</u> All Allocated Loss Adjustment Expenses shall be paid by the Company. For purposes of this Agreement, Allocated Loss Adjustment Expense(s) shall mean any expense which is chargeable or attributable to the investigation, coverage analysis, adjustment, negotiation, settlement, defense or general handling of any Claim(s) or action(s) related thereto, or to the protection and/or perfection of the Company's and/or its insured's right of subrogation, contribution or indemnification. Allocated Loss Adjustment Expense(s) includes, but is not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Attorney's fees and disbursements incurred in connection with the determination of coverage and/or the
adjustment, defense, negotiation or settlement of any Claim; attorney's fees incurred for representation at depositions, hearings, pretrial conferences and/or trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Costs incurred in handling any Alternative Dispute resolution proceeding ("ADR"), legal actions,
including trials or appeals, or in pursuing any declaratory judgment action, including deposition fees, cost of appeal bonds, court reporter or stenographic service fees, filing fees, and other court costs, fees and expenses, transcript or printing
costs and all discovery expenses; fees for service of process; fees for witnesses' testimony, opinions, or attendance at hearings or trial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Statutory fines or penalties; pre- and post-judgment interest paid as a
result of litigation, unless legal requirements define such interest as indemnity payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Subcontractors' fees and travel expenses, including independent adjusters, automobile and property
appraisers, to the extent that same are incurred in the adjustment, negotiation, settlement or defense of any Claim (excluding MGA's employees);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Experts' fees including reconstruction experts, engineers, cause and origin reports, photographers,
accountants, economists, metallurgists, cartographers, architects, hand-writing experts, physicians, appraisers and other natural and physical science experts, plus the costs associated with preparation of expert reports, depositions, and testimony;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Fees for surveillance, undercover operative and detective services or any other investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Costs for medical examinations, or autopsies, including diagnostic services, and related transportation costs,
fees for medical reports and rehabilitation evaluations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Costs for any public records, medical records, credit bureau reports, and other like reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Costs and expenses incurred where MGA determines it is reasonable to pursue the rights of contribution,
indemnification or subrogation of the Company and/or its insured, including attorney and collection agency fees and/or expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Medical or vocational rehabilitation expenses, and all other medical cost containment services, including, but
not limited to, utilization review, pre-audit admission authorization, hospital bill audit or adjudication, provider bill audit or adjudication, and review of medical case management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Extraordinary travel and related expenses incurred by MGA at the express written request and approval of a
Company officer, which are not otherwise payable under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. With respect to MGA's determination that an expense (s) incurred pursuant to this Agreement is an
Allocated Loss Adjustment Expense, MGA makes no representation or warranty and assumes no responsibility that such determination (i) is in compliance with or meets the requirements of any statistical plan filing, statutory, regulatory, or
insurance industry reporting scheme or the definition of the Allocated Loss Adjustment Expense thereunder; (ii) is or could be characterized as payment of loss or indemnity; or (iii) is or is not subject to insurance or reinsurance
coverage or limits. Company agrees that it is responsible for making all such judgments and for complying with any and all such requirements.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8. <u>Limitation of Liability and Remedies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In providing the Claims Services hereunder, MGA shall have a duty to act with a reasonable due care and
caution, in good faith, and in a prudent manner. MGA shall be liable to Company for any loss or damage sustained by Company as a result of, or related in whole or part to, the bad faith, gross negligence or other intentional misconduct on the part
of MGA, or its officers, directors, employees or agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. MGA agrees to indemnify, defend and hold harmless Company, its officers, directors, employees, agents,
designees and affiliates (collectively "Indemnified Parties"), from and against any and all claims, causes of action, liabilities, liens, fines, penalties, demands, costs, fees, expenses (including reasonable attorney's fees),
suits, judgments, adjudications and losses of whatever kind or nature incurred by, or claimed against, any of the Indemnified Parties by reason of any bad faith, negligence, or other misconduct by MGA, or any of its officers, directors, employees or
agents, or by reason of any breach of this Agreement by MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. MGA shall have no indemnity obligation under this Agreement for any act or omission of the MGA taken or omitted
to be taken at the express direction of Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. All indemnity obligations of MGA under this Agreement shall survive the termination or expiration of this
Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. MGA warrants that it now has and shall maintain during the term of this Agreement for the protection and
benefit of the Company and MGA liability insurance coverage and errors and omissions coverage in an amount of not less than One Million Dollars ($1,000,000) for any one event and in an amount of not less than Two Million Dollars ($2,000,000) in the
aggregate. Such coverages shall be in a form and with a company acceptable to Company and proof of such coverages shall be provided to Company upon request.

------

**ARTICLE VIII - TERMINATION** 

8.1. <u>Continuing Authority</u>. The authority of MGA to issue Policies under this Agreement shall be continuous until terminated, except for mandatory renewals of existing Policies. This Agreement may be terminated by either party, at the end of any calendar quarter, without cause, by giving the other party not less than one hundred twenty (120) days prior written notice of such termination.

8.2. <u>Termination By Company with or without Cause</u>. This Agreement shall terminate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Automatically and immediately at the written election of the Company, if any public authority cancels or
declines to renew any of the licenses of MGA necessary to fulfill the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Automatically and immediately in the event of a transfer, sale or pledge of the majority of the stock or a
substantial portion of the assets of MGA, unless this Agreement is assigned with the express written consent of the Company, or unless the pledge of stock is to a federal or state charted bank to secure loans from the bank to MGA, provided in the
event of such permitted pledge that this Agreement shall terminate if the pledged stock is foreclosed upon or otherwise acquired by the pledgee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. At the election of the Company upon MGA's material violation of any provision of this Agreement;
provided, however, that MGA will be allowed thirty (30) days, after written notice, to cure any non-monetary breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Immediately, at the election of the Company for the occurrence of any failure by MGA to comply with the
provisions of Section 6.3 a. or b.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Sixty (60) days after delivery of written notice to terminate to MGA at the election of the Company for
any reason.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. <u>Termination by MGA</u>. This Agreement may be terminated at the election of and upon written notice from MGA upon the failure of the Company: (a) to remain licensed in the State of Florida or any other state in which the Company is licensed and authorized to transact insurance; (b) to comply with Florida laws and Department Rules and Regulations and the applicable laws of such other states in which the Company is licensed and authorized to transact insurance; or (c) to comply with the material provisions of this Agreement; provided, however, that Company will be allowed thirty (30) days, after written notice, to cure any non-monetary breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. <u>Suspension and Revocation of Authority</u>. The Company may suspend MGA's underwriting authority during the pendency of any dispute regarding the termination of this Agreement. The Company and MGA shall fulfill their obligations under the Policies regardless of any dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5. <u>Effect of Termination</u>. In the event of proper termination of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Except as set forth in Section 7.2.h. herein, the obligations of MGA and the Company under this Agreement
shall be discharged promptly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. No party shall have a claim upon the other for loss of prospective profit or damage to the business arising
therefrom; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. MGA' s records shall remain the property of MGA and left in MGA's possession, provided MGA is in
compliance with all of its obligations to the Company. Copies of such documents shall be furnished to the Company by MGA upon written request of Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6. <u>Run-off</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Company shall, concurrent with its notice of termination or within thirty (30) days of MGA' s
notice of termination, notify MGA of whether the Company intends to have MGA service the Policies through their run-off, or whether it intends to manage the run-off itself. Except as set forth in Section 7.2.h. herein, MGA's compensation in either event is set forth in Schedule II to this Agreement. For purposes of this Agreement, the term "run-off" shall mean confirming coverage under the Polices to claims adjusters, administering the in-force Policies and any required renewals and endorsement thereof, providing reports to the Company as elsewhere

------

required by this Agreement, paying premium to the Company and return premium to the insureds, collecting all sums due from Agents, including return commissions, and such other activities of MGA specifically required by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. MGA shall upon demand return to the Company any Policies, forms or other supplies imprinted with the
Company's name regardless of who incurred the cost for same, or any Policies, forms or other supplies furnished to MGA by the Company, with the exception of any forms which in MGA's reasonable opinion are required to complete an orderly run-off of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. In the event this Agreement terminates and/or MGA refuses or is unable to administer and run-off business produced under this Agreement, then in that event MGA shall immediately provide the Company with a tape back-up of all programs and data libraries, including
updated source code and data files, used in the production and administration of business hereunder (the "Data") . The Company agrees that it shall utilize the Data solely for the purpose of administering and running off the business
produced hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. MGA hereby grants, at no cost to the Company, a limited license to the Company to use MGA's Software in
connection with the administration and run-off of the business produced hereunder. MGA shall deliver the Software, together with the source and object code for the Software, as well as all available related
manuals, immediately upon delivery of the Data to the Company as provided in the preceding Section.

**ARTICLE IX - ARBITRATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. Any controversy, claim or dispute arising out of or relating to this Agreement, including questions regarding the arbitrability of any issues or the scope, applicability, enforceability, validity or breach of this or any other provision of this Agreement or differences of opinion as to the interpretation of this Agreement, shall be submitted to arbitration, one arbitrator to be chosen by the Company, one by MGA, and an umpire by the two arbitrators (the arbitrators and umpire are referred to as the "Panel").

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. 2. The Panel shall, unless the parties otherwise agree, shall meet in Ft Lauderdale, Florida. Members of the Panel shall be disinterested officers or former officers of property and casualty insurance companies or insurance agencies authorized to transact business in the state in which the controversy, claim or dispute arose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. 3. The arbitration shall be instituted by the claimant serving a notice upon the respondent setting forth a statement of the nature of the dispute and the name, address and current (or last, if retired) employment position of the arbitrator appointed by the claimant. The respondent shall appoint its arbitrator within twenty (20) days after service of claimant's notice and shall, within such time, similarly notify claimant of the name, address and current (or last, if retired) employment position of the respondent's arbitrator. If the respondent fails to appoint its arbitrator within such twenty (20) day period, the claimant shall also appoint the second arbitrator within ten (10) days after the expiration of the twenty (20) days for respondent to appoint its arbitrator. If the two arbitrators fail to agree upon the appointment of an umpire at the end of the twenty (20) days following the last date of the appointment of the arbitrators, then they each shall, within ten (10) days thereafter, name three (3) candidates who serve as umpire, and within ten (10) days thereafter each shall decline two (2) of the candidates named by the other; within five (5) days thereafter, a decision shall be made by drawing lots as to which of the last two (2) candidates shall be the umpire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. The respondent shall submit its statement within twenty (20) days after receipt of the claimant's statement, and the claimant may submit a reply statement within ten (10) days after the receipt of the respondent's statement. Copies of all statements shall be sent to the parties and the Panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5. Any hearing shall commence within thirty (30) days following the selection of the umpire. The Panel shall render its decision within thirty (30) days following the termination of the hearings unless the parties consent to an extension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6. The Panel shall consider this Agreement an honorable engagement rather than merely a legal obligation and shall make its decision with regard to the custom and usage of the insurance and reinsurance business. The Panel shall issue its decision in writing upon evidence introduced at a hearing or by other means of submitting evidence in which strict rules of evidence need not be followed, but in which cross examination and rebuttal shall be allowed if requested. The majority decision of the Panel shall be final and binding upon all parties to the proceeding. Judgment may be entered confirming the award of the Panel in any court having jurisdiction thereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. 7. Each party shall bear the expense of its own arbitrator and shall jointly and equally bear the expense of the umpire. The remaining costs of the arbitration proceedings shall be allocated by the Panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8. In the event of subsequent actions or proceedings necessary to enforce the judgment entered thereon or any other rights flowing therefrom, the prevailing party shall be entitled to recover its reasonable attorney's fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. 9. Any suit, action, or other proceeding by or against either party to this Agreement, including any proceeding to compel arbitration, to confirm the arbitration award, or to enforce any remedy available to either party may be brought in the Circuit Court of the State of Florida, County of Broward, or in the Untied States District Court for the Southern District of Florida, and each of the parties hereto submits and consents to the non-exclusive jurisdiction of each such court for the purpose of any such suit, action or proceeding. The parties agree that process in any action or proceeding shall be personally served and that such service shall be sufficient to confer <u>in personam</u> jurisdiction over the party so served.

**ARTICLE X - INDEMNITY AGREEMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. MGA shall indemnify the Company and its subsidiaries, successors, reinsurers and assignees, as well as their shareholders, directors, officers and agents against and in respect of any and all liabilities (as defined below), made or instituted against or incurred by the Company or such other indemnitees and which arise, either directly or indirectly, out of any action of inaction of MGA or any Agent, or their employees or representatives, in connection with any obligations of MGA arising out of this Agreement, including but not limited to any action or inaction of MGA concerning the termination of Agent (s) pursuant to all applicable laws. This Section 11.1 does not apply to the extent that the loss resulted from action or inaction of MGA, which is a result of acting in accordance with the written instructions of the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. The Company shall indemnify MGA and its subsidiaries, successors, reinsurers and assignees, as well as their shareholders, directors, officers and agents against and in respect of any and all liabilities (as defined below) made or instituted against or incurred by MGA or such other indemnitees and which arise, either directly or indirectly, out of any action or inaction of the Company, or their employees or representatives, in connection with any obligations of the Company arising out of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. For purposes of this Article XI, "liabilities" means all claims, demands, actions, proceedings, liability, losses, damages, costs or expenses, including without limitation, attorneys' fees, disbursements and court costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4. The indemnification provisions of this Article X do not apply to covered claims made under any policy issued in accordance with this Agreement nor with regard to the Claims Services, as set forth in Section 7.8. herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5. All indemnity obligations herein shall survive the termination or expiration of this Agreement.

**ARTICLE XI - GENERAL PROVISIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. <u>Survival</u>. Article IX on Arbitration, Section 8.6 on "run-off", and all other provisions of this Agreement that are pertinent to the "run-off" and the Claims Services to be rendered under Section 7. 2. h. shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. <u>Independent Contractor Relationship</u>. Nothing herein shall create the relationship of employer and employee between the Company and MGA, it being understood and agreed that MGA is an independent contractor of the Company for the purposes set forth herein with all rights, powers and duties as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3. <u>Non-Assignable</u>. Neither Company nor MGA may assign this Agreement or any part thereof to another person or entity.

11.3(a) <u>Subcontracting</u>. MGA may subcontract or delegate its duties under this Agreement with other persons or entities, subject to the prior written consent of the Company, which consent may not be unreasonably withheld.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4. <u>Modification</u>. This Agreement may not be changed, nor may any provision hereof be waived, except by a written document signed by both parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5. <u>Non-Waiver</u>. The failure of the Company or MGA to insist on strict compliance with this Agreement, or to exercise any right or remedy hereunder, shall not constitute a waiver of any rights contained herein or estop the parties from thereafter demanding full and complete compliance therewith, or prevent the parties from thereafter demanding full and complete compliance therewith, nor prevent the parties from exercising any right or remedy in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6. <u>Notice</u>. Any notice required or permitted to be given under this Agreement shall be in writing and shall be deemed duly given if delivered personally, or by a recognized courier service, or by registered or certified mail, return receipt requested, to the party for whom it is intended at the following address or such other address as the party may designate from time to time.

For MGA: Safepoint MGA, LLC

908 Parsons Avenue, Suite D

Brandon, FL 33511

Attn: David Flitman

For the Company: Safepoint Insurance Company

908 Parsons Avenue, Suite D

Brandon, FL 33511

Attn: David Flitman

Notices shall be deemed given when delivered, or three (3) days after delivery to the courier or mailing, as above provided.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7. <u>Invalidity</u>. If any provision of this Agreement should be found to be invalid or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8. <u>Governing Law</u>. This Agreement shall be interpreted under and pursuant to the laws of the State of Florida, without giving effect to its conflicts of laws provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9. <u>Assigns</u>. Subject to the provisions of 12.3 hereof, this Agreement shall bind and benefit the successors and permitted assigns of the parties.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.10. <u>Counterparts</u>. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement.

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

---

| | | | |
|:---|:---|:---|:---|
|  Safepoint MGA, LLC | Safepoint MGA, LLC | | |
|  BY: | /s/ David Flitman | Date: | 2013 Nov 14 |
| Its: | <u>Chief Executive Officer</u> |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| Safepoint Insurance Company | Safepoint Insurance Company | | |
| BY: | /s/ David Flitman | Date: | 2013 Nov 14 |
| Its: | <u>Chief Executive Officer</u> |  |  |

---

------

<u>SCHEDULE I</u> 

AUTHORIZED COVERAGES, TERRITORY AND LIMITS OF COVERAGE

[Omitted]

------

<u>SCHEDULE II</u>

COMPENSATION

[Omitted]

------

<u>SCHEDULE III</u>

[Omitted]

------

<u>SCHEDULE III A</u> 

Fees Applicable to New and Renewal Business for Claims Services

[Omitted]

------

<u>SCHEDULE III B</u> 

Additional Compensation

[Omitted]

------

<u>SCHEDULE III C</u> 

Time and Expense Fees

[Omitted]

------

<u>SCHEDULE III D</u> 

Catastrophe Management Services & Fees

[Omitted]

------

**STATE SPECIFIC REGULATORY ADDENDUM** 

The following provisions in this Regulatory Addendum (this "Addendum") are incorporated into the Managing General Agency and Claims Administration Agreement dated as of November 14, 2013 (the "Agreement"). To the extent the terms of this Addendum are inconsistent with the terms of the Agreement, the terms of this Addendum shall control for specified State.

For the sake of clarity, in the event of a conflict between regulatory requirements, Florida law supercedes.

**Texas Provisions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company may suspend the authority of MGA during the pendency of any dispute regarding an event of default arising under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) On a monthly basis, MGA shall submit an account report to the Company which shall include a statement of written, earned, and unearned premiums; losses and loss expenses paid and outstanding; losses incurred but not reported; and fees owed to MGA. The report shall provide the information described above, and shall include both insurance and reinsurance transactions, if applicable. The account report must be received by or confirmed to the Company not later than 60 days from the close of the month for which business is reported. The Company must maintain the account report on file for at least three years and must make the account report available to insurance regulatory authorities for review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) MGA shall not be required to return, as commission or return commission, monies greater than the total commission paid or otherwise payable to MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) MGA shall maintain separate records with respect to the Company's business, include underwriting files, and the separate records of the Company must be maintained for at least five years or until the completion of a financial examination by the Florida Office of Insurance Regulation, whichever is longer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) MGA must report to the Company, within 30 days of determination, that a claim involves a coverage dispute, a demand in excess of policy limits, or allegations of bad faith, violations of the Texas Deceptive Trade Practices Act, or violations of Texas Insurance Code Chapter 541.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The Company shall conduct an examination of MGA on an annual basis. In addition, if the Company's aggregate premium volume increases by 30% in any 30-day period, the Company shall conduct an examination within 90 days if MGA writes more than 20% of the Company's volume and MGA has experienced an increase of 20% in premium volume during the same 30-day period.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The examination described above must adequately provide insurance regulatory authorities with the information described below; must be made available to such authorities for review; must remain on file with the Company for at least three years; and must, at a minimum, contain the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) claims procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) timeliness of claims payments, i.e., lag time between date claim is reported and date claim is paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) timeliness of premium reporting and collection;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) compliance with underwriting guidelines established pursuant to this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) reconciliation of policy inventory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) MGA must notify the Company in writing within 30 days if there is a change in: ownership of 10% or more of the outstanding stock of MGA; any principal officer of MGA; or any director of MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) MGA may not offset balances due under any other contract with any amount due under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) The Company shall retain final authority over disputes concerning claims settlement and the setting of loss reserves.

**Alabama, Louisiana, Mississippi, and New Jersey Provisions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) MGA shall not permit one of its sub-producers or sub-agents to serve on the Company's board of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) MGA shall not jointly employ an individual who is also employed with the Company.

**Additional Alabama Provisions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) MGA shall send a copy of a claim file to the Company as soon as it becomes known to MGA that the claim has the potential to exceed $300,000 (or a lesser amount if set by the Company) or if the claim is closed by a payment in excess of $300,000 (or a lesser amount if set by the Company).

**Additional New Jersey Provisions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company shall, within 15 days of any termination of the contract, file written notice of the termination with the commissioner of the New Jersey Department of Banking and Insurance (the "NJ DBI"). Notice of termination shall comply with all requirements established by the NJ DBI and shall indicate the date of termination and the reason therefor.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Depository Account (if applicable) shall be designated a "Trust Account" on the bank records and those words shall be displayed on the face of the checks on that account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If applicable, the following disbursements may be lawfully withdrawn from the Depository Account:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Non-premium monies received by the MGA in connection with soliciting,
negotiating, effecting, procuring, renewing, continuing or binding policies of insurance;;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Net or gross premium remittances due to producers or the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Claim payments or reinsurance premiums for transfer to another trust account when authorized by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Premiums due insureds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Commissions due the MGA, net any financial institution charge or commission due to an insurance producer,
provided that commissions are withdrawn only on premiums deposited into the Depository Account; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Voluntary deposits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Disbursements made pursuant to (3)b and d above shall be made payable to the MGA, the Company or the insured, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The Depository Account (if applicable) balance in the financial institution shall at all times be at least equal to the amount deposited less lawful withdrawals, except where the sole reason for the deficiency is the failure by a bank to honor checks of insureds or prospective insureds accepted in good faith as payment of premiums.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Separate records of business written by the MGA shall be maintained. The Company shall have access and the right to copy all accounts and records related to this business in a form usable by the Company and the NJ DBI shall have access to all books, bank accounts and records of the MGA in a form usable to the NJ DBI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The underwriting guidelines discussed in Article 2.5 of the Agreement shall also include, but not be limited to, guideline pertaining to the maximum annual premium volume.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) The Company shall have the right to cancel or non-renew any policy of insurance subject to the applicable laws and regulations of the State of New Jersey governing the cancellation and nonrenewal of insurance policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) All claims shall be reported to the Company within 30 days of a claim being reported to the MGA, unless otherwise specified with the Company; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) A copy of the claim file shall be sent to the Company at its request or as soon as it becomes known that the claim:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Has the potential to exceed $1,000,000 or exceeds the limit set by the Company, whichever is less;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Involves a coverage dispute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. May exceed the MGA's claims settlement authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Is open for more than six months; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Is closed by payment of $1,000,000 or an amount set by the Company, whichever is less.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) The MGA shall not appoint a sub-managing general agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) All policy and claim files shall be the joint property of the insurer and MGA. Upon termination of the MGA appointment for this State, all original policy and claim files shall be returned to the Company. The MGA may retain copies of these files.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) All books and records of account shall be maintained by the MGA for a period of five years after the termination of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) All records, books and documents maintained by the MGA shall be produced for examination by the NJ DBI or its duly authorized representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) The books and records maintained by the MGA may be maintained electronically if the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. That all the elements required to be maintained are contained in the electronic system;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. That, upon the request of the NJ DBI, the electronically kept records can be reproduced in hardcopy; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. That electronic backups are produced daily and, at least every 30 days, the records maintained electronically
are reproduced and stored off-site.

## Exhibit 10.5

**Exhibit 10.5** 

**POLICY ADMINISTRATION AND** 

**CLAIMS SERVICING AGREEMENT** 

**("Agreement")** 

**Between** 

**Cajun Underwriters Risk Managers** 

**(Hereinafter, individually or collectively, "CU")** 

**And** 

**Insight Risk Solutions** 

**(Hereinafter "IRS")** 

**Made as of the <u>15th</u> day of <u>June</u> , 2022.** 

WHEREAS, CU is the Attorney-in-Fact for and tasked with providing management, policy, claims and administrative services to Cajun Underwriters Reciprocal Exchange (hereinafter "CURE"), a Louisiana domiciled company admitted to transact insurance business in the State of Louisiana and issue policies of insurance in that state;

WHEREAS, CU desires to engage IRS to furnish policy administration and claims servicing with respect to insurance policies for the authorized insurance coverages (the "Authorized Coverages") set forth in Schedule I to this Agreement (the applied for, issued coverages are sometimes referred to as "Policy(ies)"), including renewals, issued from the Effective Date of this Agreement until terminated as hereinafter set forth; and

WHEREAS, IRS desires to produce, administer and manage the Policies and to adjust claims and provide other services in connection with such policies, including but not limited to marketing, claims analysis, general ledger accounting, information services, product and underwriting development and management, and catastrophe risk management on behalf the CU; and

NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, the parties have agreed that the terms of this Agreement shall be effective as of <u>June</u> <u>15</u>, 2022, (the "Effective Date") and do otherwise agree as follows:

**ARTICLE I — GENERAL PRINCIPLES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.** CU appoints IRS for the purpose of producing and handling Policies for the Authorized Coverages of business set forth in Schedule I and issued, renewed or assumed on or after the Effective Date of this Agreement. IRS agrees to produce the Authorized Coverages of business in accordance with the territory and limits of liability set forth in Schedule I hereto and CU's established and approved underwriting requirements and premiums for the Authorized Coverages of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.** CU, relying on the expertise of IRS, grants authority to IRS hereunder solely with respect to the Policies. Nonetheless, CU being at risk and having ultimate responsibility and authority for the Policies issued by IRS, at all times shall have the ultimate responsibility and discretion with respect to all matters pertaining to the Policies and to the general welfare of the CU.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.** IRS shall manage its affairs in accordance with the terms of the Agreement in an ethical and professional manner and in accordance with all applicable laws and regulations of the State of Louisiana.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.** The Term of this Agreement shall continue for a period of five (5) years from the Effective Date unless sooner terminated pursuant to the terms of this Agreement. IRS shall have the option to renew the term of this Agreement for additional three (3) year periods commencing after the initial five (5) year term and any renewal term by providing written notice to the CU at least ninety (90) days prior to the expiration of the initial five (5) year term or any renewal thereof.

**ARTICLE II — UNDERWRITING AND CUSTOMER SERVICE RESPONSIBILITIES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**2.1. General Underwriting and Customer Service Responsibilities.**</u> IRS, undertakes, by itself and through its subcontractors, to provide CU comprehensive management and administration of CU's insurance business subject to the terms and conditions stated herein and the corporate policies promulgated from time to time by CU. Without limiting the generality of the foregoing, IRS shall do the following, except as CU may from time to time otherwise expressly direct.

IRS shall have the authority and the duty to act for and on behalf of CU insofar as necessary for IRS to perform the functions necessary to carry out the terms of the Agreement, including, but not limited to, marketing, claims analysis, general ledger accounting, information services, product and underwriting development and management, and catastrophe risk management. IRS, through its personnel, facilities, contractual arrangements, and service providers, shall provide such services as set forth in this Agreement and any Addenda as may be attached hereto and incorporated into this Agreement by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>2.2 Marketing and Agency Relations.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** IRS shall ensure that the original source of all business produced under this Agreement shall be properly licensed Agents or Brokers, who maintain appropriate licenses, certificates of authority and appointments as required by regulators to conduct business under this Agreement. IRS shall conduct and maintain proper background checks of Agents and Brokers. Upon discovery, IRS shall immediately notify CU of any irregularities regarding any Agent or Broker. CU shall have the right to accept, reject or cancel any agent's appointment recommended or made by IRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** IRS shall have authority to recruit, contact with, manage, train, and supervise Agents as producing agents acting for and on behalf of IRS. IRS may appoint Agents for CU at IRS's expense, and upon execution of this Agreement, IRS shall provide to CU all information necessary or requested by CU to substantiate the expertise and acceptability of each Agent appointed. IRS shall maintain in force a written agreement, in a form acceptable to CU, with Agents and Brokers, who are not employees of IRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>(c) Advertising</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)** Subject to CU's direction and approval, IRS shall be responsible for advertising and marketing the Authorized Business.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**(2) Names, Logos and Marks.**</u> Except as required by regulations, IRS, any Agent or any Broker shall not use the name, logo, trademark or other service marks of CURE or any of its affiliates in any advertising, promotional materials or public manner of any nature without specific authorization and prior written approval from CU. Except as required by Regulations, CU shall not use the name, logo, trademark or other such service marks of IRS or any of its affiliates in any advertising, promotion materials or public manner of any nature without specific authorization and prior written approval from IRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**(3) Advertisements.**</u> A copy of any proposed advertisement, promotional materials or such public manner and a description of the intended use shall be forwarded to CU prior to its use. IRS shall maintain a copy of any and all advertisements and promotional materials containing CURE'S name and full details concerning where, when, and how such advertisements or promotional materials were used, and shall furnish CU a copy of all such advertisements, promotion materials and related information. IRS shall comply with all legal requirements regarding content, review and approval of advertising and maintenance of records. IRS shall maintain records of the names and addresses of recipients of any direct mailing or advertising when required by Regulations but shall in all instances record the geographical area in which such mailing or advertising was used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**2.3. Underwriting.**</u> IRS shall provide or shall supervise any subcontractors appointed by IRS or CU in providing, all underwriting and policy issuance for all approved lines of business, subject to the instructions, guidelines and limits identified in this Agreement. IRS or any subcontractors appointed by IRS, shall rate, quote and issue policies of insurance consistently with the rate, rule and form filings, with such rate, rule and form filings to be made on behalf of CU by IRS. IRS shall also provide policy information services for insureds through itself and its producing agents and shall coordinate such activities with such third parties as CU shall from time to time direct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**2.4. Underwriting Records.**</u> IRS shall maintain separate, complete and orderly underwriting files or electronic files, records and accounts of all transactions involving CU in accordance with generally accepted insurance and accounting practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**2.5. Regulatory Filings.**</u> Forms, rates, and rules for Authorized Business as mutually agreed upon by IRS and CU shall be filed by IRS on behalf of CU as required with the property regulatory agency. Upon completion of filing and receipt of approval from the applicable regulatory agency or according to approval granted by Regulations, IRS shall notify CU of the effective date of such filing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**2.6. Applications and Policies.**</u> IRS shall have the authority to accept quotes and applications for Policies and to issue Policies for Authorized Business submitted by or through Agents or Brokers on forms, at rates, and under rules approved by CU. CU will accept any application submitted within the parameters of the Underwriting Manual. IRS shall ensure that all applications, binders, policies or other forms are approved by Company and the required applicable state regulatory official prior to use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**2.7. Policy Issuance.**</u> IRS shall not delegate its authority to underwrite and issue Policies or any risk changing endorsements or amendments to Policies to any Agent or Broker without the express written consent of CU but IRS may delegate same to a qualified third party. IRS's request to CU for approval to delegate such authority shall include a copy of the agreement between IRS and third party which includes such third party's authorities to be delegated by IRS.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**2.8. Policy Renewals and Cancellations.**</u> IRS shall be responsible for the proper renewal, non-renewal or cancellation, reinstatement of Policies in accordance with Regulations, Policy provisions, and delegations of authority as provided in this Agreement. IRS shall timely communicate to policyholders any renewal quotes or notices of non-renewal or cancellation to preclude the extension of coverages beyond the expiration dates or cancellation dates of in-force Policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**2.9. Return Commissions.**</u> IRS shall refund to CU unearned commissions as collected from the agents on policy cancellations, reductions in premiums or any other return premiums at the same rate at which such commissions were originally retained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**2.10. Premiums and Fees.**</u> IRS shall have the authority to receive premiums and to retain commissions and other fees, as specified in this Agreement, out of such collected premiums and fees, subject to the terms and conditions of this Agreement. IRS shall have the authority to bill premiums to policyholders on an installment basis ad charge policyholders Installment Billing Fees as allowed by Regulations. IRS shall have the authority to accept premiums financed by premium finance companies or other lending institutions. IRS shall be solely responsible and liable for premiums financed and shall cause any unearned premium or commission refunds to be paid directly to said premium finance company or lender and shall not pay or credit any Agent's or Broker's account.

**<u>ARTICLE III — HANDLING OF FUNDS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**3.1. Depository Account.**</u> IRS shall accept in a fiduciary capacity, on behalf of the CU, all premiums, policies, fees, interest, and service charges collected and other funds relating to the business written under this Agreement. CU shall establish and maintain a "Depository Account" in a bank mutually agreed upon by IRS and CU. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation. All premiums, policy fees, interest, and service charges collected by IRS shall be deposited into the Depository Account. Deposits to the Depository Account are to be made daily or no less seldom than weekly if daily determination of deposit amount required is not feasible. Subject to the terms of this Agreement, the proceeds of the Depository Account shall be used for payments as directed by CU. There may be retained in such Depository Account no more than sixty (60) days of estimated claim payments and Allocated Loss Adjustment Expenses. It is acknowledged and agreed that any investment income earned and costs assessed in connection with the Depository Account belong to CU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**3.2. No Commingling.**</u> IRS shall not commingle any premium or escrow trust funds with personal accounts or other funds held by IRS in any other capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**3.3. Disbursement Account.**</u> CU will maintain and adequately fund a Disbursement Account ("Disbursement Account") for the payment by IRS of unearned premiums arising due to cancellation or endorsement of Policies produced by IRS. CU and IRS shall each have signature authority over this account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**3.4. Bank Failure.**</u> IRS shall not be liable for any loss which occurs by reason of the default or failure of the bank in which the Depository Account and Disbursement Account are maintained and such loss shall not affect IRS's obligations under this Agreement.

**<u>ARTICLE IV — OTHER REPORTS & REQUIREMENT</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>4.1. Inspection.</u>** CU or its authorized representatives shall have the right (but not the obligation) at all reasonable times during business hours of operations to inspect IRS's books, records and bank accounts, wherever located, which pertain to the business which is the subject of this Agreement and shall have the right to copy or make abstracts from such books and records.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**4.2. Written Operating Procedures.**</u> IRS shall establish and maintain written operating procedures regarding the issuance of all Policies and endorsements, as well as the collection of premiums related thereto. Such procedures shall be forwarded to the CU and shall be subject to CU's review and written approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**4.3. Financial Statement.**</u> Within one hundred fifty (150) days after the end of each fiscal year, IRS shall furnish CU with true copies of its unaudited financial statements and the audited, certified balance sheet and related statement of operations of IRS for such fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**4.4. Records.**</u> IRS shall maintain permanent physical or electronic copies of all Policies and applications, or correspondence related to the Policies, either as hard copies or archived in electronic media. CU shall have access and the right to copy all accounts and records related to business written hereunder in a form usable by CU. IRS shall provide access to all IRS's books, bank accounts, and records to the Louisiana Department of Insurance ("Department") or other applicable regulatory authorities in a form usable by the Department or such other regulatory authority. All records shall be retained by IRS and IRS will not destroy these permanent copies without the written permission of CU for the longer of five (5) years from the termination date of the Policy or the period specified by the applicable Louisiana statute regulating preservation of records or the other applicable laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**4.5. Internal Revenue Service Forms.**</u> IRS shall prepare and furnish each Agent with an IRS form 1099 each year when required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**4.6. Errors and Omissions Coverage.**</u> IRS shall maintain an errors and omissions insurance policy and shall submit a copy of said coverages to CU for review and approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**4.7. Report of Accounts.**</u> IRS shall render accounts to CU detailing all transactions and remit all funds due under the terms of this Agreement to CU on a monthly or more frequent basis.

**<u>ARTICLE V — IRS'S COMPENSATION</u>**

CU shall pay to IRS, as its sole and full compensation for all authorized business placed with CU under this Agreement, and not including the fees and expenses to be paid to IRS for those claim adjustment services provided in Article VII herein, the commission and set forth in Schedule II to the Agreement (hereinafter the "Compensation").

**<u>ARTICLE VI — EXPENSES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**6.1. IRS's Expenses.**</u> Except as otherwise provided in this Agreement, IRS shall pay all expenses incurred by IRS in connection with the underwriting, production, marketing and servicing of the Policies, including but not limited to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Printing of proposals, policy jackets, contracts of insurance, endorsements, cancellation notices, premium
notices, records and reports, and all other documents required to fulfill the obligation of IRS under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Advertising and public relations expenses authorized by IRS. The CU's prior written approval shall be
required with respect to any advertising or public relations material that contains CURE'S name and logo.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. IRS's general office expenses, including rent, salaries, utilities, data processing performed by IRS,
transportation, furniture, fixtures, equipment, supplies, telephone, postage, and other general overhead expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**6.2. CU's Expenses.**</u> The CU shall pay directly all charges and expenses directly attributable to its operations, including but not being limited to the following: Board and Bureau fees; state guaranty fund assessments and other assessments for, or based on, business written pursuant to this Agreement; premium taxes and any other assessments levied by a state or local governmental authority on business written hereunder; cost of reinsurance; legal and auditing expenses incurred at the direction of CU, as well as any specifically identifiable marginal costs that can be ascertained and attributed to the processing of CU's business under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**6.3. Reimbursement by IRS.**</u> In addition to any rights granted to CU hereunder, CU shall be entitled to immediate reimbursement or payment from IRS for all ordinary, reasonable and necessary costs, charges and expenses (collectively called "Expenses") paid or incurred by CU by reason of or in connection with (i) the termination pursuant to Section 9.2. of this Agreement, or (ii) the breach or non-performance of any covenant or obligation to be observed or performed by IRS or any Agent; provided, however, that in the case of a breach or non-performance by IRS, CU shall have given IRS written notice of the breach or non-performance and IRS shall not have cured same within thirty (30) days after the date of the notice, or if same is of such a nature that it cannot reasonably be cured within such time, if IRS has not within such time commenced to cure same and does not diligently continue to and actually cure same. Any expenses incurred by the CU after the giving of such notice shall be promptly reimbursed by IRS. Without limiting the generality of the foregoing, IRS's covenants and obligations as referred to herein shall include but not be limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the obligation to deposit, report and remit premiums to CU;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the obligation to remit return premiums to the insureds when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the obligation to process all policies, endorsements and notices of cancellation and/or non-renewal pursuant to the CU's underwriting guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the obligation to observe and comply with underwriting guidelines and sub-agent appointment procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. the obligation to observe and comply with all statutes, regulations, rules and rates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. the obligation to comply with the requirements of Article III hereinabove.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. The writing, binding or issuance of policies and risks by IRS not in accordance with the condition set forth in
this Agreement and any Addenda hereto constitutes a breach of this Agreement, and any loss and expense incurred by CU resulting from such breach shall be assumed by IRS. In the event CU sustains a loss on a Policy or risk which the IRS has written,
issues or bound which is not within the scope of its authority under the Agreement and any addendum hereto, IRS shall reimburse CU for the amount of the loss plus the expenses incurred by CU because of the loss.

**<u>ARTICLE VII — CLAIMS ADMINSTRATION SERVICES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**7.1. General Authority.**</u> CU grants IRS the authority to investigate, evaluate, handle, adjust, deny and/or settle each claim assigned as appropriate and according to applicable state law, the terms and conditions of the policy and any written standards that may be provided by CU in addition to the provisions of the Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**7.2. Duties of IRS.**</u> In addition to, and without limiting, any duties which may be owed by IRS pursuant to Louisiana law, IRS shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Utilize and enter claims data into the claims administrative system and establish timely reserves that reflect
all amounts reasonably expected to be ultimately payable, which reserves will be reviewed with reasonable frequency and revised, as appropriate, in light of updated information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Dedicate sufficient and appropriate human, equipment and computer resources to provide Claims Services. IRS
shall use only licensed adjusters and licensed private investigators or catastrophic adjusters, where applicable, and such adjusters and investigators shall comply with and confirm to the Louisiana Statutes, and any applicable rules, orders, and
written interpretations issued by the Department;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Investigate, evaluate, handle, adjust, deny and/or settle each claim assigned to IRS as appropriate including
furnishing insureds with all forms necessary to properly administer claims, appointing adjusters, appraisers, engineers, assessors, or other parties necessary to evaluate Claims, making required payments, and coordinating a proper defense with
Defense Counsel as necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Designate an employee to act as liaison with CU to facilitate the provision of the Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Maintain the confidentiality of data or information which is the property of CU and which is directly
accessible to IRS in the implementation and performance of the Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Maintain complete, accurate and orderly claims books, files, records and accounts of all transactions in
accordance with generally accepted insurance and accounting practices, which files shall be the joint property of the CU and IRS. The data in any electronic claims files maintained by IRS shall be transmitted to CU in a timely manner as reasonably
directed by CU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Maintain during the term of this Agreement copies of all claims and correspondence related to the claims for a
period of six (6) years after the date of closure of such claim. IRS shall not destroy these copies without the written permission of the CU. IRS may, with permission from the CU, use magnetic, optical, and other types of technology to store
such data. At the end of such six (6) year period relevant to any claim, CU shall authorize IRS to either (a) destroy the closed file or (b) return such file to CU at CU's expense. Upon an order of liquidation of CURE, the
claims files shall become the sole property of CU or its estate once IRS has been paid for the services rendered. IRS shall have reasonable access to and the right to copy all files, books, and records on a timely basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. IRS shall adjust and handle all claims still open upon termination or cancellation of this Agreement for an
agreed upon fee per claim. CU shall continue to be responsible for the payment and reimbursement of expenses for such claims as provided in this Article VII. Notwithstanding the foregoing, any settlement

------

authority granted to IRS may be terminated for cause upon the CU's written notice to IRS or upon termination of this Agreement. CU may suspend IRS's settlement authority during the pendency of any dispute regarding the cause for termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. IRS agrees that all claims occurring during the Term of this Agreement will be reported to CU and will be
assigned to properly licensed persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**7.3. CU Discretion.**</u> IRS acknowledges and agrees that CU, as the party at risk and having ultimate responsibility for the claims to be administered by IRS, shall at all times have ultimate discretion and authority with respect to all matters pertaining to the claims including, without limitation, the processing, handling, disposition, settlement, defense and litigation of all claims. The exercise or failure to exercise such discretion and authority shall not in any way diminish, impair or otherwise affect the obligations of IRS hereunder, including, without limitation, the obligations to exercise reasonable care, to act in good faith, and to otherwise act in a prudent, fair and appropriate manner with regard to the Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**7.4. Duties of CU.**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. CU agrees that all claims occurring during the Term of, and under, this Agreement will be reported and assigned
to IRS, unless CU otherwise notifies IRS. CU will provide all information, in its possession, relevant to particular claims assigned to IRS in order for IRS to fulfill its duties and obligations as set out in Schedule III. IRS shall notify CU, in
writing, should CU fail to provide any relevant information requested by IRS regarding any specific claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. CU shall appoint an individual with sufficient authority within CU's organization to facilitate
IRS's performance of the Claims Administration Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**7.5. Audit Provisions.**</u> CU, its employees, and/or its authorized agents shall have the right, at any reasonable time during normal business hours and with reasonable notice to IRS, to review and/or audit CU's claim files maintained by IRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>7.6. Price and Payment.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. CU agrees to pay Service Fees and Rates as specified in Schedule III A through Schedule III C of this
Agreement. Schedule III A shall govern the Service Fees and Rates payable to IRS by CU on all assumed, new and renewal business written by CU. Schedule III B shall govern the Service Fees and Rates payable to IRS by CU under those special
circumstances as agreed to in writing by the parties. Schedule III C shall govern the Service Fees and rates payable to IRS by CU for catastrophic management services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Service Fees and Rates may increase or decrease by mutual written agreement, if changes in the Claims
Services mutually agreed to in writing substantially alter the servicing personnel, equipment, or result in the servicing being done on a different system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. CU agrees to pay all tariffs and taxes that are now or may become applicable to the Claims Services rendered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Service Fees and Rates for Claims Services will be due and payable thirty (30) days after the close of the
month in which Claims Services are performed in amounts pursuant to Schedules III A through III C attached to this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. IRS and CU will renegotiate, in good faith, the Claims Services Fees in the event of statutory, regulatory, or
judicial changes that require additional activities not contemplated at inception of this Agreement. Should the parties be unable to reach an agreement, either party may terminate this Agreement upon advance written notice to the other party at
least ninety (90) days prior to the effective date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>7.7. Definition and Payment of "Allocated Loss Adjustment Expense."</u>** All Allocated Loss Adjustment Expenses shall be paid by the CU. For purposes of this Agreement, Allocated Loss Adjustment Expense(s) shall mean any expense which is chargeable or attributable to the investigation, coverage analysis, adjustment, negotiation, settlement, defense or general handling of any Claim(s) or action(s) related thereto, or to the protection and/or perfection of CU's and/or its insured's right of subrogation, contribution or indemnification. Allocated Loss Adjustment Expense(s) includes, but is not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Attorney's fees and disbursements incurred in connection with the determination of coverage and/or the
adjustment, defense, negotiation or settlement of any Claim; attorney's fees incurred for representation at depositions, hearings, pretrial conferences and/or trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Costs incurred in handling any Alternative Dispute resolution proceeding ("ADR"), legal actions
including trials or appeals, or in pursuing any declaratory judgment action, including deposition fees, cost of appeal bonds, court reporter or stenographic service fees, filing fees, and other court costs, fees and expenses, transcript or printing
costs and all discovery expenses; fees for service of process; fees for witnesses' testimony, opinions, or attendance at hearings or trial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Statutory fines or penalties; pre- and post- judgment interest paid as
a result of litigation, unless legal requirements define such interest as indemnity payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Subcontractors' fees and travel expenses, including independent adjusters, automobile and property
appraisers, to the extent that same are incurred in the adjustment, negotiation, settlement or defense of any Claim (excluding IRS's employees);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Experts' fees including reconstruction experts, engineers, cause and origin reports, photographers,
accountants, economists, metallurgists, cartographers, architects, handwriting experts, physicians, appraisers and other natural and physical science experts, plus the costs associated with preparation of expert reports, depositions, and testimony;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Fees for surveillance, undercover operative and detective services or any other investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Costs for medical examinations, or autopsies, including diagnostic services, and related transportation costs,
fees for medical reports and rehabilitation evaluations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Costs for any public records, medical records, credit bureau reports, and other like reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Costs and expenses incurred where IRS determines it is reasonable to pursue the rights of contribution,
indemnification or subrogation of CU and/or its insured, including attorney and collection agency fees and/or expenses;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Medical or vocational rehabilitation expenses, and all other medical cost containment services, including, but
not limited to, utilization review, pre-audit admission authorization, hospital bill audit or adjudication, provider bill audit or adjudication, and review of medical case management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Extraordinary travel and related expenses incurred by IRS at the express written request and approval of a CU
officer, which are not otherwise payable under this agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. With respect to IRS's determination that an expense(s) incurred pursuant to this Agreement is an
Allocated Loss Adjustment Expense, IRS makes no representation or warranty and assumes no responsibility that such determination (i) is in compliance with or meets the requirements of any statistical plan filing, statutory, regulatory, or
insurance industry reporting scheme or the definition of the Allocated Loss Adjustment Expense thereunder; (ii) is or could be characterized as payment of loss or indemnity; or (iii) is or is not subject to insurance or reinsurance
coverage or limits. CU agrees that it is responsible for making all such judgments and for complying with any and all such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>7.8. Limitation of Liability and Remedies.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In providing the Claims Services hereunder, IRS shall have a duty to act with reasonable due care and caution,
in good faith, and in a prudent manner. IRS shall be liable to CU for any loss or damage sustained by CU as a result of, or related in whole or part to, the bad faith, gross negligence or other intentional misconduct on the part of IRS, or its
officers, directors, employees or agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. IRS agrees to indemnify, defend and hold harmless CU, CU, its officers, directors, employees, agents, designees
and affiliates (collectively "Indemnified Parties"), from and against any and all claims, causes of action, liabilities, liens, fines, penalties, demands, costs, fees, expenses (including reasonable attorney's fees), suits,
judgments, adjudications and losses of whatever kind or nature incurred by, or claimed against, any of the Indemnified Parties by reason of any bad faith, negligence, or other misconduct by IRS, or any of its officers, directors, employees or
agents, or by reason of any breach of this Agreement by IRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. IRS shall have no indemnity obligation under this Agreement for any act or omission of IRS taken or omitted to
be taken at the express direction of CU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. All indemnity obligations of IRS under this Agreement shall survive the termination or expiration of this
Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. IRS warrants that it now has and shall maintain during the term of this Agreement for the protection and
benefit of CU and IRS liability insurance coverage and errors and omissions coverage in an amount reviewed and approved by CU.

**<u>ARTICLE VIII — TERMINATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**8.1. Continuing Authority.**</u> The authority of IRS to issue Policies under this Agreement shall be continuous until terminated, except for mandatory renewals of existing Policies. This agreement may be terminated by either party, at the end of any calendar quarter, without cause, by giving the other party not less than one hundred twenty (120) days prior written notice of such termination.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**8.2. Termination by CU with or without Cause.**</u> This Agreement shall terminate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Automatically and immediately at the written election of CU, if any public authority cancels or declines to
renew any of the license of IRS necessary to fulfill the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Automatically and immediately in the event of a transfer, sale or pledge of the majority of the stock or a
substantial portion of the assets of IRS, unless this Agreement is assigned with the express written consent of CU, or unless the pledge of stock is to a federal or state charted bank to secure loans from the bank to IRS, provided in the event of
such permitted pledge that this Agreement shall terminate if the pledged stock is foreclosed upon or otherwise acquired by the pledgee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. At the election of CU upon IRS's material violation of any provision of this Agreement; provided,
however, that IRS will be allowed thirty (30) days after written notice, to cure any non-monetary breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Immediately, at the election of CU for the occurrence of any failure by IRS to comply with the provisions of
Section 6.3 a. or b.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Sixty (60) days after delivery of written notice to terminate IRS at the election of CU for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**8.3. Termination by IRS.**</u> This agreement may be terminated at the election of and upon written notice from IRS upon the failure of CURE: (a) to remain licensed in the State of Louisiana; (b) to comply with Louisiana laws and Department Rules and Regulations; or (c) to comply with the material provisions of this Agreement; provided, however, that CU will be allowed thirty (30) days, after written notice, to cure any non-monetary breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**8.4. Suspension and Revocation of Authority.**</u> CU may suspend IRS's underwriting authority during the pendency of any dispute regarding the termination of this Agreement. CU and IRS shall fulfill their obligations under the Policies regardless of any dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**8.5. Effect of Termination.**</u> In the event of proper termination of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Except as set forth in Section 7.2.h. herein, the obligations of IRS and CU under this Agreement shall be
discharged promptly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. No party shall have a claim upon the other for loss of prospective profit or damage to the business arising
therefrom; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. IRS's records shall remain the property of IRS and left in IRS's possession, provided IRS is in
compliance with all of its obligations to CU. Copies of such documents shall be furnished to CU by IRS upon written request of CU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>8.6. Run-off.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. CU shall, concurrent with its notice of termination or within thirty (30) days of IRS's notice of
termination, notify IRS of whether CU intends to have IRS service the Policies through their run-off, or whether it intends to manage the run-off itself. Except as set
forth in Section 7.2.h. herein, IRS's compensation in either

------

event is set forth in Schedule II to this Agreement. For purposes of this Agreement, the term "run-off" shall mean confirming coverage under the Policies to claims adjusters, administering the in-force Policies and any required renewals and endorsement thereof, providing reports to CU as elsewhere required by this Agreement, paying premium to CU and return premium to the insureds, collecting all sums due from Agents, including return commissions, and such other activities of IRS specifically required by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. IRS shall upon demand return to CU any Policies, forms or other supplies imprinted with CURE'S name
regardless of who incurred the cost for same, or any Policies, forms or other supplies furnished to IRS by CU, with the exception of any forms which in IRS's reasonable opinion are required to complete an orderly run-off of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. In the event this Agreement terminates and/or IRS refuses or is unable to administer and run-off business produced under this Agreement, then in that event IRS shall immediately provide CU with a tape back-up of all programs and data libraries, including updated
source code and data files, used in the production and administration of business hereunder (the "Data"). CU agrees that it shall utilize the Data solely for the purpose of administering and running off the business produced hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. IRS hereby grants, at no cost to CU, a limited license to CU to use IRS's Software in connection with the
administration and run-off of the business produced hereunder. IRS shall deliver the Software, together with the Source and object code for the Software, as well as all available related manuals, immediately
upon delivery of the Data to CU as provided in the preceding Section.

**<u>ARTICLE IX — ARBITRATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1.** Any controversy, claim or dispute arising out of or relating to this Agreement, including questions regarding the arbitrability of any issues or the scope, applicability enforceability, validity or breach of this or any other provision of this Agreement or differences of opinion as to the interpretation of this Agreements, shall be submitted to arbitration, one arbitrator to be chosen by the CU, one by the IRS, and an umpire by the two arbitrators (the arbitrators and umpire are referred to as the "Panel").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2.** The Panel shall, unless the parties otherwise agree, meet in New Orleans, Louisiana. Members of the Panel shall be disinterested officers or former officers of property and casualty insurance companies or insurance agencies authorized to transaction business in the state in which the controversy, claim or dispute arose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3.** The arbitration shall be instituted by the claimant serving a notice upon the respondent setting forth a statement of the nature of the dispute and the name, address and current (or last, if retired) employment position of the arbitrator appointed by the claimant. The respondent shall appoint its arbitrator within twenty (20) days after the service of claimant's notice and shall, within such time, similarly notify claimant of the name, address and current (or last, if retired) employment position of the respondent's arbitrator. IF the respondent fails to appoint its arbitrator within such twenty (20) day period, the claimant shall also appoint the second arbitrator within ten (10) days after the expiration of the twenty (20) days for respondent to appoint its arbitrator. IF the two arbitrators fail to agree upon the appointment of an umpire at the end of the twenty (20) days following the last date of the appointment of the arbitrators, then they each shall within ten (10) days

------

thereafter, name three (3) candidates who serve as umpire, and within ten (10) days thereafter each shall decline two (2) of the candidates named by the other; within five (5) days thereafter, a decision shall be make by drawing lots as to which of the last two (2) candidates shall be the umpire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.4.** The respondent shall submit its statement within twenty (20) days after receipt of the claimant's statement, and the claimant ay submit a reply statement within ten (10) days after the receipt of the respondent's statement. Copies of all statements shall be sent to the parties and the Panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.5.** Any hearing shall commence within thirty (30) days following the selection of the umpire. The Panel shall render its decision within thirty (30) days following the termination of the hearings unless the parties consent to an extension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.6.** The Panel shall consider this Agreement an honorable engagement rather than merely a legal obligation and shall make its decision with regard to the custom and usage of the insurance and reinsurance business. The Panel shall issue its decision in writing upon evidence introduced at a hearing or by other means of submitting evidence in which strict rules of evidence need not be followed, but in which cross examination and rebuttal shall be allowed if requested. The majority decision of the Panel shall be final and binding upon all parties to the proceeding. Judgment may be entered confirming the award of the Panel in any court having jurisdiction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.7.** Each party shall bear the expense of its own arbitrator and shall jointly and equally bear the expense of the umpire. The remaining costs of the arbitration proceedings shall be allocated by the Panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.8.** In the event of subsequent actions or proceedings necessary to enforce the judgment entered thereon or any other rights flowing therefrom, the prevailing party shall be entitled to recover its reasonable attorney's fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.9.** Any suit, action,, or other proceeding by or against either party to this Agreement, including any proceeding to compel arbitration, to confirm the arbitration award, or to enforce any remedy available to either party may be brought in the District Court of the State of Louisiana, Parish of Orleans, or in the United States District Court for the Eastern District of Louisiana, and each of the parties hereto submits and consents to the non-exclusive jurisdiction of each such court for the purpose of any such suit, action or proceeding. The parties agree that process in any action or proceeding shall be personally served and that such service shall be sufficient to confer in personam jurisdiction over the party so served.

**<u>ARTICLE X — INDEMNITY AGREEMENT</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1.** IRS shall indemnity CU and its subsidiaries, successors, reinsurers and assignees, as well as their shareholders, directors, officers and agents against and in respect of any and all liabilities (as defined below), made or instituted against or incurred by CU or such other indemnitees and which arise, either directly or indirectly, out of any action or inaction of IRS or any Agent, or their employees or representatives, in connection with any obligations of IRS arising out of this Agreement, including but not limited to any action or inaction of IRS concerning the termination of Agent(s) pursuant to all applicable laws. This Section 11.1 does not apply to the extent that the loss resulted from action or inaction of IRS, which is a result of acting in accordance with the written instructions of CU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.** CU shall indemnify IRS and its subsidiaries, successors, reinsurers and assignees, as well as their shareholders, directors, officers and agents against and in respect of any and all liabilities (as defined below) made or instituted against or incurred by IRS or such other indemnitees

------

and which arise, either directly or indirectly, out of any action or inaction of CU, or their employees or representatives, in connection with any obligations of CU arising out of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3.** For purposes of this Article XI, "liabilities" means all claims, demands, actions, proceedings, liability, losses, damages, costs or expenses, including without limitation, attorneys' fees, disbursements and court costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4.** The indemnification provisions of this Article X do not apply to covered claims made under any policy issued in accordance with this Agreement nor with regard to the Claims Services, as set forth in Section 7.8. herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.5.** All indemnity obligations herein shall survive the termination or expiration of this Agreement.

**<u>ARTICLE XI — GENERAL PROVISIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**11.1. Survival.**</u> Article IX on Arbitration, Section 8.6 on "run-off", and all other provisions of this Agreement that are pertinent to the "run-off" and the Claims Services to be rendered under Section 7.2.h. shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**11.2. Independent Contactor Relationship.**</u> Nothing herein shall create the relationship of employer and employee between CU and IRS, it being understood and agreed that IRS is an independent contractor of CU for the purposes set forth herein with all rights, powers and duties as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**11.3. Non-assignable.**</u> Neither CU nor IRS may assign this Agreement or any part thereof to another person or entity.

**<u>11.3(a). Subcontracting.</u>** IRS may subcontract or delegate its duties under this Agreement with other persons or entities, subject to the prior written consent of CU, which consent may not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**11.4. Modification.**</u> This Agreement may not be changed, nor may any provision hereof be waived, except by a written document signed by both parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**11.5. Non-Waiver.**</u> The failure of CU or IRS to insist on strict compliance with this Agreement, or to exercise any right or remedy hereunder, shall not constitute a waiver of any rights contained herein or estop the parties from thereafter demanding full and complete compliance therewith, or prevent the parties from thereafter demanding full and complete compliance therewith, nor prevent the parties from exercising any right or remedy in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**11.6. Notice.**</u> Any notice required or permitted to be given under this Agreement shall be in writing and shall be deemed duly given if delivered personally, or by a recognized courier service, or by registered or certified mail, return receipt requested, to the party for whom it is intended at the following address or such other address as the party may designate from time to time.

---

| | |
|:---|:---|
| **For IRS:** | Insight Risk Solutions |
|  | 12640 Telecom Drive |
|  | Temple Terrace, FL |
|  | **Attn: David Flitman** |

---

------

---

| | |
|:---|:---|
| **For CU:** | Cajun Underwriters Risk Managers |
|  | 3321 Hessmer Ave., Suite 300 |
|  | Metairie, LA 70002 |
|  | **Attn: Steven Hoffman** |

---

Notices shall be deemed given when delivered, or three (3) days after delivery to the courier or mailing, as above provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>11.7. Invalidity.</u>** If any provision of this Agreement should be found to be invalid or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**11.8. Governing Law.**</u> This Agreement shall be interpreted under and pursuant to the laws of the State of Louisiana, without giving effect to its conflicts of laws provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**11.9. Assigns.**</u> Subject to the provisions of 12.3 hereof, this Agreement shall bind and benefit the successors and permitted assigns of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>**11.10. Counterparts.**</u> This agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement.

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

---

| | | | |
|:---|:---|:---|:---|
| **Insight Risk Solutions:** | **Insight Risk Solutions:** | | |
| BY: | /s/ David Flitman | Date: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/15/2022 |
| Name & Title: David Flitman – President | Name & Title: David Flitman – President |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| **Cajun Underwriters Risk Managers:** | **Cajun Underwriters Risk Managers:** | | |
| BY: | /s/ Steve Hoffman | Date: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/15/2022 |
| Name & Title: Steve Hoffman – Treasurer | Name & Title: Steve Hoffman – Treasurer |  |  |

---

------

<u>SCHEDULE I</u> 

AUTHORIZED COVERAGES, TERRITORY AND LIMITS OF COVERAGE

[Omitted]

------

<u>SCHEDULE II</u> 

COMPENSATION

[Omitted]

------

<u>SCHEDULE III CLAIMS SERVICES</u> 

[Omitted]

------

<u>SCHEDULE III A</u> 

Fees Applicable to New, Renewal, And Assumed Business for Claims Services

[Omitted]

------

<u>SCHEDULE III B</u> 

Time and Expense Fees

[Omitted]

------

<u>SCHEDULE III C</u> 

Catastrophe Management Services & Fees

[Omitted]

## Exhibit 10.6

**Exhibit 10.6** 

**AGREEMENT OF THE ATTORNEY-IN-FACT OF** 

**CAJUN UNDERWRITERS RECIPROCAL EXCHANGE** 

This Attorney-in-Fact Agreement (this "<u>Agreement</u>") is made effective this 15th day of June, 2022 (the "<u>Effective Date</u>"), by and between Cajun Underwriters Reciprocal Exchange, a Reciprocal Insurance Exchange formed under the laws of the State of Louisiana (the "<u>Exchange</u>"), and Cajun Underwriters Risk Management LLC, a Delaware Limited Liability Company (the "<u>AIF</u>"). The offices of the AIF will be located, together with the principal offices of the Exchange, at 3321 Hessmer Ave, Suite 300, Metairie, LA 70002, but may be changed upon notice to the subscribers of the Exchange (each a "<u>Subscriber</u>" and, together, the "<u>Subscribers</u>") and in compliance with the requirements of the laws of the State of Louisiana. The Exchange and the AIF may each be referred to individually as a "<u>Party</u>" or collectively as the "<u>Parties</u>."

**RECITALS** 

**WHEREAS,** as part of the application for insurance by each Subscriber, each Subscriber will, pursuant to their respective Subscription Agreement and Power of Attorney (the "<u>Subscription Agreement</u>"), appoint the AIF to act as the Attorney-in-Fact of such Subscribers with the authority to exchange reciprocal insurance contracts among the Subscribers and to manage and conduct the day-to-day business operations of the Exchange; and,

**WHEREAS,** the Exchange and the AIF desire to set forth the terms and conditions upon which the AIF will accept its appointment as Attorney-in-Fact for the Subscribers to exchange their reciprocal insurance contracts and to manage and conduct the business and affairs of the Exchange.

**NOW, THEREFORE,** in consideration of the mutual covenants and consideration contained in this Agreement and intending to be legally bound hereby, the Exchange and the AIF agree as follows:

**1. Acceptance of Appointment as Attorney-in-Fact.** The AIF hereby accepts its appointment as Attorney-in-Fact of the Exchange pursuant to the Subscription Agreement to be executed by each Subscriber and agrees, as Attorney-in-Fact, to exchange reciprocal insurance contracts among the Subscribers as set forth in the Subscription Agreement.

**2. Management Services.** the AIF will furnish (directly or indirectly through its affiliates or third-party service providers) all employees and resources to perform necessary and appropriate management services for the exchange. It is understood that all such management services shall be performed in accordance with such policies and standards as may be established from time to time by the AIF as the Attorney-in-Fact, as well as in accordance with sound insurance and actuarial practices and procedures and any applicable laws. Those management services include, without limitation by reason of specification, the following functions on behalf of the Exchange:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The administration and management of the day-to-day insurance business of the Exchange, including, without limitation, the provision of all personnel for underwriting, claims, marketing, financial, legal and information technology functions and the provision of all senior management;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The solicitation, receipt, and acceptance or rejection of applications for insurance and the determination of the acceptability of the risks involved in accordance with sound insurance underwriting policies and standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The exchange of any and all kinds of reciprocal insurance contracts with Subscribers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The underwriting, classification, rating and issuance of policies, endorsements and binders of insurance for the Exchange in accordance with customary insurance practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The establishment and maintenance of complete and accurate records of all reciprocal insurance contracts exchanged by the AIF on behalf of the Exchange in accordance with the policies and standards established by the AIF;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The collection, receipt, processing, and accounting for all funds received as payments of insurance premiums, contributions to surplus, and other receipts of, and the timely deposit of all such funds in a Federal Reserve System member bank or banks in the name of the Exchange in accordance with the policies and procedures established by the AIF; the establishment and monitoring of loss reserves in accordance with sound insurance and actuarial practices and procedures; the borrowing of money on behalf of the Exchange; the maintenance of all funds in accordance with applicable law; and the investment of assets in accordance with applicable legal requirements and the advice or instructions of investment advisors retained by the AIF, at the expense of the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The establishment and maintenance of all financial and business records required by applicable laws, regulations, generally accepted insurance and accounting practices and in accordance with the policies and standards established by the AIF; and the preparation of all reports required by governmental and nongovernmental regulatory and supervisory authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The placement of reinsurance as required by law or by sound and accepted insurance and business practices, the payment of reinsurance premiums thereof at the expense of the Exchange, the maintenance of all necessary records in connection with such reinsurance, and the taking of all actions or the making of any claims required or permitted by such reinsurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The provision and maintenance, directly, or indirectly through a third party claims administrator, of adequate claims supervision and facilities for the timely processing of all claims, notices, and proofs of loss against the Exchange and for the timely payment of claims on behalf of and at the expense of the Exchange, including the employment of claims adjusters, attorneys and other personnel to handle claims on behalf of the Exchange, with all allocated costs, unallocated costs and claim expenses to be paid by the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The retention of investment advisors, financial advisors, actuaries, legal counsel, and other necessary consultants, at the expense of the Exchange;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The preparation of mailings, advertisements, newsletters and other promotional and marketing materials for and on behalf of the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The monitoring of legal affairs of the Exchange, including compliance with applicable legal requirements and the making of required filings with the Louisiana Department of Insurance and all other governmental authorities having jurisdiction over the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The appointment, supervision and termination of a managing general agent, agents, brokers, and personnel on behalf of the Exchange, and the payment to them of fees, including but not limited to statutory per-policy fees, or commissions at the expense of the Exchange, for insurance coverages placed with the Exchange in such amounts as shall be determined by the AIF;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The development and maintenance of all systems and procedures necessary to comply with any insurer anti-fraud requirements of the State of the Exchange and any other jurisdiction in which the Exchange is authorized to conduct business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The commencement and defense, at the expense of the Exchange, of legal and administrative proceedings brought by or against the Exchange including acceptance of service of process on behalf of the Exchange, entering legal appearances on behalf of the Exchange and the compromise, adjustment, prosecution, litigation, defense, settlement, and appeal of losses and claims; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The taking of all such other actions as the AIF determines to be necessary, advisable or proper in order for the AIF to discharge its responsibilities and duties under this Agreement.

**3. Management and Other Fees.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As compensation for the management services to be performed by the AIF as Attorney-in-Fact on behalf of the Exchange, as set forth in Section 2 above, the Exchange agrees that the AIF is authorized to retain the following percentages of annual gross written premiums:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) underwriting and marketing management services provided to the Exchange, the AIF will receive as compensation an amount equal to seventeen percent (17%) of the annual gross premium written by the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) claims management services for non-catastrophic claims pursuant to the attached Claims Service Fee Schedule, plus an amount equal to three percent (3%) of the annual gross premium written by the Exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) claims management services for catastrophic claims pursuant to the attached Claims Service Fee Schedule.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The percentages set forth in Section 3(a) above may be adjusted at any time as agreed to by both the Exchange and the AIF, subject to the written approval of the Louisiana Department of Insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) At the sole discretion of the AIF, the AIF may waive fees from the Exchange as a method to build or maintain surplus in the Exchange.

**4. Payment of Expenses of the Exchange.** The AIF, on behalf of the Exchange, is authorized to utilize the funds of the Exchange, or utilize its own funds and be reimbursed by the Exchange, to pay all of the expenses of the Exchange, including, without limitation, by reason of specification, losses/loss adjustment expenses related to the adjustment of catastrophe claims, any loss adjustment expenses, investment expenses, legal expenses, reinsurance, court costs, taxes, assessments, license fees, membership fees, the fees of attorneys, actuaries, accountants and investment and other advisors, governmental fines and penalties, the establishment and maintenance of loss and unearned premium reserves and surplus, reinsurance premiums and costs, audit fees, guaranty fund assessments, commission to authorized agents and brokers, fees, including but not limited to statutory per-policy fees, to a managing general agent, and all other costs necessary for the proper and efficient operation of the Exchange, including fees related to: (a) the startup and formation of the Exchange and (b) services provided by vendors to the Exchange and the AIF. Additionally, the AIF will procure, at the expense of the Exchange, directors and officers liability insurance coverages for the AIF and the members of the Subscribers Advisory Committee (as organized under the Subscription Agreement and applicable law, the "<u>SAC</u>").

**5. Records; Right to Audit.** the AIF will keep records for the express the Exchange of recording the nature and details of the management services and financial transactions undertaken for the Exchange pursuant to this Agreement. All books and records maintained by the AIF pertaining to the management services performed by the AIF as Attorney-in Fact for the Subscribers pursuant to this Agreement are owned by the Exchange. These books and records will be maintained by the AIF in a fiduciary capacity for the Exchange. the Exchange, and any regulatory authority having jurisdiction over the Exchange, will have the right to examine and audit, at the offices of the AIF, at all reasonable times, all books and records of the Exchange that pertain to the management services performed by the AIF as Attorney-in-Fact for the Subscribers. This right of examination and audit will survive the termination of this Agreement and will remain in effect for as long as either the Exchange or the AIF has any rights or obligations under this Agreement.

**6. Subscriber's Advisory Committee Grievance Procedure.** After the Exchange has been in operation for one year, the senior management of the AIF will meet on a quarterly basis with the SAC to discuss any issues of concern made known by the Subscribers to the SAC. By the next quarterly meeting, if not sooner, the senior management of the AIF will provide the SAC with a written response to any issues of concern presented at the prior meeting, if any, including a description of the actions the AIF has undertaken to address the issues of concern in accordance with customary insurance practices. At the next meeting, the SAC shall advise the senior management of the AIF if the actions it took are reasonably addressing the issues of concern as originally presented. If a majority of the members of the SAC are not reasonably satisfied with the results of the actions undertaken, the AIF, upon request from the SAC, shall present the issues of concern and its response to the Louisiana Department of Insurance for its guidance as to whether the AIF should undertake further action with respect to the issues of concern.

------

**7. Term and Termination.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***Term.*** This Agreement shall become effective as of the Effective Date, and shall continue in effect for a five-year term thereafter (the "<u>Initial Term</u>"), subject only to the right of termination as set forth in Section 7(b). After the expiration of the Initial Term, this Agreement shall automatically renew for additional three-year terms (each a "<u>Renewal Term")</u> subject to the right of termination set forth in section 7(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***Termination.*** This Agreement may be terminated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Mutual Termination</u>.* This Agreement may be terminated at any time by the written mutual agreement of both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Termination with Cause</u>*. the Exchange, acting through the SAC, may terminate this Agreement at any time if the Louisiana Department of Insurance or a court of competent jurisdiction has determined by a final order that an event has occurred that constitutes a material breach of this Agreement or that would allow the Louisiana Department of Insurance to: (A) suspend or revoke the license of the Exchange; or (B) place the Exchange in rehabilitation or any form of receivership.

**8. Advance of Money by Attorney-in-Fact.** The Subscriber understands and agrees that the AIF may advance to the Exchange any amount of money necessary to conduct the business of the Exchange, including any amount necessary to enable the Exchange to comply with a legal requirement. Subject to the approval of the Louisiana Department of Insurance, the advanced amount and any agreed interest on that amount, not exceeding two percent (2_%) a year, should the AIF decide to impose such interest: (i) is payable only from the surplus of the Exchange remaining after providing for all reserves, other liabilities, and required surplus; and (ii) may not otherwise be a liability or claim against the Exchange or any of the Exchange's assets. The Subscriber further understands and agrees that a commission, promotion expense, or other bonus may not be paid in connection with the advance of money to the Exchange and that the amount of each advance must be reported in the Exchange's annual report.

**9. Arbitration.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As a condition precedent to any right of action arising under or out of this Agreement, the Parties agree that that any and all disputes or differences, including disputes concerning the formation and/or validity of this Agreement, shall be submitted to arbitration before a panel of three arbitrators, each of whom shall be an active or retired disinterested officer of a property and casualty insurance company. One arbitrator shall be chosen by the Exchange, one arbitrator shall be chosen by the AIF, and the third arbitrator will be chosen by the other two arbitrators. In the event any Party does not appoint an arbitrator within 60 days after the other Party requests it to do so, or if the two arbitrators selected by the Exchange and the AIF fail to agree upon a third arbitrator within 30 days of the appointment of the second arbitrator to be appointed, the

------

arbitrator or arbitrators, as the case may be, will, upon the application of any Party, be appointed by the American Arbitration Association and the arbitrators will proceed. The decision of the majority of the arbitrators will be final and binding on all Parties. Each Party will bear the expense of its own arbitrator and one- half of the expenses of the third arbitrator and of the arbitration. Arbitration taking place under this section will take place in the Exchange unless otherwise agreed by the Parties in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any action, litigation, suit or proceeding arising out of or relating to this Agreement or any transaction contemplated hereby, including the enforceability of the provisions of paragraph 9(a) hereof, shall be brought solely in federal or state courts of competent jurisdiction sitting in the courts located in the Exchange, and each of the Parties hereto hereby irrevocably consents and submits to the exclusive jurisdiction of such courts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any dispute or difference of opinion arising under this Agreement, the Exchange and the AIF must fulfill all obligations under the reciprocal insurance contracts exchanged by the Subscribers.

**9. Indemnification.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Exchange will indemnify, defend and hold harmless the AIF and each member, officer, director, employee and agent thereof (each an "<u>Indemnified Party</u>"), from and against all claims, losses, damages, liabilities and expenses, including, without limitation, settlement costs and any reasonable legal fees and expenses or other expenses for investigating and defending any actions or threatened actions incurred by an Indemnified Party as a result of any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including an action by or in the right of the Exchange, relating to or arising out of the services provided by the AIF hereunder, except to the extent the act or failure to act giving rise to the claim for indemnification is determined by a court to have constituted the willful misconduct or recklessness of the Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Exchange will pay expenses incurred by an Indemnified Party in defending any action or proceeding referred to in this Section 10 in advance of the final disposition as they are incurred in such action or proceeding; *provided, however,* that the Exchange receives an undertaking by or on behalf of such Indemnified Party to repay such amount if it shall ultimately be determined that such Indemnified Party is not entitled to be indemnified by the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As soon as practicable after receipt by any Indemnified Party of notice of the commencement of any action, suit or proceeding specified in Section 10(a) above ("<u>Action</u>"), such person shall, if a claim may be made against the Exchange under this Section 10, notify the Exchange in writing of the Action; *provided, however,* that the omission to notify the Exchange will not relieve the Exchange of any liability under this Section 10 unless the Exchange is prejudiced thereby. With respect to any such Action as to which such person notifies the Exchange, the Exchange may participate in the Action at its own expense. the Exchange may, independently or jointly with any other indemnifying party assume the defense of the Action, with counsel selected by the Exchange. Counsel selected by the Exchange shall be reasonably satisfactory to the Indemnified Party. After notice from the Exchange of its election to assume the defense, the

------

Exchange will not be liable to the Indemnified Party under this Section 10 for any legal or other expenses subsequently incurred by such Indemnified Party in connection with the defense of the Action. The Indemnified Party will have the right to hire his or her own counsel in such action, but the fees of such counsel incurred after notice from the Exchange of its assumption of the defense of the Action will be at the expense of the Indemnified Party unless: (i) the employment of counsel by the Indemnified Party shall have been authorized by the Exchange, (ii) the Indemnified Party shall have reasonably concluded that there may be a conflict of interest between the Exchange and such person in the conduct of the defense of such proceeding, or (iii) the Exchange did not employ counsel to assume the defense of the Action and the Indemnified Party shall have reasonably concluded that there may be a conflict of interest if indemnification under this Section 10 is not paid or made by the Exchange, or on its behalf, within 90 days after a written claim for indemnification has been received by the Exchange. The Indemnified Party may, at any time thereafter, bring suit against the Exchange to recover the unpaid amount of the claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The right to indemnification and the right to advancement of expenses provided in this Section 10 shall be enforceable by such person in any court of competent jurisdiction. The burden of proving that indemnification is not appropriate shall be on the Exchange. Expenses reasonably incurred by such person in connection with successfully establishing the right to indemnification or advancement of expenses, in whole or in part, shall also be indemnified by the Exchange.

**10. Notices.** All notices, requests, demands, claims, and other communications between the Parties concerning the content and purpose of this Agreement shall be sent in writing by personal delivery, fax or by mail, registered or certified, postage pre-paid. Notices shall be addressed to the Parties as follows, or to such other addresses as may be specified by a Party from time to time by like written notice to the other Party:

If to the Exchange:

STEVEN HOFFMAN

12640 TELECOM DRIVE

TEMPLE TERRACE, FL 33637

If to the AIF:

JENNIFER COTUGNO

12640 TELECOM DRIVE

TEMPLE TERRACE, FL 33637

Notices delivered personally shall be deemed communicated as of actual receipt; faxed notices shall be deemed communicated upon confirmation of having been sent; and mailed notices shall be deemed communicated as of three business days after mailing.

------

**11. Miscellaneous** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement and all matters relating to its validity, interpretation, performance and enforcement shall be governed by and construed in accordance with the substantive laws of the State of the Exchange, without giving effect to the principles of the conflict of laws or the rules thereof that might require the application of the laws of another jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the AIF is authorized, at its expense, to contract with others for the performance of the management services it has agreed to provide to the Exchange under this Agreement; *provided, however,* that the AIF will remain responsible to the Exchange for the proper and timely performance of all management services set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement may be amended at any time by an instrument in writing executed by the Parties with the prior written approval of the Louisiana Department of Insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Agreement constitutes the entire agreement between the Parties and supersedes any prior understandings, agreements, or representations by or between the Parties, written or oral, to the extent they related in any way to the subject matter of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Agreement is for the sole benefit of the Parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other person any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The headings contained in this Agreement are for convenience of reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) All words used in this Agreement will be construed to be of such gender or number as the circumstances require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or portion of any provision in such jurisdiction, and this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No failure on the part of any Party to this Agreement to exercise any right or remedy under this Agreement, and no delay on the part of any Party to this Agreement in exercising any right or remedy under this Agreement, shall constitute a waiver of such right or remedy, and no single or partial exercise of any such right or remedy shall preclude any other or further exercise of such right or remedy or of any other right or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

------

A party may deliver this Agreement by transmitting a facsimile or other electronic signature of this Agreement signed by such party (via PDF, TIFF, JPEG or the like) to the other party, which facsimile or other electronic signature shall be deemed an original for all purposes.

**IN WITNESS WHEREOF,** the Parties have executed this Agreement on the day and year first above written by the undersigned thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| **Cajun Underwriters**<br> **Reciprocal Exchange** | **Cajun Underwriters**<br> **Reciprocal Exchange** | **Cajun Underwriters Risk Management, LLC, Attorney-in-Fact of Cajun Underwriters Reciprocal Exchange** | **Cajun Underwriters Risk Management, LLC, Attorney-in-Fact of Cajun Underwriters Reciprocal Exchange** |
| Signature: | /s/ David Flitman | Signature: | /s/ Steven Hoffman |
| Name: | David Flitman | Name: | Steven Hoffman |
| Title: | President | Title: | Treasurer |
| Date: | 7/29/2022 | Date: | 7/29/2022 |

---

------

**Claims Service Fee Schedule** 

[Omitted]

## Exhibit 10.7

**Exhibit 10.7** 

**AGREEMENT OF THE ATTORNEY-IN-FACT OF** 

**MANATEE INSURANCE EXCHANGE** 

This Attorney-in-Fact Agreement (this "<u>Agreement</u>") is made effective this 30th day of January, 2024 (the "<u>Effective Date</u>"), by and between Manatee Insurance Exchange, a reciprocal insurer formed under the laws of the State of Florida (the "<u>Exchange</u>"), and Manatee Risk Management LLC, a Florida Limited Liability Company (the "<u>AIF</u>"). The offices of the AIF will be located, together with the principal offices of the Exchange, at 12640 Telecom Dr., Temple Terrace, FL 33637, but may be changed upon notice to the subscribers of the Exchange (each a "<u>Subscriber</u>" and, together, the "<u>Subscribers</u>") and in compliance with the requirements of the laws of the State of Florida. The Exchange and the AIF may each be referred to individually as a "<u>Party</u>" or collectively as the "<u>Parties</u>."

**RECITALS** 

**WHEREAS,** as part of the application for insurance by each Subscriber, each Subscriber will, pursuant to their respective Subscription Agreement and Power of Attorney (the "<u>Subscription Agreement</u>"), appoint the AIF to act as the Attorney-in-Fact of such Subscribers with the authority to exchange reciprocal insurance contracts among the Subscribers and to manage and conduct the day-to-day business operations of the Exchange; and,

**WHEREAS,** the Exchange and the AIF desire to set forth the terms and conditions upon which the AIF will accept and carry out its appointment as Attorney-in-Fact for the Subscribers to exchange their reciprocal insurance contracts and to manage and conduct the business and affairs of the Exchange.

