Document:

EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 

AGREEMENT AND PLAN OF MERGER 

BY AND AMONG 
 ROCKET
LAB USA, INC., 
 PLATINUM MERGER SUB, INC. 

PLANETARY SYSTEMS CORPORATION 

AND 
 MICHAEL WHALEN, AS
SHAREHOLDER REPRESENTATIVE 
 NOVEMBER 15, 2021 

 TABLE OF CONTENTS 
  

									
	 	 	 	  	 	  	Page	 
	 1.
	 	Definitions	  	 	2	 
	 2.
	 	The Merger	  	 	17	 
		 	2.1	  	The Merger	  	 	17	 
		 	2.2	  	Closing; Effective Time	  	 	17	 
		 	2.3	  	Effect of Merger	  	 	17	 
		 	2.4	  	Certificate of Incorporation; Bylaws	  	 	17	 
		 	2.5	  	Directors and Officers	  	 	17	 
		 	2.6	  	Merger Effect on Capital Stock	  	 	17	 
		 	2.7	  	Dissenting Shares	  	 	18	 
		 	2.8	  	Estimated Closing Certificate	  	 	18	 
		 	2.9	  	Surrender and Payment	  	 	20	 
		 	2.10	  	Withholding Rights	  	 	22	 
		 	2.11	  	Holdback Amount, Transaction Expenses and Expense Fund	  	 	22	 
		 	2.12	  	Earnout	  	 	23	 
		 	2.13	  	Taking of Necessary Action; Further Action	  	 	27	 
		 	2.14	  	Post-Closing Adjustments	  	 	27	 
	 3.
	 	Company Representations and Warranties	  	 	28	 
		 	3.1	  	Organization, Standing and Power; Subsidiaries	  	 	28	 
		 	3.2	  	Authority	  	 	29	 
		 	3.3	  	Governmental Authorization	  	 	29	 
		 	3.4	  	Financial Statements	  	 	29	 
		 	3.5	  	Capital Structure	  	 	30	 
		 	3.6	  	Absence of Certain Changes	  	 	31	 
		 	3.7	  	Absence of Undisclosed Liabilities	  	 	32	 
		 	3.8	  	Litigation	  	 	32	 
		 	3.9	  	Intellectual Property	  	 	32	 
		 	3.10	  	Company Products	  	 	38	 
		 	3.11	  	Privacy; Security Measures	  	 	39	 
		 	3.12	  	Related Person Transactions	  	 	39	 
		 	3.13	  	Minute Books	  	 	39	 
		 	3.14	  	Material Contracts	  	 	39	 
		 	3.15	  	Government Contracts	  	 	41	 
		 	3.16	  	Real Estate	  	 	44	 
		 	3.17	  	Title to Property; Sufficiency	  	 	45	 
		 	3.18	  	Environmental Matters	  	 	45	 
		 	3.19	  	Taxes	  	 	46	 
		 	3.20	  	Employee Benefit Plans	  	 	48	 
		 	3.21	  	Employee Matters	  	 	51	 
		 	3.22	  	Insurance	  	 	53	 
		 	3.23	  	Compliance with Laws	  	 	53	 
		 	3.24	  	International Trade Matters	  	 	53	 
		 	3.25	  	Anti-Corruption Compliance	  	 	54	 
		 	3.26	  	Accounts Receivable	  	 	55	 
		 	3.27	  	Customers	  	 	56	 

  
 i 

 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	  	 	  	Page	 
		 	3.28	  	Suppliers	  	 	56	 
		 	 3.29
	  	Bank Accounts	  	 	56	 
		 	 3.30
	  	Inventory	  	 	56	 
		 	 3.31
	  	Brokers’’ and Finders’ Fee	  	 	56	 
		 	 3.32
	  	No Additional Representations; No Reliance	  	 	56	 
	 4.
	 	 Representations and Warranties of Parent and Merger Sub
	  	 	57	 
		 	 4.1
	  	Organization, Standing and Power	  	 	57	 
		 	 4.2
	  	Authority	  	 	57	 
		 	 4.3
	  	SEC Filings.	  	 	57	 
		 	 4.4
	  	Absence of Certain Changes or Events	  	 	58	 
		 	 4.5
	  	Ownership and Operations of Merger Sub	  	 	58	 
		 	 4.6
	  	Financing	  	 	58	 
	 5.
	 	 Conduct Prior to the Closing
	  	 	58	 
		 	 5.1
	  	Conduct of Company Business	  	 	58	 
		 	 5.2
	  	No Solicitation	  	 	61	 
		 	 5.3
	  	R&W Insurance Policy	  	 	61	 
	 6.
	 	 Additional Agreements
	  	 	61	 
		 	 6.1
	  	Access to Information	  	 	61	 
		 	 6.2
	  	Confidentiality	  	 	62	 
		 	 6.3
	  	Public Disclosure	  	 	62	 
		 	 6.4
	  	Notification of Certain Matters	  	 	62	 
		 	 6.5
	  	Employees	  	 	63	 
		 	 6.6
	  	Expenses	  	 	64	 
		 	 6.7
	  	Release and Termination of Security Interests	  	 	64	 
		 	 6.8
	  	Required Contract Consents	  	 	64	 
		 	 6.9
	  	Shareholder Approval	  	 	64	 
		 	 6.10
	  	Support Agreements	  	 	65	 
		 	 6.11
	  	Data Room	  	 	65	 
		 	 6.12
	  	Tax Matters	  	 	65	 
		 	 6.13
	  	Release of Claims	  	 	66	 
		 	 6.14
	  	Indemnification of Directors and Officers	  	 	68	 
		 	 6.15
	  	Trade Name Filing	  	 	68	 
		 	 6.16
	  	Securities Laws Matters	  	 	68	 
	 7.
	 	 Conditions to the Closing
	  	 	68	 
		 	 7.1
	  	Conditions to Obligations of Each Party to Effect the Closing	  	 	68	 
		 	 7.2
	  	Additional Conditions to the Obligations of Parent	  	 	69	 
		 	 7.3
	  	Additional Conditions to Obligations of Company	  	 	71	 
	 8.
	 	 Termination, Amendment and Waiver
	  	 	72	 
		 	 8.1
	  	Termination	  	 	72	 
		 	 8.2
	  	Effect of Termination	  	 	72	 
		 	 8.3
	  	Amendment	  	 	72	 
		 	 8.4
	  	Extension; Waiver	  	 	72	 
	 9.
	 	 Indemnification
	  	 	73	 
		 	 9.1
	  	Indemnification by the Company Shareholders.	  	 	73	 

  
 ii 

 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	  	 	  	Page	 
		 	 9.2
	  	Indemnification by Parent	  	 	75	 
		 	 9.3
	  	Indemnification Claims	  	 	75	 
		 	 9.4
	  	Resolution of Conflicts	  	 	76	 
		 	 9.5
	  	Shareholder Representative	  	 	76	 
		 	 9.6
	  	Third-Party Claims	  	 	77	 
		 	 9.7
	  	Tax Effect of Indemnification Payments	  	 	77	 
		 	 9.8
	  	Effect of Investigation	  	 	78	 
		 	 9.9
	  	Exclusive Remedy	  	 	78	 
		 	 9.10
	  	Additional Limitation	  	 	78	 
	 10.
	 	 General Provisions
	  	 	78	 
		 	 10.1
	  	Notices	  	 	78	 
		 	 10.2
	  	Counterparts; Facsimile	  	 	79	 
		 	 10.3
	  	Entire Agreement; Nonassignability; Parties in Interest	  	 	79	 
		 	 10.4
	  	Severability	  	 	79	 
		 	 10.5
	  	Remedies Cumulative	  	 	80	 
		 	 10.6
	  	Governing Law	  	 	80	 
		 	 10.7
	  	Rules of Construction	  	 	80	 
		 	 10.8
	  	Specific Enforcement	  	 	80	 
		 	 10.9
	  	Amendment; Waiver	  	 	80	 
		 	 10.10
	  	Interpretation	  	 	81	 

  
 iii 

 List of Exhibits 

 

			
	Exhibit A	  	 Form of Voting and Support Agreement**

	Exhibit B	  	 Form of Restrictive Covenant Agreement**

	Exhibit C	  	 Plan of Merger**

	Exhibit D	  	 Support Agreement**

	Exhibit E	  	 Lockup Agreement**

	Exhibit F	  	 Letter of Transmittal**

	Exhibit G	  	 Stock Holdback Agreement**

 List of Schedules 
  

			
	Schedule 1	  	Calculation of Working Capital**
	Schedule 5.1(c)(x)	  	Capital Expenditures**
	Schedule 5.1(c)(xiii)	  	Employee Benefit Plans; New Hires; Pay Increases**
	Schedule 5.1(c)(xiv)	  	Severance Arrangements and Terminations**
	Schedule 6.14(a)	  	Contractual Right to Indemnification**
	Schedule 7.2(g)	  	Third Party Consents**
	Schedule 9.1(a)(x)	  	Special Indemnifications**

  

	**	 These exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K.

  
 iv 

 AGREEMENT AND PLAN OF MERGER 

This Agreement and Plan of Merger (the “Agreement”) is made and entered into as of November 15, 2021 (the
“Agreement Date”), by and among Rocket Lab USA, Inc., a Delaware corporation (“Parent”), Platinum Merger Sub, Inc., a Delaware corporation (“Merger Sub”), Planetary Systems Corporation, a District
of Columbia corporation (the “Company”), and Michael Whalen, an individual, solely in his capacity as the representative of the Company Shareholders (“Shareholder Representative”). 

RECITALS 
 A. The Company is
engaged in the Company Business. 
 B. The parties intend for Parent to acquire the Company, on the terms and subject to the conditions set
forth in this Agreement 
 C. In furtherance of such acquisition of the Company by Parent, and on the terms and subject to the conditions set
forth in this Agreement and in accordance with the Delaware General Corporation Law (the “DGCL”) and the Business Organizations Code of the District of Columbia (the “DC Code”), Merger Sub shall be merged with and
into the Company (the “Merger”), with the Company surviving the Merger as a wholly-owned subsidiary of Parent, and each outstanding share of the Company’s common stock, par value $1.00 per share (the “Company Common
Stock”; each share of Company Common Stock a “Share” and, collectively, the “Shares”) (other than the Cancelled Shares and the Dissenting Shares) will be converted into the right to receive the Merger
Consideration; 
 D. The Board of Directors of the Company (the “Company Board”) has unanimously: (i) determined that
it is in the best interests of the Company and the holders of shares of the Company Common Stock (the “Company Shareholders”), and declared it advisable, to enter into this Agreement with Parent and Merger Sub;
(ii) approved the execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby, including the Merger; and (iii) resolved, subject to the terms and conditions set forth in this
Agreement, to recommend adoption of this Agreement by the Company Shareholders; 
 E. The respective Boards of Directors of Parent (the
“Parent Board”) and Merger Sub (the “Merger Sub Board”) have each unanimously: (i) determined that it is in the best interests of Parent or Merger Sub, as applicable, and their respective stockholders, as
applicable, and declared it advisable, to enter into this Agreement; and (ii) approved the execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby, including the Merger; 

F. The parties desire to make certain representations, warranties, covenants, and agreements in connection with the Merger and the other
transactions contemplated by this Agreement and also to prescribe certain terms and conditions to the Merger; 
 G. Concurrently with the
execution of this Agreement, and as a condition and inducement for Parent and Merger Sub to enter into this Agreement, certain Company Shareholders have entered into and delivered voting and support agreements in substantially the form attached
hereto as Exhibit A (the “Voting and Support Agreements”); 
 H. Prior to delivery of this Agreement, and as a
condition and inducement for Parent’s willingness to have entered into this Agreement, each Key Employee has executed and delivered to Parent the Restrictive Covenants Agreement in the form attached hereto as Exhibit B (each, a
“Restrictive Covenants Agreement”) in each case, to become effective upon the Closing; and 

 I. Prior to delivery of this Agreement, and as a condition and inducement for Parent’s
willingness to have entered into this Agreement, each Key Employee has executed and delivered to Parent an offer letter or employment agreement and an invention disclosure, confidentiality, and proprietary rights agreement with Parent or one of its
Affiliates (as determined by Parent in its sole discretion), in each case, to become effective upon the Closing (the “Key Employee Agreements”). 

NOW, THEREFORE, in consideration of the covenants and representations set forth herein, and for other good and valuable consideration, the
parties agree as follows: 
 1. Definitions. As used in this Agreement, the following terms shall have the following meanings: 

“2022 Achieved Earnout Amount” has the meaning set forth in Section 2.12(b)(viii). 

“2022 Earnout Base Revenue” has the meaning set forth in Section 2.12(b)(x). 

“2022 Earnout Maximum Consideration” has the meaning set forth in Section 2.12(b)(xi). 

“2022 Earnout Period” has the meaning set forth in Section 2.12(b)(i). 

“2022 Earnout Revenue Target” has the meaning set forth in Section 2.12(b)(xii). 

“2023 Achieved Earnout Amount” has the meaning set forth in Section 2.12(b)(xiii). 

“2023 Earnout Base Revenue” has the meaning set forth in Section 2.12(b)(xv). 

“2023 Earnout Maximum Consideration” has the meaning set forth in Section 2.12(b)(xvi). 

“2023 Earnout Period” has the meaning set forth in Section 2.12(b)(ii). 

“2023 Earnout Revenue Target” has the meaning set forth in Section 2.12(b)(xvii). 

“401(k) Plan” has the meaning set forth in Section 7.2(l). 

“409A Plan” has the meaning set forth in Section 3.19(u). 

“ACA” has the meaning set forth in Section 3.20(h). 

“Accounting Rules” means, collectively, (i) the rules, principles and methodology consistent with the illustrative
calculation of Working Capital set forth on Schedule 1 (collectively, the “Agreed Principles”), (ii) the accounting principles, methods and practices used in preparing the Financial Statements (collectively, the
“Historical Principles”) and (iii) GAAP, applied in a manner consistent with its application to the preparation of the Financial Statements (“Historical GAAP”); provided, that notwithstanding any provisions or
concepts of GAAP, no developments or events taking place after the Effective Time shall be taken into account; provided, further, that in the event of any conflict among the Agreed Principles, the Historical Principles and Historical GAAP, then the
Agreed Principles shall take precedence, followed by the Historical Principles, followed by Historical GAAP. 
 “Acquisition
Proposal” has the meaning set forth in Section 5.2. 

  
 2 

 “Action” means any claim, action, cause of action, suit, litigation,
arbitration, proceeding (including any civil, criminal, administrative, investigative or appellate proceeding), hearing, inquiry, audit, examination, subpoena, summons, citation, notice of violation, or investigation of any nature, civil, criminal,
administrative, regulatory or otherwise, whether at law or in equity. 
 “Actual 2022 Revenue” has the meaning set forth in
Section 2.12(b)(ix). 
 “Actual 2023 Revenue” has the meaning set forth in
Section 2.12(b)(xiv). 
 “Adjustment Holdback Amount” means $500,000. 

“Affiliate” with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common
control with such Person provided that, for purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any Person,
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or by contract or otherwise. 

“Agreed Principles” has the meaning set forth in the definition of Accounting Rules. 

“Agreement” has the meaning set forth in the introductory paragraph. 

“Agreement Date” has the meaning set forth in the introductory paragraph. 

“Anti-Corruption/ AML Law” means, collectively, (i) the FCPA, the UK Bribery Act 1010, and any other applicable
anti-corruption laws or regulations, and (ii) the Currency and Foreign Transactions Reporting Act of 1970, as amended, the applicable anti-money laundering statutes of all jurisdictions where the Company conducts business (or are otherwise
applicable to the Company), the rules and regulations thereunder, and any related or similar rules, regulations or guidelines issued, administered or enforced by any Governmental Entity. 

“Applicable Law” means, collectively, any applicable federal, state, provincial, foreign or local statute, law, ordinance,
regulation, rule, code, order, judicial or arbitral or administrative or regulatory judgment, injunction, decision, or rule of law, including general principles of common law and equity. 

“Balance Sheet Date” has the meaning set forth in Section 3.4(a). 

“Base Merger Consideration” means the sum of (a) the Cash Merger Consideration and (b) the Stock Merger
Consideration (with the value of the Parent Shares calculated by multiplying the aggregate number of Parent Shares issued as Stock Merger Consideration by the Closing Parent Share Price). 

“Business Day” means any day except Saturday, Sunday or any other day on which commercial banks located in San Diego,
California, the State of Maryland or the District of Columbia are authorized or required by Applicable Law to be closed for business. 

“Cancelled Shares” has the meaning set forth in Section 2.6(b). 

“Cap” has the meaning set forth in Section 9.1(d)(ii). 

“Captive Sales” has the meaning set forth in Section 2.12(b)(iii). 

  
 3 

 “Cash Merger Consideration” means the portion of the Base Merger
Consideration payable in cash to Company Shareholders pursuant to the terms of this Agreement, which shall be an amount equal to (a) $42,000,000 plus or minus (as applicable) (b) the Working Capital Adjustment Amount, and
plus or minus (as applicable) (c) the Net Cash Adjustment Amount. 
 “Cash Ratio” means the quotient of
(a) the Cash Merger Consideration divided by (b) the Base Merger Consideration. 
 “CERCLA” means the federal
Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. Section 9601, et seq., as amended. 

“Change of Control” means, with respect to a Person, the occurrence of any of the following events: (i) an acquisition
of such Person by another Person by means of any transaction or series of related transactions (including, without limitation, any reorganization, merger or consolidation but excluding any merger effected exclusively for the purpose of changing the
domicile of such Person), or (ii) a sale of all or substantially all of the assets of such Person, so long as in either case such Person’s stockholders of record immediately prior to such transaction will, immediately after such
transaction, hold less than fifty percent (50%) of the voting power of the surviving or acquiring Person. 
 “Claim Notice”
has the meaning set forth in Section 9.3(a). 
 “Claims” has the meaning set forth in
Section 6.13(b). 
 “Claims Period” has the meaning set forth in
Section 9.3(d). 
 “Closing” has the meaning set forth in Section 2.2.

 “Closing Balance Sheet” has the meaning set forth in Section 2.14(a). 

“Closing Certificate” has the meaning set forth in Section 2.14(a). 

“Closing Date” has the meaning set forth in Section 2.2. 

“Closing Cash” means an amount equal to the Company’s consolidated cash and cash equivalents (excluding restricted cash
and security deposits) as of the Closing determined in accordance with the Accounting Rules. 
 “Closing Parent Share
Price” means $10.46. 
 “Closing Purchase Price” means an amount equal to the Base Merger Consideration as set
forth in the Estimated Closing Certificate. 
 “COBRA” has the meaning set forth in
Section 3.20(b). 
 “Code” means the Internal Revenue Code of 1986, as amended. 

“Company” has the meaning set forth in the introductory paragraph. 

“Company Board” has the meaning set forth in the Recital D. 

  
 4 

 “Company Business” means the operation of the business of the Company as
currently conducted and as currently proposed by the Company to be conducted, including the design, manufacture and sale of mechanical systems used in the aerospace industry. 

“Company Common Stock” has the meaning set forth in Recital C. 

“Company Employee Plans” has the meaning set forth in Section 3.20(a). 

“Company Fundamental Representations” has the meaning set forth in Section 9.1(b). 

“Company Gross Margin” has the meaning set forth in Section 2.12(b)(iv). 

“Company Gross Revenue” has the meaning set forth in Section 2.12(b)(v). 

“Company Intellectual Property” means the Company Owned Intellectual Property and the Company Licensed Intellectual Property.

 “Company Licensed Intellectual Property” means Intellectual Property owned by any Person other than Company that
(i) is used by or licensed or sublicensed to the Company or (ii) for which Company has received from such Person a release, waiver, covenant not to sue or assert or other immunity from suit or similar contractual covenant. 

“Company Material Adverse Effect” means any change, event, violation, inaccuracy, circumstance or effect (each, an
“Effect”) that, individually or in the aggregate, (x) is or is reasonably likely to be materially adverse to the financial condition, properties, assets, liabilities, business, operations, results of operations of the
Company or (y) has or is reasonably likely to have a material adverse effect on the ability of the Company to consummate the Merger and the other transactions contemplated hereby; provided, however, that any Effect arising from the following
shall not constitute a Company Material Adverse Effect: (i) general economic, political or business conditions or changes therein (including commencement, continuation or escalation of war, armed hostilities or national or international
calamity, changes in interest or exchange rates or any governmental shutdown or slowdown) or any change generally affecting the industry of the Company, provided that such changes shall not have affected the target in a materially disproportionate
manner as compared to other companies operating in the target’s line of business, (ii) any act of terrorism, similar calamity, national emergency, pandemic or war (whether or not declared) or any escalation or worsening of any of the
foregoing, including the COVID-19 pandemic, (iii) changes in accounting principles or interpretation thereof, including GAAP, (iv) changes in any laws, rules, regulations, orders, enforcement
policies or other binding directives issued by any Governmental Entity, (v) the availability or cost of equity, debt or other financing to Parent, (vi) the entry into or announcement of this Agreement or any Transaction Document, the
pendency or consummation of the transactions contemplated hereby or thereby or the performance of this Agreement or any Transaction Document, including any adverse change in customer, supplier, governmental, landlord, employee or similar
relationships resulting therefrom or with respect thereto, (vii) the compliance with the terms of this Agreement or any Transaction Document or the taking of any action (or the omission of any action) expressly required by this Agreement or any
Transaction Document or taken (or omitted to be taken) with the written consent of Parent, or (viii) any act of God or natural disaster, (ix) any changes in geopolitical conditions. 

“Company Owned Intellectual Property” means all Intellectual Property owned, purported to be owned (whether owned
singularly or jointly with a third party or parties), filed by, held in the name of, or assigned to the Company as of the Agreement Date, including but not limited to Company Registered Intellectual Property. 

  
 5 

 “Common Per Share Cash Consideration” means the amount of cash payable in
respect of the Common Per Share Consideration as set forth in the Estimated Closing Certificate, which shall be equal to the product of (a) the Common Per Share Consideration multiplied by (b) the Cash Ratio. 

“Common Per Share Consideration” means the amount of Base Merger Consideration payable in respect of each share of Company
Common Stock pursuant to the terms of this Agreement as set forth in the Estimated Closing Certificate, which amount shall be equal to the quotient of (a) the Base Merger Consideration divided by (b) the Fully Diluted Shares Outstanding.

 “Common Per Share Stock Consideration” means the number of Parent Shares issuable in respect of the Common Per Share
Consideration as set forth in the Estimated Closing Certificate, which shall be equal to the product of (a) the Common Per Share Consideration multiplied by (b) the Stock Ratio. 

“Company Product(s)” means each and all services and products manufactured or developed (including services and products for
which development is ongoing) by or on behalf of the Company, whether at any time in the past, as of the Agreement Date or currently under development. 

“Company Registered Intellectual Property” means all Registered Intellectual Property that is included in the Company Owned
Intellectual Property. 
 “Company Shareholders” has the meaning set forth in Recital D. 

“Company Technology” means all Company Products and all other Technology owned by or licensed to the Company as of the
Agreement Date or at any time in the past, or purported to be owned by or licensed to the Company as of the Agreement Date or at any time in the past, and that is used or was used by or on behalf of the Company in connection with the conduct of the
Company Business. 
 “Company’s Current Facilities” has the meaning set forth in
Section 3.18. 
 “Company’s Facilities” has the meaning set forth in
Section 3.18. 
 “Confidentiality Agreement” has the meaning set forth in
Section 6.2(a). 
 “Contract” means any contract, agreement or arrangement, whether written or
oral. 
 “Copyrights” means all copyrights, copyrightable works and mask works (including all applications and
registrations for each of the foregoing), and all other rights corresponding thereto throughout the world, including economic rights in copyrights. 

“Cost Accounting Standards” means the Cost Accounting Standards promulgated by the U.S. Cost Accounting Standards Board. 

“D&O Tail Policy” has the meaning ascribed to it in Section 6.14(c). 

“Damages” has the meaning set forth in Section 9.1(a). 

“DC Code” has the meaning set forth in Recital C. 

“DGCL” has the meaning set forth in Recital C. 

  
 6 

 “Disability” means, with respect to an employee, such employee’s
inability, due to physical or mental incapacity, to perform the essential functions of his or her job, with or without reasonable accommodation, for one hundred eighty (180) days out of any three hundred sixty-five (365) day period. Any
question as to the existence of the employee’s Disability as to which the employee and the Parent cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to the employee and the Parent. The
determination of Disability made in writing to the Parent and the employee shall be final and conclusive for all purposes of this Agreement. 

“Disclosure Schedule” has the meaning set forth in Section 3. 

“Disputed Items” has the meaning set forth in Section 2.14(b). 

“Dissenting Shares” has the meaning set forth in Section 2.7. 

“Draft Earnout Report” has the meaning set forth in Section 2.12(c)(i). 

“Earnout Acceleration Event” has the meaning set forth in Section 2.12(b)(xviii). 

“Earnout Period” has the meaning set forth in Section 2.12(b)(vi). 

“Earnout Revenue” has the meaning set forth in Section 2.12(b)(vii). 

“Effect” has the meaning set forth in the definition of Material Adverse Effect. 

“Effective Time” has the meaning set forth in Section 2.2. 