**NOW, THEREFORE,** in consideration of the mutual covenants and consideration contained in this Agreement and intending to be legally bound hereby, the Exchange and the AIF agree as follows:

**1. Acceptance of Appointment as Attorney-in-Fact.** The AIF hereby accepts its appointment as Attorney-in-Fact of the Exchange pursuant to the Subscription Agreement to be executed by each Subscriber and agrees, as Attorney-in-Fact, to exchange reciprocal insurance contracts among the Subscribers as set forth in the Subscription Agreement.

**2. Management Services.** the AIF will furnish (directly or indirectly through its affiliates or third-party service providers) all employees and resources to perform necessary and appropriate management services for the exchange. It is understood that all such management services shall be performed in accordance with such policies and standards as may be established from time to time by the AIF as the Attorney-in-Fact, as well as in accordance with sound insurance and actuarial practices and procedures and any applicable laws. Those management services include, without limitation by reason of specification, the following functions on behalf of the Exchange:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The administration and management of the day-to-day insurance business of the Exchange, including, without limitation, the provision of all personnel for underwriting, claims, marketing, financial, legal and information technology functions and the provision of all senior management;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The solicitation, receipt, and acceptance or rejection of applications for insurance and the determination of the acceptability of the risks involved in accordance with sound insurance underwriting policies and standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The exchange of any and all kinds of reciprocal insurance contracts with Subscribers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The underwriting, classification, rating and issuance of policies, endorsements and binders of insurance for the Exchange **in** accordance with customary insurance practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The establishment and maintenance of complete and accurate records of all reciprocal insurance contracts exchanged by the AIF on behalf of the Exchange in accordance with the policies and standards established by the AIF;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The collection, receipt, processing, and accounting for all funds received as payments of insurance premiums, contributions to surplus, and other receipts of, and the timely deposit of all such funds in a Federal Reserve System member bank or banks in the name of the Exchange in accordance with the policies and procedures established by the AIF; the establishment and monitoring of loss reserves in accordance with sound insurance and actuarial practices and procedures; the borrowing of money on behalf of the Exchange; the maintenance of all funds in accordance with applicable law; and the investment of assets in accordance with applicable legal requirements and the advice or instructions of investment advisors retained by the AIF, at the expense of the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The establishment and maintenance of all financial and business records required by applicable laws, regulations, generally accepted insurance and accounting practices and in accordance with the policies and standards established by the AIF; and the preparation of all reports required by governmental and nongovernmental regulatory and supervisory authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The placement of reinsurance as required by law or by sound and accepted insurance and business practices, the payment of reinsurance premiums thereof at the expense of the Exchange, the maintenance of all necessary records in connection with such reinsurance, and the taking of all actions or the making of any claims required or permitted by such reinsurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The provision and maintenance, directly, or indirectly through a third party claims administrator, of adequate claims supervision and facilities for the timely processing of all claims, notices, and proofs of loss against the Exchange and for the timely payment of claims on behalf of and at the expense of the Exchange, including the employment of claims adjusters, attorneys and other personnel to handle claims on behalf of the Exchange, with all allocated costs, unallocated costs and claim expenses to be paid by the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The retention of investment advisors, financial advisors, actuaries, legal counsel, and other necessary consultants, at the expense of the Exchange;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The preparation of mailings, advertisements, newsletters and other promotional and marketing materials for and on behalf of the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The monitoring of legal affairs of the Exchange, including compliance with applicable legal requirements and the making of required filings with the Florida Office of Insurance Regulation (the "<u>Office</u>") and all other governmental authorities having jurisdiction over the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The appointment, supervision and termination of a managing general agent, agents, brokers, and personnel on behalf of the Exchange, and the payment to them of fees, including but not limited to statutory per-policy fees, or commissions at the expense of the Exchange, for insurance coverages placed with the Exchange in such amounts as shall be determined by the AIF;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The development and maintenance of all systems and procedures necessary to comply with any insurer anti-fraud requirements of the State of the Exchange and any other jurisdiction in which the Exchange is authorized to conduct business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The commencement and defense, at the expense of the Exchange, of legal and administrative proceedings brought by or against the Exchange including acceptance of service of process on behalf of the Exchange, entering legal appearances on behalf of the Exchange and the compromise, adjustment, prosecution, litigation, defense, settlement, and appeal of losses and claims; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The taking of all such other actions as the AIF determines to be necessary, advisable or proper in order for the AIF to discharge its responsibilities and duties under this Agreement.

**3. Management and Other Fees.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As compensation for the management services to be performed by the AIF as Attorney-in-Fact on behalf of the Exchange, as set forth in Section 2 above, the Exchange agrees that the AIF is authorized to retain the following percentages of annual gross written premiums:

(i) underwriting and marketing management services provided to the Exchange, the AIF will receive as compensation an amount equal to seventeen percent (17%) of the annual gross premium written by the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) claims management services for non-catastrophic claims pursuant to the attached Claims Service Fee Schedule, plus an amount equal to three percent (3%) of the annual gross premium written by the Exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) claims management services for catastrophic claims pursuant to the attached Claims Service Fee Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The percentages set forth in Section 3(a) above may be adjusted at any time as agreed to by both the Exchange and the AIF, subject to the written approval of the Office.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) At the sole discretion of the AIF, the AIF may waive fees from the Exchange as a method to build or maintain surplus in the Exchange.

**4. Payment of Expenses of the Exchange.** The AIF, on behalf of the Exchange, is authorized to utilize the funds of the Exchange, or utilize its own funds and be reimbursed by the Exchange, to pay all of the expenses of the Exchange, including, without limitation, by reason of specification, losses/loss adjustment expenses related to the adjustment of catastrophe claims, any loss adjustment expenses, investment expenses, legal expenses, reinsurance, court costs, taxes, assessments, license fees, membership fees, the fees of attorneys, actuaries, accountants and investment and other advisors, governmental fines and penalties, the establishment and maintenance of loss and unearned premium reserves and surplus, reinsurance premiums and costs, audit fees, guaranty fund assessments, commission to authorized agents and brokers, fees, including but not limited to statutory per-policy fees, to a managing general agent, and all other costs necessary for the proper and efficient operation of the Exchange, including fees related to: (a) the startup and formation of the Exchange and (b) services provided by vendors to the Exchange and the AIF. Additionally, the AIF will procure, at the expense of the Exchange, directors and officers liability insurance coverages for the AIF and the members of the Subscribers Advisory Committee (as organized under the Subscription Agreement and applicable law, the "<u>SAC</u>").

**5. Records; Right to Audit.** The AIF will keep records for the benefit of the Exchange of recording the nature and details of the management services and financial transactions undertaken for the Exchange pursuant to this Agreement. All books and records maintained by the AIF pertaining to the management services performed by the AIF as Attorney-in Fact for the Subscribers pursuant to this Agreement are owned by the Exchange. These books and records will be maintained by the AIF in a fiduciary capacity for the Exchange. the Exchange, and any regulatory authority having jurisdiction over the Exchange, will have the right to examine and audit, at the offices of the AIF, at all reasonable times, all books and records of the Exchange that pertain to the management services performed by the AIF as Attorney-in-Fact for the Subscribers. This right of examination and audit will survive the termination of this Agreement and will remain in effect for as long as either the Exchange or the AIF has any rights or obligations under this Agreement.

**6. Subscriber's Advisory Committee Grievance Procedure.** After the Exchange has been in operation for one year, the senior management of the AIF will meet on a quarterly basis with the SAC to discuss any issues of concern made known by the Subscribers to the SAC. By the next quarterly meeting, if not sooner, the senior management of the AIF will provide the SAC with a written response to any issues of concern presented at the prior meeting, if any, including a description of the actions the AIF has undertaken to address the issues of concern in accordance with customary insurance practices. At the next meeting, the SAC shall advise the senior management of the AIF if the actions it took are reasonably addressing the issues of concern as originally presented. If a majority of the members of the SAC are not reasonably satisfied with the results of the actions undertaken, the SAC shall present the issues of concern to the Office for consideration in the sole discretion of the Office. For the avoidance of doubt, the role of the Office is not to mediate or settle disputes between the SAC and AIF related to contractual interpretation; rather, the Office's function is to ensure that the AIF and Exchange comply with the Subscription Agreement, this Charter, and applicable Florida law.

------

**7. Term and Termination.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***Term.*** This Agreement shall become effective as of the Effective Date, and shall continue in effect for a five-year term thereafter (the "<u>Initial Term</u>"), subject only to the right of termination as set forth in Section 7(b). After the expiration of the Initial Term, this Agreement shall automatically renew for additional three-year terms (each a "<u>Renewal Term</u>") subject to the right of termination set forth in section 7(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***Termination.*** This Agreement may be terminated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Mutual Termination</u>.* This Agreement may be terminated at any time by the written mutual agreement of both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Termination with Cause</u>.* the Exchange, acting through the SAC, may terminate this Agreement if (A) acourt of competent jurisdiction has determined by a final order that an event has occurred that constitutes a material breach of this Agreement or (B) the Office has suspended or revoked the license of the Exchange.

**8. Advance of Money by Attorney-in-Fact.** The Subscriber understands and agrees that the AIF may advance to the Exchange any amount of money necessary to conduct the business of the Exchange, including any amount necessary to enable the Exchange to comply with a legal requirement. Subject to the approval of the Office, the advanced amount and any agreed interest on that amount, not exceeding two percent (2%) per year, should the AIF decide to impose such interest: (i) is payable only from the surplus of the Exchange remaining after providing for all reserves, other liabilities, and required surplus; and (ii) may not otherwise be a liability or claim against the Exchange or any of the Exchange's assets. The Subscriber further understands and agrees that a commission, promotion expense, or other bonus may not be paid in connection with the advance of money to the Exchange and that the amount of each advance must be reported in the Exchange's annual report.

**9. Arbitration.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As a condition precedent to any right of action arising under or out of this Agreement, the AIF agrees that that any and all disputes or differences, including disputes concerning the formation and/or validity of this Agreement, and including any and all disputes, differences, or allegations involving individual members of the SAC, shall be submitted to arbitration before a panel of three arbitrators, each of whom shall be an active or retired disinterested officer of a property and casualty insurance company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Arbitrator selection will be accomplished as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. As to any rights of action brought by the AIF against the Exchange, one arbitrator shall be chosen by the SAC
on behalf of the Exchange, one arbitrator shall be chosen by the AIF, and the third arbitrator will be chosen by the other two arbitrators. In the event any Party does not appoint an arbitrator within 60 days after the other Party requests it to do
so, or if the two arbitrators selected by the

------

SAC and the AIF fail to agree upon a third arbitrator within 30 days of the appointment of the second arbitrator to be appointed, the arbitrator or arbitrators, as the case may be, will, upon the application of any Party, be appointed by the American Arbitration Association and the arbitrators will proceed. The decision of the majority of the arbitrators will be final and binding on all Parties. Each Party will bear the expense of its own arbitrator and one-half of the expenses of the third arbitrator and of the arbitration. Arbitration taking place under this section will take place in the Exchange unless otherwise agreed by the Parties in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. As to any rights of action brought by the Subscriber against one or all of the members of the SAC, one
arbitrator shall be chosen by the AIF, one arbitrator will be chosen by the member or members of the SAC that are involved in the arbitration, and the third arbitrator will be chosen by the other two arbitrators. In the event any party to the
arbitration does not appoint an arbitrator within 60 days after the other party to the arbitration requests it to do so, or if the two arbitrators selected by the AIF and SAC member(s) fail to agree upon a third arbitrator within 30 days of the
appointment of the second arbitrator to be appointed, the arbitrator or arbitrators, as the case may be, will, upon the application of any party to the arbitration, be appointed by the American Arbitration Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The decision of the majority of the arbitrators will be final and binding on all parties to the arbitration. Each party to the arbitration will bear the expense of its own arbitrator and one-half of the expenses of the third arbitrator and of the arbitration. Any such arbitration expenses which may be incurred on behalf of individual members of the SAC will be borne by the Exchange. Arbitration taking place under this section will take place in Florida unless otherwise agreed in writing by the parties to the arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Although the Parties understand that all disputes or differences concerning the Parties' rights or obligations under this Agreement must be resolved pursuant to binding arbitration in accordance with paragraph (a) of this Section 9, which supersedes this paragraph, any action, litigation, suit or proceeding arising out of or relating to this Agreement or any transaction contemplated hereby, including the enforceability of the provisions of paragraph 9(a) hereof, shall be brought solely in federal or state courts of competent jurisdiction sitting in the courts located in Florida, and each of the Parties hereto hereby irrevocably consents and submits to the exclusive jurisdiction of such courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding any dispute or difference of opinion arising under this Agreement, the Exchange and the AIF must fulfill all obligations under the reciprocal insurance contracts exchanged by the Subscribers.

**10. Indemnification.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Exchange will indemnify, defend and hold harmless the AIF and each member, officer, director, employee and agent thereof (each an "<u>Indemnified Party</u>"), from and against all claims, losses, damages, liabilities and expenses, including, without limitation, settlement costs and any reasonable legal fees and expenses or other expenses for investigating and defending any

------

actions or threatened actions incurred by an Indemnified Party as a result of any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including an action by or **in** the right of the Exchange, relating to or arising out of the services provided by the AIF hereunder, except to the extent the act or failure to act giving rise to the claim for indemnification is determined by a court to have constituted the willful misconduct or recklessness of the Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Exchange will pay expenses incurred by an Indemnified Party in defending any action or proceeding referred to in this Section 10 in advance of the final disposition as they are incurred in such action or proceeding; *provided, however,* that the Exchange receives an undertaking by or on behalf of such Indemnified Party to repay such amount if it shall ultimately be determined that such Indemnified Party is not entitled to be indemnified by the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As soon as practicable after receipt by any Indemnified Party of notice of the commencement of any action, suit or proceeding specified in Section 10(a) above ("<u>Action</u>"), such person shall, if a claim may be made against the Exchange under this Section 10, notify the Exchange in writing of the Action; *provided, however,* that the omission to notify the Exchange will not relieve the Exchange of any liability under this Section 10 unless the Exchange is prejudiced thereby. With respect to any such Action as to which such person notifies the Exchange, the Exchange may participate in the Action at its own expense. the Exchange may, independently or jointly with any other indemnifying party assume the defense of the Action, with counsel selected by the Exchange. Counsel selected by the Exchange shall be reasonably satisfactory to the Indemnified Party. After notice from the Exchange of its election to assume the defense, the Exchange will not be liable to the Indemnified Party under this Section 10 for any legal or other expenses subsequently incurred by such Indemnified Party in connection with the defense of the Action. The Indemnified Party will have the right to hire his or her own counsel in such action, but the fees of such counsel incurred after notice from the Exchange of its assumption of the defense of the Action will be at the expense of the Indemnified Party unless: (i) the employment of counsel by the Indemnified Party shall have been authorized by the Exchange, (ii) the Indemnified Party shall have reasonably concluded that there may be a conflict of interest between the Exchange and such person in the conduct of the defense of such proceeding, or (iii) the Exchange did not employ counsel to assume the defense of the Action and the Indemnified Party shall have reasonably concluded that there may be a conflict of interest if indemnification under this Section 10 is not paid or made by the Exchange, or on its behalf, within 90 days after a written claim for indemnification has been received by the Exchange. Thereafter, the Indemnified Party may bring suit against the Exchange to recover the unpaid amount of the claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The right to indemnification and the right to advancement of expenses provided in this Section 10 shall be enforceable by such person in any court of competent jurisdiction. The burden of proving that indemnification is not appropriate shall be on the Exchange. Expenses reasonably incurred by such person in connection with successfully establishing the right to indemnification or advancement of expenses, in whole or in part, shall also be indemnified by the Exchange.

------

**11. Notices.** All notices, requests, demands, claims, and other communications between the Parties concerning the content and purpose of this Agreement shall be sent in writing by personal delivery, fax or by mail, registered or certified, postage pre-paid. Notices shall be addressed to the Parties as follows, or to such other addresses as may be specified by a Party from time to time by like written notice to the other Party:

If to the Exchange:

STEVEN HOFFMAN

12640 TELECOM DRIVE

TEMPLE TERRACE, FL 33637

If to the AIF:

JENNIFER COTUGNO

12640 TELECOM DRIVE

TEMPLE TERRACE, FL 33637

Notices delivered personally shall be deemed communicated as of actual receipt; faxed notices shall be deemed communicated upon confirmation of having been sent; and mailed notices shall be deemed communicated as of three business days after mailing.

**12. Miscellaneous** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement and all matters relating to its validity, interpretation, performance and enforcement shall be governed by and construed in accordance with the substantive laws of the State of the Exchange, without giving effect to the principles of the conflict of laws or the rules thereof that might require the application of the laws of another jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the AIF is authorized, at its expense, to contract with others for the performance of the management services it has agreed to provide to the Exchange under this Agreement; *provided, however,* that the AIF will remain responsible to the Exchange for the proper and timely performance of all management services set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement may be amended at any time by an instrument in writing executed by the Parties with the prior written approval of the Office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Agreement constitutes the entire agreement between the Parties and supersedes any prior understandings, agreements, or representations by or between the Parties, written or oral, to the extent they related in any way to the subject matter of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Agreement is for the sole benefit of the Parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other person any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The headings contained in this Agreement are for convenience of reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) All words used in this Agreement will be construed to be of such gender or number as the circumstances require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or portion of any provision in such jurisdiction, and this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No failure on the part of any Party to this Agreement to exercise any right or remedy under this Agreement, and no delay on the part of any Party to this Agreement in exercising any right or remedy under this Agreement, shall constitute a waiver of such right or remedy, and no single or partial exercise of any such right or remedy shall preclude any other or further exercise of such right or remedy or of any other right or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. A party may deliver this Agreement by transmitting a facsimile or other electronic signature of this Agreement signed by such party (via PDF, TIFF, JPEG or the like) to the other party, which facsimile or other electronic signature shall be deemed an original for all purposes.

\* \* \*

**IN WITNESS WHEREOF,** the Parties have executed this Agreement on the day and year first above written by the undersigned thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| **Manatee Insurance Exchange** | **Manatee Insurance Exchange** | **Manatee Risk Management LLC, Attorney-in-Fact of Manatee Insurance Exchange** | **Manatee Risk Management LLC, Attorney-in-Fact of Manatee Insurance Exchange** |
| Signature: | /s/ John Burns | Signature: | /s/ Steven Hoffman |
| Name: | John Burns | Name: | Steven Hoffman |
| Title: | Chair – Subscriber Advisory Committee | Title: | Chief Financial Officer |
| Date: | January 30, 2024 | Date: | January 30, 2024 |

---

------

**Claims Service Fee Schedule** 

[Omitted]

## Exhibit 10.8

**Exhibit 10.8** 

**AMENDMENT** 

**TO THE** 

**SAFEPOINT HOLDINGS, INC** 

**2024 STOCK INCENTIVE PLAN** 

This Amendment (this "<u>Amendment</u>") to the Safepoint Holdings, Inc. 2024 Stock Incentive Plan, as amended from time to time (the "<u>Plan</u>") is made effective as of this 15th day of December 2025.

**WHEREAS,** Safepoint Holdings, Inc. (the "<u>Company</u>") maintains the Plan;

**WHEREAS,** pursuant to Section 17(a) of the Plan, the Company's board of directors (the "<u>Board</u>") may amend the Plan at any time; and

**WHEREAS,** the Board now desires to amend the Plan to increase the number of shares of Stock reserved for issuance under the Plan from 813,000 shares of Stock to 1,255,563 shares of Stock.

**NOW, THEREFORE,** the Plan is hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.  **<u>Capitalized Terms</u>.** Capitalized terms that are not defined in this Amendment shall have the
meanings ascribed thereto in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.  **<u>Amendment to the Plan</u>.** The first sentence of Section 4(a) of the Plan is hereby amended in
its entirety to read as follows:

"Subject to adjustment as provided in Section 11 hereof, the total

number of shares of Stock reserved and available for delivery in

connection with Awards under the Plan shall equal 1,255,563."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.  **<u>Ratification and Confirmation</u>.** Except as specifically amended by this Amendment, the Plan is
hereby ratified and confirmed in all respects and remains valid and in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.  **<u>Governing Law</u>.** This Amendment shall be governed by and construed in accordance with the laws of
the State of Florida, without reference to the principles of conflicts of laws thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.  **<u>Headings</u>.** Section headings are for convenience only and shall not be considered a part of this
Amendment.

**\* \* \*** 

------

**SAFEPOINT HOLDINGS, INC.** 

**2024 STOCK INCENTIVE PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **PURPOSE.** 

The purpose of the Plan is to assist the Company in attracting, retaining, motivating, and rewarding certain key employees, officers, directors, and consultants of the Company Group and promoting the creation of long-term value for stockholders of the Company by closely aligning the interests of such individuals with those of such stockholders. The Plan authorizes the award of Stock-based incentives to Eligible Persons to encourage such Eligible Persons to expend maximum effort in the creation of stockholder value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **DEFINITIONS.** 

For purposes of the Plan, the following terms shall be defined as set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Affiliate</u>" means with respect to any specified Person at any time, each Person directly or indirectly controlling, controlled by or under direct or indirect common control with such specified Person at such time, and the officers, directors and managers of such specified Person. For purposes of this definition, "control", when used in reference to any specified Person means the power to direct the management and policies of such specified Person, directly or indirectly, whether through the ownership of voting securities or other ownership interest, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Award</u>" means any Option, Restricted Stock, RSU or other Stock-based award granted under the Plan. Stock acquired upon issuance, vesting, exercise, or settlement of any Award shall be considered an Award for all purposes of the Plan. No election under Section 83(i) of the Code will be available with respect to Stock issued pursuant to any Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Award Agreement</u>" means an Option Agreement, a Restricted Stock Agreement, an RSU Agreement or an agreement governing the grant of any other Stock-based award granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Board</u>" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Cause</u>" means, with respect to a Participant and in the absence of an Award Agreement or Participant Agreement otherwise defining Cause, (1) the Participant's plea of *nolo contendere* to, conviction of or indictment for, any crime (whether or not involving the Company Group) (A) constituting a felony or (B) that has, or could reasonably be expected to result in, an adverse impact on the performance of the Participant's duties to the Service Recipient, or otherwise has, or could reasonably be expected to result in, an adverse impact on the business or reputation of any member of the Company Group; (2) conduct of the Participant, in connection with his or her employment or service, that has resulted, or could reasonably be expected to result, in material injury to the business or reputation of any member of the Company Group; (3) any material violation of the policies of the Service Recipient, including, but not limited to, those relating to sexual harassment or the disclosure or misuse of confidential information, or those set forth in the manuals or statements of policy of the Service Recipient; (4) the Participant's act(s) of negligence

------

or willful misconduct in the course of his or her employment or service with the Service Recipient; (5) misappropriation by the Participant of any assets or business opportunities of any member of the Company Group; (6) embezzlement or fraud committed by the Participant, at the Participant's direction, or with the Participant's prior actual knowledge; or (7) willful neglect in the performance of the Participant's duties for the Service Recipient or willful or repeated failure or refusal to perform such duties. If, subsequent to the Termination of a Participant for any reason other than by the Service Recipient for Cause, it is discovered that the Participant's employment or service could have been terminated for Cause, such Participant's employment or service shall, at the discretion of the Committee, be deemed to have been terminated by the Service Recipient for Cause for all purposes under the Plan, and the Participant shall be required to repay or return to the Company all amounts and benefits received by him or her in respect of any Award following such Termination that would have been forfeited under the Plan had such Termination been by the Service Recipient for Cause. In the event that there is an Award Agreement or Participant Agreement otherwise defining Cause, "<u>Cause</u>" shall have the meaning provided in such agreement, and a Termination by the Service Recipient for Cause hereunder shall not be deemed to have occurred unless all applicable notice and cure periods in such Award Agreement or Participant Agreement are complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Change in Control</u>" means (1) a change in ownership or control of the Company effected through a transaction or series of transactions (other than an offering of Stock to the general public through a registration statement filed with the Securities and Exchange Commission or similar non–United States regulatory agency) whereby any Person or Group directly or indirectly acquires "beneficial ownership" (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than fifty percent (50%) of the total combined voting power of the Company's securities outstanding immediately after such acquisition; or (2) the sale or disposition, in one or a series of related transactions, of all or substantially all of the assets of the Company to any Person or Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Code</u>" means the U.S. Internal Revenue Code of 1986, as amended from time to time, including the rules and regulations thereunder and any successor provisions, rules and regulations thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Committee</u>" means the Board or such committee thereof consisting of two or more individuals appointed by the Board to administer the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Company</u>" means Safepoint Holdings, Inc., a Florida corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Company Group</u>" means the Company, together with each direct or indirect subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Competitive Activity</u>" means, with respect to any Participant and in the absence of an Award Agreement or Participant Agreement containing covenants relating to competition with the Service Recipient of the Participant, any activity reasonably determined by the Committee to be competitive with the business of any member of the Company Group. If a Participant's Award Agreement or effective Participant Agreement contains covenants relating to restrictions on competition, engaging in "Competitive Activity" with respect to such Participant shall mean the breach of such restrictive covenants.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Corporate Event</u>" has the meaning set forth in Section 11(b) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Data</u>" has the meaning set forth in Section 21(i) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>Disability</u>" means, in the absence of an Award Agreement or Participant Agreement otherwise defining Disability, the permanent and total disability of such Participant within the meaning of Section 22(e)(3) of the Code. In the event that there is an Award Agreement or Participant Agreement defining Disability, "<u>Disability</u>" shall have the meaning provided in such agreement, and a Termination by reason of a Disability hereunder shall not be deemed to have occurred unless all applicable notice periods in such Award Agreement or Participant Agreement are complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "<u>Drag-Along Notice</u>" has the meaning set forth in Section 8(b) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "<u>Drag-Along Right</u>" has the meaning set forth in Section 8(b) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "<u>Effective Date</u>" means July 19, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "<u>Eligible Person</u>" means (1) each employee of any member of the Company Group, including each such person who may also be a director of any member of the Company Group, (2) each non-employee director of any member of the Company Group, (3) each other natural person who provides substantial services to any member of the Company Group, and (4) any natural person who has been offered employment by any member of the Company Group; *provided,* that such prospective employee may not receive any payment or exercise any right relating to an Award until such person has commenced employment with any member of the Company Group. An employee on an approved leave of absence may be considered as still in the employ of a member of the Company Group for purposes of eligibility for participation in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "<u>Exchange Act</u>" means the U.S. Securities Exchange Act of 1934, as amended from time to time, including the rules and regulations thereunder and any successor provisions, rules and regulations thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "<u>Expiration Date</u>" means, with respect to any Option, the date upon which the term of such Option expires, as determined under Section 5(b) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "<u>Fair Market Value</u>" means, as of any date when the Stock is listed on one or more national securities exchanges, the closing price reported on the principal national securities exchange on which such Stock is listed and traded on the date of determination or, if the closing price is not reported on such date of determination, the closing price reported on the most recent date prior to the date of determination. If the Stock is not listed on a national securities exchange, "<u>Fair Market Value</u>" shall mean the amount determined by the Committee in good faith to be the fair market value per share of Stock. For purposes of determining the Fair Market Value of any Stock Equivalents, the Fair Market Value shall be determined in accordance with the previous two sentences and such value shall be reduced by the applicable exercise or strike price applicable to such Stock Equivalent.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>IPO</u>" means an initial underwritten public offering of the Company's equity securities pursuant to an effective Form S-1 or Form F-1 registration statement filed under the Securities Act or similar law or regulation governing the offering and sale of securities in a jurisdiction other than the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "<u>IPO Date</u>" means the effective date of the registration statement for the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "<u>Liquidation Event</u>" means a bankruptcy, liquidation or other insolvency proceeding, or a merger, acquisition or Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "<u>Lock-Up Period</u>" has the meaning set forth in Section 8(a) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "<u>Option</u>" means a conditional right, granted to a Participant under Section 5 hereof, to purchase Stock at a specified price during a specified time period. Options under the Plan are not intended to qualify as "incentive stock options" meeting the requirements of Section 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "<u>Option Agreement</u>" means a written agreement between the Company and a Participant evidencing the terms and conditions of an individual Option grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "<u>Participant</u>" means an Eligible Person who has been granted an Award under the Plan or, if applicable, such other person or entity who holds an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "<u>Participant Agreement</u>" means an employment or other services agreement between a Participant and the Service Recipient that describes the terms and conditions of such Participant's employment or service with the Service Recipient and is effective on the applicable date of grant with respect to any Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "<u>Per Share Drag-Along Purchase Price</u>" has the meaning set forth in Section 8(b)(1) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "<u>Permitted Transfer</u>" means any transfer by a Participant of all or any portion of his or her shares of Stock or Stock Equivalents to (1) any trust established for the sole benefit of such Participant or such Participant's spouse or direct lineal descendants, (2) any other entity (including an individual retirement account or similar investment account) in which the direct and beneficial owner of all voting securities of such entity is held by such Participant, (3) such Participant's heirs, executors, administrators, or personal representatives upon the death, incompetency, or Disability of such Participant, or (4) subject to approval of the Company or a duly authorized officer of any member of the Company Group, a person or persons who acquire a proprietary interest in shares of Stock or Stock Equivalents pursuant to the terms of a domestic relations order, official marital settlement agreement or other divorce or separation instrument as permitted by Treasury Regulation Section 1.421-1(b)(2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "<u>Person or Group</u>" means any "person" (as defined in Section 3(a)(9) of the Exchange Act) or any two or more persons deemed to be one "person" (as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act), in each case, other than any member of the Company Group, or an employee benefit plan maintained by any member of the Company Group.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "<u>Person</u>" means any natural person, corporation, limited liability company, partnership, trust, joint stock company, business trust, unincorporated association, joint venture, governmental authority or other legal entity of any nature whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "<u>Plan</u>" means this Safepoint Holdings, Inc. 2024 Stock Incentive Plan, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Prime Rate</u>" means the rate from time to time published in the "Money Rates" section of *The Wall Street Journal* as being the "Prime Rate" (or, if more than one rate is published as the Prime Rate, then the highest of such rates).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "<u>Prohibition Event</u>" has the meaning set forth in Section 9(c) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "<u>Repurchase Price</u>" means —

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) on or following the Termination of a Participant other than by the Service Recipient for Cause, an amount equal to the Fair Market Value of the Stock or Stock Equivalents, as applicable, on the date that the written notice of repurchase is delivered pursuant to Section 9(a) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) on or following the Termination of a Participant by the Service Recipient for Cause, the lesser of (A) the original purchase price paid for such shares of Stock or Stock Equivalents, as applicable (as adjusted for any subsequent changes in the outstanding Stock or in the capital structure of the Company) less any dividends or other distributions or bonus received (or to be received) by the Participant (or any transferee) in respect of the shares of Stock or Stock Equivalents, as applicable (including any cash bonus paid in lieu of an adjustment to an Option) prior to the date of repurchase and (B) the Fair Market Value of the Stock or the Stock Equivalents, as applicable, on the date that the written notice of repurchase is delivered pursuant to Section 9(a) hereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) notwithstanding anything contained within clause (1) or (2) above, if a Participant has violated any restrictive covenant to which he or she is subject to with any member of the Company Group, the Repurchase Price shall be the lesser of (A) the original purchase price paid for such shares of Stock or Stock Equivalents, as applicable (as adjusted for any subsequent changes in the outstanding shares of Stock or in the capital structure of the Company) *less* any dividends or other distributions or bonus received (or to be received) by the Participant (or any transferee) in respect of the shares of Stock or Stock Equivalents, as applicable (including any cash bonus paid in lieu of an adjustment to an Option) prior to the date of repurchase and (B) the Fair Market Value of the shares of Stock or Stock Equivalents, as applicable, on the date that the written notice of repurchase is delivered pursuant to Section 9(a) hereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "<u>Repurchase Right</u>" has the meaning set forth in Section 9 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "<u>Repurchase Right Exercise Period</u>" means the period commencing on the date of Termination of a Participant with the Service Recipient for any reason and ending on the earlier to occur of (1) the IPO Date and (2) the twenty-four (24) month anniversary of the commencement of the Repurchase Right Exercise Period or, if later, the twenty-four (24) month anniversary of the date on which the applicable shares of Stock were acquired upon the exercise of an Option or the exercise or settlement of any other Award requiring exercise or settlement; *provided,* that, in the event that a Participant has violated any restrictive covenant to which he or she is subject to with any member of the Company Group, the Repurchase Right Exercise Period shall commence (or restart if the Repurchase Right Exercise Period has already commenced) as of the date on which the Company first acquires actual knowledge of such violation and shall continue until the later of (x) the date on which the Repurchase Right Exercise Period would have otherwise expired as set forth herein, and (y) the twelve (12) month anniversary of the date on which the Company first acquires actual knowledge of such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "<u>Repurchase Right Lapse Date</u>" means the earlier to occur of (1) the IPO Date and (2) a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "<u>Restricted Stock</u>" means Stock granted to a Participant under Section 6 hereof that is subject to certain restrictions and to a risk of forfeiture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "<u>Restricted Stock Agreement</u>" means a written agreement between the Company and a Participant evidencing the terms and conditions of an individual Restricted Stock grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) "<u>RSU</u>" means an unfunded and unsecured promise to deliver shares of Stock, cash, other securities or other property, subject to certain restrictions (which may include, without limitation, a requirement that the Participant remain continuously employed or provide continuous services for a specified period of time), granted under Section 6 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) "<u>RSU Agreement</u>" means a written agreement between the Company and a Participant evidencing the terms and conditions of an individual RSU grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) "<u>Securities Act</u>" means the U.S. Securities Act of 1933, as amended from time to time, including the rules and regulations thereunder and any successor provisions, rules and regulations thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) "<u>Service Recipient</u>" means, with respect to a Participant holding a given Award, the applicable member of the Company Group by which the Participant is, or following a Termination was most recently, principally employed or to which the Participant provides, or following a Termination was most recently providing, services, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) "<u>Stock</u>" means the Company's common stock, par value $0.001 per share, and such other securities as may be substituted for such common stock pursuant to Section 11 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) "<u>Stock Equivalent</u>" means any shares, warrants, rights, units, calls, options or other securities exchangeable or exercisable for, or convertible into, directly or indirectly, shares of Stock, which, for the avoidance of doubt, includes Options granted pursuant to Section 5 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) "<u>Substitute Award</u>" has the meaning set forth in Section4(a) 4(a) hereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) "<u>Termination</u>" means the termination of a Participant's employment or service, as applicable, with the Service Recipient; *provided, however,* that, (x) if so determined by the Committee at the time of any change in status in relation to the Service Recipient (e.*g.*, a Participant ceases to be an employee and begins providing services as a consultant, or vice versa), such change in status will not be deemed to be a Termination hereunder, and (y) if so determined by the Committee at the time of a furlough, temporary layoff or similar event with respect to a Participant, such furlough, temporary layoff or similar event will not be deemed to be a Termination hereunder until such time as the Committee determines that a Termination has occurred. Notwithstanding anything herein to the contrary, a Participant's change in status in relation to the Service Recipient (for example, a change from employee to consultant) shall not be deemed a Termination hereunder with respect to any Awards constituting nonqualified deferred compensation subject to Section 409A of the Code that are payable upon a Termination unless such change in status constitutes a "separation from service" within the meaning of Section 409A of the Code. Unless otherwise determined by the Committee, in the event that any Service Recipient ceases to be a member of the Company Group (by reason of sale, divestiture, spin-off, or other similar transaction), each Participant that is employed by or provides services to such Service Recipient shall be deemed to have suffered a Termination hereunder as of the date of the consummation of such transaction, unless the Participant's employment or service is transferred to another entity that would constitute a Service Recipient immediately following such transaction. For the avoidance of doubt, in the event that a Participant provides notice of his or her intention to resign at a future date, the Service Recipient may, in its sole and absolute discretion, accelerate such date of Termination without changing the characterization of such Termination, and such Termination shall remain a resignation by the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) "<u>Transfer</u>" means any sale, assignment, transfer, mortgage, creation of a security interest in, alienation, pledge, hypothecation or other encumbrance or disposition or right granted to effect any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **ADMINISTRATION.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Authority of the Committee</u>. Except as otherwise provided below, the Plan shall be administered by the Committee. The Committee shall have full and final authority, in each case subject to and consistent with the provisions of the Plan, to (1) select Eligible Persons to become Participants, (2) grant Awards, (3) determine the type, number of shares of Stock subject to, other terms and conditions of, and all other matters relating to, Awards, (4) prescribe Award Agreements (which need not be identical for each Participant) and rules and regulations for the administration of the Plan, (5) construe and interpret the Plan and Award Agreements and correct defects, supply omissions, and reconcile inconsistencies therein, (6) suspend the right to exercise Awards during any period that the Committee deems appropriate to comply with applicable securities laws, and thereafter extend the exercise period of an Award by an equivalent period of time or such shorter period required by, or necessary to comply with, applicable law, including Section 409A of the Code, and (7) make all other decisions and determinations as the Committee may deem necessary or advisable for the administration of the Plan. Any action of the Committee shall be final, conclusive, and binding on all persons, including, without limitation, each member of the Company Group, Eligible Persons, Participants, and beneficiaries of Participants. For the avoidance of doubt, the Board shall have the authority to take all actions under the Plan that the Committee is permitted to take.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Delegation</u>. To the extent permitted by applicable law, the Committee may delegate to officers or employees of any member of the Company Group, or committees thereof, the authority, subject to such terms as the Committee shall determine, to perform such functions under the Plan, including, but not limited to, administrative functions, as the Committee may determine appropriate. The Committee may appoint agents to assist it in administering the Plan. Any actions taken by an officer or employee delegated authority pursuant to this Section 3(b) within the scope of such delegation shall, for all purposes under the Plan, be deemed to be an action taken by the Committee. Notwithstanding the foregoing or any other provision of the Plan to the contrary: (i) any Award granted under the Plan to any Eligible Person who is not an employee of any member of the Company Group (including any non-employee director of any member of the Company Group) must be expressly approved by the Committee; (ii) no officer or employee may grant an Award to himself or herself; and (iii) the Committee may not delegate authority to an officer or employee who is acting solely in the capacity of an officer or employee (and not also as a director of the Company) to determine the Fair Market Value pursuant to Section 2(u) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Sections 409A and 457A</u>. The Committee shall take into account compliance with Sections 409A and 457A of the Code in connection with any grant of an Award under the Plan, to the extent applicable. Any payments in respect of an Award constituting nonqualified deferred compensation subject to Section 409A of the Code that are payable upon a Termination shall be delayed for such period as may be necessary to meet the requirements of Section 409A(a)(2)(B)(i) of the Code. On the first business day following the expiration of such period, the Participant shall be paid, in a single lump sum without interest, an amount equal to the aggregate amount of all payments delayed pursuant to the preceding sentence, and any remaining payments not so delayed shall continue to be paid pursuant to the payment schedule applicable to such Award. While the Awards granted hereunder are intended to be structured in a manner to avoid the imposition of any penalty taxes under Sections 409A and 457A of the Code, in no event whatsoever shall the Company Group be liable for any additional tax, interest, or penalties that may be imposed on a Participant as a result of Section 409A or Section 457A of the Code or any damages for failing to comply with Section 409A or Section 457A of the Code or any similar state or local laws (other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A or Section 457A of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **SHARES AVAILABLE UNDER THE PLAN.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Number of Shares Available for Delivery</u>. Subject to adjustment as provided in Section 11 hereof, the total number of shares of Stock reserved and available for delivery in connection with Awards under the Plan shall equal 813,000. Shares of Stock delivered under the Plan shall consist of authorized and unissued shares or previously issued shares of Stock reacquired by the Company on the open market or by private purchase. Notwithstanding the foregoing, the number of shares of Stock available for issuance hereunder shall not be reduced by shares issued pursuant to Awards assumed in connection with a merger or acquisition (each such Award, a "<u>Substitute Award</u>").

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Share Counting Rules</u>. The Committee may adopt reasonable counting procedures to ensure appropriate counting, avoid double-counting (as, for example, in the case of tandem awards or Substitute Awards) and make adjustments if the number of shares of Stock actually delivered differs from the number of shares previously counted in connection with an Award. Other than with respect to a Substitute Award, to the extent that an Award expires or is canceled, forfeited, or otherwise terminated without delivery to the Participant of the full number of shares of Stock to which the Award related (but excluding shares of Stock underlying any vested Stock Equivalents repurchased pursuant to Section 9 below), the undelivered shares of Stock will again be available for delivery under the Plan. Additionally, other than with respect to a Substitute Award, any unvested shares of Restricted Stock repurchased by the Company pursuant to Section 6(c) below following a Participant's Termination for any reason will again be available for delivery under the Plan. Shares of Stock withheld in payment of the exercise price or taxes relating to an Award and shares of Stock equal to the number surrendered in payment of any exercise price or taxes relating to an Award shall not be deemed to constitute shares delivered to the Participant and shall be deemed to again be available for delivery under the Plan. Further, the Committee may, in its sole discretion, provide that any vested share of Stock (including a share of Stock underlying a vested Stock Equivalent) that is repurchased by the Company pursuant to Section 9 below or underlying any Award that is settled in cash will again be available for delivery under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **OPTIONS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Options may be granted to Eligible Persons in such form and having such terms and conditions as the Committee shall deem appropriate. The provisions of Options shall be set forth in Option Agreements, which agreements need not be identical.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term</u>. The term of each Option shall be set by the Committee at the time of grant; *provided, however,* that no Option granted hereunder shall be exercisable after, and each Option shall expire, ten (10) years from the date it was granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Exercise Price</u>. The exercise price per share of Stock for each Option shall be set by the Committee at the time of grant; *provided, however,* that if an Option is intended to qualify as a "stock right" that does not provide for a "deferral of compensation" within the meaning of Section 409A of the Code, then the applicable exercise price shall not be less than the Fair Market Value on the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Payment for Stock</u>. Payment for shares of Stock acquired pursuant to an Option granted hereunder shall be made in full upon exercise of the Option in a manner approved by the Committee, which may include any of the following payment methods: (1) in immediately available funds in United States dollars, or by certified or bank cashier's check, (2) by delivery of a notice of "net exercise" to the Company, pursuant to which the Participant shall receive the number of shares of Stock underlying the Option so exercised reduced by the number of shares of Stock equal to the aggregate exercise price of the Option divided by the Fair Market Value on the date of exercise, (3) by delivery of shares of Stock having a Fair Market Value equal to the exercise price, or (4) by any other means approved by the Committee. Anything herein to the contrary notwithstanding, if the Committee determines that any form of payment available hereunder would be in violation of Section 402 of the Sarbanes-Oxley Act of 2002, such form of payment shall not be available on or following the date on which the Company (or any of its affiliates) files an initial registration statement for an IPO.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Vesting</u>. Options shall vest and become exercisable in such manner, on such date or dates, or upon the achievement of performance or other conditions, in each case, as may be determined by the Committee and set forth in an Option Agreement; *provided, however,* that notwithstanding any such vesting dates, the Committee may in its sole discretion accelerate the vesting of any Option at any time and for any reason. Unless otherwise specifically determined by the Committee, the vesting of an Option shall occur only while the Participant is actively employed by or actively rendering services to the Service Recipient, and all vesting (other than vesting as a result of the applicable Termination) shall cease upon a Participant's Termination for any reason (or earlier on the date on which the Participant's active employment or active services rendering terminates). For purposes of this Section 5(e) only, a Participant's active employment or other active service rendering relationship shall not include any notice period mandated under applicable law or pursuant to the terms of any contract and active employment shall not include any period of "garden leave" or similar period pursuant to applicable law or the terms of any contract. To the extent permitted by applicable law and unless otherwise determined by the Committee, vesting shall be suspended during the period of any approved unpaid leave of absence by a Participant following which the Participant has a right to reinstatement and shall resume upon such Participant's return to active employment. Further, unless otherwise determined by the Committee, in the event that the Committee determines that a furlough, temporary layoff or similar event with respect to a Participant does not constitute a Termination, vesting shall be suspended during the period of any such furlough, temporary layoff or similar event and shall resume upon such Participant's return to active employment. If an Option is exercisable in installments, such installments that become exercisable shall remain exercisable until the Option expires, is canceled or otherwise terminates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Transferability of Options</u>. Except in connection with a Permitted Transfer of vested Options, an Option shall not be transferred, sold, pledged, assigned, hypothecated or otherwise encumbered or disposed of except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant. For the avoidance of doubt, following a Participant's death, a vested Option may be exercised in accordance with Section 5(g)(2). To the extent that a Participant wishes to make a Permitted Transfer of vested Options, it shall be a condition of each such Permitted Transfer that (1) the transferee agrees to be bound by the terms of the Plan, the applicable Option Agreement, and, if requested by the Company, the stockholders' or similar agreement, as though no such transfer had taken place, and (2) the Participant has complied with all applicable law in connection with such transfer. The Participant and the transferee shall execute any documents reasonably required by the Committee to effectuate such Permitted Transfer and be bound by the terms of the Plan, the applicable Award Agreement, and, if requested by the Company, the stockholders' or similar agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Termination of Employment or Service</u>. Except as provided by the Committee in an Option Agreement, Participant Agreement or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) In the event of a Participant's Termination prior to the applicable Expiration Date for any reason other than (A) by the Service Recipient for Cause or (B) by reason of the Participant's death or Disability, (i) all vesting with respect to such Participant's Options shall cease, (ii) all of such Participant's unvested Options shall terminate and be forfeited for no consideration as of the date of such Termination, and (iii) all of such Participant's vested Options shall terminate and be forfeited for no consideration on the earlier of (x) the applicable Expiration Date and (y) the date that is ninety (90) days after the date of such Termination.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In the event of a Participant's Termination prior to the applicable Expiration Date by reason of such Participant's death or Disability, (A) all vesting with respect to such Participant's Options shall cease, (B) all of such Participant's unvested Options shall terminate and be forfeited for no consideration as of the date of such Termination, and (C) all of such Participant's vested Options shall terminate and be forfeited for no consideration on the earlier of the applicable Expiration Date and the date that is twelve (12) months after the date of such Termination. In the event of a Participant's death, such Participant's Options shall remain exercisable by the person or persons to whom a Participant's rights under the Options pass by will or by the applicable laws of descent and distribution until the earlier of (x) the applicable Expiration Date and (y) the date that is twelve (12) months after the date of such Termination, but only to the extent that the Options were vested at the time of such Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) In the event of a Participant's Termination prior to the applicable Expiration Date by the Service Recipient for Cause, all of such Participant's Options (whether or not vested) shall immediately terminate and be forfeited for no consideration as of the date of such Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **RESTRICTED STOCK AND RSUS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Restricted Stock and RSUs may be granted to Eligible Persons in such form and having such terms and conditions as the Committee shall deem appropriate. The provisions of separate Awards of Restricted Stock and RSUs shall be set forth in separate Restricted Stock Agreements and RSU Agreements, which agreements need not be identical. Subject to the restrictions set forth in Section 6(b) hereof, and except as otherwise set forth in the applicable Restricted Stock Agreement, upon the grant of Restricted Stock, the Participant shall generally have the rights and privileges of a stockholder as to such Restricted Stock, including the right to vote such Restricted Stock. Unless otherwise set forth in a Participant's Restricted Stock Agreement or RSU Agreement, cash dividends and stock dividends, if any, with respect to the Restricted Stock and RSUs shall be withheld by the Company for the Participant's account, and shall be subject to forfeiture to the same degree as the shares of Restricted Stock and RSUs to which such dividends relate. Except as otherwise determined by the Committee, no interest will accrue or be paid on the amount of any cash dividends withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting and Restrictions on Transfer</u>. Restricted Stock and RSUs shall vest in such manner, on such date or dates, or upon the achievement of performance or other conditions, in each case as may be determined by the Committee and set forth in a Restricted Stock Agreement or RSU Agreement; *provided, however,* that notwithstanding any such vesting dates, the Committee may in its sole discretion accelerate the vesting of any Award of Restricted Stock or RSUs at any time and for any reason. Unless otherwise specifically determined by the Committee, the vesting of an Award of Restricted Stock or RSUs shall occur only while the Participant is actively employed by or actively rendering services to the Service Recipient, and all vesting (other than vesting as a result of the applicable Termination) shall cease upon a Participant's Termination for any reason (or earlier on the date on which the Participant's active employment or active

------

services rendering terminates). For purposes of this Section 6(b) only, a Participant's active employment or other active service rendering relationship shall not include any notice period mandated under applicable law or pursuant to the terms of any contract and active employment shall not include any period of "garden leave" or similar period pursuant to applicable law or the terms of any contract. To the extent permitted by applicable law and unless otherwise determined by the Committee, vesting shall be suspended during the period of any approved unpaid leave of absence by a Participant following which the Participant has a right to reinstatement and shall resume upon such Participant's return to active employment. Further, unless otherwise determined by the Committee, in the event that the Committee determines that a furlough, temporary layoff or similar event with respect to a Participant does not constitute a Termination, vesting shall be suspended during the period of any such furlough, temporary layoff or similar event and shall resume upon such Participant's return to active employment. In addition to any other restrictions set forth in a Participant's Restricted Stock Agreement or RSU Agreement, as applicable, the Participant shall not be permitted to sell, transfer, pledge, assign, hypothecate or otherwise encumber or dispose of the Restricted Stock prior to the time the Restricted Stock has vested pursuant to the terms of the Restricted Stock Agreement, or sell, transfer, pledge or otherwise encumber the RSUs at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Employment or Service</u>. Except as provided by the Committee in a Restricted Stock Agreement, RSU Agreement, Participant Agreement or otherwise, in the event of a Participant's Termination for any reason prior to the time that such Participant's Restricted Stock or RSUs has vested, (1) all vesting with respect to such Participant's Restricted Stock and RSUs shall cease, and (2) as soon as practicable following such Termination, the Company shall repurchase from the Participant, and the Participant shall sell, all of such Participant's unvested shares of Restricted Stock at a purchase price equal to the lesser of (A) the original purchase price paid for the Restricted Stock (as adjusted for any subsequent changes in the outstanding Stock or in the capital structure of the Company) *less* any dividends or other distributions or bonus received (or to be received) by the Participant (or any transferee) in respect of such Restricted Stock prior to the date of repurchase, (B) the Fair Market Value of the Stock on the date of such repurchase; provided that, if the original purchase price paid for the Restricted Stock is equal to zero dollars ($0), such unvested shares of Restricted Stock shall be forfeited to the Company by the Participant for no consideration as of the date of such Termination, (3) all of the Participant's then-unvested RSUs shall terminate and be forfeited for no consideration as of the date of such Termination, and (4) any shares remaining undelivered with respect to vested RSUs held by such Participant shall be delivered on the delivery date or dates specified in the RSU Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Settlement of RSUs</u>. Except as provided by the Committee in an RSU Agreement or otherwise, upon vesting of any outstanding RSUs, the Company shall deliver to the Participant, or his beneficiary, without charge, one share of Stock for each such vested RSU; *provided, however,* that the Committee may, in its sole discretion, elect to (i) pay cash or part cash and part shares of Stock in lieu of delivering only share of Stock in respect of such RSUs or (ii) defer the delivery of shares of Stock (or cash or part cash and part shares of Stock, as the case may be) beyond the vesting of such RSUs if such delivery would result in a violation of applicable law until such time as is no longer the case. If a cash payment is made in lieu of delivering shares of Stock, the amount of such payment shall be equal to the Fair Market Value of the shares of Stock as of the date on which such RSUs settle, *less* an amount equal to any federal, state, local and non-U.S. income and employment taxes required to be withheld.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **OTHER STOCK-BASED AWARDS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Committee is authorized, subject to limitations under applicable law, to grant to Participants such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based upon, or related to, Stock, as deemed by the Committee to be consistent with the purposes of the Plan. The Committee may also grant Stock as a bonus (whether or not subject to any vesting requirements or other restrictions on transfer), and may grant other Awards in lieu of obligations of any member of the Company Group to pay cash or deliver other property under the Plan or under other plans or compensatory arrangements, subject to such terms as shall be determined by the Committee. The terms and conditions applicable to such Awards shall be determined by the Committee and evidenced by Award Agreements, which agreements need not be identical.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **RESTRICTIONS ON STOCK; PROXY.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Prohibition on Transfers</u>. Except (1) as otherwise approved by the Committee, (2) pursuant to subsection (b) or (c) of this Section 8, or (3) pursuant to Section 9 hereof, shares of Stock acquired by a Participant pursuant to the issuance, vesting, exercise, or settlement of any Award granted hereunder may not be sold, transferred, pledged, assigned, hypothecated, or otherwise encumbered or disposed of, nor may a Participant (or any transferee) sell, transfer, pledge, assign, hypothecate or otherwise encumber or dispose of his, her or its right to receive all or any portion of the future proceeds to be received upon the sale, transfer or other disposition of such shares of Stock, in either case, prior to the one hundred eightieth (180th) day following the IPO Date (or such other period as may reasonably be requested by the Company or the underwriter(s) for the IPO to accommodate regulatory restrictions on (i) the publication or other distribution of research reports or (ii) analyst recommendations and opinions, including (without limitation) the restrictions set forth in Rule 2711(f)(4) of the National Association of Securities Dealers and Rule 472(f)(4) of the New York Stock Exchange, as amended, or any similar successor rules or amendments thereto) (the "<u>Lock-Up Period</u>"). If requested by the underwriters managing any public offering, each Participant shall execute a separate agreement to the foregoing effect. The Company may impose stop-transfer instructions with respect to the Stock (or securities) subject to the foregoing restriction until the end of such Lock-Up Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Drag-Along Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) In the event a stockholder of the Company, alone or in combination with other stockholders of the Company, owns greater than fifty percent (50%) of the Stock (on an as-converted basis), and at any time that such stockholder(s) (collectively, if more than one stockholder, the "<u>Dragging Stockholder</u>") desires to (i) Transfer in a bona fide arms' length sale of all of their Stock to any Person or Persons who are not Affiliates of the Company or any Dragging Stockholder, (ii) approve any merger of the Company with or into any other Person who is not an Affiliate of the Company or any Dragging Stockholder, including any transaction that would constitute a Liquidation Event, or (iii) approve any sale of all or substantially all of the Company's assets to any Person or Persons

------

who are not Affiliates of the Company or any Dragging Stockholder, including any transaction that would constitute a Liquidation Event (for purposes of this Section 8(b) such Person or Persons are referred to as the "<u>Proposed Transferee</u>"), the Dragging Stockholder shall have the right (for purposes of this Section 8(b), the "<u>Drag-Along Right</u>"), but not the obligation, (A) in the case of a Transfer of the type referred to in clause (i), to require all of the Company's equityholders who received their shares pursuant to the grant of an Award hereunder (collectively, the "<u>Minority Stockholders</u>") to sell to the Proposed Transferee all of the Minority Stockholders' equity interests in the Company for the Per Share Drag-Along Purchase Price (as defined below), or (B) in the case of a merger or sale of assets or other Liquidation Event referred to in clauses (ii) or (iii), to require the Minority Stockholders to vote (or act by written consent with respect to) all equity interests then owned by the Minority Stockholders in favor of such transaction and to waive any dissenters' rights, appraisal rights or similar rights the Minority Stockholders may have under applicable law. The Company agrees to take all steps necessary to cause the Minority Stockholders to comply with the provisions of this Section 8(b) to facilitate the Dragging Stockholder's exercise of a Drag-Along Right. As used herein, "<u>Per Share Drag-Along Purchase Price</u>" means the consideration per share for such security as is proposed to be received by the Dragging Shareholder (less, in the case of Stock Equivalents, the exercise price for such securities), including equivalent rights to receive (when and if paid) a proportionate share of any deferred consideration, earn-out or escrow funds that may become available to the Dragging Stockholder in connection with the proposed transaction (less, in the case of Options, warrants, or other convertible securities, the exercise or purchase price thereof and less any applicable employment taxes or withholding obligations); *provided, however,* that if the Dragging Stockholder holds preferred stock of the Company, such per-share price shall be calculated based upon the implied equity value of each share of Stock (less, in the case of Options, warrants, or other convertible securities, the exercise or purchase price thereof) determined by reference to the per-share price being paid for the preferred stock and after giving effect to all amounts payable to the holders of preferred stock prior and in preference to the Stock pursuant to the liquidation preference provisions of the Company's certificate of incorporation or other applicable organizational documents; *provided, further,* that if the per-share price being paid for such preferred stock includes any rights to receive a proportionate share of any deferred consideration, earn-out, or escrow funds that may become available to the holders of preferred stock in connection with the transaction, such amounts shall be considered when determining the implied equity price of each share of Stock, but any portion of such amount included in the implied equity price of each share of Stock shall not be paid to the Minority Stockholder required to sell shares of Stock pursuant to this Section 8(b) unless and until the portions of such amount included in the price per share being paid for the preferred stock are paid to the holders of the preferred stock and only to the extent that the holders of the preferred stock have received all amounts payable to the holders of preferred stock prior and in preference to the Stock pursuant to the liquidation preference provisions of the Company's certificate of incorporation.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) To exercise the Drag-Along Right, the Dragging Stockholder shall give the Minority Stockholders a written notice (a "<u>Drag-Along Notice</u>") containing the proposed Per Share Drag-Along Purchase Price for each security proposed to be sold, terms of payment and other material terms and conditions of the Proposed Transferee's offer.

The Minority Stockholders shall thereafter be obligated to sell or vote (or act by written consent with respect to), as the case may be, all equity interests (including any Stock Equivalents) owned by the Minority Stockholders; *provided that* the sale to the Proposed Transferee is consummated within one hundred eighty (180) days after delivery of the Drag-Along Notice. If the sale, merger or other transaction contemplated by this Section 8(b) is not consummated within such 180-day period, then the Minority Stockholders shall no longer be obligated to sell such equity securities owned thereby pursuant to that specific Drag-Along Right but shall remain subject to the provisions of this Section 8(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Minority Stockholders shall execute and deliver such instruments of conveyance and transfer and take such other action, including executing any purchase agreement, merger agreement, indemnity agreement, escrow agreement or related documents, as may be reasonably required by the Dragging Stockholder or the Company in order to carry out the terms and provisions of this Section 8(b). At the closing of the proposed transaction, the Minority Stockholders shall deliver, against receipt of the consideration payable in such transaction, certificates representing the equity securities which the Minority Stockholders own, together with executed stock powers or other instruments of transfer acceptable to the Dragging Stockholder Without limiting the foregoing, in the event that the Dragging Stockholder, in connection with the transaction contemplated by such Drag-Along Right, appoint a stockholder representative (the "<u>Stockholder Representative</u>") under the applicable definitive transaction agreements, each Minority Stockholder shall, (x) consent to (i) the appointment of such Stockholder Representative, (ii) the establishment of any applicable escrow, expense or similar fund in connection with any indemnification or similar obligations, and (iii) the payment of such Minority Stockholder's pro rata portion (from the applicable escrow or expense fund or otherwise) of any and all reasonable fees and expenses to such Stockholder Representative in connection with such Stockholder Representative's services and duties in connection with such transaction and its related service as the representative of the stockholders, and (y) agree to not assert any claim or commence any suit against the Stockholder Representative or any other stockholder with respect to any action or inaction taken or failed to be taken by the Stockholder Representative in connection with its service as the Stockholder Representative, absent fraud or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Notwithstanding anything contained in this Section 8(b), in the event that all or a portion of the Per Share Drag-Along Purchase Price consists of securities and the sale of such securities to any Minority Stockholder would require either a registration under the Securities Act or the preparation of a disclosure document pursuant to Regulation D under the Securities Act (or any successor regulation) or a similar provision of any state securities law, then, at the option of the Dragging Stockholder, such Minority Stockholder may receive, in lieu of such securities, the fair market value of some or all of such securities in cash, as determined in good faith by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The rights provided in this Section 8(b) shall expire upon the IPO Date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Permitted Transfers</u>. Stock acquired upon issuance, vesting, exercise, or settlement of any Award may be transferred in connection with a Permitted Transfer; *provided, however,* that it shall be a condition of each such Permitted Transfer that (1) the transferee agrees to be bound by the terms of the Plan, the applicable Award Agreement, and, if requested by the Company, the stockholders' or similar agreement, as though no such transfer had taken place, and (2) the Participant has complied with all applicable laws in connection with such transfer. The Participant and the transferee shall execute any documents reasonably required by the Committee to effectuate such Permitted Transfer and be bound by the terms of the Plan, the applicable Award Agreement, and, if requested by the Company, the stockholders' or similar agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Grant of Irrevocable Proxy</u>. As a condition of the grant of any Award under the Plan, each Participant shall grant to the Company, acting jointly, the Participant's irrevocable proxy, and appoint the Company, or any designee or nominee of the Company, as the Participant's attorney-in-fact (with full power of substitution and resubstitution), for and in his or her name, place, and stead, to (1) vote or act by written consent with respect to the shares of Stock (whether or not vested) now or hereafter owned by the Participant (or any transferee), including the right to sign such Participant's name, as a stockholder, to any consent, certificate, or other document relating to the Company that applicable law may require, in connection with any and all matters (other than any amendment to the Plan that would require stockholder approval), including, without limitation, the election of directors and the sale or transfer of any shares of Stock received in connection with Awards granted hereunder (the "<u>Subject Shares</u>") as contemplated by this Section 8, and (2) take any and all action necessary to sell or otherwise transfer any Subject Shares as contemplated by this Section 8. Such proxy shall be coupled with an interest, and the Participant will take such further action or execute such other instruments as may be necessary to effectuate the intent of this proxy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Stockholders' or Similar Agreement</u>. Except as provided by the Committee in an Award Agreement or otherwise, in the event that a Participant is a party to any stockholders' or similar agreement with the Company containing similar provisions to those set forth in this Section 8, the provisions of this Section 8 shall continue to apply to such Participant and any shares of Stock acquired pursuant to any Award hereunder, and shall be in addition to, and not in lieu of, the terms and conditions of such stockholders' or similar agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **REPURCHASE RIGHTS UPON TERMINATION.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Company Repurchase Right</u>. If, prior to the Repurchase Right Lapse Date, a Participant undergoes a Termination with the Service Recipient for any reason, then at any time during the Repurchase Right Exercise Period, in addition to any repurchase right or obligation of the Company with respect to unvested shares of Restricted Stock as provided in Section 6 hereof, the Company shall have the right, but not the obligation, to repurchase all or any portion of the shares of Stock and Stock Equivalents received by the Participant pursuant to Awards granted hereunder at a per-share price equal to the Repurchase Price (the "<u>Repurchase Right</u>"). The Repurchase Right shall be exercisable upon written notice to the Participant indicating the number of shares of Stock and/or Stock Equivalents to be repurchased and the date on which the repurchase is to be effected, such date to be not more than thirty (30) days after the date of such notice; *provided, however,* that to the extent necessary or desirable to avoid triggering adverse accounting treatment, as determined by the Committee, the Company shall not exercise the Repurchase Right with respect to Stock acquired pursuant to an Award or Stock Equivalents prior to (1) the six (6) month anniversary of the date an Award not subject to exercise or deferred settlement vests or (2) the six (6) month anniversary of the date an Award that is subject to exercise or deferred settlement is exercised or settled. To the extent not otherwise held in book entry form by the Company, the certificates representing the shares of Stock and/or Stock Equivalents to be repurchased shall be delivered to the Company (or its assignee, as applicable) prior to the close of business on the date specified for the repurchase.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payment of Repurchase Price</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If the Company (or its assignee, as applicable) exercises the Repurchase Right following the Termination of a Participant other than (A) by the Service Recipient for Cause or (B) by such Participant's voluntary resignation, the aggregate Repurchase Price shall be paid in a lump sum at the time of repurchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Company (or its assignee, as applicable) exercises the Repurchase Right (other than to repurchase a Stock Equivalent intended to qualify as a "stock right" that does not provide for a "deferral of compensation" within the meaning of Section 409A of the Code) following the Termination of a Participant (A) by the Service Recipient for Cause or (B) by such Participant's voluntary resignation, the Company (or its assignee, as applicable) shall be permitted to issue a promissory note equal to the aggregate Repurchase Price in lieu of a cash payment; *provided, however,* that such promissory note shall have a maturity date that does not exceed three (3) years from the date of such repurchase, shall bear simple interest of not less than the Prime Rate in effect on the date of such repurchase, and shall be payable as to interest in equal monthly installments during the term of the note and as to principal on the maturity date; *provided, further,* that if the Company (or its assignee, as applicable) does not issue a promissory note to exercise such Repurchase Right, the aggregate Repurchase Price shall be paid in a lump sum at the time of repurchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delay of Repurchase</u>. Notwithstanding anything contained in this Section 9 to the contrary, in the event that any repurchase described herein would result in a default under any applicable financing documents of any member of the Company Group, or would otherwise be prohibited by applicable law (as applicable, a "<u>Prohibition Event</u>"), commencement of the applicable Repurchase Right Exercise Period shall be delayed until the Prohibition Event ceases to exist, but in no event shall such delay extend for more than eighteen (18) months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Participant Representations; Repayment Obligation</u>. In connection with any repurchase of shares of Stock or Stock Equivalents pursuant to this Section 9, the Company (or its assignee, as applicable) will be entitled to receive customary representations, warranties and releases from the Participant regarding the repurchase of such shares of Stock or Stock Equivalents as may be reasonably requested by the Company (or its assignee, as applicable), including, but not limited to, the representation that the Participant has good and marketable title to such shares of Stock or Stock Equivalents to be transferred free and clear of all liens, claims, and other encumbrances. If a Participant violates any restrictive covenant to which he or she is subject to with any member of the Company Group following the payment of the Repurchase Price, the Participant shall, promptly following demand from the Company (or its assignee, as applicable) and without prejudice to any other remedies available to the Company Group under applicable law in connection with such violation, repay to the Company (or its assignee, as applicable) an amount equal to the excess of (x) the Repurchase Price received by the Participant, and (y) the amount that would have been payable to the Participant had the Repurchase Right been exercised after such violation.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Failure to Deliver Certificates or Repurchase Agreement</u>. If a Participant (or any transferee) fails to deliver certificates representing the shares of Stock and/or Stock Equivalents to be repurchased or an agreement containing the representations, warranties and releases requested by the Company (or its assignee, as applicable) pursuant to Section 9(d) in a repurchase or similar agreement, in each case prior to the close of business on the date specified for the repurchase: (1) such shares of Stock and/or Stock Equivalents shall be deemed for all purposes (including the right to vote and receive payment for dividends) to have been transferred to the Company (or its assignee, as applicable); (2) to the extent such shares of Stock and/or Stock Equivalents are evidenced by certificates, such certificates shall be deemed cancelled; (3) the Company shall make an appropriate notation in its records to reflect the transfer of such shares of Stock and/or Stock Equivalents; and (4) the Participant (or any transferee) shall merely be an unsecured creditor of the Company (or its assignee, as applicable) with the right only to receive payment of the Repurchase Price, without interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **COMPETITIVE ACTIVITIES.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything contained in the Plan to the contrary and to the extent permitted by applicable law, except as otherwise provided by the Committee in an Award Agreement or otherwise, in the event that a Participant engages in any Competitive Activity during the term of such Participant's employment or service with the Service Recipient or during the six (6) month period following the Termination of such Participant for any reason, the Committee may determine, in its sole discretion, to (a) require all Awards held by such Participant to be immediately forfeited and returned to the Company without additional consideration, (b) require all shares of Stock acquired upon the issuance, vesting, exercise, or settlement of Awards within the twelve (12) month period prior to the date of such Competitive Activity to be immediately forfeited and returned to the Company without additional consideration, and (c) to the extent that such Participant received any profit from the sale of any Stock underlying an Award within the twelve (12) month period prior to the date of such Competitive Activity, require that such Participant promptly repay to the Company any profit received pursuant to such sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **ADJUSTMENT FOR RECAPITALIZATION, MERGER, ETC.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Capitalization Adjustments</u>. In the event of (1) changes in the outstanding Stock or in the capital structure of the Company by reason of stock dividends, stock splits, reverse stock splits, recapitalizations, reorganizations, mergers, amalgamations, consolidations, combinations, exchanges, or other relevant changes in capitalization occurring after the date of grant of any such Award (including any Corporate Event); (2) the declaration and payment of any extraordinary dividend in respect of shares of Stock, whether payable in the form of cash, stock, or any other form of consideration; or (3) any change in applicable laws or circumstances, in the case of clauses (1), (2) and (3) above, to the extent that the Committee in its sole discretion determines that such event results in or could reasonably be expected to result in any substantial dilution or enlargement of the rights intended to be granted to, or available for, Participants in the Plan, then the Committee shall: (A) equitably and proportionately adjust or substitute, as

------

determined by the Committee in its sole discretion, (w) the aggregate number of shares of Stock that may be delivered in connection with Awards (as set forth in Section 4 hereof), (x) the number of shares of Stock covered by each outstanding Award, (y) the price per share of Stock underlying each outstanding Award, and/or (z) the kind of a share of Stock or other consideration subject to each outstanding Award and available for future issuance pursuant to the Plan; (B) in respect of an outstanding Award, make one or more cash payments to the holder of an outstanding Award, which payment shall be subject to such terms and conditions (including timing of payment(s), vesting and forfeiture conditions) as the Committee may determine in its sole discretion, in an amount that the Committee determines in its sole discretion addresses the diminution in the value of such outstanding Award in connection with such event; or (C) any combination of clauses (A) and (B) above as determined appropriate by the Committee in its sole discretion. In no event shall any adjustments be made in connection with the conversion of one or more outstanding shares of preferred stock of the Company into shares of Stock. The Committee will make such adjustments, substitutions or payment, and its determination will be final, binding and conclusive. The Committee need not take the same action or actions with respect to all Awards or portions thereof or with respect to all Participants. The Committee may take different actions with respect to the vested and unvested portions of an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Corporate Events</u>. Notwithstanding the foregoing, except as provided by the Committee in an Award Agreement, Participant Agreement or otherwise, in connection with (1) a merger, amalgamation, or consolidation involving the Company in which the Company is not the surviving corporation, (2) a merger, amalgamation, or consolidation involving the Company in which the Company is the surviving corporation but the holders of shares of Stock receive securities of another corporation or other property or cash, (3) a Change in Control, or (4) the reorganization, dissolution or liquidation of the Company (each, a "<u>Corporate Event</u>"), all Awards outstanding on the effective date of such Corporate Event shall be treated in the manner described in the definitive transaction agreement (or, in the event that the Corporate Event does not entail a definitive agreement to which the Company is party, in the manner determined by the Committee in its sole discretion), which agreement may provide, without limitation, for one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The assumption or substitution of any or all Awards in connection with such Corporate Event, in which case the Awards shall be subject to the adjustment set forth in subsection (a) above, and to the extent that such Awards vest subject to the achievement of performance objectives or criteria, such objectives or criteria shall be adjusted appropriately to reflect the Corporate Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The acceleration of vesting of any or all Awards, subject to the consummation of such Corporate Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The cancellation of any or all Awards (whether vested or unvested) as of the consummation of such Corporate Event, together with the payment to the Participants holding vested Awards (including any Awards that would vest upon the Corporate Event but for such cancellation) so canceled of an amount in respect of cancellation based upon the per-share consideration being paid for the Stock in connection with such Corporate Event, less, in the case of Options and other Awards subject to exercise, the applicable exercise price (such amounts to be paid on substantially the same

------

schedule and subject to substantially the same terms and conditions as the consideration payable for the Stock in connection with the Corporate Event, unless otherwise determined by the Committee); *provided, however,* that holders of Options and other Awards subject to exercise shall be entitled to consideration in respect of cancellation of such Awards only if the per-share consideration less the applicable exercise price is greater than zero dollars ($0), and to the extent that the per-share consideration is less than or equal to the applicable exercise price, such Awards shall be canceled for no consideration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The cancellation of any or all Options and other Awards subject to exercise (whether vested or unvested) as of the consummation of such Corporate Event; *provided,* that, all Options and other Awards to be so cancelled pursuant to this paragraph (4) shall first become exercisable for a period of at least ten (10) days prior to such Corporate Event, with any exercise during such period of any unvested Options or other Awards to be (A) contingent upon and subject to the occurrence of the Corporate Event, and (B) effectuated by such means as are approved by the Committee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The replacement of any or all Awards with a cash incentive program that preserves the value of the Awards so replaced (determined as of the consummation of the Corporate Event), with subsequent payment of cash incentives subject to the same vesting conditions as applicable to the Awards so replaced and payment to be made within thirty (30) days of the applicable vesting date (or such later date on which the applicable consideration is payable for the Stock in connection with the Corporate Event, unless otherwise determined by the Committee).

Payments to holders pursuant to paragraph (3) above shall be made in cash or, in the sole discretion of the Committee, in the form of such other consideration necessary for a Participant to receive property, cash, or securities (or a combination thereof) as such Participant would have been entitled to receive upon the occurrence of the transaction if the Participant had been, immediately prior to such transaction, the holder of the number of shares of Stock covered by the Award at such time (less any applicable exercise price). In addition, in connection with any Corporate Event, prior to any payment or adjustment contemplated under this subsection (b), the Committee may require a Participant to (A) represent and warrant as to the unencumbered title to his or her Awards, (B) bear such Participant's pro-rata share of any post-closing indemnity obligations and be subject to the same post-closing purchase price adjustments, escrow terms, offset rights, holdback terms, and similar conditions as the other holders of Stock, and (C) deliver customary transfer documentation as reasonably determined by the Committee.

The Committee need not take the same action or actions with respect to all Awards or portions thereof or with respect to all Participants. The Committee may take different actions with respect to the vested and unvested portions of an Award.

The Committee shall also have discretion to suspend the right of a Participant to exercise outstanding Awards during a limited period of time preceding the consummation of a Corporate Event if the Committee determines, in its sole discretion, that such suspension is administratively necessary or advisable to facilitate the consummation of the Corporate Event.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Fractional Shares</u>. Any adjustment provided under this Section 11 may, in the Committee's discretion, provide for the elimination of any fractional share that might otherwise become subject to an Award. No cash settlements shall be made with respect to fractional shares so eliminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **USE OF PROCEEDS.** 

The proceeds received from the sale of Stock pursuant to the Plan shall be used for general corporate purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **RIGHTS AND PRIVILEGES AS A STOCKHOLDER.** 

Except as otherwise specifically provided in the Plan, no person shall be entitled to the rights and privileges of Stock ownership in respect of shares of Stock that are subject to Awards hereunder until such shares have been issued to that person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **EMPLOYMENT OR SERVICE RIGHTS.** 

No individual shall have any claim or right to be granted an Award under the Plan or, having been selected for the grant of an Award, to be selected for the grant of any other Award. Neither the Plan nor any action taken hereunder shall be construed as giving any individual any right to be retained in the employ or service of any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **COMPLIANCE WITH LAWS.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Delivery of shares of Stock</u>. The obligation of the Company to deliver Stock upon issuance, vesting, exercise, or settlement of any Award shall be subject to all applicable laws, rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from offering to sell or selling, any shares of Stock pursuant to an Award unless such shares have been properly registered for sale with the U.S. Securities and Exchange Commission pursuant to the Securities Act and any applicable state agency (or with a similar non–United States regulatory agency pursuant to a similar law or regulation) or unless the Company has received an opinion of counsel, satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation to register for sale or resale under the Securities Act or any applicable state laws any of the shares of Stock to be offered or sold under the Plan or any shares of Stock to be issued upon exercise or settlement of Awards. If the shares of Stock offered for sale or sold under the Plan are offered or sold pursuant to an exemption from registration under the Securities Act, the Company may restrict the transfer of such shares and may legend the Stock certificates representing such shares in such manner as it deems advisable to ensure the availability of any such exemption.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Investment Assurances</u>. The Committee may require a Participant, as a condition of exercising or acquiring Stock under any Award, (1) to give written assurances satisfactory to the Committee as to the Participant's knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Committee who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Award; and (2) to give written assurances satisfactory to the Committee stating that the Participant is acquiring Stock subject to the Award for the Participant's own account and not with any present intention of selling or otherwise distributing the Stock. The foregoing requirements, and any assurances given pursuant to such requirements, will be inoperative (A) following the IPO Date, or (B) if, as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **WITHHOLDING OBLIGATIONS.** 

As a condition to the issuance, vesting, exercise, or settlement of any Award (or upon the making of an election under Section 83(b) of the Code), the Committee may require that a Participant satisfy, through deduction or withholding from any payment of any kind otherwise due to the Participant, or through such other arrangements as are satisfactory to the Committee, the amount of all federal, state, and local income and other taxes of any kind required or permitted to be withheld in connection with such issuance, vesting, exercise, or settlement (or election). The Committee, in its discretion, may permit shares of Stock to be used to satisfy tax withholding requirements, and such shares shall be valued at their Fair Market Value as of the issuance, vesting, exercise, or settlement date of the Award, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **AMENDMENT OF THE PLAN OR AWARDS.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendment of Plan</u>. The Board may amend the Plan at any time and from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment of Awards</u>. The Board or the Committee may amend the terms of any one or more Awards or any Award Agreement at any time and from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Addenda</u>. The Board may approve such addenda to the Plan as it may consider necessary or appropriate for the purpose of granting Awards to Eligible Persons, which Awards may contain such terms and conditions as the Board deems necessary or appropriate to accommodate differences in local law, tax policy or custom, which, if so required under applicable laws, may deviate from the terms and conditions set forth in the Plan. The terms of any such addenda shall supersede the terms of the Plan to the extent necessary to accommodate such differences but shall not otherwise affect the terms of the Plan as in effect for any other purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Stockholder Approval; No Material Impairment</u>. Notwithstanding anything herein to the contrary, no amendment to the Plan or any Award shall be effective without stockholder approval to the extent that such approval is required pursuant to applicable law or the applicable rules of each national securities exchange on which the Stock is listed. Additionally, no amendment to the Plan or any Award shall materially and disproportionately impair a Participant's rights under any Award unless the Participant consents in writing (it being understood that no action taken by the Board or the Committee that is expressly permitted under the Plan, including, without limitation, any actions described in Section 11 hereof, shall constitute an amendment to the Plan or an Award for such purpose). Notwithstanding the foregoing, subject to

------

the limitations of applicable law, if any, and without an affected Participant's consent, the Board or the Committee may (i) amend the terms of the Plan or any one or more Awards from time to time as necessary to bring such Awards into compliance with applicable law, including, without limitation, Section 409A of the Code, or (ii) terminate the deferral of any Award at any time, in its sole discretion, in accordance with the provisions of Treas. Reg. 1.409A-3(j)(4)(ix).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Repricing of Awards Without Stockholder Approval</u>. The repricing of Awards shall be expressly permitted without stockholder approval. For this purpose, a "repricing" means any of the following (or any other action that has the same effect as any of the following): (1) changing the terms of an Award to lower its exercise price (other than on account of capital adjustments resulting from share splits, etc., as described in Section 11(a) hereof), (2) any other action that is treated as a repricing under generally accepted accounting principles, and (3) repurchasing for cash or canceling an Award in exchange for another Award at a time when its exercise price is greater than the Fair Market Value of the underlying Stock, unless the cancellation and exchange occurs in connection with an event set forth in Section 11(b) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything herein to the contrary, in the event that the Committee determines, within thirty (30) days following a Participant's Termination and subject to any Participant consent rights set forth in Section 18(d) above, to amend the term of any Awards held by such Participant immediately prior to such Termination (including, but not limitation, to provide for additional or continued vesting), such amendment shall be deemed to have occurred immediately prior to the such Termination and the terms of the Award as so amended by the Committee shall supersede the default provisions set forth in this Plan and any Award Agreement with respect to the treatment of such Award in connection with such Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **TERMINATION OR SUSPENSION OF THE PLAN.** 

The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the latest to occur of (a) the date the Plan is adopted by the Board, (b) the date the Plan is approved by the Company's stockholders, to the extent applicable, (c) the most recent date on which an increase to the number of shares of Stock reserved for issuance pursuant to Section 44(a) hereof is adopted by the Board, and (d) the most recent date on which an increase to the number of shares of Stock reserved for issuance pursuant to Section 44(a) hereof is approved by the Company's stockholders, to the extent applicable. No Awards may be granted under the Plan while the Plan is suspended or after it is terminated; *provided, however,* that following any suspension or termination of the Plan, the Plan shall remain in effect for the purpose of governing all Awards then outstanding hereunder until such time as all Awards under the Plan have been terminated, forfeited, or otherwise canceled, or earned, exercised, settled, or otherwise paid out in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **EFFECTIVE DATE OF THE PLAN.** 

The Plan is effective as of the Effective Date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **MISCELLANEOUS.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Certificates</u>. Stock acquired pursuant to Awards granted under the Plan may be evidenced in such a manner as the Committee shall determine. If certificates representing Stock are registered in the name of the Participant, the Committee may require that (1) such certificates bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Stock, (2) the Company retain physical possession of the certificates, and (3) the Participant deliver a stock power to the Company, endorsed in blank, relating to the Stock. Notwithstanding the foregoing, unless otherwise determined by the Committee, in its sole discretion, the Stock shall be held in book-entry form rather than delivered to the Participant pending the release of any applicable restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Other Benefits. No Award granted or paid out under the Plan shall be deemed compensation for purposes of computing benefits under any retirement plan of any member of the Company Group nor affect any benefits under any other benefit plan now or subsequently in effect under which the availability or amount of benefits is related to the level of compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Corporate Action Constituting Grant of Awards</u>. Corporate action constituting a grant by the Company of an Award to any Participant will be deemed completed as of the date of such corporate action, unless otherwise determined by the Committee, regardless of when the instrument, certificate, or letter evidencing the Award is communicated to, or actually received or accepted by, the Participant. In the event that the corporate records (e.*g.*, Committee consents, resolutions or minutes) documenting the corporate action constituting the grant contain terms (e.*g.*, exercise price, vesting schedule or number of shares of Stock) that are inconsistent with those in the Award Agreement as a result of a clerical error in connection with the preparation of the Award Agreement, the corporate records will control and the Participant will have no legally binding right to the incorrect term in the Award Agreement. Unless otherwise determined by the Committee, all Award Agreements must be signed by the applicable Eligible Person and returned to the Company within sixty (60) days following the date the Award Agreement is delivered to the applicable Eligible Person, and failure of an applicable Eligible Person to timely execute and return an Award Agreement to the Company will result in an immediate forfeiture of such Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Clawback/Recoupment Policy</u>. Notwithstanding anything contained herein to the contrary, all Awards granted under the Plan shall be and remain subject to any incentive compensation clawback or recoupment policy currently in effect or as may be adopted by the Board (or a committee or subcommittee of the Board) and, in each case, as may be amended from time to time. No such policy, adoption, or amendment shall in any event require the prior consent of any Participant. No recovery of compensation under such a clawback policy will be an event giving rise to a right to resign for "good reason" or "constructive termination" (or similar term) under any agreement with any member of the Company Group. In the event that an Award is subject to more than one such policy, the policy with the most restrictive clawback or recoupment provisions shall govern such Award, subject to applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Participants Outside of the United States</u>. The Committee may modify the terms of any Award under the Plan made to or held by a Participant who is then a resident, or is primarily employed or providing services, outside of the United States in any manner deemed by the Committee to be necessary or appropriate in order that such Award shall conform to laws, regulations, and customs of the country in which the Participant is then a resident or primarily employed or providing services, or so that the value and other benefits of the Award to the Participant, as affected by non–United States tax laws and other restrictions applicable as a result

------

of the Participant's residence, employment, or providing services abroad, shall be comparable to the value of such Award to a Participant who is a resident, or is primarily employed or providing services, in the United States. An Award may be modified under this Section 21(e) in a manner that is inconsistent with the express terms of the Plan, so long as such modifications will not contravene any applicable law or regulation. Additionally, the Committee may adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Eligible Persons who are non–United States nationals or are primarily employed or providing services outside the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Change in Time Commitment</u>. In the event a Participant's regular level of time commitment in the performance of his or her services for the Company or any member of the Company Group is reduced (for example, and without limitation, if the Participant is an employee of the Company and the employee has a change in status from a full-time employee to a part-time employee) after the date of grant of any Award to the Participant, the Committee has the right, in its sole discretion, to (i) make a corresponding reduction in the number of shares of Stock subject to any portion of such Award that is scheduled to vest or become payable after the date of such change in time commitment, and (ii) in lieu of or in combination with such a reduction, extend the vesting or payment schedule applicable to such Award. In the event of any such reduction, the Participant will have no right with respect to any portion of the Award that is so reduced or extended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Electronic Delivery</u>. Any reference herein to a "written" agreement or document will include any agreement or document delivered electronically or posted on the Company's intranet (or other shared electronic medium controlled by the Company to which the Participant has access).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Non-Exempt Employees</u>. If an Option is granted to an employee of any member of the Company Group in the United States who is a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, the Option will not be first exercisable for any shares of Stock until at least six (6) months following the date of grant of the Option (although the Option may vest prior to such date). Consistent with the provisions of the Worker Economic Opportunity Act, (1) if such non-exempt employee of any member of the Company Group dies or suffers a Disability, (2) upon a Corporate Event in which such Option is not assumed, continued, or substituted, (3) upon a Change in Control, or (4) upon the Participant's retirement (as such term may be defined in the applicable Award Agreement or a Participant Agreement, or, if no such definition exists, in accordance with the Company's then current employment policies and guidelines), the vested portion of any Options held by such employee may be exercised earlier than six (6) months following the date of grant. The foregoing provision is intended to operate so that any income derived by a non-exempt employee in connection with the exercise or vesting of an Option will be exempt from his or her regular rate of pay. To the extent permitted and/or required for compliance with the Worker Economic Opportunity Act to ensure that any income derived by a non-exempt employee in connection with the exercise, vesting or issuance of any shares under any other Award will be exempt from the employee's regular rate of pay, the provisions of this Section 21(h) will apply to all Awards.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Data Privacy</u>. As a condition of receipt of any Award, each Participant explicitly and unambiguously consents to the collection, use, and transfer, in electronic or other form, of personal data as described in this subsection by and among, as applicable, the Company Group for the exclusive purpose of implementing, administering, and managing the Plan and Awards and the Participant's participation in the Plan. In furtherance of such implementation, administration, and management, the Company Group may hold certain personal information about a Participant, including, but not limited to, the Participant's name, home address, telephone number, date of birth, social security or insurance number or other identification number, salary, nationality, job title(s), information regarding any securities of any member of the Company Group held by such Participant, and details of all Awards (the "<u>Data</u>"). In addition to transferring the Data amongst themselves as necessary for the purpose of implementation, administration, and management of the Plan and Awards and the Participant's participation in the Plan, each member of the Company Group may transfer the Data to any third parties assisting the Company in the implementation, administration, and management of the Plan and Awards and the Participant's participation in the Plan. Recipients of the Data may be located in the Participant's country or elsewhere, and the Participant's country and any given recipient's country may have different data privacy laws and protections. By accepting an Award, each Participant authorizes such recipients to receive, possess, use, retain, and transfer the Data, in electronic or other form, for the purposes of assisting the Company in the implementation, administration, and management of the Plan and Awards and the Participant's participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom the Company or the Participant may elect to deposit any shares of Stock. The Data related to a Participant will be held only as long as is necessary to implement, administer, and manage the Plan and Awards and the Participant's participation in the Plan. A Participant may, at any time, view the Data held by the Company with respect to such Participant, request additional information about the storage and processing of the Data with respect to such Participant, recommend any necessary corrections to the Data with respect to the Participant, or refuse or withdraw the consents herein in writing, in any case without cost, by contacting his or her local human resources representative. The Company may cancel the Participant's eligibility to participate in the Plan, and, in the Committee's discretion, the Participant may forfeit any outstanding Awards if the Participant refuses or withdraws the consents described herein. For more information on the consequences of refusal to consent or withdrawal of consent, Participants may contact their local human resources representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No Liability of Committee Members</u>. No member of the Committee (nor any employee or director delegated authority pursuant to Section 3(b) hereof) shall be personally liable by reason of any contract or other instrument executed by such member or on his or her behalf in his or her capacity as a member of the Committee or for any mistake of judgment made in good faith, and the Company shall indemnify and hold harmless each member of the Committee and each other employee, officer, or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be allocated or delegated, against all costs and expenses (including counsel fees) and liabilities (including sums paid in settlement of a claim) arising out of any act or omission to act in connection with the Plan, unless arising out of such person's own fraud or willful misconduct; *provided, however,* that approval of the Board shall be required for the payment of any amount in settlement of a claim against any such person. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company's certificate or articles of incorporation or bylaws, each as may be amended from time to time, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Payments Following Accidents or Illness</u>. If the Committee shall find that any person to whom any amount is payable under the Plan is unable to care for his or her affairs because of illness or accident, or is a minor, or has died, then any payment due to such person or his or her estate (unless a prior claim therefor has been made by a duly appointed legal representative) may, if the Committee so directs the Company, be paid to his or her spouse, child, relative, an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Governing Law</u>. The Plan shall be governed by and construed in accordance with the internal laws of the State of Florida without reference to the principles of conflicts of laws thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Arbitration</u>. All disputes and claims of any nature that a Participant (or such Participant's transferee or estate) may have against the Company or any other member of the Company Group arising out of or in any way related to the Plan or any Award Agreement must be submitted solely and exclusively to binding arbitration in accordance with the then-current employment arbitration rules and procedures of the American Arbitration Association (AAA) to be held in Tampa, Florida. All information regarding the dispute or claim and arbitration proceedings, including any settlement, shall not be disclosed by the Participant or any arbitrator to any third party without the written consent of the Company, except with respect to judicial enforcement of any arbitration award. Any arbitration claim must be brought solely in the Participant's (or such Participant's transferee's or estate's) individual capacity and not as a claimant or class member (or similar capacity) in any purported multiple-claimant, class, collective, representative or similar proceeding, and the arbitrator may not permit joinder of any multiple claimants and their claims without the express written consent of the Company. Any arbitrator selected to adjudicate the claim must be knowledgeable in the industry standards and practices, and, by signing an Award Agreement, each Participant will be deemed to agree that any claims pursuant to the Plan or an Award Agreement is inherently a matter involving interstate commerce and thus, notwithstanding the choice of law provision included herein, the Federal Arbitration Act shall govern the interpretation and enforcement of this arbitration provision. The arbitrator shall not be permitted to award any punitive or similar damages, but may award attorney's fees and expenses to the prevailing party in any arbitration. Any decision by the arbitrator shall be binding on all parties to the arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Statute of Limitations</u>. A Participant or any other person filing a claim for benefits under the Plan must file the claim within one (1) year of the date the Participant or other person knew or should have known of the facts giving rise to the claim. This one-year statute of limitations will apply in any forum where a Participant or any other person may file a claim and, unless the Company waives the time limits set forth above in its sole discretion, any claim not brought within the time periods specified shall be waived and forever barred.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Funding</u>. No provision of the Plan shall require any member of the Company Group, for the purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall any member of the Company Group be required to maintain separate bank accounts, books, records, or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights under the Plan other than as unsecured general creditors of the Company, except that insofar as they may have become entitled to payment of additional compensation by performance of services, they shall have the same rights as other employees and service providers under general law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Reliance on Reports</u>. Each member of the Committee and each member of the Board shall be fully justified in relying, acting, or failing to act, and shall not be liable for having so relied, acted, or failed to act, in good faith, upon any report made by any independent public accountant of any member of the Company Group and upon any other information furnished in connection with the Plan by any person or persons other than such member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Titles and Headings</u>. The titles and headings of the sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.

**\* \* \*** 

------

**APPENDIX A** 

**TO** 

**SAFEPOINT HOLDINGS, INC.** 

**2024 STOCK INCENTIVE PLAN** 

**(for California residents only, to the extent required by** 

**California Corporations Code Section 25102(o))** 

This Appendix A to the Safepoint Holdings, Inc. 2024 Stock Incentive Plan (the "<u>Plan</u>") shall apply only to the Participants who are residents of the State of California and who are receiving an Award under the Plan in reliance on California Corporations Code Section 25102(o) only. Capitalized terms contained herein shall have the same meanings given to them in the Plan, unless otherwise provided by this Appendix A. Notwithstanding any provisions contained in the Plan to the contrary and to the extent required by applicable laws, the following terms shall apply to all Awards granted to residents of the State of California, until the earlier to occur of (i) the IPO Date, (ii) such time as the Committee amends this Appendix A or (iii) at such time as the Committee otherwise provides.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term of each Option shall be stated in the Option Agreement, *provided, however,* that the exercise period shall not be more than one hundred twenty (120) months from the date of grant thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless determined otherwise by the Committee, Awards may not be sold, transferred, pledged, assigned, hypothecated, or otherwise encumbered or disposed of in any manner other than by will or by the laws of descent and distribution, and may be exercised, during the lifetime of the Participant, only by the Participant. If the Committee makes an Award transferable, such Award may only be transferred (i) by will, (ii) by the laws of descent and distribution, (iii) to a revocable trust, or (iv) as permitted by Rule 701 of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of the Termination of a Participant prior to the Expiration Date for any reason other than (i) by the Service Recipient for Cause or (ii) by reason of the Participant's death or Disability, such Participant may exercise his or her Options within such period of time as specified in the Plan, which period shall not be less than thirty (30) days following the date of such Termination, to the extent that such Options are exercisable on the date of such Termination (but in no event later than the Expiration Date of such Options as set forth in the Award Agreement and/or the Plan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event of the Termination of a Participant prior to the Expiration Date by reason of the Participant's Disability, the Participant may exercise his or her Options within such period of time as specified in the Plan, which period shall not be less than six (6) months following the date of such Termination, to the extent such Options are exercisable on the date of such Termination (but in no event later than the Expiration Date of such Options as set forth in the Award Agreement and/or the Plan).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event of the Termination of a Participant prior to the Expiration Date by reason of the Participant's death, any Options held by the Participant as of the date of such Termination may be exercised within such period of time as specified in the Plan, which period shall not be less than six (6) months following the date of such Termination, to the extent such Options are exercisable on the date of such Termination (but in no event later than the Expiration Date of such Options as set forth in the Award Agreement and/or the Plan) by the person or persons to whom the Participant's rights under such Options pass by will or by the applicable laws of descent and distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No Award shall be granted, nor shall any shares of Stock be issued upon the exercise, vesting or settlement of any Award, to a resident of California more than ten (10) years after the earlier of the date of adoption of the Plan or the date the Plan is approved by the Company's security holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Plan must be approved by a majority of the outstanding securities of the Company entitled to vote by the later of (1) within twelve (12) months before or after the date the Plan is adopted or (2) prior to or within twelve (12) months of the granting of any Option or issuance of any security under the Plan in California. Any Option granted to any person in California that is exercised before security holder approval is obtained and any issuance of securities purchased before security holder approval is obtained must be rescinded if security holder approval is not obtained in the manner described in the preceding sentence. Such securities shall not be counted in determining whether such approval is obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) In the event of a stock split, reverse stock split, stock dividend, recapitalization, combination, reclassification or other distribution of the Company's equity securities without the receipt of consideration by the Company, of or on the Company's class of securities subject to the purchase right or underlying an Option, the Committee will make a proportionate adjustment of the number of securities purchasable under an Award and the exercise price thereof under an Option; *provided, however,* that the Committee will make such proportionate adjustments to an Award as required by Section 25102(o) of the California Corporations Code to the extent the Company is relying upon the exemption afforded thereby with respect to the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) This Appendix A shall be deemed to be part of the Plan and the Committee shall have the authority to amend this Appendix A in accordance with Section 18 of the Plan.

**\* \* \***

## Exhibit 10.9

**Exhibit 10.9** 

**OPTION GRANT NOTICE AND AGREEMENT** 

Safepoint Holdings, Inc. (the "<u>Company</u>"), pursuant to its 2024 Stock Incentive Plan (as may be amended, restated or otherwise modified from time to time, the "<u>Plan</u>"), hereby grants to Holder the number of Options (the "<u>Options</u>") set forth below, each Option representing the right to purchase one share of Stock at the applicable Exercise Price (set forth below). The Options are subject to all of the terms and conditions set forth in this Option Grant Notice and Agreement (this "<u>Award Agreement</u>"), as well as all of the terms and conditions of the Plan, all of which are incorporated herein in their entirety. To the extent that any provisions herein (or portion thereof) conflicts with any provision of the Plan, the Plan shall prevail and control. Capitalized terms not otherwise defined herein shall have the same meaning as set forth in the Plan.

---

| | |
|:---|:---|
| **Holder**: | [•] |
| **Date of Grant**: | November __, 2025 |
| **Vesting Commencement <br>Date**: | November __, 2025 |
| **Number of Options**: | [•] |
| **Exercise Price**: | $[1,078.54] [1,353.46] [1.917.40] [2,421.98] |
| **Expiration Date**: | November __, 2035 |
| **Type of Option**: | Nonqualified Stock Option |
| **Vesting Schedule**: | Provided that Holder has not undergone a Termination prior to the applicable vesting date, twenty-five percent (25%) of the Options shall vest on each of the first, second, third and fourth anniversaries of the Vesting Commencement Date. |
| **Exercise of Options**: | To exercise vested Options, Holder (or his, her or its authorized representative) must give written notice to the Company, using the form of Option Exercise Notice attached hereto as <u>Exhibit A</u>, stating the number of Options which he, she or it intends to exercise. The Company will issue the shares of Stock with respect to which the Options are exercised upon payment of the shares of Stock acquired in accordance with Section 5(d) of the Plan, which Section 5(d) is incorporated herein by reference and made a part hereof; *provided*, *however*, that if Holder wishes to use any method of exercise other than in immediately available funds in United States dollars, or by certified or bank cashier's check, Holder shall have received the prior written approval of the Committee or its designee approving such method of exercise. |

---

------

---

| | |
|:---|:---|
|  | Upon exercise of Options, Holder will be required to satisfy applicable withholding tax obligations as provided in Section 16 of the Plan. |
| **Termination**: | Section 5(g) of the Plan regarding treatment of Options upon Termination is incorporated herein by reference and made a part hereof. Following any such Termination, shares of Stock acquired upon exercise of any Options shall remain subject to Section 9 of the Plan. |
| **Transfer Restrictions;**<br>**Voting Proxy**: | The transfer restrictions described in Section 8 of the Plan are incorporated herein by reference and made a part hereof. As a condition of the grant of Options hereunder, Holder hereby grants to the Company Holder's irrevocable proxy, and appoints the Company, or any designee or nominee of the Company, as Holder's attorney-in-fact (with full power of substitution and resubstitution), for and in its name, place, and stead, to (i) vote or act by written consent with respect to the shares of Stock (whether or not vested) now or hereafter owned by Holder (or any transferee), including the right to sign Holder's name, as a stockholder, to any consent, certificate, or other document relating to the Company that applicable law may require, in connection with any and all matters (other than any amendment to the Plan that would require stockholder approval), including, without limitation, the election of directors and the sale or transfer of any Subject Shares as contemplated in Section 8 of the Plan, and (ii) take any and all action necessary to sell or otherwise transfer any Subject Shares as contemplated by Section 8 of the Plan. This proxy shall be coupled with an interest, and Holder agrees to take such further action or execute such other instruments as may be necessary to effectuate the intent of this proxy. In the event that any or all provisions of the proxy described hereunder are determined to be unenforceable, Holder shall grant a proxy that, to the fullest extent permitted by applicable law, preserves the intent of and provides the Company with substantially the same benefits of the proxy described hereunder. The proxy described hereunder shall terminate upon the IPO Date. For so long as that certain Voting Committee Agreement, dated May 2, 2023, by and among David Flitman, Steven Hoffman and Jennifer Cotugno remains in effect, the Voting Committee (as defined therein) will have the power to exercise the rights granted to the Company in this paragraph with respect to the unvested shares of Stock in accordance with the terms and conditions of such agreement. |

---

------

---

| | |
|:---|:---|
| **Joinder to Shareholders' Agreement**: | From and after the date hereof, Holder hereby agrees to be bound by the terms and provisions of that certain Shareholders' Agreement by and between the Company and the shareholders party thereto, dated as of July 1, 2015, as amended on April 28, 2023 and as the same may be further amended, restated and/or otherwise modified from time to time (the "<u>Shareholders' Agreement</u>") as if Holder were an original signatory thereto. As a condition to the issuance of any shares of Stock upon exercise of the Options granted hereby, Holder shall execute such additional documents as the Company may reasonably request to effectuate Holder's joinder to the Shareholders' Agreement. |
| **Restrictive Covenant Agreement:** | As a condition of the grant of Options hereunder, Holder acknowledges and reaffirms his, her or its obligations and restrictions set forth in that certain Restrictive Covenant Agreement, dated as of [•], 2024 (the "<u>RCA</u>"). Holder acknowledges and agrees that this Award Agreement and the RCA will be considered separate contracts, and the RCA will survive the termination of this Award Agreement for any reason. |
| **Additional Terms**: | Options shall be subject to the following additional terms: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Options shall be exercisable in whole shares of Stock only.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Each Option shall cease to be exercisable as to any share of Stock when Holder purchases the share of Stock or when the Option otherwise expires or is forfeited.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • The shares of Stock issued upon the exercise of any Options granted hereunder shall be registered in Holder's name on the books of the Company during the Lock-Up Period and for such additional time as the Committee determines appropriate in its reasonable discretion. Any certificates representing the shares of Stock delivered to Holder shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such shares are listed, and any applicable federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions as the Committee deems appropriate.<br>|

---

------

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; • Holder shall be the record owner of the shares of Stock issued in respect of the Options, and as record owner shall generally be entitled to all rights of a stockholder with respect to the shares of Stock issued in respect of the Options.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • This Award Agreement does not confer upon Holder any right to continue as an employee or service provider of the Service Recipient or any other member of the Company Group.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • This Award Agreement shall be construed and interpreted in accordance with the laws of the State of Florida, without regard to the principles of conflicts of law thereof.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • Holder and the Company acknowledge that the Options are intended to be exempt from Sections 409A and 457A of the Code, with the Exercise Price intended to be at least equal to the Fair Market Value per share of Stock on the Date of Grant. Since the Stock is not traded on an established securities market, the Exercise Price has been based upon the determination of Fair Market Value by the Committee in a manner consistent with the terms of the Plan. Holder acknowledges that there is no guarantee that the Internal Revenue Service will agree with this valuation, and agrees not to make any claim against the Company, the Committee, the Company's officers or employees in the event that the Internal Revenue Service or any other person, entity or agency asserts that the valuation was too low or that the Options are not otherwise exempt from Section 409A of the Code.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • Holder agrees that the Company may deliver by email all documents relating to the Plan or the Options (including, without limitation, a copy of the Plan) and all other documents that the Company is required to deliver to its security holders (including, without limitation, disclosures that may be required by the Securities and Exchange Commission). Holder also agrees that the Company may deliver these documents by posting them on a website maintained by the Company or by a third party under contract with the Company. If the Company posts these documents on a website, it shall notify Holder by email or such other reasonable manner as then determined by the Company.<br>|

---

------

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; • This Award Agreement and the Plan constitute the entire understanding and agreement of the parties hereto and supersede all prior negotiations, discussions, correspondence, communications, understandings, and agreements (whether oral or written and whether express or implied) between the Company and Holder relating to the subject matter of this Award Agreement. Without limiting the foregoing, to the extent Holder has entered into an employment or similar agreement with the Company or any of its affiliates, and the terms noted in such employment or similar agreement are inconsistent with or conflict with this Award Agreement, then the terms of this Award Agreement will supersede and be deemed to amend and modify the inconsistent or conflicting terms set forth in such employment or similar agreement.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • If Holder is married on the Date of Grant, the grant of the Options hereunder is conditional upon, and will be effective only after, Holder's spouse has duly executed the spousal consent on the signature page hereto or in a form acceptable to the Company, with an effective date as of the Date of Grant. If, at any time subsequent to the Date of Grant, Holder becomes legally married (whether in the first instance or to a different spouse), Holder shall cause Holder's spouse to execute and deliver to the Company a spousal consent in a form acceptable to the Company. Holder's failure to deliver the Company an executed spousal consent in a form acceptable to the Company at any time when Holder would otherwise be required to deliver such consent shall constitute Holder's continuing representation and warranty that Holder is not legally married as of such date (the breach of which would constitute a material breach of this Award Agreement and shall cause the Options granted hereunder to be immediately null and void).<br>|

---

------

---

| | |
|:---|:---|
| **Representations and**<br>**Warranties of**<br>**Holder**: | Holder hereby represents and warrants to the Company in connection with the grant of the Options hereunder, and the issuance of any shares of Stock upon exercise of such Options that: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Holder understands that the Stock has not been registered under the Securities Act, nor qualified under any state securities laws, and that it is being offered and sold pursuant to an exemption from such registration and qualification based in part upon Holder's representations contained herein; the Stock is being issued to Holder hereunder in reliance upon the exemption from such registration provided by Section 4(a)(2) of the Securities Act for transactions by an issuer not involving any public offering;<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Holder is an "accredited investor" as such term is defined in Rule 501(a) of the Securities Act and has such knowledge and experience in financial and business matters that Holder is capable of evaluating the merits and risks of the investment contemplated by this Award Agreement; and Holder is able to bear the economic risk of this investment in the Company (including a complete loss of this investment);<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Except as specifically provided herein or in the Plan, Holder has no contract, undertaking, understanding, agreement or arrangement, formal or informal, with any person to sell, transfer or pledge all or any portion of his, her or its Stock, and has no current plans to enter into any such contract, undertaking, understanding, agreement or arrangement;<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Holder has not seen, received, been presented with, or been solicited by any leaflet, public promotional meeting, article or any other form of advertising or general solicitation as to the Company's sale to Holder of his, her or its Stock;<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Holder is familiar with the business and operations of the Company and has been afforded an opportunity to ask such questions of the Company's agents, accountants and other representatives concerning the Company's proposed business, operations, financial condition, assets, liabilities and other relevant matters as he, she or it has deemed necessary or desirable in order to evaluate the merits and risks of the investment contemplated herein;<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Holder has been informed that the shares of Stock are restricted securities under the Securities Act and may not be resold or transferred unless the shares of Stock are first registered under the federal securities laws or unless an exemption from such registration is available; and<br>|

---

------

&nbsp;&nbsp;&nbsp;&nbsp; • Holder is prepared to hold the shares of Stock for an indefinite period and that Holder is aware that Rule 144 as promulgated under the Securities Act, which exempts certain resales of restricted securities, is not presently available to exempt the resale of the shares of Stock from the registration requirements of the Securities Act.<br>

**\* \* \*** 

------

**THE UNDERSIGNED HOLDER ACKNOWLEDGES RECEIPT OF THIS AWARD AGREEMENT AND THE PLAN, AND, AS AN EXPRESS CONDITION TO THE GRANT OF OPTIONS UNDER THIS AWARD AGREEMENT, AGREES TO BE BOUND BY THE TERMS OF BOTH THIS AWARD AGREEMENT AND THE PLAN.** 

---

| | |
|:---|:---|
| SAFEPOINT HOLDINGS, INC. | HOLDER |
| By: |  |
| Signature | Signature |
| Title: | Print Name: |
| Date: | Date: |

---

**SPOUSAL CONSENT** 

To the extent that Holder's spouse and Holder are domiciled in Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin, or are otherwise entitled to the benefits of the statutes of such states, Holder's spouse indicates by the execution of this Award Agreement his or her consent to be bound by the terms herein as to his or her interests, whether as community property or otherwise, if any, in the Options.

<br> Name Signature Date

[*Signature Page to Option Grant Notice and Agreement*]

------

**Exhibit A** 

__________ __, 20__

Safepoint Holdings, Inc.

12640 Telecom Drive, Temple Terrace, Florida 33637

Attn: [____________]

Re: <u>Notice of Exercise</u>

1. By delivery of this Notice of Exercise, I am irrevocably electing to exercise options to purchase shares of
common stock, par value $[__] per share (" <u>Shares</u> ") of Safepoint Holdings, Inc. (the " <u>Company</u> ") granted to me under the Company's 2024 Stock Incentive Plan (the " <u>Plan</u> ").

2. The number of Shares I wish to purchase by exercising my options is _________.

3. The applicable purchase price (or exercise price) is $____ per Share, resulting in an aggregate purchase price
of $________ (the " <u>Aggregate Purchase Price</u> ").

4. I am satisfying my obligation to pay the Aggregate Purchase Price by: Delivering to the Company, with this
Notice of Exercise, an amount equal to the Aggregate Purchase Price in immediately available United States dollars, or by certified or bank cashier's check.

5. To satisfy the applicable withholding taxes, I have enclosed an amount equal to the applicable withholding
taxes in immediately available United States dollars, or by certified or bank cashier's check.

6. I hereby agree to be bound by all of the terms and conditions set forth in the Plan and any award agreement to
which the options were granted under. If I am not the person to whom the options were granted by the Company, proof of my right to purchase the Shares of the Company is enclosed.

7. I have been advised to consult with any legal, tax or financial advisors I have chosen in connection with the
purchase of the Shares.

 <br> Dated:    

---

| | |
|:---|:---|
| \* |  |
| (Optionee's signature) | (Additional signature, if necessary) |
| (Print name) | (Print name) |
| (Full address) | (Full address) |

---

\* Each person in whose name Shares are to be registered must sign this Notice of Exercise. (If more than one name is listed, specify whether the owners will hold the Shares as community property or as joint tenants with the right of survivorship).

## Exhibit 10.10

**Exhibit 10.10** 

**SAFEPOINT HOLDINGS, INC.** 

**2026 STOCK INCENTIVE PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Purpose.**

The purpose of the Plan is to assist the Company in attracting, retaining, motivating, and rewarding certain employees, officers, directors, and consultants of the Company and its Affiliates and promoting the creation of long-term value for stockholders of the Company by closely aligning the interests of such individuals with those of such stockholders. The Plan authorizes the award of Stock-based incentives to Eligible Persons to encourage such Eligible Persons to expend maximum effort in the creation of stockholder value. The Plan succeeds the Prior Plan for Awards granted on or after the Effective Date and no additional awards may be made under the Prior Plan on or after the Effective Date. The adoption and effectiveness of the Plan will not affect the terms or conditions of any awards granted under the Prior Plan prior to the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Definitions.**

For purposes of the Plan, the following terms shall be defined as set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Affiliate</u>" means, with respect to a Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Award</u>" means any Option, award of Restricted Stock, Restricted Stock Unit, Stock Appreciation Right, or other Stock-based award granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Award Agreement</u>" means an Option Agreement, a Restricted Stock Agreement, an RSU Agreement, a SAR Agreement, or an agreement governing the grant of any other Stock-based Award granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Board</u>" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Cause</u>" means, with respect to a Participant and in the absence of an Award Agreement or Participant Agreement otherwise defining Cause, (1) the Participant's plea of *nolo contendere* to, conviction of or indictment for, any crime (whether or not involving the Company or its Affiliates) (i) constituting a felony or (ii) that has, or could reasonably be expected to result in, an adverse impact on the performance of the Participant's duties to the Service Recipient, or otherwise has, or could reasonably be expected to result in, an adverse impact on the business or reputation of the Company or its Affiliates, (2) conduct of the Participant, in connection with his or her employment or service, that has resulted, or could reasonably be expected to result, in injury to the business or reputation of the Company or its Affiliates, (3) any material violation of the policies of the Service Recipient, including, but not limited to, those relating to sexual harassment or the disclosure or misuse of confidential information, or those set forth in the manuals or statements of policy of the Service Recipient; (4) the Participant's act(s) of negligence or willful misconduct in the course of his or her employment or service with the Service Recipient; (5) misappropriation by the Participant of any assets or business opportunities of the Company or its Affiliates; (6) embezzlement or fraud committed by the Participant, at the Participant's

------

direction, or with the Participant's prior actual knowledge; or (7) willful neglect in the performance of the Participant's duties for the Service Recipient or willful or repeated failure or refusal to perform such duties. If, subsequent to the Termination of a Participant for any reason other than by the Service Recipient for Cause, it is discovered that the Participant's employment or service could have been terminated for Cause, such Participant's employment or service shall, at the discretion of the Committee, be deemed to have been terminated by the Service Recipient for Cause for all purposes under the Plan, and the Participant shall be required to repay or return to the Company all amounts and benefits received by him or her in respect of any Award following such Termination that would have been forfeited under the Plan had such Termination been by the Service Recipient for Cause. In the event that there is an Award Agreement or Participant Agreement defining Cause, "<u>Cause</u>" shall have the meaning provided in such agreement, and a Termination by the Service Recipient for Cause hereunder shall not be deemed to have occurred unless all applicable notice and cure periods in such Award Agreement or Participant Agreement are complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Change in Control</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a change in ownership or control of the Company effected through a transaction or series of transactions (other than an offering of Stock to the general public through a registration statement filed with the U.S. Securities and Exchange Commission or similar non-U.S. regulatory agency or pursuant to a Non-Control Transaction) whereby any "person" (as defined in Section 3(a)(9) of the Exchange Act) or any two or more persons deemed to be one "person" (as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act), other than the Company or any of its Affiliates, an employee benefit plan sponsored or maintained by the Company or any of its Affiliates (or its related trust), or any underwriter temporarily holding securities pursuant to an offering of such securities, directly or indirectly acquire "beneficial ownership" (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than fifty percent (50%) of the total combined voting power of the Company's securities eligible to vote in the election of the Board (the "<u>Company Voting Securities</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the date, within any consecutive twenty-four (24) month period commencing on or after the Effective Date, upon which individuals who constitute the Board as of the Effective Date (the "<u>Incumbent Board</u>") cease for any reason to constitute at least a majority of the Board; *provided, however*, that any individual who becomes a director subsequent to the Effective Date whose appointment, election or nomination for election was approved by a vote of at least a majority of the directors then constituting the Incumbent Board (either by a specific vote or by approval of the proxy statement of the Company in which such individual is named as a nominee for director, without objection to such nomination) shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest (including, but not limited to, a consent solicitation) with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the consummation of a merger, consolidation, share exchange, or similar form of corporate transaction involving the Company or any of its Affiliates that requires the approval of the Company's stockholders (whether for such transaction, the issuance of securities in the transaction or otherwise) (a "<u>Reorganization</u>"), unless immediately following such Reorganization (i) more than fifty percent (50%) of the total voting power of (A) the corporation resulting from such Reorganization (the "<u>Surviving Company</u>") or (B) if applicable, the ultimate parent corporation that has, directly or indirectly, beneficial ownership of one hundred percent (100%) of the voting securities of the Surviving Company (the "<u>Parent Company</u>"), is represented by Company Voting Securities that were outstanding immediately prior to such Reorganization (or, if applicable, is represented by shares into which such Company Voting Securities were converted pursuant to such Reorganization), and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among holders thereof immediately prior to such Reorganization, (ii) no person, other than an employee benefit plan sponsored or maintained by the Surviving Company or the Parent Company (or its related trust), is or becomes the beneficial owner, directly or indirectly, of fifty percent (50%) or more of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Company, or if there is no Parent Company, the Surviving Company, and (iii) at least a majority of the members of the board of directors of the Parent Company, or if there is no Parent Company, the Surviving Company, following the consummation of such Reorganization are members of the Incumbent Board at the time of the Board's approval of the execution of the initial agreement providing for such Reorganization (any Reorganization which satisfies all of the criteria specified in clauses (i), (ii), and (iii) above shall be a "<u>Non-Control Transaction</u>"); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the sale or disposition, in one or a series of related transactions, of all or substantially all of the assets of the Company to any "person" (as defined in Section 3(a)(9) of the Exchange Act) or to any two or more persons deemed to be one "person" (as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) other than the Company's Affiliates.

Notwithstanding the foregoing, (x) a Change in Control shall not be deemed to occur solely because any person acquires beneficial ownership of fifty percent (50%) or more of the Company Voting Securities as a result of an acquisition of Company Voting Securities by the Company that reduces the number of Company Voting Securities outstanding; *provided* that if after such acquisition by the Company such person becomes the beneficial owner of additional Company Voting Securities that increases the percentage of outstanding Company Voting Securities beneficially owned by such person, a Change in Control shall then be deemed to occur, and (y) with respect to the payment of any amount that constitutes a deferral of compensation subject to Section 409A of the Code payable upon a Change in Control, a Change in Control shall not be deemed to have occurred, unless the Change in Control constitutes a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company under Section 409A(a)(2)(A)(v) of the Code.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Code</u>" means the U.S. Internal Revenue Code of 1986, as amended from time to time, including the rules and regulations thereunder and any successor provisions, rules and regulations thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Committee</u>" means the Board, the Compensation Committee of the Board or such other committee consisting of two or more individuals appointed by the Board to administer the Plan and each other individual or committee of individuals designated to exercise authority under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Company</u>" means Safepoint Holdings, Inc., a Delaware corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Corporate Event</u>" has the meaning set forth in Section 10(b) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Data</u>" has the meaning set forth in Section 20(g) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Disability</u>" means, in the absence of an Award Agreement or Participant Agreement otherwise defining Disability, the permanent and total disability of such Participant within the meaning of Section 22(e)(3) of the Code. In the event that there is an Award Agreement or Participant Agreement defining Disability, "<u>Disability</u>" shall have the meaning provided in such Award Agreement or Participant Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Disqualifying Disposition</u>" means any disposition (including any sale) of Stock acquired upon the exercise of an Incentive Stock Option made within the period that ends either (1) two years after the date on which the Participant was granted the Incentive Stock Option or (2) one year after the date upon which the Participant acquired the Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>Effective Date</u>" means , 2026, which is the date on which the Plan was approved by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "<u>Eligible Person</u>" means (1) each employee and officer of the Company or any of its Affiliates, (2) each non-employee director of the Company or any of its Affiliates; (3) each other natural Person who provides substantial services to the Company or any of its Affiliates as a consultant or advisor (or a wholly owned alter ego entity of the natural Person providing such services of which such Person is an employee, stockholder or partner) and who is designated as eligible by the Committee, and (4) each natural Person who has been offered employment by the Company or any of its Affiliates; *provided* that such prospective employee may not receive any payment or exercise any right relating to an Award until such Person has commenced employment or service with the Company or its Affiliates; *provided further, however*, that (i) with respect to any Award that is intended to qualify as a "stock right" that does not provide for a "deferral of compensation" within the meaning of Section 409A of the Code, the term "<u>Affiliate</u>" as used in this Section 2(o) shall include only those corporations or other entities in the unbroken chain of corporations or other entities beginning with the Company where each of the corporations or other entities in the unbroken chain other than the last corporation or other entity owns stock possessing at least fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations or other entities in the chain, and (ii) with respect to any Award that is intended to be an Incentive Stock Option, the term "Affiliate" as used in this Section 2(o) shall include only those entities that qualify as a "subsidiary corporation" with respect to the Company within the meaning of Section 424(f) of the Code. An employee on an approved leave of absence may be considered as still in the employ of the Company or any of its Affiliates for purposes of eligibility for participation in the Plan.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "<u>Exchange Act</u>" means the U.S. Securities Exchange Act of 1934, as amended from time to time, including the rules and regulations thereunder and any successor provisions, rules and regulations thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "<u>Expiration Date</u>" means, with respect to an Option or Stock Appreciation Right, the date on which the term of such Option or Stock Appreciation Right expires, as determined under Sections 5(b) or 8(b) hereof, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "<u>Fair Market Value</u>" means, as of any date when the Stock is listed on one or more national securities exchanges, the closing price reported on the principal national securities exchange on which such Stock is listed and traded on the date of determination or, if the closing price is not reported on such date of determination, the closing price reported on the most recent date prior to the date of determination. If the Stock is not listed on a national securities exchange, "<u>Fair Market Value</u>" shall mean the amount determined by the Board in good faith, and in a manner consistent with Section 409A of the Code, to be the fair market value per share of Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "<u>GAAP</u>" means the U.S. Generally Accepted Accounting Principles, as in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "<u>Incentive Stock Option</u>" means an Option intended to qualify as an "incentive stock option" within the meaning of Section 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "<u>Nonqualified Stock Option</u>" means an Option not intended to be an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>Option</u>" means a conditional right, granted to a Participant under Section 5 hereof, to purchase Stock at a specified price during a specified time period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "<u>Option Agreement</u>" means a written agreement between the Company and a Participant evidencing the terms and conditions of an individual Option Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "<u>Participant</u>" means an Eligible Person who has been granted an Award under the Plan or, if applicable, such other Person who holds an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "<u>Participant Agreement</u>" means an employment or other services agreement between a Participant and the Service Recipient that describes the terms and conditions of such Participant's employment or service with the Service Recipient and is effective as of the date of determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "<u>Person</u>" means any individual, corporation, partnership, firm, joint venture, association, joint-stock company, trust, unincorporated organization, or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "<u>Plan</u>" means this Safepoint Holdings, Inc., 2026 Stock Incentive Plan, as amended from time to time.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "<u>Prior Plan</u>" means the Safepoint Holdings, Inc. 2024 Stock Incentive Plan, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "<u>Qualified Member</u>" means a member of the Committee who is a "Non-Employee Director" within the meaning of Rule 16b-3 under the Exchange Act and an "independent director" as defined under the NYSE Listed Company Manual or other applicable stock exchange rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "<u>Qualifying Committee</u>" has the meaning set forth in Section 3(b) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "<u>Restricted Stock</u>" means Stock granted to a Participant under Section 6 hereof that is subject to certain restrictions and to a risk of forfeiture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "<u>Restricted Stock Agreement</u>" means a written agreement between the Company and a Participant evidencing the terms and conditions of an individual Restricted Stock Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "<u>Restricted Stock Unit</u>" means a notional unit representing the right to receive one share of Stock (or the cash value of one share of Stock, if so determined by the Committee) on a specified settlement date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "<u>RSU Agreement</u>" means a written agreement between the Company and a Participant evidencing the terms and conditions of an individual Award of Restricted Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>SAR Agreement</u>" means a written agreement between the Company and a Participant evidencing the terms and conditions of an individual Award of Stock Appreciation Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "<u>Securities Act</u>" means the U.S. Securities Act of 1933, as amended from time to time, including the rules and regulations thereunder and any successor provisions, rules and regulations thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "<u>Service Recipient</u>" means, with respect to a Participant holding an Award, either the Company or an Affiliate of the Company by which the original recipient of such Award is, or following a Termination was most recently, principally employed or to which such original recipient provides, or following a Termination was most recently providing, services, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "<u>Stock</u>" means Common Stock, par value $0.001 per share, of the Company, and such other securities as may be substituted for such stock pursuant to Section 10 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "<u>Stock Appreciation Right</u>" means a conditional right to receive an amount equal to the value of the appreciation in the Stock over a specified period. Except in the event of extraordinary circumstances, as determined in the sole discretion of the Committee, or pursuant to Section 10(b) hereof, Stock Appreciation Rights shall be settled in Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "<u>Substitute Award</u>" has the meaning set forth in Section 4(a) hereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "<u>Termination</u>" means the termination of a Participant's employment or service, as applicable, with the Service Recipient; *provided, however*, that if so determined by the Committee at the time of any change in status in relation to the Service Recipient (*e.g.*, a Participant ceases to be an employee and begins providing services as a consultant, or vice versa), such change in status will not be deemed a Termination hereunder. Unless otherwise determined by the Committee, in the event that the Service Recipient ceases to be an Affiliate of the Company (by reason of sale, divestiture, spin-off, or other similar transaction), unless a Participant's employment or service is transferred to another entity that would constitute the Service Recipient immediately following such transaction, such Participant shall be deemed to have suffered a Termination hereunder as of the date of the consummation of such transaction. Notwithstanding anything herein to the contrary, a Participant's change in status in relation to the Service Recipient (for example, a change from employee to consultant) shall not be deemed a Termination hereunder with respect to any Awards constituting "nonqualified deferred compensation" subject to Section 409A of the Code that are payable upon a Termination unless such change in status constitutes a "separation from service" within the meaning of Section 409A of the Code. Any payments in respect of an Award constituting nonqualified deferred compensation subject to Section 409A of the Code that are payable upon a Termination shall be delayed for such period as may be necessary to meet the requirements of Section 409A(a)(2)(B)(i) of the Code. On the first business day following the expiration of such period, the Participant shall be paid, in a single lump sum without interest, an amount equal to the aggregate amount of all payments delayed pursuant to the preceding sentence, and any remaining payments not so delayed shall continue to be paid pursuant to the payment schedule applicable to such Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Administration.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Authority of the Committee</u>. Except as otherwise provided below, the Plan shall be administered by the Committee. The Committee shall have full and final authority, in each case subject to and consistent with the provisions of the Plan, to (1) select Eligible Persons to become Participants, (2) grant Awards, (3) determine the type, number and type of shares of Stock subject to, other terms and conditions of, and all other matters relating to, Awards, (4) prescribe Award Agreements (which need not be identical for each Participant) and rules and regulations for the administration of the Plan, (5) construe and interpret the Plan and Award Agreements and correct defects, supply omissions, and reconcile inconsistencies therein, (6) suspend the right to exercise Awards during any period that the Committee deems appropriate to comply with applicable securities laws, and thereafter extend the exercise period of an Award by an equivalent period of time or such shorter period required by, or necessary to comply with, applicable law, and (7) make all other decisions and determinations as the Committee may deem necessary or advisable for the administration of the Plan. Any action of the Committee shall be final, conclusive, and binding on all Persons, including, without limitation, the Company, its stockholders and Affiliates, Eligible Persons, Participants, and beneficiaries of Participants. Notwithstanding anything in the Plan to the contrary, the Committee shall have the ability to accelerate the vesting of any outstanding Award at any time and for any reason, including upon a Corporate Event, subject to Section 10(d), or in the event of a Participant's Termination by the Service Recipient other than for Cause, or due to the Participant's death, Disability or retirement (as such term may be defined in an applicable Award Agreement or Participant Agreement, or, if no such definition exists, in accordance with the Company's then-current employment policies and guidelines). For the avoidance of doubt, the Board shall have the authority to take all actions under the Plan that the Committee is permitted to take.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Manner of Exercise of Committee Authority</u>*.* At any time that a member of the Committee is not a Qualified Member, any action of the Committee relating to an Award granted or to be granted to a Participant who is then subject to Section 16 of the Exchange Act in respect of the Company, must be taken by the remaining members of the Committee or a subcommittee, designated by the Committee or the Board, composed solely of two or more Qualified Members (a "<u>Qualifying Committee</u>"). Any action authorized by such a Qualifying Committee shall be deemed the action of the Committee for purposes of the Plan. The express grant of any specific power to a Qualifying Committee, and the taking of any action by such a Qualifying Committee, shall not be construed as limiting any power or authority of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delegation</u>. To the extent permitted by applicable law, the Committee may delegate to officers or employees of the Company or any of its Affiliates, or committees thereof, the authority, subject to such terms as the Committee shall determine, to perform such functions under the Plan, including, but not limited to, administrative functions, as the Committee may determine appropriate. The Committee may appoint agents to assist it in administering the Plan. Any actions taken by an officer or employee delegated authority pursuant to this Section 3(c) within the scope of such delegation shall, for all purposes under the Plan, be deemed to be an action taken by the Committee. Notwithstanding the foregoing or any other provision of the Plan to the contrary, any Award granted under the Plan to any Eligible Person who is not an employee of the Company or any of its Affiliates (including any non-employee director of the Company or any Affiliate) or to any Eligible Person who is subject to Section 16 of the Exchange Act must be expressly approved by the Committee or Qualifying Committee in accordance with Section 3(b) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Sections</u> <u>409A and 457A</u>. The Committee shall take into account compliance with Sections 409A and 457A of the Code in connection with any grant of an Award under the Plan, to the extent applicable. While the Awards granted hereunder are intended to be structured in a manner to avoid the imposition of any penalty taxes under Sections 409A and 457A of the Code, in no event whatsoever shall the Company or any of its Affiliates be liable for any additional tax, interest, or penalties that may be imposed on a Participant as a result of Section 409A or Section 457A of the Code or any damages for failing to comply with Section 409A or Section 457A of the Code or any similar state or local laws (other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A or Section 457A of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Shares Available Under the Plan; Other Limitations.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Number of Shares Available for Delivery</u>. Subject to adjustment as provided in Section 10 hereof, the total number of shares of Stock reserved and available for delivery in connection with Awards under the Plan shall equal the sum of (i) and (ii) to the extent that an award outstanding under the Prior Plan as of the Effective Date expires or is canceled, forfeited, settled in cash, or otherwise terminated without delivery to the Participant of the full number of shares of Stock to which the award related, the number of such shares of Stock that are undelivered, up to a maximum of shares of Stock. Unless the Committee acts prior to

------

the first day of a given fiscal year to provide otherwise, the total number of shares of Stock reserved and available for delivery in connection with Awards under the Plan will be increased on the first day of each of the fiscal years during the term of the Plan following the Company's fiscal year in which the Effective Date occurs, in an amount equal to the lowest of (x) three percent (3%) of the outstanding shares of Stock on the last day of the immediately preceding fiscal year, (y) shares of Stock and (z) such fewer number of shares of Stock as is determined by the Board. Shares of Stock delivered under the Plan shall consist of authorized and unissued shares or previously issued shares of Stock reacquired by the Company on the open market or by private purchase. Notwithstanding the foregoing, (i) except as may be required by reason of Section 422 of the Code, the number of shares of Stock available for issuance hereunder shall not be reduced by shares issued pursuant to Awards issued or assumed in connection with a merger or acquisition as contemplated by, NYSE Listed Company Manual Section 303A.08 or other applicable stock exchange rules, and their respective successor rules and listing exchange promulgations (each such Award, a "<u>Substitute Award</u>"); and (ii) shares of Stock shall not be deemed to have been issued pursuant to the Plan with respect to any portion of an Award that is settled in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Share Counting Rules</u>. The Committee may adopt reasonable counting procedures to ensure appropriate counting, avoid double-counting (as, for example, in the case of tandem awards or Substitute Awards) and make adjustments if the number of shares of Stock actually delivered differs from the number of shares previously counted in connection with an Award. Other than with respect to a Substitute Award, to the extent that an Award expires or is canceled, forfeited, settled in cash, or otherwise terminated without delivery to the Participant of the full number of shares of Stock to which the Award related, the undelivered shares of Stock will again be available for grant. Shares of Stock withheld in payment of the exercise price or taxes relating to an Award and shares of Stock equal to the number surrendered in payment of any exercise price or taxes relating to an Award shall not be deemed to constitute shares delivered to the Participant and shall be deemed to again be available for delivery under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Incentive Stock Options</u>. No more than shares of Stock (subject to adjustment as provided in Section 10 hereof) reserved for issuance hereunder may be issued or transferred upon exercise or settlement of Incentive Stock Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Shares Available Under Acquired Plans</u>. To the extent permitted by NYSE Listed Company Manual Section 303A.08 or other applicable stock exchange rules, subject to applicable law, in the event that a company acquired by the Company or with which the Company combines has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio of formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the number of shares of Stock reserved and available for delivery in connection with Awards under the Plan; *provided* that Awards using such available shares shall not be made after the date awards could have been made under the terms of such pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not employed by the Company or any subsidiary of the Company immediately prior to such acquisition or combination.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Limitation on Awards to Non-Employee Directors</u>. Notwithstanding anything herein to the contrary, the maximum value of any Awards granted to a non-employee director of the Company in any one calendar year, taken together with any cash fees paid to such non-employee director during such calendar year in respect of the non-employee director's services as a member of the Board during such year, shall not exceed $1,000,000 (calculating the value of any such Awards based on the grant date fair value of such Awards for financial reporting purposes); provided, that the Committee may make exceptions to this limit, provided that the non-employee director receiving such additional compensation may not participate in the decision to award such compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Options.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Certain Options granted under the Plan may be intended to be Incentive Stock Options; however, no Incentive Stock Options may be granted hereunder following the tenth (10th) anniversary of the earlier of (i) the date the Plan is adopted by the Board and (ii) the date the stockholders of the Company approve the Plan. Options may be granted to Eligible Persons in such form and having such terms and conditions as the Committee shall deem appropriate; *provided*, *however*, that Incentive Stock Options may be granted only to Eligible Persons who are employees of the Company or an Affiliate (as such definition is limited pursuant to Section 2(o) hereof) of the Company. The provisions of separate Options shall be set forth in separate Option Agreements, which agreements need not be identical. No dividends or dividend equivalents shall be paid on Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term</u>. The term of each Option shall be set by the Committee at the time of grant; *provided, however*, that no Option granted hereunder shall be exercisable after, and each Option shall expire, ten (10) years from the date it was granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Exercise Price</u>. The exercise price per share of Stock for each Option shall be set by the Committee at the time of grant and shall not be less than the Fair Market Value on the date of grant, subject to Section 5(g) hereof in the case of any Incentive Stock Option. Notwithstanding the foregoing, in the case of an Option that is a Substitute Award, the exercise price per share of Stock for such Option may be less than the Fair Market Value on the date of grant; *provided*, that such exercise price is determined in a manner consistent with the provisions of Section 409A of the Code and, if applicable, Section 424(a) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Payment for Stock</u>. Payment for shares of Stock acquired pursuant to an Option granted hereunder shall be made in full upon exercise of the Option in a manner approved by the Committee, which may include any of the following payment methods: (1) in immediately available funds in U.S. dollars, or by certified or bank cashier's check, (2) by delivery of shares of Stock having a value equal to the exercise price, (3) by a broker-assisted cashless exercise in accordance with procedures approved by the Committee, whereby payment of the Option exercise price or tax withholding obligations may be satisfied, in whole or in part, with shares of Stock subject to the Option by delivery of an irrevocable direction to a securities broker (on a form prescribed by the Committee) to sell shares of Stock and to deliver all or part of the sale proceeds to the Company in payment of the aggregate exercise price and, if applicable, the amount necessary to satisfy the Company's withholding obligations, or (4) by any other means approved by the Committee (including, by delivery of a notice of "net exercise" to the Company, pursuant to which

------

the Participant shall receive the number of shares of Stock underlying the Option so exercised reduced by the number of shares of Stock equal to the aggregate exercise price of the Option divided by the Fair Market Value on the date of exercise). Notwithstanding anything herein to the contrary, if the Committee determines that any form of payment available hereunder would be in violation of Section 402 of the Sarbanes-Oxley Act of 2002, such form of payment shall not be available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Vesting</u>. Options shall vest and become exercisable in such manner, on such date or dates, or upon the achievement of performance or other conditions, in each case as may be determined by the Committee and set forth in an Option Agreement; *provided*, *however*, that notwithstanding any such vesting dates, the Committee may in its sole discretion accelerate the vesting of any Option at any time and for any reason. Unless otherwise specifically determined by the Committee, the vesting of an Option shall occur only while the Participant is employed by or rendering services to the Service Recipient, and all vesting shall cease upon a Participant's Termination for any reason. To the extent permitted by applicable law and unless otherwise determined by the Committee, vesting shall be suspended during the period of any approved unpaid leave of absence by a Participant following which the Participant has a right to reinstatement and shall resume upon such Participant's return to active employment. If an Option is exercisable in installments, such installments or portions thereof that become exercisable shall remain exercisable until the Option expires, is canceled or otherwise terminates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Termination of Employment or Service</u>. Except as provided by the Committee in an Option Agreement, Participant Agreement or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) In the event of a Participant's Termination prior to the applicable Expiration Date for any reason other than (i) by the Service Recipient for Cause, or (ii) by reason of the Participant's death or Disability, (A) all vesting with respect to such Participant's Options outstanding shall cease, (B) all of such Participant's unvested Options outstanding shall terminate and be forfeited for no consideration as of the date of such Termination, and (C) all of such Participant's vested Options outstanding shall terminate and be forfeited for no consideration on the earlier of (x) the applicable Expiration Date and (y) the date that is ninety (90) days after the date of such Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In the event of a Participant's Termination prior to the applicable Expiration Date by reason of such Participant's death or Disability, (i) all vesting with respect to such Participant's Options outstanding shall cease, (ii) all of such Participant's unvested Options outstanding shall terminate and be forfeited for no consideration as of the date of such Termination, and (iii) all of such Participant's vested Options outstanding shall terminate and be forfeited for no consideration on the earlier of (x) the applicable Expiration Date and (y) the date that is twelve (12) months after the date of such Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) In the event of a Participant's Termination prior to the applicable Expiration Date by the Service Recipient for Cause, all of such Participant's Options outstanding (whether or not vested) shall immediately terminate and be forfeited for no consideration as of the date of such Termination.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Special Provisions Applicable to Incentive Stock Options</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) No Incentive Stock Option may be granted to any Eligible Person who, at the time the Option is granted, owns directly, or indirectly within the meaning of Section 424(d) of the Code, stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any parent or subsidiary thereof, unless such Incentive Stock Option (i) has an exercise price of at least one hundred ten percent (110%) of the Fair Market Value on the date of the grant of such Option and (ii) cannot be exercised more than five (5) years after the date it is granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) To the extent that the aggregate Fair Market Value (determined as of the date of grant) of Stock for which Incentive Stock Options are exercisable for the first time by any Participant during any calendar year (under all plans of the Company and its Affiliates) exceeds $100,000, such excess Incentive Stock Options shall be treated as Nonqualified Stock Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Each Participant who receives an Incentive Stock Option must agree to notify the Company in writing immediately after the Participant makes a Disqualifying Disposition of any Stock acquired pursuant to the exercise of an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Restricted Stock.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Restricted Stock may be granted to Eligible Persons in such form and having such terms and conditions as the Committee shall deem appropriate. The provisions of separate Awards of Restricted Stock shall be set forth in separate Restricted Stock Agreements, which agreements need not be identical. Subject to the restrictions set forth in Section 6(b) hereof, and except as otherwise set forth in the applicable Restricted Stock Agreement, the Participant shall generally have the rights and privileges of a stockholder as to such Restricted Stock, including the right to vote such Restricted Stock. Unless otherwise set forth in a Participant's Restricted Stock Agreement, cash dividends and stock dividends, if any, with respect to the Restricted Stock shall be withheld by the Company for the Participant's account, and shall be subject to forfeiture to the same degree as the shares of Restricted Stock to which such dividends relate. Except as otherwise determined by the Committee, no interest will accrue or be paid on the amount of any cash dividends withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting and Restrictions on Transfer</u>. Restricted Stock shall vest in such manner, on such date or dates, or upon the achievement of performance or other conditions, in each case as may be determined by the Committee and set forth in a Restricted Stock Agreement; *provided, however*, that notwithstanding any such vesting dates, the Committee may in its sole discretion accelerate the vesting of any Award of Restricted Stock at any time and for any reason. Unless otherwise specifically determined by the Committee, the vesting of an Award of Restricted Stock shall occur only while the Participant is employed by or rendering services to the Service Recipient, and all vesting shall cease upon a Participant's Termination for any reason. To the extent permitted by applicable law and unless otherwise determined by the Committee, vesting shall be suspended during the period of any approved unpaid leave of absence by a Participant following which the Participant has a right to reinstatement and shall resume upon such Participant's return to active employment. In addition to any other restrictions set forth in a Participant's Restricted Stock Agreement, the Participant shall not be permitted to sell, transfer, pledge, or otherwise encumber the Restricted Stock prior to the time the Restricted Stock has vested pursuant to the terms of the Restricted Stock Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Employment or Service</u>. Except as provided by the Committee in a Restricted Stock Agreement, Participant Agreement or otherwise, in the event of a Participant's Termination for any reason prior to the time that such Participant's Restricted Stock has vested, (1) all vesting with respect to such Participant's Restricted Stock outstanding shall cease, and (2) as soon as practicable following such Termination, the Company shall repurchase from the Participant, and the Participant shall sell, all of such Participant's unvested shares of Restricted Stock at a purchase price equal to the lesser of (A) the original purchase price paid for the Restricted Stock (as adjusted for any subsequent changes in the outstanding Stock or in the capital structure of the Company) *less* any dividends or other distributions or bonus received (or to be received) by the Participant (or any transferee) in respect of such Restricted Stock prior to the date of repurchase and (B) the Fair Market Value of the Stock on the date of such repurchase; provided that, if the original purchase price paid for the Restricted Stock is equal to zero dollars ($0), such unvested shares of Restricted Stock shall be forfeited to the Company by the Participant for no consideration as of the date of such Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Restricted Stock Units.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Restricted Stock Units may be granted to Eligible Persons in such form and having such terms and conditions as the Committee shall deem appropriate. The provisions of separate Restricted Stock Units shall be set forth in separate RSU Agreements, which agreements need not be identical.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting</u>. Restricted Stock Units shall vest in such manner, on such date or dates, or upon the achievement of performance or other conditions, in each case as may be determined by the Committee and set forth in an RSU Agreement; *provided*, *however*, that notwithstanding any such vesting dates, the Committee may in its sole discretion accelerate the vesting of any Restricted Stock Unit at any time and for any reason. Unless otherwise specifically determined by the Committee, the vesting of a Restricted Stock Unit shall occur only while the Participant is employed by or rendering services to the Service Recipient, and all vesting shall cease upon a Participant's Termination for any reason. To the extent permitted by applicable law and unless otherwise determined by the Committee, vesting shall be suspended during the period of any approved unpaid leave of absence by a Participant following which the Participant has a right to reinstatement and shall resume upon such Participant's return to active employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Settlement</u>. Restricted Stock Units shall be settled in Stock, cash, or property, as determined by the Committee, in its sole discretion, on the date or dates determined by the Committee and set forth in an RSU Agreement. Unless otherwise set forth in a Participant's RSU Agreement, a Participant shall not be entitled to dividends, if any, or dividend equivalents with respect to Restricted Stock Units prior to settlement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination of Employment or Service</u>. Except as provided by the Committee in an RSU Agreement, Participant Agreement or otherwise, in the event of a Participant's Termination for any reason prior to the time that such Participant's Restricted Stock Units have been settled, (1) all vesting with respect to such Participant's Restricted Stock Units outstanding shall cease, (2) all of such Participant's unvested Restricted Stock Units outstanding shall be forfeited for no consideration as of the date of such Termination, and (3) any shares remaining undelivered with respect to vested Restricted Stock Units then held by such Participant shall be delivered on the delivery date or dates specified in the RSU Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Stock Appreciation Rights.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Stock Appreciation Rights may be granted to Eligible Persons in such form and having such terms and conditions as the Committee shall deem appropriate. The provisions of separate Stock Appreciation Rights shall be set forth in separate SAR Agreements, which agreements need not be identical. No dividends or dividend equivalents shall be paid on Stock Appreciation Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term</u>. The term of each Stock Appreciation Right shall be set by the Committee at the time of grant; *provided, however*, that no Stock Appreciation Right granted hereunder shall be exercisable after, and each Stock Appreciation Right shall expire, ten (10) years from the date it was granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Base Price</u>. The base price per share of Stock for each Stock Appreciation Right shall be set by the Committee at the time of grant and shall not be less than the Fair Market Value on the date of grant. Notwithstanding the foregoing, in the case of a Stock Appreciation Right that is a Substitute Award, the base price per share of Stock for such Stock Appreciation Right may be less than the Fair Market Value on the date of grant; *provided*, that such base price is determined in a manner consistent with the provisions of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Vesting</u>. Stock Appreciation Rights shall vest and become exercisable in such manner, on such date or dates, or upon the achievement of performance or other conditions, in each case as may be determined by the Committee and set forth in a SAR Agreement; *provided*, *however*, that notwithstanding any such vesting dates, the Committee may in its sole discretion accelerate the vesting of any Stock Appreciation Right at any time and for any reason. Unless otherwise specifically determined by the Committee, the vesting of a Stock Appreciation Right shall occur only while the Participant is employed by or rendering services to the Service Recipient, and all vesting shall cease upon a Participant's Termination for any reason. To the extent permitted by applicable law and unless otherwise determined by the Committee, vesting shall be suspended during the period of any approved unpaid leave of absence by a Participant following which the Participant has a right to reinstatement and shall resume upon such Participant's return to active employment. If a Stock Appreciation Right is exercisable in installments, such installments or portions thereof that become exercisable shall remain exercisable until the Stock Appreciation Right expires, is canceled or otherwise terminates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payment upon Exercise</u>. Payment upon exercise of a Stock Appreciation Right may be made in cash, Stock, or property as specified in the SAR Agreement or determined by the Committee, in each case having a value in respect of each share of Stock underlying the portion of the Stock Appreciation Right so exercised, equal to the difference between the base price of such Stock Appreciation Right and the Fair Market Value of one (1) share of Stock on the exercise date. For purposes of clarity, each share of Stock to be issued in settlement of a Stock

------

Appreciation Right is deemed to have a value equal to the Fair Market Value of one (1) share of Stock on the exercise date. In no event shall fractional shares be issuable upon the exercise of a Stock Appreciation Right, and in the event that fractional shares would otherwise be issuable, the number of shares issuable will be rounded down to the next lower whole number of shares, and the Participant will be entitled to receive a cash payment equal to the value of such fractional share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Termination of Employment or Service</u>. Except as provided by the Committee in a SAR Agreement, Participant Agreement or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) In the event of a Participant's Termination prior to the applicable Expiration Date for any reason other than (i) by the Service Recipient for Cause, or (ii) by reason of the Participant's death or Disability, (A) all vesting with respect to such Participant's Stock Appreciation Rights outstanding shall cease, (B) all of such Participant's unvested Stock Appreciation Rights outstanding shall terminate and be forfeited for no consideration as of the date of such Termination, and (C) all of such Participant's vested Stock Appreciation Rights outstanding shall terminate and be forfeited for no consideration on the earlier of (x) the applicable Expiration Date and (y) the date that is ninety (90) days after the date of such Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In the event of a Participant's Termination prior to the applicable Expiration Date by reason of such Participant's death or Disability, (i) all vesting with respect to such Participant's Stock Appreciation Rights outstanding shall cease, (ii) all of such Participant's unvested Stock Appreciation Rights outstanding shall terminate and be forfeited for no consideration as of the date of such Termination, and (iii) all of such Participant's vested Stock Appreciation Rights outstanding shall terminate and be forfeited for no consideration on the earlier of (x) the applicable Expiration Date and (y) the date that is twelve (12) months after the date of such Termination. In the event of a Participant's death, such Participant's Stock Appreciation Rights shall remain exercisable by the Person or Persons to whom such Participant's rights under the Stock Appreciation Rights pass by will or by the applicable laws of descent and distribution until the applicable Expiration Date, but only to the extent that the Stock Appreciation Rights were vested at the time of such Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) In the event of a Participant's Termination prior to the applicable Expiration Date by the Service Recipient for Cause, all of such Participant's Stock Appreciation Rights outstanding (whether or not vested) shall immediately terminate and be forfeited for no consideration as of the date of such Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Other Stock-Based Awards.**

The Committee is authorized, subject to limitations under applicable law, to grant to Participants such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based upon or related to Stock, as deemed by the Committee to be consistent with the purposes of the Plan. The Committee may also grant Stock as a bonus (whether or not subject to any vesting requirements or other restrictions on transfer), and may grant other Awards in lieu of obligations of the Company or an Affiliate to pay cash or deliver other property under the Plan or under other plans or compensatory arrangements, subject to such terms as shall be determined by the Committee. The terms and conditions applicable to such Awards shall be determined by the Committee and evidenced by Award Agreements, which agreements need not be identical.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Adjustment for Recapitalization, Merger, etc.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Capitalization Adjustments</u>. The aggregate number of shares of Stock that may be delivered in connection with Awards (as set forth in Section 4 hereof), the numerical share limits in Section 4(a) hereof, the number of shares of Stock covered by each outstanding Award, and the price per share of Stock underlying each such Award shall be equitably and proportionally adjusted or substituted, as determined by the Committee, in its sole discretion, as to the number, price, or kind of a share of Stock or other consideration subject to such Awards (1) in the event of changes in the outstanding Stock or in the capital structure of the Company by reason of stock dividends, extraordinary cash dividends, stock splits, reverse stock splits, recapitalizations, reorganizations, mergers, amalgamations, consolidations, combinations, exchanges, or other relevant changes in capitalization occurring after the date of grant of any such Award (including any Corporate Event); (2) in connection with any extraordinary dividend declared and paid in respect of shares of Stock, whether payable in the form of cash, stock, or any other form of consideration; or (3) in the event of any change in applicable laws or circumstances that results in or could result in, in either case, as determined by the Committee in its sole discretion, any substantial dilution or enlargement of the rights intended to be granted to, or available for, Participants in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Corporate Events</u>. Notwithstanding the foregoing, except as provided by the Committee in an Award Agreement, Participant Agreement or otherwise, in connection with (i) a merger, amalgamation, or consolidation involving the Company in which the Company is not the surviving corporation, (ii) a merger, amalgamation, or consolidation involving the Company in which the Company is the surviving corporation but the holders of shares of Stock receive securities of another corporation or other property or cash, (iii) a Change in Control, or (iv) the reorganization, dissolution or liquidation of the Company (each, a "<u>Corporate Event</u>"), the Committee may provide for any one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The assumption or substitution of any or all Awards in connection with such Corporate Event, in which case the Awards shall be subject to the adjustment set forth in Section 10(a) above, and to the extent that such Awards vest subject to the achievement of performance criteria, unless otherwise set forth in an Award Agreement, such performance criteria shall be deemed earned at target level (or, if no target is specified, at the maximum level) and will be converted into solely service-based vesting awards that will vest during the performance period, if any, during which the original performance criteria would have been measured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The acceleration of vesting of any or all Awards not assumed or substituted in connection with such Corporate Event, subject to the consummation of such Corporate Event; provided, that, to the extent that such Awards vest subject to the achievement of performance criteria, unless otherwise set forth in an Award Agreement, such performance criteria shall be deemed earned at target level (or, if no target is specified, at the maximum level);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The cancellation of any or all Awards not assumed or substituted in connection with such Corporate Event (whether vested or unvested) as of the consummation of such Corporate Event, together with the payment to the Participants holding vested Awards (including any Awards that would vest upon the Corporate Event but for such cancellation) so canceled of an amount based upon the per-share consideration being paid for the Stock in connection with such Corporate Event, less, in the case of Options, Stock Appreciation Rights, and other Awards subject to exercise, the applicable exercise or base price; *provided, however*, that holders of Options, Stock Appreciation Rights, and other Awards subject to exercise shall be entitled to consideration in respect of cancellation of such Awards only if the per-share consideration less the applicable exercise or base price is greater than zero dollars ($0), and to the extent that the per-share consideration is less than or equal to the applicable exercise or base price, such Awards shall be canceled for no consideration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The cancellation of any or all Options, Stock Appreciation Rights and other Awards subject to exercise not assumed or substituted in connection with such Corporate Event (whether vested or unvested) as of the consummation of such Corporate Event; *provided* that all Options, Stock Appreciation Rights and other Awards to be so canceled pursuant to this paragraph (4) shall first become exercisable for a period of at least ten (10) days prior to such Corporate Event, with any exercise during such period of any unvested Options, Stock Appreciation Rights or other Awards to be (A) contingent upon and subject to the occurrence of the Corporate Event, and (B) effectuated by such means as are approved by the Committee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The replacement of any or all Awards (other than Awards that are intended to qualify as "stock rights" that do not provide for a "deferral of compensation" within the meaning of Section 409A of the Code) with a cash incentive program that preserves the value of the Awards so replaced (determined as of the consummation of the Corporate Event), with subsequent payment of cash incentives subject to the same vesting conditions as applicable to the Awards so replaced and payment to be made within thirty (30) days of the applicable vesting date.