“Encumbrance” means any lien, pledge, hypothecation, charge, mortgage, security interest, encumbrance, option, right of first
refusal, right of first negotiation, equitable interest, preemptive right, community property interest, title retention or title reversion agreement, prior assignment, or any other encumbrance or restriction of any nature, whether accrued, absolute,
contingent or otherwise (including any restriction on the transfer or licensing of any asset, any restriction on the receipt of any income derived from any asset, any restriction on the use of any asset and any restriction on the possession,
exercise or transfer of any other attribute of ownership of any asset). 
 “Environmental Laws” means any applicable
foreign, federal, state or local governmental laws (including common laws), statutes, ordinances, codes, regulations, rules, policies, permits, licenses, certificates, approvals, judgments, decrees, orders, directives, or requirements that pertain
to the protection of the environment, protection of public health and safety, or protection of worker health and safety, or that pertain to the handling, use, manufacturing, processing, storage, treatment, transportation, discharge, release,
emission, disposal, re-use, recycling, or other contact or involvement with Hazardous Materials, including CERCLA and the RCRA. 

“ERISA” has the meaning set forth in Section 3.20(a). 

“ERISA Affiliate” has the meaning set forth in Section 3.20(a). 

“Estimated Closing Balance Sheet” has the meaning set forth in Section 2.8(a)(iii). 

“Estimated Closing Certificate” has the meaning set forth in Section 2.8(a). 

“Estimated Net Cash” means the estimated Net Cash as reflected in the Estimated Closing Certificate and on the Estimated
Closing Balance Sheet. 

  
 7 

 “Estimated Working Capital” means the estimated Working Capital as
reflected in the Estimated Closing Certificate and on the Estimated Closing Balance Sheet. 
 “Expense Fund” has the
meaning set forth in Section 2.11(c). 
 “Expiration Date” has the meaning set forth in
Section 9.1(b). 
 “FAR” means the U.S. Federal Acquisition Regulations. 

“FCPA” means the U.S. Foreign Corrupt Practices Act, 15 U.S.C. 78dd et seq. 

“Final Earnout Report” has the meaning set forth in Section 2.12(c)(iii) 

“Final Net Cash” means the Net Cash as of the Closing Date in accordance with Sections 2.14(a) and 2.14(b).

 “Final Revenue Report” has the meaning set forth in Section 2.12(c)(iii) 

“Final Working Capital” means the Working Capital as of the Closing Date in accordance with Sections 2.14(a) and
2.14(b). 
 “Financial Statements” has the meaning set forth in Section 3.4(a). 

“FMLA” has the meaning set forth in Section 3.20(h). 

“Fraud” means common law fraud under the laws of the State of Delaware. 

“Fully Diluted Shares Outstanding” means the number of shares of Company Common Stock outstanding immediately prior to the
Closing. 
 “GAAP” means United States generally accepted accounting principles. 

“Government Bid” means any outstanding bid, quotation, proposal or grant application by the Company which, if accepted or
awarded, would result in a Government Contract. 
 “Government Contract” means any Contract (including any
prime contract, subcontract, teaming agreement or arrangement, joint venture, basic ordering agreement, letter contract, purchase order, delivery or task order, grant, cooperative agreement, awards under the Small Business Innovation Research or
Small Business Technology Transfer programs, change order or other arrangement of any kind in writing) entered into by the Company with any Governmental Entity or with any prime contractor or upper-tier subcontractor that by its terms relates to or
identifies a Contract where any Governmental Entity is a party thereto by which the Company has agreed to provide goods or services (including one or more licenses) to such Governmental Entity, prime contractor, or upper-tier subcontractor or to any
third party (including the public) on behalf of such Governmental Entity, prime contractor or upper-tier subcontractor. 

“Governmental Entity” means any federal, state, local or foreign government or political subdivision thereof, or any agency
or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules,
regulations or orders of such organization or authority have the force of law), or any arbitrator, court or tribunal of competent jurisdiction. 

  
 8 

 “Government Involvement” has the meaning set forth in
Section 3.9(i). 
 “Government Officials” has the meaning set forth in
Section 3.25(a)(iii). 
 “Hazardous Materials” means any material, chemical, compound, substance,
mixture or by-product that is identified, defined, designated, listed, restricted or otherwise regulated under Environmental Laws as a “hazardous constituent,” “hazardous substance,”
“hazardous material,” “acutely hazardous material,” “extremely hazardous material,” “hazardous waste,” “hazardous waste constituent,” “acutely hazardous waste,” “extremely hazardous
waste,” “infectious waste,” “medical waste,” “biomedical waste,” “pollutant,” “toxic pollutant,” “contaminant” or any other formulation or terminology intended to classify or identify
substances, constituents, materials or wastes by reason of properties that are deleterious to the environment, natural resources, worker health and safety, or public health and safety, including ignitability, corrosivity, reactivity,
carcinogenicity, toxicity and reproductive toxicity. The term “Hazardous Materials” shall include any “hazardous substances” as defined, listed, designated or regulated under CERCLA, any “hazardous wastes” or
“solid wastes” as defined, listed, designated or regulated under RCRA, any asbestos or asbestos-containing materials, any polychlorinated biphenyls, and any petroleum or hydrocarbonic substance, fraction, distillate or by-product. 
 “HIPAA” means, collectively, the Health Insurance Portability and
Accountability Act of 1996, Public Law 104-191 and the regulations promulgated thereunder. 

“Historical GAAP” has the meaning set forth in the definition of Accounting Rules. 

“Historical Principles” has the meaning set forth in the definition of Accounting Rules. 

“Holdback Amount” means, collectively, the Adjustment Holdback Amount and the Indemnity Holdback Amount. 

“Indebtedness” means (i) all indebtedness of the Company for borrowed money (other than current trade payables incurred
in the ordinary course of business consistent with past practices), (ii) all long or short term debt obligations of the Company evidenced by notes, bonds, debentures or similar instruments, (iii) all capital lease obligations,
(iv) all obligations of the Company under any currency, interest rate or other hedging agreement or arrangement, (v) any obligations secured by a lien on the assets of the Company (other than a Permitted Encumbrance), (vi) all direct and
indirect guarantees made by the Company with respect to the foregoing clauses (i) through (v), (vii) all reimbursement obligations under any letters of credit (whether drawn or undrawn), (viii) any unpaid interest, prepayment penalties,
premiums, costs and fees that would arise or become due as a result of the prepayment of any of the obligations described in the foregoing clauses (i) through (vii), and (ix) all unpaid income Taxes of the Company for any Pre-Closing Tax Period, which shall not be an amount less than zero, including for the avoidance of doubt, any income Taxes of the Company arising out of or resulting from the transactions contemplated by the
Agreement. 
 “Indemnity Holdback Amount” means $1,500,000. 

“Indemnity Holdback Termination Date” means the date which is twelve (12) months following the Closing Date. 

“Independent Accounting Firm” means PricewaterhouseCoopers LLP or such other independent accounting firm of national
reputation selected by Parent and reasonably acceptable to the Shareholder Representative. 

  
 9 

 “Information Systems” has the meaning set forth in
Section 3.11(b). 
 “Insurance Policies” has the meaning set forth in
Section 3.21(a). 
 “Insurer” means the insurer under the R&W Insurance Policy. 

“Intellectual Property” means any and all of the following in any country: (a)(i) Patents, (ii) Trademarks,
(iii) rights in domain names and domain name registrations, uniform resource locators associated with the Internet (collectively, “domain names”) (iv) Copyrights, (v) Trade Secrets, and (vi) other intellectual
property rights (whether or not appropriate steps have been taken to protect such rights under Applicable Law); and (b) the right (whether at law, in equity, by contract or otherwise) to use, practice or otherwise exploit any of the foregoing.

 “International Trade Law” means U.S. statutes, laws and regulations applicable to international transactions, including
the Export Administration Act, the Export Administration Regulations, the FCPA, the Arms Export Control Act, the International Traffic in Arms Regulations, the International Emergency Economic Powers Act, the Trading with the Enemy Act, the U.S.
Customs laws and regulations, the Foreign Asset Control Regulations, and any regulations or orders issued thereunder. 

“Inventory” means inventory finished goods, raw materials, work in progress, packaging, supplies, parts, Company Products and
other inventories related to the Company Business. 
 “Key Employee” means any of Mike Whalen and Walter Holemans. 

“Key Employee Agreements” has the meaning set forth in Recital I. 

“Knowledge of the Company” or “Company’s Knowledge” or similar terms means the actual knowledge of any
of Key Employee, Sam Francis and Joe Reid; provided, however, that each such individual shall be deemed to have actual “knowledge” of a fact or matter if such individual would reasonably be expected to discover or become
aware of that fact or matter in the course of carrying out a due inquiry with respect to those individuals having responsibility at the Company for such fact or matter. 

“Law” means any federal, state, county, city, municipal, foreign, or other governmental statute, law, rule, regulation,
ordinance, order, code, treaty or requirement (including pursuant to any settlement agreement or consent decree) and any Permit granted under any of the foregoing, or any requirement under the common law, or any other pronouncement having the effect
of law of any Governmental Entity, in each case as in effect as of the Closing Date. 
 “Lease” or
“Leases” has the meaning set forth in Section 3.16. 
 “Liability” means any
direct or indirect liability, Indebtedness, assessment, expense, claim, loss, damage, deficiency or obligation, known or unknown, disputed or undisputed, joint or several, vested or unvested, executory or not, fixed or unfixed, choate or inchoate,
liquidated or unliquidated, secured or unsecured, determinable or undeterminable, accrued or unaccrued, absolute or not, actual or potential, contingent or otherwise. 

“Lock-up Agreement” has the meaning set forth in
Section 2.9(c)(iii). 
 “Material Contract” has the meaning set forth in
Section 3.14(b). 
 “Measurement Time” means immediately prior to Closing. 

  
 10 

 “Merger” has the meaning set forth in Recital C. 

“Merger Consideration” means an amount equal to the Closing Purchase Price, payable in cash and Parent Shares in accordance
with the terms of this Agreement, as may be adjusted pursuant to Section 2.14, and the Achieved Earnout Amount, if any, pursuant to Section 2.12. 

“Merger Sub” has the meaning set forth in the introductory paragraph. 

“Merger Sub Board” has the meaning set forth in Recital E. 

“Net Cash” means (i) Closing Cash, less (ii) the sum of (A) all outstanding Indebtedness of the Company as of
the Measurement Time and (B) the amount of all unpaid Transaction Expenses as of the Measurement Time. 
 “Net Cash Adjustment
Amount” has the meaning set forth in Section 2.8(c). 
 “OCI” has the meaning set
forth in Section 3.15(v). 

“Off-the-Shelf Software” means Software
available for license from a third party vendor without the need for customization, and for a license fee that does not exceed $12,000 per year. 

“OFAC” has the meaning set forth in Section 3.24(c). 

“Open Source Materials” means (i) any Software that contains, or is derived from, any Software that is distributed as
free Software, open source Software (e.g., Linux) or under similar licensing or distribution models, (ii) any Software that requires as a condition of use, modification or distribution that such Software or other Software distributed with such
Software owned by Company: (A) be disclosed or distributed in source code form, (B) be licensed for the purpose of making derivative works, or (C) be redistributable at no charge. Open Source Materials includes Software licensed or
distributed under any of the following licenses or distribution models, or licenses or distribution models similar to any of the following: (A) GNU’s General Public License (GPL) or Lesser/Library GPL (LGPL); (B) the Artistic License
(e.g., PERL); (C) the Mozilla Public License; (D) the Netscape Public License; (E) the Sun Community Source License (SCSL); (F) the Sun Industry Source License (SISL); (G) the Apache Software License; and (H) the Sleepycat license.

 “Order” means any judgment, writ, decree, stipulation, determination, decision, award, ruling, injunction, temporary
restraining order, or other order of a Governmental Entity of competent jurisdiction. 
 “Organizational Documents” means,
with respect to an entity, the certificate of incorporation, by-laws, articles of organization, operating agreement, certificate of formation or similar governing documents of such entity. 

“OSHA” has the meaning set forth in Section 3.21(i). 

“Parent” has the meaning set forth in the introductory paragraph. 

“Parent Board” has the meaning set forth in Recital E. 

“Parent Indemnified Person” has the meaning set forth in Section 9.1(a). 

“Parent Shares” means Rocket Lab USA, Inc. common stock, $0.0001 par value. 

  
 11 

 “Patents” means all issued patents (including utility and design patents)
and pending patent applications (including invention disclosures, records of invention, certificates of invention and applications for certificates of inventions and priority rights filed with any Registration Office), including all non-provisional and provisional patent applications, substitutions, continuations, continuations-in-part, divisions, renewals,
revivals, reissues, re-examinations and extensions thereof. 
 “Paying Agent” means
Wilmington Trust, National Association (or such other Persons as may hereafter be reasonably acceptable to Parent and the Company). 

“Payment Schedule” has the meaning set forth in Section 2.8(a)(ix). 

“Permit” means any federal, state, county, local or foreign governmental consent, license, permit, grant, franchise,
agreement, waiver or other authorization of any Governmental Entity. 
 “Permitted Encumbrances” means (a) any lien
for current Taxes not yet delinquent or being contested in good faith and for which adequate reserves have been established; (b) statutory liens of landlords, liens of carriers, warehousepersons and mechanics, and purchase money liens that in
each case are incurred in the ordinary course of business for sums not yet due and payable or being contested in good faith; (c) liens incurred or deposits made in connection with workers’ compensation, unemployment insurance and other
similar types of social security programs or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, performance and return of money bonds and similar obligations, in each case in the
ordinary course of business, consistent with past practice; and (d) restrictions on transfer of securities under applicable securities laws. 

“Person” means any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock
company, trust, unincorporated entity or Governmental Entity. 
 “Personal Data” means any information relating to an
identified or identifiable natural person; an identifiable natural person is one who can reasonably be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online
identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity or that natural person. 

“Plan of Merger” means the Plan of Merger attached as Exhibit C. 

“Pre-Closing Period” has the meaning set forth in
Section 5.1(a). 
 “Pre-Closing Tax Period” means all
taxable periods ending on or before the Closing Date and the portion through the end of the Closing Date for any Straddle Period. 

“Pre-Closing Taxes” means (a) all Taxes (or the
non-payment thereof) of the Company for the Pre-Closing Tax Period, (b) all Taxes of any member of an affiliated, consolidated, combined or unitary group of
which the Company (or any predecessor of the Company) is or was a member on or prior to the Closing Date, including pursuant to Treasury Regulation Section 1.1502-6 or any analogous or similar state,
local, or non-U.S. law or regulation, and (c) any and all Taxes of any Person imposed on the Company as a transferee or successor, by contract or pursuant to any Applicable Law, which Taxes relate to an
event or transaction occurring before the Closing, excluding Taxes to the extent included in the calculation of Working Capital. 

“Prohibited Party Lists” has the meaning set forth in Section 3.24(c). 

  
 12 

 “Processing” means any operation or set of operations which is performed on
Personal Data or on sets of Personal Data, whether or not by automated means, such as collection, recording, organization, structuring, storage, adaptation or alteration, retrieval, consultation, use, disclosure by transmission, dissemination or
otherwise making available, alignment or combination, restriction, erasure, or destruction. 
 “Pro Rata Portion” means
with respect to each Company Shareholder, an amount equal to the quotient, expressed as a percentage, obtained by dividing (i) the amount of consideration payable to such Company Shareholder at the Closing pursuant to
Section 2.6, divided by (ii) the aggregate amount payable to all Company Shareholders at the Closing pursuant to Section 2.6, and in either case prior to any deductions for the Holdback
Amount, the Expense Fund, or any withholding Taxes. The Pro Rata Portion for each Company Shareholder shall be set forth on the Payment Schedule. 

“R&W Insurance Policy” means, collectively, (A) the buyer-side representation and warranty insurance policy to be
issued by the Insurer for the benefit of Parent, its successors, permitted assigns and Affiliates (including, after the Closing Date, the Surviving Corporation) and each of the foregoing’s respective Representatives, which shall, among other
things, (i) have a coverage limit of $6,000,000, (ii) provide customary coverage for certain Damages incurred by the Parent Indemnified Persons with respect to breaches of representations and warranties contained in
Section 3 of this Agreement, and (iii) contain an express waiver of subrogation and contribution rights against the Company Shareholders, their Affiliates, and their respective Representatives, except and only to the
extent of Fraud, and then only with the right to subrogate against such Person who committed such Fraud. The foregoing Persons shall be express third-party beneficiaries of such anti-subrogation provision and (B) the buyer-side representation
and warranty excess only insurance policy for the benefit of Parent, its successors, permitted assigns and Affiliates (including, after the Closing Date, the Surviving Corporation) and each of the foregoing’s respective Representatives, which
shall, among other things, (i) have a coverage limit of $60,000,000, and (ii) provide customary coverage for certain Damages incurred by the Parent Indemnified Persons with respect to breaches of Company Fundamental Representations under
this Agreement, and (iii) contain an express waiver of subrogation and contribution rights against the Company Shareholders, their Affiliates. 

“R&W Insurance Premium” means the premium, underwriting fees, brokerage fees, taxes, surplus lines tax and fees required
by Law and any other costs and expenses associated with obtaining the R&W Insurance Policy and binding coverage thereunder. 

“Registered Intellectual Property” means all Intellectual Property for which registrations have been obtained or applications
for registration have been filed with a Registration Office. 
 “Registration Office” means the United States Patent and
Trademark Office, United States Copyright Office, or all equivalent foreign patent, trademark, copyright offices or other Governmental Entity. 

“Related Person” means (i) any executive officer, director, or direct or indirect holder of 1% or more of the shares of
Company Common Stock, (ii) any Affiliate, officer, director or manager of any of the foregoing, or (iii) any immediate family member of any of the foregoing natural Persons. 

“Releasing Affiliates” has the meaning set forth in Section 6.13(a). 

“Released Parties” has the meaning set forth in Section 6.13(a). 

  
 13 

 “Representative Confirmation Letters” means written confirmations, in a
form reasonably satisfactory to Parent, from those Representatives of the Company identified by Parent as to all amounts paid, owed and to be owed by the Company with respect to services performed by them through the Closing Date (or following the
Closing Date at the pre-Closing direction of the Company or the Company Shareholders) with respect to the transactions contemplated by the Agreement that constitute Transaction Expenses. 

“Representatives” means officers, directors, partners, trustees, executors, employees, agents, attorneys, accountants and
advisors. 
 “Restricted Benefits” has the meaning set forth in Section 3.25(a)(iv). 

“Restrictive Covenants Agreement” has the meaning set forth in Recital F. 

“Retention Cap” means $600,000. 

“Returns” has the meaning set forth in Section 3.19(a). 

“SEC” means the Securities and Exchange Commission of the United States. 

“Securities Act” means the Securities Act of 1933, as amended. 

“Shareholder Representative” has the meaning set forth in the introductory paragraph. 

“Shareholder Representative Response” has the meaning set forth in Section 2.12(c)(iii). 

“Significant Customers” has the meaning set forth in Section 3.27. 

“Significant Suppliers” has the meaning set forth in Section 3.28. 

“Software” means any computer program, operating system, applications system, firmware or software code of any nature,
whether operational, under development or inactive, including all object code, source code, data files, rules, definitions or methodology derived from the foregoing and any derivations, updates, enhancements and customization of any of the
foregoing, processes, know-how, operating procedures, methods and all other Intellectual Property embodied with the foregoing, technical manuals, user manuals and other documentation thereof, whether in
machine-readable form, programming language or any other language or symbols and whether stored, encoded, recorded or written on disk, tape, film, memory device, paper or other media of any nature. 

“Stock Holdback Agreement” has the meaning set forth in Section 2.11(d). 

“Stock Merger Consideration” means the portion of Base Merger Consideration payable to Company Shareholders pursuant to the
terms of this Agreement, which shall be equal to such number of Parent Shares as is determined by dividing (i) $18,000,000 by (ii) the Closing Parent Share Price. 

“Stock Ratio” means quotient of (a) the Stock Merger Consideration divided by (b) the Base Merger Consideration.

 “Straddle Period” has the meaning set forth in Section 6.12(a). 

“Support Agreement” means a Support Agreement, substantially in the form attached hereto as Exhibit D. 

“Surviving Corporation” has the meaning set forth in Section 2.1. 

  
 14 

 “Tax” and, collectively, “Taxes” mean any and all federal,
state and local taxes of any country, assessments and other governmental charges, duties, impositions and liabilities, including taxes based upon or measured by gross receipts, income, profits, sales, use and occupation, and value added, ad valorem,
stamp transfer, franchise, withholding, payroll, recapture, employment, excise and property taxes, together with all interest, penalties and additions imposed with respect to such amounts and any obligations under any Contract with any other Person
with respect to such amounts and including any liability for taxes of a predecessor entity. 
 “Tax Authority” means any
Governmental Entity with the authority to monitor, oversee, impose, regulate, administer or collect Taxes. 
 “Tax Contest”
has the meaning set forth in Section 6.12(c). 
 “Tax Representations” has the meaning set forth
in Section 9.1(b). 
 “Tax Returns” means all returns, declarations, reports, claims for refund,
information returns or other documents (including any related or supporting schedules, statements or information, or any amendment thereto) filed with or submitted to, or required to be filed with or submitted to, any Governmental Entity in
connection with the determination, assessment, or collection of any Taxes of any party or the administration, implementation, or enforcement of or compliance with any Laws relating to any Taxes. 

“Technology” means (a) all (i) computer software and other works of authorship (including software, firmware, and
middleware in source code and executable code form, architecture, databases, plugins, libraries, APIs, interfaces, algorithms, models, reference designs, and documentation); (ii) inventions (whether or not patentable), designs, discoveries and
improvements; (iii) proprietary, confidential and/or technical data and information, Trade Secrets and know how; (iv) databases, data compilations and collections, and customer and technical data, (v) methods and processes, and
(vi) devices, prototypes, designs, specifications and schematics and (b) tangible items constituting, disclosing, embodying or from which any Intellectual Property was derived, including all versions thereof. 

“Threshold” has the meaning set forth in Section 9.1(c). 

“Trade Secrets” means (i) all know-how, proprietary, confidential and/or non-public information, however documented and whether or not documented, and (ii) all trade secrets within the meaning of Applicable Law. The term “Trade Secrets” includes concepts, ideas, knowledge,
rights in research and development, financial, marketing and business data, pricing and cost information, plans (including business and marketing plans), algorithms, formulae, inventions, processes, techniques, technical data, designs, drawings
(including engineering and auto-cad drawings), specifications, databases, blue prints, and customer and supplier lists and information, in each case that has or derives economic value, actual or potential, as
a result of being a secret and not known to the public, whether patentable or not and whether or not reduced to practice. 

“Trademarks” means all (i) trademarks, service marks, logos, insignias, designs, trade dress, symbols, trade names and
fictitious business names, emblems, signs, insignia, slogans, other similar designations of source or origin and general intangibles of like nature (including all applications and registrations for each of the foregoing and including unregistered
trademarks), and (ii) all goodwill associated with or symbolized by any of the foregoing. 

  
 15 

 “Transaction Documents” means this Agreement and each other certificate,
schedule, agreement or document delivered pursuant to this Agreement, the Voting and Support Agreements, Support Agreements, the Restrictive Covenants Agreements, the Stock Holdback Agreements and Key Employee Agreements. 

“Transaction Expenses” means any fee, cost, expense, payment, expenditure, liability (contingent or otherwise) or obligation
of the Company (whether incurred prior to or on the date of the Agreement or between the date of the Agreement and the Closing), including any fees and expenses of legal counsel, accountants and tax advisors, the amount of fees and expenses payable
to financial and tax advisors, investment bankers and brokers of the Company, and any such fees and expenses incurred by the Company Shareholders or the Company’s employees, paid for or to be paid for by the Company, that: (a) relates
directly or indirectly to (i) the proposed disposition of all or a portion of the business of the Company, or the process of identifying, evaluating and negotiating with prospective purchasers of all or a portion of the business of the Company,
(ii) the investigation and review conducted by Parent and its Representatives, and any investigation or review conducted by other prospective purchasers of all of a portion of the business of the Company, with respect to the business of the
Company (and the furnishing of information to Parent and its Representatives and such other prospective purchasers and their Representatives in connection with such investigation and review), (iii) the negotiation, preparation, review, execution,
delivery or performance by the Company of the Agreement (including the Disclosure Schedule), or any certificate, opinion, agreement or other instrument or document delivered or to be delivered in connection with this Agreement or the transactions
contemplated hereby, (iv) the preparation and submission by the Company of any filing or notice required to be made or given in connection with the Merger, and the obtaining of any consent required to be obtained by the Company in connection
with any of such transactions, or (v) the consummation of the Merger or any of the transactions contemplated by this Agreement; or (b) arises or is expected to arise, is triggered or becomes due or payable, in whole or in part, as a direct
or indirect result of the consummation (whether alone or in combination with any other event or circumstance) of the Merger or any of the other transactions contemplated by this Agreement, including any severance, end-of-service gratuity, stay or retention payments or bonuses, change of control bonuses, transaction or sale bonuses and similar arrangements or obligations arising with respect to any employee or other
service provider of the Company in connection with the Merger or any of the transactions contemplated hereby (a “Change of Control Payment”). Without limiting the foregoing, Transaction Expenses shall include the employer’s
share of any social security, Medicare, unemployment or payroll Taxes or similar amounts payable in connection with any Change of Control Payment and shall also include fifty percent (50%) of the costs and expenses related to the D&O Tail Policy
and fifty percent (50%) of the R&W Insurance Premium. 
 “Transactions” means the Merger and the other transactions
contemplated by this Agreement and the Transaction Documents. 
 “Voting and Support Agreements” has the meaning set forth
in Recital G. 
 “WARN Act” has the meaning set forth in Section 3.21(h). 