Payments to holders pursuant to paragraph (3) above shall be made in cash or, in the sole discretion of the Committee, and to the extent applicable, in the form of such other consideration necessary for a Participant to receive property, cash, or securities (or a combination thereof) as such Participant would have been entitled to receive upon the occurrence of the transaction if the Participant had been, immediately prior to such transaction, the holder of the number of shares of Stock covered by the Award at such time (less any applicable exercise or base price). In addition, in connection with any Corporate Event, prior to any payment or adjustment contemplated under this Section 10(b), the Committee may require a Participant to (A) represent and warrant as to the unencumbered title to his or her Awards, (B) bear such Participant's pro-rata share of any post-closing indemnity obligations, and be subject to the same post-closing purchase price adjustments, escrow terms, offset rights, holdback terms, and similar conditions as the other holders of Stock, and (C) deliver customary transfer documentation as reasonably determined by the Committee. The Committee need not take the same action or actions with respect to all Awards or portions thereof or with respect to all Participants. The Committee may take different actions with respect to the vested and unvested portions of an Award.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Fractional Shares</u>. Any adjustment provided under this Section 10 may, in the Committee's discretion, provide for the elimination of any fractional share that might otherwise become subject to an Award. No cash settlements shall be made with respect to fractional shares so eliminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(d)</u> <u>D</u><u>ouble-Trigger Vesting</u>. Unless otherwise provided for in an Award Agreement, Participant Agreement or other similar agreement, any Award (including any Award that has been assumed, substituted or replaced in accordance with Section 10(b)) held by a Participant who experiences an involuntary Termination as a result of a Change in Control shall immediately vest as of the later of the date of such Termination or the effective date of the applicable Change in Control, subject to the Participant's execution, delivery to the Company, and non-revocation of the general release of claims against the Company Group and its current and former employees, officers, directors and affiliates (and the expiration of any revocation period contained in such release of claims) in a form reasonably satisfactory to the Company within sixty (60) days following the date of Participant's Termination. For purposes of this Section 10(d), a Participant will be deemed to experience an involuntary Termination as a result of a Change in Control if the Participant experiences a Termination by the Service Recipient other than for Cause (including the Participant's resignation for "good reason" (or similar term) as defined in the applicable Award Agreement, Participant Agreement, or in a written change in control, retention, severance or similar agreement between the Company and a Participant, or in a change in control, retention, severance or similar plan maintained by the Company in which the Participant participates), is terminated under circumstances which entitle the Participant to mandatory severance payment(s) pursuant to applicable law or, in the case of a non-employee director of the Company, if the non-employee director's service on the Board terminates in connection with or as a result of a Change in Control, in each case, at any time beginning on the date that is three (3) months prior to the effective date of the Change in Control up to and including the two (2) year anniversary of the effective date of the Change in Control. If a Participant undergoes an involuntary Termination initiated by the Service Recipient other than for Cause and no Change in Control has occurred within the two (2) year period immediately preceding such Termination, notwithstanding anything in this Plan to the contrary, subject to the Participant's continued compliance with any confidentiality, non-compete, non-solicit, invention assignment, or similar agreement or arrangement to which Participant is a party with any member of the Company Group, any then-unvested Awards held by the Participant under the Plan shall not expire, terminate, or be forfeited or cancelled, solely by reason of the Termination, until three (3) months have passed from the Participant's involuntary Termination without a Change in Control occurring.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Awards Not Assumed</u>*.* Notwithstanding anything herein to the contrary, except as provided by the Committee in an Award Agreement, Participant Agreement or other similar agreement, in connection with a Change in Control, in the event that the successor or surviving company in the Change in Control does not agree to assume, substitute for, or otherwise replace an outstanding Award (or in the event that the Company is the ultimate parent corporation in the Change in Control and does not agree to continue the Award) on substantially similar vesting terms with substantially equivalent economic benefits (which benefits shall include, for the avoidance of doubt, the liquidity of the securities underlying the assumed or substituted award following the Change in Control unless the Awards are replaced with a cash incentive program that preserves the value of the Awards so replaced as of the consummation of the Change in Control) as exist for such Award immediately prior to the Change in Control, as determined in the

------

sole discretion of the Committee, then such Award shall, immediately prior to the consummation of the Change in Control, automatically become fully vested, exercisable, issuable and non-forfeitable (after giving effect to the performance vesting as described in Section 10(b)(1) above). If an Award becomes exercisable pursuant to this Section 10(e) the Committee shall notify the Participant that the Award shall be fully exercisable contingent upon the consummation of the Change in Control and will be cancelled in accordance with Section 10(b)(3) upon the consummation of the Change in Control for a payment, if any, as may be payable in accordance with Section 10(b)(3).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Use of Proceeds.**

The proceeds received from the sale of Stock pursuant to the Plan shall be used for general corporate purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Rights and Privileges as a Stockholder.**

Except as otherwise specifically provided in the Plan, no Person shall be entitled to the rights and privileges of Stock ownership in respect of shares of Stock that are subject to Awards hereunder until such shares have been issued to that Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Transferability of Awards.**

Awards may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the applicable laws of descent and distribution, and to the extent subject to exercise, Awards may not be exercised during the lifetime of the grantee other than by the grantee. Notwithstanding the foregoing, except with respect to Incentive Stock Options, Awards and a Participant's rights under the Plan shall be transferable for no value to the extent provided in an Award Agreement or otherwise determined at any time by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **Employment or Service Rights.**

No individual shall have any claim or right to be granted an Award under the Plan or, having been selected for the grant of an Award, to be selected for the grant of any other Award. Neither the Plan nor any action taken hereunder shall be construed as giving any individual any right to be retained in the employ or service of the Company or an Affiliate of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **Compliance with Laws.**

The obligation of the Company to deliver Stock upon issuance, vesting, exercise, or settlement of any Award shall be subject to all applicable laws, rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from offering to sell or selling, any shares of Stock pursuant to an Award unless such shares have been properly registered for sale with the U.S. Securities and Exchange Commission pursuant to the Securities Act (or with a similar non-U.S. regulatory agency pursuant to a similar law or regulation) or unless the Company has received an opinion of counsel, satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have

------

been fully complied with. The Company shall be under no obligation to register for sale or resale under the Securities Act any of the shares of Stock to be offered or sold under the Plan or any shares of Stock to be issued upon exercise or settlement of Awards. If the shares of Stock offered for sale or sold under the Plan are offered or sold pursuant to an exemption from registration under the Securities Act, the Company may restrict the transfer of such shares and may legend the Stock certificates representing such shares in such manner as it deems advisable to ensure the availability of any such exemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **Withholding Obligations.**

As a condition to the issuance, vesting, exercise, or settlement of any Award (or upon the making of an election under Section 83(b) of the Code), the Committee may require that a Participant satisfy, through deduction or withholding from any payment of any kind otherwise due to the Participant, or through such other arrangements as are satisfactory to the Committee, the amount of all federal, state, and local income and other taxes of any kind required or permitted to be withheld in connection with such issuance, vesting, exercise, or settlement (or election). The Committee, in its discretion, may permit shares of Stock to be used to satisfy tax withholding requirements, and such shares shall be valued at their Fair Market Value as of the issuance, vesting, exercise, or settlement date of the Award, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **Amendment of the Plan or Awards.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendment of Plan</u>. The Board or the Committee may amend the Plan at any time and from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment of Awards</u>. The Board or the Committee may amend the terms of any one or more Awards at any time and from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Stockholder Approval; No Material Impairment</u>. Notwithstanding anything herein to the contrary, no amendment to the Plan or any Award shall be effective without stockholder approval to the extent that such approval is required pursuant to applicable law or the applicable rules of each national securities exchange on which the Stock is listed. Additionally, no amendment to the Plan or any Award shall materially impair a Participant's rights under any Award unless the Participant consents in writing (it being understood that no action taken by the Board or the Committee that is expressly permitted under the Plan, including, without limitation, any actions described in Section 10 hereof, shall constitute an amendment to the Plan or an Award for such purpose). Notwithstanding the foregoing, subject to the limitations of applicable law, if any, and without an affected Participant's consent, the Board or the Committee may amend the terms of the Plan or any one or more Awards from time to time as necessary to bring such Awards into compliance with applicable law, including, without limitation, Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Repricing of Awards Without Stockholder Approval</u>. Notwithstanding Sections 17(a) or 17(b) above, or any other provision of the Plan, the repricing of Awards shall not be permitted without stockholder approval. For this purpose, a "<u>repricing</u>" means any of the following (or any other action that has the same effect as any of the following): (1) changing the terms of an Award to lower its exercise or base price (other than on account of capital adjustments resulting from share splits, etc., as described in Section 10(a) hereof), (2) any other action that is treated as a repricing under GAAP, and (3) repurchasing for cash or canceling an Award in exchange for another Award at a time when its exercise or base price is greater than the Fair Market Value of the underlying Stock, unless the cancellation and exchange occurs in connection with an event set forth in Section 10(b) hereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **Termination or Suspension of the Plan.**

The Board or the Committee may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day before the tenth (10<sup>th</sup>) anniversary of the date the stockholders of the Company approve the Plan. No Awards may be granted under the Plan while the Plan is suspended or after it is terminated; *provided, however*, that following any suspension or termination of the Plan, the Plan shall remain in effect for the purpose of governing all Awards then outstanding hereunder until such time as all Awards under the Plan have been terminated, forfeited, or otherwise canceled, or earned, exercised, settled, or otherwise paid out, in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **Effective Date of the Plan.**

The Plan is effective as of the Effective Date, subject to stockholder approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **Miscellaneous.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Treatment of Dividends and Dividend Equivalents on Unvested Awards</u>. Notwithstanding any other provision of the Plan to the contrary, with respect to any Award that provides for or includes a right to dividends or dividend equivalents, if dividends are declared during the period that an equity Award is outstanding, such dividends (or dividend equivalents) shall either (i) not be paid or credited with respect to such Award or (ii) be accumulated but remain subject to vesting requirement(s) to the same extent as the applicable Award and shall only be paid at the time or times such vesting requirement(s) are satisfied. Except as otherwise determined by the Committee, no interest will accrue or be paid on the amount of any cash dividends withheld. No dividends or dividend equivalents shall be paid on Options or Stock Appreciation Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Certificates</u>. Stock acquired pursuant to Awards granted under the Plan may be evidenced in such a manner as the Committee shall determine. If certificates representing Stock are registered in the name of the Participant, the Committee may require that (1) such certificates bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Stock, (2) the Company retain physical possession of the certificates, and (3) the Participant deliver a stock power to the Company, endorsed in blank, relating to the Stock. Notwithstanding the foregoing, the Committee may determine, in its sole discretion, that the Stock shall be held in book-entry form rather than delivered to the Participant pending the release of any applicable restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Benefits</u>. No Award granted or paid out under the Plan shall be deemed compensation for purposes of computing benefits under any retirement plan of the Company or its Affiliates nor affect any benefits under any other benefit plan now or subsequently in effect under which the availability or amount of benefits is related to the level of compensation.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Corporate Action Constituting Grant of Awards</u>. Corporate action constituting a grant by the Company of an Award to any Participant will be deemed completed as of the date of such corporate action, unless otherwise determined by the Committee, regardless of when the instrument, certificate, or letter evidencing the Award is communicated to, or actually received or accepted by, the Participant. In the event that the corporate records (*e*.*g*., Committee consents, resolutions or minutes) documenting the corporate action constituting the grant contain terms (*e*.g., exercise price, vesting schedule or number of shares of Stock) that are inconsistent with those in the Award Agreement as a result of a clerical error in connection with the preparation of the Award Agreement, the corporate records will control and the Participant will have no legally binding right to the incorrect term in the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Clawback/Recoupment Policy</u>. Notwithstanding anything contained herein to the contrary, all Awards granted under the Plan shall be and remain subject to any incentive compensation clawback or recoupment policy currently in effect or as may be adopted by the Board (or a committee or subcommittee of the Board) and, in each case, as may be amended from time to time. No such policy adoption or amendment shall in any event require the prior consent of any Participant. No recovery of compensation under such a clawback policy will be an event giving rise to a right to resign for "good reason" or "constructive termination" (or similar term) under any agreement with the Company or any of its Affiliates. In the event that an Award is subject to more than one such policy, the policy with the most restrictive clawback or recoupment provisions shall govern such Award, subject to applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Non</u><u>-Exempt Employees</u>. If an Option is granted to an employee of the Company or any of its Affiliates in the United States who is a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, the Option will not be first exercisable for any shares of Stock until at least six (6) months following the date of grant of the Option (although the Option may vest prior to such date). Consistent with the provisions of the Worker Economic Opportunity Act, (1) if such employee dies or suffers a Disability, (2) upon a Corporate Event in which such Option is not assumed, continued, or substituted, (3) upon a Change in Control, or (4) upon the Participant's retirement (as such term may be defined in the applicable Award Agreement or a Participant Agreement, or, if no such definition exists, in accordance with the Company's then current employment policies and guidelines), the vested portion of any Options held by such employee may be exercised earlier than six (6) months following the date of grant. The foregoing provision is intended to operate so that any income derived by a non-exempt employee in connection with the exercise or vesting of an Option will be exempt from his or her regular rate of pay. To the extent permitted and/or required for compliance with the Worker Economic Opportunity Act to ensure that any income derived by a non-exempt employee in connection with the exercise, vesting or issuance of any shares under any other Award will be exempt from such employee's regular rate of pay, the provisions of this Section 20(f) will apply to all Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Data Privacy</u>. As a condition of receipt of any Award, each Participant explicitly and unambiguously consents to the collection, use, and transfer, in electronic or other form, of personal data as described in this Section 20(g) by and among, as applicable, the Company and its Affiliates for the exclusive purpose of implementing, administering, and managing the Plan and Awards and the Participant's participation in the Plan. In furtherance of such implementation, administration, and management, the Company and its Affiliates may hold certain personal

------

information about a Participant, including, but not limited to, the Participant's name, home address, telephone number, date of birth, social security or insurance number or other identification number, salary, nationality, job title(s), information regarding any securities of the Company or any of its Affiliates, and details of all Awards (the "<u>Data</u>"). In addition to transferring the Data amongst themselves as necessary for the purpose of implementation, administration, and management of the Plan and Awards and the Participant's participation in the Plan, the Company and its Affiliates may each transfer the Data to any third parties assisting the Company in the implementation, administration, and management of the Plan and Awards and the Participant's participation in the Plan. Recipients of the Data may be located in the Participant's country or elsewhere, and the Participant's country and any given recipient's country may have different data privacy laws and protections. By accepting an Award, each Participant authorizes such recipients to receive, possess, use, retain, and transfer the Data, in electronic or other form, for the purposes of assisting the Company in the implementation, administration, and management of the Plan and Awards and the Participant's participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom the Company or the Participant may elect to deposit any shares of Stock. The Data related to a Participant will be held only as long as is necessary to implement, administer, and manage the Plan and Awards and the Participant's participation in the Plan. A Participant may, at any time, view the Data held by the Company with respect to such Participant, request additional information about the storage and processing of the Data with respect to such Participant, recommend any necessary corrections to the Data with respect to the Participant, or refuse or withdraw the consents herein in writing, in any case without cost, by contacting his or her local human resources representative. The Company may cancel the Participant's eligibility to participate in the Plan, and in the Committee's discretion, the Participant may forfeit any outstanding Awards if the Participant refuses or withdraws the consents described herein. For more information on the consequences of refusal to consent or withdrawal of consent, Participants may contact their local human resources representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Participants Outside of the United States</u>. The Committee may modify the terms of any Award under the Plan made to or held by a Participant who is then a resident, or is primarily employed or providing services, outside of the United States in any manner deemed by the Committee to be necessary or appropriate in order that such Award shall conform to laws, regulations, and customs of the country in which the Participant is then a resident or primarily employed or providing services, or so that the value and other benefits of the Award to the Participant, as affected by non–U.S. tax laws and other restrictions applicable as a result of the Participant's residence, employment, or providing services abroad, shall be comparable to the value of such Award to a Participant who is a resident, or is primarily employed or providing services, in the United States. An Award may be modified under this Section 20(h) in a manner that is inconsistent with the express terms of the Plan, so long as such modifications will not contravene any applicable law or regulation or result in actual liability under Section 16(b) of the Exchange Act for the Participant whose Award is modified. Additionally, the Committee may adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Eligible Persons who are non–U.S. nationals or are primarily employed or providing services outside the United States.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Change in Time Commitment</u>. In the event a Participant's regular level of time commitment in the performance of his or her services for the Company or any of its Affiliates is reduced (for example, and without limitation, if the Participant is an employee of the Company and the employee has a change in status from a full-time employee to a part-time employee) after the date of grant of any Award to the Participant, the Committee has the right in its sole discretion to (i) make a corresponding reduction in the number of shares of Stock subject to any portion of such Award that is scheduled to vest or become payable after the date of such change in time commitment, and (ii) in lieu of or in combination with such a reduction, extend the vesting or payment schedule applicable to such Award. In the event of any such reduction, the Participant will have no right with respect to any portion of the Award that is so reduced or extended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No Liability of Committee Members</u>. Neither any member of the Committee nor any of the Committee's permitted delegates shall be liable personally by reason of any contract or other instrument executed by such member or on his or her behalf in his or her capacity as a member of the Committee or for any mistake of judgment made in good faith, and the Company shall indemnify and hold harmless each member of the Committee and each other employee, officer, or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be allocated or delegated, against all costs and expenses (including counsel fees) and liabilities (including sums paid in settlement of a claim) arising out of any act or omission to act in connection with the Plan, unless arising out of such Person's own fraud or willful misconduct; *provided, however*, that approval of the Board shall be required for the payment of any amount in settlement of a claim against any such Person. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such Persons may be entitled under the Company's certificate or articles of incorporation or by-laws, each as may be amended from time to time, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Payments Following Accidents or Illness</u>. If the Committee shall find that any Person to whom any amount is payable under the Plan is unable to care for his or her affairs because of illness or accident, or is a minor, or has died, then any payment due to such Person or his or her estate (unless a prior claim therefor has been made by a duly appointed legal representative) may, if the Committee so directs the Company, be paid to his or her spouse, child, relative, an institution maintaining or having custody of such Person, or any other Person deemed by the Committee to be a proper recipient on behalf of such Person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Governing Law</u>. The Plan shall be governed by and construed in accordance with the laws of State of Delaware without reference to the principles of conflicts of laws thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Electronic Delivery</u>. Any reference herein to a "written" agreement or document or "writing" will include any agreement or document delivered electronically or posted on the Company's intranet (or other shared electronic medium controlled or authorized by the Company to which the Participant has access) to the extent permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Arbitration</u>. All disputes and claims of any nature that a Participant (or such Participant's transferee or estate) may have against the Company arising out of or in any way related to the Plan or any Award Agreement shall be submitted to and resolved exclusively by binding arbitration conducted in Tampa, Florida (or such other location as the parties thereto may

------

agree) in accordance with the applicable rules of the American Arbitration Association then in effect, and the arbitration shall be heard and determined by a panel of three arbitrators in accordance with such rules (except that in the event of any inconsistency between such rules and this Section 20(n), the provisions of this Section 20(n) shall control). The arbitration panel may not modify the arbitration rules specified above without the prior written approval of all parties to the arbitration. Within ten business days after the receipt of a written demand, each party shall designate one arbitrator, each of whom shall have experience involving complex business or legal matters, but shall not have any prior, existing or potential material business relationship with any party to the arbitration. The two arbitrators so designated shall select a third arbitrator, who shall preside over the arbitration, shall be similarly qualified as the two arbitrators and shall have no prior, existing or potential material business relationship with any party to the arbitration; *provided* that if the two arbitrators are unable to agree upon the selection of such third arbitrator, such third arbitrator shall be designated in accordance with the arbitration rules referred to above. The arbitrators will decide the dispute by majority decision, and the decision shall be rendered in writing and shall bear the signatures of the arbitrators and the party or parties who shall be charged therewith, or the allocation of the expenses among the parties in the discretion of the panel. The arbitration decision shall be rendered as soon as possible, but in any event not later than 120 days after the constitution of the arbitration panel. The arbitration decision shall be final and binding upon all parties to the arbitration. The parties hereto agree that judgment upon any award rendered by the arbitration panel may be entered in the United States District Court for the Middle District of Florida or any court sitting in Tampa, Florida. To the maximum extent permitted by law, the parties hereby irrevocably waive any right of appeal from any judgment rendered upon any such arbitration award in any such court. Notwithstanding the foregoing, any party may seek injunctive relief in any such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Statute of Limitations</u>. A Participant or any other person filing a claim for benefits under the Plan must file the claim within one (1) year of the date the Participant or other person knew or should have known of the facts giving rise to the claim. This one-year statute of limitations will apply in any forum where a Participant or any other person may file a claim and, unless the Company waives the time limits set forth above in its sole discretion, any claim not brought within the time periods specified shall be waived and forever barred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Funding</u>. No provision of the Plan shall require the Company, for the purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall the Company be required to maintain separate bank accounts, books, records, or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights under the Plan other than as unsecured general creditors of the Company, except that insofar as they may have become entitled to payment of additional compensation by performance of services, they shall have the same rights as other employees and service providers under general law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Reliance on Reports</u>. Each member of the Committee and each member of the Board shall be fully justified in relying, acting, or failing to act, and shall not be liable for having so relied, acted, or failed to act in good faith, upon any report made by the independent public accountant of the Company and its Affiliates and upon any other information furnished in connection with the Plan by any Person or Persons other than such member.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Titles and Headings</u>. The titles and headings of the sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.

\* \* \*

ADOPTED BY THE BOARD OF DIRECTORS: , 2026

APPROVED BY THE STOCKHOLDERS: , 2026

TERMINATION DATE:<u> </u>, 2036

## Exhibit 10.13

**Exhibit 10.13** 

**SAFEPOINT HOLDINGS, INC.** 

**2026 EMPLOYEE STOCK PURCHASE PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **General**; **Purpose.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Plan provides a means by which Eligible Employees may be given an opportunity to purchase shares of Common Stock pursuant to an Employee Stock Purchase Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company, by means of the Plan, seeks to retain the services of existing Employees, to secure and retain the services of new Employees and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Related Corporations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company intends (but makes no undertaking or representation to maintain) the Plan to qualify as an Employee Stock Purchase Plan. The provisions of the Plan, accordingly, will be construed in a manner that is consistent with the requirements of Section 423 of the Code. In addition, under the Plan, the Company may make separate Offerings which vary in terms (provided that such terms are not inconsistent with the provisions of the Plan or the requirements of an Employee Stock Purchase Plan), and the Company will designate which Designated Companies will participate in each separate Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Definitions.**

For purposes of the Plan, the following terms shall be defined as set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Affiliate</u>" means, with respect to a Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Board</u>" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Change in Capitalization</u>" means any change in the capital structure of the Company by reason of any stock split, reverse stock split, stock dividend, extraordinary cash dividend, subdivision, combination or reclassification of shares that may be issued under the Plan, any recapitalization, any merger, any consolidation, any spin off, any reorganization or any partial or complete liquidation, or any other corporate transaction or event having an effect similar to the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Change in Control</u>" means such term as defined in the Company's 2026 Stock Incentive Plan, as amended or amended and restated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Code</u>" means the Internal Revenue Code of 1986, as amended, and all rules and regulations promulgated thereunder. Any reference to any section of the Code will also be a reference to any successor provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Committee</u>" means the Compensation Committee of the Board or such other committee or subcommittee of the Board appointed from time to time by the Board. To the extent that no Committee exists that has the authority to administer the Plan, the functions of the Committee will be exercised by the Board.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Common Stock</u>" means the Common Stock, $0.001 par value per share, of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Compensation</u>" means, with respect to a Participant, (i) the total compensation paid in cash to such Participant by a Designated Company, including salaries, wages, bonuses, incentive compensation, commissions, overtime pay and shift premiums, plus (ii) any pre-tax contributions made by such Participant under Section 401(k) or 125 of the Code. "<u>Compensation</u>" excludes all non-cash items, moving or relocation allowances, cost-of-living equalization payments, car allowances, tuition reimbursements, imputed income attributable to cars or life insurance, severance pay, fringe benefits, contributions or benefits received under employee benefit plans, income attributable to the exercise of stock options, and similar items. The Committee will determine whether a particular item is included in Compensation. Such determination shall be conclusive and binding on all persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Company</u>" means Safepoint Holdings, Inc., a Delaware corporation, and its successors by operation of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Contributions</u>" means the payroll deductions that a Participant contributes to fund the exercise of a Purchase Right. If required by applicable law or regulation and if specifically provided for in the Offering, a Participant may make additional payments into the Participant's account, and then only if the Participant has not already had the maximum permitted amount withheld during the Offering through payroll deductions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Designated Broker</u>" means the financial services firm or other agent designated by the Company to maintain Share Accounts on behalf of Participants who have purchased shares of Common Stock under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Designated Company</u>" means any Related Corporation selected by the Committee as participating in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Director</u>" means a member of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>Effective Date</u>" means , 2026, which is the date on which the Plan was approved by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "<u>Eligible Employee</u>" means an Employee who meets the requirements set forth in the document(s) governing the Offering for eligibility to participate in the Offering, provided that such Employee also meets the requirements for eligibility to participate set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "<u>Employee</u>" means any person, including an Officer or Director, who is treated as an employee in the records of the Company or a Related Corporation. However, service solely as a Director, or payment of a fee for such services, will not cause a Director to be considered an "Employee" for purposes of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "<u>Employee Stock Purchase Plan</u>" means an "employee stock purchase plan" as defined under, and interpreted in accordance with, Section 423(b) of the Code.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and all rules, regulations and successor provisions promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "<u>Fair Market Value</u>" means, as of any date when the Stock is listed on one or more national securities exchanges, the closing price reported on the principal national securities exchange on which such Stock is listed and traded on the date of determination or, if the closing price is not reported on such date of determination, the closing price reported on the most recent date prior to the date of determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "<u>Offering</u>" means the grant to Eligible Employees of Purchase Rights, with the exercise of those Purchase Rights automatically occurring at the end of the Offering Period. The terms and conditions of an Offering will generally be set forth in the "<u>Offering Document</u>" approved by the Committee for that Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "<u>Offering Date</u>" means a date selected by the Committee for an Offering to commence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>Offering Period</u>" means the period of time of an Offering, commencing on an Offering Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "<u>Officer</u>" means a person who is an officer of the Company or a Related Corporation within the meaning of Section 16 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "<u>Participant</u>" means an Eligible Employee who is actively participating in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "<u>Person</u>" means any individual, corporation, partnership, firm, joint venture, association, joint-stock company, trust, unincorporated organization, or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "<u>Plan</u>" means this Safepoint Holdings, Inc. 2026 Employee Stock Purchase Plan, as the same may be amended and/or restated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "<u>Purchase Date</u>" means the last Trading Day of an Offering Period on which Purchase Rights will be exercised and on which purchases of shares of Common Stock will be carried out in accordance with such Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "<u>Purchase Right</u>" means an option to purchase shares of Common Stock granted pursuant to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "<u>Related Corporation</u>" means any "parent corporation" or "subsidiary corporation" of the Company whether now or subsequently established, as those terms are defined in Sections 424(e) and (f), respectively, of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "<u>Securities Act</u>" means the Securities Act of 1933, as amended, and all rules and regulations promulgated thereunder. Any reference to any section of the Securities Act will also be a reference to any successor provision.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "<u>Share Account</u>" means an account into which shares of Common Stock purchased with a Participant's accumulated Contributions at the end of an Offering Period are held on behalf of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "<u>Trading Day</u>" means any day on which the NYSE, or any successors thereto, is open for trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Administration.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Committee will administer the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Committee will have the power, subject to, and within the limitations of, the express provisions of the Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To determine how and when Purchase Rights will be granted and the terms and conditions of each Offering (which need not be identical);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) To designate from time to time which Related Corporations of the Company will be eligible to participate in the Plan as Designated Companies, which Related Corporations may be excluded from participation in the Plan, and which Designated Companies will participate in each separate Offering (to the extent that the Company makes separate Offerings);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To construe and interpret the Plan and Purchase Rights, and to establish, amend, and revoke rules and regulations for the Plan's administration. The Committee, in the exercise of this power, may correct any defect, omission, or inconsistency in the Plan, in a manner and to the extent it deems necessary or expedient to make the Plan fully effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) To settle all controversies regarding the Plan and Purchase Rights granted under the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) To suspend or terminate the Plan at any time as provided in Section 13(b) below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) To amend the Plan at any time as provided in Section 13(a) below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Generally, to exercise such powers and to perform such acts as it deems necessary or expedient to promote the best interests of the Company and its Related Corporations and to carry out the intent that the Plan be treated as an Employee Stock Purchase Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) To adopt such procedures and sub-plans as are necessary or appropriate to permit or facilitate participation in the Plan by Employees who are foreign nationals or employed or located outside the United States.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Committee may, in its sole discretion, designate Employees and professional advisors to assist it in the administration of the Plan and (to the extent permitted by applicable laws, rules, and regulations) may grant authority to Employees and/or Directors to execute agreements or other documents on behalf of the Committee relating to the Plan. The Committee may, in its sole discretion, employ legal counsel, consultants, and agents as it may deem desirable for the administration of the Plan and may rely upon any opinion received from any such counsel or consultant and any computation received from any such consultant or agent. Expenses incurred in the engagement of any such counsel, consultant, or agent will be paid by the Company. Neither the Board, the Committee, any Employee to whom authority has been delegated pursuant to this Section 3(c), nor any current or former Director, will be liable for any action or determination made in good faith with respect to the Plan, and to the maximum extent permitted by applicable laws, rules, and regulations, no current or former Director or Employee to whom authority has been delegated pursuant to this Section 3(c) will be liable for any action or determination made in good faith with respect to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All determinations, interpretations, and constructions made by the Committee in good faith will not be subject to review by any person and will be final, binding, and conclusive on all persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Shares of Common Stock Subject to the Plan.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of Section 12(a) below relating to Changes in Capitalization, the number of shares of Common Stock reserved and available for delivery under the Plan shall equal , as the same may, at the discretion of the Board, be increased annually on the first date of each fiscal year during the term of the Plan following the year in which the Effective Date occurs, by an amount of shares equal to the lowest of (A) the number of shares representing one percent (1%) of the Company's outstanding shares of Common Stock on such date, (B) shares, and (C) such lesser number of shares as determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any Purchase Right granted under the Plan terminates without having been exercised in full, the shares of Common Stock not purchased under such Purchase Right will again become available for issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The shares of Common Stock purchasable under the Plan will be shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the Company on the open market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Grant of Purchase Rights; Offering.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Committee may from time to time grant or provide for the grant of Purchase Rights to Eligible Employees under an Offering (consisting of one or more Offering Periods) on an Offering Date or Offering Dates selected by the Committee. Each Offering will be in such form and will contain such terms and conditions as the Committee will deem appropriate, and will comply with the requirement of Section 423(b)(5) of the Code that all Employees granted Purchase Rights will have the same rights and privileges. The terms and conditions of an Offering will be incorporated by reference into the Plan and treated as part of the Plan. The terms and conditions of separate Offerings need not be identical, but each Offering will include (through incorporation of the provisions of this Plan by reference in the document comprising the Offering or otherwise) the period during which the Offering will be effective, which period will not exceed 27 months beginning with the Offering Date, and the substance of the provisions contained in Sections 6 through 9, inclusive.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a Participant has more than one Purchase Right outstanding under the Plan, unless the Participant otherwise indicates in forms delivered to the Company: (i) each form will apply to all of the Participant's Purchase Rights under the Plan, and (ii) a Purchase Right with a lower exercise price (or an earlier-granted Purchase Right, if different Purchase Rights have identical exercise prices) will be exercised to the fullest possible extent before a Purchase Right with a higher exercise price (or a later-granted Purchase Right if different Purchase Rights have identical exercise prices) will be exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Eligibility.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Purchase Rights may be granted only to Eligible Employees. An Employee will not be eligible to be granted Purchase Rights unless, on the Offering Date, the Employee has been in the employ of the Company or a Related Corporation, as the case may be, for such continuous period preceding such Offering Date as the Committee may require, but in no event will the required period of continuous employment be equal to or greater than two (2) years. In addition, the Committee may provide that no Employee will be eligible to be granted Purchase Rights under the Plan unless, on the Offering Date, such Employee's customary employment with the Company or the Related Corporation, as applicable, is more than twenty (20) hours per week and more than five months per calendar year or such other criteria as the Committee may determine consistent with Section 423 of the Code, unless such exclusion from eligibility is prohibited by applicable laws or regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Employee will be eligible for the grant of any Purchase Rights if, immediately after any such Purchase Rights are granted, such Employee owns stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any Related Corporation. For purposes of this Section 6(b), the rules of Section 424(d) of the Code will apply in determining the stock ownership of any Employee, and stock which such Employee may purchase under all outstanding Purchase Rights and options will be treated as stock owned by such Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As specified by Section 423(b)(8) of the Code, an Eligible Employee may be granted Purchase Rights only if such Purchase Rights, together with any other rights granted under all Employee Stock Purchase Plans of the Company and any Related Corporations, do not permit such Eligible Employee's rights to purchase stock of the Company or any Related Corporation to accrue at a rate which exceeds $25,000 of Fair Market Value of such stock (determined at the time such rights are granted, and which, with respect to the Plan, will be determined as of their respective Offering Dates) for each calendar year in which such rights are outstanding at any time.

For all purposes under this Section 6(c), the Fair Market Value of the Common Stock shall be determined at the beginning of the applicable Offering Period. To the extent that any Purchase Right would, but for the limitations set forth in this Section 6(c), permit an Eligible Employee to purchase shares of Common Stock with a Fair Market Value in excess of the limits set forth in this Section (c)6(c), such Purchase Right shall be interpreted to limit the number of shares of Common Stock that such Eligible Employee may purchase to the maximum number of shares permitted after application of this Section 6(c).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Officers of the Company and any Designated Company, if they are otherwise Eligible Employees, will be eligible to participate in Offerings under the Plan. Notwithstanding the foregoing, the Committee may provide in an Offering that Employees who are highly compensated Employees within the meaning of Section 423(b)(4)(D) of the Code will not be eligible to participate, unless such exclusion from eligibility is prohibited by applicable laws or regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Contributions; Purchase Rights; Purchase Price.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of this Section 7, on each Offering Date, each Participant, pursuant to an Offering made under the Plan, will be granted a Purchase Right to purchase, on the Purchase Date, up to that number of shares of Common Stock determined by dividing the Participant's accumulated Contributions by the applicable purchase price determined in accordance with Section 7(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with each Offering made under the Plan, the Committee may specify (i) a maximum number of shares of Common Stock that may be purchased by any Participant on any Purchase Date during such Offering, (ii) a maximum aggregate number of shares of Common Stock that may be purchased by all Participants pursuant to such Offering and/or (iii) a maximum aggregate number of shares of Common Stock that may be purchased by all Participants on any Purchase Date under the Offering. If the aggregate purchase of shares of Common Stock issuable upon exercise of Purchase Rights granted under the Offering would exceed any such maximum aggregate number, then, in the absence of any Committee action otherwise, a pro rata (based on each Participant's accumulated Contributions) allocation of the shares of Common Stock available will be made in as nearly a uniform manner as will be practicable and equitable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to the provisions of Section 12(a) below related to Changes in Capitalization and to such other limitations determined by the Committee, the purchase price of shares of Common Stock acquired pursuant to Purchase Rights will be not less than an amount equal to the lesser of (i) eighty-five percent (85%) of the Fair Market Value of the shares of Common Stock on the applicable Purchase Date and (ii) eighty-five]percent (85%) of the Fair Market Value of the shares of Common Stock on the first Trading Day of the applicable Offering Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Contributions; Participation; Withdrawal; Termination of Employment.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During an Offering Period, a Participant's Contributions will be limited to a percentage, or with a maximum dollar amount, as designated by the Committee, but in either case not exceeding fifteen percent (15%) of such Participant's Compensation in respect of such Offering Period.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) An Eligible Employee who chooses to become a Participant must, unless otherwise required under applicable laws or regulations, elect to authorize payroll deductions as the means of making Contributions by completing and delivering to the Company, within the time specified in the Offering, an enrollment form provided by the Company. Except as may otherwise be determined by the Committee, a Participant's completion of an enrollment form with respect to any Offering will enroll such Participant in the Plan for each subsequent Offering on the terms contained therein until the Participant either submits a new enrollment form, withdraws from participation under the Plan as provided in Section 8(c) hereof, or otherwise becomes ineligible to participate in the Plan. The enrollment form will specify the amount of Contributions not to exceed the maximum amount specified by the Committee. Each Participant's Contributions will be credited to a bookkeeping account for such Participant under the Plan and will be deposited with the general funds of the Company except where applicable laws or regulations require that Contributions be deposited with a third party or otherwise be segregated. If permitted in the Offering, a Participant may begin such Contributions with the first payroll occurring on or after the Offering Date (or, in the case of a payroll date that occurs after the end of the prior Offering but before the Offering Date of the next new Offering, Contributions from such payroll will be included in the new Offering). If permitted in the Offering, a Participant may thereafter reduce (including to zero) the Participant's Contributions by completing and delivering a new enrollment form to the Company within the time specified in the Offering. If required under applicable laws or regulations, in addition to or instead of making Contributions by payroll deductions, a Participant may make Contributions through a payment by cash, check or wire transfer prior to a Purchase Date, in a manner directed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) During an Offering, a Participant may cease making Contributions and withdraw from the Offering by delivering to the Company a withdrawal form provided by the Company. The Company may impose a deadline before a Purchase Date for withdrawing. Upon the Participant's timely withdrawal in accordance with the deadline imposed by the Company, such Participant's Purchase Right in that Offering will immediately terminate and the Company will distribute to such Participant all of the Participant's accumulated but unused Contributions as soon as practicable thereafter. A Participant's withdrawal from that Offering will have no effect upon the Participant's eligibility to participate in any other Offerings under the Plan, but such Participant will be required to deliver a new enrollment form to participate in subsequent Offerings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Unless otherwise required by applicable laws or regulations, Purchase Rights granted pursuant to any Offering under the Plan will terminate immediately if the Participant either (i) is no longer an Employee for any reason or for no reason (subject to any post-employment participation period required by law) or (ii) is otherwise no longer eligible to participate. The Company will distribute to such individual all of such individual's accumulated but unused Contributions as soon as practicable thereafter. For purposes of the Plan, a Participant will continue to be an Employee while the Participant is on military leave, sick leave or other bona fide leave of absence approved by the Company or a Designated Company in writing that meets the requirements of Treas. Reg. § 1.421-1(h)(2), if the leave does not exceed three (3) months, or if longer, so long as the Participant's right to reemployment with the Company or a Designated Company is provided either by statute or by contract. If the period of leave exceeds three (3) months and the Participant's right to reemployment is not provided either by statute or by contract, the Participant will cease to be an Employee on the first day immediately following such three (3)-month period. In any event, a Participant will cease to be an Employee when the approved leave ends unless the Participant immediately returns to work.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) During a Participant's lifetime, Purchase Rights will be exercisable only by such Participant. Purchase Rights are not transferable by a Participant, except by will, or by the laws of descent and distribution. If a Participant dies, the Company will deliver any shares of Common Stock and/or Contributions to the executor or administrator of the estate of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Unless otherwise specified in the Offering or required by applicable law, the Company will have no obligation to pay interest on Contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Exercise of Purchase Rights.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On each Purchase Date, each Participant's accumulated Contributions will be applied to the purchase of shares of Common Stock, up to the maximum number of shares of Common Stock permitted by the Plan and the applicable Offering, at the purchase price specified in the Offering. Unless determined by the Committee, the purchase price for each Offering will be the lesser of (i) eighty-five percent (85%) of the Fair Market Value of the shares of Common Stock on the applicable Purchase Date and (ii) eighty-five percent (85%) of the Fair Market Value of the shares of Common Stock on the first Trading Day of the applicable Offering Period. No fractional shares will be issued unless specifically provided for in the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any amount of accumulated Contributions remains in a Participant's account after the purchase of shares of Common Stock (whether as a result of the application of purchase limits or otherwise) and such remaining amount is less than the amount required to purchase one share of Common Stock on the final Purchase Date of an Offering, then such remaining amount will be held in such Participant's account for the purchase of shares of Common Stock under the next Offering under the Plan, unless such Participant withdraws from or is not eligible to participate in such Offering, in which case such amount will be distributed to such Participant after the final Purchase Date, without interest (unless otherwise required by applicable law). If the amount of Contributions remaining in a Participant's account after the purchase of shares of Common Stock is at least equal to the amount required to purchase one whole share of Common Stock on the final Purchase Date of an Offering, then such remaining amount will not roll over to the next Offering and will instead be distributed in full to such Participant after the final Purchase Date of such Offering without interest (unless otherwise required by applicable law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Purchase Rights may be exercised to any extent unless the shares of Common Stock to be issued upon such exercise under the Plan are covered by an effective registration statement pursuant to the Securities Act and the Plan is in material compliance with all applicable U.S. federal and state, foreign, and other securities and other laws applicable to the Plan. If on a Purchase Date the shares of Common Stock are not so registered or the Plan is not in such compliance, no Purchase Rights will be exercised on such Purchase Date, and the Purchase Date will be delayed until the shares of Common Stock are subject to such an effective registration statement and the Plan is in material compliance, except that such delay may not exceed six (6) months. If, on the Purchase Date, as delayed to the maximum extent permissible, the shares of Common Stock are not registered and the Plan is not in material compliance with all applicable laws or regulations, as determined by the Committee in its sole discretion, no Purchase Rights will be exercised and all accumulated but unused Contributions will be distributed to the Participants without interest, unless otherwise required by applicable laws or regulations.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Committee may, in its discretion, establish a holding period for any shares of Common Stock purchased in a particular Offering unless such holding period is prohibited by applicable laws or regulations. The holding period, if any, will commence on the Purchase Date and will not exceed six (6) months; *provided*, that the holding period, if any, with respect to any Participant will end automatically if either (i) the Participant is no longer an Employee, or (ii) a Change in Control occurs. During such holding period, the holder of the shares of Common Stock will not be permitted to sell such shares and the shares will be designated with an applicable resale restriction. The applicable holding period will be set forth in the Offering Document for the applicable Offering, and each Participant will be required to agree to such holding period as a condition to participating in the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Transfer of Shares.**

As soon as reasonably practicable after each Purchase Date, the Company will record in the books of the Company, or in the Committee's discretion arrange for the delivery to each Participant of, the shares of Common Stock purchased upon exercise of the Participant's Purchase Rights. The Committee may permit or require that the shares be deposited directly into a Share Account established in the name of the Participant with a Designated Broker and may require that the shares of Common Stock be retained with such Designated Broker for a specified period of time. A Participant will not be deemed to be the holder of, or to have any voting, dividend or other rights of a holder with respect to, shares of Common Stock subject to Purchase Rights unless and until the Participant's shares of Common Stock acquired upon exercise of Purchase Rights have been delivered pursuant to this Section 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Covenants of the Company.**

The Company will seek to obtain from each U.S. federal or state, foreign or other regulatory commission or agency having jurisdiction over the Plan, such authority as may be required to grant Purchase Rights and issue and sell shares of Common Stock thereunder unless the Company determines in its sole discretion, that doing so would cause the Company to incur costs that are unreasonable. If, after commercially reasonable efforts, the Company is unable to obtain the authority that counsel for the Company deems necessary for the grant of Purchase Rights or the lawful issuance and sale of Common Stock under the Plan, and at a commercially reasonable cost, the Company will be relieved from any liability for failure to grant Purchase Rights and/or to issue and sell Common Stock upon exercise of such Purchase Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Adjustments Upon Changes in Common Stock; Change in Control.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of a Change in Capitalization, in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, the Committee will, in such manner as it deems equitable, appropriately and proportionately adjust: (i) the class(es) and maximum number of securities subject to the Plan pursuant to Section 4(a), (ii) the class(es) and number of securities subject to, and the purchase price applicable to, outstanding Offerings and Purchase Rights, and (iii) the class(es) and number of securities that are

------

the subject of the purchase limits under each ongoing Offering (including the limits set forth in Section 7(a) above). In addition, if any change in the capital structure or business of the Company that is not a Change in Capitalization occurs, then the Committee, in its sole discretion, may make adjustments to the Plan in such manner as it deems appropriate and equitable to prevent substantial dilution or enlargement of the rights granted to, or available for, Participants under the Plan. The Committee will make these adjustments in its discretion, and its determination will be final, binding, and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, except as provided by the Committee, in the event of a Change in Control, then: (i) any surviving corporation or acquiring corporation (or the surviving or acquiring corporation's parent company) may assume or continue outstanding Purchase Rights or may substitute similar rights (including a right to acquire the same consideration paid to the stockholders in the Change in Control) for outstanding Purchase Rights, or (ii) if any surviving or acquiring corporation (or its parent company) does not assume or continue such Purchase Rights or does not substitute similar rights for such Purchase Rights, then the Participants' accumulated Contributions will be used to purchase shares of Common Stock within ten (10) business days prior to the Change in Control under the outstanding Purchase Rights, and the Purchase Rights will terminate immediately after such purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Amendment; Termination or Suspension of the Plan.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board or the Committee may amend the Plan at any time in any respect the Board or the Committee, as applicable, deems necessary or advisable. However, stockholder approval will be required for any amendment of the Plan for which stockholder approval is required by applicable laws, regulations or listing requirements, including, without limitation, any amendment that either (i) materially increases the number of shares of Common Stock available for issuance under the Plan, (ii) materially expands the class of individuals eligible to become Participants and receive Purchase Rights, (iii) materially increases the benefits accruing to Participants under the Plan or materially reduces the price at which shares of Common Stock may be purchased under the Plan, or (iv) expands the types of awards available for issuance under the Plan, but in each of (i) through (iv) above only to the extent stockholder approval is required by applicable laws, regulations or listing requirements. In addition, no amendment may make any change to any outstanding Purchase Right which materially adversely affects such Purchase Right without the consent of the person to whom such Purchase Right was granted, except (x) as provided in Section 12(a) relating to Changes in Capitalization, (y) to the extent necessary to comply with any laws, listing requirements, or governmental regulations (including, without limitation, the provisions of Section 423 of the Code and the regulations and other interpretive guidance issued thereunder relating to Employee Stock Purchase Plans) including without limitation any such regulations or other guidance that may be issued or amended after the Effective Date, or (z) as necessary to obtain or maintain any special tax, listing, or regulatory treatment. For the avoidance of doubt, in no event shall the Committee's or the Board's exercise of any discretion afforded to it under the Plan be considered an amendment to the Plan for purposes of this Section 13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board or the Committee may suspend or terminate the Plan at any time. No Purchase Rights may be granted under the Plan while the Plan is suspended or after it is terminated. In addition, the Board or the Committee may terminate an Offering if the Board or the Committee determines that the termination of the Offering is in the best interests of the Company and its stockholders.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **Effective Date of the Plan; Term of Plan.**

The Plan will become effective immediately prior to and contingent upon the Effective Date. No Purchase Rights will be exercised unless and until the Plan has been approved by the stockholders of the Company, which approval must be within twelve (12) months before or after the date the Plan is adopted (or if required under Section 13(a) above, materially amended) by the Board. Subject to approval by the stockholders of the Company in accordance with this Section 14, the Plan shall be in effect until the tenth (10th) anniversary of the date of the initial adoption of the Plan by the Board, unless sooner terminated under Section 13 hereof. In the event the Company's stockholders do not approve this Plan pursuant to this Section 14, neither this Plan nor any elections made hereunder shall be of any force or effect, any outstanding Purchase Right shall be cancelled for no consideration, and all amounts deducted from each Participant's paycheck shall be repaid to such Participant as soon as practicable without interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **Miscellaneous Provisions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Proceeds from the sale of shares of Common Stock pursuant to Purchase Rights will constitute general funds of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent required by applicable law, rules, or regulations, a Participant will be required to make arrangements satisfactory to the Company for the payment of any withholding or similar tax obligations that arise in connection with the Plan or any Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither the Plan nor any Offering hereunder will give any Participant or other Employee any right with respect to continuance of employment by the Company or any Related Corporation, nor will they be a limitation in any way on the right of the Company or any Related Corporation by which an Employee is employed or retained to terminate such Employee's employment at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Plan and actions taken in connection herewith will be governed and construed in accordance with the laws of the State of Delaware (regardless of the law that might otherwise govern under applicable Delaware principles of conflict of laws).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If any provision of the Plan will be held invalid or unenforceable, such invalidity or unenforceability will not affect any other provisions hereof, and the Plan will be construed and enforced as if such provisions had not been included.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All disputes and claims of any nature that a Participant (or such Participant's transferee or estate) may have against the Company arising out of or in any way related to the Plan must be submitted solely and exclusively to binding arbitration in accordance with the then-current employment arbitration rules and procedures of the American Arbitration Association to be held in Tampa, Florida. The arbitration shall be heard and determined by a panel of three arbitrators in accordance with such rules (except that in the event of any inconsistency between such rules and this Section 15(f), the provisions of this Section 15(f) shall control). The arbitration panel may not modify the arbitration rules specified above without the prior written approval of all parties to

------

the arbitration. Within ten business days after the receipt of a written demand, each party shall designate one arbitrator, each of whom shall have experience involving complex business or legal matters, but shall not have any prior, existing or potential material business relationship with any party to the arbitration. The two arbitrators so designated shall select a third arbitrator, who shall preside over the arbitration, shall be similarly qualified as the two arbitrators and shall have no prior, existing or potential material business relationship with any party to the arbitration; *provided* that if the two arbitrators are unable to agree upon the selection of such third arbitrator, such third arbitrator shall be designated in accordance with the arbitration rules referred to above. The arbitrators will decide the dispute by majority decision, and the decision shall be rendered in writing and shall bear the signatures of the arbitrators and the party or parties who shall be charged therewith, or the allocation of the expenses among the parties in the discretion of the panel. The arbitration decision shall be rendered as soon as possible, but in any event not later than 120 days after the constitution of the arbitration panel. The arbitration decision shall be final and binding upon all parties to the arbitration. The parties hereto agree that judgment upon any disputes and claims arising out of or in any way related to the Plan rendered by the arbitration panel may be entered in the United States District Court for the Middle District of Florida or any court sitting in Tampa, Florida. To the maximum extent permitted by law, the parties hereby irrevocably waive any right of appeal from any judgment rendered upon any such arbitration award in any such court. Notwithstanding the foregoing, any party may seek injunctive relief in any such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The headings and captions herein are provided for reference and convenience only, will not be considered part of the Plan, and will not be employed in the construction of the Plan.

ADOPTED BY THE BOARD OF DIRECTORS:<u> </u>, 2026

APPROVED BY THE STOCKHOLDERS:<u> </u>, 2026

## Exhibit 10.14

**Exhibit 10.14** 

**SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT** 

This SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "***Agreement***") is made and entered into as of this 3rd day of September, 2024, by and between Safepoint Holdings, Inc., a Florida corporation (the "***Company***"), and David Flitman ("***Executive***").

<u>W I T N E S S E T H</u> :

WHEREAS, Executive is currently employed by the Company as its Chief Executive Officer; and

WHEREAS, Executive is a party to that certain amended and restated employment agreement with the Company, dated April 13, 2016 (the "***Prior Agreement***"); and

WHEREAS, the Company desires to employ Executive and to enter into this Agreement embodying the terms of such employment, and Executive desires to enter into this Agreement and to accept such employment, subject to the terms and provisions of this Agreement.

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are mutually acknowledged, the Company and Executive hereby agree as follows:

**Section 1. Definitions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "***Accrued Obligations***" shall mean (i) all accrued but unpaid Base Salary through the date of termination of Executive's employment, (ii) any unpaid or unreimbursed expenses incurred in accordance with Section 7 hereof, and (iii) any benefits provided under the Company's employee benefit plans upon a termination of employment (excluding any employee benefit plan providing for severance or similar benefits), in accordance with the terms contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "***Agreement***" shall have the meaning set forth in the preamble hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "***Annual Bonus***" shall have the meaning set forth in Section 4(b) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "***Base Salary***" shall mean the salary provided for in Section 4(a) hereof or any increased salary granted to Executive pursuant to Section 4(a) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "***Board***" shall mean the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "***Cause***" shall mean (i) Executive's act(s) of gross negligence or willful misconduct in the course of Executive's employment hereunder, (ii) willful failure or refusal by Executive to perform in any material respect Executive's duties or responsibilities, (iii) misappropriation (or attempted misappropriation) by Executive of any assets or business opportunities of the Company or any other member of the Company Group, (iv) embezzlement or fraud committed (or attempted) by Executive, at Executive's direction, or with Executive's prior actual knowledge, (v) Executive's conviction of or pleading "guilty" or " no contest" to, (x) a felony or (y) any other

------

criminal charge that has, or could be reasonably expected to have, an adverse impact on the performance of Executive's duties to the Company or any other member of the Company Group or otherwise result in material injury to the reputation or business of the Company or any other member of the Company Group, (vi) any material violation by Executive of the policies of the Company, including but not limited to those relating to sexual harassment or business conduct, and those otherwise set forth in the manuals or statements of policy of the Company, or (vii) Executive's material breach of this Agreement or breach of the Restrictive Covenant Agreement. If, within thirty (30) days subsequent to Executive's termination for any reason other than by the Company for Cause, the Company determines that Executive's employment could have been terminated for Cause, Executive's employment will be deemed to have been terminated for Cause for all purposes, and Executive will be required to repay or return to the Company all amounts and benefits received pursuant to this Agreement or otherwise on account of such termination that would not have been payable or provided to Executive had such termination been by the Company for Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "***COBRA***" shall mean Part 6 of Title I of the Employee Retirement Income Security Act of 1974, as amended, and Section 4980B of the Code, and the rules and regulations promulgated under either of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "***COBRA Severance Term***" shall mean the eighteen (18) month period following Executive's termination by the Company without Cause (other than by reason of death or Disability) or by Executive for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "***Code***" shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "***Company***" shall have the meaning set forth in the preamble hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "***Company Group***" shall mean the Company together with any direct or indirect subsidiaries of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "***Compensation Committee***" shall mean the Board or the committee of the Board designated to make compensation decisions relating to senior executive officers of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "***Delay Period***" shall have the meaning set forth in Section 14(a) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "***Disability***" shall mean any physical or mental disability or infirmity of Executive that prevents the performance of Executive's duties for a period of (i) ninety (90) consecutive days or (ii) one hundred twenty (120) non-consecutive days during any twelve (12) month period. Any question as to the existence, extent, or potentiality of Executive's Disability upon which Executive and the Company cannot agree shall be determined by a qualified, independent physician selected by the Company and approved by Executive (which approval shall not be unreasonably withheld). The determination of any such physician shall be final and conclusive for all purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "***Executive***" shall have the meaning set forth in the preamble hereto.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "***Good Reason***" shall mean, without Executive's consent, (i) a material diminution in Executive's title, duties, or responsibilities as set forth in Section 3 hereof, (ii) a material reduction in Base Salary set forth in Section 4(a) hereof or Annual Bonus opportunity set forth in Section 4(b) hereof (other than pursuant to an across-the-board reduction applicable to all similarly situated executives), (iii) the relocation of Executive's principal place of employment (as provided in Section 3(c) hereof) more than fifty (50) miles from its current location, or (iv) any other material breach of a provision of this Agreement by the Company (other than a provision that is covered by clause (i), (ii), or (iii) above). Executive acknowledges and agrees that Executive's exclusive remedy in the event of any breach of this Agreement shall be to assert Good Reason pursuant to the terms and conditions of Section 8(e) hereof. Notwithstanding the foregoing, during the Term, in the event that the Board reasonably believes that Executive may have engaged in conduct that could constitute Cause hereunder, the Board may, in its sole and absolute discretion, suspend Executive from performing Executive's duties hereunder, and in no event shall any such suspension constitute an event pursuant to which Executive may terminate employment with Good Reason or otherwise constitute a breach hereunder; *provided,* that no such suspension shall alter the Company's obligations under this Agreement during such period of suspension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "***Person***" shall mean any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust (charitable or non-charitable), unincorporated organization, or other form of business entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "***Prior Agreement***" shall have the meaning set forth in the recitals hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "***Release of Claims***" shall mean the Release of Claims in substantially the same form attached hereto as <u>Exhibit B</u> (as the same may be revised from time to time by the Company upon the advice of counsel).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "***Restrictive Covenant Agreement***" shall mean the Restrictive Covenant Agreement attached hereto as <u>Exhibit A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "***Severance Benefits***" shall have the meaning set forth in Section 8(h) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "***Severance Term***" shall mean the twenty-four (24) month period following Executive's termination by the Company without Cause (other than by reason of death or Disability) or by Executive for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "***Term***" shall mean the period specified in Section 2 hereof.

**Section 2. Acceptance and Term.** 

The Company agrees to employ Executive, and Executive agrees to serve the Company, on the terms and conditions set forth herein. The Term shall commence on the date hereof and shall continue until terminated as provided in Section 8 hereof (the "***Term***").

------

**Section 3. Position, Duties, and Responsibilities; Place of Performance.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Position, Duties, and Responsibilities</u>. During the Term, Executive shall be employed and serve as the Chief Executive Officer of the Company (together with such other position or positions consistent with Executive's title as the Board shall specify from time to time) and shall have such duties and responsibilities commensurate with such title. Executive also agrees to serve as an officer and/or director of any other member of the Company Group, in each case without additional compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Performance</u>. Executive shall devote Executive's full business time, attention, skill, and best efforts to the performance of Executive's duties under this Agreement and shall not engage in any other business or occupation during the Term, including, without limitation, any activity that (x) conflicts with the interests of the Company or any other member of the Company Group, (y) interferes with the proper and efficient performance of Executive's duties for the Company, or (z) interferes with Executive's exercise of judgment in the Company's best interests. Notwithstanding the foregoing, nothing herein shall preclude Executive from (i) serving, with the prior written consent of the Board, as a member of the boards of directors or advisory boards (or their equivalents in the case of a non-corporate entity) of non-competing businesses and charitable organizations, (ii) engaging in charitable activities and community affairs, and (iii) managing Executive's personal investments and affairs; *provided, however,* that the activities set out in clauses (i), (ii), and (iii) shall be limited by Executive so as not to materially interfere, individually or in the aggregate, with the performance of Executive's duties and responsibilities hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Principal Place of Employment</u>. Executive's principal place of employment shall be at the Company's office in Tampa, Florida, although Executive understands and agrees that Executive may be required to travel from time to time for business reasons.

**Section 4. Compensation.** 

During the Term, Executive shall be entitled to the following compensation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Salary</u>. Executive shall be paid an annualized Base Salary, payable in accordance with the regular payroll practices of the Company, of not less than $580,000, with increases, if any, as may be approved in writing by the Compensation Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Bonus</u>. Executive shall be eligible for an annual incentive bonus award determined by the Compensation Committee in respect of each fiscal year during the Term (the "***Annual Bonus***"). The target Annual Bonus for each fiscal year shall be 100% of Base Salary, with the actual Annual Bonus payable being based upon the level of achievement of annual Company and individual performance objectives for such fiscal year, as determined by the Compensation Committee and communicated to Executive. The Annual Bonus shall be paid to Executive at the same time as annual bonuses are generally payable to other senior executives of the Company subject to Executive's continuous employment through the payment date except as otherwise provided for in this Agreement.

------

**Section 5. Employee Benefits.** 

During the Term, Executive shall be entitled to participate in health, insurance, retirement, and other benefits provided generally to similarly situated employees of the Company. Executive shall also be entitled to the same number of holidays, vacation days, and sick days, as well as any other benefits, in each case as are generally allowed to similarly situated employees of the Company in accordance with the Company policy as in effect from time to time. Nothing contained herein shall be construed to limit the Company's ability to amend, suspend, or terminate any employee benefit plan or policy at any time without providing Executive notice, and the right to do so is expressly reserved.

**Section 6. Key-Man Insurance.** 

At any time during the Term, the Company shall have the right to insure the life of Executive for the sole benefit of the Company, in such amounts, and with such terms, as it may determine. All premiums payable thereon shall be the obligation of the Company. Executive shall have no interest in any such policy, but agrees to cooperate with the Company in procuring such insurance by submitting to physical examinations, supplying all information required by the insurance company, and executing all necessary documents, provided that no financial obligation is imposed on Executive by any such documents.

**Section 7. Reimbursement of Business Expenses.** 

During the Term, the Company shall pay (or promptly reimburse Executive) for documented, out-of-pocket expenses reasonably incurred by Executive in the course of performing Executive's duties and responsibilities hereunder, which are consistent with the Company's policies in effect from time to time with respect to business expenses, subject to the Company's requirements with respect to reporting of such expenses.

**Section 8. Termination of Employment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. The Term shall terminate as provided in Section 2 hereof upon the earliest to occur of (i) Executive's death, (ii) a termination by reason of a Disability, (iii) a termination by the Company with or without Cause, and (iv) a termination by Executive with or without Good Reason. Upon any termination of Executive's employment for any reason, except as may otherwise be requested by the Company in writing and agreed upon in writing by Executive, Executive shall be deemed to have resigned from any and all directorships, committee memberships, and any other positions Executive holds with the Company or any other member of the Company Group and hereby agrees to execute any documents that the Company (or any member of the Company Group) determines necessary to effectuate such resignations. Notwithstanding anything herein to the contrary, the payment (or commencement of a series of payments) hereunder of any "nonqualified deferred compensation" (within the meaning of Section 409A of the Code) upon a termination of employment shall be delayed until such time as Executive has also undergone a "separation from service" as defined in Treas. Reg. 1.409A-1(h), at which time such nonqualified deferred compensation (calculated as of the date of Executive's termination of employment hereunder) shall be paid (or commence to be paid) to Executive on the schedule set forth in this Section 8 as if Executive had undergone such termination of

------

employment (under the same circumstances) on the date of Executive's ultimate "separation from service."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination Due to Death or Disability</u>. Executive's employment shall terminate automatically upon Executive's death. The Company may terminate Executive's employment immediately upon the occurrence of a Disability, such termination to be effective upon Executive's receipt of written notice of such termination. Upon Executive's death or in the event that Executive's employment is terminated due to Executive's Disability, Executive or Executive's estate or Executive's beneficiaries, as the case may be, shall be entitled to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Accrued Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any unpaid Annual Bonus in respect of any completed fiscal year that has ended prior to the date of such termination, which amount shall be paid at such time annual bonuses are paid to other senior executives of the Company, but in no event later than the date that is two and one-half (2<sup>1</sup>⁄<sub>2</sub>) months following the last day of the fiscal year in which such termination occurred.

Following Executive's death or a termination of Executive's employment by reason of a Disability, except as set forth in this Section 8(b), Executive shall have no further rights to any compensation or any other benefits under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination by the Company with Cause</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company may terminate Executive's employment at any time with Cause, effective upon Executive's receipt of written notice of such termination; *provided, however,* that with respect to any Cause termination relying on clause (ii) or (vi) of the definition of Cause set forth in Section 1(f) hereof, to the extent that such act or acts or failure or failures to act are curable, Executive shall be given not less than ten (10) days' written notice by the Board of the Company's intention to terminate him with Cause, such notice to state in detail the particular act or acts or failure or failures to act that constitute the grounds on which the proposed termination with Cause is based, and such termination shall be effective at the expiration of such ten (10) day notice period unless Executive has fully cured such act or acts or failure or failures to act that give rise to Cause during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event that the Company terminates Executive's employment with Cause, Executive shall be entitled only to the Accrued Obligations. Following such termination of Executive's employment with Cause, except as set forth in this Section 8(c)(ii), Executive shall have no further rights to any compensation or any other benefits under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination by the Company without Cause</u>. The Company may terminate Executive's employment at any time without Cause, effective upon Executive's receipt of written notice of such termination. In the event that Executive's employment is terminated by the Company without Cause (other than due to death or Disability), Executive shall be entitled to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Accrued Obligations; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any unpaid Annual Bonus in respect of any completed fiscal year that has ended prior to the date of such termination, which amount shall be paid at such time annual bonuses are paid to other senior executives of the Company, but in no event later than the date that is two and one-half (2<sup>1</sup>⁄<sub>2</sub>) months following the last day of the fiscal year in which such termination occurred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Continued payment of Base Salary during the Severance Term, payable in accordance with the Company's regular payroll practices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the extent permitted by applicable law without any penalty to Executive or any member of the Company Group and subject to Executive's election of COBRA continuation coverage under the Company's group health plan, on the first regularly scheduled payroll date of each month of the COBRA Severance Term, the Company will pay directly to or on behalf of Executive an amount equal to the "applicable percentage" of the monthly COBRA premium cost; *provided,* that the payments pursuant to this clause (iv) shall cease earlier than the expiration of the COBRA Severance Term in the event that Executive becomes eligible to receive any health benefits, including through a spouse's employer, during the COBRA Severance Term. For purposes hereof, the "applicable ***percentage"*** shall be the percentage of Executive's health care premium costs covered by the Company as of the date of termination. Amounts paid by the Company directly to or on behalf of Executive pursuant to this clause (iv) shall be imputed to the Executive as additional taxable income to the extent required to avoid adverse consequences to Executive or the Company under either Section 105(h) of the Code or the Patient Protection and Affordable Care Act of 2010; provided that, if such imputation does not prevent the imposition of an excise tax under, or the violation of, the Patient Protection and Affordable Care Act (as amended by the Health Care and Education Reconciliation Act of 2010 and as amended from time to time), including, without limitation, Section 4980D of the Code, the Company shall no longer provide such medical and dental benefits to Executive.

Notwithstanding the foregoing, the payments and benefits described in clauses (ii), (iii), and (iv) above shall immediately terminate, and the Company shall have no further obligations to Executive with respect thereto, in the event that Executive breaches any provision of the Restrictive Covenant Agreement. Following such termination of Executive's employment by the Company without Cause, except as set forth in this Section 8(d), Executive shall have no further rights to any compensation or any other benefits under this Agreement. For the avoidance of doubt, Executive's sole and exclusive remedy upon a termination of employment by the Company without Cause shall be receipt of the Severance Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Termination by Executive with Good Reason</u>. Executive may terminate Executive's employment with Good Reason by providing the Company ten (10) days' written notice setting forth in reasonable specificity the event that constitutes Good Reason, which written notice, to be effective, must be provided to the Company within sixty (60) days of the occurrence of such event. During such ten (10) day notice period, the Company shall have a cure right (if curable), and if not cured within such period, Executive's termination will be effective upon the expiration of such cure period, and Executive shall be entitled to the same payments and benefits as provided in Section 8(d) hereof for a termination by the Company without Cause, subject to the same conditions on payment and benefits as described in Section 8(d) hereof. Following such termination of Executive's employment by Executive with Good Reason, except as set forth in

------

this Section 8(e), Executive shall have no further rights to any compensation or any other benefits under this Agreement. For the avoidance of doubt, Executive's sole and exclusive remedy upon a termination of employment with Good Reason shall be receipt of the Severance Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Termination by Executive without Good Reason</u>. Executive may terminate Executive's employment without Good Reason by providing the Company thirty (30) days' written notice of such termination. In the event of a termination of employment by Executive under this Section 8(f), Executive shall be entitled only to the Accrued Obligations. In the event of termination of Executive's employment under this Section 8(f), the Company may, in its sole and absolute discretion, by written notice accelerate such date of termination without changing the characterization of such termination as a termination by Executive without Good Reason. Following such termination of Executive's employment by Executive without Good Reason, except as set forth in this Section 8(f), Executive shall have no further rights to any compensation or any other benefits under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Employment following Expiration of the Term</u>. If Executive's employment with the Company continues beyond the expiration of the Term, Executive shall be considered an "at-will" employee and shall not be entitled to any payments or benefits under this Agreement upon any subsequent termination of employment for any reason whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Release</u>. Notwithstanding any provision herein to the contrary, the payment of any amount or provision of any benefit pursuant to subsection (b), (d), or (e) of this Section 8 (other than the Accrued Obligations) (collectively, the "Severance ***Benefits")*** shall be conditioned upon Executive's execution, delivery to the Company, and non-revocation of the Release of Claims

(and the expiration of any revocation period contained in such Release of Claims) within sixty (60) days following the date of Executive's termination of employment hereunder. If Executive fails to execute the Release of Claims in such a timely manner so as to permit any revocation period to expire prior to the end of such sixty (60) day period, or timely revokes Executive's acceptance of such release following its execution, Executive shall not be entitled to any of the Severance Benefits. Further, (i) to the extent that any of the Severance Benefits constitutes "nonqualified deferred compensation" for purposes of Section 409A of the Code, any payment of any amount or provision of any benefit otherwise scheduled to occur prior to the sixtieth (60th) day following the date of Executive's termination of employment hereunder, but for the condition on executing the Release of Claims as set forth herein, shall not be made until the first regularly scheduled payroll date following such sixtieth (60th) day and (ii) to the extent that any of the Severance Benefits do not constitute "nonqualified deferred compensation" for purposes of Section 409A of the Code, any payment of any amount or provision of any benefit otherwise scheduled to occur following the date of Executive's termination of employment hereunder, but for the condition on executing the Release of Claims as set forth herein, shall not be made until the first regularly scheduled payroll date following the date the Release of Claims is timely executed and the applicable revocation period has ended, after which, in each case, any remaining Severance Benefits shall thereafter be provided to Executive according to the applicable schedule set forth herein. For the avoidance of doubt, in the event of a termination due to Executive's death or Disability, Executive's obligations herein to execute and not revoke the Release of Claims may be satisfied on Executive's behalf by Executive's estate or a person having legal power of attorney over Executive's affairs.

------

**Section 9. Restrictive Covenant Agreement.** 

As a condition of Executive's continued employment with the Company, Executive shall have executed and delivered to the Company the Restrictive Covenant Agreement. The parties hereto acknowledge and agree that this Agreement and the Restrictive Covenant Agreement shall be considered separate contracts, and the Restrictive Covenant Agreement will survive the termination of this Agreement for any reason.

**Section 10. Representations and Warranties of Executive.** 

Executive represents and warrants to the Company that—

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Executive is entering into this Agreement voluntarily and that Executive's employment hereunder and compliance with the terms and conditions hereof will not conflict with or result in the breach by Executive of any agreement to which Executive is a party or by which Executive may be bound;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive has not (i) violated, and in connection with Executive's employment with the Company will not violate, any non-solicitation, non-competition, or other similar covenant or agreement of a prior employer by which Executive is or may be bound, or (ii) engaged in any conduct or made any representations that could result in a court of competent jurisdiction granting a temporary or permanent injunction or restraining order against Executive commencing, or continuing, his employment with the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Executive has not retained, and has returned, all confidential or proprietary information Executive may have obtained in connection with employment with any prior employer and, in connection with Executive's employment with the Company (and service to the Company Group), Executive will not use any confidential or proprietary information Executive may have obtained in connection with employment with any prior employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Executive (i) is not aware of any reason why Executive's hiring by, or work for, the Company Group could cause any damage to any member of the Company Group's reputation, (ii) was not subject to any disciplinary action while employed by (or providing services to) any former employer (or other entity) that could reasonably be expected to cause any damage to any member of the Company Group's reputation, and (iii) is not aware of any on-going investigation or cause of action by any regulatory, self-regulatory or other governmental authority involving acts or omissions of Executive or any of Executive's direct reports at any former employer (or other entity); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Executive has not engaged in any illegal conduct (including, without limitation, violations of any regulatory or self-regulatory agency rules or regulations) during the course of his employment with (or provision of services to) any former employer (or other entity).

Executive acknowledges and agrees that the representations and warranties contained in this Section 10 are fundamental to the Company agreeing to continue to employ Executive, and that the Company (and/or other members of the Company Group) would reasonably be expected to suffer grave damage should any of Executive's representations or warranties herein ever prove to have been inaccurate when made.

------

**Section 11. Taxes.** 

The Company may withhold from any payments made under this Agreement all applicable taxes, including but not limited to income, employment, and social insurance taxes, as shall be required by law. Executive acknowledges and represents that the Company has not provided any tax advice to Executive in connection with this Agreement and that Executive has been advised by the Company to seek tax advice from Executive's own tax advisors regarding this Agreement and payments that may be made to Executive pursuant to this Agreement, including specifically, the application of the provisions of Section 409A of the Code to such payments.

**Section 12. Set Off; Mitigation.** 

The Company's obligation to pay Executive the amounts provided and to make the arrangements provided hereunder shall be subject to set-off, counterclaim, or recoupment of amounts owed by Executive to the Company or its affiliates; *provided, however,* that to the extent any amount so subject to set-off, counterclaim, or recoupment is payable in installments hereunder, such set-off, counterclaim, or recoupment shall not modify the applicable payment date of any installment, and to the extent an obligation cannot be satisfied by reduction of a single installment payment, any portion not satisfied shall remain an outstanding obligation of Executive and shall be applied to the next installment only at such time the installment is otherwise payable pursuant to the specified payment schedule. Executive shall not be required to mitigate the amount of any payment or benefit provided pursuant to this Agreement by seeking other employment or otherwise, and except as provided in Section 8(d)(iv) hereof, the amount of any payment or benefit provided for pursuant to this Agreement shall not be reduced by any compensation earned as a result of Executive's other employment or otherwise.

**Section 13. Physical or Mental Disability or Infirmity.** 

Notwithstanding anything herein to the contrary, during any portion of the Term in which Executive is unable to perform the essential duties and responsibilities of Executive's position as a result of a physical or mental disability or infirmity (after taking into account any reasonable accommodations) (such period being, a "Medical ***Leave of Absence")***, unless otherwise determined by the Board, Executive shall only be entitled to the payments and benefits, if any, that Executive is then-eligible to receive pursuant to the Company Group's short-term and long-term disability policies as in effect at such time (and, for the avoidance of doubt, Executive shall not accrue any other compensation or bonus, or vest in any compensation, during a Medical Leave of Absence, except as provided in such policy). Further, in no event shall any changes to Executive's duties, responsibilities, compensation or benefits, or the appointment of an interim replacement, in each case, during the pendency of a Medical Leave of Absence give rise to Good Reason pursuant to this Agreement or otherwise.

**Section 14. Additional Section 409A Provisions.** 

Notwithstanding any provision in this Agreement to the contrary—

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any payment otherwise required to be made hereunder to Executive at any date as a result of the termination of Executive's employment shall be delayed for such period of time as may be necessary to meet the requirements of Section 409A(a)(2)(B)(i) of the Code (the "Delay ****

------

***Period***"). On the first business day following the expiration of the Delay Period, Executive shall be paid, in a single cash lump sum, an amount equal to the aggregate amount of all payments delayed pursuant to the preceding sentence, and any remaining payments not so delayed shall continue to be paid pursuant to the payment schedule set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each payment in a series of payments hereunder shall be deemed to be a separate payment for purposes of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent that any right to reimbursement of expenses or payment of any benefit in-kind under this Agreement constitutes nonqualified deferred compensation (within the meaning of Section 409A of the Code), (i) any such expense reimbursement shall be made by the Company no later than the last day of the taxable year following the taxable year in which such expense was incurred by Executive, (ii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (iii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year; *provided*, that the foregoing clause shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) While the payments and benefits provided hereunder are intended to be structured in a manner to avoid the implication of any penalty taxes under Section 409A of the Code, in no event whatsoever shall the Company or any of its affiliates be liable for any additional tax, interest, or penalties that may be imposed on Executive as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code (other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A of the Code).

**Section 15. Successors and Assigns; No Third-Party Beneficiaries.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>The Company</u>. This Agreement shall inure to the benefit of the Company and its respective successors and assigns. Neither this Agreement nor any of the rights, obligations, or interests arising hereunder may be assigned by the Company to a Person (other than another member of the Company Group, or its or their respective successors) without Executive's prior written consent (which shall not be unreasonably withheld, delayed, or conditioned); *provided*, *however*, that in the event of a sale of all or substantially all of the assets of the Company or any direct or indirect division or subsidiary thereof to which Executive's employment primarily relates, the Company may provide that this Agreement will be assigned to, and assumed by, the acquiror of such assets, it being agreed that in such circumstances, Executive's consent will not be required in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Executive</u>. Executive's rights and obligations under this Agreement shall not be transferable by Executive by assignment or otherwise, without the prior written consent of the Company; *provided*, *however*, that if Executive shall die, all amounts then payable to Executive hereunder shall be paid in accordance with the terms of this Agreement to Executive's devisee, legatee, or other designee, or if there be no such designee, to Executive's estate.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Third-Party Beneficiaries</u>. Except as otherwise set forth in Section 8(b) or Section 15(b) hereof, nothing expressed or referred to in this Agreement will be construed to give any Person other than the Company, the other members of the Company Group, and Executive any legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement.

**Section 16. Waiver and Amendments.** 

Any waiver, alteration, amendment, or modification of any of the terms of this Agreement shall be valid only if made in writing and signed by each of the parties hereto; *provided, however,* that any such waiver, alteration, amendment, or modification must be consented to on the Company's behalf by the Board. No waiver by either of the parties hereto of their rights hereunder shall be deemed to constitute a waiver with respect to any subsequent occurrences or transactions hereunder unless such waiver specifically states that it is to be construed as a continuing waiver.

**Section 17. Severability.** 

If any covenants or such other provisions of this Agreement are found to be invalid or unenforceable by a final determination of a court of competent jurisdiction, (a) the remaining terms and provisions hereof shall be unimpaired, and (b) the invalid or unenforceable term or provision hereof shall be deemed replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision hereof.

**Section 18. Governing Law and Jurisdiction.** 

EXCEPT WHERE PREEMPTED BY FEDERAL LAW, THE VALIDITY, INTERPRETATION, CONSTRUCTION, AND PERFORMANCE OF THIS AGREEMENT IS GOVERNED BY AND IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF FLORIDA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS RULES. ANY DISPUTE OR CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR CLAIM OF BREACH

HEREOF SHALL BE BROUGHT EXCLUSIVELY IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA, TO THE EXTENT FEDERAL JURISDICTION EXISTS, AND IN ANY COURT SITTING IN HILLSBOROUGH COUNTY, FLORIDA, BUT ONLY IN THE EVENT FEDERAL JURISDICTION DOES NOT EXIST, AND ANY APPLICABLE APPELLATE COURTS. BY EXECUTION OF THIS AGREEMENT, THE PARTIES HERETO, AND THEIR RESPECTIVE AFFILIATES, CONSENT TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS, AND WAIVE ANY RIGHT TO CHALLENGE JURISDICTION OR VENUE IN SUCH COURT WITH REGARD TO ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT ALSO HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN CONNECTION WITH ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS AGREEMENT.

------

**Section 19. Notices.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Place of Delivery</u>. Every notice or other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the party for whom or which it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided; *provided*, that unless and until some other address be so designated, all notices and communications by Executive to the Company shall be mailed or delivered to the Company at its principal executive office, and all notices and communications by the Company to Executive may be given to Executive personally or may be mailed to Executive at Executive's last known address, as reflected in the Company's records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Date of Delivery</u>. Any notice so addressed shall be deemed to be given or received (i) if delivered by hand, on the date of such delivery, (ii) if mailed by courier or by overnight mail, on the first business day following the date of such mailing, and (iii) if mailed by registered or certified mail, on the third business day after the date of such mailing.

**Section 20. Section Headings.** 

The headings of the sections and subsections of this Agreement are inserted for convenience only and shall not be deemed to constitute a part thereof or affect the meaning or interpretation of this Agreement or of any term or provision hereof.

**Section 21. Entire Agreement.** 

This Agreement, together with any exhibits attached hereto, constitutes the entire understanding and agreement of the parties hereto regarding the employment of Executive. This Agreement supersedes all prior negotiations, discussions, correspondence, communications, understandings, and agreements between the parties relating to the subject matter of this Agreement, including, without limitation, the Prior Agreement.

**Section 22. Survival of Operative Sections.** 

Upon any termination of Executive's employment, the provisions of Section 8 through Section 23 of this Agreement (together with any related definitions set forth in Section 1 hereof) shall survive to the extent necessary to give effect to the provisions thereof.

**Section 23. Counterparts.** 

This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. The execution of this Agreement may be by actual signature or by signature delivered by facsimile or by e-mail as a portable document format (.pdf) file or image file attachment.

\* \* \*

[*Signatures to appear on the following page(s).*]

------

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

---

| | |
|:---|:---|
|  **SAFEPOINT HOLDINGS, INC.** | **SAFEPOINT HOLDINGS, INC.** |
| /s/ Steven Hoffman | /s/ Steven Hoffman |
|  By: | Steven Hoffman |
|  Title: | Chief Financial Officer |

---

---

| |
|:---|
|  **EXECUTIVE** |
| /s/ David Flitman |
|  David Flitman |

---

[*Signature Page to Employment Agreement*] 

------

**Exhibit A** 

**RESTRICTIVE COVENANT AGREEMENT** 

As a condition of my becoming employed by, or continuing employment with, Safepoint Holdings, Inc., a Florida corporation (the "***Company***"), and in consideration of my employment with the Company and my receipt of the compensation now and hereafter paid to me by the Company, I agree to the following:

**Section 1. Confidential Information.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Company Group Information</u>. I acknowledge that, during the period (the "***Employment Period")*** of my employment with the Company and its direct and indirect parents, subsidiaries and affiliates (collectively, the "***Company Group")***, I will have access to information about the Company Group and that my employment with the Company Group shall bring me into close contact with confidential and proprietary information of the Company Group. In recognition of the foregoing, I agree, at all times during the Employment Period and thereafter, subject to <u>Schedule B</u> (as applicable based on the jurisdiction in which I am employed by the applicable member of the Company Group at the relevant time), to hold in confidence, and not to use, except for the benefit of the Company Group, or to disclose to any Person (as defined in Section 6 below) without prior written authorization of the Company, any Confidential Information that I obtain or create. I further agree not to make copies of such Confidential Information except as authorized by the Company. I understand that "***Confidential Information"*** means information that the Company Group has developed, acquired, created, compiled, discovered, or owned or will develop, acquire, create, compile, discover, or own, that has value in or to the business of the Company Group. I understand that Confidential Information includes, but is not limited to, (i) all personnel files of the Company Group, (ii) all general correspondence concerning the Company Group, (iii) all documents concerning and referring to the financial aspects of the Company and any affiliate, (iv) all information regarding the procedures or methods employed by the Company Group in soliciting, procuring, and handling business, including billing procedures, (v) all information developed or acquired by the Company Group relating to prospective or current business transactions and arrangements, (vi) all market analyses and/or demographic information or studies on the current and/or potential markets of interest to the Company Group, (vii) all business agreements and understandings between or among Company or any affiliate and other persons, (viii) all information provided to Company and any affiliate by any client, prospective clients or referral source, (ix) all legal documents and correspondence concerning the Company Group, (x) all non-public opinions, decisions, rulings, and audits of governmental agencies relating to the Company Group, (xi) all of the Company Group's client information including, but not limited to, client and prospective client names, addresses, contact information, financial status, volume of business, client needs and strategies and purchasing habits; (xii) all files and records concerning clients, prospective clients and referral sources of the Company Group and the contents of such files and records, (xiii) all pricing information and lists of the Company Group, (xiv) all appointment books and accounting, bookkeeping and any other financial documents, information or records of the Company Group, (xv) all software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances, and (xvi) all other information designated as "Confidential" by the Company Group. Notwithstanding the foregoing, Confidential Information shall not include (i) any of the foregoing items that have become publicly and widely known through no unauthorized disclosure by me or others who were under

------

confidentiality obligations as to the item or items involved or (ii) any information that I am required to disclose to, or by, any governmental or judicial authority; *provided, however,* that in such event I will give the Company prompt written notice thereof so that the Company Group may seek an appropriate protective order and/or waive in writing compliance with the confidentiality provisions of this Restrictive Covenant Agreement (this "***Agreement***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Former Employer Information</u>. I represent that I have not breached, and that my performance of all my duties and responsibilities as an employee of the Company Group has not breached and will not breach, any agreement to keep in confidence proprietary information, knowledge, or data acquired by me in confidence or trust prior or subsequent to the commencement of my employment with the Company Group, and I will not disclose to any member of the Company Group, or induce any member of the Company Group to use, any developments, or confidential or proprietary information or material I may have obtained in connection with employment with any prior employer in violation of a confidentiality agreement, nondisclosure agreement, or similar agreement with such prior employer. During the Employment Period, I will not improperly make use of, or disclose, any developments, or confidential or proprietary information or material of any prior employer or other third party, nor will I bring onto the premises of the Company Group or use any unpublished documents or any property belonging to any prior employer or other third party, in violation of any lawful agreements with that prior employer or third party. I will use in the performance of my duties only information that is generally known and used by persons with training and experience comparable to my own, is common knowledge in the industry or otherwise legally in the public domain, or is otherwise provided or developed by the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Third Party Information</u>. I understand that the Company Group has received and in the future may receive from third parties confidential or proprietary information ("***Third Party Information***") subject to a duty on the Company Group's part to maintain the confidentiality of such information and to use it only for certain limited purposes. In recognition of the foregoing, I agree, at all times during the Employment Period and thereafter, to hold in confidence and will not disclose to anyone (other than Company Group personnel who need to know such information in connection with their work for the Company Group), and not to use, except for the benefit of the Company Group, Third Party Information without the express prior written consent of an officer of the Company and otherwise treat Third Party Information as Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Whistleblower; Defend Trade Secrets Act Disclosure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In addition, I understand that nothing in this Agreement shall be construed to prohibit me from (A) filing a charge or complaint with, participating in an investigation or proceeding conducted by, or reporting possible violations of law or regulation to any federal, state or local government agency, (B) participating in a whistleblower program administered by the U.S. Securities and Exchange Commission or any other government agency, (C) truthfully testifying in a legal proceeding or responding to or complying with a subpoena, court order, or other legal process, (D) speaking with law enforcement, my attorney, the U.S. Equal Employment Opportunity Commission, any state or local division of human rights, or fair employment agency or (E) exercising any rights I may have under applicable labor laws to engage in concerted activity with other employees.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Under the U.S. Defend Trade Secrets Act of 2016, 18 U.S.C. § 1833(b) (the "Act"), persons who disclose trade secrets in connection with lawsuits or other proceedings under seal (including lawsuits alleging retaliation), or in confidence to a federal, state or local government official, or attorney, solely for the purpose of reporting or investigating a suspected violation of law, enjoy immunity from civil and criminal liability under state and federal trade secrets laws for such disclosure. I acknowledge that I have hereby received adequate notice of this immunity, such that the Company is entitled to all remedies available for violations of the Act, including exemplary damages and attorney fees. Nothing in this Agreement is intended to conflict with the Act or create liability for disclosures of trade secrets that are expressly allowed by the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Notice</u>. "An *individual shall not be held criminally or civilly liable under any Federal or state trade secret law for the disclosure of a trade secret that is made in confidence to a Federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law. An individual shall not be held criminally or civilly liable under any Federal or state trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal; and does not disclose the trade secret, except pursuant to court order.*"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Undertaking of Secrecy</u>. As a condition of my continued employment with the Company, I hereby affirm all of the undertakings set forth in the Undertaking of Secrecy, dated June 3, 2013.

**Section 2. Inventions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Prior Developments</u>. By signing below, I represent that there are no developments, inventions, concepts, know-how, original works of authorship, improvements, trade secrets, methodology, algorithms, software, processes, formulas, designs, drawings and other technological advancements and implementations that I can demonstrate were created or owned by me prior to the commencement of the Employment Period, which belong solely to me or belong to me jointly with another, that relate in any way to any of the actual or proposed businesses, products, or research and development of any member of the Company Group and which are not assigned to the Company hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignment of Inventions</u>. Without additional compensation, I agree to assign, and hereby do assign, to the Company all rights, title and interest throughout the world in and to all Inventions (as defined below) which I solely or jointly conceive, create, invent, develop, modify, compile or reduce to practice (or have conceived, created, invented, developed, modified, compiled or reduced to practice), at any time during any period during which I perform or performed services for the Company Group both before or after the date hereof (the "***Assignment Period***"), whether as an officer, employee, director, independent contractor, consultant, or agent, or in any other capacity, whether or not during regular working hours, provided they either (i) relate at the time of conception, development or reduction to practice to the business of any

------

member of the Company Group, or the actual or anticipated research or development of any member of the Company Group; (ii) result from or relate to any work performed for any member of the Company Group; or (iii) are developed through the use of equipment, supplies, or facilities of any member of the Company Group, or any Confidential Information, or in consultation with personnel of any member of the Company Group (collectively referred to as "***Company IP Rights***"). I understand that "Inventions" means inventions, concepts, know-how, developments, original works of authorship, improvements, trade secrets, methodology, algorithms, software, processes, formulas, designs, drawings and other technological advancements and implementations. I agree that I will promptly make full written disclosure to the Company of any Company IP Rights I participate in conceiving, creating, inventing, developing, modifying, compiling or reducing to practice during the Assignment Period. I further acknowledge that, to the greatest extent permitted by applicable law, all Company IP Rights made by me (solely or jointly with others) within the scope of and during the Assignment Period are "works made for hire" for which I am, in part, compensated by my salary, unless regulated otherwise by law. If any Company IP Rights cannot be assigned, I hereby grant to the Company Group an exclusive, assignable, irrevocable, perpetual, worldwide, sublicenseable (through one or multiple tiers), royalty-free, unlimited license to use, make, modify, sell, offer for sale, reproduce, distribute, create derivative works of, publicly perform, publicly display and digitally perform and display such work in any media now known or hereafter known. Outside the scope of my service, whether during or after the Employment Period, I agree not to (i) modify, adapt, alter, translate, or create derivative works from any such work of authorship or (ii) merge any such work of authorship with other Company IP Rights. To the extent rights related to paternity, integrity, disclosure and withdrawal (collectively, "***Moral Rights***") may not be assignable under applicable law and to the extent the following is allowed by the laws in the various countries where Moral Rights exist, I hereby irrevocably waive such Moral Rights and consent to any action of the Company Group that would violate such Moral Rights in the absence of such consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Maintenance of Records</u>. I agree to keep and maintain adequate and current written records of all Company IP Rights made by me (solely or jointly with others) during the Assignment Period. The records may be in the form of notes, sketches, drawings, flow charts, electronic data or recordings, and any other format. The records will be available to and remain the sole property of the Company Group at all times. I agree not to remove such records from the Company's place of business except as expressly permitted by Company Group policy, which may, from time to time, be revised at the sole election of the Company Group for the purpose of furthering the business of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Intellectual Property Rights</u>. I hereby agree to assist the Company, or its designee, at the Company's expense, in every way to secure the rights of the Company Group in the Company IP Rights and any copyrights, patents, trademarks, service marks, database rights, domain names, mask work rights, moral rights, and other intellectual property rights relating thereto in any and all countries, including the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments, recordations, and all other instruments that the Company shall deem necessary in order to apply for, obtain, maintain, and transfer such rights and in order to assign and convey to the Company Group the sole and exclusive right, title, and interest in and to such Company IP Rights, and any intellectual property and other proprietary rights relating thereto. I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such

------

instrument or papers shall continue after the Assignment Period until the expiration of the last such intellectual property right to expire in any country of the world; *provided, however,* that the Company shall reimburse me for my reasonable expenses incurred in connection with carrying out the foregoing obligation. If the Company is unable because of my mental or physical incapacity or unavailability for any other reason to secure my signature to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering Company IP Rights or original works of authorship assigned to the Company as above, then I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact to act for and in my behalf and stead to execute and file any such applications or records and to do all other lawfully permitted acts to further the application for, prosecution, issuance, maintenance, and transfer of letters patent or registrations thereon with the same legal force and effect as if originally executed by me. I hereby waive and irrevocably quitclaim to the Company any and all claims, of any nature whatsoever, that I now or hereafter have for past, present, or future infringement of any and all proprietary rights assigned to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>State Non-assignable Invention Exemptions</u>. Solely to the extent that I (i) was or am an employee of the Company and (ii) was or am based in California, Illinois, Kansas, Minnesota, Washington or any other state that has enacted laws concerning employee non-assignability of inventions or otherwise entitled to the benefits of the state statutes of California, Illinois, Kansas, Minnesota, Washington or any other state that has enacted laws concerning employee non-assignability of inventions, during the Employment Period, then, to the extent the assignment of Company IP Rights to the Company in this Section 2 can be construed to cover inventions excluded under the appropriate state statutes (including, but not limited to, California Labor Code Sec. 2870, Illinois Employee Patent Act, 765 ILCS 1060, Kansas Statute K.S.A. § 44-130, Minn. Stat. § 181.78, and Sec. 2, Revised Code of Washington Section 49.44.140(1), the full terms of each are set forth on Schedule A attached hereto and are each incorporated herein by reference), this Section 2 shall not apply to such inventions.

**Section 3. Returning Company Group Documents.** 

I agree that, at the time of termination of my employment with the Company Group for any reason, I will deliver to the Company (and will not keep in my possession, recreate, or deliver to anyone else) any and all Confidential Information, Third Party Information and all other documents, materials, information, and property developed by me pursuant to my employment or otherwise belonging to the Company Group and, if so requested, will certify in writing that I have fully complied with the foregoing obligation. I agree further that I will not copy, delete, or alter any information contained upon my Company Group computer or Company Group equipment before I return it to the Company. In addition, if I have used any personal computer, server, or e-mail system to receive, store, review, prepare or transmit any Company Group information, including but not limited to, Confidential Information, I agree to provide the Company with a computer-useable copy of all such Company Group information and then permanently delete and expunge such Company Group information from those systems; and I agree to provide the Company access to my system as reasonably requested to verify that the necessary copying and/or deletion is completed. I agree further that any property situated on the Company Group's premises and owned by the Company (or any other member of the Company Group), including disks and

------

other storage media, filing cabinets, and other work areas, is subject to inspection by personnel of any member of the Company Group at any time with or without notice.

**Section 4. Disclosure of Agreement.** 

As long as it remains in effect, I will disclose the existence of this Agreement to any prospective employer, partner, co-venturer, investor, or lender prior to entering into an employment, partnership, or other business relationship with such person or entity. I also consent to the notification of my prospective employer, partner, co-venturer, investor, or lender of my rights and obligations under this Agreement, by the Company providing a copy of this Agreement or otherwise.

**Section 5. Publicity.** 

I hereby consent to any and all uses and displays by the Company Group of my name, voice, likeness, image, appearance and biographical information in or in connection with any printed, electronic or digital materials, including, without limitation, any pictures, audio or video recordings, digital images, websites, television programs, advertising, sales or marketing brochures, printed materials and computer media, throughout the world and at any time during or after the Employment Period for all legitimate business purposes of the Company Group (the "***Permitted Use***"). I hereby forever release the Company Group and each of their respective current or former directors, officers, employees, shareholders, representatives and agents from any and all claims, actions, damages, losses, costs, expenses and liability of any kind arising under any legal or equitable theory whatsoever at any time during or after the Employment Period in connection with any Permitted Use.

**Section 6. Restrictions on Interfering.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Competition</u>. Except to the extent provided otherwise in, or modified by, <u>Schedule B</u> (as applicable based on the jurisdiction in which I am employed by the applicable member of the Company Group at the relevant time), during the Restricted Period, I shall not, directly or indirectly, individually or on behalf of any person, company, enterprise, or entity, or as a sole proprietor, partner, shareholder, director, officer, principal, agent, employee or executive, or in any other capacity or relationship, engage in any Competitive Activities, within the United States or any other jurisdiction in which the Company Group is actively engaged in business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Interference</u>. Except to the extent provided otherwise in, or modified by, <u>Schedule B</u> (as applicable based on the jurisdiction in which I am employed by the applicable member of the Company Group at the relevant time), during the Restricted Period, I shall not, directly or indirectly for my own account or for the account of any other individual or entity, engage in Interfering Activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "***Business Relation***" shall mean any current or prospective client, customer, licensee, or other business relation of the Company Group, or any such relation that was a client, customer, licensee, supplier, or other business relation within the six (6) month period prior to the

------

termination of the Employment Period, in each case, to whom I provided services, or with whom I transacted business, or whose identity became known to me in connection with my relationship with or employment by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Competitive ***Activities"*** shall mean any business activity that is competitive with the then-current or demonstrably planned business activities of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "Interfering ***Activities"*** shall mean (A) encouraging, soliciting, or inducing, or in any manner attempting to encourage, solicit, or induce, any Person employed by, or providing consulting services to, any member of the Company Group to terminate such Person's employment or services (or in the case of a consultant, materially reducing such services) with the Company Group; (B) hiring any individual who was employed by the Company Group within the six (6) month period prior to the date of such hiring; or (C) encouraging, soliciting, or inducing, or in any manner attempting to encourage, solicit, or induce, any Business Relation to cease doing business with or reduce the amount of business conducted with any member of the Company Group, or in any way interfering with the relationship between any such Business Relation and any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "Person" shall mean any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust (charitable or non-charitable), unincorporated organization, or other form of business entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "Restricted ***Period"*** shall mean the period commencing on the date hereof and ending on the twenty-four (24) month anniversary of the date of any termination of the Employment Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Non-Disparagement</u>. I agree that during the Employment Period, and at all times thereafter, subject to <u>Schedule B</u> (as applicable based on the jurisdiction in which I am employed by the applicable member of the Company Group at the relevant time), I will not make any disparaging or defamatory comments regarding any member of the Company Group or its respective current or former directors, officers, employees or shareholders in any respect or make any comments concerning any aspect of my relationship with any member of the Company Group or any conduct or events which precipitated any termination of my employment from the Company Group. However, my obligations under this subsection (d) shall not apply to disclosures required by applicable law, regulation, or order of a court or governmental agency. Further, nothing in this Agreement prohibits me from speaking with law enforcement, the Equal Employment Opportunity Commission, any state or local division of human rights or fair employment agency, or my attorney.

**Section 7. Reasonableness of Restrictions.**

I acknowledge and recognize the highly competitive nature of the Company Group's business, that access to Confidential Information renders me special and unique within the Company Group's industry, and that I will have the opportunity to develop substantial relationships with existing and prospective clients, accounts, customers, consultants, contractors, investors, and strategic partners of the Company Group during the course of and as a result of my

------

employment with the Company Group. In light of the foregoing, I recognize and acknowledge that the restrictions and limitations set forth in this Agreement are reasonable and valid in geographical and temporal scope and in all other respects and are essential to protect the value of the business and assets of the Company Group. I acknowledge further that the restrictions and limitations set forth in this Agreement will not materially interfere with my ability to earn a living following the termination of the Employment Period and that my ability to earn a livelihood without violating such restrictions is a material condition to my employment with the Company Group.

**Section 8. Independence; Severability; Blue Pencil.** 

Each of the rights enumerated in this Agreement shall be independent of the others and shall be in addition to and not in lieu of any other rights and remedies available to the Company Group at law or in equity. If any of the provisions of this Agreement or any part of any of them is hereafter construed or adjudicated to be invalid or unenforceable, the same shall not affect the remainder of this Agreement, which shall be given full effect without regard to the invalid portions. If any of the covenants contained herein are held to be invalid or unenforceable because of the duration of such provisions or the area or scope covered thereby, I agree that the court making such determination shall have the power to reduce the duration, scope, and/or area of such provision to the maximum and/or broadest duration, scope, and/or area permissible by law, and in its reduced form said provision shall then be enforceable.

**Section 9. Injunctive Relief.** 

I expressly acknowledge that, because my services are personal and unique and because I will have access to Confidential Information, any breach or threatened breach of any of the terms and/or conditions set forth in this Agreement may result in substantial, continuing, and irreparable injury to the members of the Company Group for which monetary damages would not be an adequate remedy. Therefore, I hereby agree that, in addition to any other right or remedy that may be available to the Company in law or in equity, any member of the Company Group shall be entitled to injunctive relief, specific performance, or other equitable relief by a court of appropriate jurisdiction in the event of any breach or threatened breach of the terms of this Agreement without the necessity of proving irreparable harm or injury as a result of such breach or threatened breach or posting a bond and without liability should relief be denied, modified or vacated. Notwithstanding any other provision to the contrary, I acknowledge and agree that the Restricted Period shall be tolled during any period of violation of any of the covenants in Section 6 hereof and during any other period required for litigation during which the Company or any other member of the Company Group seeks to enforce such covenants against me if it is ultimately determined that I was in breach of such covenants.

**Section 10. Cooperation.** 

I agree that, following any termination of my employment, I will continue to provide reasonable cooperation to the Company and/or any other member of the Company Group and its or their respective counsel in connection with any investigation, administrative proceeding, or litigation relating to any matter that occurred during the Employment Period in which I was involved or of which I have knowledge. As a condition of such cooperation, the Company shall

------

reimburse me for reasonable out-of-pocket expenses incurred at the request of the Company with respect to my compliance with this Section. I also agree that, in the event that I am subpoenaed by any person or entity (including, but not limited to, any government agency) to give testimony or provide documents (in a deposition, court proceeding, or otherwise) that in any way relates to my employment by the Company and/or any other member of the Company Group, I will give prompt notice of such request to the Company and will make no disclosure until the Company and/or the other member of the Company Group has had a reasonable opportunity to contest the right of the requesting person or entity to such disclosure.

**Section 11. General Provisions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law and Jurisdiction</u>. EXCEPT WHERE PREEMPTED BY FEDERAL LAW OR EXCEPT AS OTHERWISE PROVIDED IN SCHEDULE B (TO THE EXTENT APPLICABLE TO ME), THE VALIDITY, INTERPRETATION, CONSTRUCTION, AND PERFORMANCE OF THIS AGREEMENT IS GOVERNED BY AND IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF FLORIDA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS RULES. FURTHER, I HEREBY CONSENT TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF FLORIDA, AND WAIVE ANY RIGHT TO TRIAL BY JURY, IN CONNECTION WITH ANY DISPUTE ARISING UNDER OR CONCERNING THIS AGREEMENT. NOTWITHSTANDING THE FOREGOING, TO THE EXTENT REQUIRED BY THE APPLICABLE LAWS OF THE STATE IN WHICH I WORK (OR, IF POST-TERMINATION, THE STATE IN WHICH I MOST RECENTLY WORKED), THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER AND IN ACCORDANCE WITH LAWS OF THE STATE IN WHICH I WORK (OR, IF POST-TERMINATION, THE STATE IN WHICH I MOST RECENTLY WORKED), IN EACH CASE, WITHOUT REFERENCE TO RULES RELATING TO CONFLICTS OF LAW.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Attorneys' Fees</u>. I agree to indemnify the Company Group for its reasonable attorneys' fees and costs incurred in enforcing the terms of this Agreement should I violate any of its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Entire Agreement</u>. This Agreement sets forth the entire agreement and understanding between the Company and me relating to the subject matter herein and merges all prior discussions between us, provided that nothing contained in this Agreement shall limit, restrict or adversely affect in any way the Company's right, title or interest in any Company IP Rights transferred or assigned by me (or on my behalf) to the Company at any time prior to the date hereof. No modification or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing signed by the party to be charged. Any subsequent change or changes in my duties, obligations, rights, or compensation will not affect the validity or scope of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Right of Continued Employment. I acknowledge and agree that nothing contained herein shall be construed as granting me any right to continued employment by the Company Group, and the right of the applicable member of the Company Group to terminate my employment at any time and for any reason, with or without cause, is specifically reserved.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Successors and Assigns</u>. This Agreement will be binding upon my heirs, executors, administrators, and other legal representatives and will be for the benefit of the Company, its successors, and its assigns. I expressly acknowledge and agree that this Agreement may be assigned by the Company without my consent to any other member of the Company Group as well as any purchaser of all or substantially all of the assets or stock of the Company or of any business or division of the Company for which I provide services, whether by purchase, merger, or other similar corporate transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Survival</u>. The provisions of this Agreement shall survive the termination of my employment with the Company and/or the assignment of this Agreement by the Company to any successor in interest or other assignee.

\* \* \*

[*Signature to appear on the following page.*]

------

I, David Flitman, have executed this Restrictive Covenant Agreement on the date set forth below:

---

| | |
|:---|:---|
|  Date: <u>September 3, 2024</u>  | /s/ David Flitman |
|  | (Signature) |
|  | David Flitman |
|  | (Type/Print Name) |

---

[*Signature Page to Restrictive Covenant Agreement*] 

------

**SCHEDULE A** 

**RESTRICTIVE COVENANT AGREEMENT** 

**INVENTION ASSIGNMENT NOTICE** 

I am hereby notified that the Restrictive Covenant Agreement, dated as of September ___, 2024, to which this Schedule A is attached, does not apply to any invention which qualifies fully for exclusion under the provisions of California Labor Code Sec. 2870, Illinois Employee Patent Act, 765 ILCS 1060, Sec. 2, Kansas Statute K.S.A. §44-130, Minn. Stat. §181.78, Revised Code of Washington Section 49.44.140(1) or any other state statute not listed below concerning employee non-assignability of inventions. The following is the text of each of the aforementioned statutes.

**CALIFORNIA LABOR CODE SECTION 2870** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Relate at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Result from any work performed by the employee for the employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

**ILLINOIS EMPLOYEE PATENT ACT, 765 ILLINOIS COMPILED STATUTES 1060** 

**Employee rights to inventions - conditions.** (1) A provision in an employment agreement which provides that an employee shall assign or offer to assign any of the employee's rights in an invention to the employer does not apply to an invention for which no equipment, supplies, facilities, or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless (a) the invention relates (i) to the business of the employer, or (ii) to the employer's actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by the employee for the employer. Any provision which purports to apply to such an invention is to that extent against the public policy of this State and is to that extent void and unenforceable. The employee shall bear the burden of proof in establishing that his invention qualifies under this subsection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) An employer shall not require a provision made void and unenforceable by subsection (1) of this Section as a condition of employment or continuing employment. This Act shall not

------

preempt existing common law applicable to any shop rights of employers with respect to employees who have not signed an employment agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If an employment agreement entered into after January 1, 1984, contains a provision requiring the employee to assign any of the employee's rights in any invention to the employer, the employer must also, at the time the agreement is made, provide a written notification to the employee that the agreement does not apply to an invention for which no equipment, supplies, facility, or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless (a) the invention relates (i) to the business of the employer, or (ii) to the employer's actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by the employee for the employer.

**KANSAS STATUTE K.S.A. SECTION 44-130** 

**Employment agreements assigning employee rights in inventions to employer; restrictions; certain provisions void; notice and disclosure.** (a) Any provision in an employment agreement which provides that an employee shall assign or offer to assign any of the employee's rights in an invention to the employer shall not apply to an invention for which no equipment, supplies, facilities or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The invention relates to the business of the employer or to the employer's actual or demonstrably anticipated research or development; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The invention results from any work performed by the employee for the employer.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Any provision in an employment agreement which purports to apply to an invention which it is prohibited from applying to under subsection (a), is to that extent against the public policy of this state and is to that extent void and unenforceable. No employer shall require a provision made void and unenforceable by this section as a condition of employment or continuing employment.

&nbsp;&nbsp;&nbsp;&nbsp;(c) If an employment agreement contains a provision requiring the employee to assign any of the employee's rights in any invention to the employer, the employer shall provide, at the time the agreement is made, a written notification to the employee that the agreement does not apply to an invention for which no equipment, supplies, facility or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the invention relates directly to the business of the employer or to the employer's actual or demonstrably anticipated research or development; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the invention results from any work performed by the employee for the employer.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Even though the employee meets the burden of proving the conditions specified in this section, the employee shall disclose, at the time of employment or thereafter, all inventions being developed by the employee, for the purpose of determining employer and employee rights in an invention.

ii

------

**MINNESOTA STATUTES SECTION 181.78** 

**Subdivision 1. Inventions not related to employment.** Any provision in an employment agreement which provides that an employee shall assign or offer to assign any of the employee's rights in an invention to the employer shall not apply to an invention for which no equipment, supplies, facility or trade secret information of the employer was used and which was developed entirely on the employee's own time, and (1) which does not relate (a) directly to the business of the employer or (b) to the employer's actual or demonstrably anticipated research or development, or (2) which does not result from any work performed by the employee for the employer. Any provision which purports to apply to such an invention is to that extent against the public policy of this state and is to that extent void and unenforceable.

**Subdivision. 2.Effect of subdivision 1.** No employer shall require a provision made void and unenforceable by subdivision 1 as a condition of employment or continuing employment.

**Subdivision. 3.Notice to employee.** If an employment agreement entered into after August 1, 1977 contains a provision requiring the employee to assign or offer to assign any of the employee's rights in any invention to an employer, the employer must also, at the time the agreement is made, provide a written notification to the employee that the agreement does not apply to an invention for which no equipment, supplies, facility or trade secret information of the employer was used and which was developed entirely on the employee's own time, and (1) which does not relate (a) directly to the business of the employer or (b) to the employer's actual or demonstrably anticipated research or development, or (2) which does not result from any work performed by the employee for the employer.

**REVISED CODE OF WASHINGTON SECTION 49.44.140** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A provision in an employment agreement which provides that an employee shall assign or offer to assign any of the employee's rights in an invention to the employer does not apply to an invention for which no equipment, supplies, facilities, or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless (a) the invention relates (i) directly to the business of the employer, or (ii) to the employer's actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by the employee for the employer. Any provision which purports to apply to such an invention is to that extent against the public policy of this state and is to that extent void and unenforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) An employer shall not require a provision made void and unenforceable by subsection (1) of this section as a condition of employment or continuing employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If an employment agreement entered into after September 1, 1979, contains a provision requiring the employee to assign any of the employee's rights in any invention to the employer, the employer must also, at the time the agreement is made, provide a written notification to the employee that the agreement does not apply to an invention for which no equipment, supplies, facility, or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless (a) the invention relates (i) directly to the business of the

iii

------

employer, or (ii) to the employer's actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by the employee for the employer.

**REVISED CODE OF WASHINGTON SECTION 49.44.150** 

Even though the employee meets the burden of proving the conditions specified in Revised Code of Washington 49.44.110, the employee shall, at the time of employment or thereafter, disclose all inventions being developed by the employee, for the purpose of determining employer or employee rights. The employer or the employee may disclose such inventions to the department of employment security, and the department shall maintain a record of such disclosures for a minimum period of five years.

iv

------

**SCHEDULE B** 

**JURISDICTION-SPECIFIC MODIFICATIONS TO CONFIDENTIALITY, NONINTERFERENCE, AND INVENTION ASSIGNMENT AGREEMENT** 

This <u>Schedule B</u> to the Restrictive Covenant Agreement (the "***Agreement***") includes jurisdiction-specific addenda, which modify certain sections of the Agreement as applied to individuals who primarily reside and work in one of the applicable jurisdictions, but only to the extent the laws of such jurisdiction are applicable to the Agreement. This <u>Schedule B</u> should be read in conjunction with the rest of the Agreement and enforced to the fullest extent permissible to protect the Company Group's legitimate business interests. Capitalized terms used but not defined in this <u>Schedule B</u> shall have the meanings ascribed to such terms in the Agreement.

---

| | |
|:---|:---|
|  **California** | If I primarily reside and work in California: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • <u>Sections 1</u> and <u>6(d)</u> of the Agreement are not intended to, and do not purport to, infringe on my right to discuss or disclose information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that I have reason to believe is unlawful.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Each of (i) <u>Section 6(a)</u> of the Agreement and (ii) clause (B) and clause (C) of the definition of "Interfering Activities" as used in <u>Section 6(b)</u> of the Agreement (*i.e.*, a covenant not to hire employees of the Company Group and not to solicit customers) will not apply to me following the termination of the Employment Period; *provided*, that, I agree that, following the Employment Period, I will not, directly or indirectly, whether acting for my own account or for the account of any other individual, company, enterprise, or entity, or as a sole proprietor, owner, partner, shareholder, director, officer, principal, agent, executive, employee, contractor or otherwise, utilize the Company Group's trade secrets to solicit, divert or take away, or attempt to solicit, divert or take away, any business of any of the clients, customers or accounts, or prospective clients, customers or accounts, of any member of the Company Group.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I understand that the provisions of the Agreement requiring assignment of developments to the Company do not apply to any invention which qualifies fully under the provisions of Section 2870 of the California Labor Code (the full terms of which are set forth on <u>Schedule B</u> of the Agreement). I will advise the Company promptly in writing of any inventions that I believe meet the criteria in Section 2870 of the California Labor Code and I bear the full burden of proving to any member of the Company Group that an invention qualifies fully under Section 2870 of the California Labor Code. I acknowledge receipt of the Agreement and of written notification of the provisions of Section 2870 of the California Labor Code.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • NOTWITHSTANDING <u>Section 11(A)</u> OF THE AGREEMENT, THE VALIDITY, INTERPRETATION, CONSTRUCTION, AND<br>|

---

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PERFORMANCE OF THE AGREEMENT IS GOVERNED BY AND IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS RULES. FURTHER, I HEREBY CONSENT TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE NORTHERN DISTRICT OF THE STATE OF CALIFORNIA. THE WAIVER OF ANY RIGHT TO TRIAL BY JURY, IN CONNECTION WITH ANY DISPUTE ARISING UNDER OR CONCERNING THE AGREEMENT, WILL NOT APPLY TO ME TO THE EXTENT NOT ENFORCEABLE UNDER CALIFORNIA LAW.<br>• Section 11(b) of the Agreement will not apply to me.<br>|
| **Colorado** | &nbsp;&nbsp;&nbsp;&nbsp; If I am employed or primarily reside in Colorado:<br>• I acknowledge and understand that, following the Employment Period, <u>Section 6(a)</u> of the Agreement will apply to me (i) only if my "annualized cash compensation" at the time it is entered into and at the time of enforcement is equal to or exceeds the "threshold amount for highly compensated workers" as set forth in Colorado Revised Statutes Section 8- 2-113(2)(b) and (c), which was $123,750 in 2024, subject to annual adjustments for subsequent years as determined by the Division of Labor Standards and Statistics in the Colorado Department of Labor and Employment, and (ii) only to the extent reasonably necessary to protect the Company Group's legitimate interest in protecting trade secrets.<br>• I acknowledge and understand that, following the Employment Period, clause (C) of the definition of "Interfering Activities" as used in Section 6(b) of the Agreement (*i.e.*, a covenant not to solicit customers) will apply to me (i) only if my "annualized cash compensation" at the time it is entered into and at the time of enforcement is equal to or exceeds sixty percent (60%) of the "threshold amount for highly compensated workers" as set forth in Colorado Revised Statutes Section 8-2-113(2)(d), which was $74,250 in 2024, subject to annual adjustments for subsequent years as determined by the Division of Labor Standards and Statistics in the Colorado Department of Labor and Employment and (ii) only to the extent reasonably necessary to protect the Company Group's legitimate interest in protecting trade secrets.<br>• I acknowledge and agree that (i) during my employment I will have access to and knowledge of Confidential Information and such Confidential Information contains trade secrets and (ii) the restrictions and limitations set forth in the Agreement are designed to protect, and are essential to protect, trade secrets of the Company Group pursuant to Colorado Revised Statutes Section 8-2-113.<br>• If, at the time of termination of the Employment Period, I primarily resided or worked in Colorado, notwithstanding any other provision to the contrary<br>|

---

ii

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in the Agreement (including Section 11(a)), (i) applicable laws of the State of Colorado shall govern the enforceability of a covenant not to compete contained in the Agreement and (ii) nothing in the Agreement shall require me to adjudicate the enforceability of a covenant not to compete contained in the Agreement outside of the State of Colorado.<br>• I acknowledge and agree that (i) I have been provided written notice of the covenant not to compete contained in the Agreement in a separate document and in clear and conspicuous terms, at least fourteen (14) days before the earlier of (x) the effective date of the Agreement or (y) the effective date of any additional compensation or change in the terms or conditions of employment that provides consideration for the Agreement and (ii) such notice was provided with a copy of the Agreement, identified the Agreement by name and stated that the Agreement contains a covenant not to compete that could restrict my options for subsequent employment following my separation from the Company Group, and directed me to <u>Sections 6(a)</u> through <u>6(c)</u> of the Agreement that contain the covenant not to compete.<br>• I acknowledge and understand that I may request an additional copy of the covenant not to compete once each calendar year.<br>|
| **District of Columbia** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • I understand that the non-competition obligations under <u>Section 6(a)</u> of the Agreement will not apply to me if I am considered a "covered employee" under the District of Columbia's Ban on Non-Compete Agreements Amendment Act of 2020, as amended by the Non-compete Clarification Amendment Act of 2022 (collectively, the "***DC Non-Compete Act***"). I am a covered employee if I am not a "highly compensated employee" (as described below) and the following conditions are satisfied: (i) If I have commenced work for the Company Group, (A) I spend more than 50% of my work time for the Company Group working in the District of Columbia or (B) my employment is based in the District of Columbia and I regularly spend a substantial amount of my work time for the Company Group in the District of Columbia and not more than 50% of my work time for the Company in another jurisdiction; or (ii) if I have not yet commenced work for the Company Group, (A) the Company Group reasonably anticipates that I will spend more than 50% of my work time for the Company Group working in the District of Columbia or (B) my employment for the Company Group will be based in the District of Columbia, and the Company Group reasonably anticipates that I will regularly spend a substantial amount of my work time for the Company Group in the District of Columbia and not more than 50% of my work time for the Company Group in another jurisdiction.<br>• I acknowledge and understand that Secti<u>on 6(a)</u> of the Agreement will apply to me if I am a "highly compensated employee" pursuant to the DC Non- Compete Act (and therefore not a "covered employee"). Under the DC Non- Compete Act, a "highly compensated employee" is an employee who is reasonably expected to earn from the Company Group in a consecutive 12-month period, or who has earned in the preceding 12-month period,<br>|

---

iii

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; compensation greater than or equal to the "minimum qualifying annual compensation" (which is $154,000 for employees and $257,000 for medical specialists as of January 1, 2024, subject to increase each year based on increases in the Department of Labor's Consumer Price Index for All Urban Consumers in the Washington Metropolitan Statistical Area).<br>• If I am a "highly compensated employee," I acknowledge and agree that (A) I have been provided a copy of the Agreement (including the non-compete provision) at least fourteen (14) days before I commenced employment for the Company Group to review the non-compete provision in the Agreement or, if I am a current employee, at least fourteen (14) days before the date I was required to sign the Agreement and (B) I had or could have had at least fourteen (14) days to review and consider the Agreement before I was required to sign the Agreement, and that if I execute the Agreement prior to the expiration of such period, I have voluntarily and knowingly waived the remainder of such review period.<br>• If I am a "highly compensated employee," the following notice is being provided pursuant to D.C. Code § 32–581.03a.<br>*The District's Ban on Non-Compete Agreements Amendment Act of 2020 limits the use of non-compete agreements. It allows employers to request non-compete agreements from highly compensated employees, as that term is defined in the Ban on Non-Compete Agreements Amendment Act of 2020, under certain conditions. The Company has determined that you are a highly compensated employee. For more information about the Ban on Non-Compete Agreements Amendment Act of 2020, contact the District of Columbia Department of Employment Services (DOES).*<br>• I acknowledge and understand that, notwithstanding the foregoing, during the Employment Period, <u>Section 6(a)</u> of the Agreement prohibits me, and I will be prohibited, from accepting money or a thing of value for performing work for a person other than the Company Group, where the Company Group reasonably determines that my acceptance of money or a thing of value under such circumstances will result in the disclosure or use of Confidential Information or proprietary information of the Company Group, conflict with the Company Group's, industry's or profession's established rules regarding conflicts of interests, constitute a conflict of commitment if I am employed by a higher education institution, or impair my ability to comply with the District or federal laws or regulations, a contract or a grant agreement.<br>• I acknowledge and understand that, notwithstanding the foregoing, <u>Section 6</u> of the Agreement may be enforced to the extent it does not constitute a "non-compete provision" as defined in D.C. Code § 32-581.01 as a provision that provides a "long-term incentive" as defined in D.C. Code § 32-581.01.<br>|
| **Georgia** | If I am employed in Georgia: |

---

iv

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Following the Employment Period, <u>Section 6(a)</u> of the Agreement will not apply to me if I do not, in the course of my employment, (i) customarily and regularly solicit for the Company Group's customers or prospective customers; (ii) customarily and regularly engage in making sales or obtaining orders or contracts for products or services to be performed by others; (iii) perform the following duties: (A) have a primary duty of managing the enterprise in which I am employed or of a customarily recognized department or subdivision thereof, (B) customarily and regularly direct the work of two or more other employees, and (C) have the authority to hire or fire other employees or have particular weight given to suggestions and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees; or (iv) perform the duties of a key employee or professional.<br>• Following the Employment Period, for purposes of <u>Section 6(b)</u> of the Agreement, clause (C) of the definition of "Interfering Activities" as used in <u>Section 6(b)</u> of the Agreement (*i.e.*, a covenant not to solicit customers) will apply only (i) to such Business Relation with whom I had material contact and (ii) with respect to products or services that are competitive with those provided by the Company Group's business (*i.e.*, activities, products, or services that are the same as or similar to the activities, products, or services of the employer and of the type conducted, authorized, offered, or provided within two (2) years prior to the termination of the Employment Period).<br>• Notwithstanding Section 11(a) of the Agreement, the waiver of any right to trial by jury in connection with any dispute arising under or concerning the Agreement will not apply to me to the extent not enforceable under the laws of the State of Georgia.<br>|
| **Idaho** | If I am employed in Idaho, I acknowledge and agree that (i) for purposes of <u>Sections 6(a)</u> and <u>6(b)</u> of the Agreement, I am a "key employee" within the meaning of Idaho Code Section 44-2701, et seq. and (ii) the restrictions under <u>Sections 6(a)</u> and <u>6(b)</u> of the Agreement are necessary to protect the Company Group's legitimate business interests within the meaning of Idaho Code Section 44-2701, et seq. |
| **Illinois** | &nbsp;&nbsp;&nbsp;&nbsp; If I am employed in Illinois:<br>• I acknowledge and agree that restrictions under <u>Section 6(a)</u> and <u>Section 6(b)</u> of the Agreement are necessary to protect the Company Group's legitimate business interests, including its interests in the Company Group's trade secrets and Confidential Information, its substantial and near permanent relationships with customers, and its customer goodwill.<br>• I acknowledge and understand that <u>Section 6(a)</u> of the Agreement will apply to me only if my actual or expected annualized rate of earnings exceeds the applicable earnings threshold under the Illinois Freedom to Work Act (820 ILSC 90/10), which is $75,000 per year prior to January 1, 2027 (or $80,000<br>|

---

v

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per year beginning January 1, 2027, $85,000 per year beginning January 1, 2032, and $90,000 per year beginning January 1, 2037, or such other amounts as prescribed by applicable law).<br>• I acknowledge and understand that Section 6(b) of the Agreement will apply to me only if my actual or expected annualized rate of earnings exceeds the applicable earnings threshold under the Illinois Freedom to Work Act (820 ILSC 90/10), which is $45,000 per year prior to January 1, 2027 (or $47,500 per year beginning on January 1, 2027, $50,000 per year beginning on January 1, 2032, and $52,500 per year beginning on January 1, 2037, or such other amounts as prescribed by applicable law).<br>• Further, in the event that my employment is terminated (or furloughed) by the Company Group as the result of business circumstances or governmental orders related to the COVID-19 pandemic or under circumstances that are similar to the COVID-19 pandemic, <u>Section 6(a)</u> or <u>6(b)</u> of the Agreement shall not apply to me unless I am provided with compensation equivalent to my base salary at the time of termination for the period of enforcement *minus* compensation earned through subsequent employment during the period of enforcement (such payment, "***Noncompete Payment***"). I agree that, upon a request from the Company, I will provide the Company with proof of my new wage rate or salary through subsequent employment for the purposes of calculating the Noncompete Payment, which may be adjusted from payment to payment based on the information I provide to the Company. Notwithstanding anything foregoing, I acknowledge and agree that nothing herein shall be construed to confer upon me any right to Noncompete Payments or severance payments and that the Company may, in its sole discretion, elect to not enforce the provisions of <u>Section 6(a)</u> of the Agreement. For avoidance of doubt, unless my annualized earnings exceed the annual earnings threshold described above, the restrictions in <u>Section 6(a)</u> or <u>Section 6(b)</u> of the Agreement, as applicable, shall not apply to me.<br>• I further acknowledge and agree that (i) the Company has hereby advised me in writing to seek independent advice from my own legal counsel before entering into the Agreement and (ii) I had or could have had fourteen (14) calendar days from the date I received the Agreement to review and consider the Agreement, and that if I execute the Agreement prior to the expiration of such period, I have voluntarily and knowingly waived the remainder of such review period.<br>|
| **Maine** | &nbsp;&nbsp;&nbsp;&nbsp; If I am employed in Maine:<br>• If, while employed with the Company Group, I earn a wage at or below 400% of the federal poverty level, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period.<br>• If the Agreement was signed in connection with an offer of employment with the Company Group, I acknowledge that it was disclosed to me that a<br>|

---

vi

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; non-compete agreement would be required prior to my offer of employment.<br>• I acknowledge and agree that I was provided a copy of the Agreement at least three (3) business days before I was required to sign the Agreement.<br>• The terms of <u>Section 6(a)</u> of the Agreement will not take effect until I have been employed with the Company Group for at least one (1) year or after a period of six (6) months from the date the Agreement was signed, whichever is later.<br>• I acknowledge and agree that <u>Section 6(a)</u> of the Agreement is no broader than necessary to protect the Company Group's trade secrets, Confidential Information, and/or goodwill.<br>|
| **Maryland** | If I am employed in Maryland, if while employed with the Company Group I earn a wage equal to or less than (i) $19.88 per hour or $41,350 per year, or (ii) 150% of the Maryland minimum wage rate, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period. For the avoidance of doubt, the above does not in any way permit me to take or use a client list or other proprietary client-related information. |
| **Massachusetts** | If I am a resident of Massachusetts: |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • <u>Section 6(a)</u> of the Agreement will not apply following a termination of my employment if (i) I am classified as "nonexempt" under the U.S. Fair Labor Standards Act, (ii) I am an undergraduate or graduate student partaking in an internship or otherwise entering a short-term employment relationship with the Company Group, whether paid or unpaid, while enrolled in a full- time or part-time undergraduate or graduate educational institution, (iii) my employment is terminated by a member of the Company Group without "cause," or (iv) I am of age 18 or younger. "***Cause***" for purposes of <u>Section 6(a)</u> of the Agreement will exist if (1) there is a reasonable or good faith basis for the Company Group's dissatisfaction with my job performance, conduct or behavior, or (2) grounds for termination exist that are reasonably related, in the Company Group's honest judgment, to the needs of the business.<br>• "***Competitive Activities***" means any business activity that is competitive with the then-current or demonstrably planned business activities of the Company Group; provided, however, that following the termination of the Employment Period, "***Competitive Activities***" shall mean any business activity of the Company Group in which I participated or provided services within the two (2) year period immediately preceding the termination of the Employment Period.<br>• With respect to <u>Section 6(a)</u> of the Agreement, unless (A) I am classified as "nonexempt" under the U.S. Fair Labor Standards Act, an undergraduate or graduate student referenced in clause (ii) above or of age 18 or younger, or my employment is terminated by the Company Group without "cause," or (B) the Company otherwise waives the restrictions set forth in <u>Section 6(a)</u><br>|

---

vii

------

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of the Agreement following the termination of the Employment Period, the Company shall pay me the Non-Compete Consideration (as defined below) and I acknowledge and agree that the Non-Compete Consideration shall constitute mutually agreed upon consideration in support of the restrictions set forth in <u>Section 6(a)</u> of the Agreement following the termination of the Employment Period. Notwithstanding any provision herein to the contrary, the payment of the Non-Compete Consideration will be conditioned upon my continued compliance with the terms of the Agreement. |
| &nbsp;&nbsp;&nbsp;&nbsp; • "***Non-Compete Consideration***" shall mean continued payment of my base salary for a period of one (1) month following the date on which the Employment Period terminates, payable in accordance with the employer's regular payroll practices, subject to my continued compliance with the terms of the Agreement (as modified in this <u>Schedule C</u>). The Company and I agree that the Non-Compete Consideration shall constitute "other mutually- agreed upon consideration" and not "garden leave" as such terms are used in M.G.L. c. 149, § 24L.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • Following the termination of the Employment Period, restrictions under <u>Section 6(a)</u> of the Agreement shall be limited in geographic scope to any geographic area in which I, during my time within the two (2) year period preceding the termination of the Employment Period, provided services to the Company Group or had a material presence or influence as an employee of the Company Group.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • If the Agreement is entered into in connection with the commencement of employment, I acknowledge and agree that I have been provided a copy of the Agreement (including the non-compete provision) prior to the earlier of (A) a formal offer of employment or (B) at least ten (10) business days before I commenced employment for the Company Group to review the Agreement.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • If the Agreement is entered into after I commenced employment for the Company Group, I acknowledge and agree that the benefits granted to me concurrently with the Agreement constitute fair and reasonable consideration independent from the continuation of employment in support of my entering into the Agreement in light of the restrictions set forth in <u>Section 6(a)</u> of the Agreement, and that I have been provided a copy of the Agreement (including the non-compete provision) and/or notice of the Agreement at least ten (10) business days before the Agreement is to be effective.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • The Company has hereby advised me in writing that I have the right to consult with counsel prior to entering into the Agreement.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • Notwithstanding Section 11(a) of the Agreement, any suit, action, or proceeding brought by or against me in connection with the enforcement of <u>Section 6(a)</u> of the Agreement shall be brought in the Suffolk county, Massachusetts, and the superior court or the business litigation session of<br>|

---

viii

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the superior court shall have jurisdiction to adjudicate such dispute. For the avoidance of doubt, all other provisions of the Agreement remain subject to the jurisdiction and venue provisions set forth in Section 11(a) of the Agreement.<br>• I ACKNOWLEDGE THAT I HAVE CAREFULLY READ THE AGREEMENT AND HAVE BEEN GIVEN AT LEAST TEN (10) BUSINESS DAYS TO REVIEW AND SIGN THE AGREEMENT, DURING WHICH TIME I HAD THE RIGHT TO CONSULT WITH AN ATTORNEY OF MY OWN CHOOSING AT MY OWN EXPENSE. I FURTHER ACKNOWLEDGE THAT I FULLY UNDERSTAND THE CONTENT AND EFFECT OF THE AGREEMENT AND AGREE TO ALL OF THE PROVISIONS CONTAINED HEREIN. I AGREE THAT VOLUNTARILY SIGNING THE AGREEMENT BEFORE THE EXPIRATION OF THE TEN (10) BUSINESS DAYS SHALL SERVE AS A WAIVER OF THE TEN (10) BUSINESS DAY REVIEW PERIOD.<br>|
| **Minnesota** | If I primarily reside and work in Minnesota: |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period.<br>• If, at the time of termination of the Employment Period, I primarily resided or worked in Minnesota, notwithstanding Section 11(a) of the Agreement, validity, interpretation, construction and performance of the Agreement shall be governed by the laws of the State of Minnesota, and nothing in the Agreement shall require me to adjudicate a claim or controversy arising out of the Agreement outside of the State of Minnesota.<br>|
| **Missouri** | If I am employed in Missouri, <u>Section 6(b)</u> of the Agreement will not apply to the solicitation and recruitment of employees who provide only secretarial or clerical services. |
| **Nevada** | &nbsp;&nbsp;&nbsp;&nbsp; If I am employed in Nevada:<br>• <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period if I am paid on an hourly basis.<br>• If the Employment Period is terminated because of a reduction in force, a reorganization, or a similar restructuring, <u>Section 6(a)</u> of the Agreement will only apply to me following such termination while the Company Group is paying me salary, benefits, or equivalent compensation, including, without limitation, severance pay.<br>• <u>Section 6(a)</u> of the Agreement shall not restrict me from providing services to a former customer or client following the Employment Period if: (i) I did not solicit the former customer or client; (ii) the customer or client voluntarily chose to leave and seek services from me; and (iii) I am otherwise complying with the limitations in the covenant as to time, geographical area and scope of activity to be restrained, other than any limitation on providing services to a former customer or client who seeks<br>|

---

ix

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;my services without any contact instigated by me. |
| **New Hampshire** | &nbsp;&nbsp;&nbsp;&nbsp; If I am employed in New Hampshire and am engaged by the Company Group as an employee:<br>• I acknowledge that, pursuant to New Hampshire Revised Statute § 275:70- a, if while employed with the Company Group I earn a wage at an hourly rate less than or equal to 200% of the federal minimum wage, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period so long as I maintain a permanent residence in New Hampshire.<br>• I acknowledge and agree that I have been provided a copy of the Agreement prior to my acceptance of the offer of employment.<br>|
| **North Dakota** | If I am employed in North Dakota, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period. |
| **Oklahoma** | If I am employed in Oklahoma, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period. |
| **Oregon** | &nbsp;&nbsp;&nbsp;&nbsp; If I am employed in Oregon:<br>• <u>Section 6(a)</u> of the Agreement will apply to me following the termination of the Employment Period only if (i) I am engaged in administrative, executive or professional work, (ii) I perform predominantly intellectual, managerial or creative tasks, (iii) I exercise discretion and independent judgment, (iv) I am paid on a salary basis, and (v) the total amount of my annual gross salary and commissions, calculated on an annual basis, at the time of the termination of the Employment Period exceeds the amount required under Oregon Revised Statutes ("ORS") § 653.295(1)(e) (which is $113,241 in 2024) as adjusted annually to track inflation pursuant to the Consumer Price Index for All Urban Consumers, West Region (All Items) (an employee meeting the foregoing criteria is hereafter referred to as a "***Qualified Employee***").<br>• I acknowledge and agree that (i) the Agreement is being executed upon my initial employment with Company Group and is a condition of such employment or (ii) the Agreement is being executed upon my "subsequent bona fide advancement" within the meaning of ORS § 653.295 because of, among other things, my increased responsibilities and access to Confidential Information and trade secrets. If the Agreement is executed upon initial employment, I acknowledge that I was informed in a written job offer at least two (2) weeks before the commencement of employment that a non- competition agreement was required as a condition of employment. If the Agreement is executed upon a "subsequent bona fide advancement," I knowingly and voluntarily waive any argument that my new role does not constitute a "subsequent bona fide advancement."<br>• Within 30 days after the date of the termination of the Employment Period,<br>|

---

x

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Company Group will provide me a signed, written copy of the Agreement.<br>• Notwithstanding the foregoing, even if I am not a Qualified Employee meeting the requirements under ORS § 653.295(1)(b) and (e), the Company may, at its sole discretion, elect to enforce the non-competition restrictions in <u>Section 6(a)</u> of the Agreement following the termination of the Employment Period, by paying me, for up to the maximum Restricted Period, compensation equal to the greater of (x) fifty percent (50%) of my annual gross base salary and commissions at the time of my separation; or (y) fifty percent (50%) of the minimum annual compensation required under ORS § 653.295. If the Company elects to enforce <u>Section 6(a</u>) of the Agreement following the termination of the Employment Period by agreeing to make the payments referenced in this paragraph, I will be notified in writing. I understand and acknowledge that the Company's election not to pay the compensation set out in this paragraph affects the applicability of <u>Section 6(a)</u> of the Agreement only in the event I am not a Qualified Employee and that the election of non-payment does not relieve a non- Qualified Employee from any other post-employment restriction in the Agreement.<br>|
| **Rhode Island** | If I am employed in Rhode Island, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period if I am (i) classified as "non-exempt" under the Fair Labor Standards Act, (ii) an undergraduate or graduate student participating in an internship or otherwise entering into a short-term employment relationship with the Company Group while enrolled at an educational institution, regardless of whether the position is paid, (iii) of age 18 or younger, or (iv) a "low-wage" employee under R.I. Gen. Laws § 28- 59-2, *i.e.*, if my average annual earnings (as determined pursuant to R.I. Gen. Laws § 28-59-2(2)) are not more than 250% of the federal poverty level for individuals as established by the United States Department of Health and Human Services federal poverty guidelines. |
| **Virginia** | &nbsp;&nbsp;&nbsp;&nbsp; If I am employed in Virginia:<br>• I acknowledges and understand that if, while employed or otherwise engaged with the Company Group, I am deemed a "low-wage employee" under Code of Virginia § 40.1-28.7:8, *i.e.*, my average weekly earnings, as determined pursuant to Code of Virginia § 40.1-28.7:8, are less than the average weekly wage of the Commonwealth of Virginia as determined pursuant to Code of Virginia § 65.2-500(B) (including if I was engaged as an independent contractor and was compensated for such services by the Company Group at an hourly rate that is less than the median hourly wage for the Commonwealth of Virginia for all occupations as reported, for the preceding year, by the Bureau of Labor Statistics of the U.S. Department of Labor), (i) <u>Section 6(a)</u> of the Agreement will not apply to me following a termination of the Employment Period, and (ii) <u>Section 6(a)</u> or <u>Section 6(b)</u> of the Agreement will not restrict me from providing a service to a customer or client of the Company Group following a termination of the Employment<br>|

---

xi

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Period as long as I do not initiate contact with or solicit the customer or client. |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • The above mentioned exceptions will not apply to me if my earnings are derived, in whole or in predominant part, from sales commissions, incentives, or bonuses paid to me by the Company Group.<br>|
| **Washington** | If I am employed in Washington: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • The Agreement is not intended to and does not purport to infringe on my rights under Washington's Silenced No More Act or from disclosing or discussing (i) illegal acts of discrimination, harassment, retaliation, wage and hour violations, sexual assault, or other conduct recognized as being against a clear mandate of public policy occurring in the workplace, at work- related events, between employees, or between an employer and an employee, whether on or off the employment premises, or (ii) information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that I have reason to believe is unlawful.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that, following the termination of the Employment Period, <u>Section 6(a)</u> of the Agreement will only apply to me if the amount of my annualized earnings from the Company Group (calculated as of the earlier of the date enforcement of the noncompetition covenant is sought or the date of termination of the Employment Period) exceeds the compensation requirement described in Revised Code of Washington § 49.62.020 (which is $120,559.99 in 2024), as adjusted annually for inflation in accordance with the Revised Code of Washington §49.62.040.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If the Agreement is executed upon initial employment, I acknowledge and agree that (i) I have been provided a copy of the Agreement (or the terms of the non-compete covenant contained in the Agreement in writing) prior to my acceptance of the offer of employment, and (ii) if the non-compete covenant becomes enforceable only at a later date due to changes in my compensation, I have been specifically advised by the employer (and am hereby being advised) that <u>Section 6(a)</u> of the Agreement may become enforceable and apply to me at a later date due to changes in my compensation in the future, if applicable.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If the Agreement is entered into after I commenced employment for the Company Group, I acknowledge and agree that the benefits granted to me concurrently with the Agreement constitute fair and reasonable consideration for the Agreement independent from the continuation of employment.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Further, I acknowledge and understand that, in the event that my employment is terminated by the Company Group as the result of a layoff, Section 6(a) of the Agreement shall not apply to me following such termination unless I am provided with compensation equivalent to my base salary at the time of termination for the period of enforcement *minus* compensation earned through subsequent employment during the period of<br>|

---

xii

------

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; enforcement (such payment, a "***WA Noncompete Payment***"). I agree that, upon a request from the Company, I will provide the Company with proof of my new wage rate or salary through subsequent employment for the purposes of calculating the WA Noncompete Payment, which may be adjusted from payment to payment based on the information I provide to the Company. Notwithstanding anything foregoing, I acknowledge and agree that nothing herein shall be construed to confer upon me any right to WA Noncompete Payments or severance payments and that the Company may, in its sole discretion, elect to not enforce the provisions of <u>Section 6(a)</u> of the Agreement following the termination of my employment due to a layoff. For avoidance of doubt, unless my annualized earnings exceed the annual earnings threshold described above, the restrictions in <u>Section 6(a)</u> shall not apply to me following the Employment Period. |
| &nbsp;&nbsp;&nbsp;&nbsp; • If, at the time of termination of the Employment Period, I am employed in Washington, notwithstanding any other provision to the contrary in the Agreement (including Section 11 of the Agreement), nothing in the Agreement shall require me to adjudicate the enforceability of a noncompetition covenant outside of the State of Washington and the laws of the State of Washington shall govern the enforceability of the noncompetition covenant in the Agreement.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that, during the Employment Period, restrictions under <u>Section 6(a)</u> of the Agreement are not intended to restrict, restrain, or prohibit an employee earning less than twice the applicable state minimum hourly wage from having an additional job, supplementing their income by working for another employer, working as an independent contractor, or being self-employed, as long as (i) such additional services to be offered by the employee do not raise issues of safety for the employee, coworkers, or the public, or interfere with the reasonable and normal scheduling expectations of the employer and (ii) such additional services to be offered by the employee shall not alter the employee's obligations as an employee of the Company Group under existing law, including the common law duty of loyalty and laws preventing conflicts of interest and any Company Group's policies addressing such obligations.<br>|

---

xiii

------

**Exhibit B** 

**<u>RELEASE OF CLAIMS</u>** 

As used in this Release of Claims (this "***Release***"), the term "claims" will include all claims, covenants, warranties, promises, undertakings, actions, suits, causes of action, obligations, debts, accounts, attorneys' fees, judgments, losses, and liabilities, of whatsoever kind or nature, in law, equity or otherwise.

For and in consideration of the Severance Benefits (as defined in my Second Amended and Restated Employment Agreement, dated September ___, 2024, with Safepoint Holdings, Inc. (such corporation, the "***Company***" and such agreement, my "***Employment Agreement***")), and other good and valuable consideration, I, David Flitman, for and on behalf of myself and my heirs, administrators, executors and assigns, effective as of the date on which this release becomes effective pursuant to its terms, do fully and forever release, remise and discharge each member of the Company Group (including any co-employer of any member of the Company Group) and each of their successors and assigns, together with their respective current and former officers, directors, partners, members, shareholders (including any management company of a member or shareholder), employees and agents (collectively, and with the Company, the "***Company Parties***") from any and all claims whatsoever up to the date I execute this Release which I had, may have had, or now have against the Company Parties, whether known or unknown, for or by reason of any matter, cause or thing whatsoever, including any claim arising out of or attributable to my employment or the termination of my employment with the Company or any member of the Company Group, whether for tort, breach of express or implied contract, intentional infliction of emotional distress, wrongful termination, unjust dismissal, violation of public policy, defamation, libel or slander, or under any federal, state, or local law dealing with discrimination, harassment or retaliation, and any other purported restriction on an employer's right to terminate the employment of employees. The release of claims in this Release includes, but is not limited to, all claims arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, as amended ("***ADEA***"), the Americans with Disabilities Act of 1990, the Civil Rights Act of 1991, the Family and Medical Leave Act of 1993, the Equal Pay Act of 1963, the Worker Adjustment and Retraining Notification Act of 1988 and the Employee Retirement Income Security Act of 1974 (excluding claims for accrued, vested benefits under any retirement or other employee benefit plan of the Company Parties (other than any severance or similar plan or policy)), each as may be amended from time to time, and all other federal, state, and local laws, the common law or constitution of any jurisdiction. I intend the release contained herein to be a general release of any and all claims to the fullest extent permissible by law and for the provisions regarding the release of claims against the Company Parties to be construed as broadly as possible, and hereby incorporate in this release similar federal, state or other laws, all of which I also hereby expressly waive.

I understand and agree that claims or facts in addition to or different from those which are now known or believed by me to exist may hereafter be discovered, but it is my intention to fully and forever release, remise and discharge all claims which I had, may have had, or now have against the Company Parties, whether known or unknown, suspected or unsuspected, asserted or unasserted, contingent or noncontingent, without regard to the subsequent discovery or existence of such additional or different facts. Without limiting the foregoing, by signing this Release, I expressly waive and release any provision of law that purports to limit the scope of a general release.

------

I acknowledge and agree that as of the date I execute this Release, I have no knowledge of any facts or circumstances that give rise or could give rise to any claims under any of the laws listed in the preceding paragraphs.

Notwithstanding any provision of this Release to the contrary, by executing this Release, I am not releasing any claims relating to: (i) my rights under Section 8 of my Employment Agreement, (ii) my right to accrued, vested benefits due to terminated employees under any employee benefit plan of the Company or any other member of the Company Group in which I participated (excluding any severance or similar plan or policy), in accordance with the terms thereof (including my right to elect COBRA continuation coverage); (iii) any claims that cannot be waived by law or that arise after the date you execute this Agreement; or (iv) my right to indemnification, advancement and reimbursement of legal fees and expenses, and directors and officers liability insurance, as provided by, and in accordance with the terms of, applicable law, the Company's by-laws or otherwise.

**Notwithstanding any provision of this Release to the contrary, nothing herein or in any Company policy or agreement prevents me, without notifying the Company, from (i) speaking with law enforcement, my attorney, the U.S. Equal Employment Opportunity Commission, any state or local division of human rights, or fair employment agency; (ii) filing a charge or complaint with, participating in an investigation or proceeding conducted by, or reporting possible violations of law or regulation to any government agency; (iii) participating in a whistleblower program administered by the U.S. Securities and Exchange Commission or any other government agency; (iv) truthfully testifying in a legal proceeding or responding to or complying with a subpoena, court order, or other legal process; (v) filing or disclosing any facts necessary to receive unemployment insurance, Medicaid, or other public benefits to which I may be entitled; or (vi) exercising any rights I may have to engage in protected concerted activity under any applicable labor laws, including the National Labor Relations Act (for information regarding employee rights under the National Labor Relations Act, all of which are preserved under this Release, see <u>https://www.nlrb.gov/about-nlrb/rights-we-protect/your-rights/employee-rights)</u> ; provided, however, in each case, I agree to forgo any monetary benefit from the filing of a charge or complaint with a government agency except pursuant to a whistleblower program or where my right to receive such a monetary benefit is otherwise not waivable by law.** 

I acknowledge and agree that as of the date I execute this Release, I have reported all accidents, injuries or illnesses relating to or arising from my employment with the Company or the Company Group and that I have not suffered any on-the-job injury or illness for which I have not yet filed a claim.

By signing below, I represent and warrant to the Company that (i) prior to the date I execute this Release, I have provided the Company with written disclosure of any unethical or illegal behavior and any material violations of the Company's code of ethics or other material policy, in each case, that I observed, suspected or became aware of during the course of my employment or, if no such written disclosure was provided, that I have not observed, suspected or become aware of any such behavior or violations and (ii) I have complied with all laws and Company policies in respect of my employment with the Company.

------

I expressly acknowledge and agree that I:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Am able to read the language, and understand the meaning and effect, of this Release;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Have no physical or mental impairment of any kind that has interfered with my ability to read and understand
the meaning of this Release or its terms, and that I am not acting under the influence of any medication, drug, or chemical of any type in entering into this Release;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Am specifically agreeing to the terms of the release contained in this Release because the Company has agreed
to pay me the Severance Benefits in consideration for my agreement to accept it in full settlement of all possible claims I might have or ever had against the Company Parties, and because of my execution of this Release;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Acknowledge that, but for my execution of this Release, I would not be entitled to the Severance Benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Had or could have had [twenty-one (21)][forty-five (45)]1 calendar
days from the date of my termination of employment (the "Release Expiration Date") to review and consider this Release, and that if I execute this Release prior to the Release Expiration Date, I have voluntarily and knowingly waived the
remainder of the review period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Understand that, by entering into this Release, I do not waive rights or claims under ADEA that may arise
after the date I execute this Release;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Have not relied upon any representation or statement not set forth in this Release or my Employment Agreement
made by the Company Group or any of its representatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Am hereby advised to consult with my attorney regarding the terms and effect of this Release; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Have signed this Release knowingly and voluntarily.

I represent and warrant that I have not previously filed, and to the maximum extent permitted by law, I agree that I will not file, a complaint, charge or lawsuit against any of the Company Parties regarding any of the claims released herein. If, notwithstanding this representation and warranty, I have filed or file such a complaint, charge or lawsuit, I agree that I shall cause such complaint, charge or lawsuit to be dismissed with prejudice and shall pay any and all costs required in obtaining dismissal of such complaint, charge or lawsuit, including without limitation the attorneys' fees of any of the Company Parties against whom I have filed such a complaint, charge or lawsuit.

I hereby agree to waive any and all claims to re-employment with the Company or any of its direct or indirect parent(s) or subsidiaries and affirmatively agree not to seek further

<sup>1</sup> To be selected based on whether applicable termination was "in connection with an exit incentive or other employment termination program" (as such phrase is defined in the Age Discrimination in Employment Act of 1967).

------

employment with the Company or any of its direct or indirect parent(s) or subsidiaries. I acknowledge that if I re-apply for or seek employment with the Company or any of its direct or indirect parent(s) or subsidiaries, the refusal to hire me based on this provision will provide a complete defense to any claims arising from my attempt to apply for employment.

Notwithstanding anything contained herein to the contrary, this Release will not become effective or enforceable for a period of seven (7) calendar days following the date of my execution of this Release (the "***Revocation Period***"), during which time I may revoke my acceptance of this Release by notifying the Company [and the Board of Directors of the Company], in writing, delivered to [CONTACT] (the "***Company Representative***"), [TITLE], [ADDRESS], by email ([EMAIL ADDRESS]), or by a recognized national overnight courier service [or by other electronic copies (complying with the U.S. federal ESIGN Act of 2000 (e.g., DocuSign)). To be effective, such revocation must be received by the Company Representative no later than 11:59 p.m. Eastern Time on the seventh (7<sup>th</sup>) calendar day following the execution of this Release. Provided that the Release is executed prior to the Release Expiration Date and I do not revoke it during the Revocation Period, the date on which this Release is executed and delivered to the Company Representative shall be its effective date. In the event that I fail to execute and deliver this Release prior to the Release Expiration Date or, if I revoke this Release during the Revocation Period, this Release will be null and void and of no effect, and neither the me nor the Company nor any of the Company Parties will have any obligations to pay me the Severance Benefits.

The provisions of this Release shall be binding upon my heirs, executors, administrators, legal personal representatives and assigns. If any provision of this Release shall be held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect. The illegality or unenforceability of such provision, however, shall have no effect upon and shall not impair the enforceability of any other provision of this Release. I acknowledge and agree that each of the Company Parties shall be a third-party beneficiary to the releases set forth in this Release, with full rights to enforce this Release and the matters documented herein.

EXCEPT WHERE PREEMPTED BY FEDERAL LAW, THE VALIDITY, INTERPRETATION, CONSTRUCTION, AND PERFORMANCE OF THIS RELEASE IS GOVERNED BY AND IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF FLORIDA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS RULES. ANY DISPUTE OR CLAIM ARISING OUT OF OR RELATING TO THIS RELEASE OR CLAIM OF BREACH HEREOF SHALL BE BROUGHT EXCLUSIVELY IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA, TO THE EXTENT FEDERAL JURISDICTION EXISTS, AND IN ANY COURT SITTING IN FLORIDA, BUT ONLY IN THE EVENT FEDERAL JURISDICTION DOES NOT EXIST, AND ANY APPLICABLE APPELLATE COURTS. BY EXECUTION OF THIS RELEASE, I CONSENT TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS, AND WAIVE ANY RIGHT TO CHALLENGE JURISDICTION OR VENUE IN SUCH COURT WITH REGARD TO ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS RELEASE. FURTHER, I HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN CONNECTION WITH ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS RELEASE.

------

Capitalized terms used, but not defined herein, shall have the meanings ascribed to such terms in my Employment Agreement.

\* \* \*

I, David Flitman, have executed this Release of Claims on the date set forth below:

---

| | |
|:---|:---|
| David Flitman | David Flitman |
| Date: | [To Be Executed Following |
|  | Termination of Employment] |

---

## Exhibit 10.15

**Exhibit 10.15** 

**AMENDED AND RESTATED EMPLOYMENT AGREEMENT** 

This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "***Agreement***") is made and entered into as of this 3rd day of September, 2024, by and between Safepoint Holdings, Inc., a Florida corporation (the "***Company***"), and Steven Hoffman ("***Executive***").

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u> :

WHEREAS, Executive is currently employed by the Company as its Chief Financial Officer; and

WHEREAS, Executive is a party to an employment agreement with the Company, dated April 13, 2016 (the "***Prior Agreement***"); and

WHEREAS, the Company desires to employ Executive and to enter into this Agreement embodying the terms of such employment, and Executive desires to enter into this Agreement and to accept such employment, subject to the terms and provisions of this Agreement.

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are mutually acknowledged, the Company and Executive hereby agree as follows:

---

| | |
|:---|:---|
| **Section** | **1. Definitions.**  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "***Accrued Obligations"*** shall mean (i) all accrued but unpaid Base Salary through the date of termination of Executive's employment, (ii) any unpaid or unreimbursed expenses incurred in accordance with Section 7 hereof, and (iii) any benefits provided under the Company's employee benefit plans upon a termination of employment (excluding any employee benefit plan providing for severance or similar benefits), in accordance with the terms contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "***Agreement***" shall have the meaning set forth in the preamble hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "***Annual Bonus"*** shall have the meaning set forth in Section 4(b) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "***Base Salary"*** shall mean the salary provided for in Section 4(a) hereof or any increased salary granted to Executive pursuant to Section 4(a) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "***Board***" shall mean the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "***Cause***" shall mean (i) Executive's act(s) of gross negligence or willful misconduct in the course of Executive's employment hereunder, (ii) willful failure or refusal by Executive to perform in any material respect Executive's duties or responsibilities, (iii) misappropriation (or attempted misappropriation) by Executive of any assets or business opportunities of the Company or any other member of the Company Group, (iv) embezzlement or fraud committed (or attempted) by Executive, at Executive's direction, or with Executive's prior actual knowledge, (v) Executive's conviction of or pleading "guilty" or " no contest" to, (x) a felony or (y) any other

------

criminal charge that has, or could be reasonably expected to have, an adverse impact on the performance of Executive's duties to the Company or any other member of the Company Group or otherwise result in material injury to the reputation or business of the Company or any other member of the Company Group, (vi) any material violation by Executive of the policies of the Company, including but not limited to those relating to sexual harassment or business conduct, and those otherwise set forth in the manuals or statements of policy of the Company, or (vii) Executive's material breach of this Agreement or breach of the Restrictive Covenant Agreement. If, within thirty (30) days subsequent to Executive's termination for any reason other than by the Company for Cause, the Company determines that Executive's employment could have been terminated for Cause, Executive's employment will be deemed to have been terminated for Cause for all purposes, and Executive will be required to repay or return to the Company all amounts and benefits received pursuant to this Agreement or otherwise on account of such termination that would not have been payable or provided to Executive had such termination been by the Company for Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**COBRA**" shall mean Part 6 of Title I of the Employee Retirement Income Security Act of 1974, as amended, and Section 4980B of the Code, and the rules and regulations promulgated under either of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "***COBRA Severance Term"*** shall mean the eighteen (18) month period following Executive's termination by the Company without Cause (other than by reason of death or Disability) or by Executive for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "***Code***" shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "***Company***" shall have the meaning set forth in the preamble hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "***Company Group"*** shall mean the Company together with any direct or indirect subsidiaries of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "***Compensation Committee"*** shall mean the Board or the committee of the Board designated to make compensation decisions relating to senior executive officers of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "***Delay Period"*** shall have the meaning set forth in Section 14(a) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "***Disability***" shall mean any physical or mental disability or infirmity of Executive that prevents the performance of Executive's duties for a period of (i) ninety (90) consecutive days or (ii) one hundred twenty (120) non-consecutive days during any twelve (12) month period. Any question as to the existence, extent, or potentiality of Executive's Disability upon which Executive and the Company cannot agree shall be determined by a qualified, independent physician selected by the Company and approved by Executive (which approval shall not be unreasonably withheld). The determination of any such physician shall be final and conclusive for all purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "***Executive***" shall have the meaning set forth in the preamble hereto.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "***Good Reason"*** shall mean, without Executive's consent, (i) a material diminution in Executive's title, duties, or responsibilities as set forth in Section 3 hereof, (ii) a material reduction in Base Salary set forth in Section 4(a) hereof or Annual Bonus opportunity set forth in Section 4(b) hereof (other than pursuant to an across-the-board reduction applicable to all similarly situated executives), (iii) the relocation of Executive's principal place of employment (as provided in Section 3(c) hereof) more than fifty (50) miles from its current location, or (iv) any other material breach of a provision of this Agreement by the Company (other than a provision that is covered by clause (i), (ii), or (iii) above). Executive acknowledges and agrees that Executive's exclusive remedy in the event of any breach of this Agreement shall be to assert Good Reason pursuant to the terms and conditions of Section 8(e) hereof. Notwithstanding the foregoing, during the Term, in the event that the Company reasonably believes that Executive may have engaged in conduct that could constitute Cause hereunder, the Company may, in its sole and absolute discretion, suspend Executive from performing Executive's duties hereunder, and in no event shall any such suspension constitute an event pursuant to which Executive may terminate employment with Good Reason or otherwise constitute a breach hereunder; *provided,* that no such suspension shall alter the Company's obligations under this Agreement during such period of suspension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "***Person***" shall mean any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust (charitable or non-charitable), unincorporated organization, or other form of business entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "***Prior Agreement"*** shall have the meaning set forth in the recitals hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "***Release of Claims"*** shall mean the Release of Claims in substantially the same form attached hereto as <u>Exhibit B</u> (as the same may be revised from time to time by the Company upon the advice of counsel).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "***Restrictive Covenant Agreement"*** shall mean the Restrictive Covenant Agreement attached hereto as <u>Exhibit A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "***Severance Benefits"*** shall have the meaning set forth in Section 8(h) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "***Severance Term"*** shall mean the twenty-four (24) month period following Executive's termination by the Company without Cause (other than by reason of death or Disability) or by Executive for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "***Term***" shall mean the period specified in Section 2 hereof.

**Section 2. Acceptance and Term.**

The Company agrees to employ Executive, and Executive agrees to serve the Company, on the terms and conditions set forth herein. The Term shall commence on the date hereof and shall continue until terminated as provided in Section 8 hereof (the "***Term***").

------

**Section 3. Position, Duties, and Responsibilities; Place of Performance.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Position, Duties, and Responsibilities</u>. During the Term, Executive shall be employed and serve as the Chief Financial Officer of the Company (together with such other position or positions consistent with Executive's title as the Company shall specify from time to time) and shall have such duties and responsibilities commensurate with such title. Executive also agrees to serve as an officer and/or director of any other member of the Company Group, in each case without additional compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Performance</u>. Executive shall devote Executive's full business time, attention, skill, and best efforts to the performance of Executive's duties under this Agreement and shall not engage in any other business or occupation during the Term, including, without limitation, any activity that (x) conflicts with the interests of the Company or any other member of the Company Group, (y) interferes with the proper and efficient performance of Executive's duties for the Company, or (z) interferes with Executive's exercise of judgment in the Company's best interests. Notwithstanding the foregoing, nothing herein shall preclude Executive from (i) serving, with the prior written consent of the Board, as a member of the boards of directors or advisory boards (or their equivalents in the case of a non-corporate entity) of non-competing businesses and charitable organizations, (ii) engaging in charitable activities and community affairs, and (iii) managing Executive's personal investments and affairs; *provided*, *however*, that the activities set out in clauses (i), (ii), and (iii) shall be limited by Executive so as not to materially interfere, individually or in the aggregate, with the performance of Executive's duties and responsibilities hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Principal Place of Employment</u>. Executive's principal place of employment shall be at the Company's office in Tampa, Florida, although Executive understands and agrees that Executive may be required to travel from time to time for business reasons.

**Section 4. Compensation.**

During the Term, Executive shall be entitled to the following compensation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Salary</u>. Executive shall be paid an annualized Base Salary, payable in accordance with the regular payroll practices of the Company, of not less than $325,000, with increases, if any, as may be approved in writing by the Compensation Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Bonus</u>. Executive shall be eligible for an annual incentive bonus award determined by the Compensation Committee in respect of each fiscal year during the Term (the "***Annual Bonus***"). The target Annual Bonus for each fiscal year shall be 100% of Base Salary, with the actual Annual Bonus payable being based upon the level of achievement of annual Company and individual performance objectives for such fiscal year, as determined by the Compensation Committee and communicated to Executive. The Annual Bonus shall be paid to Executive at the same time as annual bonuses are generally payable to other senior executives of the Company subject to Executive's continuous employment through the payment date except as otherwise provided for in this Agreement.

------

**Section 5. Employee Benefits.**

During the Term, Executive shall be entitled to participate in health, insurance, retirement, and other benefits provided generally to similarly situated employees of the Company. Executive shall also be entitled to the same number of holidays, vacation days, and sick days, as well as any other benefits, in each case as are generally allowed to similarly situated employees of the Company in accordance with the Company policy as in effect from time to time. Nothing contained herein shall be construed to limit the Company's ability to amend, suspend, or terminate any employee benefit plan or policy at any time without providing Executive notice, and the right to do so is expressly reserved.

**Section 6. Key-Man Insurance.**

At any time during the Term, the Company shall have the right to insure the life of Executive for the sole benefit of the Company, in such amounts, and with such terms, as it may determine. All premiums payable thereon shall be the obligation of the Company. Executive shall have no interest in any such policy, but agrees to cooperate with the Company in procuring such insurance by submitting to physical examinations, supplying all information required by the insurance company, and executing all necessary documents, provided that no financial obligation is imposed on Executive by any such documents.

**Section 7. Reimbursement of Business Expenses.**

During the Term, the Company shall pay (or promptly reimburse Executive) for documented, out-of-pocket expenses reasonably incurred by Executive in the course of performing Executive's duties and responsibilities hereunder, which are consistent with the Company's policies in effect from time to time with respect to business expenses, subject to the Company's requirements with respect to reporting of such expenses.

**Section 8. Termination of Employment.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. The Term shall terminate as provided in Section 2 hereof upon the earliest to occur of (i) Executive's death, (ii) a termination by reason of a Disability, (iii) a termination by the Company with or without Cause, and (iv) a termination by Executive with or without Good Reason. Upon any termination of Executive's employment for any reason, except as may otherwise be requested by the Company in writing and agreed upon in writing by Executive, Executive shall be deemed to have resigned from any and all directorships, committee memberships, and any other positions Executive holds with the Company or any other member of the Company Group and hereby agrees to execute any documents that the Company (or any member of the Company Group) determines necessary to effectuate such resignations. Notwithstanding anything herein to the contrary, the payment (or commencement of a series of payments) hereunder of any "nonqualified deferred compensation" (within the meaning of Section 409A of the Code) upon a termination of employment shall be delayed until such time as Executive has also undergone a "separation from service" as defined in Treas. Reg. 1.409A-1(h), at which time such nonqualified deferred compensation (calculated as of the date of Executive's termination of employment hereunder) shall be paid (or commence to be paid) to Executive on the schedule set forth in this Section 8 as if Executive had undergone such termination of employment (under the same circumstances) on the date of Executive's ultimate "separation from service."

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination Due to Death or Disability</u>. Executive's employment shall terminate automatically upon Executive's death. The Company may terminate Executive's employment immediately upon the occurrence of a Disability, such termination to be effective upon Executive's receipt of written notice of such termination. Upon Executive's death or in the event that Executive's employment is terminated due to Executive's Disability, Executive or Executive's estate or Executive's beneficiaries, as the case may be, shall be entitled to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Accrued Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any unpaid Annual Bonus in respect of any completed fiscal year that has ended prior to the date of such termination, which amount shall be paid at such time annual bonuses are paid to other senior executives of the Company, but in no event later than the date that is two and one-half (2<sup>1</sup>⁄<sub>2</sub>) months following the last day of the fiscal year in which such termination occurred.

Following Executive's death or a termination of Executive's employment by reason of a Disability, except as set forth in this Section 8(b), Executive shall have no further rights to any compensation or any other benefits under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination by the Company with Cause.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company may terminate Executive's employment at any time with Cause, effective upon Executive's receipt of written notice of such termination; *provided, however,* that with respect to any Cause termination relying on clause (ii) or (vi) of the definition of Cause set forth in Section 1(f) hereof, to the extent that such act or acts or failure or failures to act are curable, Executive shall be given not less than ten (10) days' written notice by the Board of the Company's intention to terminate him with Cause, such notice to state in detail the particular act or acts or failure or failures to act that constitute the grounds on which the proposed termination with Cause is based, and such termination shall be effective at the expiration of such ten (10) day notice period unless Executive has fully cured such act or acts or failure or failures to act that give rise to Cause during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event that the Company terminates Executive's employment with Cause, Executive shall be entitled only to the Accrued Obligations. Following such termination of Executive's employment with Cause, except as set forth in this Section 8(c)(ii), Executive shall have no further rights to any compensation or any other benefits under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination by the Company without Cause</u>. The Company may terminate Executive's employment at any time without Cause, effective upon Executive's receipt of written notice of such termination. In the event that Executive's employment is terminated by the Company without Cause (other than due to death or Disability), Executive shall be entitled to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Accrued Obligations; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any unpaid Annual Bonus in respect of any completed fiscal year that has ended prior to the date of such termination, which amount shall be paid at such time annual bonuses are paid to other senior executives of the Company, but in no event later than the date that is two and one-half (2<sup>1</sup>⁄<sub>2</sub>) months following the last day of the fiscal year in which such termination occurred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Continued payment of Base Salary during the Severance Term, payable in accordance with the Company's regular payroll practices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the extent permitted by applicable law without any penalty to Executive or any member of the Company Group and subject to Executive's election of COBRA continuation coverage under the Company's group health plan, on the first regularly scheduled payroll date of each month of the COBRA Severance Term, the Company will pay directly to or on behalf of Executive an amount equal to the "applicable percentage" of the monthly COBRA premium cost; *provided,* that the payments pursuant to this clause (iv) shall cease earlier than the expiration of the COBRA Severance Term in the event that Executive becomes eligible to receive any health benefits, including through a spouse's employer, during the COBRA Severance Term. For purposes hereof, the "***applicable percentage***" shall be the percentage of Executive's health care premium costs covered by the Company as of the date of termination. Amounts paid by the Company directly to or on behalf of Executive pursuant to this clause (iv) shall be imputed to the Executive as additional taxable income to the extent required to avoid adverse consequences to Executive or the Company under either Section 105(h) of the Code or the Patient Protection and Affordable Care Act of 2010; provided that, if such imputation does not prevent the imposition of an excise tax under, or the violation of, the Patient Protection and Affordable Care Act (as amended by the Health Care and Education Reconciliation Act of 2010 and as amended from time to time), including, without limitation, Section 4980D of the Code, the Company shall no longer provide such medical and dental benefits to Executive.

Notwithstanding the foregoing, the payments and benefits described in clauses (ii), (iii), and (iv) above shall immediately terminate, and the Company shall have no further obligations to Executive with respect thereto, in the event that Executive breaches any provision of the Restrictive Covenant Agreement. Following such termination of Executive's employment by the Company without Cause, except as set forth in this Section 8(d), Executive shall have no further rights to any compensation or any other benefits under this Agreement. For the avoidance of doubt, Executive's sole and exclusive remedy upon a termination of employment by the Company without Cause shall be receipt of the Severance Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Termination by Executive with Good Reason</u>. Executive may terminate Executive's employment with Good Reason by providing the Company ten (10) days' written notice setting forth in reasonable specificity the event that constitutes Good Reason, which written notice, to be effective, must be provided to the Company within sixty (60) days of the occurrence of such event. During such ten (10) day notice period, the Company shall have a cure right (if curable), and if not cured within such period, Executive's termination will be effective upon the expiration of such cure period, and Executive shall be entitled to the same payments and benefits as provided in Section 8(d) hereof for a termination by the Company without Cause, subject to the same conditions on payment and benefits as described in Section 8(d) hereof. Following such termination of Executive's employment by Executive with Good Reason, except as set forth in this Section 8(e), Executive shall have no further rights to any compensation or any other benefits under this Agreement. For the avoidance of doubt, Executive's sole and exclusive remedy upon a termination of employment with Good Reason shall be receipt of the Severance Benefits.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Termination by Executive without Good Reason</u>. Executive may terminate Executive's employment without Good Reason by providing the Company thirty (30) days' written notice of such termination. In the event of a termination of employment by Executive under this Section 8(f), Executive shall be entitled only to the Accrued Obligations. In the event of termination of Executive's employment under this Section 8(f), the Company may, in its sole and absolute discretion, by written notice accelerate such date of termination without changing the characterization of such termination as a termination by Executive without Good Reason. Following such termination of Executive's employment by Executive without Good Reason, except as set forth in this Section 8(f), Executive shall have no further rights to any compensation or any other benefits under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Employment following Expiration of the Term</u>. If Executive's employment with the Company continues beyond the expiration of the Term, Executive shall be considered an "at-will" employee and shall not be entitled to any payments or benefits under this Agreement upon any subsequent termination of employment for any reason whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Release</u>. Notwithstanding any provision herein to the contrary, the payment of any amount or provision of any benefit pursuant to subsection (b), (d), or (e) of this Section 8 (other than the Accrued Obligations) (collectively, the "***Severance Benefits")*** shall be conditioned upon Executive's execution, delivery to the Company, and non-revocation of the Release of Claims (and the expiration of any revocation period contained in such Release of Claims) within sixty (60) days following the date of Executive's termination of employment hereunder. If Executive fails to execute the Release of Claims in such a timely manner so as to permit any revocation period to expire prior to the end of such sixty (60) day period, or timely revokes Executive's acceptance of such release following its execution, Executive shall not be entitled to any of the Severance Benefits. Further, (i) to the extent that any of the Severance Benefits constitutes "nonqualified deferred compensation" for purposes of Section 409A of the Code, any payment of any amount or provision of any benefit otherwise scheduled to occur prior to the sixtieth (60<sup>th</sup>) day following the date of Executive's termination of employment hereunder, but for the condition on executing the Release of Claims as set forth herein, shall not be made until the first regularly scheduled payroll date following such sixtieth (60<sup>th</sup>) day and (ii) to the extent that any of the Severance Benefits do not constitute "nonqualified deferred compensation" for purposes of Section 409A of the Code, any payment of any amount or provision of any benefit otherwise scheduled to occur following the date of Executive's termination of employment hereunder, but for the condition on executing the Release of Claims as set forth herein, shall not be made until the first regularly scheduled payroll date following the date the Release of Claims is timely executed and the applicable revocation period has ended, after which, in each case, any remaining Severance Benefits shall thereafter be provided to Executive according to the applicable schedule set forth herein. For the avoidance of doubt, in the event of a termination due to Executive's death or Disability, Executive's obligations herein to execute and not revoke the Release of Claims may be satisfied on Executive's behalf by Executive's estate or a person having legal power of attorney over Executive's affairs.

------

**Section 9. Restrictive Covenant Agreement.**

As a condition of Executive's continued employment with the Company, Executive shall have executed and delivered to the Company the Restrictive Covenant Agreement. The parties hereto acknowledge and agree that this Agreement and the Restrictive Covenant Agreement shall be considered separate contracts, and the Restrictive Covenant Agreement will survive the termination of this Agreement for any reason.