“Working Capital” means, without duplication, (i) the total current assets of the Company as of 12:01 a.m. local
time on the Closing Date, less (ii) all current liabilities of the Company as of 12:01 a.m. local time on the Closing Date, calculated in each case in accordance with the Agreed Principles. For the avoidance of doubt, Working Capital
shall not include Closing Cash, Transaction Expenses and Indebtedness. 
 “Working Capital Adjustment Amount” has the
meaning set forth in Section 2.8(b). 

  
 16 

 “Working Capital Target” means $3,895,000. 

2. The Merger. 
 2.1 The
Merger. At the Effective Time (as defined in Section 2.2) and subject to and upon the terms and conditions of this Agreement, the Plan of Merger and the applicable provisions of the DGCL and the DC Code, Merger
Sub shall be merged with and into the Company, the separate corporate existence of Merger Sub shall cease and the Company shall continue as the surviving corporation. The Company as the surviving corporation after the Merger is hereinafter sometimes
referred to as the “Surviving Corporation.” 
 2.2 Closing; Effective Time. The closing of the transactions
contemplated hereby (the “Closing”) shall take place as soon as practicable, but no later than two (2) business days, after the satisfaction or waiver of each of the conditions set forth in
Section 6.14(a) hereof, or at such other time as the parties hereto agree (the “Closing Date”). The Closing shall take place at DLA Piper LLP (US), 4365 Executive Drive, Suite 1100, San Diego
California 92121, or at such other location as the parties hereto agree. In connection with the Closing, the parties hereto shall cause the Merger to be consummated by filing the Plan of Merger, together with any required certificates, with the
Secretary of State of the State of Delaware and the Department of Consumer and Regulatory Affairs, Corporations Division, of the District of Columbia, in accordance with the relevant provisions of the DGCL and the DC Code (the time of such filing
being the “Effective Time”). 
 2.3 Effect of Merger. At the Effective Time, the effect of the Merger shall be as
provided in this Agreement, the Plan of Merger and the applicable provisions of the DGCL and the DC Code. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, all the property, rights, privileges, powers and
franchises of the Company and Merger Sub shall vest in the Surviving Corporation, and all debts, liabilities and duties of the Company and Merger Sub shall become the debts, liabilities and duties of the Surviving Corporation. 

2.4 Certificate of Incorporation; Bylaws. 

(a) The articles of incorporation of the Surviving Corporation as in effect immediately prior to the Effective Time, shall be the articles of
incorporation of the Surviving Corporation until thereafter amended. 
 (b) The Bylaws of Company, as in effect immediately prior to the
Effective Time, shall be the Bylaws of the Surviving Corporation until thereafter amended. 
 2.5 Directors and Officers. At the
Effective Time, the directors and officers of Merger Sub immediately prior to the Effective Time shall be the directors and officers of the Surviving Corporation, in each case until their respective successors are duly elected or appointed and
qualified. 
 2.6 Merger Effect on Capital Stock. At the Effective Time, by virtue of the Merger and without any action on the part of
Parent, Merger Sub, the Company or the holders of the following securities: 
 (a) Company Common Stock. Each share of Company Common
Stock issued and outstanding immediately prior to the Effective Time (excluding Dissenting Shares, if any, and any shares to be cancelled and retired in accordance with Section 2.6(b)) shall be converted, without any action
on the part of the holder thereof, into the right to receive (without interest, and subject to and in accordance with the terms of this Agreement) the Merger Consideration, upon the terms and subject to the conditions set forth in this Agreement,
including the holdback provisions set forth in Section 2.11 and the indemnification provisions set forth in Section 9; 

  
 17 

 (b) Certain Company Common Stock. Each share of Company Common Stock that is owned
by Parent, Merger Sub or the Company (as treasury stock or otherwise) or any of their Affiliates shall automatically be cancelled and retired and shall cease to exist, and no consideration shall be delivered in exchange therefor (such shares of
Company Common Stock being referred to collectively as the “Cancelled Shares”); and 
 (c) Capital Stock of Merger
Sub. Each share of common stock of Merger Sub issued and outstanding immediately prior to the Effective Time shall be automatically converted into one (1) fully paid and nonassessable share of the common stock of the Surviving Corporation,
and thereupon each certificate evidencing ownership of shares of common stock of Merger Sub shall thereafter be deemed for all purposes to represent ownership of an equivalent number of shares of common stock of the Surviving Corporation. 

2.7 Dissenting Shares. Notwithstanding any provision of this Agreement to the contrary, shares of Company Common Stock issued and
outstanding immediately prior to the Effective Time and held by a holder who has not voted in favor of adoption of this Agreement or consented thereto in writing and who has properly exercised appraisal rights of such shares of Company Common Stock
in accordance with Section 29-311 of the DC Code (such shares of Company Common Stock being referred to collectively as the “Dissenting Shares” until such time as such holder fails to
perfect or otherwise loses such holder’s appraisal rights under the DC Code with respect to such shares of Company Common Stock) shall not be converted into a right to receive a portion of the Merger Consideration, but shall be canceled and
shall cease to exist, and shall instead represent the right only to such rights as are granted by the DC Code; provided, however, that if, after the Effective Time, such holder fails to perfect, withdraws or loses such holder’s
right to appraisal pursuant to Section 29-311 of the DC Code or if a court of competent jurisdiction shall determine that such holder is not entitled to the relief provided by Section 29-311 of the DC Code, such shares of Company Common Stock shall be treated as if they had been converted as of the Effective Time into the right to receive the applicable portion of the Merger
Consideration, if any, to which such holder is entitled pursuant to this Agreement, without interest thereon. The Company shall provide Parent prompt written notice of any demands received by the Company for appraisal of Company Common Stock, any
withdrawal of any such demand and any other demand, notice or instrument delivered to the Company prior to the Effective Time pursuant to the DC Code that relates to such demand, and the Company shall have the opportunity and right to direct all
negotiations and proceedings with respect to such demands. Except with the prior written consent of Parent, which shall not be unreasonably withheld or delayed, the Company shall not make any payment with respect to, or settle or offer to settle,
any such demands. 
 2.8 Estimated Closing Certificate. 

(a) At least five (5) Business Days prior to the Closing Date, the Company shall deliver to Parent a certificate of the President and
Chief Financial Officer of the Company (the “Estimated Closing Certificate”) setting forth, in reasonable detail: 
 (i)
the Estimated Working Capital; 
 (ii) the Estimated Net Cash; 

  
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 (iii) a proposed balance sheet of the Company as of 12:01 am local time on the anticipated
Closing Date which shall have been prepared in accordance with the Accounting Rules (the “Estimated Closing Balance Sheet”); 

(iv) the Company’s calculation of each of the components of the Estimated Working Capital and the Estimated Net Cash, and the aggregate
amounts thereof; the Company’s calculation of the Base Merger Consideration, the Cash Merger Consideration, the Stock Merger Consideration, and each component thereof; 

(v) itemization of each element of Indebtedness included in Estimated Net Cash and wire instructions with respect to each element thereof;

 (vi) itemization of each element of Transaction Expenses included in Estimated Net Cash and wire instructions with respect to each
element thereof; 
 (vii) the Common Per Share Consideration, the Common Per Share Cash Consideration, the Common Per Share Stock
Consideration, and the number of Fully Diluted Shares Outstanding; 
 (viii) (1) the legal name, email address, and mailing address of each
Company Shareholder immediately prior to the Effective Time, (2) the number of shares of Company Common Stock held by each such Company Shareholder immediately prior to the Effective Time, (3) the Cash Merger Consideration and the Stock
Merger Consideration each Company Shareholder is eligible to receive at the Closing and (4) whether such Company Shareholder has executed and delivered a Support Agreement or a Voting and Support Agreement; 

(ix) a consolidated list reflected in a single tab of the Estimated Closing Certificate presented in Excel format (the “Payment
Schedule”) containing (1) the legal name, email address and mailing address of each Company Shareholder (and, if pursuant to applicable Law the issuance of the Stock Merger Consideration must be made to a Person other than the
applicable Company Shareholder, the legal name, email address, and mailing address of the Person to whom such shares will be issued), (2) the aggregate amount of the Cash Merger Consideration each Company Shareholder is eligible to receive in
respect of the Company Common Stock held by each Company Shareholder, (3) each applicable Company Shareholder’s Pro Rata Portion of each of the Adjustment Holdback Amount and the Indemnity Holdback Amount, and (4) the aggregate number
of Parent Shares issuable as Stock Merger Consideration that each Company Shareholder is eligible to receive; and 
 (x) wire instructions
for any payments to be made to the Company or Paying Agent pursuant to this Agreement. 
 (b) In the event that the Estimated Working
Capital is less than the Working Capital Target, then the Cash Merger Consideration shall be adjusted downward by the amount by which the Estimated Working Capital is less than the Working Capital Target. In the event that the Estimated Working
Capital is greater than the Working Capital Target, then the Cash Merger Consideration shall be adjusted upward by the amount by which the Estimated Working Capital is greater than the Working Capital Target. The adjustments, if any, referred to in
this Section 2.8(b) are referred to herein as the “Working Capital Adjustment Amount.” 
 (c) In
the event that the Estimated Net Cash is a negative amount (i.e., less than $0), then the Cash Merger Consideration shall be adjusted downward by the amount by which the Estimated Net Cash is less than $0. In the event that the Estimated Net Cash is
a positive amount (i.e., greater than $0), the Cash Merger Consideration shall be adjusted upward by the amount by which the Estimated Net Cash is greater than $0. The adjustments, if any, referred to in this Section 2.8(c)
are referred to herein as the “Net Cash Adjustment Amount.” 

  
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 2.9 Surrender and Payment. 

(a) Paying Agent. Prior to the Effective Time, Parent shall appoint the Paying Agent to act as the paying agent in the Merger. 

(b) Delivery of Cash Merger Consideration. At the Effective Time, Parent shall deliver, or cause to be delivered, to the Paying Agent
by wire transfer in immediately available funds, an amount sufficient to permit the payment of the Cash Merger Consideration for the benefit, from and after the Effective Time, of the Company Shareholders in respect of the shares of Company Common
Stock held by such Company Shareholders, less each of (i) such Company Shareholders’ Pro Rata Portion of the Indemnity Holdback Amount and the Adjustment Holdback Amount and (ii) any amounts withheld pursuant to
Section 2.10. In addition, at the Effective Time, Parent shall deliver or cause to be delivered to the Paying Agent an amount in cash sufficient to pay the Transaction Expenses. 

(c) Issuance and Delivery of Stock Merger Consideration. 

(i) All Parent Shares to be issued as Stock Merger Consideration pursuant to Section 2.6 shall be delivered in book
entry form, and such issuance and transfer of ownership of such Parent Shares shall be evidenced by delivery of such shares to the applicable holder by way of book entry transfer recorded in the stock register of Parent. 

(ii) (A) All Parent Shares to be issued as Stock Merger Consideration pursuant to Section 2.9 shall be issued in
reliance on the exemption from registration provided by Regulation D under the Securities Act (and any certificates, if any, and all book-entry entitlements representing such Parent Shares), shall be “restricted securities” within the
meaning of Rule 144 under the Securities Act and shall bear the following legend to the extent applicable (along with any other legends that may be required under applicable Law): 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT
AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933. 
 (iii) The delivery of Stock Merger Consideration to any Company
Shareholder shall be subject to and conditioned upon such Company Shareholder’s execution and delivery of a lock-up agreement, in substantially the form attached hereto as Exhibit E (the “Lock-up Agreement”), with respect to the transfer or disposition of Parent Shares received in connection with the Merger, and entry into certain transactions involving securities related thereto. All Parent
Shares to be issued as Stock Merger Consideration pursuant to Section 2.9 shall bear the following legend to the extent applicable (along with any other legends that may be required under applicable Law): 

  
 20 

 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON SALE OR TRANSFER
CONTAINED IN A LOCK-UP AGREEMENT. SUCH RESTRICTIONS EXPIRE ON _______ __, 2022. 
 (d) Exchange
Procedures. 
 (i) As soon as reasonably practicable following the Closing Date, the Company or the Paying Agent, as applicable, shall
mail or otherwise deliver to each Company Shareholder (A) a letter of transmittal substantially in the form attached hereto as Exhibit F (the “Letter of Transmittal”), (B) instructions for use to obtain payment for the
applicable portion of Base Merger Consideration pursuant to Section 2.6, and (C) any other customary documents as may reasonably be required by Parent pursuant to such instructions, including any customary tax forms
(i.e. IRS Form W-9, an appropriate IRS Form W-8). 
 (ii)
Parent shall, or shall cause the Paying Agent to, no later than the later of the Closing Date or three (3) Business Days after receipt of (A) a Letter of Transmittal duly completed and validly executed in accordance with the instructions
thereto and (B) any other customary documents that Parent may reasonably require in connection therewith, including any customary tax forms (i.e. IRS Form W-9, an appropriate IRS Form W-8 or a similar tax form for corresponding other tax authorities), (1) pay to such Company Shareholder the applicable portion of the Cash Merger Consideration in accordance with
Section 2.6 less such holder’s Pro Rata Portion of the Indemnity Holdback Amount and the Adjustment Holdback Amount, and (2) issue to such Company Shareholder, or, if required by applicable Law, such other
Person to whom such Stock Merger Consideration is to be issued hereunder, the applicable portion of the Stock Merger Consideration in accordance with to Section 2.6, in each case, with respect to the Company Common Stock so
cancelled. 
 (iii) No interest shall be paid or shall accrue on any Merger Consideration payable upon cancellation of any Company Common
Stock. Each outstanding Company stock certificate that prior to the Effective Time represented shares of Company Common Stock (other than Dissenting Shares) shall be deemed from and after the Effective Time, for all purposes, to evidence the right
to receive the portion of the Merger Consideration as provided in this Agreement. 
 (e) Payment to Other Persons. If any portion of
the Merger Consideration is to be paid to a Person other than the Person in whose name the applicable Company stock certificate is registered, it shall be a condition to such payment that (i) shares of Company Common Stock represented by such
applicable Company stock certificate shall have been properly transferred to the Person requesting such payment (provided, however, that the foregoing subsection (i) shall not apply if pursuant to applicable Law the Stock Merger
Consideration must be issued to a Person other than the Person in whose name the applicable Company stock certificate is registered), (ii) the Person requesting such payment shall pay to Parent any transfer Tax or other Tax required as a result of
such payment to a Person other than the registered holder of such Company stock certificate or establish to the reasonable satisfaction of Parent that such Tax has been paid or is not payable, and (iii) in order to receive any Parent Shares as
Stock Merger Consideration, the Person requesting such payment shall have delivered to Parent a duly executed Lock-Up Agreement. 

(f) Unclaimed Merger Consideration. Any portion of the Base Merger Consideration that remains unclaimed by the Company Shareholders
twelve (12) months after the Effective Time shall be returned to Parent, upon demand, and any such Company Shareholders shall thereafter look only to Parent for payment of the applicable Base Merger Consideration; provided, that any such
portion of the Base Merger Consideration payable from the Holdback Amount shall be held and 

  
 21 

 
distributed to the Persons entitled thereto in accordance with the terms of this Agreement, at the respective times and subject to the contingencies specified herein. Notwithstanding the
foregoing, Parent shall not be liable to any Company Shareholder for any amounts paid to a public official pursuant to applicable abandoned property, escheat or similar Laws. Any portion of the Cash Merger Consideration remaining unclaimed by
Company Shareholders as of immediately prior to such time when the amounts would otherwise escheat to or become property of any Governmental Entity shall become, to the extent permitted by applicable Law, the property of Parent free and clear of any
claims or interest of any Person previously entitled thereto, and thereafter Parent shall have no obligation to any Company Shareholder with respect thereto. 

(g) No Further Ownership Rights in Company Common Stock. The applicable portion of the Merger Consideration payable upon the surrender
for exchange of Company Common Stock in accordance with the terms hereof shall, when paid in accordance with the terms of this Agreement, be deemed to have been paid in full satisfaction of all rights pertaining to the shares of Company Common Stock
formerly represented by Company stock certificates, subject to the right to receive distributions of the remaining portion of the Merger Consideration, including the Holdback Amount, the Achieved Earnout Amount, if any, and other amounts to be
disbursed to the Company Shareholders to be paid pursuant to the terms of this Agreement. As of the Effective Time, there shall be no further registration or transfer of Company Common Stock on the stock transfer books of the Surviving Corporation.
If, after the Effective Time, Company stock certificates are presented to the Surviving Corporation for any reason, they shall be canceled and exchanged for the applicable portion of the Merger Consideration provided for, and in accordance with the
procedures set forth, in this Section 2. 
 2.10 Withholding Rights. Each of the Paying Agent, Parent,
Merger Sub, the Surviving Corporation and their respective authorized affiliates shall be entitled to deduct and withhold from the consideration otherwise payable to any Person pursuant to this Agreement such amounts as are required to be deducted
and withheld with respect to the making of such payment under any provision of applicable Law, including U.S. federal, state, local or foreign Tax Law. To the extent that amounts are so deducted and withheld by the Paying Agent, Parent, Merger Sub,
the Surviving Corporation or their respective authorized affiliates, as the case may be, and paid over to the appropriate Governmental Entity, such amounts shall be treated for all purposes of this Agreement as having been paid to the Person in
respect of which the Paying Agent, Parent, Merger Sub, the Surviving Corporation or their respective authorized affiliates, as the case may be, made such deduction and withholding. 

2.11 Holdback Amount, Transaction Expenses and Expense Fund. 

(a) Holdback Amount. On the Closing Date, Parent shall withhold from the portion of the consideration otherwise payable to each Company
Shareholder hereunder, an amount equal to such Company Shareholder’s Pro Rata Portion of the Holdback Amount. 
 (b) Transaction
Expenses. On the Closing Date, Parent shall pay, or cause to be paid, the Transaction Expenses as set forth in the final Representative Confirmation Letters provided by the Company to Parent in accordance with
Section 2.3 hereof. 
 (c) Expense Fund. On the Closing Date, Parent shall deposit, or cause to be
deposited, an aggregate amount equal to $500,000 (the “Expense Fund”) to the Shareholder Representative to be held by the Shareholder Representative as agent and for the benefit of the Company Shareholders in a segregated account to
be used for the purposes of paying directly, or reimbursing the Shareholder Representative for any expenses incurred pursuant to this Agreement. The Shareholder Representative will hold these funds separate from its corporate funds and will not
voluntarily make these funds available to its creditors in the event of bankruptcy. The Shareholder Representative is not 

  
 22 

 
providing any investment supervision, recommendations or advice. The Shareholder Representative shall have no responsibility or liability for any loss of principal of the Expense Fund other than
as a result of its gross negligence or willful misconduct. The Shareholder Representative is not acting as a withholding agent or in any similar capacity in connection with the Expense Fund, and, except as required by Applicable Law, has no Tax
reporting obligations in connection with the Expense Fund. Contemporaneous with or as soon as practicable following the release in full of the Indemnity Holdback Amount, the Shareholder Representative shall distribute the remaining Expense Fund (if
any) to the Company Shareholders based on their respective Pro Rata Portions of such amount. 
 (d) Holdback Equity. On the Closing
Date, Parent and each Key Employee shall enter into a Stock Holdback Agreement, substantially in the form of Exhibit G (the “Stock Holdback Agreement”). 

2.12 Earnout. 
 (a) The
Company Shareholders shall be entitled to an additional payment equal to the applicable Achieved Earnout Amount, if any, as defined in this Section (collectively, the “Achieved Earnout Amount”). 

(b) Certain Definitions. 

(i) “2022 Earnout Period” means January 1, 2022 through December 31, 2022. 

(ii) “2023 Earnout Period” means January 1, 2023 through December 31, 2023. 

(iii) “Captive Sales” means sales by Parent of Company Products.  

(iv) “Company Gross Margin” means (A) the Company Gross Revenue for the Company Products less the costs of goods sold
for such Company Products, divided by (B) the Company Gross Revenue for the Company Products, multiplied by (C) 100%, as determined in accordance with GAAP.  

(v) “Company Gross Revenue” means the total amount of revenue recognized for Company Products sold by the Company during the
applicable measurement period. The Company Gross Revenue for any Company Products sold to an Affiliate of Parent shall be calculated based on the average purchase price paid by third parties for such Company Products during the applicable
measurement period, or, if no such Company Products were sold during the applicable measurement period, the reasonable good faith arms-length purchase price for such Company Products. 

(vi) “Earnout Period” means each of the 2022 Earnout Period and the 2023 Earnout Period. 

(vii) “Earnout Revenue” means: 

(A) If the Company Gross Margin for the Company Gross Revenue during the 2022 Earnout Period and the 2023 Earnout Period, respectively, is in
the aggregate sixty percent (60%) or more, then the Earnout Revenue for the respective Earnout Period shall equal the Company Gross Revenue for such Earnout Period. 

  
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 (B) If the Company Gross Margin for the Company Gross Revenue during the 2022 Earnout
Period and the 2023 Earnout Period, respectively, is in the aggregate less than sixty percent (60%), then the Earnout Revenue for the respective Earnout Period shall equal the Company Gross Revenue for such Earnout Period after disregarding any
Company Gross Revenue from specific sales in that Earnout Period that do not meet or exceed such sixty percent (60%) threshold; provided, however, that (1) Company Gross Revenue from Captive Sales shall be calculated as if Company
Products were sold at the average price of such Company Products for the respective Earnout Period (ignoring such Captive Sales to determine such average); and (2) if Company Products are sold to an independent third party merchants at a rate
less than the rate negotiated between the Company and such third party, at the request of Parent, the Company Gross Revenue from such sales shall be calculated as if Company Products were sold at the average price of such Company Products for the
respective Earnout Period (ignoring such Captive Sales to determine such average). 
 (viii) “2022 Achieved Earnout Amount”
means, if the Actual 2022 Revenue is: 
 (A) less than the 2022 Earnout Base Revenue, then zero; 

(B) greater than or equal to the 2022 Earnout Base Revenue and less than the 2022 Earnout Revenue Target, then an amount equal to the
product of (I) the 2022 Earnout Maximum Consideration times (II) the quotient of (x) the excess (if any) of the Actual 2022 Revenue over the 2022 Earnout Base Revenue; divided by
(y) the excess of the 2022 Earnout Revenue Target over the 2022 Earnout Base Revenue, payable in Parent Shares at the Closing Parent Share Price; 

(C) greater than or equal to the 2022 Earnout Revenue Target, then the 2022 Earnout Maximum Consideration. 

In no event shall the 2022 Achieved Earnout Amount be greater than the 2022 Earnout Maximum Consideration. 

(ix) “Actual 2022 Revenue” means Earnout Revenue from January 1, 2022 through December 31, 2022. 

(x) “2022 Earnout Base Revenue” means $12,500,000. 

(xi) “2022 Earnout Maximum Consideration” means $5,000,000, payable in Parent Shares at the Closing Parent Share Price up to
a maximum of 478,011.5 of Parent Shares. 
 (xii) “2022 Earnout Revenue Target” means $24,000,000. 

(xiii) “2023 Achieved Earnout Amount” means, if the Actual 2023 Revenue is: 

(A) less than the 2023 Earnout Base Revenue, then zero; 

(B) greater than or equal to the 2023 Earnout Base Revenue and less than the 2023 Earnout Revenue Target, then an amount equal to the
product of (I) the 2023 Earnout Maximum Consideration times (II) the quotient of (x) the excess (if any) of the Actual 2023 Revenue over the 2023 Earnout Base Revenue; divided by
(y) the excess of the 2023 Earnout Revenue Target over the 2023 Earnout Base Revenue, payable in Parent Shares at the Closing Parent Share Price; 

  
 24 

 (C) greater than or equal to the 2023 Earnout Revenue Target, then the 2023 Earnout Maximum
Consideration. 
 In no event shall the 2023 Achieved Earnout Amount be greater than the 2023 Earnout Maximum Consideration. 

(xiv) “Actual 2023 Revenue” means Earnout Revenue from January 1, 2023 through December 31, 2023. 

(xv) “2023 Earnout Base Revenue” means $15,000,000. 

(xvi) “2023 Earnout Maximum Consideration” means $5,000,000 payable in Parent Shares at the Closing Parent Share Price up to
a maximum of 478,011.5 of Parent Shares. 
 (xvii) “2023 Earnout Revenue Target” means $37,500,000. 

(xviii) “Earnout Acceleration Event” means, after the Effective Time and prior to payment of the Achieved Earnout Amount:

 (A) there is a Change of Control of Parent and the earnout obligations set forth herein are not assumed; provided, however, if upon a
Change of Control of Parent, Parent Shares cease to be outstanding and listed on a public securities exchange, the assumed obligation to pay the 2022 Achieved Earnout Amount and/or the 2023 Achieved Earnout Amount shall be an obligation to pay all
such earnout amounts in cash based on the 2022 Earnout Maximum Consideration and 2023 Earnout Maximum Consideration, respectively, being the amount of cash that would be received in the Change of Control transaction for such 478,011.5 of Parent
Shares; 
 (B) the employment of any Key Employee is terminated by the employer other than For Cause (as defined in such Key Employee’s
Key Employee Agreement); or 
 (C) the employment of any Key Employee is terminated by the employee for Good Reason (as defined in such Key
Employee’s Key Employee Agreement). 
 (c) Process. 