**Section 10. Representations and Warranties of Executive.**

Executive represents and warrants to the Company that—

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Executive is entering into this Agreement voluntarily and that Executive's employment hereunder and compliance with the terms and conditions hereof will not conflict with or result in the breach by Executive of any agreement to which Executive is a party or by which Executive may be bound;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive has not (i) violated, and in connection with Executive's employment with the Company will not violate, any non-solicitation, non-competition, or other similar covenant or agreement of a prior employer by which Executive is or may be bound, or (ii) engaged in any conduct or made any representations that could result in a court of competent jurisdiction granting a temporary or permanent injunction or restraining order against Executive commencing, or continuing, his employment with the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Executive has not retained, and has returned, all confidential or proprietary information Executive may have obtained in connection with employment with any prior employer and, in connection with Executive's employment with the Company (and service to the Company Group), Executive will not use any confidential or proprietary information Executive may have obtained in connection with employment with any prior employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Executive (i) is not aware of any reason why Executive's hiring by, or work for, the Company Group could cause any damage to any member of the Company Group's reputation, (ii) was not subject to any disciplinary action while employed by (or providing services to) any former employer (or other entity) that could reasonably be expected to cause any damage to any member of the Company Group's reputation, and (iii) is not aware of any on-going investigation or cause of action by any regulatory, self-regulatory or other governmental authority involving acts or omissions of Executive or any of Executive's direct reports at any former employer (or other entity); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Executive has not engaged in any illegal conduct (including, without limitation, violations of any regulatory or self-regulatory agency rules or regulations) during the course of his employment with (or provision of services to) any former employer (or other entity).

Executive acknowledges and agrees that the representations and warranties contained in this Section 10 are fundamental to the Company agreeing to continue to employ Executive, and that the Company (and/or other members of the Company Group) would reasonably be expected to suffer grave damage should any of Executive's representations or warranties herein ever prove to have been inaccurate when made.

------

**Section 11. Taxes.**

The Company may withhold from any payments made under this Agreement all applicable taxes, including but not limited to income, employment, and social insurance taxes, as shall be required by law. Executive acknowledges and represents that the Company has not provided any tax advice to Executive in connection with this Agreement and that Executive has been advised by the Company to seek tax advice from Executive's own tax advisors regarding this Agreement and payments that may be made to Executive pursuant to this Agreement, including specifically, the application of the provisions of Section 409A of the Code to such payments.

**Section 12. Set Off; Mitigation.**

The Company's obligation to pay Executive the amounts provided and to make the arrangements provided hereunder shall be subject to set-off, counterclaim, or recoupment of amounts owed by Executive to the Company or its affiliates; *provided*, *however*, that to the extent any amount so subject to set-off, counterclaim, or recoupment is payable in installments hereunder, such set-off, counterclaim, or recoupment shall not modify the applicable payment date of any installment, and to the extent an obligation cannot be satisfied by reduction of a single installment payment, any portion not satisfied shall remain an outstanding obligation of Executive and shall be applied to the next installment only at such time the installment is otherwise payable pursuant to the specified payment schedule. Executive shall not be required to mitigate the amount of any payment or benefit provided pursuant to this Agreement by seeking other employment or otherwise, and except as provided in Section 8(d)(iv) hereof, the amount of any payment or benefit provided for pursuant to this Agreement shall not be reduced by any compensation earned as a result of Executive's other employment or otherwise.

**Section 13. Physical or Mental Disability or Infirmity**.

Notwithstanding anything herein to the contrary, during any portion of the Term in which Executive is unable to perform the essential duties and responsibilities of Executive's position as a result of a physical or mental disability or infirmity (after taking into account any reasonable accommodations) (such period being, a "***Medical Leave of Absence***"), unless otherwise determined by the Company, Executive shall only be entitled to the payments and benefits, if any, that Executive is then-eligible to receive pursuant to the Company Group's short-term and long-term disability policies as in effect at such time (and, for the avoidance of doubt, Executive shall not accrue any other compensation or bonus, or vest in any compensation, during a Medical Leave of Absence, except as provided in such policy). Further, in no event shall any changes to Executive's duties, responsibilities, compensation or benefits, or the appointment of an interim replacement, in each case, during the pendency of a Medical Leave of Absence give rise to Good Reason pursuant to this Agreement or otherwise.

------

**Section 14. Additional Section 409A Provisions.**

Notwithstanding any provision in this Agreement to the contrary—

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any payment otherwise required to be made hereunder to Executive at any date as a result of the termination of Executive's employment shall be delayed for such period of time as may be necessary to meet the requirements of Section 409A(a)(2)(B)(i) of the Code (the "***Delay Period")***. On the first business day following the expiration of the Delay Period, Executive shall be paid, in a single cash lump sum, an amount equal to the aggregate amount of all payments delayed pursuant to the preceding sentence, and any remaining payments not so delayed shall continue to be paid pursuant to the payment schedule set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each payment in a series of payments hereunder shall be deemed to be a separate payment for purposes of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent that any right to reimbursement of expenses or payment of any benefit in-kind under this Agreement constitutes nonqualified deferred compensation (within the meaning of Section 409A of the Code), (i) any such expense reimbursement shall be made by the Company no later than the last day of the taxable year following the taxable year in which such expense was incurred by Executive, (ii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (iii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year; *provided,* that the foregoing clause shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) While the payments and benefits provided hereunder are intended to be structured in a manner to avoid the implication of any penalty taxes under Section 409A of the Code, in no event whatsoever shall the Company or any of its affiliates be liable for any additional tax, interest, or penalties that may be imposed on Executive as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code (other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A of the Code).

**Section 15. Successors and Assigns; No Third-Party Beneficiaries.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>The Company</u>. This Agreement shall inure to the benefit of the Company and its respective successors and assigns. Neither this Agreement nor any of the rights, obligations, or interests arising hereunder may be assigned by the Company to a Person (other than another member of the Company Group, or its or their respective successors) without Executive's prior written consent (which shall not be unreasonably withheld, delayed, or conditioned); *provided, however,* that in the event of a sale of all or substantially all of the assets of the Company or any direct or indirect division or subsidiary thereof to which Executive's employment primarily relates, the Company may provide that this Agreement will be assigned to, and assumed by, the acquiror of such assets, it being agreed that in such circumstances, Executive's consent will not be required in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Executive</u>. Executive's rights and obligations under this Agreement shall not be transferable by Executive by assignment or otherwise, without the prior written consent of the Company; *provided, however,* that if Executive shall die, all amounts then payable to Executive hereunder shall be paid in accordance with the terms of this Agreement to Executive's devisee, legatee, or other designee, or if there be no such designee, to Executive's estate.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Third-Party Beneficiaries</u>. Except as otherwise set forth in Section 8(b) or Section 15(b) hereof, nothing expressed or referred to in this Agreement will be construed to give any Person other than the Company, the other members of the Company Group, and Executive any legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement.

**Section 16. Waiver and Amendments.**

Any waiver, alteration, amendment, or modification of any of the terms of this Agreement shall be valid only if made in writing and signed by each of the parties hereto; *provided, however,* that any such waiver, alteration, amendment, or modification must be consented to by the Company. No waiver by either of the parties hereto of their rights hereunder shall be deemed to constitute a waiver with respect to any subsequent occurrences or transactions hereunder unless such waiver specifically states that it is to be construed as a continuing waiver.

**Section 17. Severability.**

If any covenants or such other provisions of this Agreement are found to be invalid or unenforceable by a final determination of a court of competent jurisdiction, (a) the remaining terms and provisions hereof shall be unimpaired, and (b) the invalid or unenforceable term or provision hereof shall be deemed replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision hereof.

**Section 18. Governing Law and Jurisdiction.**

EXCEPT WHERE PREEMPTED BY FEDERAL LAW, THE VALIDITY, INTERPRETATION, CONSTRUCTION, AND PERFORMANCE OF THIS AGREEMENT IS GOVERNED BY AND IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF FLORIDA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS RULES. ANY DISPUTE OR CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR CLAIM OF BREACH

HEREOF SHALL BE BROUGHT EXCLUSIVELY IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA, TO THE EXTENT FEDERAL JURISDICTION EXISTS, AND IN ANY COURT SITTING IN HILLSBOROUGH COUNTY, FLORIDA, BUT ONLY IN THE EVENT FEDERAL JURISDICTION DOES NOT EXIST, AND ANY APPLICABLE APPELLATE COURTS. BY EXECUTION OF THIS AGREEMENT, THE PARTIES HERETO, AND THEIR RESPECTIVE AFFILIATES, CONSENT TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS, AND WAIVE ANY RIGHT TO CHALLENGE JURISDICTION OR VENUE IN SUCH COURT WITH REGARD TO ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT ALSO HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN CONNECTION WITH ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS AGREEMENT.

------

**Section 19. Notices.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Place of Delivery</u>. Every notice or other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the party for whom or which it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided; *provided,* that unless and until some other address be so designated, all notices and communications by Executive to the Company shall be mailed or delivered to the Company at its principal executive office, and all notices and communications by the Company to Executive may be given to Executive personally or may be mailed to Executive at Executive's last known address, as reflected in the Company's records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Date of Delivery</u>. Any notice so addressed shall be deemed to be given or received (i) if delivered by hand, on the date of such delivery, (ii) if mailed by courier or by overnight mail, on the first business day following the date of such mailing, and (iii) if mailed by registered or certified mail, on the third business day after the date of such mailing.

**Section 20. Section Headings.**

The headings of the sections and subsections of this Agreement are inserted for convenience only and shall not be deemed to constitute a part thereof or affect the meaning or interpretation of this Agreement or of any term or provision hereof.

**Section 21. Entire Agreement.**

This Agreement, together with any exhibits attached hereto, constitutes the entire understanding and agreement of the parties hereto regarding the employment of Executive. This Agreement supersedes all prior negotiations, discussions, correspondence, communications, understandings, and agreements between the parties relating to the subject matter of this Agreement, including, without limitation, the Prior Agreement.

**Section 22. Survival of Operative Sections.**

Upon any termination of Executive's employment, the provisions of Section 8 through Section 23 of this Agreement (together with any related definitions set forth in Section 1 hereof) shall survive to the extent necessary to give effect to the provisions thereof.

**Section 23. Counterparts.**

This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. The execution of this Agreement may be by actual signature or by signature delivered by facsimile or by e-mail as a portable document format (.pdf) file or image file attachment.

\* \* \*

[*Signatures to appear on the following page(s).*]

------

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

---

| |
|:---|
| **SAFEPOINT HOLDINGS, INC.** |
| /s/ David Flitman |
| By: David Flitman |
| Title: President and Chief Executive Officer |
| **EXECUTIVE** |
| /s/ Steven Hoffman |
| Steven Hoffman |

---

[*Signature Page to Employment Agreement*]

------

**Exhibit A** 

**RESTRICTIVE COVENANT AGREEMENT** 

As a condition of my becoming employed by, or continuing employment with, Safepoint Holdings, Inc., a Florida corporation (the "Company"), and in consideration of my employment with the Company and my receipt of the compensation now and hereafter paid to me by the Company, I agree to the following:

**Section 1. Confidential Information.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Company Group Information</u>. I acknowledge that, during the period (the ***"Employment Period")*** of my employment with the Company and its direct and indirect parents, subsidiaries and affiliates (collectively, the "***Company Group")***, I will have access to information about the Company Group and that my employment with the Company Group shall bring me into close contact with confidential and proprietary information of the Company Group. In recognition of the foregoing, I agree, at all times during the Employment Period and thereafter, subject to <u>Schedule B</u> (as applicable based on the jurisdiction in which I am employed by the applicable member of the Company Group at the relevant time), to hold in confidence, and not to use, except for the benefit of the Company Group, or to disclose to any Person (as defined in Section 6 below) without prior written authorization of the Company, any Confidential Information that I obtain or create. I further agree not to make copies of such Confidential Information except as authorized by the Company. I understand that "***Confidential Information"*** means information that the Company Group has developed, acquired, created, compiled, discovered, or owned or will develop, acquire, create, compile, discover, or own, that has value in or to the business of the Company Group. I understand that Confidential Information includes, but is not limited to, (i) all personnel files of the Company Group, (ii) all general correspondence concerning the Company Group, (iii) all documents concerning and referring to the financial aspects of the Company and any affiliate, (iv) all information regarding the procedures or methods employed by the Company Group in soliciting, procuring, and handling business, including billing procedures, (v) all information developed or acquired by the Company Group relating to prospective or current business transactions and arrangements, (vi) all market analyses and/or demographic information or studies on the current and/or potential markets of interest to the Company Group, (vii) all business agreements and understandings between or among Company or any affiliate and other persons, (viii) all information provided to Company and any affiliate by any client, prospective clients or referral source, (ix) all legal documents and correspondence concerning the Company Group, (x) all non-public opinions, decisions, rulings, and audits of governmental agencies relating to the Company Group, (xi) all of the Company Group's client information including, but not limited to, client and prospective client names, addresses, contact information, financial status, volume of business, client needs and strategies and purchasing habits; (xii) all files and records concerning clients, prospective clients and referral sources of the Company Group and the contents of such files and records, (xiii) all pricing information and lists of the Company Group, (xiv) all appointment books and accounting, bookkeeping and any other financial documents, information or records of the Company Group, (xv) all software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances, and (xvi) all other information designated as "Confidential" by the Company Group. Notwithstanding the foregoing, Confidential Information shall not include (i) any of the foregoing items that have become publicly and widely known through no unauthorized disclosure by me or others who were under

------

confidentiality obligations as to the item or items involved or (ii) any information that I am required to disclose to, or by, any governmental or judicial authority; *provided, however,* that in such event I will give the Company prompt written notice thereof so that the Company Group may seek an appropriate protective order and/or waive in writing compliance with the confidentiality provisions of this Restrictive Covenant Agreement (this "***Agreement***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Former Employer Information</u>. I represent that I have not breached, and that my performance of all my duties and responsibilities as an employee of the Company Group has not breached and will not breach, any agreement to keep in confidence proprietary information, knowledge, or data acquired by me in confidence or trust prior or subsequent to the commencement of my employment with the Company Group, and I will not disclose to any member of the Company Group, or induce any member of the Company Group to use, any developments, or confidential or proprietary information or material I may have obtained in connection with employment with any prior employer in violation of a confidentiality agreement, nondisclosure agreement, or similar agreement with such prior employer. During the Employment Period, I will not improperly make use of, or disclose, any developments, or confidential or proprietary information or material of any prior employer or other third party, nor will I bring onto the premises of the Company Group or use any unpublished documents or any property belonging to any prior employer or other third party, in violation of any lawful agreements with that prior employer or third party. I will use in the performance of my duties only information that is generally known and used by persons with training and experience comparable to my own, is common knowledge in the industry or otherwise legally in the public domain, or is otherwise provided or developed by the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Third Party Information</u>. I understand that the Company Group has received and in the future may receive from third parties confidential or proprietary information ("***Third Party Information")*** subject to a duty on the Company Group's part to maintain the confidentiality of such information and to use it only for certain limited purposes. In recognition of the foregoing, I agree, at all times during the Employment Period and thereafter, to hold in confidence and will not disclose to anyone (other than Company Group personnel who need to know such information in connection with their work for the Company Group), and not to use, except for the benefit of the Company Group, Third Party Information without the express prior written consent of an officer of the Company and otherwise treat Third Party Information as Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Whistleblower; Defend Trade Secrets Act Disclosure.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In addition, I understand that nothing in this Agreement shall be construed to prohibit me from (A) filing a charge or complaint with, participating in an investigation or proceeding conducted by, or reporting possible violations of law or regulation to any federal, state or local government agency, (B) participating in a whistleblower program administered by the U.S. Securities and Exchange Commission or any other government agency, (C) truthfully testifying in a legal proceeding or responding to or complying with a subpoena, court order, or other legal process, (D) speaking with law enforcement, my attorney, the U.S. Equal Employment Opportunity Commission, any state or local division of human rights, or fair employment agency or (E) exercising any rights I may have under applicable labor laws to engage in concerted activity with other employees.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Under the U.S. Defend Trade Secrets Act of 2016, 18 U.S.C. § 1833(b) (the "Act"), persons who disclose trade secrets in connection with lawsuits or other proceedings under seal (including lawsuits alleging retaliation), or in confidence to a federal, state or local government official, or attorney, solely for the purpose of reporting or investigating a suspected violation of law, enjoy immunity from civil and criminal liability under state and federal trade secrets laws for such disclosure. I acknowledge that I have hereby received adequate notice of this immunity, such that the Company is entitled to all remedies available for violations of the Act, including exemplary damages and attorney fees. Nothing in this Agreement is intended to conflict with the Act or create liability for disclosures of trade secrets that are expressly allowed by the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Notice</u>. "An *individual shall not be held criminally or civilly liable under any Federal or state trade secret law for the disclosure of a trade secret that is made in confidence to a Federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law. An individual shall not be held criminally or civilly liable under any Federal or state trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal; and does not disclose the trade secret, except pursuant to court order.*"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Undertaking of Secrecy</u>. As a condition of my continued employment with the Company, I hereby affirm all of the undertakings set forth in the Undertaking of Secrecy, a copy of which is attached hereto as <u>Annex A</u>.

**Section 2. Inventions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Prior Developments</u>. By signing below, I represent that there are no developments, inventions, concepts, know-how, original works of authorship, improvements, trade secrets, methodology, algorithms, software, processes, formulas, designs, drawings and other technological advancements and implementations that I can demonstrate were created or owned by me prior to the commencement of the Employment Period, which belong solely to me or belong to me jointly with another, that relate in any way to any of the actual or proposed businesses, products, or research and development of any member of the Company Group and which are not assigned to the Company hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignment of Inventions</u>. Without additional compensation, I agree to assign, and hereby do assign, to the Company all rights, title and interest throughout the world in and to all Inventions (as defined below) which I solely or jointly conceive, create, invent, develop, modify, compile or reduce to practice (or have conceived, created, invented, developed, modified, compiled or reduced to practice), at any time during any period during which I perform or performed services for the Company Group both before or after the date hereof (the "***Assignment Period"),*** whether as an officer, employee, director, independent contractor, consultant, or agent, or in any other capacity, whether or not during regular working hours, provided they either (i) relate at the time of conception, development or reduction to practice to the business of any

------

member of the Company Group, or the actual or anticipated research or development of any member of the Company Group; (ii) result from or relate to any work performed for any member of the Company Group; or (iii) are developed through the use of equipment, supplies, or facilities of any member of the Company Group, or any Confidential Information, or in consultation with personnel of any member of the Company Group (collectively referred to as "***Company IP Rights")***. I understand that "Inventions" means inventions, concepts, know-how, developments, original works of authorship, improvements, trade secrets, methodology, algorithms, software, processes, formulas, designs, drawings and other technological advancements and implementations. I agree that I will promptly make full written disclosure to the Company of any Company IP Rights I participate in conceiving, creating, inventing, developing, modifying, compiling or reducing to practice during the Assignment Period. I further acknowledge that, to the greatest extent permitted by applicable law, all Company IP Rights made by me (solely or jointly with others) within the scope of and during the Assignment Period are "works made for hire" for which I am, in part, compensated by my salary, unless regulated otherwise by law. If any Company IP Rights cannot be assigned, I hereby grant to the Company Group an exclusive, assignable, irrevocable, perpetual, worldwide, sublicenseable (through one or multiple tiers), royalty-free, unlimited license to use, make, modify, sell, offer for sale, reproduce, distribute, create derivative works of, publicly perform, publicly display and digitally perform and display such work in any media now known or hereafter known. Outside the scope of my service, whether during or after the Employment Period, I agree not to (i) modify, adapt, alter, translate, or create derivative works from any such work of authorship or (ii) merge any such work of authorship with other Company IP Rights. To the extent rights related to paternity, integrity, disclosure and withdrawal (collectively, "***Moral Rights")*** may not be assignable under applicable law and to the extent the following is allowed by the laws in the various countries where Moral Rights exist, I hereby irrevocably waive such Moral Rights and consent to any action of the Company Group that would violate such Moral Rights in the absence of such consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Maintenance of Records</u>. I agree to keep and maintain adequate and current written records of all Company IP Rights made by me (solely or jointly with others) during the Assignment Period. The records may be in the form of notes, sketches, drawings, flow charts, electronic data or recordings, and any other format. The records will be available to and remain the sole property of the Company Group at all times. I agree not to remove such records from the Company's place of business except as expressly permitted by Company Group policy, which may, from time to time, be revised at the sole election of the Company Group for the purpose of furthering the business of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Intellectual Property Rights</u>. I hereby agree to assist the Company, or its designee, at the Company's expense, in every way to secure the rights of the Company Group in the Company IP Rights and any copyrights, patents, trademarks, service marks, database rights, domain names, mask work rights, moral rights, and other intellectual property rights relating thereto in any and all countries, including the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments, recordations, and all other instruments that the Company shall deem necessary in order to apply for, obtain, maintain, and transfer such rights and in order to assign and convey to the Company Group the sole and exclusive right, title, and interest in and to such Company IP Rights, and any intellectual property and other proprietary rights relating thereto. I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such

------

instrument or papers shall continue after the Assignment Period until the expiration of the last such intellectual property right to expire in any country of the world; *provided, however,* that the Company shall reimburse me for my reasonable expenses incurred in connection with carrying out the foregoing obligation. If the Company is unable because of my mental or physical incapacity or unavailability for any other reason to secure my signature to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering Company IP Rights or original works of authorship assigned to the Company as above, then I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact to act for and in my behalf and stead to execute and file any such applications or records and to do all other lawfully permitted acts to further the application for, prosecution, issuance, maintenance, and transfer of letters patent or registrations thereon with the same legal force and effect as if originally executed by me. I hereby waive and irrevocably quitclaim to the Company any and all claims, of any nature whatsoever, that I now or hereafter have for past, present, or future infringement of any and all proprietary rights assigned to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>State Non-assignable Invention Exemptions</u>. Solely to the extent that I (i) was or am an employee of the Company and (ii) was or am based in California, Illinois, Kansas, Minnesota, Washington or any other state that has enacted laws concerning employee non-assignability of inventions or otherwise entitled to the benefits of the state statutes of California, Illinois, Kansas, Minnesota, Washington or any other state that has enacted laws concerning employee non-assignability of inventions, during the Employment Period, then, to the extent the assignment of Company IP Rights to the Company in this Section 2 can be construed to cover inventions excluded under the appropriate state statutes (including, but not limited to, California Labor Code Sec. 2870, Illinois Employee Patent Act, 765 ILCS 1060, Kansas Statute K.S.A. § 44-130, Minn. Stat. § 181.78, and Sec. 2, Revised Code of Washington Section 49.44.140(1), the full terms of each are set forth on <u>Schedule A</u> attached hereto and are each incorporated herein by reference), this Section 2 shall not apply to such inventions.

**Section 3. Returning Company Group Documents.**

I agree that, at the time of termination of my employment with the Company Group for any reason, I will deliver to the Company (and will not keep in my possession, recreate, or deliver to anyone else) any and all Confidential Information, Third Party Information and all other documents, materials, information, and property developed by me pursuant to my employment or otherwise belonging to the Company Group and, if so requested, will certify in writing that I have fully complied with the foregoing obligation. I agree further that I will not copy, delete, or alter any information contained upon my Company Group computer or Company Group equipment before I return it to the Company. In addition, if I have used any personal computer, server, or e-mail system to receive, store, review, prepare or transmit any Company Group information, including but not limited to, Confidential Information, I agree to provide the Company with a computer-useable copy of all such Company Group information and then permanently delete and expunge such Company Group information from those systems; and I agree to provide the Company access to my system as reasonably requested to verify that the necessary copying and/or deletion is completed. I agree further that any property situated on the Company Group's premises and owned by the Company (or any other member of the Company Group), including disks and other storage media, filing cabinets, and other work areas, is subject to inspection by personnel of any member of the Company Group at any time with or without notice.

------

**Section 4. Disclosure of Agreement.**

As long as it remains in effect, I will disclose the existence of this Agreement to any prospective employer, partner, co-venturer, investor, or lender prior to entering into an employment, partnership, or other business relationship with such person or entity. I also consent to the notification of my prospective employer, partner, co-venturer, investor, or lender of my rights and obligations under this Agreement, by the Company providing a copy of this Agreement or otherwise.

**Section 5. Publicity.**

I hereby consent to any and all uses and displays by the Company Group of my name, voice, likeness, image, appearance and biographical information in or in connection with any printed, electronic or digital materials, including, without limitation, any pictures, audio or video recordings, digital images, websites, television programs, advertising, sales or marketing brochures, printed materials and computer media, throughout the world and at any time during or after the Employment Period for all legitimate business purposes of the Company Group (the **"*Permitted Use")***. I hereby forever release the Company Group and each of their respective current or former directors, officers, employees, shareholders, representatives and agents from any and all claims, actions, damages, losses, costs, expenses and liability of any kind arising under any legal or equitable theory whatsoever at any time during or after the Employment Period in connection with any Permitted Use.

**Section 6. Restrictions on Interfering.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Competition</u>. Except to the extent provided otherwise in, or modified by, <u>Schedule B</u> (as applicable based on the jurisdiction in which I am employed by the applicable member of the Company Group at the relevant time), during the Restricted Period, I shall not, directly or indirectly, individually or on behalf of any person, company, enterprise, or entity, or as a sole proprietor, partner, shareholder, director, officer, principal, agent, employee or executive, or in any other capacity or relationship, engage in any Competitive Activities, within the United States or any other jurisdiction in which the Company Group is actively engaged in business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Interference</u>. Except to the extent provided otherwise in, or modified by, <u>Schedule B</u> (as applicable based on the jurisdiction in which I am employed by the applicable member of the Company Group at the relevant time), during the Restricted Period, I shall not, directly or indirectly for my own account or for the account of any other individual or entity, engage in Interfering Activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "***Business Relation"*** shall mean any current or prospective client, customer, licensee, or other business relation of the Company Group, or any such relation that was a client, customer, licensee, supplier, or other business relation within the six (6) month period prior to the termination of the Employment Period, in each case, to whom I provided services, or with whom I transacted business, or whose identity became known to me in connection with my relationship with or employment by the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "***Competitive Activities"*** shall mean any business activity that is competitive with the then-current or demonstrably planned business activities of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "***Interfering Activities"*** shall mean (A) encouraging, soliciting, or inducing, or in any manner attempting to encourage, solicit, or induce, any Person employed by, or providing consulting services to, any member of the Company Group to terminate such Person's employment or services (or in the case of a consultant, materially reducing such services) with the Company Group; (B) hiring any individual who was employed by the Company Group within the six (6) month period prior to the date of such hiring; or (C) encouraging, soliciting, or inducing, or in any manner attempting to encourage, solicit, or induce, any Business Relation to cease doing business with or reduce the amount of business conducted with any member of the Company Group, or in any way interfering with the relationship between any such Business Relation and any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "***Person***" shall mean any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust (charitable or non-charitable), unincorporated organization, or other form of business entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "***Restricted Period"*** shall mean the period commencing on the date hereof and ending on the twenty-four (24) month anniversary of the date of any termination of the Employment Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Non-Disparagement</u>. I agree that during the Employment Period, and at all times thereafter, subject to <u>Schedule B</u> (as applicable based on the jurisdiction in which I am employed by the applicable member of the Company Group at the relevant time), I will not make any disparaging or defamatory comments regarding any member of the Company Group or its respective current or former directors, officers, employees or shareholders in any respect or make any comments concerning any aspect of my relationship with any member of the Company Group or any conduct or events which precipitated any termination of my employment from the Company Group. However, my obligations under this subsection (d) shall not apply to disclosures required by applicable law, regulation, or order of a court or governmental agency. Further, nothing in this Agreement prohibits me from speaking with law enforcement, the Equal Employment Opportunity Commission, any state or local division of human rights or fair employment agency, or my attorney.

**Section 7. Reasonableness of Restrictions.**

I acknowledge and recognize the highly competitive nature of the Company Group's business, that access to Confidential Information renders me special and unique within the Company Group's industry, and that I will have the opportunity to develop substantial relationships with existing and prospective clients, accounts, customers, consultants, contractors, investors, and strategic partners of the Company Group during the course of and as a result of my

------

employment with the Company Group. In light of the foregoing, I recognize and acknowledge that the restrictions and limitations set forth in this Agreement are reasonable and valid in geographical and temporal scope and in all other respects and are essential to protect the value of the business and assets of the Company Group. I acknowledge further that the restrictions and limitations set forth in this Agreement will not materially interfere with my ability to earn a living following the termination of the Employment Period and that my ability to earn a livelihood without violating such restrictions is a material condition to my employment with the Company Group.

**Section 8. Independence; Severability; Blue Pencil.**

Each of the rights enumerated in this Agreement shall be independent of the others and shall be in addition to and not in lieu of any other rights and remedies available to the Company Group at law or in equity. If any of the provisions of this Agreement or any part of any of them is hereafter construed or adjudicated to be invalid or unenforceable, the same shall not affect the remainder of this Agreement, which shall be given full effect without regard to the invalid portions. If any of the covenants contained herein are held to be invalid or unenforceable because of the duration of such provisions or the area or scope covered thereby, I agree that the court making such determination shall have the power to reduce the duration, scope, and/or area of such provision to the maximum and/or broadest duration, scope, and/or area permissible by law, and in its reduced form said provision shall then be enforceable.

**Section 9. Injunctive Relief.**

I expressly acknowledge that, because my services are personal and unique and because I will have access to Confidential Information, any breach or threatened breach of any of the terms and/or conditions set forth in this Agreement may result in substantial, continuing, and irreparable injury to the members of the Company Group for which monetary damages would not be an adequate remedy. Therefore, I hereby agree that, in addition to any other right or remedy that may be available to the Company in law or in equity, any member of the Company Group shall be entitled to injunctive relief, specific performance, or other equitable relief by a court of appropriate jurisdiction in the event of any breach or threatened breach of the terms of this Agreement without the necessity of proving irreparable harm or injury as a result of such breach or threatened breach or posting a bond and without liability should relief be denied, modified or vacated. Notwithstanding any other provision to the contrary, I acknowledge and agree that the Restricted Period shall be tolled during any period of violation of any of the covenants in Section 6 hereof and during any other period required for litigation during which the Company or any other member of the Company Group seeks to enforce such covenants against me if it is ultimately determined that I was in breach of such covenants.

**Section 10. Cooperation.**

I agree that, following any termination of my employment, I will continue to provide reasonable cooperation to the Company and/or any other member of the Company Group and its or their respective counsel in connection with any investigation, administrative proceeding, or litigation relating to any matter that occurred during the Employment Period in which I was involved or of which I have knowledge. As a condition of such cooperation, the Company shall

------

reimburse me for reasonable out-of-pocket expenses incurred at the request of the Company with respect to my compliance with this Section. I also agree that, in the event that I am subpoenaed by any person or entity (including, but not limited to, any government agency) to give testimony or provide documents (in a deposition, court proceeding, or otherwise) that in any way relates to my employment by the Company and/or any other member of the Company Group, I will give prompt notice of such request to the Company and will make no disclosure until the Company and/or the other member of the Company Group has had a reasonable opportunity to contest the right of the requesting person or entity to such disclosure.

**Section 11. General Provisions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law and Jurisdiction</u>. EXCEPT WHERE PREEMPTED BY FEDERAL LAW OR EXCEPT AS OTHERWISE PROVIDED IN <u>SCHEDULE B</u> (TO THE EXTENT APPLICABLE TO ME), THE VALIDITY, INTERPRETATION, CONSTRUCTION, AND PERFORMANCE OF THIS AGREEMENT IS GOVERNED BY AND IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF FLORIDA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS RULES. FURTHER, I HEREBY CONSENT TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF FLORIDA, AND WAIVE ANY RIGHT TO TRIAL BY JURY, IN CONNECTION WITH ANY DISPUTE ARISING UNDER OR CONCERNING THIS AGREEMENT. NOTWITHSTANDING THE FOREGOING, TO THE EXTENT REQUIRED BY THE APPLICABLE LAWS OF THE STATE IN WHICH I WORK (OR, IF POST-TERMINATION, THE STATE IN WHICH I MOST RECENTLY WORKED), THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER AND IN ACCORDANCE WITH LAWS OF THE STATE IN WHICH I WORK (OR, IF POST-TERMINATION, THE STATE IN WHICH I MOST RECENTLY WORKED), IN EACH CASE, WITHOUT REFERENCE TO RULES RELATING TO CONFLICTS OF LAW.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Attorneys' Fees</u>. I agree to indemnify the Company Group for its reasonable attorneys' fees and costs incurred in enforcing the terms of this Agreement should I violate any of its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Entire Agreement</u>. This Agreement sets forth the entire agreement and understanding between the Company and me relating to the subject matter herein and merges all prior discussions between us, provided that nothing contained in this Agreement shall limit, restrict or adversely affect in any way the Company's right, title or interest in any Company IP Rights transferred or assigned by me (or on my behalf) to the Company at any time prior to the date hereof. No modification or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing signed by the party to be charged. Any subsequent change or changes in my duties, obligations, rights, or compensation will not affect the validity or scope of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Right of Continued Employment</u>. I acknowledge and agree that nothing contained herein shall be construed as granting me any right to continued employment by the Company Group, and the right of the applicable member of the Company Group to terminate my employment at any time and for any reason, with or without cause, is specifically reserved.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Successors and Assigns</u>. This Agreement will be binding upon my heirs, executors, administrators, and other legal representatives and will be for the benefit of the Company, its successors, and its assigns. I expressly acknowledge and agree that this Agreement may be assigned by the Company without my consent to any other member of the Company Group as well as any purchaser of all or substantially all of the assets or stock of the Company or of any business or division of the Company for which I provide services, whether by purchase, merger, or other similar corporate transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Survival</u>. The provisions of this Agreement shall survive the termination of my employment with the Company and/or the assignment of this Agreement by the Company to any successor in interest or other assignee.

\* \* \*

[*Signature to appear on the following page.*]

------

I, Steven Hoffman, have executed this Restrictive Covenant Agreement on the date set forth below:

---

| | |
|:---|:---|
|  Date: September 3, 2024 | /s/ Steven Hoffman |
|  | (Signature) |
|  | Steven Hoffman |
|  | (Type/Print Name) |

---

[*Signature Page to Restrictive Covenant Agreement*]

------

**ANNEX A** 

**UNDERTAKING OF SECRECY** 

(See attached.)

------

**Schedule 2** 

Undertaking of Secrecy

To: Safepoint Holdings, Inc. (Florida, U.S.A.)

I, Steven Hoffman, HEREBY UNDERTAKE THE FOLLOWING:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. That during and after the course of my employment with Safepoint Holdings, Inc. or any of its affiliates (the
"Company"), I will keep secret the affairs and concerns of the Company, and the nature and particulars of the Company, including, but not limited to its investors, clients, transactions, trading models and trading strategies or the
financial results or performance figures of the Company or any client or strategy that may come to my attention during the course of my employment with the Company ("Confidential Information").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. That upon my departure from the Company, I will not disclose to any person the affairs of the Company,
including, but not limited to its investors, clients, transactions, trading models and trading strategies that may come to my attention during the course of my employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. That upon my departure from the Company, I will not take with me any Confidential Information belonging to or
concerning the Company, or its clients, whether in printed form or on any electronic storage device.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. In the event that I do have in my possession any Confidential Information following my departure from the
Company, I undertake to deliver such information to the Company within 3 days of my departure. If personal delivery of such information is either not possible or inconvenient, I undertake to contact the Chief Executive Officer of the Company and
arrange a suitable method of disposal of such confidential information within three days of my departure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. In the event that I am legally required to disclose any Confidential Information to a third party, I agree to:
(i) promptly notify the Company of the existence, terms and circumstances surrounding such possible disclosure; (ii) consult with the Company on the advisability of taking legally available steps to resist or narrow such disclosure;
(iii) unless prohibited by law, supply the Company with copies of all communications between me and any third party to whom disclosure is to be made or by whose order it is to be made; and (iv) cooperate with any of the Company's
efforts, at the Company's expense, to obtain an order or other reliable assurance that confidential treatment will be accorded to such information.

------

I hereby acknowledge that any breach of this undertaking may result in my dismissal from the Company for Cause (as defined in my Employment Agreement), and that my obligations under this undertaking continue after the termination of my employment with the Company.

---

| | |
|:---|:---|
| DATE: 4/13/16 |  |
| /s/ Steven Hoffman | /s/ Nancy Baily |
| Steven Hoffman | WITNESS |

---

*[Signature Page to Undertaking of Secrecy]* 

------

**SCHEDULE A** 

**RESTRICTIVE COVENANT AGREEMENT** 

**INVENTION ASSIGNMENT NOTICE** 

I am hereby notified that the Restrictive Covenant Agreement, dated as of September ___, 2024, to which this Schedule A is attached, does not apply to any invention which qualifies fully for exclusion under the provisions of California Labor Code Sec. 2870, Illinois Employee Patent Act, 765 ILCS 1060, Sec. 2, Kansas Statute K.S.A. §44-130, Minn. Stat. §181.78, Revised Code of Washington Section 49.44.140(1) or any other state statute not listed below concerning employee non-assignability of inventions. The following is the text of each of the aforementioned statutes.

**CALIFORNIA LABOR CODE SECTION 2870** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Relate at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Result from any work performed by the employee for the employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

**ILLINOIS EMPLOYEE PATENT ACT, 765 ILLINOIS COMPILED STATUTES 1060** 

**Employee rights to inventions - conditions.** (1) A provision in an employment agreement which provides that an employee shall assign or offer to assign any of the employee's rights in an invention to the employer does not apply to an invention for which no equipment, supplies, facilities, or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless (a) the invention relates (i) to the business of the employer, or (ii) to the employer's actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by the employee for the employer. Any provision which purports to apply to such an invention is to that extent against the public policy of this State and is to that extent void and unenforceable. The employee shall bear the burden of proof in establishing that his invention qualifies under this subsection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) An employer shall not require a provision made void and unenforceable by subsection (1) of this Section as a condition of employment or continuing employment. This Act shall not preempt existing common law applicable to any shop rights of employers with respect to employees who have not signed an employment agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If an employment agreement entered into after January 1, 1984, contains a provision requiring the employee to assign any of the employee's rights in any invention to the employer, the employer must also, at the time the agreement is made, provide a written notification to the employee that the agreement does not apply to an invention for which no equipment, supplies, facility, or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless (a) the invention relates (i) to the business of the employer, or (ii) to the employer's actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by the employee for the employer.

**KANSAS STATUTE K.S.A. SECTION 44-130** 

**Employment agreements assigning employee rights in inventions to employer; restrictions; certain provisions void; notice and disclosure.** (a) Any provision in an employment agreement which provides that an employee shall assign or offer to assign any of the employee's rights in an invention to the employer shall not apply to an invention for which no equipment, supplies, facilities or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The invention relates to the business of the employer or to the employer's actual or demonstrably anticipated research or development; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The invention results from any work performed by the employee for the employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any provision in an employment agreement which purports to apply to an invention which it is prohibited from applying to under subsection (a), is to that extent against the public policy of this state and is to that extent void and unenforceable. No employer shall require a provision made void and unenforceable by this section as a condition of employment or continuing employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If an employment agreement contains a provision requiring the employee to assign any of the employee's rights in any invention to the employer, the employer shall provide, at the time the agreement is made, a written notification to the employee that the agreement does not apply to an invention for which no equipment, supplies, facility or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the invention relates directly to the business of the employer or to the employer's actual or demonstrably anticipated research or development; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the invention results from any work performed by the employee for the employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Even though the employee meets the burden of proving the conditions specified in this section, the employee shall disclose, at the time of employment or thereafter, all inventions being developed by the employee, for the purpose of determining employer and employee rights in an invention.

ii

------

**MINNESOTA STATUTES SECTION 181.78** 

**Subdivision 1. Inventions not related to employment.** Any provision in an employment agreement which provides that an employee shall assign or offer to assign any of the employee's rights in an invention to the employer shall not apply to an invention for which no equipment, supplies, facility or trade secret information of the employer was used and which was developed entirely on the employee's own time, and (1) which does not relate (a) directly to the business of the employer or (b) to the employer's actual or demonstrably anticipated research or development, or (2) which does not result from any work performed by the employee for the employer. Any provision which purports to apply to such an invention is to that extent against the public policy of this state and is to that extent void and unenforceable.

**Subdivision. 2.Effect of subdivision 1.** No employer shall require a provision made void and unenforceable by subdivision 1 as a condition of employment or continuing employment.

**Subdivision. 3.Notice to employee.** If an employment agreement entered into after August 1, 1977 contains a provision requiring the employee to assign or offer to assign any of the employee's rights in any invention to an employer, the employer must also, at the time the agreement is made, provide a written notification to the employee that the agreement does not apply to an invention for which no equipment, supplies, facility or trade secret information of the employer was used and which was developed entirely on the employee's own time, and (1) which does not relate (a) directly to the business of the employer or (b) to the employer's actual or demonstrably anticipated research or development, or (2) which does not result from any work performed by the employee for the employer.

**REVISED CODE OF WASHINGTON SECTION 49.44.140** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A provision in an employment agreement which provides that an employee shall assign or offer to assign any of the employee's rights in an invention to the employer does not apply to an invention for which no equipment, supplies, facilities, or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless (a) the invention relates (i) directly to the business of the employer, or (ii) to the employer's actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by the employee for the employer. Any provision which purports to apply to such an invention is to that extent against the public policy of this state and is to that extent void and unenforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) An employer shall not require a provision made void and unenforceable by subsection (1) of this section as a condition of employment or continuing employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If an employment agreement entered into after September 1, 1979, contains a provision requiring the employee to assign any of the employee's rights in any invention to the employer, the employer must also, at the time the agreement is made, provide a written notification to the employee that the agreement does not apply to an invention for which no equipment, supplies, facility, or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless (a) the invention relates (i) directly to the business of the employer, or (ii) to the employer's actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by the employee for the employer.

iii

------

**REVISED CODE OF WASHINGTON SECTION 49.44.150** 

Even though the employee meets the burden of proving the conditions specified in Revised Code of Washington 49.44.110, the employee shall, at the time of employment or thereafter, disclose all inventions being developed by the employee, for the purpose of determining employer or employee rights. The employer or the employee may disclose such inventions to the department of employment security, and the department shall maintain a record of such disclosures for a minimum period of five years.

iv

------

**SCHEDULE B** 

**JURISDICTION-SPECIFIC MODIFICATIONS TO CONFIDENTIALITY, NON-INTERFERENCE, AND INVENTION ASSIGNMENT AGREEMENT** 

This <u>Schedule B</u> to the Restrictive Covenant Agreement (the "***Agreement***") includes jurisdiction-specific addenda, which modify certain sections of the Agreement as applied to individuals who primarily reside and work in one of the applicable jurisdictions, but only to the extent the laws of such jurisdiction are applicable to the Agreement. This <u>Schedule B</u> should be read in conjunction with the rest of the Agreement and enforced to the fullest extent permissible to protect the Company Group's legitimate business interests. Capitalized terms used but not defined in this <u>Schedule B</u> shall have the meanings ascribed to such terms in the Agreement.

---

| | |
|:---|:---|
| **California** | &nbsp;&nbsp;&nbsp;&nbsp; If I primarily reside and work in California:<br>• <u>Sections 1</u> and <u>6(d)</u> of the Agreement are not intended to, and do not purport to, infringe on my right to discuss or disclose information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that I have reason to believe is unlawful.<br>• Each of (i) <u>Section 6(a)</u> of the Agreement and (ii) clause (B) and clause (C) of the definition of "Interfering Activities" as used in <u>Section 6(b)</u> of the Agreement (*i.e.*, a covenant not to hire employees of the Company Group and not to solicit customers) will not apply to me following the termination of the Employment Period; *provided*, that, I agree that, following the Employment Period, I will not, directly or indirectly, whether acting for my own account or for the account of any other individual, company, enterprise, or entity, or as a sole proprietor, owner, partner, shareholder, director, officer, principal, agent, executive, employee, contractor or otherwise, utilize the Company Group's trade secrets to solicit, divert or take away, or attempt to solicit, divert or take away, any business of any of the clients, customers or accounts, or prospective clients, customers or accounts, of any member of the Company Group.<br>• I understand that the provisions of the Agreement requiring assignment of developments to the Company do not apply to any invention which qualifies fully under the provisions of Section 2870 of the California Labor Code (the full terms of which are set forth on <u>Schedule B</u> of the Agreement). I will advise the Company promptly in writing of any inventions that I believe meet the criteria in Section 2870 of the California Labor Code and I bear the full burden of proving to any member of the Company Group that an invention qualifies fully under Section 2870 of the California Labor Code. I acknowledge receipt of the Agreement and of written notification of the provisions of Section 2870 of the California Labor Code.<br>|

---

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • NOTWITHSTANDING <u>Section 11(A)</u> OF THE AGREEMENT, THE VALIDITY, INTERPRETATION, CONSTRUCTION, AND PERFORMANCE OF THE AGREEMENT IS GOVERNED BY AND IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS RULES. FURTHER, I HEREBY CONSENT TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE NORTHERN DISTRICT OF THE STATE OF CALIFORNIA. THE WAIVER OF ANY RIGHT TO TRIAL BY JURY, IN CONNECTION WITH ANY DISPUTE ARISING UNDER OR CONCERNING THE AGREEMENT, WILL NOT APPLY TO ME TO THE EXTENT NOT ENFORCEABLE UNDER CALIFORNIA LAW.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Section 11(b) of the Agreement will not apply to me.<br>|
| **Colorado** | If I am employed or primarily reside in Colorado: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that, following the Employment Period, <u>Section 6(a)</u> of the Agreement will apply to me (i) only if my "annualized cash compensation" at the time it is entered into and at the time of enforcement is equal to or exceeds the "threshold amount for highly compensated workers" as set forth in Colorado Revised Statutes Section 8- 2-113(2)(b) and (c), which was $123,750 in 2024, subject to annual adjustments for subsequent years as determined by the Division of Labor Standards and Statistics in the Colorado Department of Labor and Employment, and (ii) only to the extent reasonably necessary to protect the Company Group's legitimate interest in protecting trade secrets.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that, following the Employment Period, clause (C) of the definition of "Interfering Activities" as used in <u>Section 6(b)</u> of the Agreement (*i.e.*, a covenant not to solicit customers) will apply to me (i) only if my "annualized cash compensation" at the time it is entered into and at the time of enforcement is equal to or exceeds sixty percent (60%) of the "threshold amount for highly compensated workers" as set forth in Colorado Revised Statutes Section 8-2-113(2)(d), which was $74,250 in 2024, subject to annual adjustments for subsequent years as determined by the Division of Labor Standards and Statistics in the Colorado Department of Labor and Employment and (ii) only to the extent reasonably necessary to protect the Company Group's legitimate interest in protecting trade secrets.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and agree that (i) during my employment I will have access to and knowledge of Confidential Information and such Confidential Information contains trade secrets and (ii) the restrictions and limitations set forth in the Agreement are designed to protect, and are essential to protect, trade secrets of the Company Group pursuant to Colorado Revised Statutes Section 8-2-113.<br>|

---

ii

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If, at the time of termination of the Employment Period, I primarily resided or worked in Colorado, notwithstanding any other provision to the contrary in the Agreement (including Section 11(a)), (i) applicable laws of the State of Colorado shall govern the enforceability of a covenant not to compete contained in the Agreement and (ii) nothing in the Agreement shall require me to adjudicate the enforceability of a covenant not to compete contained in the Agreement outside of the State of Colorado.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and agree that (i) I have been provided written notice of the covenant not to compete contained in the Agreement in a separate document and in clear and conspicuous terms, at least fourteen (14) days before the earlier of (x) the effective date of the Agreement or (y) the effective date of any additional compensation or change in the terms or conditions of employment that provides consideration for the Agreement and (ii) such notice was provided with a copy of the Agreement, identified the Agreement by name and stated that the Agreement contains a covenant not to compete that could restrict my options for subsequent employment following my separation from the Company Group, and directed me to <u>Sections 6(a)</u> through <u>6(c)</u> of the Agreement that contain the covenant not to compete.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that I may request an additional copy of the covenant not to compete once each calendar year.<br>|
| **District of Columbia** | &nbsp;&nbsp;&nbsp;&nbsp; • I understand that the non-competition obligations under <u>Section 6(a)</u> of the Agreement will not apply to me if I am considered a "covered employee" under the District of Columbia's Ban on Non-Compete Agreements Amendment Act of 2020, as amended by the Non-compete Clarification Amendment Act of 2022 (collectively, the "***DC Non-Compete Act***"). I am a covered employee if I am not a "highly compensated employee" (as described below) and the following conditions are satisfied: (i) If I have commenced work for the Company Group, (A) I spend more than 50% of my work time for the Company Group working in the District of Columbia or (B) my employment is based in the District of Columbia and I regularly spend a substantial amount of my work time for the Company Group in the District of Columbia and not more than 50% of my work time for the Company in another jurisdiction; or (ii) if I have not yet commenced work for the Company Group, (A) the Company Group reasonably anticipates that I will spend more than 50% of my work time for the Company Group working in the District of Columbia or (B) my employment for the Company Group will be based in the District of Columbia, and the Company Group reasonably anticipates that I will regularly spend a substantial amount of my work time for the Company Group in the District of Columbia and not more than 50% of my work time for the Company Group in another jurisdiction.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that <u>Section 6(a)</u> of the Agreement will apply to me if I am a "highly compensated employee" pursuant to the DC Non-Compete Act (and therefore not a "covered employee"). Under the DC Non-Compete Act, a "highly compensated employee" is an employee who is reasonably expected to earn from the Company Group in a consecutive 12-month period, or who has earned in the preceding 12-month period,<br>|

---

iii

------

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; compensation greater than or equal to the "minimum qualifying annual compensation" (which is $154,000 for employees and $257,000 for medical specialists as of January 1, 2024, subject to increase each year based on increases in the Department of Labor's Consumer Price Index for All Urban Consumers in the Washington Metropolitan Statistical Area). |
| &nbsp;&nbsp;&nbsp;&nbsp; • If I am a "highly compensated employee," I acknowledge and agree that (A) I have been provided a copy of the Agreement (including the non-compete provision) at least fourteen (14) days before I commenced employment for the Company Group to review the non-compete provision in the Agreement or, if I am a current employee, at least fourteen (14) days before the date I was required to sign the Agreement and (B) I had or could have had at least fourteen (14) days to review and consider the Agreement before I was required to sign the Agreement, and that if I execute the Agreement prior to the expiration of such period, I have voluntarily and knowingly waived the remainder of such review period.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • If I am a "highly compensated employee," the following notice is being provided pursuant to D.C. Code § 32–581.03a.<br>*The District's Ban on Non-Compete Agreements Amendment Act of 2020 limits the use of non-compete agreements. It allows employers to request non-compete agreements from highly compensated employees, as that term is defined in the Ban on Non-Compete Agreements Amendment Act of 2020, under certain conditions. The Company has determined that you are a highly compensated employee. For more information about the Ban on Non-Compete Agreements Amendment Act of 2020, contact the District of Columbia Department of Employment Services (DOES).* |
| &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that, notwithstanding the foregoing, during the Employment Period, <u>Section 6(a)</u> of the Agreement prohibits me, and I will be prohibited, from accepting money or a thing of value for performing work for a person other than the Company Group, where the Company Group reasonably determines that my acceptance of money or a thing of value under such circumstances will result in the disclosure or use of Confidential Information or proprietary information of the Company Group, conflict with the Company Group's, industry's or profession's established rules regarding conflicts of interests, constitute a conflict of commitment if I am employed by a higher education institution, or impair my ability to comply with the District or federal laws or regulations, a contract or a grant agreement.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that, notwithstanding the foregoing, <u>Section 6</u> of the Agreement may be enforced to the extent it does not constitute a "non-compete provision" as defined in D.C. Code § 32-581.01 as a provision that provides a "long-term incentive" as defined in D.C. Code § 32-581.01.<br>|

---

iv

------

---

| | |
|:---|:---|
| **Georgia** | If I am employed in Georgia: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Following the Employment Period, <u>Section 6(a)</u> of the Agreement will not apply to me if I do not, in the course of my employment, (i) customarily and regularly solicit for the Company Group's customers or prospective customers; (ii) customarily and regularly engage in making sales or obtaining orders or contracts for products or services to be performed by others; (iii) perform the following duties: (A) have a primary duty of managing the enterprise in which I am employed or of a customarily recognized department or subdivision thereof, (B) customarily and regularly direct the work of two or more other employees, and (C) have the authority to hire or fire other employees or have particular weight given to suggestions and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees; or (iv) perform the duties of a key employee or professional.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Following the Employment Period, for purposes of <u>Section 6(b)</u> of the Agreement, clause (C) of the definition of "Interfering Activities" as used in <u>Section 6(b)</u> of the Agreement (*i.e.*, a covenant not to solicit customers) will apply only (i) to such Business Relation with whom I had material contact and (ii) with respect to products or services that are competitive with those provided by the Company Group's business (*i.e.*, activities, products, or services that are the same as or similar to the activities, products, or services of the employer and of the type conducted, authorized, offered, or provided within two (2) years prior to the termination of the Employment Period).<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Notwithstanding Section 11(a) of the Agreement, the waiver of any right to trial by jury in connection with any dispute arising under or concerning the Agreement will not apply to me to the extent not enforceable under the laws of the State of Georgia.<br>|
| **Idaho** | If I am employed in Idaho, I acknowledge and agree that (i) for purposes of <u>Sections 6(a)</u> and <u>6(b)</u> of the Agreement, I am a "key employee" within the meaning of Idaho Code Section 44-2701, et seq. and (ii) the restrictions under <u>Sections 6(a)</u> and <u>6(b)</u> of the Agreement are necessary to protect the Company Group's legitimate business interests within the meaning of Idaho Code Section 44-2701, et seq. |
| **Illinois** | &nbsp;&nbsp;&nbsp;&nbsp; If I am employed in Illinois:<br>• I acknowledge and agree that restrictions under <u>Section 6(a)</u> and <u>Section 6(b)</u> of the Agreement are necessary to protect the Company Group's legitimate business interests, including its interests in the Company Group's trade secrets and Confidential Information, its substantial and near permanent relationships with customers, and its customer goodwill.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that <u>Section 6(a)</u> of the Agreement will apply to me only if my actual or expected annualized rate of earnings exceeds the applicable earnings threshold under the Illinois Freedom to Work Act (820 ILSC 90/10), which is $75,000 per year prior to January 1, 2027 (or $80,000 per year beginning January 1, 2027, $85,000 per year beginning January 1, 2032, and $90,000 per year beginning January 1, 2037, or such other amounts as prescribed by applicable law).<br>|

---

v

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that <u>Section 6(b)</u> of the Agreement will apply to me only if my actual or expected annualized rate of earnings exceeds the applicable earnings threshold under the Illinois Freedom to Work Act (820 ILSC 90/10), which is $45,000 per year prior to January 1, 2027 (or $47,500 per year beginning on January 1, 2027, $50,000 per year beginning on January 1, 2032, and $52,500 per year beginning on January 1, 2037, or such other amounts as prescribed by applicable law).<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Further, in the event that my employment is terminated (or furloughed) by the Company Group as the result of business circumstances or governmental orders related to the COVID-19 pandemic or under circumstances that are similar to the COVID-19 pandemic, <u>Section 6(a)</u> or <u>6(b)</u> of the Agreement shall not apply to me unless I am provided with compensation equivalent to my base salary at the time of termination for the period of enforcement *minus* compensation earned through subsequent employment during the period of enforcement (such payment, "***Noncompete Payment***"). I agree that, upon a request from the Company, I will provide the Company with proof of my new wage rate or salary through subsequent employment for the purposes of calculating the Noncompete Payment, which may be adjusted from payment to payment based on the information I provide to the Company. Notwithstanding anything foregoing, I acknowledge and agree that nothing herein shall be construed to confer upon me any right to Noncompete Payments or severance payments and that the Company may, in its sole discretion, elect to not enforce the provisions of <u>Section 6(a)</u> of the Agreement. For avoidance of doubt, unless my annualized earnings exceed the annual earnings threshold described above, the restrictions in <u>Section 6(a)</u> or <u>Section 6(b)</u> of the Agreement, as applicable, shall not apply to me.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I further acknowledge and agree that (i) the Company has hereby advised me in writing to seek independent advice from my own legal counsel before entering into the Agreement and (ii) I had or could have had fourteen (14) calendar days from the date I received the Agreement to review and consider the Agreement, and that if I execute the Agreement prior to the expiration of such period, I have voluntarily and knowingly waived the remainder of such review period.<br>|
| **Maine** | If I am employed in Maine: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If, while employed with the Company Group, I earn a wage at or below 400% of the federal poverty level, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period.<br>|

---

vi

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If the Agreement was signed in connection with an offer of employment with the Company Group, I acknowledge that it was disclosed to me that a non-compete agreement would be required prior to my offer of employment.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and agree that I was provided a copy of the Agreement at least three (3) business days before I was required to sign the Agreement.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • The terms of <u>Section 6(a)</u> of the Agreement will not take effect until I have been employed with the Company Group for at least one (1) year or after a period of six (6) months from the date the Agreement was signed, whichever is later.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and agree that <u>Section 6(a)</u> of the Agreement is no broader than necessary to protect the Company Group's trade secrets, Confidential Information, and/or goodwill.<br>|
| **Maryland** | If I am employed in Maryland, if while employed with the Company Group I earn a wage equal to or less than (i) $19.88 per hour or $41,350 per year, or (ii) 150% of the Maryland minimum wage rate, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period. For the avoidance of doubt, the above does not in any way permit me to take or use a client list or other proprietary client-related information. |
| **Massachusetts** | If I am a resident of Massachusetts: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • <u>Section 6(a)</u> of the Agreement will not apply following a termination of my employment if (i) I am classified as "nonexempt" under the U.S. Fair Labor Standards Act, (ii) I am an undergraduate or graduate student partaking in an internship or otherwise entering a short-term employment relationship with the Company Group, whether paid or unpaid, while enrolled in a full-time or part-time undergraduate or graduate educational institution, (iii) my employment is terminated by a member of the Company Group without "cause," or (iv) I am of age 18 or younger. "***Cause***" for purposes of <u>Section 6(a)</u> of the Agreement will exist if (1) there is a reasonable or good faith basis for the Company Group's dissatisfaction with my job performance, conduct or behavior, or (2) grounds for termination exist that are reasonably related, in the Company Group's honest judgment, to the needs of the business.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • "***Competitive Activities***" means any business activity that is competitive with the then-current or demonstrably planned business activities of the Company Group; provided, however, that following the termination of the Employment Period, "***Competitive Activities***" shall mean any business activity of the Company Group in which I participated or provided services within the two (2) year period immediately preceding the termination of the Employment Period.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • With respect to <u>Section 6(a)</u> of the Agreement, unless (A) I am classified as "nonexempt" under the U.S. Fair Labor Standards Act, an undergraduate or graduate student referenced in clause (ii) above or of age 18 or younger, or my employment is terminated by the Company Group without "cause," or (B) the Company otherwise waives the restrictions set forth in <u>Section 6(a)</u><br>|

---

vii

------

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of the Agreement following the termination of the Employment Period, the Company shall pay me the Non-Compete Consideration (as defined below) and I acknowledge and agree that the Non-Compete Consideration shall constitute mutually agreed upon consideration in support of the restrictions set forth in <u>Section 6(a)</u> of the Agreement following the termination of the Employment Period. Notwithstanding any provision herein to the contrary, the payment of the Non-Compete Consideration will be conditioned upon my continued compliance with the terms of the Agreement. |
| &nbsp;&nbsp;&nbsp;&nbsp; • "***Non-Compete Consideration***" shall mean continued payment of my base salary for a period of one (1) month following the date on which the Employment Period terminates, payable in accordance with the employer's regular payroll practices, subject to my continued compliance with the terms of the Agreement (as modified in this <u>Schedule C</u>). The Company and I agree that the Non-Compete Consideration shall constitute "other mutually- agreed upon consideration" and not "garden leave" as such terms are used in M.G.L. c. 149, § 24L.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • Following the termination of the Employment Period, restrictions under <u>Section 6(a)</u> of the Agreement shall be limited in geographic scope to any geographic area in which I, during my time within the two (2) year period preceding the termination of the Employment Period, provided services to the Company Group or had a material presence or influence as an employee of the Company Group.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • If the Agreement is entered into in connection with the commencement of employment, I acknowledge and agree that I have been provided a copy of the Agreement (including the non-compete provision) prior to the earlier of (A) a formal offer of employment or (B) at least ten (10) business days before I commenced employment for the Company Group to review the Agreement.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • If the Agreement is entered into after I commenced employment for the Company Group, I acknowledge and agree that the benefits granted to me concurrently with the Agreement constitute fair and reasonable consideration independent from the continuation of employment in support of my entering into the Agreement in light of the restrictions set forth in <u>Section 6(a)</u> of the Agreement, and that I have been provided a copy of the Agreement (including the non-compete provision) and/or notice of the Agreement at least ten (10) business days before the Agreement is to be effective.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • The Company has hereby advised me in writing that I have the right to consult with counsel prior to entering into the Agreement.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • Notwithstanding Section 11(a) of the Agreement, any suit, action, or proceeding brought by or against me in connection with the enforcement of <u>Section 6(a)</u> of the Agreement shall be brought in the Suffolk county, Massachusetts, and the superior court or the business litigation session of the superior court shall have jurisdiction to adjudicate such dispute. For the avoidance of doubt, all other provisions of the Agreement remain subject to the jurisdiction and venue provisions set forth in Section 11(a) of the Agreement.<br>|

---

viii

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I ACKNOWLEDGE THAT I HAVE CAREFULLY READ THE AGREEMENT AND HAVE BEEN GIVEN AT LEAST TEN (10) BUSINESS DAYS TO REVIEW AND SIGN THE AGREEMENT, DURING WHICH TIME I HAD THE RIGHT TO CONSULT WITH AN ATTORNEY OF MY OWN CHOOSING AT MY OWN EXPENSE. I FURTHER ACKNOWLEDGE THAT I FULLY UNDERSTAND THE CONTENT AND EFFECT OF THE AGREEMENT AND AGREE TO ALL OF THE PROVISIONS CONTAINED HEREIN. I AGREE THAT VOLUNTARILY SIGNING THE AGREEMENT BEFORE THE EXPIRATION OF THE TEN (10) BUSINESS DAYS SHALL SERVE AS A WAIVER OF THE TEN (10) BUSINESS DAY REVIEW PERIOD.<br>|
| **Minnesota** | If I primarily reside and work in Minnesota: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If, at the time of termination of the Employment Period, I primarily resided or worked in Minnesota, notwithstanding Section 11(a) of the Agreement, validity, interpretation, construction and performance of the Agreement shall be governed by the laws of the State of Minnesota, and nothing in the Agreement shall require me to adjudicate a claim or controversy arising out of the Agreement outside of the State of Minnesota.<br>|
| **Missouri** | If I am employed in Missouri, <u>Section 6(b)</u> of the Agreement will not apply to the solicitation and recruitment of employees who provide only secretarial or clerical services. |
| **Nevada** | If I am employed in Nevada: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period if I am paid on an hourly basis.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If the Employment Period is terminated because of a reduction in force, a reorganization, or a similar restructuring, <u>Section 6(a)</u> of the Agreement will only apply to me following such termination while the Company Group is paying me salary, benefits, or equivalent compensation, including, without limitation, severance pay.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • <u>Section 6(a)</u> of the Agreement shall not restrict me from providing services to a former customer or client following the Employment Period if: (i) I did not solicit the former customer or client; (ii) the customer or client voluntarily chose to leave and seek services from me; and (iii) I am otherwise complying with the limitations in the covenant as to time, geographical area and scope of activity to be restrained, other than any limitation on providing services to a former customer or client who seeks my services without any contact instigated by me.<br>|

---

ix

------

---

| | |
|:---|:---|
| **New Hampshire** | If I am employed in New Hampshire and am engaged by the Company Group as an employee: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge that, pursuant to New Hampshire Revised Statute § 275:70-a, if while employed with the Company Group I earn a wage at an hourly rate less than or equal to 200% of the federal minimum wage, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period so long as I maintain a permanent residence in New Hampshire.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and agree that I have been provided a copy of the Agreement prior to my acceptance of the offer of employment.<br>|
| **North Dakota** | If I am employed in North Dakota, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period. |
| **Oklahoma** | If I am employed in Oklahoma, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period. |
| **Oregon** | If I am employed in Oregon: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • <u>Section 6(a)</u> of the Agreement will apply to me following the termination of the Employment Period only if (i) I am engaged in administrative, executive or professional work, (ii) I perform predominantly intellectual, managerial or creative tasks, (iii) I exercise discretion and independent judgment, (iv) I am paid on a salary basis, and (v) the total amount of my annual gross salary and commissions, calculated on an annual basis, at the time of the termination of the Employment Period exceeds the amount required under Oregon Revised Statutes ("ORS") § 653.295(1)(e) (which is $113,241 in 2024) as adjusted annually to track inflation pursuant to the Consumer Price Index for All Urban Consumers, West Region (All Items) (an employee meeting the foregoing criteria is hereafter referred to as a "***Qualified Employee***").<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and agree that (i) the Agreement is being executed upon my initial employment with Company Group and is a condition of such employment or (ii) the Agreement is being executed upon my "subsequent bona fide advancement" within the meaning of ORS § 653.295 because of, among other things, my increased responsibilities and access to Confidential Information and trade secrets. If the Agreement is executed upon initial employment, I acknowledge that I was informed in a written job offer at least two (2) weeks before the commencement of employment that a non-competition agreement was required as a condition of employment. If the Agreement is executed upon a "subsequent bona fide advancement," I knowingly and voluntarily waive any argument that my new role does not constitute a "subsequent bona fide advancement."<br>|

---

x

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Within 30 days after the date of the termination of the Employment Period, the Company Group will provide me a signed, written copy of the Agreement.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Notwithstanding the foregoing, even if I am not a Qualified Employee meeting the requirements under ORS § 653.295(1)(b) and (e), the Company may, at its sole discretion, elect to enforce the non-competition restrictions in <u>Section 6(a)</u> of the Agreement following the termination of the Employment Period, by paying me, for up to the maximum Restricted Period, compensation equal to the greater of (x) fifty percent (50%) of my annual gross base salary and commissions at the time of my separation; or (y) fifty percent (50%) of the minimum annual compensation required under ORS § 653.295. If the Company elects to enforce <u>Section 6(a)</u> of the Agreement following the termination of the Employment Period by agreeing to make the payments referenced in this paragraph, I will be notified in writing. I understand and acknowledge that the Company's election not to pay the compensation set out in this paragraph affects the applicability of <u>Section 6(a)</u> of the Agreement only in the event I am not a Qualified Employee and that the election of non-payment does not relieve a non-Qualified Employee from any other post-employment restriction in the Agreement.<br>|
| **Rhode Island** | If I am employed in Rhode Island, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period if I am (i) classified as "non-exempt" under the Fair Labor Standards Act, (ii) an undergraduate or graduate student participating in an internship or otherwise entering into a short-term employment relationship with the Company Group while enrolled at an educational institution, regardless of whether the position is paid, (iii) of age 18 or younger, or (iv) a "low-wage" employee under R.I. Gen. Laws § 28-59-2, *i.e.*, if my average annual earnings (as determined pursuant to R.I. Gen. Laws § 28-59-2(2)) are not more than 250% of the federal poverty level for individuals as established by the United States Department of Health and Human Services federal poverty guidelines. |
| **Virginia** | If I am employed in Virginia: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledges and understand that if, while employed or otherwise engaged with the Company Group, I am deemed a "low-wage employee" under Code of Virginia § 40.1-28.7:8, *i.e.*, my average weekly earnings, as determined pursuant to Code of Virginia § 40.1-28.7:8, are less than the average weekly wage of the Commonwealth of Virginia as determined pursuant to Code of Virginia § 65.2-500(B) (including if I was engaged as an independent contractor and was compensated for such services by the Company Group at an hourly rate that is less than the median hourly wage for the Commonwealth of Virginia for all occupations as reported, for the preceding year, by the Bureau of Labor Statistics of the U.S. Department of Labor), (i) <u>Section 6(a)</u> of the Agreement will not apply to me following a termination of the Employment Period, and (ii) <u>Section 6(a)</u> or <u>Section 6(b)</u> of the Agreement will not restrict me from providing a service to a customer or client of the Company Group following a termination of the Employment Period as long as I do not initiate contact with or solicit the customer or client.<br>|

---

xi

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • The above mentioned exceptions will not apply to me if my earnings are derived, in whole or in predominant part, from sales commissions, incentives, or bonuses paid to me by the Company Group.<br>|
| **Washington** | If I am employed in Washington: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • The Agreement is not intended to and does not purport to infringe on my rights under Washington's Silenced No More Act or from disclosing or discussing (i) illegal acts of discrimination, harassment, retaliation, wage and hour violations, sexual assault, or other conduct recognized as being against a clear mandate of public policy occurring in the workplace, at work-related events, between employees, or between an employer and an employee, whether on or off the employment premises, or (ii) information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that I have reason to believe is unlawful.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that, following the termination of the Employment Period, <u>Section 6(a)</u> of the Agreement will only apply to me if the amount of my annualized earnings from the Company Group (calculated as of the earlier of the date enforcement of the noncompetition covenant is sought or the date of termination of the Employment Period) exceeds the compensation requirement described in Revised Code of Washington § 49.62.020 (which is $120,559.99 in 2024), as adjusted annually for inflation in accordance with the Revised Code of Washington §49.62.040.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If the Agreement is executed upon initial employment, I acknowledge and agree that (i) I have been provided a copy of the Agreement (or the terms of the non-compete covenant contained in the Agreement in writing) prior to my acceptance of the offer of employment, and (ii) if the non-compete covenant becomes enforceable only at a later date due to changes in my compensation, I have been specifically advised by the employer (and am hereby being advised) that <u>Section 6(a)</u> of the Agreement may become enforceable and apply to me at a later date due to changes in my compensation in the future, if applicable.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If the Agreement is entered into after I commenced employment for the Company Group, I acknowledge and agree that the benefits granted to me concurrently with the Agreement constitute fair and reasonable consideration for the Agreement independent from the continuation of employment.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Further, I acknowledge and understand that, in the event that my employment is terminated by the Company Group as the result of a layoff, <u>Section 6(a)</u> of the Agreement shall not apply to me following such termination unless I am provided with compensation equivalent to my base salary at the time of termination for the period of enforcement *minus* compensation earned through subsequent employment during the period of<br>|

---

xii

------

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; enforcement (such payment, a "***WA Noncompete Payment***"). I agree that, upon a request from the Company, I will provide the Company with proof of my new wage rate or salary through subsequent employment for the purposes of calculating the WA Noncompete Payment, which may be adjusted from payment to payment based on the information I provide to the Company. Notwithstanding anything foregoing, I acknowledge and agree that nothing herein shall be construed to confer upon me any right to WA Noncompete Payments or severance payments and that the Company may, in its sole discretion, elect to not enforce the provisions of <u>Section 6(a)</u> of the Agreement following the termination of my employment due to a layoff. For avoidance of doubt, unless my annualized earnings exceed the annual earnings threshold described above, the restrictions in <u>Section 6(a)</u> shall not apply to me following the Employment Period. |
| &nbsp;&nbsp;&nbsp;&nbsp; • If, at the time of termination of the Employment Period, I am employed in Washington, notwithstanding any other provision to the contrary in the Agreement (including Section 11 of the Agreement), nothing in the Agreement shall require me to adjudicate the enforceability of a noncompetition covenant outside of the State of Washington and the laws of the State of Washington shall govern the enforceability of the noncompetition covenant in the Agreement.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that, during the Employment Period, restrictions under <u>Section 6(a)</u> of the Agreement are not intended to restrict, restrain, or prohibit an employee earning less than twice the applicable state minimum hourly wage from having an additional job, supplementing their income by working for another employer, working as an independent contractor, or being self-employed, as long as (i) such additional services to be offered by the employee do not raise issues of safety for the employee, coworkers, or the public, or interfere with the reasonable and normal scheduling expectations of the employer and (ii) such additional services to be offered by the employee shall not alter the employee's obligations as an employee of the Company Group under existing law, including the common law duty of loyalty and laws preventing conflicts of interest and any Company Group's policies addressing such obligations.<br>|

---

xiii

------

**Exhibit B** 

**<u>RELEASE OF CLAIMS</u>**

As used in this Release of Claims (this "***Release***"), the term "claims" will include all claims, covenants, warranties, promises, undertakings, actions, suits, causes of action, obligations, debts, accounts, attorneys' fees, judgments, losses, and liabilities, of whatsoever kind or nature, in law, equity or otherwise.

For and in consideration of the Severance Benefits (as defined in my Amended and Restated Employment Agreement, dated September ___, 2024, with Safepoint Holdings, Inc. (such corporation, the "***Company***" and such agreement, my "***Employment Agreement***")), and other good and valuable consideration, I, Steven Hoffman, for and on behalf of myself and my heirs, administrators, executors and assigns, effective as of the date on which this release becomes effective pursuant to its terms, do fully and forever release, remise and discharge each member of the Company Group (including any co-employer of any member of the Company Group) and each of their successors and assigns, together with their respective current and former officers, directors, partners, members, shareholders (including any management company of a member or shareholder), employees and agents (collectively, and with the Company, the "***Company Parties"***) ****from any and all claims whatsoever up to the date I execute this Release which I had, may have had, or now have against the Company Parties, whether known or unknown, for or by reason of any matter, cause or thing whatsoever, including any claim arising out of or attributable to my employment or the termination of my employment with the Company or any member of the Company Group, whether for tort, breach of express or implied contract, intentional infliction of emotional distress, wrongful termination, unjust dismissal, violation of public policy, defamation, libel or slander, or under any federal, state, or local law dealing with discrimination, harassment or retaliation, and any other purported restriction on an employer's right to terminate the employment of employees. The release of claims in this Release includes, but is not limited to, all claims arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, as amended ("***ADEA***"), the Americans with Disabilities Act of 1990, the Civil Rights Act of 1991, the Family and Medical Leave Act of 1993, the Equal Pay Act of 1963, the Worker Adjustment and Retraining Notification Act of 1988 and the Employee Retirement Income Security Act of 1974 (excluding claims for accrued, vested benefits under any retirement or other employee benefit plan of the Company Parties (other than any severance or similar plan or policy)), each as may be amended from time to time, and all other federal, state, and local laws, the common law or constitution of any jurisdiction. I intend the release contained herein to be a general release of any and all claims to the fullest extent permissible by law and for the provisions regarding the release of claims against the Company Parties to be construed as broadly as possible, and hereby incorporate in this release similar federal, state or other laws, all of which I also hereby expressly waive.

I understand and agree that claims or facts in addition to or different from those which are now known or believed by me to exist may hereafter be discovered, but it is my intention to fully and forever release, remise and discharge all claims which I had, may have had, or now have against the Company Parties, whether known or unknown, suspected or unsuspected, asserted or unasserted, contingent or noncontingent, without regard to the subsequent discovery or existence of such additional or different facts. Without limiting the foregoing, by signing this Release, I expressly waive and release any provision of law that purports to limit the scope of a general release.

------

I acknowledge and agree that as of the date I execute this Release, I have no knowledge of any facts or circumstances that give rise or could give rise to any claims under any of the laws listed in the preceding paragraphs.

Notwithstanding any provision of this Release to the contrary, by executing this Release, I am not releasing any claims relating to: (i) my rights under Section 8 of my Employment Agreement, (ii) my right to accrued, vested benefits due to terminated employees under any employee benefit plan of the Company or any other member of the Company Group in which I participated (excluding any severance or similar plan or policy), in accordance with the terms thereof (including my right to elect COBRA continuation coverage); (iii) any claims that cannot be waived by law or that arise after the date you execute this Agreement; or (iv) my right to indemnification, advancement and reimbursement of legal fees and expenses, and directors and officers liability insurance, as provided by, and in accordance with the terms of, applicable law, the Company's by-laws or otherwise.

**Notwithstanding any provision of this Release to the contrary, nothing herein or in any Company policy or agreement prevents me, without notifying the Company, from (i) speaking with law enforcement, my attorney, the U.S. Equal Employment Opportunity Commission, any state or local division of human rights, or fair employment agency; (ii) filing a charge or complaint with, participating in an investigation or proceeding conducted by, or reporting possible violations of law or regulation to any government agency; (iii) participating in a whistleblower program administered by the U.S. Securities and Exchange Commission or any other government agency; (iv) truthfully testifying in a legal proceeding or responding to or complying with a subpoena, court order, or other legal process; (v) filing or disclosing any facts necessary to receive unemployment insurance, Medicaid, or other public benefits to which I may be entitled; or (vi) exercising any rights I may have to engage in protected concerted activity under any applicable labor laws, including the National Labor Relations Act (for information regarding employee rights under the National Labor Relations Act, all of which are preserved under this Release, see <u>https://www.nlrb.gov/about-nlrb/rights-we-protect/your-rights/employee-rights)</u>; *provided***,***however***, **in each case, I agree to forgo any monetary benefit from the filing of a charge or complaint with a government agency except pursuant to a whistleblower program or where my right to receive such a monetary benefit is otherwise not waivable by law.** 

I acknowledge and agree that as of the date I execute this Release, I have reported all accidents, injuries or illnesses relating to or arising from my employment with the Company or the Company Group and that I have not suffered any on-the-job injury or illness for which I have not yet filed a claim.

By signing below, I represent and warrant to the Company that (i) prior to the date I execute this Release, I have provided the Company with written disclosure of any unethical or illegal behavior and any material violations of the Company's code of ethics or other material policy, in each case, that I observed, suspected or became aware of during the course of my employment or, if no such written disclosure was provided, that I have not observed, suspected or become aware of any such behavior or violations and (ii) I have complied with all laws and Company policies in respect of my employment with the Company.

------

I expressly acknowledge and agree that I:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Am able to read the language, and understand the meaning and effect, of this Release;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Have no physical or mental impairment of any kind that has interfered with my ability to read and understand the
meaning of this Release or its terms, and that I am not acting under the influence of any medication, drug, or chemical of any type in entering into this Release;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Am specifically agreeing to the terms of the release contained in this Release because the Company has agreed to
pay me the Severance Benefits in consideration for my agreement to accept it in full settlement of all possible claims I might have or ever had against the Company Parties, and because of my execution of this Release;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Acknowledge that, but for my execution of this Release, I would not be entitled to the Severance Benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Had or could have had [twenty-one (21)][forty-five (45)]<sup>1</sup> calendar days from the date of my termination of employment (the "  ***Release Expiration Date")*** to review and consider this Release, and that if I execute this
Release prior to the Release Expiration Date, I have voluntarily and knowingly waived the remainder of the review period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Understand that, by entering into this Release, I do not waive rights or claims under ADEA that may arise after
the date I execute this Release;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Have not relied upon any representation or statement not set forth in this Release or my Employment Agreement
made by the Company Group or any of its representatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Am hereby advised to consult with my attorney regarding the terms and effect of this Release; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Have signed this Release knowingly and voluntarily.

I represent and warrant that I have not previously filed, and to the maximum extent permitted by law, I agree that I will not file, a complaint, charge or lawsuit against any of the Company Parties regarding any of the claims released herein. If, notwithstanding this representation and warranty, I have filed or file such a complaint, charge or lawsuit, I agree that I shall cause such complaint, charge or lawsuit to be dismissed with prejudice and shall pay any and all costs required in obtaining dismissal of such complaint, charge or lawsuit, including without limitation the attorneys' fees of any of the Company Parties against whom I have filed such a complaint, charge or lawsuit.

<sup>1</sup> To be selected based on whether applicable termination was "in connection with an exit incentive or other employment termination program" (as such phrase is defined in the Age Discrimination in Employment Act of 1967).

------

I hereby agree to waive any and all claims to re-employment with the Company or any of its direct or indirect parent(s) or subsidiaries and affirmatively agree not to seek further employment with the Company or any of its direct or indirect parent(s) or subsidiaries. I acknowledge that if I re-apply for or seek employment with the Company or any of its direct or indirect parent(s) or subsidiaries, the refusal to hire me based on this provision will provide a complete defense to any claims arising from my attempt to apply for employment.

Notwithstanding anything contained herein to the contrary, this Release will not become effective or enforceable for a period of seven (7) calendar days following the date of my execution of this Release (the "***Revocation Period***"), during which time I may revoke my acceptance of this

Release by notifying the Company [and the Board of Directors of the Company], in writing, delivered to [CONTACT] (the "***Company Representative***"), [TITLE], [ADDRESS], by email ([EMAIL ADDRESS]), or by a recognized national overnight courier service [or by other electronic copies (complying with the U.S. federal ESIGN Act of 2000 (e.*g.*, DocuSign)). To be effective, such revocation must be received by the Company Representative no later than 11:59 p.m. Eastern Time on the seventh (7th) calendar day following the execution of this Release. Provided that the Release is executed prior to the Release Expiration Date and I do not revoke it during the Revocation Period, the date on which this Release is executed and delivered to the Company Representative shall be its effective date. In the event that I fail to execute and deliver this Release prior to the Release Expiration Date or, if I revoke this Release during the Revocation Period, this Release will be null and void and of no effect, and neither the me nor the Company nor any of the Company Parties will have any obligations to pay me the Severance Benefits.