(i) The Parent shall calculate the 2022 Achieved Earnout Amount and 2023 Achieved Earnout Amount in connection with its ordinary year-end accounting processes and as soon as practicable thereafter, but in any event not later than June 30, 2023 and June 30, 2024, deliver to the Shareholder Representative a report showing such
calculation (each a “Draft Earnout Report”). 
 (ii) Following receipt by the Shareholder Representative of the Draft
Earnout Report, the Shareholder Representative may request a meeting with representatives of the Parent, which meeting shall take place promptly, and in any event not later than 30 days following such request, in person or by telephone conference or
video conference as mutually agreed. At such meeting, the representatives of the Parent shall reasonably respond, during such meeting (or, if not then practicable, as promptly as practicable thereafter), to the Shareholder Representative’s
reasonable inquiries for the purpose of providing the Shareholder Representative with a reasonably detailed understanding of the calculation of the Achieved Earnout Amount and the calculation of any corresponding payments. The Shareholder
Representative and its accountants shall have the right to inspect the Company’s books and records during normal business hours at the Company’s offices, upon reasonable prior notice and solely for purposes reasonably related to the
determination of Earnout Revenue. The Draft Earnout Report shall be prepared in accordance with the Accounting Rules. 
 (iii) As
soon as practicable, but, in any event, within thirty (30) days after the later of (x) delivery of a Draft Earnout Report, or (y) the meeting between Shareholder Representative and Parent following delivery of the Draft Earnout Report
pursuant to Section 2.12(c)(i), the Shareholder Representative shall provide to Parent a written report indicating its agreement with, or 

  
 25 

 
specific itemized objections to, Parent’s calculation of the Achieved Earnout Amount (the “Shareholder Representative Response”). Shareholder Representative agrees to
maintain confidentiality of any and all information in accordance with Section 6.2 hereof. Failure by Shareholder Representative to object to Parent’s calculation of the Achieved Earnout Amount or, if earlier,
Shareholder Representative’s affirmative agreement in writing to Parent’s calculations shall be deemed to be Shareholder Representative’s acceptance of the Draft Earnout Report and that Draft Earnout Report shall automatically and
irrevocably be deemed a “Final Earnout Report” in accordance with this Section 2.12(c)(iii) and shall have full weight and accord of a res judicata decision (final judgment without any possible way of
recourse or appeal). Any objection to a Draft Earnout Report that could have been, but was not, raised as an objection prior to such Draft Earnout Report becoming a “Final Revenue Report” is expressly waived. Parent shall make the
payment of the Achieved Earnout Amount, if any, to the Company Shareholders in their respective Pro Rata Portion within fifteen (15) Business Days after a Draft Earnout Report becomes a Final Earnout Report. 

(d) Earnout Covenants. Until December 31, 2023 or the earlier payment in full of the Achieved Earnout Amount, Parent agrees to,
and agrees to cause and its Affiliates (including the Company) to: 
 (i) operate the business of the Company in a commercially reasonable
manner as an integrated business unit subject to the requirements of this Section 2.12(d); 
 (ii) not act in bad
faith for the purpose of lessening or avoiding the Achieved Earnout Amount; 
 (iii) maintain books and records relating to the subject
matter of this Section 2.12 to comply with the requirements of this Section 2.12; 

(iv) use commercially reasonable efforts to perform contractual obligations with respect to the Company’s customer Contracts and use
commercially reasonable efforts to provide sufficient resources to the Company to fulfill and pursue customer opportunities in order to achieve Earnout Revenue; 

(v) use commercially reasonable efforts to continue to offer Company Products in substantially the same manner as offered by the Company
immediately prior to Closing; 
 (vi) not significantly reduce the number of employees of the Company or materially increase prices of
Company Products (other than periodic adjustments consistent with past practices of the Company or as a pass through of increased costs), which shall not be unreasonably conditioned, withheld or delayed; and 

(vii) not transfer any Material Contracts. 

(e) Acceleration of Earnout Payments. Following any Earnout Acceleration Event, if such event takes place: 

(i) on or prior to December 31, 2022, Parent shall immediately pay to the Shareholder Representative the 2022 Earnout Maximum
Consideration and the 2023 Earnout Maximum Consideration; 

  
 26 

 (ii) after December 31, 2022 and on or prior to December 31, 2023, Parent shall
immediately pay to the Shareholder Representative the 2023 Earnout Maximum Consideration and any unpaid 2022 Achieved Earnout Amount. 
 2.13
Taking of Necessary Action; Further Action. Each party hereto will take all such reasonable and lawful action as may be necessary or desirable in order to effectuate the Merger in accordance with this Agreement as promptly as possible. If, at
any time after the Closing, any further action is necessary or desirable to carry out the purposes of this Agreement and to vest Parent with full right, title and possession to all assets, property, rights, privileges, powers and franchises of the
Company pursuant to the terms of this Agreement, the officers and directors of the Company are fully authorized in the name of their respective corporations or otherwise to take, and will take, all such lawful and necessary action, so long as such
action is not inconsistent with this Agreement. 
 2.14 Post-Closing Adjustments. 

(a) Within ninety (90) days after the Closing Date, Parent shall prepare and deliver to the Shareholder Representative a certificate (the
“Closing Certificate”) setting forth, in reasonable detail, (i) the Final Working Capital, (ii) the Final Net Cash, (iii) a balance sheet of the Company as of 12:01 am local time on the anticipated Closing Date which
shall have been prepared in accordance with the Accounting Rules (the “Closing Balance Sheet”), and (iv) Parent’s calculation of each of the components of the Final Working Capital and Final Net Cash, and the aggregate
amounts thereof. Parent shall provide to the Shareholder Representative all material work papers used in the calculation of each of the components of the Final Working Capital and Final Net Cash. 

(b) The Shareholder Representative shall have thirty (30) days from the date on which the Closing Certificate and the Closing Balance
Sheet have been delivered to it to raise any objection(s) to the Closing Certificate or the Closing Balance Sheet, by delivery of written notice to Parent setting forth such objection(s) in reasonable detail (the “Disputed Items”).
In the event that the Shareholder Representative shall not deliver any such objection(s) with respect to the Closing Certificate or the Closing Balance Sheet within such thirty (30)-day period, then the
Closing Certificate shall be deemed final for purposes of this Section 2.14. In the event that any such objection(s) are so delivered, the Closing Certificate shall be deemed not final and Parent and the Shareholder
Representative shall attempt, in good faith, to resolve the Disputed Items and, if they are unable to resolve all of the Disputed Items within thirty (30) days of delivery of such notice, shall, within five (5) Business Days thereafter (or
such earlier date as mutually agreed), submit the Disputed Items to the Independent Accounting Firm. Parent and the Shareholder Representative shall provide to the Independent Accounting Firm all work papers and
back-up materials relating to the Disputed Items requested by the Independent Accounting Firm to the extent available to Parent or its Representatives or the Shareholder Representative or its Representatives;
provided, however, that any materials so provided to the Independent Accounting Firm shall also be made available to the other disputing party hereto. Parent and the Shareholder Representative shall be afforded the opportunity to
present to the Independent Accounting Firm any material related to the Disputed Items and to discuss the issues with the Independent Accounting Firm. No party shall have or conduct any communication with the Independent Accounting Firm without the
other party either being present or, with respect to written communication, sending to the other party a concurrent copy thereof. The Independent Accounting Firm shall base its determination solely on the presentations and supporting material
provided by the parties. In resolving any Disputed Item, the Independent Accounting Firm shall not assign a value to any item higher than the highest value for such item, or lower than the lowest value for such item, claimed by either Parent or the
Shareholder Representative. The determination by the Independent Accounting Firm, as set forth in a notice to be delivered to Parent and the Shareholder Representative within thirty (30) days after the submission of the Disputed Items to the
Independent Accounting Firm, shall be final, binding and conclusive on Parent, the 

  
 27 

 
Shareholder Representative and the Company Shareholders. The fees and expenses of the Independent Accounting Firm shall be split equally between Parent and the Shareholder Representative. The
Final Working Capital and the Final Net Cash reflected in the Closing Certificate, as revised to reflect the resolution of any and all disputes by Parent and the Shareholder Representative and/or the Independent Accounting Firm, shall be deemed to
be the “Final Working Capital” and the “Final Net Cash”, respectively. 
 (c) At such time as the Closing
Certificate shall become final in accordance with Section 2.14(b), the Estimated Working Capital shall be compared to the Final Working Capital, and the Estimated Net Cash shall be compared to the Final Net Cash. 

(i) In the event that the aggregate of the Final Working Capital and the Final Net Cash is less than the aggregate of the Estimated Working
Capital and the Estimated Net Cash, then Parent shall be entitled to an immediate reduction from the Adjustment Holdback Amount of an amount equal to such deficiency and Parent shall distribute the balance of the Adjustment Holdback Amount to the
Company Shareholders in accordance with each such Company Shareholder’s Pro Rata Portion of such amount as set forth on the Payment Schedule. If the Adjustment Holdback Amount is less than the difference of the aggregate of the Estimated
Working Capital and the Estimated Net Cash less the aggregate of the Final Working Capital and the Final Net Cash, then the Parent may make an immediate reduction from the Indemnity Holdback Amount of such difference. 

(ii) In the event that the aggregate of the Final Working Capital and the Final Net Cash is greater than the Estimated Working Capital and the
Estimated Net Cash, then Parent shall distribute the amount of the difference plus the full Adjustment Holdback Amount to the Company Shareholders in accordance with each such Company Shareholder’s Pro Rata Portion of such amount as set forth
on the Payment Schedule. 
 3. Company Representations and Warranties. The Company represents and warrants to Parent that the
statements contained in this Section 3 are true and correct as of the Agreement Date and as of the Closing Date, except as disclosed in a document of even date herewith and delivered by the Company to Parent on the
Agreement Date referring to the representations and warranties in this Agreement (the “Disclosure Schedule”). The Disclosure Schedule will be arranged in paragraphs corresponding to the numbered and lettered paragraphs contained in
this Section 3, and the disclosure in any such numbered and lettered Section of the Disclosure Schedule shall qualify only the corresponding subsection in this Section 3 (except to the extent
disclosure in any numbered and lettered Section of the Disclosure Schedule is readily apparent on its face to apply to another numbered and lettered Section of the Disclosure Schedule). 

3.1 Organization, Standing and Power; Subsidiaries. 

(a) The Company is a corporation duly organized, validly existing and in good standing under the laws of the District of Columbia and has all
requisite corporate or similar power and authority to own, lease and operate its properties and assets and to carry on its business as now being conducted and as proposed to be conducted and is duly qualified to do business and is in good standing
as a foreign corporation or other legal entity in each jurisdiction where the ownership, leasing or operation of its assets or properties or conduct of its business requires such qualification and in which the failure to be so qualified could
reasonably be expected to have a Company Material Adverse Effect. The Company has delivered to Parent a true and correct copy of the Company’s Organizational Documents, each as amended to date, and each as so delivered is in full force and
effect. Except as set forth in Section 3.1(a) of the Disclosure Schedule, the Company is not in violation of any of the provisions of its Organizational Documents. Section 3.1(a) of the Disclosure
Schedule sets forth all jurisdictions in which the Company is, or has been, required to be qualified, authorized, registered or licensed to do business as a foreign corporation or other legal entity. 

  
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 (b) The Company does not directly or indirectly own any equity or similar interest in, or
any interest convertible or exchangeable or exercisable for, any equity or similar interest in, any corporation, partnership, joint venture or other business association or entity. 

3.2 Authority. 
 (a) The
Company has all requisite corporate or similar power and authority to enter into this Agreement, each other Transaction Document to which the Company is a party and to consummate the transactions contemplated hereby and thereby. The execution and
delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate or similar action on the part of the Company. 

(b) This Agreement and each other Transaction Document to which the Company is a party has been duly executed and delivered by the Company and
constitutes the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except that such enforceability may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting or
relating to creditors’ rights generally, and is subject to general principles of equity (the “Enforceability Exceptions”). The execution and delivery of this Agreement and each other Transaction Document to which the Company is
a party does not, and the consummation of the transactions contemplated hereby will not, conflict with, or result in any violation of, or default under (with or without notice or lapse of time, or both), or give rise to a right of termination,
cancellation or acceleration of any material obligation or loss of any material benefit under (i) any provision of the Company’s Organizational Documents; (ii) any Applicable Law, Permit or Order applicable to the Company,
(iii) any Material Contract, or (iv) any other Contract to which the Company is a party, or by which the Company is bound, except in the case of clause (iv), which would not reasonably be expected to have a Company Material Adverse Effect.

 3.3 Governmental Authorization. 

(a) Except for the filing of the Articles of Merger with the Secretary of State of the State of Delaware and the Department of Consumer and
Regulatory Affairs, Corporations Division, of the District of Columbia, in accordance with the relevant provisions of the DGCL and the DC Code, no consent, approval, order or authorization of, or registration, declaration or filing with any
Governmental Entity is required by or with respect to the Company in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby. 

(b) The Company has obtained all Permits necessary for the conduct of its business and that are material to the operation of the Company
Business. The Company is, and at all times has been, in material compliance with all such Permits, and all such Permits are in full force and effect. 

3.4 Financial Statements. 

(a) The Company has delivered to Parent (i) the Company’s audited financial statements (balance sheet, statement of operations and
statement of cash flows) for the fiscal year ended December 31, 2020, internally prepared reviewed financial statements for the six (6) months ended June 30, 2021 and internally prepared financial statements for the eight
(8) month period ended 

  
 29 

 
August 31, 2021 (such date, the “Balance Sheet Date,” and such financial statements, the “Financial Statements”). The Financial Statements have been
prepared in accordance with GAAP applied on a consistent basis throughout the periods presented and consistent with each other. The Financial Statements fairly present in all material respects the financial condition, operating results and cash flow
of the Company as of the dates, and for the periods, indicated therein. 
 (b) The Company maintains and will continue to maintain a system
of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformance with GAAP and to maintain accountability for assets; (iii) access to the Company’s assets is permitted only in accordance with management’s authorization; and (iv) the recorded accountability
for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 
 3.5
Capital Structure. 
 (a) Capitalization of the Company. 

(i) As of the Agreement Date, the authorized capital stock of the Company consists of 1,000 shares of Company Common Stock, of which 998 are
issued or outstanding. 
 (ii) All outstanding shares of Company Common Stock are duly authorized, validly issued, fully paid and non-assessable and free of any Encumbrances. 
 (iii) No stock option plan or other equity based
compensation plan has ever been or is currently in effect, and there are no shares of Company Common Stock reserved for issuance under any equity based compensation plan or any outstanding equity awards. 

(iv) Except for the rights created pursuant to this Agreement, there are no other
options, warrants, restricted stock awards, calls, rights, commitments or agreements of any character to which the Company is a party or by which the Company is bound, obligating the Company to issue, deliver, sell, repurchase or redeem or cause to
be issued, delivered, sold, repurchased or redeemed, any shares of Company Common Stock, or obligating the Company to grant, extend, accelerate the vesting of, change the price of, or otherwise amend or enter into any such option, warrant, call,
right, commitment or agreement. 
 (v) All shares of outstanding Company Common Stock and rights to acquire Company Common Stock were issued
in compliance with all applicable federal and state securities laws. 
 (vi) There are no, and at the Closing there will not be, accrued or
unpaid dividends on shares of Company Common Stock. 
 (b) Section 3.5(b) of the Disclosure Schedule sets forth, with respect
to each Company Shareholder, the number of shares of Company Common Stock that such Person holds. 
 (c) All of the information contained in
the Payment Schedule will be accurate and complete as of the Closing, and, except as set forth on the Payment Schedule, no other holder of Company Common Stock (or any other Person) shall have any right, title or claim to any consideration in
connection with the transactions contemplated by this Agreement. The allocation of the Merger Consideration as set forth in the Payment Schedule will comply with and be in accordance with the Company’s certificate of incorporation and
Applicable Law. 

  
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 (d) (i) None of the outstanding shares of Company Common Stock are entitled or subject
to any preemptive right, right of participation, right of maintenance or similar right; (ii) other than the rights created pursuant to this Agreement, none of the outstanding shares of Company Common Stock are subject to any right of repurchase
or first refusal or similar right in favor of the Company or any third party; and (iii) there are no agreements or arrangements (other than this Agreement) (A) between or among Company and any of the Company Shareholders; or (B) to
the Company’s Knowledge, between or among any of the Company Shareholders relating to the voting or registration of, or restricting any holder from purchasing, selling, pledging or otherwise disposing of (or granting any option or similar right
with respect to), any shares of Company Common Stock. 
 3.6 Absence of Certain Changes. Since the Balance Sheet Date and except as
set forth in Section 3.6 of the Disclosure Schedule, (x) there has not occurred any change, event or condition (whether or not covered by insurance) that has resulted in, or could reasonably be expected to result in, a
Company Material Adverse Effect, (y) the Company has conducted its business in the ordinary course consistent with past practice, and (z) there has not occurred: 

(a) any acquisition, sale or transfer of any material asset of the Company other than sales of Inventory in the ordinary course of business,

 (b) the incurrence of any Indebtedness of the Company, or any Encumbrance on the assets of the Company (other than a Permitted
Encumbrance); 
 (c) any change in the Company’s cash management practices and policies, practices and procedures with respect to
collection of accounts receivable, establishment of reserves for uncollectible accounts receivable, accrual of accounts receivable, inventory control, prepayment of expenses, payment of trade accounts payable, accrual of other expenses, deferral of
revenue and acceptance of customer deposits; 
 (d) any declaration, setting aside, or payment of a dividend or other distribution with
respect to the shares of the Company, or any direct or indirect redemption, purchase or other acquisition by the Company of any shares of capital stock or equity interest of the Company; 

(e) any Material Contract entered into by the Company, other than in the ordinary course of business, or any material amendment (other than in
the ordinary course of business), or termination of, or default under, any Material Contract; 
 (f) any amendment or change to the
Organizational Documents of the Company; 
 (g) any increase in or modification of the compensation or benefits payable or to become payable
by the Company to any of director, officer or employee of the Company; 
 (h) any capital expenditures of the Company, or any commitment to
make any capital expenditures by the Company in excess of $50,000 in the aggregate; 
 (i) any termination or waiver of any right of
substantial value, other than in the ordinary course of business; or 

  
 31 

 (j) any negotiation or agreement by the Company to do any of the things described in the
preceding clauses (a) through (i) (other than negotiations with Parent and its representatives regarding the transactions contemplated by this Agreement). 

3.7 Absence of Undisclosed Liabilities. The Company has no obligations or Liabilities of a nature required to be reflected on a balance
sheet prepared in accordance with GAAP other than (i) those as of the Balance Sheet Date set forth or adequately provided for in the balance sheet included in the Financial Statements; (ii) those incurred in the ordinary course of business
since the Balance Sheet Date and consistent with past practice; and (iii) those incurred in connection with the negotiation, execution and performance of this Agreement and the Transaction Documents constituting Transaction Expenses. 

3.8 Litigation. 
 (a)
Except as set forth in Section 3.8(a) of the Disclosure Schedule, there is no private or governmental Action pending before any Governmental Entity, foreign or domestic, or, arbitrator, or, to the Knowledge of the Company,
threatened by or against the Company or any of its properties or any of its officers or directors (in his or her capacity as such). There is no Order against the Company or, to the Company’s Knowledge, any director or officer of the Company (in
his or her capacity as such). 
 (b) There is no Action pending or, to the Company’s Knowledge, threatened, nor has any claim or demand
been made against the Company that (i) challenges (x) the right, title or interest of the Company in, to or under the Intellectual Property in which the Company has (or purports to have) any right, title or interest; or (y) the
validity, enforceability or claim construction of any Patents comprising such Intellectual Property; or (ii) alleges infringement, contributory infringement, inducement to infringe, misappropriation, violation or unlawful use by the Company of
Intellectual Property rights of any other third party. 
 3.9 Intellectual Property. 

(a) Company Intellectual Property Rights. 

(i) Disclosure of Certain Intellectual Property. Section 3.9(a)(i) of the Disclosure Schedule is a complete
and accurate list of: (A) all Company Registered Intellectual Property, grouped by Patents (including withdrawn, lapsed, abandoned or expired Patents), Trademarks, Copyrights, domain names and other Registered Intellectual Property and setting
forth for each of the foregoing as applicable, the title, application number, filing date, jurisdiction, registration number, and the owner thereof and (B) all material common law Trademarks included in the Company Owned Intellectual Property
in which the Company had any rights during the five (5) years prior to the Agreement Date. 
 (ii) Enforceability; No
Challenges. To the Company’s Knowledge, each item of Company Owned Intellectual Property and each item of Company Licensed Intellectual Property that is exclusively licensed to the Company is subsisting, valid, enforceable, and in good
standing. To the Company’s Knowledge there are no facts, information, or circumstances (including any facts or information that would constitute prior art) that would render any of the Company Owned Intellectual Property or any item of Company
Licensed Intellectual Property that is exclusively licensed to the Company invalid or unenforceable, or would preclude the issuance of or otherwise affect any pending application for any Company Owned Intellectual Property or for any item of Company
Licensed Intellectual Property that is exclusively licensed to the Company. Neither the Company, nor any of its counsel or agents has misrepresented, or failed to disclose, any facts or information in any application for any Company Registered
Intellectual Property that would constitute Fraud or a misrepresentation, or inequitable conduct with respect to such application or that would otherwise affect the enforceability of any Company Registered Intellectual Property. 

  
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 (iii) Proper Filings. With respect to each item of Company Owned Intellectual
Property and each item of Company Licensed Intellectual Property that is Registered Intellectual Property and is exclusively licensed to Company, the Company has not received notice of any inter partes review, derivative proceedings, inventorship
challenge, opposition, cancellation, re-examination (including supplemental re-examination), post grant review, interference, invalidity, unenforceability or other
action or proceeding before any Registration Office relating to such Intellectual Property. 
 (iv) Post-Closing Actions.
Section 3.9(a)(iii) of the Disclosure Schedule is a complete and accurate list of all actions that must be taken within one hundred twenty (120) days of the Closing Date with respect to any of the Company Registered
Intellectual Property and each item of Company Licensed Intellectual Property that is Registered Intellectual Property and is exclusively licensed to the Company, including the payment of any filing, examination, registration, maintenance, renewal
and other fees or the filing of any documents, applications or certificates for the purposes of maintaining, perfecting, preserving or renewing such Intellectual Property and to avoid loss or abandonment thereof, in each case in accordance with
Applicable Law. 
 (v) Trade Secrets. The Company has taken commercially reasonable measures and precautions to protect and maintain
the confidentiality of all Trade Secrets included in the Company Intellectual Property and to avoid the misappropriation of Trade Secrets owned by others. The Company has not disclosed any Trade Secrets in which Company has (or purports to have) any
right, title or interest (or any tangible embodiment thereof) to any Person without having such Person execute a written agreement regarding the non-disclosure and
non-use thereof. All use, disclosure or appropriation of any Trade Secret not included in the Company Owned Intellectual Property has been pursuant to the terms of a written agreement between the Company and
the owner of such Trade Secret, or is otherwise lawful. The Company has not received any notice from any Person that there has been an unauthorized use or disclosure of any Trade Secrets included in the Company Intellectual Property. The Company has
taken commercially reasonable measures in connection with the hiring and employment of its personnel to ensure that Trade Secrets owned by others have not been disclosed to or used by the Company without authorization. 

(vi) Patents. The Company has not taken any actions that would result in a Patent included in the Company Registered Intellectual
Property or in any item of Company Licensed Intellectual Property that is Registered Intellectual Property and is exclusively licensed to the Company being invalid, including any disclosure, publication or sale of the invention more than one
(1) year prior to the date of the applicable Patent application. 
 (b) Ownership of and Right to Use Company Intellectual Property;
No Encumbrances. 
 (i) To the Company’s Knowledge, the Company is the sole and exclusive owner of and has good, valid and
marketable title to, free and clear of all Encumbrances (other than Permitted Encumbrances), all Company Owned Intellectual Property. The Company has the sole and exclusive right to bring a claim or suit against any other Person for past, present or
future infringement of Company Owned Intellectual Property and of each item of Company Licensed Intellectual Property that is exclusively licensed to the Company. The Company has not transferred ownership of, or granted any exclusive license with
respect to, any Intellectual Property to any Person. Without limiting any other representation or warranty in this Agreement, except as set forth in Section 3.9(b)(i) of the Disclosure Schedule, each of the inventors
identified on each of the Patents included in Company Registered Intellectual Property was an employee of Company at the time of the conception and reduction to practice of the inventions claimed in such Patents. 

  
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 (ii) To the Company’s Knowledge, the Company has valid and legally enforceable rights
to use, license, practice and otherwise exploit all Company Licensed Intellectual Property and all other Intellectual Property used by the Company. The Company Intellectual Property constitutes all of the Intellectual Property used or currently
proposed to be used or necessary in connection with the conduct of the Company Business, including to make, use, offer for sale, sell or import Company Products. All Company Licensed Intellectual Property (including any interest therein acquired
through a license or other right to use) is free and clear of Encumbrances (other than Permitted Encumbrances) and the Company has not received any notice that any portion of the Company Licensed Intellectual Property is subject to any Encumbrance
(other than Permitted Encumbrances). 
 (iii) Neither the execution and delivery of this Agreement or any other document or instrument
contemplated by this Agreement, nor the consummation of the transactions contemplated to be consummated by them under this Agreement and such other documents and instructions will (A) result in Parent or any of its Affiliates granting to any
Person any ownership interest in, or any license, covenant not to sue or right under or with respect to, any Intellectual Property or Technology or (B) result in Parent or any of its Affiliates or any of their Intellectual Property or
Technology being bound by, or subject to, any non-compete, licenses or other restriction on the operation or scope of their respective businesses. Immediately following the Closing, the Company will be
permitted to exercise all of its rights under all Contracts to which the Company is a party to the same extent it would have been able to had the transactions contemplated by this Agreement not occurred and without being required to pay any
additional amounts or consideration other than fees, royalties or payments that Company would otherwise have been required to pay had the Merger not occurred. 

(c) Agreements Related to Company Intellectual Property. 

(i) Disclosure of Outbound Licenses. Section 3.9(c)(i) of the Disclosure Schedule is a complete and accurate
list of all Contracts (A) pursuant to which the Company, or any existing or future Affiliate of the Company granted or is required to grant to any Person any right under or license to, any covenant not to assert or sue or other immunity from
suit under or any other rights, to any Intellectual Property, or (B) where the Company, or any Affiliate of the Company has undertaken or assumed any enforcement obligation with respect to any Intellectual Property.
Section 3.9(c)(i) of the Disclosure Schedule indicates which Contracts listed therein contain any license grant by the Company to any Patent where such license is not incidental to sale or license of any Company Product. No
Patents owned by Company are subject to any “License on Transfer” (aka “LOT”), network, or commitment pursuant to which such Patents may not be enforced once the Patents are sold or assigned to any other Person. 

(ii) Disclosure of Inbound Licenses. Section 3.9(c)(i) of the Disclosure Schedule is a complete and accurate
list of all Contracts (excluding licenses of Off-the-Shelf Software) pursuant to which any Person granted or is required to grant to Company, or any existing or future
Affiliate of Company any right under or license to, any covenant not to assert or sue or other immunity from suit under or any other rights to any current or future Intellectual Property. 

  
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 (iii) Disclosure of Other Intellectual Property Agreements.
Section 3.9(c)(ii) of the Disclosure Schedule is a complete and accurate list, grouped by subsection, of all Contracts as follows: (A) regarding joint development of any Technology, and a complete and accurate
description of (x) the Technology that was developed under such Contracts and (y) whether any such Technology or related Intellectual Property is used in the Company Products or otherwise in the Company Business; (B) by which the
Company, or any existing or future Affiliate of the Company grants, granted or is required to grant any ownership right or title to any Intellectual Property, (C) by which the Company is assigned or granted an ownership interest in any
Intellectual Property (other than written agreements with employees and independent contractors that assign or grant to the Company ownership of Intellectual Property developed in the course of providing services to the Company); (D) under which the
Company grants or receives an option or right of first refusal or negotiation relating to any Intellectual Property, separated by those granted by and those received by the Company; (E) under which any Person is granted any right to access
Company source code or to use Company source code (other than employees and independent contractors that have access to Company source code solely for purposes of performing services for or on behalf of the Company); (F) pursuant to which the
Company has deposited or is required to deposit with an escrow agent or any other Person the Company source code or other Technology; (G) limiting the Company’s ability to transact business in any market, field or geographical area or with
any Person, or that restricts the use, sale, transfer, delivery or licensing of Intellectual Property, any Company Technology or any Company Products, including any covenant not to compete; and (H) the Company granting to any Person or being
granted by any Person most favored nations status in terms of pricing, royalties, license fees or other contractual terms and conditions. 

(iv) Royalties. The Company has no obligation to pay any royalties, license fees or other amounts or provide or pay any other
consideration to any Person by reason of ownership, use, exploitation, practice, sale or disposition of any Intellectual Property (or any tangible embodiment thereof) (not including licenses for Off-the-Shelf Software) or reproducing, making, using, selling, offering for sale, distributing or importing any Company Product. The Closing of the Merger will not result in any increase or other change to
any such royalties, license fees or other amounts or consideration. 
 (v) Indemnification. Except as provided in
Section 3.9(c)(v) of the Disclosure Schedule, no customer or other Person has requested that the Company defend or indemnify the customer or Person from a third party claim, suit or action related to an allegation that a
Company Product infringes, violates or misappropriate a third party’s Intellectual Property. 
 (vi) No Breach. To the
Company’s Knowledge, the Company is not, and no other Person is, in breach of any Contract described in this Section 3.9(b)(iii) and the Company has not notified any Person and no Person has notified the Company of any
such breach. 
 (d) Open Source Materials. Section 3.9(d) of the Company Disclosure Schedule lists
(i) all Open Source Materials incorporated or embedded in or combined or made available by Company in connection with any Company Products, including identifying the applicable Company Product, (ii) the license applicable to such Open
Source Materials, and (iii) describes whether the Open Source Materials were modified and/or distributed by the Company. Except to the extent set forth in Section 3.9(d) of the Company Disclosure Schedule, no Company
Product is subject to Open Source Materials that do (i) require disclosure or distribution of the Company Product in source code form, (ii) require the licensing of the Company Product for the purpose of making derivative works,
(iii) impose any restriction on the consideration to be charged for the distribution of the Company Product, or (iv) create, or purport to create, obligations for the Company with respect to Company Owned Intellectual Property or grant, or
purport to grant, to any third party, any rights or immunities under Company Owned Intellectual Property. The Company is in compliance with the terms and conditions of all licenses for such Open Source Materials. 

  
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 (e) No Third Party Rights in Company Intellectual Property. 

(i) No Joint Ownership. To the Company’s Knowledge, the Company does not jointly own, license or claim any right, title or
interest with any other Person of any Intellectual Property. The Company has not assigned to any Person, including any Affiliate, any Intellectual Property. 

(ii) No Employee Ownership. To the Company’s Knowledge, no current or former officer, manager, director, shareholder, member,
employee, founder, consultant or independent contractor of the Company has any right, title or interest in, to or under any Intellectual Property or Technology used by the Company that has not been irrevocably assigned or transferred to the Company.

 (iii) No Challenges. No Person has challenged or, to the Company’s Knowledge, threatened to challenge and no Person has
asserted or, to the Company’s Knowledge, threatened a claim or made a demand, nor is there any pending proceeding or, to the Company’s Knowledge, threatened, which would adversely affect (A) the Company’s right, title or interest
in, to or under the Company Intellectual Property or Company Technology, or (B) any Contract, license or other arrangement under which Company claims any right, title or interest under the Company Intellectual Property or Company Technology or
restricts the use, manufacture, transfer, sale, delivery or licensing by the Company of any Company Intellectual Property, Company Technology or Company Products, or (C) the validity, enforceability or claim construction of any Patents. 

(iv) No Restrictions. To the Company’s Knowledge, the Company is not subject to any proceeding or outstanding decree, order,
judgment or stipulation restricting in any manner the use, transfer or licensing by the Company of the Company Intellectual Property, the use, manufacture, transfer, sale, importation or licensing of any Company Technology or Company Product, or
which might affect the validity, use or enforceability of any Company Intellectual Property. 
 (v) No Infringement by Other Persons.
To the Company’s Knowledge, no Company Owned Intellectual Property or Company Licensed Intellectual Property that is exclusively licensed to the Company is being or has been infringed, misappropriated or violated by any Person. The Company has
not notified any Person (including any demand letter, unsolicited offer to license or any cease and desist letter) or made any assertions to any Person that such Person is infringing, misappropriating or violating any Company Owned Intellectual
Property or any Company Licensed Intellectual Property that is exclusively licensed to Company. 
 (f) No Infringement by the
Company. To the Company’s Knowledge, the conduct of the Company Business, including the making, using, offering for sale, selling, distributing and/or importing of any Company Technology or other Company Product, has not within the last six
years, does not as of the Agreement Date, and will not after the Agreement Date violate, infringe, dilute, unlawfully use, or misappropriate the Intellectual Property of any Person. No Person has sent Company a cease and desist letter related to
Company’s use, or any Company customer’s or licensee’s use of any Person’s Intellectual Property. No Person has asserted or, to the Company’s Knowledge, threatened a claim, nor has the Company received any notification, that
the Company Business, any Company Technology, or any Company Product violates, infringes, dilutes, unlawfully uses, or misappropriates any Person’s Intellectual Property. No Person has notified the Company that the Company requires a license to
any Person’s Intellectual Property. The Company has not received any unsolicited written offer to license (or any other notice of) any Person’s Intellectual Property. 

  
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 (g) Employee and Contractor Agreements. Each founder of the Company has assigned to
the Company all Intellectual Property owned by him that is used in the Company Business. Except as set forth in Section 3.9(g) of the Disclosure Schedule, all current and former employees, consultants and independent
contractors of the Company who is or was involved in, or who have contributed in any manner to the creation or development of any Intellectual Property or Technology for the Company have executed and delivered to the Company a written agreement
(containing no exceptions to or exclusions from the scope of its coverage) regarding the protection of proprietary information and the irrevocable present assignment to the Company of such Intellectual Property and Technology. Where any such
assignment is not permitted under Applicable Law, the applicable employees, consultants and contractors have granted to the Company an irrevocable, exclusive, worldwide, royalty-free, fully paid, transferrable and sublicensable licenses or usage
rights, each, to the extent permitted by Applicable Laws, to and under such non-assignable Intellectual Property. To the Company’s Knowledge, no current or former employee, consultant or independent
contractor is in violation of any term of any such agreement, or any other agreement relating to the relationship of any such employee, consultant or independent contractor with the Company. Section 3.9(g) of the Disclosure
Schedule sets forth a complete and accurate list of all consultants and independent contractors used by the Company in connection with the conception, reduction to practice, creation, derivation, development, or making of the Company Intellectual
Property and Company Technology. 
 (h) No Standards Bodies. Except as set forth on Section 3.9(h) of the
Disclosure Schedule, the Company is not now and has never been, and no previous owner of any Company Owned Intellectual Property or Company Technology owned or purported to be owned by the Company was during the duration of their respective
ownership, a member or promoter of, or a contributor to or made any commitments or agreements regarding any patent pool, industry standards body, standard setting organization, industry or other trade association or similar organization, in each
case that could or does require or obligate the Company or the previous owner to grant or offer to any other Person any license or other right to the Company Owned Intellectual Property or Company Technology, including any future Technology and
Intellectual Property developed, conceived, made or reduced to practice by the Company or any Affiliate of the Company or purchaser of the any Company Owned Intellectual Property after the Closing Date. 

(i) No Government Funding. Except as set forth on Section 3.9(i) of the Disclosure Schedule, no funding,
facilities, resources or personnel of any Governmental Entity or any university, college, other educational institution, multi-national, bi-national or international organization or research center was used in
connection with the development or creation, in whole or in part, of any Company Owned Intellectual Property or Company Technology owned by the Company (collectively, “Government Involvement”). With respect to any such Government
Involvement identified in Section 3.9(i) of the Disclosure Schedule, The Company has complied with the provisions of all Applicable Law and the applicable Contract(s) with respect to such Government Involvement, including
protecting Intellectual Property, and providing notices, information and documents to the applicable Governmental Entity in order to (A) not lose ownership or other rights in or to any Intellectual Property or Technology and (B) not grant
broader rights or licenses to any Governmental Entity under any Intellectual Property or Technology than those rights and licenses required to be granted under Applicable Law or those rights and licenses granted under the applicable Contract related
to such Government Involvement. With respect to any such Government Involvement identified in Section 3.9(i) of the Disclosure Schedule, Company has (i) timely made all required disclosures regarding any Patents or
patentable inventions resulting from or conceived during the development of any portion of any Company Intellectual Property or Company Technology developed under a Contract with any Governmental Entity such that the Governmental Entity does not
have the right to take or claim title to such Patents or patentable inventions and (ii) timely made all required disclosures (on the appropriate Governmental Entity schedule) of all technical data and technical information resulting from the
development of any portion of any Company Intellectual Property or Company Technology developed under any Contract with any Governmental Entity in which the Governmental Entity has unlimited, limited, restricted, government purpose or specifically
negotiated rights. 

  
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 (j) No Limits on Parent’s Rights. The execution, delivery or performance of
this Agreement or any ancillary agreement contemplated hereby, the consummation of the transactions contemplated by this Agreement or such ancillary agreements and the satisfaction of any Closing condition set forth herein will not contravene,
conflict with or result in any termination of or new or additional limitations on Parent’s right, title or interest in or to the Company Intellectual Property, nor will it cause: (i) the Company to grant to any other Person any right to or
with respect to any Intellectual Property owned by, or licensed to the Company, (ii) the Company to be bound by, or subject to, any non-compete or other restriction on the operation or scope of their
respective businesses, or (iii) the Company to be obligated to pay any royalties or other fees or consideration with respect to Intellectual Property of any Person in excess of those payable by the Company in the absence of this Agreement or
the transactions contemplated hereby. 
 (k) Transferability of Intellectual Property. All Company Owned Intellectual Property is
fully transferable, alienable and licensable by the Company without restriction and without payment of any kind to any other Person. 
 3.10
Company Products. 
 (a) A catalog of the products included in the definition of Company Products that are currently being sold,
licensed, provided, or otherwise commercialized by the Company, together with a brief description of each, is set forth in Section 3.10(a) of the Disclosure Schedule. Services included in the definition of Company Products
are provided as an ancillary service at the request of a customer in connection with the sale of a product and do not constitute a material stream of revenue. 

(b) Except as set forth in Section 3.10(a) of the Disclosure Schedule: 

(i) all Company Products sold, licensed, leased, delivered or otherwise made available by the Company to any Person on or prior to the Closing
Date (including all installation services, programming services, integration services, repair services, maintenance services, support services, training services and upgrade services) conform and comply with the terms and requirements of all
applicable contractual obligations, express and implied warranties (to the extent not subject to legally effective express exclusions thereof), packaging, advertising and marketing materials, product or service specifications and documentation, and
Applicable Law; and 
 (ii) no customer or other Person has asserted or, to the Company’s Knowledge, threatened to assert any claim
against the Company under or based upon any contractual obligation or warranty provided by or on behalf the Company, including with respect to any Company Products, other than in the ordinary course of business. 

(c) The Company has not recalled or been required to recall any Company Products. 

  
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 3.11 Privacy; Security Measures. 

(a) Privacy. The Company has complied in all material respects with all Applicable Law, contractual obligations, any binding industry
standards and the Company’s privacy policies relating to any Processing of Personal Data. The Company has taken commercially reasonable measures to protect and maintain the confidentiality of Personal Data. The execution, delivery and
performance of this Agreement and any other Transaction Document will comply with all Applicable Law relating to privacy, data protection, and information security and with the Company’s privacy policies. The Company has not received any
complaints or been the subject of any governmental investigations (whether formal or informal) regarding the Company’s Processing of Personal Data. The Company has no outstanding high or critical remediation measures as to how it manages,
processes, or secures Personal Data made by any customer or as a result of any third-party audit. To the Company’s Knowledge, no vendor or service provider that processes Personal Data on behalf of the Company has in any material respect:
(i) violated any contractual obligation with respect to the processing of Personal Data or (ii) experienced any breach or unauthorized access to Personal Data that such vendor or service provider processes on the Company’s behalf that
would require notification of any individual or Governmental Entity under Applicable Law. 
 (b) Security Measures. The Company has
implemented and maintained commercially reasonable measures designed to protect all Personal Data, computers, networks, software and systems used in connection with the operation of the Company Business (the “Information Systems”)
from viruses and unauthorized access, use, modification, disclosure or other misuse of Personal Data. To the Company’s Knowledge, (i) there have been no unauthorized intrusions or breaches of the security of the Information Systems that
would require notification of any individual or Governmental Entity under Applicable Law, and (ii) there has been no unauthorized access, use, or disclosure of any Personal Data in the possession or control of the Company or any of its
contractors with regard to any Personal Data obtained from or on behalf of the Company that would require notification of any individual or Governmental Entity under Applicable Law. 

3.12 Related Person Transactions. Except as set forth in Section 3.12 of the Disclosure Schedule, there are no
Contracts between the Company, on the one hand, and any Related Person, on the other hand, other than compensation paid to Related Persons in their capacity as employees. There have been no transactions during the
two-year period ending on the Agreement Date that would require disclosure if the Company were subject to disclosure under Item 404 of Regulation S-K under the
Securities Act. To the Company’s Knowledge, no Related Person (i) possesses, directly or indirectly, any financial interest in, or is a director, officer or employee of, any Person which is a material client, supplier, customer, lessor,
lessee or competitor of the Company, or (ii) owns any property right, tangible or intangible, which is used by the Company in the conduct of its business. 

3.13 Minute Books. The Company has provided Parent the minute books of the Company for the past five (5) years. Such minute books
contain a complete and accurate summary in all material respects of all meetings of directors and shareholders or actions by written consent during such time, other than the deletion of any discussions regarding the possibility of a sale of the
Company. 
 3.14 Material Contracts. 

(a) All of the Material Contracts of the Company as of the Agreement Date are listed in Section 3.14(b) of the
Disclosure Schedule, and a true, correct and complete copy of each such Material Contract has been delivered to Parent. With respect to each Material Contract: (i) such Material Contract is legal, valid, binding and enforceable and in full
force and effect with respect to the Company, and, to the Company’s Knowledge, is legal, valid, binding, enforceable and in full force and effect with respect to each other party thereto, in either case subject to the Enforceability Exceptions;
(ii) such Material Contract will continue to be legal, valid, binding and enforceable and in full force and effect immediately following the Closing in accordance with its terms as in effect prior to the Closing, subject to the Enforceability
Exceptions; and (iii) neither the Company, nor, to the Company’s Knowledge, any other party, is in breach or default, and no event has occurred that with notice or lapse of time would constitute a breach or default by the Company, or, to
the Company’s Knowledge, by any such other party, or permit termination, modification or acceleration, under such Material Contract. 

  
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 (b) “Material Contract” means any Contract as set forth on
Section 3.14(b) of the Disclosure Schedule to which the Company is a party: 
 (i) that is a Contract entered into
with any Significant Customer; 
 (ii) that is a Contract entered into with any Significant Supplier; 

(iii) with expected annual expenditures by the Company in excess of $50,000; 

(iv) that is required to be listed in Section 3.9 of the Disclosure Schedule; 

(v) granting any exclusive rights to any party, including any right of first refusal, right of first offer or right of first negotiation; 

(vi) evidencing Indebtedness of the Company, or which relates to Indebtedness and creates an Encumbrance on the Company’s assets; 

(vii) involving any partnership, joint venture or limited liability company agreement or concerning any equity or partnership interest in
another Person, or providing for the sharing of profits relating to the Company Business; 
 (viii) relating to the acquisition or
disposition of any business (whether by merger, sale of stock, sale of assets or otherwise), other than Contracts under which the applicable acquisition or disposition has been consummated and there are no outstanding rights or ongoing obligations
that are material to the Company Business; 
 (ix) that is an employment or employment-related Contract with a (A) Key Employee or
(B) any other employee of the Company that is not terminable at will or that provides an annual cash compensation of $100,000 or more; 

(x) that is a Contract with a consultant, independent contractor or any other service provider of the Company that requires more than one
(1) months’ notice for termination or that provides an annual cash compensation of $100,000 or more; 
 (xi) that is a Contract
with an employee, consultant, independent contractor or any other service provider of the Company that contains any deferred compensation, retention bonus, change of control, severance, gratuity or other similar arrangement for the benefit of the
employee, consultant, independent contractor or service provider; 
 (xii) that is a collective bargaining agreement or other Contract with
a labor union, labor organization, or other employee collective representation group that covers any employees of the Company; 
 (xiii)
containing a residuals clause for the benefit of the other party to the Contract; 

  
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 (xiv) that is a Lease; 

(xv) that is with a Governmental Entity or university; 

(xvi) that materially limits or purports to materially limit the ability of the Company to compete in any line of business or with any Person
or in any geographic area or during any period of time; 
 (xvii) that grants any (1) exclusive license, supply, distribution or other
rights, (2) rights of first refusal, or rights of first negotiation, (3) “most favored nation” rights, (4) exclusive rights to purchase, license or receive any Company Technology, or similar rights to or from any Person; 

(xviii) that provides for an outstanding commitment for capital expenditures in excess of $50,000 that would be binding on the Company or
Parent after the Closing; 
 (xix) in connection with which the Company may have in the future cumulative financial obligations (including
liability, reimbursement obligations, and obligations to issue credits or pay any funds) in excess of One Million Dollars ($1,000,000.00), including through warranties, support obligations, second sourcing rights granted to another Person,
indemnification, epidemic failure remedies, and other similar rights or obligations; or 
 (xx) any other Contract not disclosed above that
is reasonably material to the Company. 
 3.15 Government Contracts. 

(a) Section 3.15(a) of the Disclosure Schedules sets forth a complete and accurate record as of the Agreement Date of: 

(i) all of the Company’s Government Contracts the period of performance of which have not yet expired or been terminated and for which
final payment has not been received as of the Agreement Date or has not been closed out, and, with respect to each, identifies: (A) the contract number and type (e.g., firm-fixed-price,
cost-plus-fixed-fee); (B) the name and address of the contracting agency, instrumentality or department of the U.S. Government and, for subcontracts, the prime contractor or higher-tier subcontractor, as
applicable; (C) the total dollar value, as amended; (D) the approximate remaining unpaid balance; (E) the contract award date; and (F) the level of coverage under the Cost Accounting Standards; 

(ii) all of the Company’s Government Bids made since January 1, 2021, that remain outstanding as of the Agreement Date, and, with
respect to each, identifies: (A) the project name; (B) the contracting agency, instrumentality or department of the U.S. Government, if any, identified therein and, for subcontracts, the prime contractor or higher-tier subcontractor, as
applicable; and (C) the date of the proposal; and 
 (iii) all of the Company’s Government Contracts which are currently or are
likely to experience cost, schedule, technical or quality problems resulting from actions or inactions by the Company that could result in claims against the Company (or their respective successors in interest) by the U.S. Government, a prime
contractor or a higher-tier subcontractor. 

  
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 (b) The Company has provided or made available to Parent true and complete copies of all
Government Contracts and Government Bids listed in Section 3.15(a) of the Disclosure Schedule. 
 (c) All of the
Company’s Government Contracts listed (or required to be listed) in Section 3.15(a)(i) of the Disclosure Schedule (i) were legally awarded, and are binding on the other parties thereto (subject to the
Enforceability Exceptions); (ii) are binding on the Company and are in full force and effect (subject to the Enforceability Exceptions); and (iii) are not currently the subject of bid or award protest proceedings. 

(d) The Company has complied in all material respects with all statutory and regulatory requirements as applicable to each of the
Company’s Government Contracts and each of the Company’s Government Bids. 
 (e) The Company has complied in all materials
respects with: (i) all material terms and conditions, including all clauses, provisions, specifications, and quality assurance, Cost Accounting Standards, warranties, testing and inspection requirements of the Company’s Government
Contracts, whether incorporated expressly, by reference or by operation of Law, and (ii) applicable Laws pertaining to the Company’s Government Contracts, including any FAR or FAR supplement clauses or provisions applicable to or
incorporated by reference in such Government Contracts. 
 (f) All facts (but excluding, for the avoidance of doubt, any forward-looking
statements) set forth in or acknowledged by any representations, certifications or disclosure statements made or submitted by or on behalf of the Company in connection with each of the Government Contracts and each of the Government Bids were true
and accurate as of the date of submission in all material respects. 
 (g) The Company has complied in all material respects with all
applicable representations, certifications and disclosure requirements under each of the Government Contracts and each of the Government Bids. 

(h) The Company has not made any voluntary or mandatory disclosure to, or entered into any consent or administrative agreement (including a
Corporate Integrity Agreement) with, a Governmental Entity related to any Government Contracts or Government Bids. No facts or circumstances exist with respect to Government Contracts or Government Bids that would reasonably require a mandatory
disclosure pursuant to 48 C.F.R. § 52.203-13. 
 (i) All of the written past performance
evaluations submitted to the Contractor Performance Assessment Reporting System which have been provided to the Company during the six (6) years immediately preceding the Agreement Date have been made available to Parent. 

(j) In the last six (6) years, neither the U.S. Government nor any prime contractor or higher-tier subcontractor under a Government
Contract, nor any other Person, has notified the Company in writing of any actual or alleged violation or breach of any statute, regulation, representation, certification, disclosure obligation, contract term, condition, clause, provision or
specification of any Government Contract. 
 (k) To the Knowledge of the Company, no facts exist which could give rise to a claim for price
adjustment under the Truth in Negotiations Act or to any other request for a reduction in the price of any of the Company’s Government Contracts. 