The provisions of this Release shall be binding upon my heirs, executors, administrators, legal personal representatives and assigns. If any provision of this Release shall be held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect. The illegality or unenforceability of such provision, however, shall have no effect upon and shall not impair the enforceability of any other provision of this Release. I acknowledge and agree that each of the Company Parties shall be a third-party beneficiary to the releases set forth in this Release, with full rights to enforce this Release and the matters documented herein.

EXCEPT WHERE PREEMPTED BY FEDERAL LAW, THE VALIDITY, INTERPRETATION, CONSTRUCTION, AND PERFORMANCE OF THIS RELEASE IS GOVERNED BY AND IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF FLORIDA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS RULES. ANY DISPUTE OR CLAIM ARISING OUT OF OR RELATING TO THIS RELEASE OR CLAIM OF BREACH HEREOF SHALL BE BROUGHT EXCLUSIVELY IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA, TO THE EXTENT FEDERAL JURISDICTION EXISTS, AND IN ANY COURT SITTING IN FLORIDA, BUT ONLY IN THE EVENT FEDERAL JURISDICTION DOES NOT EXIST, AND ANY APPLICABLE APPELLATE COURTS. BY EXECUTION OF THIS RELEASE, I CONSENT TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS, AND WAIVE ANY RIGHT TO CHALLENGE JURISDICTION OR VENUE IN SUCH COURT WITH REGARD TO ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS RELEASE. FURTHER, I HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN CONNECTION WITH ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS RELEASE.

------

Capitalized terms used, but not defined herein, shall have the meanings ascribed to such terms in my Employment Agreement.

\* \* \*

I, Steven Hoffman, have executed this Release of Claims on the date set forth below:

---

| | |
|:---|:---|
| /s/ Steven Hoffman | /s/ Steven Hoffman |
| Steven Hoffman | Steven Hoffman |
| Date: | [To Be Executed Following Termination of Employment] |

---

## Exhibit 10.16

**Exhibit 10.16** 

**AMENDED AND RESTATED EMPLOYMENT AGREEMENT** 

This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "***Agreement***") is made and entered into as of this 3rd day of September, 2024, by and between Safepoint Holdings, Inc., a Florida corporation (the "***Company***"), and Gustavo Fernandez ("***Executive***").

W I T N E S S E T H :

— — — — — — —

WHEREAS, Executive is currently employed by the Company as its Chief Underwriting Officer; and

WHEREAS, Executive is a party to an employment agreement with the Company, dated April 13, 2016 (the "***Prior Agreement***"); and

WHEREAS, the Company desires to employ Executive and to enter into this Agreement embodying the terms of such employment, and Executive desires to enter into this Agreement and to accept such employment, subject to the terms and provisions of this Agreement.

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are mutually acknowledged, the Company and Executive hereby agree as follows:

**Section 1. Definitions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "***Accrued Obligations***" shall mean (i) all accrued but unpaid Base Salary through the date of termination of Executive's employment, (ii) any unpaid or unreimbursed expenses incurred in accordance with Section 7 hereof, and (iii) any benefits provided under the Company's employee benefit plans upon a termination of employment (excluding any employee benefit plan providing for severance or similar benefits), in accordance with the terms contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "***Agreement***" shall have the meaning set forth in the preamble hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "***Annual Bonus***" shall have the meaning set forth in Section 4(b) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "***Base Salary***" shall mean the salary provided for in Section 4(a) hereof or any increased salary granted to Executive pursuant to Section 4(a) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "***Board***" shall mean the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "***Cause***" shall mean (i) Executive's act(s) of gross negligence or willful misconduct in the course of Executive's employment hereunder, (ii) willful failure or refusal by Executive to perform in any material respect Executive's duties or responsibilities, (iii) misappropriation (or attempted misappropriation) by Executive of any assets or business opportunities of the Company or any other member of the Company Group, (iv) embezzlement or fraud committed (or attempted) by Executive, at Executive's direction, or with Executive's prior actual knowledge, (v) Executive's conviction of or pleading "guilty" or " no contest" to, (x) a felony or (y) any other

------

criminal charge that has, or could be reasonably expected to have, an adverse impact on the performance of Executive's duties to the Company or any other member of the Company Group or otherwise result in material injury to the reputation or business of the Company or any other member of the Company Group, (vi) any material violation by Executive of the policies of the Company, including but not limited to those relating to sexual harassment or business conduct, and those otherwise set forth in the manuals or statements of policy of the Company, or (vii) Executive's material breach of this Agreement or breach of the Restrictive Covenant Agreement. If, within thirty (30) days subsequent to Executive's termination for any reason other than by the Company for Cause, the Company determines that Executive's employment could have been terminated for Cause, Executive's employment will be deemed to have been terminated for Cause for all purposes, and Executive will be required to repay or return to the Company all amounts and benefits received pursuant to this Agreement or otherwise on account of such termination that would not have been payable or provided to Executive had such termination been by the Company for Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "***COBRA***" shall mean Part 6 of Title I of the Employee Retirement Income Security Act of 1974, as amended, and Section 4980B of the Code, and the rules and regulations promulgated under either of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "***Code***" shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "***Company***" shall have the meaning set forth in the preamble hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "***Company Group***" shall mean the Company together with any direct or indirect subsidiaries of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "***Compensation Committee***" shall mean the Board or the committee of the Board designated to make compensation decisions relating to senior executive officers of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "***Delay Period***" shall have the meaning set forth in Section 14(a) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "***Disability***" shall mean any physical or mental disability or infirmity of Executive that prevents the performance of Executive's duties for a period of (i) ninety (90) consecutive days or (ii) one hundred twenty (120) non-consecutive days during any twelve (12) month period. Any question as to the existence, extent, or potentiality of Executive's Disability upon which Executive and the Company cannot agree shall be determined by a qualified, independent physician selected by the Company and approved by Executive (which approval shall not be unreasonably withheld). The determination of any such physician shall be final and conclusive for all purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "***Executive***" shall have the meaning set forth in the preamble hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "***Good Reason***" shall mean, without Executive's consent, (i) a material diminution in Executive's title, duties, or responsibilities as set forth in Section 3 hereof, (ii) a material reduction in Base Salary set forth in Section 4(a) hereof or Annual Bonus opportunity set forth in Section 4(b) hereof (other than pursuant to an across-the-board reduction applicable to all

------

similarly situated executives), (iii) the relocation of Executive's principal place of employment (as provided in Section 3(c) hereof) more than fifty (50) miles from its current location, or (iv) any other material breach of a provision of this Agreement by the Company (other than a provision that is covered by clause (i), (ii), or (iii) above). Executive acknowledges and agrees that Executive's exclusive remedy in the event of any breach of this Agreement shall be to assert Good Reason pursuant to the terms and conditions of Section 8(e) hereof. Notwithstanding the foregoing, during the Term, in the event that the Company reasonably believes that Executive may have engaged in conduct that could constitute Cause hereunder, the Company may, in its sole and absolute discretion, suspend Executive from performing Executive's duties hereunder, and in no event shall any such suspension constitute an event pursuant to which Executive may terminate employment with Good Reason or otherwise constitute a breach hereunder; *provided,* that no such suspension shall alter the Company's obligations under this Agreement during such period of suspension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "***Person***" shall mean any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust (charitable or non-charitable), unincorporated organization, or other form of business entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "***Prior Agreement"*** shall have the meaning set forth in the recitals hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "***Release of Claims"*** shall mean the Release of Claims in substantially the same form attached hereto as Exhibit B (as the same may be revised from time to time by the Company upon the advice of counsel).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "***Restrictive Covenant Agreement"*** shall mean the Restrictive Covenant Agreement attached hereto as <u>Exhibit A.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "***Severance***  ***Benefits"*** shall have the meaning set forth in Section 8(h) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "***Severance Term"*** shall mean the twelve (12) month period following Executive's termination by the Company without Cause (other than by reason of death or Disability) or by Executive for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "***Term***" shall mean the period specified in Section 2 hereof.

**Section 2. Acceptance and Term.** 

The Company agrees to employ Executive, and Executive agrees to serve the Company, on the terms and conditions set forth herein. The Term shall commence on the date hereof and shall continue until terminated as provided in Section 8 hereof (the "***Term***").

**Section 3. Position, Duties, and Responsibilities; Place of Performance.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Position, Duties, and Responsibilities</u>. During the Term, Executive shall be employed and serve as the Chief Underwriting Officer of the Company (together with such other position or positions consistent with Executive's title as the Company shall specify from time to time) and shall have such duties and responsibilities commensurate with such title. Executive also agrees to serve as an officer and/or director of any other member of the Company Group, in each case without additional compensation.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Performance</u>. Executive shall devote Executive's full business time, attention, skill, and best efforts to the performance of Executive's duties under this Agreement and shall not engage in any other business or occupation during the Term, including, without limitation, any activity that (x) conflicts with the interests of the Company or any other member of the Company Group, (y) interferes with the proper and efficient performance of Executive's duties for the Company, or (z) interferes with Executive's exercise of judgment in the Company's best interests. Notwithstanding the foregoing, nothing herein shall preclude Executive from (i) serving, with the prior written consent of the Board, as a member of the boards of directors or advisory boards (or their equivalents in the case of a non-corporate entity) of non-competing businesses and charitable organizations, (ii) engaging in charitable activities and community affairs, and (iii) managing Executive's personal investments and affairs; *provided, however,* that the activities set out in clauses (i), (ii), and (iii) shall be limited by Executive so as not to materially interfere, individually or in the aggregate, with the performance of Executive's duties and responsibilities hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Principal Place of Employment</u>. Executive's principal place of employment shall be at the Company's office in Tampa, Florida, although Executive understands and agrees that Executive may be required to travel from time to time for business reasons.

**Section 4. Compensation.**

During the Term, Executive shall be entitled to the following compensation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Salary</u>. Executive shall be paid an annualized Base Salary, payable in accordance with the regular payroll practices of the Company, of not less than $255,000, with increases, if any, as may be approved in writing by the Compensation Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Bonus</u>. Executive shall be eligible for an annual incentive bonus award determined by the Compensation Committee in respect of each fiscal year during the Term (the "***Annual Bonus")***. The target Annual Bonus for each fiscal year shall be 75% of Base Salary, with the actual Annual Bonus payable being based upon the level of achievement of annual Company and individual performance objectives for such fiscal year, as determined by the Compensation Committee and communicated to Executive. The Annual Bonus shall be paid to Executive at the same time as annual bonuses are generally payable to other senior executives of the Company subject to Executive's continuous employment through the payment date except as otherwise provided for in this Agreement.

**Section 5. Employee Benefits.**

During the Term, Executive shall be entitled to participate in health, insurance, retirement, and other benefits provided generally to similarly situated employees of the Company. Executive shall also be entitled to the same number of holidays, vacation days, and sick days, as well as any other benefits, in each case as are generally allowed to similarly situated employees of the Company in accordance with the Company policy as in effect from time to time. Nothing contained herein shall be construed to limit the Company's ability to amend, suspend, or terminate any employee benefit plan or policy at any time without providing Executive notice, and the right to do so is expressly reserved.

------

**Section 6. Key-Man Insurance.**

At any time during the Term, the Company shall have the right to insure the life of Executive for the sole benefit of the Company, in such amounts, and with such terms, as it may determine. All premiums payable thereon shall be the obligation of the Company. Executive shall have no interest in any such policy, but agrees to cooperate with the Company in procuring such insurance by submitting to physical examinations, supplying all information required by the insurance company, and executing all necessary documents, provided that no financial obligation is imposed on Executive by any such documents.

**Section 7. Reimbursement of Business Expenses.**

During the Term, the Company shall pay (or promptly reimburse Executive) for documented, out-of-pocket expenses reasonably incurred by Executive in the course of performing Executive's duties and responsibilities hereunder, which are consistent with the Company's policies in effect from time to time with respect to business expenses, subject to the Company's requirements with respect to reporting of such expenses.

**Section 8. Termination of Employment.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. The Term shall terminate as provided in Section 2 hereof upon the earliest to occur of (i) Executive's death, (ii) a termination by reason of a Disability, (iii) a termination by the Company with or without Cause, and (iv) a termination by Executive with or without Good Reason. Upon any termination of Executive's employment for any reason, except as may otherwise be requested by the Company in writing and agreed upon in writing by Executive, Executive shall be deemed to have resigned from any and all directorships, committee memberships, and any other positions Executive holds with the Company or any other member of the Company Group and hereby agrees to execute any documents that the Company (or any member of the Company Group) determines necessary to effectuate such resignations. Notwithstanding anything herein to the contrary, the payment (or commencement of a series of payments) hereunder of any "nonqualified deferred compensation" (within the meaning of Section 409A of the Code) upon a termination of employment shall be delayed until such time as Executive has also undergone a "separation from service" as defined in Treas. Reg. 1.409A-1(h), at which time such nonqualified deferred compensation (calculated as of the date of Executive's termination of employment hereunder) shall be paid (or commence to be paid) to Executive on the schedule set forth in this Section 8 as if Executive had undergone such termination of employment (under the same circumstances) on the date of Executive's ultimate "separation from service."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination Due to Death or Disability</u>. Executive's employment shall terminate automatically upon Executive's death. The Company may terminate Executive's employment immediately upon the occurrence of a Disability, such termination to be effective upon Executive's receipt of written notice of such termination. Upon Executive's death or in the event that Executive's employment is terminated due to Executive's Disability, Executive or Executive's estate or Executive's beneficiaries, as the case may be, shall be entitled to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Accrued Obligations; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any unpaid Annual Bonus in respect of any completed fiscal year that has ended prior to the date of such termination, which amount shall be paid at such time annual bonuses are paid to other senior executives of the Company, but in no event later than the date that is two and one-half (2<sup>1</sup>⁄<sub>2</sub>) months following the last day of the fiscal year in which such termination occurred.

Following Executive's death or a termination of Executive's employment by reason of a Disability, except as set forth in this Section 8(b), Executive shall have no further rights to any compensation or any other benefits under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination by the Company with Cause.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company may terminate Executive's employment at any time with Cause, effective upon Executive's receipt of written notice of such termination; *provided, however,* that with respect to any Cause termination relying on clause (ii) or (vi) of the definition of Cause set forth in Section 1(f) hereof, to the extent that such act or acts or failure or failures to act are curable, Executive shall be given not less than ten (10) days' written notice by the Board of the Company's intention to terminate him with Cause, such notice to state in detail the particular act or acts or failure or failures to act that constitute the grounds on which the proposed termination with Cause is based, and such termination shall be effective at the expiration of such ten (10) day notice period unless Executive has fully cured such act or acts or failure or failures to act that give rise to Cause during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event that the Company terminates Executive's employment with Cause, Executive shall be entitled only to the Accrued Obligations. Following such termination of Executive's employment with Cause, except as set forth in this Section 8(c)(ii), Executive shall have no further rights to any compensation or any other benefits under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination by the Company without Cause</u>. The Company may terminate Executive's employment at any time without Cause, effective upon Executive's receipt of written notice of such termination. In the event that Executive's employment is terminated by the Company without Cause (other than due to death or Disability), Executive shall be entitled to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Accrued Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any unpaid Annual Bonus in respect of any completed fiscal year that has ended prior to the date of such termination, which amount shall be paid at such time annual bonuses are paid to other senior executives of the Company, but in no event later than the date that is two and one-half (2<sup>1</sup>⁄<sub>2</sub>) months following the last day of the fiscal year in which such termination occurred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Continued payment of Base Salary during the Severance Term, payable in accordance with the Company's regular payroll practices; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the extent permitted by applicable law without any penalty to Executive or any member of the Company Group and subject to Executive's election of COBRA continuation coverage under the Company's group health plan, on the first regularly scheduled payroll date of each month of the Severance Term, the Company will pay directly to or on behalf of Executive an amount equal to the "applicable percentage" of the monthly COBRA premium cost; *provided,* that the payments pursuant to this clause (iv) shall cease earlier than the expiration of the Severance Term in the event that Executive becomes eligible to receive any health benefits, including through a spouse's employer, during the Severance Term. For purposes hereof, the "***applicable percentage"*** shall be the percentage of Executive's health care premium costs covered by the Company as of the date of termination. Amounts paid by the Company directly to or on behalf of Executive pursuant to this clause (iv) shall be imputed to the Executive as additional taxable income to the extent required to avoid adverse consequences to Executive or the Company under either Section 105(h) of the Code or the Patient Protection and Affordable Care Act of 2010; provided that, if such imputation does not prevent the imposition of an excise tax under, or the violation of, the Patient Protection and Affordable Care Act (as amended by the Health Care and Education Reconciliation Act of 2010 and as amended from time to time), including, without limitation, Section 4980D of the Code, the Company shall no longer provide such medical and dental benefits to Executive.

Notwithstanding the foregoing, the payments and benefits described in clauses (ii), (iii), and (iv) above shall immediately terminate, and the Company shall have no further obligations to Executive with respect thereto, in the event that Executive breaches any provision of the Restrictive Covenant Agreement. Following such termination of Executive's employment by the Company without Cause, except as set forth in this Section 8(d), Executive shall have no further rights to any compensation or any other benefits under this Agreement. For the avoidance of doubt, Executive's sole and exclusive remedy upon a termination of employment by the Company without Cause shall be receipt of the Severance Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Termination by Executive with Good Reason. Executive may terminate</u> Executive's employment with Good Reason by providing the Company ten (10) days' written notice setting forth in reasonable specificity the event that constitutes Good Reason, which written notice, to be effective, must be provided to the Company within sixty (60) days of the occurrence of such event. During such ten (10) day notice period, the Company shall have a cure right (if curable), and if not cured within such period, Executive's termination will be effective upon the expiration of such cure period, and Executive shall be entitled to the same payments and benefits as provided in Section 8(d) hereof for a termination by the Company without Cause, subject to the same conditions on payment and benefits as described in Section 8(d) hereof. Following such termination of Executive's employment by Executive with Good Reason, except as set forth in this Section 8(e), Executive shall have no further rights to any compensation or any other benefits under this Agreement. For the avoidance of doubt, Executive's sole and exclusive remedy upon a termination of employment with Good Reason shall be receipt of the Severance Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Termination by Executive without Good Reason</u>. Executive may terminate Executive's employment without Good Reason by providing the Company thirty (30) days' written notice of such termination. In the event of a termination of employment by Executive under this Section 8(f), Executive shall be entitled only to the Accrued Obligations. In the event of termination of Executive's employment under this Section 8(f), the Company may, in its sole

------

and absolute discretion, by written notice accelerate such date of termination without changing the characterization of such termination as a termination by Executive without Good Reason. Following such termination of Executive's employment by Executive without Good Reason, except as set forth in this Section 8(f), Executive shall have no further rights to any compensation or any other benefits under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Employment following Expiration of the Term</u>. If Executive's employment with the Company continues beyond the expiration of the Term, Executive shall be considered an "at-will" employee and shall not be entitled to any payments or benefits under this Agreement upon any subsequent termination of employment for any reason whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Release</u>. Notwithstanding any provision herein to the contrary, the payment of any amount or provision of any benefit pursuant to subsection (b), (d), or (e) of this Section 8 (other than the Accrued Obligations) (collectively, the "***Severance Benefits")*** shall be conditioned upon Executive's execution, delivery to the Company, and non-revocation of the Release of Claims (and the expiration of any revocation period contained in such Release of Claims) within sixty (60) days following the date of Executive's termination of employment hereunder. If Executive fails to execute the Release of Claims in such a timely manner so as to permit any revocation period to expire prior to the end of such sixty (60) day period, or timely revokes Executive's acceptance of such release following its execution, Executive shall not be entitled to any of the Severance Benefits. Further, (i) to the extent that any of the Severance Benefits constitutes "nonqualified deferred compensation" for purposes of Section 409A of the Code, any payment of any amount or provision of any benefit otherwise scheduled to occur prior to the sixtieth (60<sup>th</sup>) day following the date of Executive's termination of employment hereunder, but for the condition on executing the Release of Claims as set forth herein, shall not be made until the first regularly scheduled payroll date following such sixtieth (60<sup>th</sup>) day and (ii) to the extent that any of the Severance Benefits do not constitute "nonqualified deferred compensation" for purposes of Section 409A of the Code, any payment of any amount or provision of any benefit otherwise scheduled to occur following the date of Executive's termination of employment hereunder, but for the condition on executing the Release of Claims as set forth herein, shall not be made until the first regularly scheduled payroll date following the date the Release of Claims is timely executed and the applicable revocation period has ended, after which, in each case, any remaining Severance Benefits shall thereafter be provided to Executive according to the applicable schedule set forth herein. For the avoidance of doubt, in the event of a termination due to Executive's death or Disability, Executive's obligations herein to execute and not revoke the Release of Claims may be satisfied on Executive's behalf by Executive's estate or a person having legal power of attorney over Executive's affairs.

**Section 9. Restrictive Covenant Agreement.**

As a condition of Executive's continued employment with the Company, Executive shall have executed and delivered to the Company the Restrictive Covenant Agreement. The parties hereto acknowledge and agree that this Agreement and the Restrictive Covenant Agreement shall be considered separate contracts, and the Restrictive Covenant Agreement will survive the termination of this Agreement for any reason.

------

**Section 10. Representations and Warranties of Executive.**

Executive represents and warrants to the Company that—

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Executive is entering into this Agreement voluntarily and that Executive's employment hereunder and compliance with the terms and conditions hereof will not conflict with or result in the breach by Executive of any agreement to which Executive is a party or by which Executive may be bound;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive has not (i) violated, and in connection with Executive's employment with the Company will not violate, any non-solicitation, non-competition, or other similar covenant or agreement of a prior employer by which Executive is or may be bound, or (ii) engaged in any conduct or made any representations that could result in a court of competent jurisdiction granting a temporary or permanent injunction or restraining order against Executive commencing, or continuing, his employment with the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Executive has not retained, and has returned, all confidential or proprietary information Executive may have obtained in connection with employment with any prior employer and, in connection with Executive's employment with the Company (and service to the Company Group), Executive will not use any confidential or proprietary information Executive may have obtained in connection with employment with any prior employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Executive (i) is not aware of any reason why Executive's hiring by, or work for, the Company Group could cause any damage to any member of the Company Group's reputation, (ii) was not subject to any disciplinary action while employed by (or providing services to) any former employer (or other entity) that could reasonably be expected to cause any damage to any member of the Company Group's reputation, and (iii) is not aware of any on-going investigation or cause of action by any regulatory, self-regulatory or other governmental authority involving acts or omissions of Executive or any of Executive's direct reports at any former employer (or other entity); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Executive has not engaged in any illegal conduct (including, without limitation, violations of any regulatory or self-regulatory agency rules or regulations) during the course of his employment with (or provision of services to) any former employer (or other entity).

Executive acknowledges and agrees that the representations and warranties contained in this Section 10 are fundamental to the Company agreeing to continue to employ Executive, and that the Company (and/or other members of the Company Group) would reasonably be expected to suffer grave damage should any of Executive's representations or warranties herein ever prove to have been inaccurate when made.

**Section 11. Taxes.**

The Company may withhold from any payments made under this Agreement all applicable taxes, including but not limited to income, employment, and social insurance taxes, as shall be required by law. Executive acknowledges and represents that the Company has not provided any tax advice to Executive in connection with this Agreement and that Executive has been advised by the Company to seek tax advice from Executive's own tax advisors regarding this Agreement and payments that may be made to Executive pursuant to this Agreement, including specifically, the application of the provisions of Section 409A of the Code to such payments.

------

**Section 12. Set Off; Mitigation.**

The Company's obligation to pay Executive the amounts provided and to make the arrangements provided hereunder shall be subject to set-off, counterclaim, or recoupment of amounts owed by Executive to the Company or its affiliates; *provided, however,* that to the extent any amount so subject to set-off, counterclaim, or recoupment is payable in installments hereunder, such set-off, counterclaim, or recoupment shall not modify the applicable payment date of any installment, and to the extent an obligation cannot be satisfied by reduction of a single installment payment, any portion not satisfied shall remain an outstanding obligation of Executive and shall be applied to the next installment only at such time the installment is otherwise payable pursuant to the specified payment schedule. Executive shall not be required to mitigate the amount of any payment or benefit provided pursuant to this Agreement by seeking other employment or otherwise, and except as provided in Section 8(d)(iv) hereof, the amount of any payment or benefit provided for pursuant to this Agreement shall not be reduced by any compensation earned as a result of Executive's other employment or otherwise.

**Section 13. Physical or Mental Disability or Infirmity.**

Notwithstanding anything herein to the contrary, during any portion of the Term in which Executive is unable to perform the essential duties and responsibilities of Executive's position as a result of a physical or mental disability or infirmity (after taking into account any reasonable accommodations) (such period being, a "***Medical Leave of Absence")***, unless otherwise determined by the Company, Executive shall only be entitled to the payments and benefits, if any, that Executive is then-eligible to receive pursuant to the Company Group's short-term and long-term disability policies as in effect at such time (and, for the avoidance of doubt, Executive shall not accrue any other compensation or bonus, or vest in any compensation, during a Medical Leave of Absence, except as provided in such policy). Further, in no event shall any changes to Executive's duties, responsibilities, compensation or benefits, or the appointment of an interim replacement, in each case, during the pendency of a Medical Leave of Absence give rise to Good Reason pursuant to this Agreement or otherwise.

**Section 14. Additional Section 409A Provisions.**

Notwithstanding any provision in this Agreement to the contrary—

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any payment otherwise required to be made hereunder to Executive at any date as a result of the termination of Executive's employment shall be delayed for such period of time as may be necessary to meet the requirements of Section 409A(a)(2)(B)(i) of the Code (the "***Delay Period")***. On the first business day following the expiration of the Delay Period, Executive shall be paid, in a single cash lump sum, an amount equal to the aggregate amount of all payments delayed pursuant to the preceding sentence, and any remaining payments not so delayed shall continue to be paid pursuant to the payment schedule set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each payment in a series of payments hereunder shall be deemed to be a separate payment for purposes of Section 409A of the Code.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent that any right to reimbursement of expenses or payment of any benefit in-kind under this Agreement constitutes nonqualified deferred compensation (within the meaning of Section 409A of the Code), (i) any such expense reimbursement shall be made by the Company no later than the last day of the taxable year following the taxable year in which such expense was incurred by Executive, (ii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (iii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year; *provided,* that the foregoing clause shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) While the payments and benefits provided hereunder are intended to be structured in a manner to avoid the implication of any penalty taxes under Section 409A of the Code, in no event whatsoever shall the Company or any of its affiliates be liable for any additional tax, interest, or penalties that may be imposed on Executive as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code (other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A of the Code).

**Section 15. Successors and Assigns; No Third-Party Beneficiaries.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>The Company</u>. This Agreement shall inure to the benefit of the Company and its respective successors and assigns. Neither this Agreement nor any of the rights, obligations, or interests arising hereunder may be assigned by the Company to a Person (other than another member of the Company Group, or its or their respective successors) without Executive's prior written consent (which shall not be unreasonably withheld, delayed, or conditioned); *provided, however,* that in the event of a sale of all or substantially all of the assets of the Company or any direct or indirect division or subsidiary thereof to which Executive's employment primarily relates, the Company may provide that this Agreement will be assigned to, and assumed by, the acquiror of such assets, it being agreed that in such circumstances, Executive's consent will not be required in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Executive</u>. Executive's rights and obligations under this Agreement shall not be transferable by Executive by assignment or otherwise, without the prior written consent of the Company; *provided, however,* that if Executive shall die, all amounts then payable to Executive hereunder shall be paid in accordance with the terms of this Agreement to Executive's devisee, legatee, or other designee, or if there be no such designee, to Executive's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Third-Party Beneficiaries</u>. Except as otherwise set forth in Section 8(b) or Section 15(b) hereof, nothing expressed or referred to in this Agreement will be construed to give any Person other than the Company, the other members of the Company Group, and Executive any legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement.

------

**Section 16. Waiver and Amendments.**

Any waiver, alteration, amendment, or modification of any of the terms of this Agreement shall be valid only if made in writing and signed by each of the parties hereto; *provided, however,* that any such waiver, alteration, amendment, or modification must be consented to by the Company. No waiver by either of the parties hereto of their rights hereunder shall be deemed to constitute a waiver with respect to any subsequent occurrences or transactions hereunder unless such waiver specifically states that it is to be construed as a continuing waiver.

**Section 17. Severability.**

If any covenants or such other provisions of this Agreement are found to be invalid or unenforceable by a final determination of a court of competent jurisdiction, (a) the remaining terms and provisions hereof shall be unimpaired, and (b) the invalid or unenforceable term or provision hereof shall be deemed replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision hereof.

**Section 18. Governing Law and Jurisdiction.**

EXCEPT WHERE PREEMPTED BY FEDERAL LAW, THE VALIDITY, INTERPRETATION, CONSTRUCTION, AND PERFORMANCE OF THIS AGREEMENT IS GOVERNED BY AND IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF FLORIDA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS RULES. ANY DISPUTE OR CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR CLAIM OF BREACH

HEREOF SHALL BE BROUGHT EXCLUSIVELY IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA, TO THE EXTENT FEDERAL JURISDICTION EXISTS, AND IN ANY COURT SITTING IN HILLSBOROUGH COUNTY, FLORIDA, BUT ONLY IN THE EVENT FEDERAL JURISDICTION DOES NOT EXIST, AND ANY APPLICABLE APPELLATE COURTS. BY EXECUTION OF THIS AGREEMENT, THE PARTIES HERETO, AND THEIR RESPECTIVE AFFILIATES, CONSENT TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS, AND WAIVE ANY RIGHT TO CHALLENGE JURISDICTION OR VENUE IN SUCH COURT WITH REGARD TO ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT ALSO HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN CONNECTION WITH ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS AGREEMENT.

**Section 19. Notices.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Place of Delivery</u>. Every notice or other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the party for whom or which it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided; *provided,* that unless and until some other address be so designated, all notices and communications by Executive to the Company shall be mailed or delivered to the Company at its principal executive office, and all notices and communications by the Company to Executive may be given to Executive personally or may be mailed to Executive at Executive's last known address, as reflected in the Company's records.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Date of Delivery.</u> Any notice so addressed shall be deemed to be given or received (i) if delivered by hand, on the date of such delivery, (ii) if mailed by courier or by overnight mail, on the first business day following the date of such mailing, and (iii) if mailed by registered or certified mail, on the third business day after the date of such mailing.

**Section 20. Section Headings.**

The headings of the sections and subsections of this Agreement are inserted for convenience only and shall not be deemed to constitute a part thereof or affect the meaning or interpretation of this Agreement or of any term or provision hereof.

**Section 21. Entire Agreement.**

This Agreement, together with any exhibits attached hereto, constitutes the entire understanding and agreement of the parties hereto regarding the employment of Executive. This Agreement supersedes all prior negotiations, discussions, correspondence, communications, understandings, and agreements between the parties relating to the subject matter of this Agreement, including, without limitation, the Prior Agreement.

**Section 22. Survival of Operative Sections.**

Upon any termination of Executive's employment, the provisions of Section 8 through Section 23 of this Agreement (together with any related definitions set forth in Section 1 hereof) shall survive to the extent necessary to give effect to the provisions thereof.

**Section 23. Counterparts.**

This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. The execution of this Agreement may be by actual signature or by signature delivered by facsimile or by e-mail as a portable document format (.pdf) file or image file attachment.

\* \* \*

[*Signatures to appear on the following page(s).*]

------

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

---

| |
|:---|
|  **SAFEPOINT HOLDINGS, INC.** |
| /s/ David Flitman |
|  By: David Flitman |
|  Title: President and Chief Executive Officer |

---

---

| |
|:---|
|  **EXECUTIVE** |
| /s/ Gustavo Fernandez |
|  Gustavo Fernandez |

---

[*Signature Page to Employment Agreement*]

------

**Exhibit A** 

**RESTRICTIVE COVENANT AGREEMENT** 

As a condition of my becoming employed by, or continuing employment with, Safepoint Holdings, Inc., a Florida corporation (the "***Company***"), and in consideration of my employment with the Company and my receipt of the compensation now and hereafter paid to me by the Company, I agree to the following:

**Section 1. Confidential Information.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Company Group Information</u>. I acknowledge that, during the period (the "***Employment Period")*** of my employment with the Company and its direct and indirect parents, subsidiaries and affiliates (collectively, the "***Company Group")***, I will have access to information about the Company Group and that my employment with the Company Group shall bring me into close contact with confidential and proprietary information of the Company Group. In recognition of the foregoing, I agree, at all times during the Employment Period and thereafter, subject to <u>Schedule B</u> (as applicable based on the jurisdiction in which I am employed by the applicable member of the Company Group at the relevant time), to hold in confidence, and not to use, except for the benefit of the Company Group, or to disclose to any Person (as defined in Section 6 below) without prior written authorization of the Company, any Confidential Information that I obtain or create. I further agree not to make copies of such Confidential Information except as authorized by the Company. I understand that "***Confidential Information"*** means information that the Company Group has developed, acquired, created, compiled, discovered, or owned or will develop, acquire, create, compile, discover, or own, that has value in or to the business of the Company Group. I understand that Confidential Information includes, but is not limited to, (i) all personnel files of the Company Group, (ii) all general correspondence concerning the Company Group, (iii) all documents concerning and referring to the financial aspects of the Company and any affiliate, (iv) all information regarding the procedures or methods employed by the Company Group in soliciting, procuring, and handling business, including billing procedures, (v) all information developed or acquired by the Company Group relating to prospective or current business transactions and arrangements, (vi) all market analyses and/or demographic information or studies on the current and/or potential markets of interest to the Company Group, (vii) all business agreements and understandings between or among Company or any affiliate and other persons, (viii) all information provided to Company and any affiliate by any client, prospective clients or referral source, (ix) all legal documents and correspondence concerning the Company Group, (x) all non-public opinions, decisions, rulings, and audits of governmental agencies relating to the Company Group, (xi) all of the Company Group's client information including, but not limited to, client and prospective client names, addresses, contact information, financial status, volume of business, client needs and strategies and purchasing habits; (xii) all files and records concerning clients, prospective clients and referral sources of the Company Group and the contents of such files and records, (xiii) all pricing information and lists of the Company Group, (xiv) all appointment books and accounting, bookkeeping and any other financial documents, information or records of the Company Group, (xv) all software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances, and (xvi) all other information designated as "Confidential" by the Company Group. Notwithstanding the foregoing, Confidential Information shall not include (i) any of the foregoing items that have become publicly and widely known through no unauthorized disclosure by me or others who were under

------

confidentiality obligations as to the item or items involved or (ii) any information that I am required to disclose to, or by, any governmental or judicial authority; *provided, however,* that in such event I will give the Company prompt written notice thereof so that the Company Group may seek an appropriate protective order and/or waive in writing compliance with the confidentiality provisions of this Restrictive Covenant Agreement (this "***Agreement***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Former Employer Information</u>. I represent that I have not breached, and that my performance of all my duties and responsibilities as an employee of the Company Group has not breached and will not breach, any agreement to keep in confidence proprietary information, knowledge, or data acquired by me in confidence or trust prior or subsequent to the commencement of my employment with the Company Group, and I will not disclose to any member of the Company Group, or induce any member of the Company Group to use, any developments, or confidential or proprietary information or material I may have obtained in connection with employment with any prior employer in violation of a confidentiality agreement, nondisclosure agreement, or similar agreement with such prior employer. During the Employment Period, I will not improperly make use of, or disclose, any developments, or confidential or proprietary information or material of any prior employer or other third party, nor will I bring onto the premises of the Company Group or use any unpublished documents or any property belonging to any prior employer or other third party, in violation of any lawful agreements with that prior employer or third party. I will use in the performance of my duties only information that is generally known and used by persons with training and experience comparable to my own, is common knowledge in the industry or otherwise legally in the public domain, or is otherwise provided or developed by the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***<u>Third Party Information</u>***. I understand that the Company Group has received and in the future may receive from third parties confidential or proprietary information ("***Third Party Information")*** subject to a duty on the Company Group's part to maintain the confidentiality of such information and to use it only for certain limited purposes. In recognition of the foregoing, I agree, at all times during the Employment Period and thereafter, to hold in confidence and will not disclose to anyone (other than Company Group personnel who need to know such information in connection with their work for the Company Group), and not to use, except for the benefit of the Company Group, Third Party Information without the express prior written consent of an officer of the Company and otherwise treat Third Party Information as Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Whistleblower; Defend Trade Secrets Act Disclosure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In addition, I understand that nothing in this Agreement shall be construed to prohibit me from (A) filing a charge or complaint with, participating in an investigation or proceeding conducted by, or reporting possible violations of law or regulation to any federal, state or local government agency, (B) participating in a whistleblower program administered by the U.S. Securities and Exchange Commission or any other government agency, (C) truthfully testifying in a legal proceeding or responding to or complying with a subpoena, court order, or other legal process, (D) speaking with law enforcement, my attorney, the U.S. Equal Employment Opportunity Commission, any state or local division of human rights, or fair employment agency or (E) exercising any rights I may have under applicable labor laws to engage in concerted activity with other employees.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Under the U.S. Defend Trade Secrets Act of 2016, 18 U.S.C. § 1833(b) (the "***Act***"), persons who disclose trade secrets in connection with lawsuits or other proceedings under seal (including lawsuits alleging retaliation), or in confidence to a federal, state or local government official, or attorney, solely for the purpose of reporting or investigating a suspected violation of law, enjoy immunity from civil and criminal liability under state and federal trade secrets laws for such disclosure. I acknowledge that I have hereby received adequate notice of this immunity, such that the Company is entitled to all remedies available for violations of the Act, including exemplary damages and attorney fees. Nothing in this Agreement is intended to conflict with the Act or create liability for disclosures of trade secrets that are expressly allowed by the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Notice</u>. "*An individual shall not be held criminally or civilly liable under any Federal or state trade secret law for the disclosure of a trade secret that is made in confidence to a Federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law. An individual shall not be held criminally or civilly liable under any Federal or state trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal; and does not disclose the trade secret, except pursuant to court order.*"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Undertaking of Secrecy</u>. As a condition of my continued employment with the Company, I hereby affirm all of the undertakings set forth in the Undertaking of Secrecy, a copy of which is attached hereto as <u>Annex A</u>.

**Section 2. Inventions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Prior Developments</u>. By signing below, I represent that there are no developments, inventions, concepts, know-how, original works of authorship, improvements, trade secrets, methodology, algorithms, software, processes, formulas, designs, drawings and other technological advancements and implementations that I can demonstrate were created or owned by me prior to the commencement of the Employment Period, which belong solely to me or belong to me jointly with another, that relate in any way to any of the actual or proposed businesses, products, or research and development of any member of the Company Group and which are not assigned to the Company hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignment of Inventions</u>. Without additional compensation, I agree to assign, and hereby do assign, to the Company all rights, title and interest throughout the world in and to all Inventions (as defined below) which I solely or jointly conceive, create, invent, develop, modify, compile or reduce to practice (or have conceived, created, invented, developed, modified, compiled or reduced to practice), at any time during any period during which I perform or performed services for the Company Group both before or after the date hereof (the "***Assignment Period"),*** whether as an officer, employee, director, independent contractor, consultant, or agent, or in any other capacity, whether or not during regular working hours, provided they either (i) relate at the time of conception, development or reduction to practice to the business of any

------

member of the Company Group, or the actual or anticipated research or development of any member of the Company Group; (ii) result from or relate to any work performed for any member of the Company Group; or (iii) are developed through the use of equipment, supplies, or facilities of any member of the Company Group, or any Confidential Information, or in consultation with personnel of any member of the Company Group (collectively referred to as "***Company IP Rights")***. I understand that "Inventions" means inventions, concepts, know-how, developments, original works of authorship, improvements, trade secrets, methodology, algorithms, software, processes, formulas, designs, drawings and other technological advancements and implementations. I agree that I will promptly make full written disclosure to the Company of any Company IP Rights I participate in conceiving, creating, inventing, developing, modifying, compiling or reducing to practice during the Assignment Period. I further acknowledge that, to the greatest extent permitted by applicable law, all Company IP Rights made by me (solely or jointly with others) within the scope of and during the Assignment Period are "works made for hire" for which I am, in part, compensated by my salary, unless regulated otherwise by law. If any Company IP Rights cannot be assigned, I hereby grant to the Company Group an exclusive, assignable, irrevocable, perpetual, worldwide, sublicenseable (through one or multiple tiers), royalty-free, unlimited license to use, make, modify, sell, offer for sale, reproduce, distribute, create derivative works of, publicly perform, publicly display and digitally perform and display such work in any media now known or hereafter known. Outside the scope of my service, whether during or after the Employment Period, I agree not to (i) modify, adapt, alter, translate, or create derivative works from any such work of authorship or (ii) merge any such work of authorship with other Company IP Rights. To the extent rights related to paternity, integrity, disclosure and withdrawal (collectively, "***Moral Rights")*** may not be assignable under applicable law and to the extent the following is allowed by the laws in the various countries where Moral Rights exist, I hereby irrevocably waive such Moral Rights and consent to any action of the Company Group that would violate such Moral Rights in the absence of such consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Maintenance of Records</u>. I agree to keep and maintain adequate and current written records of all Company IP Rights made by me (solely or jointly with others) during the Assignment Period. The records may be in the form of notes, sketches, drawings, flow charts, electronic data or recordings, and any other format. The records will be available to and remain the sole property of the Company Group at all times. I agree not to remove such records from the Company's place of business except as expressly permitted by Company Group policy, which may, from time to time, be revised at the sole election of the Company Group for the purpose of furthering the business of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Intellectual Property Rights</u>. I hereby agree to assist the Company, or its designee, at the Company's expense, in every way to secure the rights of the Company Group in the Company IP Rights and any copyrights, patents, trademarks, service marks, database rights, domain names, mask work rights, moral rights, and other intellectual property rights relating thereto in any and all countries, including the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments, recordations, and all other instruments that the Company shall deem necessary in order to apply for, obtain, maintain, and transfer such rights and in order to assign and convey to the Company Group the sole and exclusive right, title, and interest in and to such Company IP Rights, and any intellectual property and other proprietary rights relating thereto. I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such

------

instrument or papers shall continue after the Assignment Period until the expiration of the last such intellectual property right to expire in any country of the world; *provided, however,* that the Company shall reimburse me for my reasonable expenses incurred in connection with carrying out the foregoing obligation. If the Company is unable because of my mental or physical incapacity or unavailability for any other reason to secure my signature to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering Company IP Rights or original works of authorship assigned to the Company as above, then I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact to act for and in my behalf and stead to execute and file any such applications or records and to do all other lawfully permitted acts to further the application for, prosecution, issuance, maintenance, and transfer of letters patent or registrations thereon with the same legal force and effect as if originally executed by me. I hereby waive and irrevocably quitclaim to the Company any and all claims, of any nature whatsoever, that I now or hereafter have for past, present, or future infringement of any and all proprietary rights assigned to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>State Non-assignable Invention Exemptions</u>. Solely to the extent that I (i) was or am an employee of the Company and (ii) was or am based in California, Illinois, Kansas, Minnesota, Washington or any other state that has enacted laws concerning employee non-assignability of inventions or otherwise entitled to the benefits of the state statutes of California, Illinois, Kansas, Minnesota, Washington or any other state that has enacted laws concerning employee non-assignability of inventions, during the Employment Period, then, to the extent the assignment of Company IP Rights to the Company in this Section 2 can be construed to cover inventions excluded under the appropriate state statutes (including, but not limited to, California Labor Code Sec. 2870, Illinois Employee Patent Act, 765 ILCS 1060, Kansas Statute K.S.A. § 44-130, Minn. Stat. § 181.78, and Sec. 2, Revised Code of Washington Section 49.44.140(1), the full terms of each are set forth on <u>Schedule A</u> attached hereto and are each incorporated herein by reference), this Section 2 shall not apply to such inventions.

**Section 3. Returning Company Group Documents.**

I agree that, at the time of termination of my employment with the Company Group for any reason, I will deliver to the Company (and will not keep in my possession, recreate, or deliver to anyone else) any and all Confidential Information, Third Party Information and all other documents, materials, information, and property developed by me pursuant to my employment or otherwise belonging to the Company Group and, if so requested, will certify in writing that I have fully complied with the foregoing obligation. I agree further that I will not copy, delete, or alter any information contained upon my Company Group computer or Company Group equipment before I return it to the Company. In addition, if I have used any personal computer, server, or e-mail system to receive, store, review, prepare or transmit any Company Group information, including but not limited to, Confidential Information, I agree to provide the Company with a computer-useable copy of all such Company Group information and then permanently delete and expunge such Company Group information from those systems; and I agree to provide the Company access to my system as reasonably requested to verify that the necessary copying and/or deletion is completed. I agree further that any property situated on the Company Group's premises and owned by the Company (or any other member of the Company Group), including disks and other storage media, filing cabinets, and other work areas, is subject to inspection by personnel of any member of the Company Group at any time with or without notice.

------

**Section 4. Disclosure of Agreement.**

As long as it remains in effect, I will disclose the existence of this Agreement to any prospective employer, partner, co-venturer, investor, or lender prior to entering into an employment, partnership, or other business relationship with such person or entity. I also consent to the notification of my prospective employer, partner, co-venturer, investor, or lender of my rights and obligations under this Agreement, by the Company providing a copy of this Agreement or otherwise.

**Section 5. Publicity.**

I hereby consent to any and all uses and displays by the Company Group of my name, voice, likeness, image, appearance and biographical information in or in connection with any printed, electronic or digital materials, including, without limitation, any pictures, audio or video recordings, digital images, websites, television programs, advertising, sales or marketing brochures, printed materials and computer media, throughout the world and at any time during or after the Employment Period for all legitimate business purposes of the Company Group (the "***Permitted Use")***. I hereby forever release the Company Group and each of their respective current or former directors, officers, employees, shareholders, representatives and agents from any and all claims, actions, damages, losses, costs, expenses and liability of any kind arising under any legal or equitable theory whatsoever at any time during or after the Employment Period in connection with any Permitted Use.

**Section 6. Restrictions on Interfering.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Competition</u>. Except to the extent provided otherwise in, or modified by, <u>Schedule B</u> (as applicable based on the jurisdiction in which I am employed by the applicable member of the Company Group at the relevant time), during the Restricted Period, I shall not, directly or indirectly, individually or on behalf of any person, company, enterprise, or entity, or as a sole proprietor, partner, shareholder, director, officer, principal, agent, employee or executive, or in any other capacity or relationship, engage in any Competitive Activities, within the United States or any other jurisdiction in which the Company Group is actively engaged in business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Interference</u>. Except to the extent provided otherwise in, or modified by, <u>Schedule B</u> (as applicable based on the jurisdiction in which I am employed by the applicable member of the Company Group at the relevant time), during the Restricted Period, I shall not, directly or indirectly for my own account or for the account of any other individual or entity, engage in Interfering Activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "***Business***  ***Relation"*** shall mean any current or prospective client, customer, licensee, or other business relation of the Company Group, or any such relation that was a client, customer, licensee, supplier, or other business relation within the six (6) month period prior to the termination of the Employment Period, in each case, to whom I provided services, or with whom I transacted business, or whose identity became known to me in connection with my relationship with or employment by the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "***Competitive Activities"*** shall mean any business activity that is competitive with the then-current or demonstrably planned business activities of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "***Interfering Activities"*** shall mean (A) encouraging, soliciting, or inducing, or in any manner attempting to encourage, solicit, or induce, any Person employed by, or providing consulting services to, any member of the Company Group to terminate such Person's employment or services (or in the case of a consultant, materially reducing such services) with the Company Group; (B) hiring any individual who was employed by the Company Group within the six (6) month period prior to the date of such hiring; or (C) encouraging, soliciting, or inducing, or in any manner attempting to encourage, solicit, or induce, any Business Relation to cease doing business with or reduce the amount of business conducted with any member of the Company Group, or in any way interfering with the relationship between any such Business Relation and any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "***Person***" shall mean any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust (charitable or non-charitable), unincorporated organization, or other form of business entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "***Restricted Period"*** shall mean the period commencing on the date hereof and ending on the twelve (12) month anniversary of the date of any termination of the Employment Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Non-Disparagement</u>. I agree that during the Employment Period, and at all times thereafter, subject to Schedule B (as applicable based on the jurisdiction in which I am employed by the applicable member of the Company Group at the relevant time), I will not make any disparaging or defamatory comments regarding any member of the Company Group or its respective current or former directors, officers, employees or shareholders in any respect or make any comments concerning any aspect of my relationship with any member of the Company Group or any conduct or events which precipitated any termination of my employment from the Company Group. However, my obligations under this subsection (d) shall not apply to disclosures required by applicable law, regulation, or order of a court or governmental agency. Further, nothing in this Agreement prohibits me from speaking with law enforcement, the Equal Employment Opportunity Commission, any state or local division of human rights or fair employment agency, or my attorney.

**Section 7. Reasonableness of Restrictions.**

I acknowledge and recognize the highly competitive nature of the Company Group's business, that access to Confidential Information renders me special and unique within the Company Group's industry, and that I will have the opportunity to develop substantial relationships with existing and prospective clients, accounts, customers, consultants, contractors, investors, and strategic partners of the Company Group during the course of and as a result of my

------

employment with the Company Group. In light of the foregoing, I recognize and acknowledge that the restrictions and limitations set forth in this Agreement are reasonable and valid in geographical and temporal scope and in all other respects and are essential to protect the value of the business and assets of the Company Group. I acknowledge further that the restrictions and limitations set forth in this Agreement will not materially interfere with my ability to earn a living following the termination of the Employment Period and that my ability to earn a livelihood without violating such restrictions is a material condition to my employment with the Company Group.

**Section 8. Independence; Severability; Blue Pencil.**

Each of the rights enumerated in this Agreement shall be independent of the others and shall be in addition to and not in lieu of any other rights and remedies available to the Company Group at law or in equity. If any of the provisions of this Agreement or any part of any of them is hereafter construed or adjudicated to be invalid or unenforceable, the same shall not affect the remainder of this Agreement, which shall be given full effect without regard to the invalid portions. If any of the covenants contained herein are held to be invalid or unenforceable because of the duration of such provisions or the area or scope covered thereby, I agree that the court making such determination shall have the power to reduce the duration, scope, and/or area of such provision to the maximum and/or broadest duration, scope, and/or area permissible by law, and in its reduced form said provision shall then be enforceable.

**Section 9. Injunctive Relief.**

I expressly acknowledge that, because my services are personal and unique and because I will have access to Confidential Information, any breach or threatened breach of any of the terms and/or conditions set forth in this Agreement may result in substantial, continuing, and irreparable injury to the members of the Company Group for which monetary damages would not be an adequate remedy. Therefore, I hereby agree that, in addition to any other right or remedy that may be available to the Company in law or in equity, any member of the Company Group shall be entitled to injunctive relief, specific performance, or other equitable relief by a court of appropriate jurisdiction in the event of any breach or threatened breach of the terms of this Agreement without the necessity of proving irreparable harm or injury as a result of such breach or threatened breach or posting a bond and without liability should relief be denied, modified or vacated. Notwithstanding any other provision to the contrary, I acknowledge and agree that the Restricted Period shall be tolled during any period of violation of any of the covenants in Section 6 hereof and during any other period required for litigation during which the Company or any other member of the Company Group seeks to enforce such covenants against me if it is ultimately determined that I was in breach of such covenants.

**Section 10. Cooperation.**

I agree that, following any termination of my employment, I will continue to provide reasonable cooperation to the Company and/or any other member of the Company Group and its or their respective counsel in connection with any investigation, administrative proceeding, or litigation relating to any matter that occurred during the Employment Period in which I was involved or of which I have knowledge. As a condition of such cooperation, the Company shall

------

reimburse me for reasonable out-of-pocket expenses incurred at the request of the Company with respect to my compliance with this Section. I also agree that, in the event that I am subpoenaed by any person or entity (including, but not limited to, any government agency) to give testimony or provide documents (in a deposition, court proceeding, or otherwise) that in any way relates to my employment by the Company and/or any other member of the Company Group, I will give prompt notice of such request to the Company and will make no disclosure until the Company and/or the other member of the Company Group has had a reasonable opportunity to contest the right of the requesting person or entity to such disclosure.

**Section 11. General Provisions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law and Jurisdiction</u>. EXCEPT WHERE PREEMPTED BY FEDERAL LAW OR EXCEPT AS OTHERWISE PROVIDED IN SCHEDULE B (TO THE EXTENT APPLICABLE TO ME), THE VALIDITY, INTERPRETATION, CONSTRUCTION, AND PERFORMANCE OF THIS AGREEMENT IS GOVERNED BY AND IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF FLORIDA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS RULES. FURTHER, I HEREBY CONSENT TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF FLORIDA, AND WAIVE ANY RIGHT TO TRIAL BY JURY, IN CONNECTION WITH ANY DISPUTE ARISING UNDER OR CONCERNING THIS AGREEMENT. NOTWITHSTANDING THE FOREGOING, TO THE EXTENT REQUIRED BY THE APPLICABLE LAWS OF THE STATE IN WHICH I WORK (OR, IF POST-TERMINATION, THE STATE IN WHICH I MOST RECENTLY WORKED), THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER AND IN ACCORDANCE WITH LAWS OF THE STATE IN WHICH I WORK (OR, IF POST-TERMINATION, THE STATE IN WHICH I MOST RECENTLY WORKED), IN EACH CASE, WITHOUT REFERENCE TO RULES RELATING TO CONFLICTS OF LAW.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Attorneys' Fees</u>. I agree to indemnify the Company Group for its reasonable attorneys' fees and costs incurred in enforcing the terms of this Agreement should I violate any of its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Entire Agreement</u>. This Agreement sets forth the entire agreement and understanding between the Company and me relating to the subject matter herein and merges all prior discussions between us, provided that nothing contained in this Agreement shall limit, restrict or adversely affect in any way the Company's right, title or interest in any Company IP Rights transferred or assigned by me (or on my behalf) to the Company at any time prior to the date hereof. No modification or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing signed by the party to be charged. Any subsequent change or changes in my duties, obligations, rights, or compensation will not affect the validity or scope of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Right of Continued Employment</u>. I acknowledge and agree that nothing contained herein shall be construed as granting me any right to continued employment by the Company Group, and the right of the applicable member of the Company Group to terminate my employment at any time and for any reason, with or without cause, is specifically reserved.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Successors and Assigns</u>. This Agreement will be binding upon my heirs, executors, administrators, and other legal representatives and will be for the benefit of the Company, its successors, and its assigns. I expressly acknowledge and agree that this Agreement may be assigned by the Company without my consent to any other member of the Company Group as well as any purchaser of all or substantially all of the assets or stock of the Company or of any business or division of the Company for which I provide services, whether by purchase, merger, or other similar corporate transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Survival. The provisions of this Agreement shall survive the termination of my employment with the Company and/or the assignment of this Agreement by the Company to any successor in interest or other assignee.

\* \* \*

[*Signature to appear on the following page.*]

------

I, Gustavo Fernandez, have executed this Restrictive Covenant Agreement on the date set forth below:

Date: September 3, 2024

---

| |
|:---|
|  /s/ Gustavo Fernandez |
| (Signature) |
|  Gustavo Fernandez |
|  (Type/Print Name) |

---

[*Signature Page to Restrictive Covenant Agreement*]

------

**ANNEX A** 

**UNDERTAKING OF SECRECY** 

(See attached.)

------

**Schedule 2** 

Undertaking of Secrecy

To: Safepoint Holdings, Inc. (Florida, U.S.A.)

I, Gustavo Fernandez, HEREBY UNDERTAKE THE FOLLOWING:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. That during and after the course of my employment with Safepoint Holdings, Inc. or any of its affiliates (the
"Company''), I will keep secret the affairs and concerns of the Company, and the nature and particulars of the Company, including, but not limited to its investors, clients, transactions, trading models and trading strategies or
the financial results or performance figures of the Company or any client or strategy that may come to my attention during the course of my employment with the Company ("Confidential Information").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. That upon my departure from the Company, I will not disclose to any person the affairs of the Company,
including, but not limited to its investors, clients, transactions, trading models and trading strategies that may come to my attention during the course of my employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. That upon my departure from the Company, I will not take with me any Confidential Information belonging to or
concerning the Company, or its clients, whether in printed form or on any electronic storage device.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. In the event that I do have in my possession any Confidential Information following my departure from the
Company, I undertake to deliver such information to the Company within 3 days of my departure. If personal delivery of such information is either not possible or inconvenient, I undertake to contact the Chief Executive Officer of the Company and
arrange a suitable method of disposal of such confidential information within three days of my departure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*5.* In the event that I am legally required to disclose any Confidential Information to a third party, I
agree to: (i) promptly notify the Company of the existence, terms and circumstances surrounding such possible disclosure; (ii) consult with the Company on the advisability of taking legally available steps to resist or narrow such
disclosure; (iii) unless prohibited by law, supply the Company with copies of all communications between me and any third party to whom disclosure is to be made or by whose order it is to be made; and (iv) cooperate with any of the
Company's efforts, at the Company's expense, to obtain an order or other reliable assurance that confidential treatment will be accorded to such information.

------

I hereby acknowledge that any breach of this undertaking may result in my dismissal from the Company for Cause (as defined in my Employment Agreement), and that my obligations under this undertaking continue after the termination of my employment with the Company.

---

| | |
|:---|:---|
| DATE: |  |
| /s/ Gustavo Fernandez | /s/ Nancy Baily |
| Gustavo Fernandez | WITNESS: |

---

*[Signature Page to Undertaking of Secrecy]*

------

**SCHEDULE A** 

**RESTRICTIVE COVENANT AGREEMENT** 

**INVENTION ASSIGNMENT NOTICE** 

I am hereby notified that the Restrictive Covenant Agreement, dated as of September ___, 2024, to which this Schedule A is attached, does not apply to any invention which qualifies fully for exclusion under the provisions of California Labor Code Sec. 2870, Illinois Employee Patent Act, 765 ILCS 1060, Sec. 2, Kansas Statute K.S.A. §44-130, Minn. Stat. §181.78, Revised Code of Washington Section 49.44.140(1) or any other state statute not listed below concerning employee non-assignability of inventions. The following is the text of each of the aforementioned statutes.

**CALIFORNIA LABOR CODE SECTION 2870** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Relate at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Result from any work performed by the employee for the employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

**ILLINOIS EMPLOYEE PATENT ACT, 765 ILLINOIS COMPILED STATUTES 1060** 

**Employee rights to inventions - conditions.** (1) A provision in an employment agreement which provides that an employee shall assign or offer to assign any of the employee's rights in an invention to the employer does not apply to an invention for which no equipment, supplies, facilities, or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless (a) the invention relates (i) to the business of the employer, or (ii) to the employer's actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by the employee for the employer. Any provision which purports to apply to such an invention is to that extent against the public policy of this State and is to that extent void and unenforceable. The employee shall bear the burden of proof in establishing that his invention qualifies under this subsection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) An employer shall not require a provision made void and unenforceable by subsection (1) of this Section as a condition of employment or continuing employment. This Act shall not preempt existing common law applicable to any shop rights of employers with respect to employees who have not signed an employment agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If an employment agreement entered into after January 1, 1984, contains a provision requiring the employee to assign any of the employee's rights in any invention to the employer, the employer must also, at the time the agreement is made, provide a written notification to the employee that the agreement does not apply to an invention for which no equipment, supplies, facility, or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless (a) the invention relates (i) to the business of the employer, or (ii) to the employer's actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by the employee for the employer.

**KANSAS STATUTE K.S.A. SECTION 44-130** 

**Employment agreements assigning employee rights in inventions to employer; restrictions; certain provisions void; notice and disclosure.** (a) Any provision in an employment agreement which provides that an employee shall assign or offer to assign any of the employee's rights in an invention to the employer shall not apply to an invention for which no equipment, supplies, facilities or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The invention relates to the business of the employer or to the employer's actual or demonstrably anticipated research or development; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The invention results from any work performed by the employee for the employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any provision in an employment agreement which purports to apply to an invention which it is prohibited from applying to under subsection (a), is to that extent against the public policy of this state and is to that extent void and unenforceable. No employer shall require a provision made void and unenforceable by this section as a condition of employment or continuing employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If an employment agreement contains a provision requiring the employee to assign any of the employee's rights in any invention to the employer, the employer shall provide, at the time the agreement is made, a written notification to the employee that the agreement does not apply to an invention for which no equipment, supplies, facility or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the invention relates directly to the business of the employer or to the employer's actual or demonstrably anticipated research or development; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the invention results from any work performed by the employee for the employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Even though the employee meets the burden of proving the conditions specified in this section, the employee shall disclose, at the time of employment or thereafter, all inventions being developed by the employee, for the purpose of determining employer and employee rights in an invention.

ii

------

**MINNESOTA STATUTES SECTION 181.78** 

**Subdivision 1. Inventions not related to employment.** Any provision in an employment agreement which provides that an employee shall assign or offer to assign any of the employee's rights in an invention to the employer shall not apply to an invention for which no equipment, supplies, facility or trade secret information of the employer was used and which was developed entirely on the employee's own time, and (1) which does not relate (a) directly to the business of the employer or (b) to the employer's actual or demonstrably anticipated research or development, or (2) which does not result from any work performed by the employee for the employer. Any provision which purports to apply to such an invention is to that extent against the public policy of this state and is to that extent void and unenforceable.

**Subdivision. 2.Effect of subdivision 1.** No employer shall require a provision made void and unenforceable by subdivision 1 as a condition of employment or continuing employment.

**Subdivision. 3.Notice to employee.** If an employment agreement entered into after August 1, 1977 contains a provision requiring the employee to assign or offer to assign any of the employee's rights in any invention to an employer, the employer must also, at the time the agreement is made, provide a written notification to the employee that the agreement does not apply to an invention for which no equipment, supplies, facility or trade secret information of the employer was used and which was developed entirely on the employee's own time, and (1) which does not relate (a) directly to the business of the employer or (b) to the employer's actual or demonstrably anticipated research or development, or (2) which does not result from any work performed by the employee for the employer.

**REVISED CODE OF WASHINGTON SECTION 49.44.140** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A provision in an employment agreement which provides that an employee shall assign or offer to assign any of the employee's rights in an invention to the employer does not apply to an invention for which no equipment, supplies, facilities, or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless (a) the invention relates (i) directly to the business of the employer, or (ii) to the employer's actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by the employee for the employer. Any provision which purports to apply to such an invention is to that extent against the public policy of this state and is to that extent void and unenforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) An employer shall not require a provision made void and unenforceable by subsection (1) of this section as a condition of employment or continuing employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If an employment agreement entered into after September 1, 1979, contains a provision requiring the employee to assign any of the employee's rights in any invention to the employer, the employer must also, at the time the agreement is made, provide a written notification to the employee that the agreement does not apply to an invention for which no equipment, supplies, facility, or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless (a) the invention relates (i) directly to the business of the employer, or (ii) to the employer's actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by the employee for the employer.

iii

------

**REVISED CODE OF WASHINGTON SECTION 49.44.150** 

Even though the employee meets the burden of proving the conditions specified in Revised Code of Washington 49.44.110, the employee shall, at the time of employment or thereafter, disclose all inventions being developed by the employee, for the purpose of determining employer or employee rights. The employer or the employee may disclose such inventions to the department of employment security, and the department shall maintain a record of such disclosures for a minimum period of five years.

iv

------

**SCHEDULE B** 

**JURISDICTION-SPECIFIC MODIFICATIONS TO CONFIDENTIALITY, NON-INTERFERENCE, AND INVENTION ASSIGNMENT AGREEMENT** 

This <u>Schedule B</u> to the Restrictive Covenant Agreement (the "***Agreement***") includes jurisdiction-specific addenda, which modify certain sections of the Agreement as applied to individuals who primarily reside and work in one of the applicable jurisdictions, but only to the extent the laws of such jurisdiction are applicable to the Agreement. This <u>Schedule B</u> should be read in conjunction with the rest of the Agreement and enforced to the fullest extent permissible to protect the Company Group's legitimate business interests. Capitalized terms used but not defined in this <u>Schedule B</u> shall have the meanings ascribed to such terms in the Agreement.

---

| | |
|:---|:---|
|  **California** | If I primarily reside and work in California: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • <u>Sections 1</u> and <u>6(d)</u> of the Agreement are not intended to, and do not purport to, infringe on my right to discuss or disclose information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that I have reason to believe is unlawful.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Each of (i) <u>Section 6(a)</u> of the Agreement and (ii) clause (B) and clause (C) of the definition of "Interfering Activities" as used in <u>Section 6(b)</u> of the Agreement (*i.e.*, a covenant not to hire employees of the Company Group and not to solicit customers) will not apply to me following the termination of the Employment Period; *provided*, that, I agree that, following the Employment Period, I will not, directly or indirectly, whether acting for my own account or for the account of any other individual, company, enterprise, or entity, or as a sole proprietor, owner, partner, shareholder, director, officer, principal, agent, executive, employee, contractor or otherwise, utilize the Company Group's trade secrets to solicit, divert or take away, or attempt to solicit, divert or take away, any business of any of the clients, customers or accounts, or prospective clients, customers or accounts, of any member of the Company Group.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I understand that the provisions of the Agreement requiring assignment of developments to the Company do not apply to any invention which qualifies fully under the provisions of Section 2870 of the California Labor Code (the full terms of which are set forth on <u>Schedule B</u> of the Agreement). I will advise the Company promptly in writing of any inventions that I believe meet the criteria in Section 2870 of the California Labor Code and I bear the full burden of proving to any member of the Company Group that an invention qualifies fully under Section 2870 of the California Labor Code. I acknowledge receipt of the Agreement and of written notification of the provisions of Section 2870 of the California Labor Code.<br>|

---

i

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • NOTWITHSTANDING <u>Section 11(A)</u> OF THE AGREEMENT, THE VALIDITY, INTERPRETATION, CONSTRUCTION, AND PERFORMANCE OF THE AGREEMENT IS GOVERNED BY AND IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS RULES. FURTHER, I HEREBY CONSENT TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE NORTHERN DISTRICT OF THE STATE OF CALIFORNIA. THE WAIVER OF ANY RIGHT TO TRIAL BY JURY, IN CONNECTION WITH ANY DISPUTE ARISING UNDER OR CONCERNING THE AGREEMENT, WILL NOT APPLY TO ME TO THE EXTENT NOT ENFORCEABLE UNDER CALIFORNIA LAW.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Section 11(b) of the Agreement will not apply to me.<br>|
|  **Colorado** | If I am employed or primarily reside in Colorado: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that, following the Employment Period, <u>Section 6(a)</u> of the Agreement will apply to me (i) only if my "annualized cash compensation" at the time it is entered into and at the time of enforcement is equal to or exceeds the "threshold amount for highly compensated workers" as set forth in Colorado Revised Statutes Section 8- 2-113(2)(b) and (c), which was $123,750 in 2024, subject to annual adjustments for subsequent years as determined by the Division of Labor Standards and Statistics in the Colorado Department of Labor and Employment, and (ii) only to the extent reasonably necessary to protect the Company Group's legitimate interest in protecting trade secrets.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that, following the Employment Period, clause (C) of the definition of "Interfering Activities" as used in <u>Section 6(b)</u> of the Agreement (*i.e.*, a covenant not to solicit customers) will apply to me (i) only if my "annualized cash compensation" at the time it is entered into and at the time of enforcement is equal to or exceeds sixty percent (60%) of the "threshold amount for highly compensated workers" as set forth in Colorado Revised Statutes Section 8-2-113(2)(d), which was $74,250 in 2024, subject to annual adjustments for subsequent years as determined by the Division of Labor Standards and Statistics in the Colorado Department of Labor and Employment and (ii) only to the extent reasonably necessary to protect the Company Group's legitimate interest in protecting trade secrets.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and agree that (i) during my employment I will have access to and knowledge of Confidential Information and such Confidential Information contains trade secrets and (ii) the restrictions and limitations set forth in the Agreement are designed to protect, and are essential to protect, trade secrets of the Company Group pursuant to Colorado Revised Statutes Section 8-2-113.<br>|

---

ii

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If, at the time of termination of the Employment Period, I primarily resided or worked in Colorado, notwithstanding any other provision to the contrary in the Agreement (including Section 11(a)), (i) applicable laws of the State of Colorado shall govern the enforceability of a covenant not to compete contained in the Agreement and (ii) nothing in the Agreement shall require me to adjudicate the enforceability of a covenant not to compete contained in the Agreement outside of the State of Colorado.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and agree that (i) I have been provided written notice of the covenant not to compete contained in the Agreement in a separate document and in clear and conspicuous terms, at least fourteen (14) days before the earlier of (x) the effective date of the Agreement or (y) the effective date of any additional compensation or change in the terms or conditions of employment that provides consideration for the Agreement and (ii) such notice was provided with a copy of the Agreement, identified the Agreement by name and stated that the Agreement contains a covenant not to compete that could restrict my options for subsequent employment following my separation from the Company Group, and directed me to <u>Sections 6(a)</u> through <u>6(c)</u> of the Agreement that contain the covenant not to compete.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that I may request an additional copy of the covenant not to compete once each calendar year.<br>|
| **District of Columbia** | &nbsp;&nbsp;&nbsp;&nbsp; • I understand that the non-competition obligations under <u>Section 6(a)</u> of the Agreement will not apply to me if I am considered a "covered employee" under the District of Columbia's Ban on Non-Compete Agreements Amendment Act of 2020, as amended by the Non-compete Clarification Amendment Act of 2022 (collectively, the "***DC Non-Compete Act***"). I am a covered employee if I am not a "highly compensated employee" (as described below) and the following conditions are satisfied: (i) If I have commenced work for the Company Group, (A) I spend more than 50% of my work time for the Company Group working in the District of Columbia or (B) my employment is based in the District of Columbia and I regularly spend a substantial amount of my work time for the Company Group in the District of Columbia and not more than 50% of my work time for the Company in another jurisdiction; or (ii) if I have not yet commenced work for the Company Group, (A) the Company Group reasonably anticipates that I will spend more than 50% of my work time for the Company Group working in the District of Columbia or (B) my employment for the Company Group will be based in the District of Columbia, and the Company Group reasonably anticipates that I will regularly spend a substantial amount of my work time for the Company Group in the District of Columbia and not more than 50% of my work time for the Company Group in another jurisdiction.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that <u>Section 6(a)</u> of the Agreement will apply to me if I am a "highly compensated employee" pursuant to the DC Non- Compete Act (and therefore not a "covered employee"). Under the DC Non-Compete Act, a "highly compensated employee" is an employee who is reasonably expected to earn from the Company Group in a consecutive 12- month period, or who has earned in the preceding 12-month period,<br>|

---

iii

------

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; compensation greater than or equal to the "minimum qualifying annual compensation" (which is $154,000 for employees and $257,000 for medical specialists as of January 1, 2024, subject to increase each year based on increases in the Department of Labor's Consumer Price Index for All Urban Consumers in the Washington Metropolitan Statistical Area). |
| &nbsp;&nbsp;&nbsp;&nbsp; • If I am a "highly compensated employee," I acknowledge and agree that (A) I have been provided a copy of the Agreement (including the non-compete provision) at least fourteen (14) days before I commenced employment for the Company Group to review the non-compete provision in the Agreement or, if I am a current employee, at least fourteen (14) days before the date I was required to sign the Agreement and (B) I had or could have had at least fourteen (14) days to review and consider the Agreement before I was required to sign the Agreement, and that if I execute the Agreement prior to the expiration of such period, I have voluntarily and knowingly waived the remainder of such review period.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • If I am a "highly compensated employee," the following notice is being provided pursuant to D.C. Code § 32–581.03a.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *The District's Ban on Non-Compete Agreements Amendment Act of 2020 limits the use of non-compete agreements. It allows employers to request non-compete agreements from highly compensated employees, as that term is defined in the Ban on Non-Compete Agreements Amendment Act of 2020, under certain conditions. The Company has determined that you are a highly compensated employee. For more information about the Ban on Non-Compete Agreements Amendment Act of 2020, contact the District of Columbia Department of Employment Services (DOES).* |
| &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that, notwithstanding the foregoing, during the Employment Period, <u>Section 6(a)</u> of the Agreement prohibits me, and I will be prohibited, from accepting money or a thing of value for performing work for a person other than the Company Group, where the Company Group reasonably determines that my acceptance of money or a thing of value under such circumstances will result in the disclosure or use of Confidential Information or proprietary information of the Company Group, conflict with the Company Group's, industry's or profession's established rules regarding conflicts of interests, constitute a conflict of commitment if I am employed by a higher education institution, or impair my ability to comply with the District or federal laws or regulations, a contract or a grant agreement.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that, notwithstanding the foregoing, <u>Section 6</u> of the Agreement may be enforced to the extent it does not constitute a "non-compete provision" as defined in D.C. Code § 32-581.01 as a provision that provides a "long-term incentive" as defined in D.C. Code § 32-581.01.<br>|

---

iv

------

---

| | |
|:---|:---|
|  **Georgia** | If I am employed in Georgia: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Following the Employment Period, <u>Section 6(a)</u> of the Agreement will not apply to me if I do not, in the course of my employment, (i) customarily and regularly solicit for the Company Group's customers or prospective customers; (ii) customarily and regularly engage in making sales or obtaining orders or contracts for products or services to be performed by others; (iii) perform the following duties: (A) have a primary duty of managing the enterprise in which I am employed or of a customarily recognized department or subdivision thereof, (B) customarily and regularly direct the work of two or more other employees, and (C) have the authority to hire or fire other employees or have particular weight given to suggestions and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees; or (iv) perform the duties of a key employee or professional.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Following the Employment Period, for purposes of <u>Section 6(b)</u> of the Agreement, clause (C) of the definition of "Interfering Activities" as used in <u>Section 6(b)</u> of the Agreement (*i.e.*, a covenant not to solicit customers) will apply only (i) to such Business Relation with whom I had material contact and (ii) with respect to products or services that are competitive with those provided by the Company Group's business (*i.e.*, activities, products, or services that are the same as or similar to the activities, products, or services of the employer and of the type conducted, authorized, offered, or provided within two (2) years prior to the termination of the Employment Period).<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Notwithstanding Section 11(a) of the Agreement, the waiver of any right to trial by jury in connection with any dispute arising under or concerning the Agreement will not apply to me to the extent not enforceable under the laws of the State of Georgia.<br>|
|  **Idaho** | If I am employed in Idaho, I acknowledge and agree that (i) for purposes of <u>Sections 6(a)</u> and <u>6(b)</u> of the Agreement, I am a "key employee" within the meaning of Idaho Code Section 44-2701, et seq. and (ii) the restrictions under <u>Sections 6(a)</u> and <u>6(b)</u> of the Agreement are necessary to protect the Company Group's legitimate business interests within the meaning of Idaho Code Section 44-2701, et seq. |
|  **Illinois** | If I am employed in Illinois: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and agree that restrictions under <u>Section 6(a)</u> and <u>Section 6(b)</u> of the Agreement are necessary to protect the Company Group's legitimate business interests, including its interests in the Company Group's trade secrets and Confidential Information, its substantial and near permanent relationships with customers, and its customer goodwill.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that <u>Section 6(a)</u> of the Agreement will apply to me only if my actual or expected annualized rate of earnings exceeds the applicable earnings threshold under the Illinois Freedom to Work Act (820 ILSC 90/10), which is $75,000 per year prior to January 1, 2027 (or $80,000 per year beginning January 1, 2027, $85,000 per year beginning January 1, 2032, and $90,000 per year beginning January 1, 2037, or such other amounts as prescribed by applicable law).<br>|

---

v

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that <u>Section 6(b)</u> of the Agreement will apply to me only if my actual or expected annualized rate of earnings exceeds the applicable earnings threshold under the Illinois Freedom to Work Act (820 ILSC 90/10), which is $45,000 per year prior to January 1, 2027 (or $47,500 per year beginning on January 1, 2027, $50,000 per year beginning on January 1, 2032, and $52,500 per year beginning on January 1, 2037, or such other amounts as prescribed by applicable law).<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Further, in the event that my employment is terminated (or furloughed) by the Company Group as the result of business circumstances or governmental orders related to the COVID-19 pandemic or under circumstances that are similar to the COVID-19 pandemic, <u>Section 6(a)</u> or <u>6(b)</u> of the Agreement shall not apply to me unless I am provided with compensation equivalent to my base salary at the time of termination for the period of enforcement *minus* compensation earned through subsequent employment during the period of enforcement (such payment, "***Noncompete Payment***"). I agree that, upon a request from the Company, I will provide the Company with proof of my new wage rate or salary through subsequent employment for the purposes of calculating the Noncompete Payment, which may be adjusted from payment to payment based on the information I provide to the Company. Notwithstanding anything foregoing, I acknowledge and agree that nothing herein shall be construed to confer upon me any right to Noncompete Payments or severance payments and that the Company may, in its sole discretion, elect to not enforce the provisions of <u>Section 6(a)</u> of the Agreement. For avoidance of doubt, unless my annualized earnings exceed the annual earnings threshold described above, the restrictions in <u>Section 6(a)</u> or <u>Section 6(b)</u> of the Agreement, as applicable, shall not apply to me.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I further acknowledge and agree that (i) the Company has hereby advised me in writing to seek independent advice from my own legal counsel before entering into the Agreement and (ii) I had or could have had fourteen (14) calendar days from the date I received the Agreement to review and consider the Agreement, and that if I execute the Agreement prior to the expiration of such period, I have voluntarily and knowingly waived the remainder of such review period.<br>|
|  **Maine** | If I am employed in Maine: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If, while employed with the Company Group, I earn a wage at or below 400% of the federal poverty level, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If the Agreement was signed in connection with an offer of employment with the Company Group, I acknowledge that it was disclosed to me that a non-compete agreement would be required prior to my offer of employment.<br>|

---

vi

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and agree that I was provided a copy of the Agreement at least three (3) business days before I was required to sign the Agreement.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • The terms of <u>Section 6(a)</u> of the Agreement will not take effect until I have been employed with the Company Group for at least one (1) year or after a period of six (6) months from the date the Agreement was signed, whichever is later.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and agree that <u>Section 6(a)</u> of the Agreement is no broader than necessary to protect the Company Group's trade secrets, Confidential Information, and/or goodwill.<br>|
|  **Maryland** | If I am employed in Maryland, if while employed with the Company Group I earn a wage equal to or less than (i) $19.88 per hour or $41,350 per year, or (ii) 150% of the Maryland minimum wage rate, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period. For the avoidance of doubt, the above does not in any way permit me to take or use a client list or other proprietary client-related information. |
|  **Massachusetts** | If I am a resident of Massachusetts: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • <u>Section 6(a)</u> of the Agreement will not apply following a termination of my employment if (i) I am classified as "nonexempt" under the U.S. Fair Labor Standards Act, (ii) I am an undergraduate or graduate student partaking in an internship or otherwise entering a short-term employment relationship with the Company Group, whether paid or unpaid, while enrolled in a full-time or part-time undergraduate or graduate educational institution, (iii) my employment is terminated by a member of the Company Group without "cause," or (iv) I am of age 18 or younger. "***Cause***" for purposes of <u>Section 6(a)</u> of the Agreement will exist if (1) there is a reasonable or good faith basis for the Company Group's dissatisfaction with my job performance, conduct or behavior, or (2) grounds for termination exist that are reasonably related, in the Company Group's honest judgment, to the needs of the business.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • "***Competitive Activities***" means any business activity that is competitive with the then-current or demonstrably planned business activities of the Company Group; provided, however, that following the termination of the Employment Period, "***Competitive Activities***" shall mean any business activity of the Company Group in which I participated or provided services within the two (2) year period immediately preceding the termination of the Employment Period.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • With respect to <u>Section 6(a)</u> of the Agreement, unless (A) I am classified as "nonexempt" under the U.S. Fair Labor Standards Act, an undergraduate or graduate student referenced in clause (ii) above or of age 18 or younger, or my employment is terminated by the Company Group without "cause," or (B) the Company otherwise waives the restrictions set forth in <u>Section 6(a)</u><br>|