  
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 (l) In the last six (6) years, the Company has not received any show cause, cure,
deficiency, termination (whether for default or convenience), stop work, or other similar notice relating to any of the Company’s Government Contracts. The Company is not aware of an event that, with or without due notice or lapse of time or
both, would reasonably be likely to result in any such breach or violation. 
 (m) There are no outstanding claims or disputes relating to
the Company’s Government Contracts that have been asserted by the Company or by the U.S. Government, any prime contractor, any higher-tier subcontractor or any third party against the Company and, to the Knowledge of the Company, no facts or
allegations exist that could give rise to such a claim or dispute in the future. 
 (n) The Company, and the Company’s Principals (as
defined in 48 C.F.R. § 2.101), officers, managers, and directors have not (i) been and are not now suspended, debarred or proposed for suspension or debarment from the award of any Government Contracts as a prime contractor or
subcontractor; (ii) been subject to any indictment, lawsuit, subpoena, or civil investigative demand concerning any material violation of any requirement pertaining to a Government Contract or Government Bid; (iii) been convicted of or had
a civil judgment rendered against them for: (A) commission of Fraud or a criminal offense in connection with obtaining, attempting to obtain or performing a public (federal, state or local) contract or subcontract; (B) violation of federal
or state antitrust statutes relating to the submission of offers; or (C) commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, violating federal criminal tax Laws or
receiving stolen property. 
 (o) The Company has not received any written notice that it will be subject to, and have not undergone and are
not undergoing, any audit, review, inspection, investigation, survey or examination of records relating to the Company’s Government Contracts other than in the ordinary course of business. 

(p) The Company has not been and is not now under any administrative, civil or criminal investigation or indictment involving alleged false
statements, false claims or other improprieties relating to the Company’s Government Contracts or Government Bids. The Company has not been and is not now a party to any administrative or civil litigation involving alleged false statements,
false claims or other improprieties relating to the Company’s Government Contracts or Government Bids. 
 (q) The Company’s cost
accounting systems comply in all material respects with all applicable government procurement statutes and regulations and with the requirements of all of the Company’s Government Contracts. All certified cost or pricing data submitted by or on
behalf of the Company in connection with a Government Contract or Government Bid was current, complete, and accurate as of the certification date. All invoices and claims for payment submitted by or on behalf of the Company in connection with a
Government Contract were current, complete, and accurate as of their applicable submission dates. 
 (r) Neither the U.S. Government nor any
prime contractor or higher-tier subcontractor under a Government Contract has questioned or disallowed any costs claimed by the Company under any such Government Contract. Neither the U.S. Government nor any prime contractor or higher-tier
subcontractor under a Government Contract has withheld or set off, or attempted to withhold or set off, monies due to the Company under any Government Contract. 

(s) The Company has not been provided with any U.S. Government property or equipment in excess of $5,000 pursuant to a Government Contract or
which was acquired by the Company under a cost-reimbursement Government Contract and which, as of the Agreement Date, is in the Company’s possession. 

  
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 (t) The Company is not a party to any Government Contract in which the Company
represented, individually or as a member of a joint venture, that it was a small business concern or qualified for any other preferential status or other “set aside” status. 

(u) The Company does not possess, and is not required to possess, any facility security clearances, and none of the Company’s employees
is required to possess any personnel-specific approvals required to perform the Company’s Government Contracts. The Company has complied in all material respects with all applicable requirements under each Government Contract relating to the
safeguarding of and access to classified information. The Company has complied in all material respects with the applicable provisions of 48 C.F.R. § 252.204-7008, 48 C.F.R.
§ 252.204-7012, 48 C.F.R.§ 52.204-21, or other applicable regulations or provisions governing the safeguarding of confidential unclassified
information, and to the Knowledge of the Company, no facts or circumstances exist that would give rise to a violation of any such provisions. 

(v) Except as set forth in Section 3.15(v) of the Disclosure Schedule, there are no Government Contracts or
Government Bids (or mitigation plans under such Government Contracts or Government Bids) that include one or more terms or provisions that restrict the Company’s ability to bid on or perform work on future Contracts or programs or for specific
periods of time based upon “organizational conflicts of interest,” as defined in FAR Subpart 9.5 or other Applicable Law or Contract term. To the Company’s Knowledge, no organizational conflicts of interest (“OCI”)
will arise as a consequence of the consummation of the transactions contemplated hereby. In the past six (6) years, The Company has complied in all material respects with all of their OCI mitigation plans and have not received any notice of any
failure to comply with such plans or the existence of any prohibited OCI in connection with any Government Contract or Government Bid. The Company has furnished to Parent complete copies of all such OCI mitigation plans. 

(w) The Company has not made any assignments of its Government Contracts or of any interests in such Government Contracts. The Company has not
entered into any financing arrangements with respect to the performance of any Government Contract. 
 (x) The Company has taken all steps
under any Government Contract and Applicable Law to assert, protect and support their rights in technical data, computer software, computer software documentation, inventions, and other Intellectual Property so that no more than the minimum rights
or licenses required under Applicable Law and Government Contract terms will have been provided to the receiving party and/or the Governmental Entity. Without limiting the foregoing, The Company has timely disclosed and elected title to all subject
inventions, timely listed all technical data and computer software to be furnished with less than unlimited rights in any required assertions table, and included the proper and required restrictive legends on all copies of any technical data,
computer software, computer software documentation, and other Intellectual Property rights delivered under any Government Contract. All such markings and rights were properly asserted and justified under the Government Contracts, and no Governmental
Entity, prime contractor, or higher-tier subcontractor has challenged or, to the Company’s Knowledge, has any basis for challenging, the markings and rights asserted by the Company. 

3.16 Real Estate. Each lease, sublease, license or other occupancy agreement for real property (each a “Lease” and
collectively, “Leases”) to which the Company is a party is in full force and effect and are valid, binding and enforceable in accordance with its terms, except as such enforceability may be limited by the Enforceability Exceptions.
No Lease has been cancelled, mutually terminated or challenged in writing wholly or in part, and to the Company’s Knowledge, such cancellation, termination 

  
 44 

 
or challenge has not been directly and overtly threatened neither for now nor the future and no side agreements have been made with respect to the properties subject to any Lease. Except as set
forth in Section 3.16 of the Disclosure Schedule, the Company has not transferred or assigned any Lease or sublet or sub-sublet any portion of the property covered by any Lease. A
true and correct copy of each Lease and any guaranties with respect with respect thereto have been provided to Parent. The Company has paid all rents, operating expenses and other additional charges in full to the extent such rents, operating
expenses and charges are due and payable under each Lease. The Company’s possession and quiet enjoyment of the premises which are the subject of the Leases has not been disturbed. None of the Company, nor, to the Company’s Knowledge, the
applicable landlord or sublandlord is in default under any Lease. Section 3.16 of the Disclosure Schedule sets forth a complete and accurate list of all Leases and any guaranties with respect thereto, setting forth for each
such Lease, the name of the landlord or sublandlord, the amount of the security deposit paid by the Company for such Lease, and the remaining amount of such security deposit as of the Agreement Date. Any brokerage commissions relating to the Leases
owed by the Company have been paid in full. The Company does not own, and has never owned, any real property. 
 3.17 Title to Property;
Sufficiency. 
 (a) The Company has good and marketable title to all of its properties, interests in property and assets, real and
personal, reflected in the Financial Statements or acquired after the Balance Sheet Date (except properties, interests in properties and assets sold or otherwise disposed of since the Balance Sheet Date in the ordinary course of business), or with
respect to leased and subleased properties and assets, valid leasehold or subleasehold interests (as the case may be) therein, free and clear of all Encumbrances other than Permitted Encumbrances. 

(b) The plants, property and equipment of the Company are adequate for their current use in the operation of the Company Business. 

(c) Upon the Closing, the assets of the Company will constitute all of the assets necessary for Parent and its Affiliates to conduct the
Company Business in all material respects as conducted by the Company immediately prior to the Closing. 
 3.18 Environmental Matters.
The Company is and has been in compliance with all Environmental Laws relating to the properties or facilities owned, used, leased or occupied by the Company at any time (collectively, “Company’s Facilities;” such
properties or facilities currently owned, used, leased or occupied by the Company are defined herein as “Company’s Current Facilities”) and with all Permits required by or issued under Environmental Laws, and no
discharge, emission, release, leak or spill of Hazardous Materials has occurred at any of the Company’s Facilities that may or will give rise to liability of the Company under Environmental Laws. To the Company’s Knowledge, there are no
Hazardous Materials (including asbestos) present in the surface waters, structures, groundwaters or soils of or beneath any of the Company’s Current Facilities. To the Company’s Knowledge, there neither are nor have been any aboveground or
underground storage tanks for Hazardous Materials at the Company’s Current Facilities. No employee of the Company, or any other Person has claimed that the Company is liable for alleged injury or illness resulting from an alleged exposure to a
Hazardous Material. No Action or investigation is pending against the Company, or, to the Company’s Knowledge, threatened against the Company, with respect to Hazardous Materials or Environmental Laws; and the Company has no Knowledge of any
facts or circumstances that could form the basis for assertion of a claim against the Company, or that could form the basis for liability of the Company, regarding Hazardous Materials or regarding actual or potential noncompliance with Environmental
Laws. Except as may be contained in the Leases, the Company has not assumed, undertaken, provided an indemnity with respect to, or otherwise become subject to, any liability of any other Person relating to any Environmental Laws. The Company has
furnished to Parent all material environmental audits, reports, and other environmental documents relating to the Company’s Current Facilities that are in its possession. 

  
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 3.19 Taxes. 

(a) The Company has prepared and timely filed all income and other material Tax Returns for any period ending on or before the Closing Date
and such Tax Returns are true and correct and have been completed in accordance with Applicable Law. All income and other material Taxes due and owing by the Company (whether or not shown on any Tax Return) have been paid when due. 

(b) As of the Agreement Date, the Company has, and as of the Closing Date, will have, (i) timely withheld from their respective
employees, independent contractors, customers, shareholders, and other Persons from whom it is required to withhold Taxes in material compliance with all applicable Tax law, and (ii) timely paid all amounts so withheld to the appropriate
Governmental Entity. 
 (c) During the period of all unexpired applicable statutes of limitations, the Company has not been delinquent in
the payment of any material Tax, which Tax has not yet been paid. There is no Tax deficiency outstanding or assessed or proposed in writing against the Company, nor has the Company executed any agreements or waivers extending any statute of
limitations on or extending the period for the assessment or collection of any Tax. 
 (d) The Company is not a party to any tax-sharing agreement or similar arrangement with any other party, and the Company has not assumed any obligation to pay any Tax obligations of, or with respect to any transaction relating to, any other Person or
agreed to indemnify any other Person with respect to any Tax (other than an agreement entered into in the ordinary course, the principal purpose of which is not Taxes). 

(e) No Tax Return of the Company has been audited by a Governmental Entity, nor is any such audit in process or pending, and the Company has
not been notified in writing of any request for such an audit or other examination. 
 (f) The Company has never been a member of an
affiliated group of corporations filing a consolidated federal income tax return. 
 (g) The Company has never been a United States Real
Property Holding Corporation within the meaning of Section 897(c)(2) of the Code. 
 (h) The Company has never constituted either a
“distributing corporation” or a “controlled corporation” in a distribution of stock qualifying for tax-free treatment under Section 355 of the Code (i) in the two years prior to
the Agreement Date or (ii) in a distribution which could otherwise constitute part of a “plan” or “series of related transactions” (within the meaning of Section 355(e) of the Code) in conjunction with the Closing. 

(i) The Company has not agreed to make, nor is the Company required to make, any adjustment under Section 481 of the Code or
corresponding provision of state, or local law by reason of any change in accounting method. 
 (j) The Company has never been a party to
any joint venture, partnership or other agreement that could be treated as a partnership for Tax purposes. 

  
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 (k) The Company has never requested or received any private letter ruling from the Internal
Revenue Service or comparable rulings from any other Governmental Entity. 
 (l) There are no Encumbrances on the assets of the Company
relating to or attributable to Taxes, other than Permitted Encumbrances. 
 (m) No power of attorney with respect to Taxes has been granted
with respect to the Company, which power of attorney is currently in effect. 
 (n) The Company’s Returns have never been subject to a
Code Section 482 adjustment or corresponding provision of state, local or foreign law. The Company is in compliance with all transfer pricing requirements in all jurisdictions in which the Company does business. 

(o) Within the past three (3) years, no claim has been made by a Governmental Entity in a jurisdiction where the Company does not file
Tax Returns to the effect that the Company is subject to Tax by that jurisdiction. The Company has never had a permanent establishment outside the United States. 

(p) The Company will not be required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable
period (or portion thereof) ending after the Closing Date as a result of any: (A) “closing agreement” as described in Section 7121 of the Code (or any corresponding or similar provision of state, local or foreign income Tax law)
executed on or prior to the Closing Date; (B) intercompany transactions or any excess loss account described in Treasury Regulations under Section 1502 of the Code (or any corresponding or similar provision of state, local or foreign
income Tax law); (C) installment sale or open transaction disposition made on or prior to the Closing Date; or (D) prepaid amount or deferred revenue received on or prior to the Closing Date. 

(q) The Company has (i) not deferred the employer’s share of any “applicable employment taxes” under Section 2302 of
the CARES Act or any similar state, or local law, (ii) not deferred any payroll Tax obligations (including those imposed by Sections 3101(a) and 3201 of the Code) (for example, by a failure to timely withhold, deposit or remit such amounts in
accordance with the applicable provisions of the Code and the Treasury Regulations promulgated thereunder) pursuant to or in connection with IRS Notice 2020-65 or any U.S. presidential memorandum or executive
order, and (iii) properly complied with and duly accounted for any credits received under Sections 7001 through 7005 of the Families First Coronavirus Act (Public Law 116-127) and Section 2301 of the
CARES Act. 
 (r) The Company has not participated in a “listed transaction” within the meaning of Treasury Regulations Section 301.6111-2(b)(2). 
 (s) Each share of Company Common Stock is property that is
“substantially vested” under Section 83 of the Code and Treasury Regulation Section 1.83-3(b). 

(t) There is no payment, agreement, plan, arrangement or other contract covering any employee or other service provider of the Company (or any
other entity treated as a member of the Company’s affiliated group for purposes of Section 280G(d)(5) of the Code), including any of the transactions and arrangements contemplated by or following this Agreement, that, considered
individually or in the aggregate (either alone or in combination with any other event before or after the Closing Date, including termination of service) with any other such payments, agreements, plans, arrangements or other contracts, will, or
could be expected to, give rise directly or indirectly to the payment of any amount that would be characterized as an “excess parachute payment” within the meaning of Section 280G(b)(1) of the Code or similar provisions of Applicable
Law. There is no agreement, plan, arrangement or other contract by which the Company is bound to compensate any Person for excise taxes paid pursuant to Section 4999 of the Code. Section 3.19(t) of the Disclosure
Schedule lists all Persons who are “disqualified individuals” (within the meaning of Section 280G of the Code and the regulations promulgated thereunder) as determined as of Agreement Date. 

  
 47 

 (u) No stock options, stock appreciation rights or other equity-based awards have been
issued or granted by the Company. The Company does not have any “nonqualified deferred compensation plan” (as such term is defined under Section 409A(d)(1) of the Code and the guidance thereunder) under which the Company makes, is
obligated to make or promises to make, payments (each, a “409A Plan”). No compensation shall be includable in the gross income of any current or former employee, director, or consultant of the Company as a result of the operation of
Section 409A of the Code. 
 (v) At all times since March 13, 2000, the Company has been a validly existing S corporation in
accordance with Section 1361 of the Code and corresponding provisions of state law and neither the Company nor any shareholder has taken any action that would cause or result in the termination of its status as an S corporation. The
Company is not liable for a Tax on built in gains under Section 1374 of the Code or corresponding provisions of state law. 
 (w) The
Company has collected and timely remitted to the appropriate Governmental Entity all sales, use, value added and goods and services Taxes required to be collected and remitted or has been furnished a valid exemption or resale certificate. 

3.20 Employee Benefit Plans. 

(a) Section 3.20(a) of the Disclosure Schedule contains an accurate and complete list, with respect to the Company
and any other Person under common control with the Company within the meaning of Section 414(b), (c), (m) or (o) of the Code, and the regulations issued thereunder (collectively an “ERISA Affiliate”) of each plan, program,
policy, practice, contract, agreement or other arrangement providing for compensation, severance, termination pay, deferred compensation, performance awards, stock or stock-related options or awards, pension, retirement benefits, provident fund
benefits, profit-sharing, savings, disability benefits, medical insurance, dental insurance, health insurance, life insurance, death benefit, other insurance, welfare benefits, fringe benefits or other employee benefits or remuneration of any kind,
whether written, unwritten or otherwise, funded or unfunded, including, but not limited to, each “employee benefit plan,” within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), or similar provisions of Applicable Law, which is or has been maintained, contributed to, or required to be contributed to, by the Company or any ERISA Affiliate for the benefit of any current or former employee,
director, advisor, contractor or consultant, or for which the Company has any liability (actual or contingent, direct or indirect) (each a “Company Employee Plan” and collectively, the “Company Employee Plans”). The
Company has not made any plan or commitment to establish any new Company Employee Plan, to modify any Company Employee Plan (except to the extent required by law or to conform any such Company Employee Plan to the requirements of any Applicable Law,
in each case as previously disclosed to Parent in writing, or as expressly required by this Agreement). 
 (b) Documents. The Company
has provided to Parent (i) correct and complete copies of all documents embodying each Company Employee Plan including all amendments thereto and all related trust documents (or a summary of any oral Company Employee Plan), (ii) the three most
recent annual reports (Form Series 5500 and all schedules and financial statements attached thereto), if any, required under ERISA or the Code in connection with each Company Employee Plan, (iii) if the Company Employee Plan is funded, the most
recent annual and periodic accounting of the Company 

  
 48 

 
Employee Plan assets, (iv) the most recent summary plan description together with the summary(ies) of material modifications thereto, if any, with respect to each Company Employee Plan,
(v) all material written agreements and contracts relating to each Company Employee Plan, including administrative service agreements and group insurance contracts, (vi) each affirmative action plan, if applicable, (vii) all
communications material to any employee or employees relating to any Company Employee Plan and any proposed Company Employee Plan, in each case, relating to any amendments, terminations, establishments, increases or decreases in benefits,
acceleration of payments or vesting schedules or other events which would result in any liability to the Company, (viii) all correspondence to or from any governmental agency relating to any Company Employee Plan, (ix) all model
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) forms and related notices, (x) all policies pertaining to fiduciary liability insurance covering the fiduciaries for each Company Employee Plan,
(xi) all discrimination tests for each Company Employee Plan for the three most recent plan years, (xii) all registration statements, annual reports and prospectuses prepared in connection with each Company Employee Plan, to the extent
applicable, (xiii) the most recent IRS determination or opinion letter issued with respect to each Company Employee Plan, and (xiv) all rulings or notices issued by a governmental agency with respect to each Company Employee Plan. 

(c) Company Employee Plan Compliance. The Company has performed all obligations required to be performed by it under, is not in default
or violation of, and the Company has no Knowledge of any default or violation by any other party to, any Company Employee Plan, and each Company Employee Plan has been established and maintained in accordance with its terms and in compliance with
Applicable Law, including ERISA and the Code. Each Company Employee Plan intended to be qualified under Section 401(a) of the Code and each trust intended to qualify under Section 501(a) of the Code has obtained a favorable determination,
notification, advisory and/or opinion letter, as applicable, on which the employer is entitled to rely, as to its qualified status from the IRS, and nothing has occurred since the date of the most recent determination that could reasonably be
expected to cause any such Company Employee Plan or trust to fail to qualify under Section 401(a) or 501(a) of the Code. No “prohibited transaction,” within the meaning of Section 4975 of the Code or Sections 406 and 407 of
ERISA, and not otherwise exempt under Section 408 of ERISA, has occurred with respect to any Company Employee Plan. There are no actions, suits or claims pending or, to the Knowledge of the Company, threatened or reasonably anticipated (other
than routine claims for benefits) against any Company Employee Plan or against the assets of any Company Employee Plan. Each Company Employee Plan can be amended, terminated or otherwise discontinued after the Closing in accordance with its terms,
without liability to Parent, the Company, or any ERISA Affiliate (other than ordinary administration expenses). There are no audits, inquiries or proceedings pending or to the Knowledge of the Company or any ERISA Affiliates, threatened by the IRS,
DOL, or any other Governmental Entity with respect to any Company Employee Plan. Neither the Company nor any ERISA Affiliate is subject to any fine, assessment, penalty or other Tax or liability with respect to any Company Employee Plan under
Section 502(i) of ERISA or Sections 4975 through 4980 of the Code or otherwise by operation of law or contract. The Company has timely made all contributions and other payments required by and due under the terms of each Company Employee Plan.
No event has occurred that could give rise to loss of the tax-qualified or tax-exempt status of any Company Employee Plan. 

(d) No Pension Plan. Neither the Company nor any ERISA Affiliate has ever maintained, established, sponsored, participated in, or
contributed to, any Company Employee Plan or other plan that is an “employee pension benefit plan,” within the meaning of Section 3(2) of ERISA subject to Part 3 of Subtitle B of Title I of ERISA, Title IV of ERISA or Section 412
of the Code or similar provisions of Applicable Law. 

  
 49 

 (e) No Self-Insured Company Employee Plan. Neither the Company nor any ERISA
Affiliate has ever maintained, established, sponsored, participated in or contributed to any self-insured “group health plan” (within the meaning of Section 5000(b)(1) of the Code) that provides benefits to employees (other than a
medical flexible spending account, health reimbursement arrangement or other similar program), including any such plan pursuant to which a stop-loss policy or contract applies. 

(f) Collectively Bargained, Multiemployer and Multiple-Employer Plan. At no time has the Company or any ERISA Affiliate contributed to
or been obligated to contribute to any multiemployer plan (as defined in Section 3(37) of ERISA). Neither the Company nor any ERISA Affiliate has at any time ever maintained, established, sponsored, participated in or contributed to any
“multiple employer plan” or any “multiple employer welfare arrangement” or to any plan described in Section 413 of the Code or Sections 3(40) or 210 of ERISA. 

(g) No Post-Employment Obligations. No Company Employee Plan provides, or reflects or represents any liability to provide,
post-termination or retiree life insurance, health or other employee welfare benefits to any Person for any reason, except as may be required by COBRA or other applicable statute, and neither the Company has represented, promised or contracted
(whether in oral or written form) to any employee (either individually or to employees as a group) or any other Person that such employee(s) or other Person would be provided with life insurance, health or other employee welfare benefits, except to
the extent required by statute. 
 (h) COBRA; FMLA; HIPAA. The Company and each ERISA Affiliate has, prior to the Agreement Date,
complied with the Patient Protection and Affordable Care Act, as amended, the Health Care and Education Reconciliation Act of 2010, as amended, COBRA, the Family Medical Leave Act of 1993, as amended (“FMLA”), HIPAA, the
Women’s Health and Cancer Rights Act of 1998, the Newborns’ and Mothers’ Health Protection Act of 1996, the Patient Protection and Affordable Care Act (as amended), the Health Care and Education Reconciliation Act of 2010 (as amended)
(the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, collectively, the “ACA”), and any similar provisions of foreign or state law applicable to its employees or compliance
with those provisions has been delegated to a third-party administrator, and the Company does not have any Knowledge of any non-compliance by such administrator. Neither the Company nor any ERISA Affiliate has
any unsatisfied obligations to any employees or qualified beneficiaries pursuant to COBRA, HIPAA, ACA or any state or statutory local law governing health care coverage or extension. 

(i) Effect of Merger. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby
or any termination of employment or service in connection therewith will (i) result in any payment (including severance, gratuity, golden parachute, bonus or otherwise), becoming due to any employee, (ii) result in any forgiveness of
indebtedness, (iii) increase any benefits otherwise payable by the Company or any ERISA Affiliate, (iv) obligate the Company or any ERISA Affiliate to fund any trust, or (v) result in the acceleration of the time of payment or vesting
of any such benefits except as required under Section 411(d)(3) of the Code. 
 (j) No Interference or Conflict. To the
Knowledge of the Company, no Company Shareholder or director, officer, employee or consultant of the Company is obligated under any Contract, subject to any judgment, decree, or order of any court or administrative agency that would interfere with
such Person’s efforts to promote the interests of the Company or that would interfere with the Company Business. Neither the execution nor delivery of this Agreement, nor the carrying on of the Company Business nor any activity of such
officers, directors, employees or consultants in connection with the carrying on of the Company Business will, to the Knowledge of the Company, conflict with or result in a breach of the terms, conditions, or provisions of, or constitute a default
under, any Contract under which any of such officers, directors, employees, or consultants is now bound. 

  
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 3.21 Employee Matters. 

(a) Section 3.21(a) of the Disclosure Schedule sets forth, as of the Agreement Date, a true, correct and complete list of all
directors, officers, and employees (including part-time employees and interns) of the Company (redacted where required by Applicable Law), describing for each such individual: (i) date of hire; (ii) job title; (iii) full time or part
time status; (iv) target bonus, commission or other variable compensation for the current fiscal year and any accrued but unpaid bonus, commission or other variable compensation for the current and the most recently completed fiscal year;
(v) whether the position is classified as exempt or non-exempt for wage and hour law purposes and workmen or non-workmen for Indian-based employees;
(vi) accrued but unused vacation, sick leave, or other paid time off; and (vii) any other cash compensation and benefits arrangements. All of the employees of the Company are U.S. Citizens. None of the employees of the Company is entitled
to any change in control or transaction bonus at the Closing or otherwise in connection with the Transaction. 
 (b) Section 3.21(b)
of the Disclosure Schedule sets forth, as of the Agreement Date, a true, correct and complete list of all independent contractors of the Company (redacted where required by Applicable Law), describing for each such individual: (i) date of
engagement and termination date (if applicable); (ii) business location; (iii) average hours worked per week; (iv) rate of compensation; (v) whether the Company has entered into any agreement or contract with the contractor, and
(vi) a brief description of services provided to the Company. 
 (c) All current employees of the Company have entered into
confidentiality and assignment of inventions agreements in favor of the Company that remain in effect, the forms of which will be provided to Parent. To the Knowledge of the Company, no Company employee is in violation of any term of any patent
disclosure agreement, employment agreement, non-competition agreement or any restrictive covenant to any Person relating to the right of any such employee to be employed by the Company because of the nature of
the business conducted or presently proposed to be conducted by the Company or to the use of trade secrets or proprietary information of others. The Company has provided or made available to Parent (i) the employment agreements and any other
agreements providing for terms and conditions of employment or engagement with all directors, officers and employees of the Company; (ii) any and all agreements related to any such directors, officers, and employees’ outside employment or
engagement with any third party; (iii) all of its written employment policies and current employee handbook as well as a summary of all its unwritten employment customs and practices. 

(d) The Company has provided to Parent, as of the Agreement Date, a true, correct and complete list of all of its consultants, independent
contractors, and other personal service providers (including leased and temporary employees) of the Company, and for each, the name, the nature of the services provided, the start date of the engagement, the length of the engagement, where services
are performed, whether the engagement has been terminated by written notice by either party, and the compensation arrangement. The Company has provided copies of all agreements for each of these individuals. 

(e) Except as set forth in Section 3.21(e) of the Disclosure Schedule, the employment of the employees of the
Company is terminable at will, without payment of severance or other compensation or consideration, and without advance notice. To the Company’s Knowledge, no key employee has threatened or indicated an intent to terminate employment in
connection with the Transaction. 

  
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 (f) The Company is in compliance in all material respects with all currently Applicable
Laws and regulations respecting employment, employment practices and terms and conditions of employment, including applicant and employee background checks, immigration laws, anti-discrimination, harassment and retaliation laws, verification of
employment eligibility, employee leave laws, classification of workers as employees and independent contractors, classification of employees as exempt and non-exempt, wage and hour laws, employee leasing and
joint employer laws, profit-sharing, benefits in kind, remuneration for inventions, overtime work, occupational safety and health laws (including law, rules, regulations and orders related to the COVID-19
pandemic), and termination of employment. There are no proceedings pending or, to the Company’s Knowledge, reasonably expected or threatened, between the Company, on the one hand, and any or all of its current or former employees, on the other
hand, including any claims for actual or alleged harassment, discrimination or retaliation based on race, national origin, age, sex, sexual orientation, religion, disability or other protected characteristics, unpaid wages, or tortious conduct,
breach of contract, wrongful termination, defamation, intentional or negligent infliction of emotional distress, interference with contract or interference with actual or prospective economic disadvantage. There are no claims pending, or, to the
Company’s Knowledge, reasonably expected or threatened, against the Company under any workers’ compensation or long-term disability plan or policy. The Company (i) has provided all employees, independent contractors, consultants and
other service providers with all wages, salaries, benefits, relocation benefits, stock options, bonuses and commissions, and all other compensation that is due to be paid to or on behalf of such employees, independent contractors, consultants and
other service providers, (ii) has withheld and reported all amounts required by law or by agreement to be withheld and reported with respect to wages, salaries and other payments or compensation to employees, and (iii) is not liable for
any payment to any trust or other fund governed by or maintained by or on behalf of any Governmental Entity, with respect to unemployment insurance benefits, social security or other benefits or obligations for employees (other than routine payments
to be made in the normal course of business and consistent with past practice). Neither the Company nor any ERISA Affiliate has direct or indirect liability with respect to any misclassification of any Person as an independent contractor rather than
as an employee, any misclassification of any employee in terms of his or her exempt or non-exempt status under applicable wage and hour laws, or with respect to any employee leased from another employer. 

(g) No work stoppage or labor strike against the Company is pending, or, to the Company’s Knowledge, threatened, or reasonably
anticipated. The Company has no Knowledge of any activities or proceedings of any labor union, labor organization or other employee collective group to organize any employees. There are no actions, suits, claims, labor disputes or grievances pending
or, to the Company’s Knowledge, threatened, or reasonably anticipated relating to any labor matters involving any employee, including charges of unfair labor practices. The Company has not engaged in any unfair labor practices within the
meaning of the National Labor Relations Act or any applicable state or local statutory legislation. The Company is not presently, nor has it been in the past, a party to, or bound by, any collective bargaining agreement or union contract with
respect to employees, nor is there a duty to on the part of the Company to bargain with any labor union, labor organization or other employee collective groups, and no collective bargaining agreement is being negotiated by the Company. 

(h) There has been no mass layoff, plant closing or similar employment loss at the Company, at any time, under the federal Worker Adjustment
and Retraining Notification Act or any similar state, local or foreign law (collectively, the “WARN Act”), nor is any mass layoff, plant closing, or similar employment loss planned. The Company has not incurred any liability or
obligation under the WARN Act, nor will it incur any liability or obligation under the WARN Act as a result of the transactions contemplated by this Agreement or that may be based, in whole or in part, on any employment terminations that occur prior
to the Closing. 

  
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 (i) There are no outstanding inspection orders or any pending or, to the Knowledge of the
Company, threatened charges under the Occupational Safety and Health Administration (“OSHA”) or any other applicable occupational health and safety legislation with respect to the Company. The Company has complied in all material
respects with any Orders issued to it under OSHA or any other applicable occupational health and safety legislation and there are no appeals of any Orders that are currently outstanding. 

(j) To the Company’s Knowledge, in the past four (4) years, there have been no allegations of sexual harassment or misconduct
involving any current or former director, officer, employee or independent contractor of the Company and the Company has not entered into any settlement agreements related to allegations of sexual harassment or sexual misconduct by any current or
former director, officer, employee or independent contractor of the Company. 
 (k) To the Company’s Knowledge, no employee or
consultant of the Company is in material violation of: (i) any term of any employment or consulting contract or (ii) any term of any other contract or any restrictive covenant relating to the right of any such employee or consultant to be
employed by or to render services to the Company or to use trade secrets or proprietary information of others. To the Company’s Knowledge, the employment of any employee or engagement of any consultant by the Company does not subject it to any
liability to any third party. 
 3.22 Insurance. Section 3.21(a) of the Disclosure Schedule sets forth a
list of all casualty, general liability and other insurance policies and fidelity bonds maintained by the Company (the policies and bonds required to be set forth thereon, the “Insurance Policies”). Each of the Insurance
Policies is in full force and effect. The Company has paid when due all premiums due and payable under all such Insurance Policies. The Company has complied in all material respects with the provisions of each Insurance Policy under which it is the
insured party. No insurance carrier has provided written notice to the Company that it has cancelled or generally disclaimed coverage or liability under any Insurance Policy or indicated any intent to do so or not to renew any such policy. There are
no pending claims against the Insurance Policies or any prior insurance policies of the Company as to which the insurers have denied liability or where available insurance coverage (including defense costs) has been or will be exceeded. The Company
has not received written notice of a default under, or a termination or cancellation of, or an increase in premium with respect to, any of the Insurance Policies. The Company has made available to Parent complete and accurate copies of each
Insurance Policy. All premiums due or payable under the Insurance Policies have been paid, and there is no retrospective, audited, or similar premium due in excess of already paid amounts. 

3.23 Compliance with Laws. The Company has complied in all material respects with, and each is currently in compliance in all material
respects with, and has not received any notices of violation with respect to, any Applicable Law with respect to the conduct, ownership or operation of the Company Business. 

3.24 International Trade Matters. 

(a) Section 3.24(a) of the Disclosure Schedule sets forth a complete and accurate list of (i) the export control
classification numbers (ECCNs) for each Company Product exported by the Company, and (ii) any export licenses or license exceptions applicable to each Company Product. 

(b) The Company is, and at all times has been, in compliance with and have not been and are not in material violation of any International
Trade Law. The Company has procured appropriate export licenses and approvals prior to releasing, sharing, or otherwise exporting any Company Product or any technology or technical data to any foreign nationals, wherever located. 

  
 53 

 (c) Without limiting the foregoing, the Company has not provided, sold to, or otherwise
transferred, without any required approval from the U.S. Government, any products, software, hardware, Technology, or services, directly or indirectly, to (i) Cuba, Iran, North Korea, Syria, the Crimea region of the Ukraine, or any other
country or territory against which the United States maintains an economic embargo; (ii) any instrumentality, agent, entity, or individual that is acting on behalf of, or directly or indirectly owned or controlled by, any Governmental Entity of
such countries; (iii) nationals of such countries; or (iv) any organization, entity, or individual appearing on a U.S. Government list of parties with whom companies are prohibited from transacting business including the Specially
Designated Nationals and Blocked Persons List, the Foreign Sanctions Evaders List, or the Sectoral Sanctions Identification List, which are maintained by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”),
the Denied Persons List, Entity List, and Unverified List, which are maintained by the Bureau of Industry and Security of the U.S. Department of Commerce, and the List of Debarred Parties maintained by the Directorate of Defense Trade Controls of
the U.S. Department of State (the “Prohibited Party Lists”). 
 (d) None of the Company nor any of its shareholders,
directors, officers, or employees (i) appear on a Prohibited Party List or is owned or controlled by an individual or entity that is on the Prohibited Party List; (ii) is the subject to any applicable sanctions administered or enforced by
OFAC or any other relevant sanctions authority; or (iii) is located, organized, or resident in a country or territory that is subject to an economic embargo by the U.S. Government (including Cuba, Iran, North Korea, Syria, and the Crimea region
of the Ukraine). 
 (e) The Company has not participated, directly or indirectly, in any boycotts or other similar practices in violation
of, or triggering penalties under, the regulations of the United States Department of Commerce or Section 999 of the Internal Revenue Code. 

(f) The Company has not received, any actual or threatened order, notice, or other communication from any Governmental Entity of any actual or
potential violation or failure to comply with any International Trade Law. The Company has not made, and does not intend to make, any disclosure (voluntary or otherwise) to any Governmental Entity with respect to any potential violation or liability
of the Company arising under or relating to any International Trade Law. To the Knowledge of the Company, there are no allegations, complaints, charges, investigations or administrative enforcement actions, pending, expected, threatened, or closed
by any Governmental Entity with respect to any potential violation or liability of the Company under or relating to any International Trade Law. 

3.25 Anti-Corruption Compliance. 

(a) None of the Company, nor any shareholder, director, officer, employee, agent or Representative of the Company (acting on behalf of the
Company): 
 (i) has been convicted of, or, to the Knowledge of the Company, accused, charged or investigated by any Governmental Entity
with any violation of, any Anti-Corruption/AML Law or other Applicable Law related to fraud, theft, embezzlement, bribery, breach of fiduciary responsibility, financial misconduct, obstruction of an investigation, or sanctioned violations; 

(ii) has used any funds (whether of the Company or otherwise) for unlawful contributions, gifts, entertainment or other unlawful expenses
relating to political activity; 

  
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 (iii) has with a corrupt or improper intention directly or indirectly (through third
parties) paid, provided, promised, offered, or authorized the payment or provision of money, a financial advantage, or anything else of value to (A) an official, employee, or agent of any government, military, public international organization,
state-owned or affiliated entity (including sovereign wealth funds or public hospitals, universities, or research labs), political party, or any instrumentality thereof (collectively “Government Officials”), (B) a political party or
candidate for political office, or (C) any other Person, for purposes of obtaining, retaining, or directing permits, licenses, favorable tax or court decisions, special concessions, contracts, business, or any other improper advantage; 

(iv) has otherwise offered, promised, authorized, provided, or incurred or will in the future offer, authorize, make, pay or receive, directly
or indirectly, any bribe, kickback, or other corrupt or unlawful payment, expense, contribution, gift, entertainment, travel or other benefit or advantage (collectively, “Restricted Benefits”) to or for the benefit of any Government
Official, political party or candidate, or any other Person; 
 (v) has solicited, accepted, or received any Restricted Benefits from any
Person; 
 (vi) has established or maintained any slush fund or other unlawful or unrecorded fund or account; 

(vii) has inserted, concealed, or misrepresented corrupt, illegal, or improper payments, expenses or other entries in their books and records;

 (viii) is a Government Official or political candidate or has immediate family members who are Government Officials or political
candidates; 
 (ix) has concealed or disguised the existence, illegal origins, and/or illegal application of criminally derived
income/assets or otherwise caused such income or assets to appear to have legitimate origins or constitute legitimate assets; 
 (x) has
used any funds to finance terrorist, drug-related, or other illegal activities; 
 (xi) has violated, caused other parties to violate, or is
currently in violation of, directly or indirectly, any provision of any Anti-Corruption/AML Laws or any Applicable Laws of similar effect; or 

(xii) has received any communication that alleges any of the foregoing. 

(b) The Company has not conducted any internal or government-initiated investigation, or made a voluntary or involuntary disclosure to any
Governmental Entity with respect to any alleged act or omission arising under or relating to any noncompliance with any Anti-Corruption/AML Laws. There are no pending or, to the Knowledge of the Company, threatened claims against the Company with
respect to violations of any Anti-Corruption/AML Laws. 
 3.26 Accounts Receivable. The accounts receivable of the Company are valid
and genuine, have arisen solely out of bona fide sales and deliveries of goods, performance of services, and other business transactions in the ordinary course of business consistent with past practices in each case with persons other than
Affiliates, are not subject to any prior assignment or Encumbrance, and are not subject to valid defenses, set-offs or counter claims. The Company has not been notified in writing that any outstanding accounts
receivable of the Company is being disputed by the payor. 

  
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 3.27 Customers. Section 3.27 of the Disclosure Schedule
sets forth the top ten (10) customers of the Company for the twelve (12) month period ended on March 31, 2021 based on gross revenue over such period (collectively, the “Significant Customers”). Since March 31,
2021, no Significant Customer has canceled or otherwise terminated or adversely modified, or provided written notice that such Significant Customer intends to cancel or otherwise terminate or adversely modify, its relationship with respect to the
Company Business. 
 3.28 Suppliers. Section 3.28 of the Disclosure Schedule sets forth (a) the single
source suppliers of the Company Business and (b) the top ten (10) suppliers of the Company Business for the twelve (12) month period ended on March 31, 2021 based on gross purchases over such period (collectively, the
“Significant Suppliers”). Since March 31, 2021, no Significant Supplier has ceased or substantially reduced, or has provided written notice that such Significant Supplier intends (A) to cease or substantially reduce the
distribution of raw materials, supplies, services, merchandise and other goods to the Company whether before or after the Closing or (B) intends to provide raw materials, supplies, services, merchandise and other goods to the Company Business
after the Closing on terms and conditions materially less favorable to those used in its current sales to the Company, subject to general and customary price increases. 

3.29 Bank Accounts. Section 3.29 of the Disclosure Schedule sets forth a true and complete list of the names
and locations of all banks, trust companies, savings and loan associations and other financial institutions at which the Company maintains a safe deposit box or account, and the related account numbers and authorized signatories with respect
thereto. 
 3.30 Inventory. All Inventory held by the Company, whether or not reflected in the Closing Balance Sheet, as of the
Closing will consist, in all material respects, of a quality and quantity usable and, with respect to finished goods, salable in the ordinary course of business consistent with past practice, except for obsolete, damaged, defective or slow-moving
items that have been written off or written down to fair market value or for which adequate reserves have been established on the Closing Balance Sheet. No such Inventory is held on a consignment basis. As of the Closing, the quantities of each item
of such Inventory (whether raw materials, work-in-process or finished goods) will not be excessive in any material respect, but will be reasonable in the then-present
circumstances of the Company Business. 
 3.31 Brokers’ and Finders’ Fee. No broker, finder or
investment banker is entitled to brokerage or finders’ fees or agents’ commissions or investment bankers’ fees or any similar charges in connection with the Merger, this Agreement or any transaction contemplated hereby, except for the
fees of Crux CFO Advisors, which shall be included as Transaction Expenses. 
 3.32 No Additional Representations; No Reliance. Except
for the representations and warranties made in this Section 3, or in any certificate or ancillary agreement contemplated herein, neither the Company nor any other Person makes any express or implied representation or
warranty with respect to the Company or its businesses, operations, assets, liabilities or condition (financial or otherwise) in connection with this Agreement or the Transactions, and the Company hereby disclaims any such other representations or
warranties. In particular, without limiting the foregoing disclaimer, except for the representations and warranties made by the Company in this Section 3, or in any certificate or ancillary agreement contemplated herein,
neither the Company nor any other Person makes or has made any representation or warranty to Parent, Merger Sub or any of their respective Affiliates or Representatives with respect to (i) any financial projection, forecast, estimate, budget or
prospect information relating to the Company or its properties, assets or businesses or (ii) any oral or written information presented to Parent, Merger Sub or any of their respective Affiliates or Representatives in the course of their due
diligence investigation of the Company, the negotiation of this Agreement or in the course of the Transactions. 

  
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 4. Representations and Warranties of Parent and Merger Sub. Parent and Merger Sub, as
applicable, jointly and severally represent and warrant to the Company and the Company Shareholders as of the Agreement Date and as of the Closing Date that the statements contained in this Section 4 are true and correct in
all material respects. 
 4.1 Organization, Standing and Power. Each of Parent and Merger Sub is a corporation duly organized, validly
existing and in good standing under the laws of the state of Delaware. Each of Parent and Merger Sub has the corporate power to own its properties and to carry on its business as now being conducted and as proposed to be conducted and is duly
qualified to do business and is in good standing in each jurisdiction in which the failure to be so qualified and in good standing could reasonably be expected to have a material adverse effect on the ability of Parent or Merger Sub to consummate
the Merger or the other transactions contemplated hereby. 
 4.2 Authority. 

(a) Each of Parent and Merger Sub have all requisite corporate power and authority to enter into this Agreement and to consummate the
transactions contemplated hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of Parent and Merger Sub, as
applicable. This Agreement has been duly executed and delivered by Parent and Merger Sub and constitutes the valid and binding obligations of Parent and Merger Sub enforceable against Parent and Merger Sub, as applicable, in accordance with its
terms, except as may be limited by the Enforceability Exceptions. 
 (b) No consent, approval, order or authorization of or registration,
declaration or filing with any Governmental Entity is required by or with respect to Parent or any of its subsidiaries (including Merger Sub) in connection with the execution and delivery of this Agreement by Parent or the consummation by Parent of
the transactions contemplated hereby, except for such consents, authorizations, filings, approvals and registrations which, if not obtained or made, would not reasonably be expected to have a material adverse effect on the ability of Parent or
Merger Sub to consummate the Merger or prevent, materially alter or delay any of the transactions contemplated by this Agreement. 
 4.3
SEC Filings. 
 (a) Except as set forth on Section 4.3(a) of the Disclosure Schedules, since
August 25, 2021, all reports, schedules, forms, statements and other documents (including exhibits, schedules, financial statements and all other information incorporated therein) required to be filed by Parent with the SEC (the “Parent
SEC Documents”) have been filed with the SEC. As of the time it was filed with the SEC (or, if amended or superseded by a filing prior to the date hereof, then on the date of such filing): (i) each of the Parent SEC Documents complied as to
form in all material respects with the applicable requirements of the Securities Act, the Exchange Act and the Sarbanes-Oxley Act (as the case may be); and (ii) none of the Parent SEC Documents contained when filed (and, in the case of
registration statements and proxy statements, on the dates of effectiveness and the dates of mailing, respectively) any untrue statement of a material fact or omitted, as the case may be, to state a material fact required to be stated or
incorporated by reference therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. None of Parent’s subsidiaries is currently subject to the periodic reporting
requirements of the Exchange Act. Parent is in compliance in all material respects with the applicable provisions of the Sarbanes-Oxley Act. To the knowledge of Parent, as of the date hereof, none of the Parent SEC Documents is the subject of
ongoing SEC review or outstanding SEC investigation and there are no outstanding or unresolved comments received from the SEC with respect to any of the Parent SEC Documents. None of Parent’s subsidiaries is required to file or furnish any
forms, reports, or other documents with the SEC. 

  
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 (b) Parent is in compliance in all material respects with all current listing requirements
of NASDAQ. 
 (c) Each of the consolidated financial statements (including, in each case any notes and schedules thereto) contained in or
incorporated by reference into the Parent SEC Documents complied as to form in all material respects with the published rules and regulations of the SEC with respect thereto as of their respective dates. The balance sheets included in such financial
statements fairly present, in all material respects, the financial position of the Parent as of their respective dates, and the related statements of operations, stockholder’s deficit and cash flows included in such financial statements fairly
present, in all material respects, the results of its operations and cash flows for the periods indicated therein, in each case in accordance with GAAP applied on a consistent basis, with only such deviations from such accounting principles and/or
their consistent application as are referred to in the notes to such financial statements and subject, in the case of any unaudited financial statements, to normal year-end audit adjustments and the absence of
related notes (none of which year-end adjustments or footnote disclosures would be material). 
 4.4
Absence of Certain Changes or Events. Since August 25, 2021, except in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby or as disclosed in the Parent SEC Documents,
the business of Parent and each of its subsidiaries has been conducted in the ordinary course of business consistent with past practice. 

4.5 Ownership and Operations of Merger Sub. Merger Sub has been formed solely for the purpose of engaging in the transactions
contemplated hereby and prior to the Effective Time will have engaged in no other business activities and will have incurred no liabilities or obligations other than as contemplated herein. All of the issued and outstanding capital stock of Merger
Sub is owned directly by Parent. 
 4.6 Financing. Parent has and will have at the Closing sufficient funds immediately available to
enable it to pay the Cash Merger Consideration. Parent will have sufficient funds available to it to pay the Holdback Amount, the 2022 Earnout Maximum Consideration and the 2023 Earnout Maximum Consideration (assuming such amounts will be paid in
full) as and when due and payable pursuant to the terms of this Agreement. Each of Parent and Merger Sub confirms that it is not a condition to Closing or any of its other obligations under this Agreement that Parent or Merger Sub obtain financing
for or in connection with the transactions contemplated by this Agreement and the Transaction Documents. 
 5. Conduct Prior to the
Closing. 
 5.1 Conduct of Company Business. 