---

vii

------

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of the Agreement following the termination of the Employment Period, the Company shall pay me the Non-Compete Consideration (as defined below) and I acknowledge and agree that the Non-Compete Consideration shall constitute mutually agreed upon consideration in support of the restrictions set forth in <u>Section 6(a)</u> of the Agreement following the termination of the Employment Period. Notwithstanding any provision herein to the contrary, the payment of the Non-Compete Consideration will be conditioned upon my continued compliance with the terms of the Agreement. |
| &nbsp;&nbsp;&nbsp;&nbsp; • "***Non-Compete Consideration***" shall mean continued payment of my base salary for a period of one (1) month following the date on which the Employment Period terminates, payable in accordance with the employer's regular payroll practices, subject to my continued compliance with the terms of the Agreement (as modified in this <u>Schedule C</u>). The Company and I agree that the Non-Compete Consideration shall constitute "other mutually- agreed upon consideration" and not "garden leave" as such terms are used in M.G.L. c. 149, § 24L.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • Following the termination of the Employment Period, restrictions under <u>Section 6(a)</u> of the Agreement shall be limited in geographic scope to any geographic area in which I, during my time within the two (2) year period preceding the termination of the Employment Period, provided services to the Company Group or had a material presence or influence as an employee of the Company Group.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • If the Agreement is entered into in connection with the commencement of employment, I acknowledge and agree that I have been provided a copy of the Agreement (including the non-compete provision) prior to the earlier of (A) a formal offer of employment or (B) at least ten (10) business days before I commenced employment for the Company Group to review the Agreement.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • If the Agreement is entered into after I commenced employment for the Company Group, I acknowledge and agree that the benefits granted to me concurrently with the Agreement constitute fair and reasonable consideration independent from the continuation of employment in support of my entering into the Agreement in light of the restrictions set forth in <u>Section 6(a)</u> of the Agreement, and that I have been provided a copy of the Agreement (including the non-compete provision) and/or notice of the Agreement at least ten (10) business days before the Agreement is to be effective.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • The Company has hereby advised me in writing that I have the right to consult with counsel prior to entering into the Agreement.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • Notwithstanding Section 11(a) of the Agreement, any suit, action, or proceeding brought by or against me in connection with the enforcement of <u>Section 6(a)</u> of the Agreement shall be brought in the Suffolk county, Massachusetts, and the superior court or the business litigation session of the superior court shall have jurisdiction to adjudicate such dispute. For the avoidance of doubt, all other provisions of the Agreement remain subject to the jurisdiction and venue provisions set forth in Section 11(a) of the Agreement.<br>|

---

viii

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I ACKNOWLEDGE THAT I HAVE CAREFULLY READ THE AGREEMENT AND HAVE BEEN GIVEN AT LEAST TEN (10) BUSINESS DAYS TO REVIEW AND SIGN THE AGREEMENT, DURING WHICH TIME I HAD THE RIGHT TO CONSULT WITH AN ATTORNEY OF MY OWN CHOOSING AT MY OWN EXPENSE. I FURTHER ACKNOWLEDGE THAT I FULLY UNDERSTAND THE CONTENT AND EFFECT OF THE AGREEMENT AND AGREE TO ALL OF THE PROVISIONS CONTAINED HEREIN. I AGREE THAT VOLUNTARILY SIGNING THE AGREEMENT BEFORE THE EXPIRATION OF THE TEN (10) BUSINESS DAYS SHALL SERVE AS A WAIVER OF THE TEN (10) BUSINESS DAY REVIEW PERIOD.<br>|
|  **Minnesota** | If I primarily reside and work in Minnesota: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If, at the time of termination of the Employment Period, I primarily resided or worked in Minnesota, notwithstanding Section 11(a) of the Agreement, validity, interpretation, construction and performance of the Agreement shall be governed by the laws of the State of Minnesota, and nothing in the Agreement shall require me to adjudicate a claim or controversy arising out of the Agreement outside of the State of Minnesota.<br>|
|  **Missouri** | If I am employed in Missouri, <u>Section 6(b)</u> of the Agreement will not apply to the solicitation and recruitment of employees who provide only secretarial or clerical services. |
|  **Nevada** | If I am employed in Nevada: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period if I am paid on an hourly basis.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If the Employment Period is terminated because of a reduction in force, a reorganization, or a similar restructuring, <u>Section 6(a)</u> of the Agreement will only apply to me following such termination while the Company Group is paying me salary, benefits, or equivalent compensation, including, without limitation, severance pay.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • <u>Section 6(a)</u> of the Agreement shall not restrict me from providing services to a former customer or client following the Employment Period if: (i) I did not solicit the former customer or client; (ii) the customer or client voluntarily chose to leave and seek services from me; and (iii) I am otherwise complying with the limitations in the covenant as to time, geographical area and scope of activity to be restrained, other than any limitation on providing services to a former customer or client who seeks my services without any contact instigated by me.<br>|

---

ix

------

---

| | |
|:---|:---|
|  **New Hampshire** | If I am employed in New Hampshire and am engaged by the Company Group as an employee: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge that, pursuant to New Hampshire Revised Statute § 275:70-a, if while employed with the Company Group I earn a wage at an hourly rate less than or equal to 200% of the federal minimum wage, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period so long as I maintain a permanent residence in New Hampshire.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and agree that I have been provided a copy of the Agreement prior to my acceptance of the offer of employment.<br>|
|  **North Dakota** | If I am employed in North Dakota, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period. |
|  **Oklahoma** | If I am employed in Oklahoma, Section 6(a) of the Agreement will not apply to me following the termination of the Employment Period. |
|  **Oregon** | If I am employed in Oregon: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • <u>Section 6(a)</u> of the Agreement will apply to me following the termination of the Employment Period only if (i) I am engaged in administrative, executive or professional work, (ii) I perform predominantly intellectual, managerial or creative tasks, (iii) I exercise discretion and independent judgment, (iv) I am paid on a salary basis, and (v) the total amount of my annual gross salary and commissions, calculated on an annual basis, at the time of the termination of the Employment Period exceeds the amount required under Oregon Revised Statutes ("ORS") § 653.295(1)(e) (which is $113,241 in 2024) as adjusted annually to track inflation pursuant to the Consumer Price Index for All Urban Consumers, West Region (All Items) (an employee meeting the foregoing criteria is hereafter referred to as a "***Qualified Employee***").<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and agree that (i) the Agreement is being executed upon my initial employment with Company Group and is a condition of such employment or (ii) the Agreement is being executed upon my "subsequent bona fide advancement" within the meaning of ORS § 653.295 because of, among other things, my increased responsibilities and access to Confidential Information and trade secrets. If the Agreement is executed upon initial employment, I acknowledge that I was informed in a written job offer at least two (2) weeks before the commencement of employment that a non-competition agreement was required as a condition of employment. If the Agreement is executed upon a "subsequent bona fide advancement," I knowingly and voluntarily waive any argument that my new role does not constitute a "subsequent bona fide advancement."<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Within 30 days after the date of the termination of the Employment Period, the Company Group will provide me a signed, written copy of the Agreement.<br>|

---

x

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Notwithstanding the foregoing, even if I am not a Qualified Employee meeting the requirements under ORS § 653.295(1)(b) and (e), the Company may, at its sole discretion, elect to enforce the non-competition restrictions in <u>Section 6(a)</u> of the Agreement following the termination of the Employment Period, by paying me, for up to the maximum Restricted Period, compensation equal to the greater of (x) fifty percent (50%) of my annual gross base salary and commissions at the time of my separation; or (y) fifty percent (50%) of the minimum annual compensation required under ORS § 653.295. If the Company elects to enforce <u>Section 6(a)</u> of the Agreement following the termination of the Employment Period by agreeing to make the payments referenced in this paragraph, I will be notified in writing. I understand and acknowledge that the Company's election not to pay the compensation set out in this paragraph affects the applicability of <u>Section 6(a)</u> of the Agreement only in the event I am not a Qualified Employee and that the election of non-payment does not relieve a non-Qualified Employee from any other post-employment restriction in the Agreement.<br>|
|  **Rhode Island** | If I am employed in Rhode Island, <u>Section 6(a)</u> of the Agreement will not apply to me following the termination of the Employment Period if I am (i) classified as "non-exempt" under the Fair Labor Standards Act, (ii) an undergraduate or graduate student participating in an internship or otherwise entering into a short-term employment relationship with the Company Group while enrolled at an educational institution, regardless of whether the position is paid, (iii) of age 18 or younger, or (iv) a "low-wage" employee under R.I. Gen. Laws § 28-59-2, *i.e.*, if my average annual earnings (as determined pursuant to R.I. Gen. Laws § 28-59-2(2)) are not more than 250% of the federal poverty level for individuals as established by the United States Department of Health and Human Services federal poverty guidelines. |
|  **Virginia** | If I am employed in Virginia: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledges and understand that if, while employed or otherwise engaged with the Company Group, I am deemed a "low-wage employee" under Code of Virginia § 40.1-28.7:8, *i.e.*, my average weekly earnings, as determined pursuant to Code of Virginia § 40.1-28.7:8, are less than the average weekly wage of the Commonwealth of Virginia as determined pursuant to Code of Virginia § 65.2-500(B) (including if I was engaged as an independent contractor and was compensated for such services by the Company Group at an hourly rate that is less than the median hourly wage for the Commonwealth of Virginia for all occupations as reported, for the preceding year, by the Bureau of Labor Statistics of the U.S. Department of Labor), (i) <u>Section 6(a)</u> of the Agreement will not apply to me following a termination of the Employment Period, and (ii) <u>Section 6(a)</u> or <u>Section 6(b)</u> of the Agreement will not restrict me from providing a service to a customer or client of the Company Group following a termination of the Employment Period as long as I do not initiate contact with or solicit the customer or client.<br>|

---

xi

------

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • The above mentioned exceptions will not apply to me if my earnings are derived, in whole or in predominant part, from sales commissions, incentives, or bonuses paid to me by the Company Group.<br>|
|  **Washington** | If I am employed in Washington: |
|  | &nbsp;&nbsp;&nbsp;&nbsp; • The Agreement is not intended to and does not purport to infringe on my rights under Washington's Silenced No More Act or from disclosing or discussing (i) illegal acts of discrimination, harassment, retaliation, wage and hour violations, sexual assault, or other conduct recognized as being against a clear mandate of public policy occurring in the workplace, at work-related events, between employees, or between an employer and an employee, whether on or off the employment premises, or (ii) information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that I have reason to believe is unlawful.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that, following the termination of the Employment Period, <u>Section 6(a)</u> of the Agreement will only apply to me if the amount of my annualized earnings from the Company Group (calculated as of the earlier of the date enforcement of the noncompetition covenant is sought or the date of termination of the Employment Period) exceeds the compensation requirement described in Revised Code of Washington § 49.62.020 (which is $120,559.99 in 2024), as adjusted annually for inflation in accordance with the Revised Code of Washington §49.62.040.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If the Agreement is executed upon initial employment, I acknowledge and agree that (i) I have been provided a copy of the Agreement (or the terms of the non-compete covenant contained in the Agreement in writing) prior to my acceptance of the offer of employment, and (ii) if the non-compete covenant becomes enforceable only at a later date due to changes in my compensation, I have been specifically advised by the employer (and am hereby being advised) that <u>Section 6(a)</u> of the Agreement may become enforceable and apply to me at a later date due to changes in my compensation in the future, if applicable.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • If the Agreement is entered into after I commenced employment for the Company Group, I acknowledge and agree that the benefits granted to me concurrently with the Agreement constitute fair and reasonable consideration for the Agreement independent from the continuation of employment.<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp; • Further, I acknowledge and understand that, in the event that my employment is terminated by the Company Group as the result of a layoff, <u>Section 6(a)</u> of the Agreement shall not apply to me following such termination unless I am provided with compensation equivalent to my base salary at the time of termination for the period of enforcement *minus* compensation earned through subsequent employment during the period of<br>|

---

xii

------

---

| |
|:---|
| enforcement (such payment, a "***WA Noncompete Payment***"). I agree that, upon a request from the Company, I will provide the Company with proof of my new wage rate or salary through subsequent employment for the purposes of calculating the WA Noncompete Payment, which may be adjusted from payment to payment based on the information I provide to the Company. Notwithstanding anything foregoing, I acknowledge and agree that nothing herein shall be construed to confer upon me any right to WA Noncompete Payments or severance payments and that the Company may, in its sole discretion, elect to not enforce the provisions of <u>Section 6(a)</u> of the Agreement following the termination of my employment due to a layoff. For avoidance of doubt, unless my annualized earnings exceed the annual earnings threshold described above, the restrictions in <u>Section 6(a)</u> shall not apply to me following the Employment Period. |
| &nbsp;&nbsp;&nbsp;&nbsp; • If, at the time of termination of the Employment Period, I am employed in Washington, notwithstanding any other provision to the contrary in the Agreement (including Section 11 of the Agreement), nothing in the Agreement shall require me to adjudicate the enforceability of a noncompetition covenant outside of the State of Washington and the laws of the State of Washington shall govern the enforceability of the noncompetition covenant in the Agreement.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; • I acknowledge and understand that, during the Employment Period, restrictions under <u>Section 6(a)</u> of the Agreement are not intended to restrict, restrain, or prohibit an employee earning less than twice the applicable state minimum hourly wage from having an additional job, supplementing their income by working for another employer, working as an independent contractor, or being self-employed, as long as (i) such additional services to be offered by the employee do not raise issues of safety for the employee, coworkers, or the public, or interfere with the reasonable and normal scheduling expectations of the employer and (ii) such additional services to be offered by the employee shall not alter the employee's obligations as an employee of the Company Group under existing law, including the common law duty of loyalty and laws preventing conflicts of interest and any Company Group's policies addressing such obligations.<br>|

---

xiii

------

**Exhibit B** 

**<u>RELEASE OF CLAIMS</u>**

As used in this Release of Claims (this "***Release***"), the term "claims" will include all claims, covenants, warranties, promises, undertakings, actions, suits, causes of action, obligations, debts, accounts, attorneys' fees, judgments, losses, and liabilities, of whatsoever kind or nature, in law, equity or otherwise.

For and in consideration of the Severance Benefits (as defined in my Amended and Restated Employment Agreement, dated September ___, 2024, with Safepoint Holdings, Inc. (such corporation, the "***Company***" and such agreement, my "***Employment Agreement")),*** and other good and valuable consideration, I, Gustavo Fernandez, for and on behalf of myself and my heirs, administrators, executors and assigns, effective as of the date on which this release becomes effective pursuant to its terms, do fully and forever release, remise and discharge each member of the Company Group (including any co-employer of any member of the Company Group) and each of their successors and assigns, together with their respective current and former officers, directors, partners, members, shareholders (including any management company of a member or shareholder), employees and agents (collectively, and with the Company, the "***Company Parties")*** from any and all claims whatsoever up to the date I execute this Release which I had, may have had, or now have against the Company Parties, whether known or unknown, for or by reason of any matter, cause or thing whatsoever, including any claim arising out of or attributable to my employment or the termination of my employment with the Company or any member of the Company Group, whether for tort, breach of express or implied contract, intentional infliction of emotional distress, wrongful termination, unjust dismissal, violation of public policy, defamation, libel or slander, or under any federal, state, or local law dealing with discrimination, harassment or retaliation, and any other purported restriction on an employer's right to terminate the employment of employees. The release of claims in this Release includes, but is not limited to, all claims arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, as amended ("***ADEA***"), the Americans with Disabilities Act of 1990, the Civil Rights Act of 1991, the Family and Medical Leave Act of 1993, the Equal Pay Act of 1963, the Worker Adjustment and Retraining Notification Act of 1988 and the Employee Retirement Income Security Act of 1974 (excluding claims for accrued, vested benefits under any retirement or other employee benefit plan of the Company Parties (other than any severance or similar plan or policy)), each as may be amended from time to time, and all other federal, state, and local laws, the common law or constitution of any jurisdiction. I intend the release contained herein to be a general release of any and all claims to the fullest extent permissible by law and for the provisions regarding the release of claims against the Company Parties to be construed as broadly as possible, and hereby incorporate in this release similar federal, state or other laws, all of which I also hereby expressly waive.

I understand and agree that claims or facts in addition to or different from those which are now known or believed by me to exist may hereafter be discovered, but it is my intention to fully and forever release, remise and discharge all claims which I had, may have had, or now have against the Company Parties, whether known or unknown, suspected or unsuspected, asserted or unasserted, contingent or noncontingent, without regard to the subsequent discovery or existence of such additional or different facts. Without limiting the foregoing, by signing this Release, I expressly waive and release any provision of law that purports to limit the scope of a general release.

------

I acknowledge and agree that as of the date I execute this Release, I have no knowledge of any facts or circumstances that give rise or could give rise to any claims under any of the laws listed in the preceding paragraphs.

Notwithstanding any provision of this Release to the contrary, by executing this Release, I am not releasing any claims relating to: (i) my rights under Section 8 of my Employment Agreement, (ii) my right to accrued, vested benefits due to terminated employees under any employee benefit plan of the Company or any other member of the Company Group in which I participated (excluding any severance or similar plan or policy), in accordance with the terms thereof (including my right to elect COBRA continuation coverage); (iii) any claims that cannot be waived by law or that arise after the date you execute this Agreement; or (iv) my right to indemnification, advancement and reimbursement of legal fees and expenses, and directors and officers liability insurance, as provided by, and in accordance with the terms of, applicable law, the Company's by-laws or otherwise.

**Notwithstanding any provision of this Release to the contrary, nothing herein or in any Company policy or agreement prevents me, without notifying the Company, from (i) speaking with law enforcement, my attorney, the U.S. Equal Employment Opportunity Commission, any state or local division of human rights, or fair employment agency; (ii) filing a charge or complaint with, participating in an investigation or proceeding conducted by, or reporting possible violations of law or regulation to any government agency; (iii) participating in a whistleblower program administered by the U.S. Securities and Exchange Commission or any other government agency; (iv) truthfully testifying in a legal proceeding or responding to or complying with a subpoena, court order, or other legal process; (v) filing or disclosing any facts necessary to receive unemployment insurance, Medicaid, or other public benefits to which I may be entitled; or (vi) exercising any rights I may have to engage in protected concerted activity under any applicable labor laws, including the National Labor Relations Act (for information regarding employee rights under the National Labor Relations Act, all of which are preserved under this Release, see <u>https://www.nlrb.gov/about-nlrb/rights-we-protect/your-rights/employee-rights)</u>; *provided, however,* in each case, I agree to forgo any monetary benefit from the filing of a charge or complaint with a government agency except pursuant to a whistleblower program or where my right to receive such a monetary benefit is otherwise not waivable by law.** 

I acknowledge and agree that as of the date I execute this Release, I have reported all accidents, injuries or illnesses relating to or arising from my employment with the Company or the Company Group and that I have not suffered any on-the-job injury or illness for which I have not yet filed a claim.

By signing below, I represent and warrant to the Company that (i) prior to the date I execute this Release, I have provided the Company with written disclosure of any unethical or illegal behavior and any material violations of the Company's code of ethics or other material policy, in each case, that I observed, suspected or became aware of during the course of my employment or, if no such written disclosure was provided, that I have not observed, suspected or become aware of any such behavior or violations and (ii) I have complied with all laws and Company policies in respect of my employment with the Company.

------

I expressly acknowledge and agree that I:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Am able to read the language, and understand the meaning and effect, of this Release;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Have no physical or mental impairment of any kind that has interfered with my ability to read and understand the
meaning of this Release or its terms, and that I am not acting under the influence of any medication, drug, or chemical of any type in entering into this Release;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Am specifically agreeing to the terms of the release contained in this Release because the Company has agreed to
pay me the Severance Benefits in consideration for my agreement to accept it in full settlement of all possible claims I might have or ever had against the Company Parties, and because of my execution of this Release;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Acknowledge that, but for my execution of this Release, I would not be entitled to the Severance Benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Had or could have had [twenty-one (21)][forty-five (45)]<sup>1</sup> calendar days from the date of my termination of employment (the "  ***Release Expiration Date")*** to review and consider this Release, and that if I execute this
Release prior to the Release Expiration Date, I have voluntarily and knowingly waived the remainder of the review period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Understand that, by entering into this Release, I do not waive rights or claims under ADEA that may arise after
the date I execute this Release;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Have not relied upon any representation or statement not set forth in this Release or my Employment Agreement
made by the Company Group or any of its representatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Am hereby advised to consult with my attorney regarding the terms and effect of this Release; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Have signed this Release knowingly and voluntarily.

I represent and warrant that I have not previously filed, and to the maximum extent permitted by law, I agree that I will not file, a complaint, charge or lawsuit against any of the Company Parties regarding any of the claims released herein. If, notwithstanding this representation and warranty, I have filed or file such a complaint, charge or lawsuit, I agree that I shall cause such complaint, charge or lawsuit to be dismissed with prejudice and shall pay any and all costs required in obtaining dismissal of such complaint, charge or lawsuit, including without limitation the attorneys' fees of any of the Company Parties against whom I have filed such a complaint, charge or lawsuit.

<sup>1</sup> To be selected based on whether applicable termination was "in connection with an exit incentive or other employment termination program" (as such phrase is defined in the Age Discrimination in Employment Act of 1967).

------

I hereby agree to waive any and all claims to re-employment with the Company or any of its direct or indirect parent(s) or subsidiaries and affirmatively agree not to seek further employment with the Company or any of its direct or indirect parent(s) or subsidiaries. I acknowledge that if I re-apply for or seek employment with the Company or any of its direct or indirect parent(s) or subsidiaries, the refusal to hire me based on this provision will provide a complete defense to any claims arising from my attempt to apply for employment.

Notwithstanding anything contained herein to the contrary, this Release will not become effective or enforceable for a period of seven (7) calendar days following the date of my execution of this Release (the "***Revocation Period"),*** during which time I may revoke my acceptance of this Release by notifying the Company [and the Board of Directors of the Company], in writing, delivered to [CONTACT] (the "***Company Representative"),*** [TITLE], [ADDRESS], by email ([EMAIL ADDRESS]), or by a recognized national overnight courier service [or by other electronic copies (complying with the U.S. federal ESIGN Act of 2000 (e.*g.*, DocuSign)). To be effective, such revocation must be received by the Company Representative no later than 11:59 p.m. Eastern Time on the seventh (7<sup>th</sup>) calendar day following the execution of this Release. Provided that the Release is executed prior to the Release Expiration Date and I do not revoke it during the Revocation Period, the date on which this Release is executed and delivered to the Company Representative shall be its effective date. In the event that I fail to execute and deliver this Release prior to the Release Expiration Date or, if I revoke this Release during the Revocation Period, this Release will be null and void and of no effect, and neither the me nor the Company nor any of the Company Parties will have any obligations to pay me the Severance Benefits.

The provisions of this Release shall be binding upon my heirs, executors, administrators, legal personal representatives and assigns. If any provision of this Release shall be held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect. The illegality or unenforceability of such provision, however, shall have no effect upon and shall not impair the enforceability of any other provision of this Release. I acknowledge and agree that each of the Company Parties shall be a third-party beneficiary to the releases set forth in this Release, with full rights to enforce this Release and the matters documented herein.

EXCEPT WHERE PREEMPTED BY FEDERAL LAW, THE VALIDITY, INTERPRETATION, CONSTRUCTION, AND PERFORMANCE OF THIS RELEASE IS GOVERNED BY AND IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF FLORIDA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS RULES. ANY DISPUTE OR CLAIM ARISING OUT OF OR RELATING TO THIS RELEASE OR CLAIM OF BREACH HEREOF SHALL BE BROUGHT EXCLUSIVELY IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA, TO THE EXTENT FEDERAL JURISDICTION EXISTS, AND IN ANY COURT SITTING IN FLORIDA, BUT ONLY IN THE EVENT FEDERAL JURISDICTION DOES NOT EXIST, AND ANY APPLICABLE APPELLATE COURTS. BY EXECUTION OF THIS RELEASE, I CONSENT TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS, AND WAIVE ANY RIGHT TO CHALLENGE JURISDICTION OR VENUE IN SUCH COURT WITH REGARD TO ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS RELEASE. FURTHER, I HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN CONNECTION WITH ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS RELEASE.

------

Capitalized terms used, but not defined herein, shall have the meanings ascribed to such terms in my Employment Agreement.

\* \* \*

I, Gustavo Fernandez, have executed this Release of Claims on the date set forth below:

---

| | |
|:---|:---|
| /s/ Gustavo Fernandez | /s/ Gustavo Fernandez |
| Gustavo Fernandez | Gustavo Fernandez |
| Date: | [To Be Executed Following |
|  | Termination of Employment] |

---

## Exhibit 10.17

**Exhibit 10.17**![LOGO](g73198g0316195113502.jpg)

---

| | |
|:---|:---|
| **Grantee:** | [Name] |
| **Date of Grant:** | [Date] |
| **Grant Amount:** | $[•] |
| **Vesting Commencement Date:** | [Date] |
| **Vesting Schedule:** |  |

---

Provided that Grantee has not undergone a termination of their employment (a "Termination") with Safepoint MGA, LLC (the "Company") or any wholly owned subsidiaries of Safepoint Holdings, Inc. (the "Company") prior to such date, thirty three point three percent (33.3%) of the grant amount hereunder will vest on [First Anniversary of the Vesting Commencement Date]; thirty three point three percent (33.3%) of the grant amount hereunder will vest on [Second Anniversary of the Vesting Commencement Date]; and thirty three point four percent (33.4%) of the grant amount hereunder will vest on [Third Anniversary of the Vesting Commencement Date].

Payments will be made within 30 days of each vesting date and will be remitted via payroll and subject to standard taxation and deductions.

Grantee must be a current employee that has not Terminated (other than due to death) on each vesting date in order to be eligible to vest. The grant will <u>not</u> be prorated for partial terms. For example, if Grantee terminates on [Date Immediately Prior to Second Anniversary of the Vesting Commencement Date], they will not be eligible to vest on [Second Anniversary of the Vesting Commencement Date], and will not be due the 33.3% that vests on [Second Anniversary of the Vesting Commencement Date], or the 33.4% that vests on [Third Anniversary of the Vesting Commencement Date].

If the Grantee undergoes a Termination within the vesting period due to the Grantee's death, Grantee will immediately vest any unvested portion of this grant and be paid within 30 days. Acknowledging this letter does not constitute an employment agreement and does not change the Grantee's at-will employment status.

Authorized Signature: Acknowledged:

## Exhibit 10.18

**Exhibit 10.18**![LOGO](g73198g01f02.jpg)

**951 Government Street, Suite B \| Mobile, AL 36604 \| Phone: 855-509-3432 \| www.cajunuw.com** 

**Certificate of Attorney-in-Fact of Cajun Underwriters Reciprocal Exchange** 

I, Jennifer Cotugno, the duly elected Secretary of Cajun Underwriters Risk Managers, LLC, as the attorney-in-fact of Cajun Underwriters Reciprocal Exchange, hereby certify that a true and correct copy of the Power of Attorney and Subscription Agreement are attached hereto and incorporated herein by reference.

---

| |
|:---|
| ![LOGO](g73198g01f03.jpg) <br>|
| Jennifer Cotugno |

---

Dated: 06/27/2025

------

**SUMMARY OF THE SUBSCRIPTION AGREEMENT** 

**AND POWER OF ATTORNEY OF** 

**CAJUN UNDERWRITERS RECIPROCAL EXCHANGE** 

Cajun Underwriters Reciprocal Exchange, a reciprocal insurance exchange organized under the laws of the State of Louisiana (the "<u>Exchange</u>"), existing for the benefit of the Subscribers of the Exchange (the "<u>Subscribers</u>"). As a Reciprocal Insurance Exchange, the Exchange is an unincorporated association of subscribers operating through the contractual arrangements set forth in that certain Subscription Agreement and Power of Attorney (the "<u>Subscription Agreement</u>"), which is attached hereto and which all Subscribers must sign. Under Louisiana law and pursuant to this Subscription Agreement, the Exchange and its Subscribers appoint a third-party, known as an "Attorney-in-Fact," to manage and administer the day-to-day business operations and affairs of the Exchange on behalf of the Subscribers.

The attached Subscription Agreement provides the terms of your relationship with the Exchange and appoints Cajun Underwriters Risk Management, LLC, a Delaware Limited Liability Company (the "<u>AIF</u>"), as the Attorney-in-Fact of the Exchange. Please carefully review the attached Subscription Agreement and sign below to acknowledge your intention to be legally bound by the terms and conditions of this Subscription Agreement.

This Summary and Cover Letter (the "<u>Cover Letter</u>") provides an overview of certain key provisions of this Subscription Agreement, as follows:

**<u>Non-Assessable Policies</u>**: Section 22:175 of the Louisiana Insurance Code provides, in pertinent part, that a domestic reciprocal insurer may issue policies without contingent liability of the Subscriber for assessment upon approval of the Commissioner of Insurance and upon compliance with the following requirements: (i) The Exchange shall have and at all times maintain a surplus as determined from its last annual statement, which is at least equal to the minimum capital and the paid in surplus required on organization of a domestic stock insurer organized under the provisions of the Louisiana Insurance Code; and (ii) the Exchange shall have submitted a copy of its proposed non-assessable policy or policies for approval of the Commissioner of Insurance and shall have obtained his approval thereof states that "an exchange shall maintain at all times an unencumbered surplus over and above all liabilities that is at least equal to the minimum capital stock and surplus required of a stock insurance company engaged in the same kinds of business."Accordingly, your liability as a Subscriber of the Exchange is limited to the premium contribution specified in your policy only if the unencumbered surplus of the Exchange is at least equal to the minimum capital stock and minimum surplus required of a stock property and casualty company.

**<u>Surplus Contributions</u>**: Along with your policy premium, you will pay a surplus contribution to the Exchange, which will help lower the cost of capital necessary for the Exchange to operate and will allow the Exchange to offer more competitively priced insurance to its Subscribers. This contribution will be collected along with your policy premium and is set at ten percent (10%) of total annual premium. For any given year, the AIF will have the discretion to lower the required surplus contribution, based on the capital needs of the Exchange.

------

**<u>Management of the Exchange</u>**: You will be appointing and designating the AIF to be the Attorney-in-Fact for the Exchange. As the Attorney-in-Fact, the AIF will manage all of the insurance operations of the Exchange on behalf of you and all of the other Subscribers.

**<u>Subscribers' Advisory Committee</u>**: The Exchange has established a Subscribers' Advisory Committee ("<u>SAC</u>") for the benefit of its Subscribers. The SAC, an advisory body selected by the AIF, will oversee the finances and operations of the Exchange to assure conformity with the Subscription Agreement and to represent the rights of the Subscribers under the Subscription Agreement. The SAC will provide Subscribers with an avenue for expressing their thoughts in connection with the operation of the Exchange. The Exchange will indemnify SAC members for, and you will agree not to sue them in connection with, their service on the SAC.

**<u>Management Compensation</u>**: In exchange for services rendered, the Exchange will compensate the AIF as follows:

(i) underwriting and marketing management services provided to the Exchange, the AIF will receive as compensation an amount equal to seventeen percent (17%) of the annual gross premium written by the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) claims management services for non-catastrophic claims pursuant to the attached Claims Service Fee Schedule, plus an amount equal to 3% of the annual gross premium written by the Exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) claims management services for catastrophic claims pursuant to a Claims Service Fee Schedule agreed upon by the AIF.

The AIF is authorized to utilize the funds of the Exchange to pay the expenses of the Exchange, including the cost of any director and officer liability insurance coverages for the AIF and members of the SAC. These compensation arrangements are governed by the Attorney-in-Fact Agreement.

**<u>Subscriber Savings Accounts</u>**: The Exchange conducts its operations for the benefit of its Subscribers and, as a result, it may, in its discretion, allocate underwriting profits or surplus growth to its Subscribers. To this end, the AIF shall establish Subscriber Savings Accounts ("<u>SSAs</u>") for each active Subscriber of the Exchange. SSAs are notional accounts held for active Subscribers. To the extent that the AIF determines to return to the Subscribers any underwriting profits or any surplus growth in years without underwriting profit, such amounts will be allocated to Subscribers' SSAs. Any such distributions will be subject to the performance of the Exchange, its ability to pay claims, and its overall financial strength. Funds may be allocated to SSAs subject to the prior written approval of the Louisiana Department of Insurance.

**<u>Arbitration</u>:** You, the Exchange, and the AIF agree that that any and all disputes or differences, including, but not limited to, disputes concerning the formation and/or validity of the Subscription Agreement or disputes concerning coverage under the Subscription Agreement, shall be submitted to arbitration before a panel of three arbitrators, each of whom shall be an active or retired disinterested officer of a property and casualty insurance company. One arbitrator shall be chosen

------

by the Subscriber, one arbitrator shall be chosen by the AIF on behalf of the Exchange, and the third arbitrator will be chosen by the other two arbitrators.

**<u>Assignment of Benefits</u>:** You understand and agree that you may not, without the prior written consent of the AIF, assign Subscriber's rights or obligations under this Subscription Agreement, in whole or in part, either voluntarily or by operation of law, and any attempt to make such an assignment in violation of this agreement shall be a default of the Subscription Agreement and such assignment shall be null and void and of no force or effect.

The above is only a summary of certain of the provisions of the Subscription Agreement and does not purport to describe all of the terms of the Subscription Agreement. The summary is qualified in its entirety by reference to the complete text of the Subscription Agreement, which is attached hereto. You are urged to carefully read the Subscription Agreement in its entirety because it is the primary legal document that governs your contractual relationship with the Exchange, the AIF, and the SAC.

By signing below you agree, among other things, to become a Subscriber of the Exchange, to appoint the AIF as the Attorney-in-Fact of the Exchange and to be legally bound by the terms and conditions of the Subscription Agreement.

Due to the nature of the structure of the Exchange, your insurance policy cannot become effective without a signed Subscription Agreement. If you fail to sign this Cover Letter or the Subscription Agreement, the Exchange reserves the right to terminate your coverage.

**Signature and Acknowledgment of Receipt.** 

---

| | |
|:---|:---|
| By: |  |
| Name: | [Subscriber] |
| Date: | [Date] |

---

---

| |
|:---|
| ***Receipt Acknowledged***: |
| **Cajun Underwriters Reciprocal Exchange** |
| Signature: |
| Name: |
| Title: |
| Date: |

---

------

**SUBSCRIPTION AGREEMENT AND POWER OF ATTORNEY OF** 

**CAJUN UNDERWRITERS RECIPROCAL EXCHANGE** 

The undersigned subscriber (the "<u>Subscriber</u>") to Cajun Underwriters Reciprocal Exchange, a Reciprocal Insurance Exchange formed under the laws of the State of Louisiana (the "<u>Exchange</u>"), by signing this Subscription Agreement and Power of Attorney (the "<u>Subscription Agreement</u>") and the Summary and Cover Letter (the "<u>Cover Letter</u>") attached hereto agrees with all other Subscribers to the Exchange (the "<u>Subscribers</u>"), and with Cajun Underwriters Risk Management, LLC, a Delaware Limited Liability Company (the "<u>AIF</u>"), as follows:

**1. Power of Attorney.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1 Designation**. The Subscriber hereby appoints the AIF as the Attorney-in-Fact for the Exchange with the express power, authority, and permission to effectuate and conduct the lawful business affairs of the Exchange. This authority includes the ability to carry out all customary functions of a reciprocal insurance company, including but not limited to the following responsibilities: (a) exchange, with other Subscribers to the Exchange, any and all kinds of reciprocal insurance contracts, which the Exchange is authorized by law to write; (b) issue, exchange, renew, non-renew, cancel or modify insurance policies; (c) act as intermediary to obtain reinsurance; (d) appear for, compromise, prosecute, adjust, settle, defend, litigate, appeal, and pay claims or losses under the insurance policies of Subscribers; (e) accept service of process on behalf of the Exchange in actions against the Exchange upon contracts exchanged by Subscribers of the Exchange; (f) authorize the Office of the Secretary of State of Louisiana to receive service of process in actions against the Exchange upon contracts exchanged by Subscribers of the Exchange; (g) open accounts and borrow money in the name of the Exchange; (h) hire and compensate personnel and agents; (i) collect premiums and invest and reinvest funds; (j) receive notices and proof of loss; (k) administer subscriber accounts, including their respective Subscriber Savings Accounts, if applicable, including allocations thereto and distributions therefrom; and (l) to conduct the business and affairs of the Exchange, as set forth herein, in the organizational documents of the Exchange, and that certain Attorney-in-Fact Agreement between the Exchange and the AIF (the "<u>Attorney-in-Fact Agreement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2 Limited Power of Attorney**. The powers, rights, obligations, and responsibilities of the AIF are limited to those enumerated and described in this Subscription Agreement and in the Attorney-in-Fact Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3 Offices of Attorney-In-Fact**. The offices of the AIF will be the same as the principal office of the Exchange, located at 3321 Hessmer Ave, Suite 300, Metairie, Louisiana 70002. The offices of the Exchange or the AIF may be changed in compliance with the requirements of the laws of the State of Louisiana and the Subscriber will be promptly notified of any such change of office location and when any such change shall be effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4 Attorney-in-Fact Agreement**. The Attorney-in-Fact Agreement between the Exchange and the AIF, which establishes the AIF as the Attorney-in-Fact for the Exchange, is incorporated herein by reference.

------

**2. Compensation of the AIF**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 Fees for Services**. In consideration for the services provided to the Exchange and under the terms of the Attorney-in-Fact Agreement, the AIF will be compensated for underwriting and marketing management services provided to the Exchange. The AIF will receive as compensation an amount equal to seventeen percent (17%) of the annual gross premium written by the Exchange. In addition, the Exchange will compensate the AIF for claims management services for non-catastrophic claims pursuant to the attached Claims Service Fee Schedule, plus an amount equal to 3% of the annual gross premium written by the Exchange. Compensation for catastrophic claims are also set forth in the attached Claims Service Fee Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 Adjustments and Modifications**. The AIF's total compensation, as set forth in greater detail in the Attorney-in-Fact Agreement, may be revised or modified at any time, subject to the prior written approval of the Louisiana Department of Insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3. Waiver of Fees.** At the sole discretion of the AIF, the AIF may waive fees from the Exchange as a method to build or maintain surplus in the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4 Expenses**. The Exchange will be liable, and will reimburse the AIF on demand, for losses, loss adjustment expenses, investment expenses, and other expenses attributable to the operations of the Exchange.

**3. Exchange of Policies**: The Subscriber hereby offers and agrees to exchange policies with the other Subscribers of the Exchange. The Subscriber understands and agrees that the reciprocal insurance contracts to be exchanged hereunder are non-assessable, as provided for in Section 22:175 of the Louisiana Insurance Code, and consistent with Section 16 of this Subscription Agreement, thereby limiting the liability of the Subscriber to the Exchange to the policy premium and surplus contribution which are provided for under Section 5 of this Subscription Agreement.

**4. Subscribers' Advisory Committee**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1 Formation and Role of SAC**. The Subscriber understands that the Exchange and the AIF have established a Subscribers' Advisory Committee (the "<u>SAC</u>") to exercise any rights reserved to Subscribers and assist the AIF in supervising the operations of the Exchange. The duties and powers of the SAC are contained within the Subscribers' Committee Charter ("<u>SAC Charter</u>"). The Subscriber understands and agrees that the powers of the SAC are limited to those enumerated in the SAC Charter and in this Subscription Agreement. Members of the SAC are selected annually by the SAC and the Subscriber agrees that the SAC shall (a) have only the enumerated responsibilities specifically assigned to it, (b) exercise the rights of all Subscribers of the Exchange, and (c) consist of at least two-thirds current insured Subscribers of the Exchange who are independent of the AIF. The Subscriber understands and agrees that the Subscriber is not entitled to directly participate in the management of the Exchange unless such Subscriber is appointed to serve as a member of the SAC.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 Supervisory Powers of SAC**. The Subscriber agrees that the SAC will supervise the finances and operations of the Exchange to the extent as is necessary to assure conformity with this Subscription Agreement and the Attorney-in-Fact Agreement. The SAC also shall procure, at the expense of the Exchange, an audit of the accounts and records of the Exchange and the AIF.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3 Indemnification of SAC Members**. To the extent permitted by law, the Subscriber agrees that the Exchange shall defend and hold harmless each and every member of the SAC from and against any liability that may arise from, or is in any way connected with, such member's participation on the SAC. This indemnification provision does not apply where the member acted with criminal intent or reckless disregard in the performance of his or her duties as a member of the SAC. The Subscriber also agrees that such Subscriber will not sue or name in any action or affirmative defense any SAC member or the SAC for actions arising from, or is in any way connected with, such member's participation on the SAC.

**5. Surplus Contributions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1 Policy Premium and Surplus Contributions**. The Subscriber agrees to pay his or her policy premium when due and, in addition, to make a contribution to the surplus of the Exchange in the amounts and during the period of time set forth in 5.2 below (the "<u>Surplus Contribution</u>"). The Subscriber understands and agrees that the amounts paid as Surplus Contribution will be credited as policyholder surplus for the benefit and protection of all of the Subscribers and that any such Surplus Contribution made to the Exchange is not to be treated as premium for insurance coverage provided by the Exchange to any Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2 Timing and Amounts of Surplus Contributions**. The Surplus Contribution is payable to the Exchange on or prior to the initial effective date of the Subscriber's coverage, and subsequently due annually at the same time as the payment of the policy premium is due. The Surplus Contribution shall be ten percent (10%) of total annual insurance premiums (and may be charged at a lower rate, or not at all, in the discretion of the AIF).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3 Return of Surplus Contributions**. The Subscriber understands and agrees that the amounts paid as a Surplus Contribution will be credited as policyholder surplus for the benefit and protection of all the Subscribers of the Exchange, are not premiums for insurance, and may only be returned in limited circumstances. The Subscriber further understands and agrees that the ability of the Exchange to returns Surplus Contributions to its Subscribers is subject to the provisions of this Subscription Agreement and is limited by law. Upon the issuance of an insurance policy, or other confirmation of coverage by the Exchange, the return of Surplus Contribution can occur only with the approval of the AIF and the Louisiana Department of Insurance, and as set forth in this Subscription Agreement. In the event of a mid-term policy cancellation, the AIF will return any Surplus Contribution (without interest) applicable to the cancelled policy term, pro-rated based on the fraction of the policy term that has elapsed and subject to the restrictions set forth in Section 6 hereof and any applicable law. All other Surplus Contribution amounts, including those made for previous policy terms, will be retained by the Exchange for the benefit of all remaining Subscribers. The Subscriber understands and agrees that any other return of Surplus Contributions will be subject to the approval of the AIF, the Louisiana Department of Insurance, and the restrictions set forth in Section 6 hereof.

------

**6. Subscriber Savings Accounts**. The AIF intends to operate the Exchange for the benefit of all of its Subscribers and will maintain separate individual Subscriber Savings Accounts ("<u>SSAs</u>") for each subscriber. In years in which the Exchange achieves operating profit and surplus growth, after accounting for paid losses, loss reserves and operating and policy acquisition expenses, the AIF, in its discretion, may credit your SSA with a portion of the amount of the Exchange's growth in surplus for a fiscal year. Any such credit will be made pro rata, based on the Subscriber's earned premium for such year. The Subscriber understands and agrees that (a) any contributions to be made to a Subscriber's SSA are based on the Exchange's overall results, not the results of any individual subscriber; and (b) any and all such funds allocated to the Subscriber would be considered part of the Exchange's surplus and the AIF would be authorized to use any and all such funds to pay any unsatisfied obligations of the Exchange. As set forth in this Subscription Agreement, the Subscriber may be eligible for a distribution from its SSA (y) at such time when the Subscriber is no longer insured by the Exchange, or (z) at such other times, in determined by the AIF in its discretion, subject to the approval of the SAC. In order to avoid any impairment to the surplus of the Exchange, the AIF, subject to the approval of the SAC, retains the right to limit the distribution from the SSAs to Subscribers whose coverage has been terminated. Furthermore, any payment or allocation to an SSA would be subject to the approval of the Louisiana Department of Insurance.

**7. Limitations on Distributions of Surplus Contributions and SSAs.** No payment of a returned Surplus Contribution or a distribution of SSA funds (together, a "<u>Surplus Distribution</u>") will be made if such payment could risk the financial impairment of the Exchange. Surplus Distribution payments may be delayed if, as determined by the AIF, the total amount of such payments to all applicable Subscribers to the Exchange, within the preceding 12 months, would exceed the lesser of: (a) ten percent (10%) of the total surplus of the Exchange calculated as of the immediately preceding December 31, or (b) the total net income of the Exchange before savings allocations and federal income taxes for the calendar year ended as of the immediately preceding December 31. If payment to any subscriber would be delayed pursuant to the requirements set forth in this Section 7, the total amount which may be paid to all Subscribers will be paid pro rata to each such subscriber who meets the conditions to receive a Surplus Distribution on an equitable basis as determined by the AIF in its sole and absolute discretion and as allowed by applicable law. Any payments delayed pursuant to the requirements set forth in this Section 7 will be paid as soon as possible when payment can be made in compliance with this Section 7 and the requirements of the Exchange. If this Section 7 is found to conflict with other terms of this Subscription Agreement, this Section 7 supersedes all other terms and conditions of this Subscription Agreement.

**8. Advance of Money by Attorney-in-Fact**. The Subscriber understands and agrees that the AIF may advance to the Exchange any amount of money necessary to conduct the business of the Exchange, including any amount necessary to enable the Exchange to comply with a legal requirement. Subject to the approval of the Louisiana Department of Insurance, the advanced amount and any agreed interest on that amount, not exceeding two percent (2%) a year (should the AIF decide to impose such interest):

(i) is payable only from the surplus of the Exchange remaining after providing for all reserves, other liabilities, and required surplus; and (ii) may not otherwise be a liability or claim against the Exchange or any of the assets of the Exchange. The Subscriber further understands and agrees that a commission, promotion expense, or other bonus may not be paid in connection with the advance of money to the Exchange and that the amount of each advance must be reported in the annual report of the Exchange.

------

**9. Return of Surplus upon Liquidation**. The Subscriber understands and agrees that upon the liquidation of the Exchange, the assets of the Exchange remaining after discharge of its indebtedness and policy obligations, the return of any contributions of the AIF or other persons to its surplus made, and the return of any unused premium, savings, or credits then standing on SSAs, shall be distributed to its Subscribers who were such within the 12 months prior to the last termination of its certificate of authority, according to such reasonable formula as the Louisiana Department of Insurance approves.

**10. Rejection of Coverage.** The Subscriber understands and agrees that the Exchange has an obligation to its Subscribers to maintain strict eligibility and underwriting requirements. The Exchange has the right to reject any application for insurance, including this Subscription Agreement, and the offer of payment of premium and Surplus Contribution. If such a rejection of coverage occurs after receipt of the Surplus Contribution by the Exchange, the Surplus Contribution will be returned to the Subscriber, without payment of interest. An existing subscriber applying for additional lines of coverage is not guaranteed acceptance for those new lines of coverage.

**11. Termination**: This Subscription Agreement may be terminated at any time, by the Subscriber or the AIF, by terminating all insurance policies issued to the Subscriber, subject to applicable policy provisions and applicable law. Upon the termination of all insurance policies issued to the Subscriber, subject to the approval of the Louisiana Department of Insurance and as otherwise set forth in this Subscription Agreement, the balance remaining in your SSA or eligible Surplus Contribution, after allocation of expenses and claims, will be returned to the Subscriber within six months thereafter. In the event that that the Subscriber should cease to maintain insurance with the Exchange, regardless of whether such insurance is cancelled, rescinded or non-renewed for any reason, you will lose all rights as a subscriber to the Exchange.

**12. Acknowledgement of Receipt of Documents.** The Subscriber hereby acknowledges and confirms receipt of, and represents and warrants to the Exchange and the AIF, that the Subscriber has read and fully understands, the SAC Charter and the Attorney-in-Fact Agreement prior to executing this Subscription Agreement.

**13. Binding Agreement.** This Subscription Agreement will be accepted by the AIF upon receipt of the Subscriber's executed signature on the cover page. The Subscriber agrees that this Subscription Agreement, including the power of attorney set forth herein, will apply to all insurance policies for which the Subscriber has applied, or will apply, with the Exchange. The subscriber further agrees and understands that upon acceptance of this Subscription Agreement by the AIF, the terms and conditions of each of this Subscription Agreement, the SAC Charter, and the Attorney-in-Fact Agreement will be valid and binding upon the AIF, the Subscriber, and each of the parties' respective personal representatives, administrators, successors, and assigns, as indicated by the Subscriber's signature on the cover page.

------

**14. Arbitration.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As a condition precedent to any right of action arising under or out of this Subscription Agreement, the Subscriber, the Exchange, and the AIF (each being individually referred to herein as a "<u>Party</u>," or collectively as the "<u>Parties</u>") agree that that any and all disputes or differences, including, but not limited to, disputes concerning the formation and/or validity of this Subscription Agreement or disputes concerning coverage under this Subscription Agreement, shall be submitted to arbitration before a panel of three arbitrators, each of whom shall be an active or retired disinterested officer of a property and casualty insurance company. One arbitrator shall be chosen by the Subscriber, one arbitrator shall be chosen by the AIF on behalf of the Exchange, and the third arbitrator will be chosen by the other two arbitrators. In the event any Party does not appoint an arbitrator within 60 days after the other Party requests it to do so, or if the two arbitrators selected by the Exchange and the AIF fail to agree upon a third arbitrator within 30 days of the appointment of the second arbitrator to be appointed, the arbitrator or arbitrators, as the case may be, will, upon the application of any Party, be appointed by the American Arbitration Association and the arbitrators will proceed. The decision of the majority of the arbitrators will be final and binding on all Parties. Each Party will bear the expense of its own arbitrator and one- half of the expenses of the third arbitrator and of the arbitration. Arbitration taking place under this section will take place in Louisiana unless otherwise agreed by the Parties in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any action, litigation, suit or proceeding arising out of or relating to this Subscription Agreement or any transaction contemplated hereby, including the enforceability of the provisions of paragraph 14(a) hereof, shall be brought solely in federal or state courts of competent jurisdiction sitting in the courts located in the Exchange, and each of the Parties hereto hereby irrevocably consents and submits to the exclusive jurisdiction of such courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any dispute or difference of opinion arising under this Subscription Agreement, the Exchange and the AIF must fulfill all obligations under the reciprocal insurance contracts exchanged by the Subscribers.

**15. Assignment of Benefits.** Subscriber may not, without the prior written consent of the SAC, assign Subscriber's rights or obligations under this Subscription Agreement, in whole or in part, either voluntarily or by operation of law, and any attempt to make such an assignment in violation of this Section 15 shall be a default of this Subscription Agreement and such assignment shall be null and void and of no force or effect. Subscriber understands that any such default of this Subscription Agreement by Subscriber as a result of an assignment made in violation of this Section 15 may constitute grounds for expulsion from the Exchange, at the sole discretion of the SAC.

**16. Non-Assessable Policies.** Section 22:175 of the Louisiana Insurance Code provides, in pertinent part, that a domestic reciprocal insurer may issue policies without contingent liability of the Subscriber for assessment upon approval of the Commissioner of Insurance and upon compliance with the following requirements: (i) The Exchange shall have and at all times maintain a surplus as determined from its last annual statement, which is at least equal to the minimum capital and the paid in surplus required on organization of a domestic stock insurer organized under the provisions of the Louisiana Insurance Code; and (ii) the Exchange shall have submitted a copy of its proposed non-assessable policy or policies for approval of the Commissioner of Insurance

------

and shall have obtained his approval thereof states that "an exchange shall maintain at all times an unencumbered surplus over and above all liabilities that is at least equal to the minimum capital stock and surplus required of a stock insurance company engaged in the same kinds of business." Accordingly, your liability as a Subscriber of the Exchange is limited to the premium contribution specified in your policy only if the unencumbered surplus of the Exchange is at least equal to the minimum capital stock and minimum surplus required of a stock property and casualty company.

**17. General Provisions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.1 Governing Law**. This Subscription Agreement and all matters relating to its validity, interpretation, performance and enforcement shall be governed by and construed in accordance with the substantive laws of the State of Louisiana, without giving effect to the principles of the conflict of laws or the rules thereof that might require the application of the laws of another jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.2 Limitation of Actions**. Absent a finding of criminal or willful misconduct or recklessness and except for legal actions that may arise directly from the Subscriber's insurance policy(ies) or legal actions to enforce this contract, the Subscriber agrees that the Exchange will not be sued or named in any action or affirmative defense by the Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.3 Rules of Construction**. When a reference is made in this Subscription Agreement to a Section or subsection, such reference shall be to a Section or subsection of this Subscription Agreement unless otherwise indicated. Any capitalized terms used in any attachment to this Subscription Agreement but not otherwise defined therein shall have the meanings as defined in this Subscription Agreement.

**18. Signature and Acknowledgment of Receipt.** 

---

| | |
|:---|:---|
| By: |  |
| Name: | [Subscriber] |
| Date: | [Date] |

---

---

| |
|:---|
| ***Receipt Acknowledged***: |
| **Cajun Underwriters Reciprocal Exchange** |
| Signature: |
| Name: |
| Title: |
| Date: |

---

## Exhibit 10.19

**Exhibit 10.19** 

**SUMMARY OF THE SUBSCRIPTION AGREEMENT** 

**AND POWER OF ATTORNEY OF** 

**MANATEE INSURANCE EXCHANGE** 

Manatee Insurance Exchange, a reciprocal insurer organized under the laws of the State of Florida (the "<u>Exchange</u>"), existing for the benefit of the Subscribers of the Exchange (the "<u>Subscribers</u>"). As a Reciprocal Insurance Exchange, the Exchange is an unincorporated association of subscribers operating through the contractual arrangements set forth in that certain Subscription Agreement and Power of Attorney (the "<u>Subscription Agreement</u>"), which is attached hereto and which all Subscribers must sign. Under Florida law and pursuant to this Subscription Agreement, the Exchange and its Subscribers appoint a third-party, known as an "Attorney-in-Fact," to manage and administer the day-to-day business operations and affairs of the Exchange on behalf of the Subscribers.

The attached Subscription Agreement provides the terms of your relationship with the Exchange and appoints Manatee Risk Management LLC, a Florida Limited Liability Company (the "AIF"), as the Attorney-in-Fact of the Exchange. Please carefully review the attached Subscription Agreement and sign below to acknowledge your intention to be legally bound by the terms and conditions of this Subscription Agreement.

This Summary and Cover Letter (the "<u>Cover Letter</u>") provides an overview of certain key provisions of this Subscription Agreement, as follows:

**<u>Non-Assessable Policies</u>**: Section 629.201 of the Florida Insurance Code provides, in pertinent part, that a domestic reciprocal insurer may issue policies without contingent liability of the Subscriber for assessment upon approval of the Commissioner of Insurance and upon compliance with the following requirements: (i) The Exchange shall have and at all times maintain a surplus as determined from its last annual statement, which is at least equal to the minimum capital and the paid in surplus required on organization of a domestic stock insurer organized under the provisions of the Florida Insurance Code; and (ii) the Exchange shall have submitted a copy of its proposed non-assessable policy or policies for approval of the Commissioner of Insurance and shall have obtained his approval thereof. Accordingly, your liability as a Subscriber of the Exchange is limited to the premium contribution specified in your policy only if the unencumbered surplus of the Exchange is at least equal to the minimum capital stock and minimum surplus required of a stock property and casualty company.

**<u>Surplus Contributions</u>**: Along with your policy premium, you will pay a surplus contribution to the Exchange, which will help lower the cost of capital necessary for the Exchange to operate and will allow the Exchange to offer more competitively priced insurance to its Subscribers. This contribution will be collected along with your policy premium and is set at ten percent (10%) of total annual premium. For any given year, the AIF will have the discretion to lower the required surplus contribution, based on the capital needs of the Exchange.

------

**<u>Management of the Exchange</u>**: You will be appointing and designating the AIF to be the Attorney-in-Fact for the Exchange. As the Attorney-in-Fact, the AIF will manage all of the insurance operations of the Exchange on behalf of you and all of the other Subscribers.

**<u>Subscribers' Advisory Committee</u>**: The Exchange has established a Subscribers' Advisory Committee ("<u>SAC</u>") for the benefit of its Subscribers. The SAC, an advisory body selected by the AIF, will oversee the finances and operations of the Exchange to assure conformity with the Subscription Agreement and to represent the rights of the Subscribers under the Subscription Agreement. The SAC will provide Subscribers with an avenue for expressing their thoughts in connection with the operation of the Exchange. The Exchange will indemnify SAC members for, and you will agree not to sue them in connection with, their service on the SAC.

**<u>Management Compensation</u>**: In exchange for services rendered, the Exchange will compensate the AIF as follows:

(i) underwriting and marketing management services provided to the Exchange, the AIF will receive as compensation an amount equal to seventeen percent (17%) of the annual gross premium written by the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) claims management services for non-catastrophic claims pursuant to the attached Claims Service Fee Schedule, plus an amount equal to three percent (3%) of the annual gross premium written by the Exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) claims management services for catastrophic claims pursuant to a Claims Service Fee Schedule agreed upon by the AIF.

The AIF is authorized to utilize the funds of the Exchange to pay the expenses of the Exchange, including the cost of any director and officer liability insurance coverages for the AIF and members of the SAC. These compensation arrangements are governed by the Attorney-in-Fact Agreement.

**<u>Subscriber Savings Accounts</u>**: The Exchange conducts its operations for the benefit of its Subscribers and, as a result, it may, in its discretion, allocate underwriting profits or surplus growth to its Subscribers. To this end, the AIF shall establish Subscriber Savings Accounts ("<u>SSAs</u>") for each active Subscriber of the Exchange. SSAs are notional accounts held for active Subscribers. To the extent that the AIF determines to return to the Subscribers any underwriting profits or any surplus growth in years without underwriting profit, such amounts will be allocated to Subscribers' SSAs. Any such distributions will be subject to the performance of the Exchange, its ability to pay claims, and its overall financial strength. Funds may be allocated to SSAs subject to the prior written approval of the Florida Office of Insurance Regulation.

**<u>Arbitration</u>:** You, the Exchange, and the AIF agree that that any and all disputes or differences, including, but not limited to, disputes concerning the formation and/or validity of the Subscription Agreement or disputes concerning coverage under the Subscription Agreement, shall be submitted to arbitration before a panel of three arbitrators, each of whom shall be an active or retired disinterested officer of a property and casualty insurance company. One arbitrator shall be chosen by the Subscriber, one arbitrator shall be chosen by the AIF on behalf of the Exchange, and the third arbitrator will be chosen by the other two arbitrators.

------

**<u>Assignment of Benefits</u>:** You understand and agree that you may not, without the prior written consent of the AIF, assign Subscriber's rights or obligations under this Subscription Agreement, in whole or in part, either voluntarily or by operation of law, and any attempt to make such an assignment in violation of this agreement shall be a default of the Subscription Agreement and such assignment shall be null and void and of no force or effect.

The above is only a summary of certain of the provisions of the Subscription Agreement and does not purport to describe all of the terms of the Subscription Agreement. The summary is qualified in its entirety by reference to the complete text of the Subscription Agreement, which is attached hereto. You are urged to carefully read the Subscription Agreement in its entirety because it is the primary legal document that governs your contractual relationship with the Exchange, the AIF, and the SAC.

By signing below you agree, among other things, to become a Subscriber of the Exchange, to appoint the AIF as the Attorney-in-Fact of the Exchange and to be legally bound by the terms and conditions of the Subscription Agreement.

Due to the nature of the structure of the Exchange, your insurance policy cannot become effective without a signed Subscription Agreement. If you fail to sign this Cover Letter or the Subscription Agreement, the Exchange reserves the right to terminate your coverage.

**Signature and Acknowledgment of Receipt.** 

---

| |
|:---|
|  By: ______________________________________ |
|  Name: [Subscriber] |
|  Date: [Date] |

---

---

| |
|:---|
|  ***Receipt Acknowledged***: |
|  **Manatee Insurance Exchange** |
|  Signature: ________________________________ |
|  Name: ____________________________________ |
|  Title: _____________________________________ |
|  Date: _____________________________________ |

---

------

**SUBSCRIPTION AGREEMENT AND POWER OF ATTORNEY OF** 

**MANATEE INSURANCE EXCHANGE** 

The undersigned subscriber (the "<u>Subscriber</u>") to Manatee Insurance Exchange, a reciprocal insurer formed under the laws of the State of Florida (the "<u>Exchange</u>"), by signing this Subscription Agreement and Power of Attorney (the "<u>Subscription Agreement</u>") and the Summary and Cover Letter (the "<u>Cover Letter</u>") attached hereto agrees with all other Joint Subscribers to the Exchange (the "Subscribers"), and with Manatee Risk Management LLC, a Florida Limited Liability Company (the "<u>AIF</u>"), as follows:

**1. Power of Attorney.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1 Designation**. The Subscriber hereby appoints the AIF as the Attorney-in-Fact for the Exchange with the express power, authority, and permission to effectuate and conduct the lawful business affairs of the Exchange. This authority includes the ability to carry out all customary functions of a reciprocal insurance company, including but not limited to the following responsibilities: (a) exchange, with other Subscribers to the Exchange, any and all kinds of reciprocal insurance contracts, which the Exchange is authorized by law to write; (b) issue, exchange, renew, non-renew, cancel or modify insurance policies; (c) act as intermediary to obtain reinsurance; (d) appear for, compromise, prosecute, adjust, settle, defend, litigate, appeal, and pay claims or losses under the insurance policies of Subscribers; (e) accept service of process on behalf of the Exchange in actions against the Exchange upon contracts exchanged by Subscribers of the Exchange; (f) authorize the Office of the Secretary of State of Florida to receive service of process in actions against the Exchange upon contracts exchanged by Subscribers of the Exchange; (g) open accounts and borrow money in the name of the Exchange; (h) hire and compensate personnel and agents; (i) collect premiums and invest and reinvest funds; (j) receive notices and proof of loss; (k) administer subscriber accounts, including their respective Subscriber Savings Accounts, if applicable, including allocations thereto and distributions therefrom; and (l) to conduct the business and affairs of the Exchange, as set forth herein, in the organizational documents of the Exchange, and that certain Attorney-in-Fact Agreement between the Exchange and the AIF (the "<u>Attorney-in-Fact Agreement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2 Limited Power of Attorney**. The powers, rights, obligations, and responsibilities of the AIF are limited to those enumerated and described in this Subscription Agreement and in the Attorney-in-Fact Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3 Offices of Attorney-In-Fact**. The offices of the AIF will be the same as the principal office of the Exchange, located at 12640 Telecom Dr., Temple Terrace, FL 33637. The offices of the Exchange or the AIF may be changed in compliance with the requirements of the laws of the State of Florida and the Subscriber will be promptly notified of any such change of office location and when any such change shall be effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4 Attorney-in-Fact Agreement**. The Attorney-in-Fact Agreement between the Exchange and the AIF, which establishes the AIF as the Attorney-in-Fact for the Exchange, is incorporated herein by reference.

------

**2. Compensation of the AIF.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 Fees for Services**. In consideration for the services provided to the Exchange and under the terms of the Attorney-in-Fact Agreement, the AIF will be compensated for underwriting and marketing management services provided to the Exchange. The AIF will receive as compensation an amount equal to seventeen percent (17%) of the annual gross premium written by the Exchange. In addition, the Exchange will compensate the AIF for claims management services for non-catastrophic claims pursuant to the attached Claims Service Fee Schedule, plus an amount equal to three percent (3%) of the annual gross premium earned by the Exchange. Compensation for catastrophic claims are also set forth in the attached Claims Service Fee Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 Adjustments and Modifications**. The AIF's total compensation, as set forth in greater detail in the Attorney-in-Fact Agreement, may be revised or modified at any time jointly by the AIF and SAC (as that term is defined below), subject to the prior written approval of the Florida Office of Insurance Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3. Waiver of Fees.** At the sole discretion of the AIF, the AIF may waive fees from the Exchange as a method to build or maintain surplus in the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4 Expenses**. The Exchange will be liable, and will reimburse the AIF on demand, for losses, loss adjustment expenses, investment expenses, and other expenses attributable to the operations of the Exchange.

**3. Exchange of Policies**: The Subscriber hereby offers and agrees to exchange policies with the other Subscribers of the Exchange. The Subscriber understands and agrees that the reciprocal insurance contracts to be exchanged hereunder are non-assessable, as provided for in Section 629.261 of the Florida Insurance Code, and consistent with Section 16 of this Subscription Agreement, thereby limiting the liability of the Subscriber to the Exchange to the policy premium and surplus contribution which are provided for under Section 5 of this Subscription Agreement.

**4. Subscribers' Advisory Committee**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1 Formation and Role of SAC**. The Subscriber understands that the Exchange and the AIF have established a Subscribers' Advisory Committee (the "<u>SAC</u>") to exercise any rights reserved to Subscribers and assist the AIF in supervising the operations of the Exchange. The duties and powers of the SAC are contained within the Subscribers' Committee Charter ("<u>SAC Charter</u>"). The Subscriber understands and agrees that the powers of the SAC are limited to those enumerated in the SAC Charter and in this Subscription Agreement. Members of the SAC are selected annually by the SAC and the Subscriber agrees that the SAC shall (a) have only the enumerated responsibilities specifically assigned to it, (b) exercise the rights of all Subscribers of the Exchange, and (c) consist of at least two-thirds current insured Subscribers of the Exchange who are independent of the AIF. The Subscriber understands and agrees that the Subscriber is not entitled to directly participate in the management of the Exchange unless such Subscriber is appointed to serve as a member of the SAC.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 Supervisory Powers of SAC**. The Subscriber agrees that the SAC will supervise the finances and operations of the Exchange to the extent as is necessary to assure conformity with this Subscription Agreement and the Attorney-in-Fact Agreement. The SAC also shall procure, at the expense of the Exchange, an audit of the accounts and records of the Exchange and the AIF.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3 Indemnification of SAC Members**. To the extent permitted by law, the Subscriber agrees that the Exchange shall defend and hold harmless each and every member of the SAC from and against any liability that may arise from, or is in any way connected with, such member's participation on the SAC. This indemnification provision does not apply where the member acted with criminal intent or reckless disregard in the performance of his or her duties as a member of the SAC. The Subscriber also agrees that such Subscriber will not sue or name in any action or affirmative defense any SAC member or the SAC for actions arising from, or is in any way connected with, such member's participation on the SAC.

**5. Surplus Contributions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1 Policy Premium and Surplus Contributions**. The Subscriber agrees to pay his or her policy premium when due and, in addition, to make a contribution to the surplus of the Exchange in the amounts and during the period of time set forth in 5.2 below (the "<u>Surplus Contribution</u>"). The Subscriber understands and agrees that the amounts paid as Surplus Contribution will be credited as policyholder surplus for the benefit and protection of all of the Subscribers and that any such Surplus Contribution made to the Exchange is not to be treated as premium for insurance coverage provided by the Exchange to any Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2 Timing and Amounts of Surplus Contributions**. The Surplus Contribution is payable to the Exchange on or prior to the initial effective date of the Subscriber's coverage, and subsequently due annually at the same time as the payment of the policy premium is due. The Surplus Contribution shall be ten percent (10%) of total annual insurance premiums (and may be charged at a lower rate, or not at all, in the discretion of the AIF).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3 Return of Surplus Contributions**. The Subscriber understands and agrees that the amounts paid as a Surplus Contribution will be credited as policyholder surplus for the benefit and protection of all the Subscribers of the Exchange, are not premiums for insurance, and may only be returned in limited circumstances. The Subscriber further understands and agrees that the ability of the Exchange to return Surplus Contributions to its Subscribers is subject to the provisions of this Subscription Agreement and is limited by law. Upon the issuance of an insurance policy, or other confirmation of coverage by the Exchange, the return of Surplus Contribution can occur only with the approval of the AIF and the Florida Office of Insurance Regulation, and as set forth in this Subscription Agreement. In the event of a mid-term policy cancellation, the AIF will return any Surplus Contribution (without interest) applicable to the cancelled policy term, pro-rated based on the fraction of the policy term that has elapsed and subject to the restrictions set forth in Section 6 hereof and any applicable law. All other Surplus Contribution amounts, including those made for previous policy terms, will be retained by the Exchange for the benefit of all remaining Subscribers. The Subscriber understands and agrees that any other return of Surplus Contributions will be subject to the approval of the AIF, the Florida Office of Insurance Regulation, and the restrictions set forth in Section 6 hereof.

------

**6. Subscriber Savings Accounts**. The AIF intends to operate the Exchange for the benefit of all of its Subscribers and will maintain separate individual Subscriber Savings Accounts ("<u>SSAs</u>") for each subscriber. In years in which the Exchange achieves operating profit and surplus growth, after accounting for paid losses, loss reserves and operating and policy acquisition expenses, the AIF, in its discretion, may credit your SSA with a portion of the amount of the Exchange's growth in surplus for a fiscal year. Any such credit will be made pro rata, based on the Subscriber's earned premium for such year. The Subscriber understands and agrees that (a) any contributions to be made to a Subscriber's SSA are based on the Exchange's overall results, not the results of any individual subscriber; and (b) any and all such funds allocated to the Subscriber would be considered part of the Exchange's surplus and the AIF would be authorized to use any and all such funds to pay any unsatisfied obligations of the Exchange. As set forth in this Subscription Agreement, the Subscriber may be eligible for a distribution from its SSA (y) at such time when the Subscriber is no longer insured by the Exchange, or (z) at such other times, in determined by the AIF in its discretion, subject to the approval of the SAC. In order to avoid any impairment to the surplus of the Exchange, the AIF, subject to the approval of the SAC, retains the right to limit the distribution from the SSAs to Subscribers whose coverage has been terminated. Furthermore, any payment or allocation to an SSA would be subject to the approval of the Florida Office of Insurance Regulation.

**7. Limitations on Distributions of Surplus Contributions and SSAs.** No payment of a returned Surplus Contribution or a distribution of SSA funds (together, a "<u>Surplus Distribution</u>") will be made if such payment could risk the financial impairment of the Exchange. Surplus Distribution payments may be delayed if, as determined by the AIF, the total amount of such payments to all applicable Subscribers to the Exchange, within the preceding 12 months, would exceed the lesser of: (a) ten percent (10%) of the total surplus of the Exchange calculated as of the immediately preceding December 31, or (b) the total net income of the Exchange before savings allocations and federal income taxes for the calendar year ended as of the immediately preceding December 31. If payment to any subscriber would be delayed pursuant to the requirements set forth in this Section 7, the total amount which may be paid to all Subscribers will be paid pro rata to each such subscriber who meets the conditions to receive a Surplus Distribution on an equitable basis as determined by the AIF in its sole and absolute discretion and as allowed by applicable law. Any payments delayed pursuant to the requirements set forth in this Section 7 will be paid as soon as possible when payment can be made in compliance with this Section 7 and the requirements of the Exchange. If this Section 7 is found to conflict with other terms of this Subscription Agreement, this Section 7 supersedes all other terms and conditions of this Subscription Agreement.

**8. Advance of Money by Attorney-in-Fact**. The Subscriber understands and agrees that the AIF may advance to the Exchange any amount of money necessary to conduct the business of the Exchange, including any amount necessary to enable the Exchange to comply with a legal requirement. Subject to the approval of the Florida Office of Insurance Regulation, the advanced amount and any agreed interest on that amount, not exceeding two percent (2%) a year (should the AIF decide to impose such interest): (i) is payable only from the surplus of the Exchange remaining after providing for all reserves, other liabilities, and required surplus; and (ii) may not otherwise be a liability or claim against the Exchange or any of the assets of the Exchange. The Subscriber further understands and agrees that a commission, promotion expense, or other bonus may not be paid in connection with the advance of money to the Exchange and that the amount of each advance must be reported in the annual report of the Exchange.

------

**9. Return of Surplus upon Liquidation**. The Subscriber understands and agrees that upon the liquidation of the Exchange, the assets of the Exchange remaining after discharge of its indebtedness and policy obligations, the return of any contributions of the AIF or other persons to its surplus made, and the return of any unused premium, savings, or credits then standing on SSAs, shall be distributed to its Subscribers who were such within the 12 months prior to the last termination of its certificate of authority, according to such reasonable formula as the Florida Office of Insurance Regulation approves.

**10. Rejection of Coverage.** The Subscriber understands and agrees that the Exchange has an obligation to its Subscribers to maintain strict eligibility and underwriting requirements. The Exchange has the right to reject any application for insurance, including this Subscription Agreement, and the offer of payment of premium and Surplus Contribution. If such a rejection of coverage occurs after receipt of the Surplus Contribution by the Exchange, the Surplus Contribution will be returned to the Subscriber, without payment of interest. An existing subscriber applying for additional lines of coverage is not guaranteed acceptance for those new lines of coverage.

**11. Termination**: This Subscription Agreement may be terminated at any time, by the Subscriber or the AIF, by terminating all insurance policies issued to the Subscriber, subject to applicable policy provisions and applicable law. Upon the termination of all insurance policies issued to the Subscriber, subject to the approval of the Florida Office of Insurance Regulation and as otherwise set forth in this Subscription Agreement, the balance remaining in your SSA or eligible Surplus Contribution, after allocation of expenses and claims, will be returned to the Subscriber within six months thereafter. In the event that that the Subscriber should cease to maintain insurance with the Exchange, regardless of whether such insurance is cancelled, rescinded or non- renewed for any reason, you will lose all rights as a subscriber to the Exchange.

**12. Acknowledgement of Receipt of Documents.** The Subscriber hereby acknowledges and confirms receipt of, and represents and warrants to the Exchange and the AIF, that the Subscriber has read and fully understands, the SAC Charter and the Attorney-in-Fact Agreement prior to executing this Subscription Agreement.

**13. Binding Agreement.** This Subscription Agreement will be accepted by the AIF upon receipt of the Subscriber's executed signature on the cover page. The Subscriber agrees that this Subscription Agreement, including the power of attorney set forth herein, will apply to all insurance policies for which the Subscriber has applied, or will apply, with the Exchange. The subscriber further agrees and understands that upon acceptance of this Subscription Agreement by the AIF, the terms and conditions of each of this Subscription Agreement, the SAC Charter, and the Attorney-in-Fact Agreement will be valid and binding upon the AIF, the Subscriber, and each of the parties' respective personal representatives, administrators, successors, and assigns, as indicated by the Subscriber's signature on the cover page.

------

**14. Arbitration.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As a condition precedent to any right of action arising under or out of this Subscription Agreement, the Subscriber, the Exchange, and the AIF (each being individually referred to herein as a "<u>Party</u>," or collectively as the "<u>Parties</u>") agree that any and all disputes or differences concerning the Parties' rights or obligations under this Subscription Agreement, including any and all disputes or differences concerning the formation and/or validity of this Subscription Agreement or the formation and/or validity of this arbitration provision, shall be submitted to arbitration before a panel of three arbitrators, each of whom shall be an active or retired disinterested officer of a property and casualty insurance company. For the avoidance of doubt, this arbitration provision is not intended to govern coverage disputes or differences arising from a policy of insurance issued by the Exchange to the Subscriber. One arbitrator shall be chosen by the Subscriber, one arbitrator shall be chosen by the AIF on behalf of the Exchange, and the third arbitrator will be chosen by the other two arbitrators. In the event any Party does not appoint an arbitrator within 60 days after the other Party requests it to do so, or if the two arbitrators selected by the Exchange and the AIF fail to agree upon a third arbitrator within 30 days of the appointment of the second arbitrator to be appointed, the arbitrator or arbitrators, as the case may be, will, upon the application of any Party, be appointed by the American Arbitration Association and the arbitrators will proceed. The decision of the majority of the arbitrators will be final and binding on all Parties. Each Party will bear the expense of its own arbitrator and one- half of the expenses of the third arbitrator and of the arbitration. Arbitration taking place under this section will take place in Florida unless otherwise agreed by the Parties in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any action, litigation, suit or proceeding arising out of or relating to this Subscription Agreement including the enforceability of the provisions of paragraph 14(a) hereof, shall be brought solely in federal or state courts of competent jurisdiction sitting in the courts located in the State of Florida , and each of the Parties hereto hereby irrevocably consents and submits to the exclusive jurisdiction of such courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any dispute or difference of opinion arising under this Subscription Agreement, the Exchange and the AIF must fulfill all obligations under the reciprocal insurance contracts exchanged by the Subscribers.

**15. Assignment of Benefits.** Subscriber may not, without the prior written consent of the SAC, assign Subscriber's rights or obligations under this Subscription Agreement, in whole or in part, either voluntarily or by operation of law, and any attempt to make such an assignment in violation of this Section 15 shall be a default of this Subscription Agreement and such assignment shall be null and void and of no force or effect. Subscriber understands that any such default of this Subscription Agreement by Subscriber as a result of an assignment made in violation of this Section 15 may constitute grounds for expulsion from the Exchange, at the sole discretion of the SAC.

**16. Non-Assessable Policies.** Section 629.261 of the Florida Insurance Code provides, in pertinent part, that a domestic reciprocal insurer may issue policies without contingent liability of the Subscriber for assessment upon approval of the Commissioner of Insurance and upon compliance with the following requirements: (i) The Exchange shall have and at all times maintain a surplus as determined from its last annual statement, which is at least equal to the minimum capital and the paid in surplus required on organization of a domestic stock insurer organized under

------

the provisions of the Florida Insurance Code; and (ii) the Exchange shall have submitted a copy of its proposed non-assessable policy or policies for approval of the Commissioner of Insurance and shall have obtained his approval thereof. Accordingly, your liability as a Subscriber of the Exchange is limited to the premium contribution specified in your policy only if the unencumbered surplus of the Exchange is at least equal to the minimum capital stock and minimum surplus required of a stock property and casualty company.

**17. General Provisions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.1 Governing Law**. This Subscription Agreement and all matters relating to its validity, interpretation, performance and enforcement shall be governed by and construed in accordance with the substantive laws of the State of Florida, without giving effect to the principles of the conflict of laws or the rules thereof that might require the application of the laws of another jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.2 Limitation of Actions**. Absent a finding of criminal or willful misconduct or recklessness, and except for causes of action that may arise directly from the Subscriber's insurance policy or policies, or actions to enforce this Subscription Agreement which must be brought in arbitration pursuant to Section 14 above, the Subscriber agrees that the Exchange will not be sued or named in any action or affirmative defense by the Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.3 Rules of Construction**. When a reference is made in this Subscription Agreement to a Section or subsection, such reference shall be to a Section or subsection of this Subscription Agreement unless otherwise indicated. Any capitalized terms used in any attachment to this Subscription Agreement but not otherwise defined therein shall have the meanings as defined in this Subscription Agreement.

**18. Signature and Acknowledgment of Receipt.** 

---

| |
|:---|
|  By: ______________________________________ |
|  Name: [Subscriber] |
|  Date: [Date] |

---

---

| |
|:---|
|  ***Receipt Acknowledged***: |
|  **Manatee Insurance Exchange** |
|  Signature: ________________________________ |
|  Name: ___________________________________ |
|  Title: ____________________________________ |
|  Date: ____________________________________ |

---

## Exhibit 16.1

![LOGO](g73198snap2.jpg)

---

| | |
|:---|:---|
| May 8, 2026 | RSM US LLP |
|  | 1201 West Peachtree Street, NW<br> Suite 800 |
| Securities and Exchange Commission | Atlanta, GA 30309 |
| Washington, D.C. 20549 |  |
|  | T +1 404 751 9100<br> F +1 404 751 9102 |
| Commissioners: | www.rsmus.com |

---

We have read Safepoint Holdings, Inc.'s statements included under the title Change in Accountants in its Registration Statement on Form S-1 filed on May 8, 2026 and we agree with such statements concerning our firm.

![LOGO](g73198snap3.jpg)

![LOGO](g73198snap4.jpg)

## Exhibit 21.1

**Exhibit 21.1** 

**<u>SAFEPOINT HOLDINGS, INC. LEGAL ENTITIES</u>**

As of May 8, 2026

---

| | |
|:---|:---|
| **Name** | **Jurisdiction** |
| Safepoint Insurance Company | Florida |
| Cajun Underwriters Holdings LLC | Delaware |
| Cajun Underwriters Risk Management LLC | Delaware |
| Manatee Risk Management LLC | Florida |
| Insight Risk Solutions LLC | Florida |
| Pompano Re Ltd. | Bermuda |
| Bobcat Re Ltd. | Bermuda |
| Canal Re Ltd. | Bermuda |
| Tarpon Ltd. | Bermuda |
| Safepoint MGA, LLC | Florida |
| Farpoint Holdings, LLC | Florida |
| Farpoint Operations, Ltd. | United Kingdom |

---

## Exhibit 23.1

**Exhibit 23.1** 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the use in this Registration Statement on Form S-1 of Safepoint Holdings, Inc. of our report dated April 13, 2026 relating to the financial statements and financial statement schedule of Safepoint Holdings, Inc., which appears in this Registration Statement. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

May 8, 2026

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**S-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Safepoint Holdings, Inc.**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Security Type**  | **Security Class Title**  | **Fee Calculation or Carry Forward Rule**  | **Maximum Aggregate Offering Price**  | **Fee Rate**  | **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Common Share, par value $0.01 per share | 457(o) | $100000000.00 | 0.0001381 | $13810.00 |
| Fees Previously Paid |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $100000000.00  |  | $13810.00  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $13810.00  |

---

 **Offering Note** <br>

<sup>1</sup> (1) Includes offering price of any additional shares that the underwriters have the option to purchase. (2) Estimated solely for the purpose of calculating the registration fee in accordance with Rule 457(o) under the Securities Act of 1933, as amended. <br>

---

| |
|:---|
| |
| **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims |
| Fee Offset Sources |
| **Rule 457(p)** |
| Fee Offset Claims |
| Fee Offset Sources |

---