(a) During the period from the Agreement Date and continuing until the earlier of the termination of this Agreement and the Closing (the
“Pre-Closing Period”), the Company agrees (except to the extent expressly contemplated by this Agreement or as consented to in writing by Parent): (i) to carry on the Company Business in
the usual regular and ordinary course in substantially the same manner as heretofore conducted; (ii) to pay the debts and Taxes of the Company when due subject to (A) any good faith disputes over such debts or Taxes; and
(B) Parent’s consent to the filing of material 

  
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Returns, if applicable; (iii) to pay or perform other obligations when due; and (iv) to use commercially reasonable efforts to (A) preserve intact the present business
organizations of the Company, (B) keep available the services of the present officers of the Company and the Key Employees and (C) preserve the relationships of the Company with customers, suppliers, distributors, licensors, licensees, and
others having business dealings with the Company. 
 (b) The Company agrees to promptly notify Parent of (i) any material event or
occurrence not in the ordinary course of the Company Business, (ii) any event which could reasonably be expected to have a Company Material Adverse Effect; and (iii) any change in its capitalization as set forth in
Section 3.5. 
 (c) Without limiting the foregoing, except as expressly contemplated by this Agreement or the
Disclosure Schedule, during the Pre-Closing Period, the Company shall not and shall not permit any of the following, without the prior written consent of Parent, which shall not be unreasonably conditioned,
withheld or delayed: 
 (i) Charter Documents. Cause or permit any amendments to the Organizational Documents of the Company; 

(ii) Dividends; Changes in Capital Stock. Declare or pay any dividends on or make any other distributions (whether in cash, stock or
property) in respect of any of the capital stock or equity securities of the Company, or split, combine or reclassify any of any of the capital stock or equity securities of the Company, or issue or authorize the issuance of any other securities in
respect of, in lieu of or in substitution for shares or other interests of any of the capital stock or equity securities of the Company, or repurchase or otherwise acquire, directly or indirectly, any shares or other interests of any of the capital
stock or equity securities of the Company; 
 (iii) Company Stock Plans, etc. Adopt a stock plan of the Company or
grant any equity or phantom equity awards; 
 (iv) Issuance of Securities. Issue, deliver or sell or authorize or propose the
issuance, delivery or sale of, or purchase or propose the purchase of, any shares of the Company’s capital stock or securities convertible into, or subscriptions, rights, warrants or options to acquire, or other agreements or commitments of any
character obligating the Company to issue any such shares, equity securities or other convertible securities; 
 (v) Intellectual
Property. Enter into or amend any Contracts pursuant to which the Company transfers or licenses to any Person or entity any rights to its Intellectual Property or any other party is granted rights of any type or scope with respect to any of the
Company Products or Intellectual Property; 
 (vi) Dispositions. Sell, lease, license or otherwise dispose of or encumber any of the
properties or assets of the Company that are material, individually or in the aggregate, to the Company Business other than in the ordinary course of business consistent with past practice; 

(vii) Indebtedness. Incur any Indebtedness in excess of $50,000 in the aggregate; 

(viii) Agreements. Enter into, terminate or amend any Material Contract or any Contract that would be a Material Contract if in
existence on the Agreement Date; 

  
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 (ix) Payment of Obligations. Pay, discharge or satisfy, in an amount in excess of
$50,000 in the aggregate, any claims, liabilities or obligations (absolute, accrued, asserted or unasserted, contingent or otherwise) arising other than in the ordinary course of business, other than the payment, discharge or satisfaction of
liabilities reflected or reserved against in the Financial Statements; 
 (x) Capital Expenditures. Make any capital expenditures,
capital additions or capital improvements, in excess of $50,000 in the aggregate other than in connection with the expansion of the Company’s existing facilities and the build out thereof as set forth on Schedule 5.1(c)(x); 

(xi) Insurance. Materially reduce the amount of any insurance coverage provided by existing Insurance Policies; 

(xii) Termination or Waiver. Terminate or waive any right of substantial value, other than in the ordinary course of business or
forgive, cancel or defer any Indebtedness or waive any claim or rights of material value (including any Indebtedness owing by any holder of the Company’s securities, or any officer, director or employee of the Company); 

(xiii) Employee Benefit Plans; New Hires; Pay Increases. Except as contemplated by this Agreement or as set forth on Schedule
5.1(c)(xiii), amend any Company Employee Plan or adopt any plan that would constitute a Company Employee Plan if in existence on the date hereof, hire any new employee or otherwise change the employment status or position of any current
employee, or grant, agree to grant or pay any discretionary bonus, special remuneration or special noncash benefit to any employee, officer, director, consultant, independent contractor or other service provider of the Company (except payments and
benefits made pursuant to written agreements outstanding on the Agreement Date and listed in Section 3.20(a) of the Disclosure Schedule), or increase the benefits, salaries, wage rates or other annual compensation of its
employees, officers, directors, consultants, independent contractors or other service providers; 
 (xiv) Severance Arrangements and
Terminations. Except as contemplated by this Agreement or as set forth on Schedule 5.1(c)(xiv), grant, agree to grant or pay any severance, change of control, retention or termination pay or benefits (A) to any director or officer or
(B) to any employee, consultant, independent contractor, or other service provider, or terminate the employment or service of any key employee, officer, director, consultant, independent contractor or other service provider of the Company other
than for cause; 
 (xv) Lawsuits. Commence a lawsuit other than for the routine collection of bills in the ordinary course of
business consistent with past practice; 
 (xvi) Acquisitions. Acquire or agree to acquire by merging with, or by purchasing a
substantial portion of the stock or assets of, or by any other manner, any business or any corporation, partnership, association or other business organization or division thereof or otherwise acquire or agree to acquire any assets that are material
individually or in the aggregate, to its business, taken as a whole; 
 (xvii) Taxes. Other than in the ordinary course of business
or as required by Applicable Law, make or change any election in respect of Taxes, including an election under Section 965(h) of the Code, adopt or change any accounting method in respect of Taxes, change an annual accounting period, file any
Return or any amendment to a Return, enter into any closing agreement, settle any claim or assessment in respect of Taxes, or consent to any extension or waiver of the limitation period applicable to any claim or assessment in respect of Taxes; 

  
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 (xviii) Accounting. Change accounting methods or practices or revalue any of its
assets (including writing down the value of inventory or writing off notes or accounts receivable otherwise than in the ordinary course of business), except in each case as required by changes in GAAP or Applicable Law; and 

(xix) Other. Take or agree in writing or otherwise to take, any of the actions described in
Sections 5.1(c)(i) through (xviii) above, or any action that would cause a material breach of its representations or warranties contained in this Agreement or prevent it from materially performing or cause it
not to materially perform its covenants hereunder. 
 5.2 No Solicitation. During the
Pre-Closing Period, the Company shall not, directly or indirectly through any officer, director, employee, Representative or agent of such Person, or otherwise: (i) solicit, initiate, or encourage any
inquiries or proposals that constitute, or could reasonably be expected to lead to, a proposal or offer for a merger, consolidation, share exchange, business combination, sale of all or substantially all assets, sale of shares of capital stock, or
any similar transaction involving the Company other than the transactions contemplated by this Agreement (any of the foregoing inquiries or proposals an “Acquisition Proposal”); (ii) engage or participate in negotiations or
discussions concerning, or provide any non-public information to any Person or entity relating to, any Acquisition Proposal; or (iii) agree to, enter into, accept, approve or recommend any Acquisition
Proposal. The Company represents and warrants that it has the legal right to terminate any pending discussions or negotiations relating to an Acquisition Proposal without payment of any fee or other penalty. 

5.3 R&W Insurance Policy. Parent has purchased and bound, or caused to be bound, concurrently with the execution of this Agreement,
the R&W Insurance Policy. During the term of the R&W Insurance Policy, Parent (a) shall, and shall cause the Surviving Corporation and their Affiliates to, maintain the R&W Insurance Policy in full force and effect and
(b) shall not, and shall not permit the Surviving Corporation or any of their Affiliates to (1) amend, repeal or modify the anti-subrogation provisions of the R&W Insurance Policy that could materially adversely affect the Company
Shareholders, their Affiliates or respective Representatives without the Shareholder Representative’s prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed), (2) take any action or omit to take any
action that would result in the cancellation or termination of the R&W Insurance Policy or coverage thereunder other than by payment of claims thereunder, or (3) permit the assignment, substitution or transfer of the rights or obligations
of the Insurer other than as allowed by the terms of the R&W Insurance Policy. Fifty percent (50%) of the R&W Insurance Premium shall constitute a Transaction Expense. 

6. Additional Agreements. 

6.1 Access to Information. 

(a) During the Pre-Closing Period, the Company shall afford Parent and its accountants, counsel and
other Representatives, reasonable access to (i) all of the Company’s properties, personnel, books, contracts, commitments and records, and (ii) all other information concerning the business, properties and personnel of the Company as
Parent may reasonably request. 
 (b) Subject to compliance with Applicable Law, during the
Pre-Closing Period, each of Parent and the Company shall confer on a regular and frequent basis with one or more representatives of the other party to report operational matters of materiality and the general
status of ongoing operations. 

  
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 6.2 Confidentiality. 

(a) The parties acknowledge that Parent (or one of its Affiliates) and the Company have previously executed a Mutual Non-Disclosure Agreement, dated September 8, 2020 (the “Confidentiality Agreement”), which Confidentiality Agreement is hereby incorporated herein by reference and shall continue in full force
and effect in accordance with its terms, as if such Confidentiality Agreement were entered into directly by each of the parties hereto; provided that from and after the Closing, all of Parent’s and its Affiliates obligations under the
Confidentiality Agreement shall terminate and be of no further force or effect. Following the Closing, all Trade Secrets owned by the Company shall be deemed to be Trade Secrets of the Parent and its Affiliates. 

(b) From and after the Closing, except with the prior written consent of Parent, the Shareholder Representative agrees to keep confidential
and not disclose (other than to the Company Shareholders and its and their officers, directors, employees, attorneys and other advisors with a bona fide need to know, provided that such Persons have agreed to the confidentiality restrictions
contained herein): (i) matters regarding the interpretation, performance, breach or termination of this Agreement or any agreement executed in connection herewith, and (ii) all confidential and/or proprietary information of the Company obtained
by the Shareholder Representative or its directors, officers, employees, agents or its other Representatives, except to the extent that (A) such information has otherwise been made public, (B) any such information is reasonably necessary
for enforcing the Company Shareholders’ or the Shareholder Representative’s rights hereunder or thereunder, or (C) the Shareholder Representative is required by Applicable Law to divulge or disclose any such information (in which case
the Shareholder Representative shall promptly notify Parent in advance of disclosing such information and use commercially reasonable efforts to cooperate with Parent to limit such disclosure, to the extent permitted under Applicable Law). 

6.3 Public Disclosure. Parent shall consult with the Company regarding Parent’s initial press release. Prior to the Closing,
(a) neither the Company nor the Shareholder Representative shall issue any press release or otherwise make any public statement or other public (or non-confidential) disclosure (whether or not in response
to an inquiry) regarding the terms of this Agreement and the transactions contemplated hereby without the prior approval of Parent and (b) Parent shall not issue any press release or otherwise make any public statement or other public (or non-confidential) disclosure (whether or not in response to an inquiry) regarding the terms of this Agreement and the transactions contemplated hereby without the prior approval of the Company, except in each case
as may be required by Applicable Law or by obligations pursuant to any listing agreement with any national securities exchange. From and after the Closing, neither the Parent nor the Shareholder Representative shall issue any press release or
otherwise make any public statement or other public (or non-confidential) disclosure (whether or not in response to an inquiry) regarding the terms of this Agreement and the transactions contemplated hereby
without the prior approval of other party, except as may be required by Applicable Law or by obligations pursuant to any listing agreement with any national securities exchange or as may be required to enforce this Agreement. For the avoidance of
doubt, each party may make statements that are not inconsistent with previous press releases, public disclosures or public statements made by the parties in connection with this Section 6.3. 

6.4 Notification of Certain Matters. Each of the Company and Parent shall give immediate notice to the other if any of the following
occurs during the Pre-Closing Period: 
 (a) receipt of any notice of, or other communication
relating to, a default, or event which with notice or lapse of time or both would become a material default, under any Material Contract; 

  
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 (b) receipt of any notice or other communication in writing from any Person alleging that
the consent of such Person is or may be required in connection with the transactions contemplated by this Agreement; 
 (c) receipt of any
notice or other communication from any Governmental Entity in connection with the transactions contemplated by this Agreement; 
 (d) the
occurrence or non-occurrence of any fact or event which could reasonably be expected to cause any covenant, condition or agreement hereunder not to be complied with or satisfied; 

(e) the commencement or threat of any action involving or affecting the Company or any of its respective properties or assets; 

(f) the occurrence or non-occurrence of any fact or event that causes or is reasonably likely to cause
a breach by the Company or Parent of any provision of this Agreement applicable to it; 
 (g) the occurrence of any fact or event of which
such party becomes aware that results in any material inaccuracy in any representation or warranty of such party in this Agreement; and 

(h) the occurrence of any event that, had it occurred prior to the Agreement Date without any additional disclosure hereunder, would have
constituted a Company Material Adverse Effect; provided, that the delivery of any notice by any party pursuant to this provision shall not modify any representation or warranty of such party, cure any breaches thereof or limit or otherwise
affect the rights or remedies available hereunder to the other parties and the failure of the party receiving such information to take any action with respect to such notice shall not be deemed a waiver of any breach or breaches to the
representations or warranties of the party disclosing such information. 
 6.5 Employees. 

(a) During the Pre-Closing Period, the Company will use commercially reasonable efforts in
consultation with Parent to retain the employees of the Company, including the Key Employees, through the Closing Date and following the Merger. 

(b) Parent intends for the Company to continue to employ all of the employees of the Company, subject to confirmation that they satisfy
Parent’s generally applicable employment requirements. For all continuing employees and until December 31, 2021, Parent will continue to provide compensation and benefits under the Company’s existing plans. Effective on or about
January 1, 2022, all continuing employees will be provided compensation and benefits pursuant to Parent plans that are comparable in the aggregate with the compensation and benefits (excluding equity compensation, severance pay and benefits,
retiree health benefits, and defined benefit pension plan benefits) enjoyed by Company employees immediately prior to the Effective Time or by similarly-situated employees of Parent or its Affiliates. Parent will use commercially reasonable efforts
to cause that each continuing employee will receive credit for purposes of eligibility to participate and vesting under each Parent plan for years of service with the Company prior to the Effective Time. In addition, with respect to any health and
welfare plan maintained by Parent or its Affiliates (including the Company) in which any continuing employee is eligible to participate on or after the Closing Date, Parent will use commercially reasonable efforts to (A) cause pre-existing conditions or limitations, exclusions, eligibility waiting periods, required physical examinations, and other evidence of insurability requirements under

  
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any Parent plans that are welfare benefit plans in which such continuing employees will be eligible to participate upon or after the Effective Time to be waived and (B) provide credit for
any co-payments, co-insurance, deductibles, offsets, out-of-pocket expenses or similar
requirements under any such plans in which the continuing employee (and his or her eligible dependents) will participate upon or after the Effective Time. As of the Closing, Parent will cause all vacation accrued by continuing employees under the
vacation policies of the Company to be carried over by Parent and shall be permitted to be maintained up to the levels permitted under the applicable policy of the Company. 

(c) The parties hereto acknowledge and agree that the terms set forth in this Section 6.5 shall not create any right
in any employee of the Company or any other Person, to any continued employment with the Company, Parent or any of its Affiliates or compensation or benefits of any nature or kind whatsoever. This Section 6.5 is not
intended, and shall not be deemed, to confer any rights or remedies upon any Person other than the parties hereto and their respective successors and permitted assigns, to create any agreement of employment with any Person or to otherwise create any
third-party beneficiary hereto. Nothing contained in this Section 6.5 shall be deemed to be the adoption of, or an amendment to, any employee benefit plan, program, arrangement, contract or practice, or otherwise limit the
right of the Parent to amend, modify or terminate any employee benefit plan, program, arrangement, contract, practice or other Company program, including but not limited to its travel or other policies. 

(d) In the event this Agreement is terminated without giving effect to the Merger, Parent agrees that it and its Affiliates will not, during
the two years after the date of termination, solicit for employment (as an employee, independent contractor, consultant or otherwise), any employee of the Company as of the Agreement Date. The foregoing shall not restrict the Parent and its
Affiliates from making general solicitations of employment not specifically directed to the employees of the Company. 
 6.6 Expenses.
Whether or not the Merger is consummated, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expense. For purposes of clarity, the Company shall be
responsible for the Transaction Expenses. 
 6.7 Release and Termination of Security Interests. The Company shall use its commercially
reasonable efforts to seek and obtain the release of all outstanding security interests, in any, of the Company’s assets and to terminate all UCC financing statements, if any, which have been filed with respect to such security interests. 

6.8 Required Contract Consents. To the extent requested by Parent, the Company shall use its commercially reasonable efforts to obtain
the consent to any Contract for which consent is required in connection with the Merger or the other transactions contemplated by this Agreement, and shall deliver such consents to Parent. 

6.9 Shareholder Approval. 

(a) As promptly as practicable, but in no event more than five (5) Business Days following the Agreement Date, the Company shall submit
this Agreement and the Transactions (including the Merger) to all of the Company Shareholders for approval and adoption as provided by the DGCL and the DC Code and the Company’s Organizational Documents. Such notice shall advise the Company
Shareholders of their right to pursue appraisal rights and otherwise satisfy the requirements of the DC Code. Such submission, and any proxy or consent in connection therewith, shall specify that adoption of this Agreement shall constitute approval
by the Company Shareholders of: (i) the holdback 

  
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and indemnification obligations of the Company Shareholders (subject to the limitations herein) and (ii) the appointment of Michael Whalen as the Shareholders’ Representative, with the
rights and responsibilities set forth in this Agreement. The Company shall use its commercially reasonable efforts to obtain the approval of or consent to the Merger and this Agreement of as many of the Company Shareholders as practicable following
the Agreement Date. 
 (b) Any materials to be submitted to the Company Shareholders in connection with the solicitation of their approval
of the Merger and this Agreement shall be subject to the reasonable review and approval by Parent. 
 6.10 Support Agreements. The
Company shall use its commercially reasonable efforts to obtain prior to the Closing a Support Agreement executed by each Company Shareholder, other than a Company Shareholder who has executed and delivered a Voting and Support Agreement. 

6.11 Data Room. Within five (5) Business Days after the Closing Date, the Company will deliver to Parent on one or more memory
sticks a complete and accurate electronic copy of the data room as it existed on the Closing Date. Delivery of any item included in the memory sticks pursuant to this Section 6.10 shall constitute “delivery”
within the meaning of Section 3. 
 6.12 Tax Matters. 

(a) Allocation of Taxes. In the case of any Taxes relating to a Tax period that includes (but does not end on) the Closing Date (the
“Straddle Period”), the portion of such Tax which relates to the Pre-Closing Tax Period shall (i) in the case of any Taxes other than Taxes based upon or related to income, gains or
receipts, be deemed to be the amount of such Tax for the entire Straddle Period multiplied by a fraction the numerator of which is the number of days in the Pre-Closing Tax Period and the denominator of
which is the number of days in the entire Straddle Period, and (ii) in the case of any Tax based upon or related to income, gains or receipts be deemed equal to the amount which would be payable if the relevant Straddle Period ended on the
Closing Date. 
 (b) Preparation of Tax Returns. Parent shall prepare or cause to be prepared and timely file or cause to be timely
filed all Tax Returns for the Company for the Pre-Closing Tax Period and Straddle Period that are required to be filed after the Closing Date. All Tax Returns filed by Parent after the Closing Date will be
prepared in a manner consistent with the past practice and custom of the Company to the extent consistent with Applicable Law. At least thirty (30) days prior to the date that each such Tax Return is due, Parent shall submit such Tax Return to
the Shareholder Representative for its review and consent (which consent shall not be unreasonably withheld). When preparing such Tax Returns, Parent agrees that all Tax deductions and other benefits relating to the Transaction Expenses shall be
allocated to the Pre-Closing Period to the extent permitted by Applicable Law. 
 (c) Tax
Contests. After the Closing Date, Parent, the Company and the Shareholder Representative, respectively, shall inform the other party in writing of the commencement of any claim, audit, investigation, examination, or other proceeding or
self-assessment relating in whole or in part to Taxes for a Pre-Closing Tax Period (“Tax Contest”) for which Parent may be entitled to indemnity under this Agreement. After the Closing Date,
Parent shall have the exclusive right to represent the interests of the Company in any and all Tax Contests; provided, however, that the Shareholder Representative shall have the right to participate in any such Tax Contest and to
employ counsel at its own expense of its choice (which counsel shall be reasonably acceptable to Parent) for purposes of such participation to the extent that any such Tax Contest could reasonably be expected to result in a Tax liability subject to
indemnification pursuant to this Agreement; and provided further that, to the extent such Tax Contest relates to a Pre-Closing Tax Period, Parent shall promptly provide the

  
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Shareholder Representative with any material correspondence with the applicable Tax Authority related thereto. In the event that Parent proposes to compromise or settle any Tax Contest, or
consent or agree to any Tax liability, relating to the Company that would result in an indemnity payment, the Shareholder Representative shall have the right to review such proposed compromise, settlement, consent or agreement. Parent shall not
agree or consent to compromise or settle any Tax Contest for a Pre-Closing Tax Period or liability for indemnification unless the Shareholder Representative consents to such settlement, compromise or
concession, which consent will not be unreasonably withheld, conditioned or delayed. 
 (d) Cooperation. Parent and the Shareholder
Representative shall cooperate fully as and to the extent reasonably requested by the other party in connection with the preparation and filing of any Return required of the Company and the defense of any Tax Contest, claim, audit, litigation or
other proceeding, with respect to Taxes which may be payable by the Company for a Pre-Closing Tax Period. Parent, the Company and the Shareholder Representative agree to abide by all record retention
requirements of, or record retention agreements entered into with, any Tax authority. 
 (e) Certain Taxes and Fees. All transfer,
documentary, sales, use, stamp, registration, value added and other such Taxes, and all conveyance fees, recording charges and other fees and charges (including any penalties and interest) incurred in connection with the consummation of the
transactions contemplated by this Agreement shall be borne and paid fifty percent (50%) by the Company Shareholders and fifty percent (50%) by Parent when due. The party responsible under Applicable Law for submitting payment of such Taxes to the
applicable Tax authority shall file all necessary Returns and other documentation with respect to all such transfer, documentary, sales, use, stamp, registration and other Taxes and fees. If required by Applicable Law, Parent or the Company shall
join in the execution of any such Returns and other documentation. 
 (f) Post-Closing Actions. Unless otherwise required by
Applicable Law, Parent shall not, and shall not permit any of its Affiliates (including after the Closing, for the avoidance of doubt, the Surviving Corporation) to, except as otherwise permitted under this Section 6.12,
file, re-file, supplement, or amend any Tax Return of the Company for any Pre-Closing Tax Period to the extent such filing would result in a liability for
indemnification of the Company Shareholders under this Agreement or an increased personal Tax liability of the Company Shareholders. 
 (g)
Tax Agreements. Except for agreements entered into the ordinary course, the principal purpose of which is not Taxes, all Tax-sharing agreements or similar contracts with respect to or involving the
Company and any other person shall be terminated as of the Closing Date and, after the Closing Date, the Company shall not be bound thereby or have any liability thereunder. 

6.13 Release of Claims. 

(a) By execution and delivery of the Letter of Transmittal and effective for all purposes as of the Closing, each Company Shareholder
acknowledges and agrees, on behalf of itself (or, as applicable, himself or herself) and each of its (or, as applicable, his or her) current or former Affiliates, officers, directors, employees, managers, partners, principals, advisors, agents,
servants, shareholders, members, investors, equity holders or other representatives, including attorneys, accountants, consultants, bankers and financial advisors, heirs, beneficiaries, estates, executors, administrators, trustees, successors or
assigns (such Company Shareholder’s “Releasing Affiliates”) that none of such Company Shareholder or its Releasing Affiliates as of immediately prior to the Closing (i) has any Claims, or (ii) has transferred or
assigned, or purported to transfer or assign, any Claims, in each case, relating to the Company against the Company or Parent, or their respective current or former affiliates, officers, directors, employees, managers, partners, principals,
advisors, agents, servants, 

  
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shareholders, members, investors, equity holders or other representatives (including attorneys, accountants, consultants, bankers and financial advisors), successors or assigns (collectively, the
“Released Parties”); provided that, other than in the case of Fraud, the foregoing acknowledgment and agreement shall not affect (A) the rights of such Company Shareholder or any of its Releasing Affiliates under this Agreement
or any Transaction Document, (B) if such Person is a current or former employee, rights to earned but unpaid cash compensation due to such Person that remain unpaid as of the Closing Date, unreimbursed business expenses incurred in the ordinary
course and reimbursable pursuant to the Company’s business expense policy, rights to any benefits under employee health and welfare plans to the extent consistent with terms of applicable governing plan documents and the entitlement to
continuing coverage benefits or any other similar benefits required to be provided by Applicable Law, or (C) any rights to indemnification, advancement of expenses, exculpation or rights to benefit pursuant to the Company’s Organizational
Documents, any directors’ and officers’ liability insurance policy maintained by the Company, or any indemnification agreement between such Person and the Company or pursuant to which such Person is a third party beneficiary that are made
available to Parent. 
 (b) By execution and delivery of the Letter of Transmittal and effective for all purposes as of the Closing, each
Company Shareholder, on behalf of itself (or, as applicable, himself or herself) and each of its (or, as applicable, his or her) Releasing Affiliates irrevocably and unconditionally releases and forever discharges the Released Parties from any and
all claims, demands, allegations, assertions, complaints, controversies, charges, duties, grievances, rights, causes of action, suits, liabilities, debts, obligations, promises, commitments, agreements, guarantees, endorsements, duties, damages,
costs, losses, debts and expenses (including attorneys’ fees and costs incurred) of any nature whatsoever (whether direct or indirect, known or unknown, disclosed or undisclosed, matured or unmatured, accrued or unaccrued, asserted or
unasserted, absolute or contingent, determined or conditional, express or implied, fixed or variable and whether vicarious, derivative, joint, several or secondary) relating to the Company existing as of immediately prior to the Closing
(collectively, “Claims”); provided, however, that the foregoing release shall not cover (A) the rights of such Company Shareholder or any of such Company Shareholder’s Releasing Affiliates under this
Agreement or any Transaction Document, (B) if such Person is a current or former employee, rights to earned but unpaid cash compensation due to such Person that remain unpaid as of the Closing Date, unreimbursed business expenses incurred in
the ordinary course and reimbursable pursuant to the Company’s business expense policy, rights to any benefits under employee health and welfare plans to the extent consistent with terms of applicable governing plan documents and the
entitlement to continuing coverage benefits or any other similar benefits required to be provided by Applicable Law, or (C) any rights to indemnification, advancement of expenses, exculpation or rights to benefit pursuant to the Company’s
Organizational Documents, any directors’ and officers’ liability insurance policy maintained by the Company, or any indemnification agreement between such Person and the Company or pursuant to which such Person is a third party beneficiary
that are made available to Parent. 
 (c) By execution and delivery of the Letter of Transmittal, each Company Shareholder, on behalf of
itself and each of its (or, as applicable, his or her) Releasing Affiliates acknowledges that it, he or she may hereafter discover facts in addition to or different from those that such Company Shareholder or Releasing Affiliate now knows or
believes to be true with respect to the subject matter of this release, but it is such Company Shareholder’s and Releasing Affiliate’s intention to fully and finally and forever settle and release any and all Claims (other than as set
forth in the proviso included in subsection (a) above) that do now exist, may exist or heretofore have existed with respect to the subject matter of this release. In furtherance of this intention, the releases contained herein shall be and
remain in effect as full and complete releases notwithstanding the discovery or existence of any such additional or different facts. 

  
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 6.14 Indemnification of Directors and Officers. 

(a) For the period of six (6) years following the Effective Time, Surviving Corporation shall, and Parent shall cause the Surviving
Corporation to, honor the indemnification rights of each person who is now, or has been at any time prior to the Agreement Date or who becomes prior to the Effective Time, an officer or director of the Company (the “Company Indemnified
Parties”) to the extent required by the Certificate of Incorporation of the Company, Bylaws of the Company, by any contractual right under a contract listed in Schedule 6.14(a), or by law, for any actual or alleged acts, errors,
omissions, or claims by reason of their status, in all cases prior to the Effective Time (the “Company Indemnified Liabilities”). 

(b) For a period of six (6) years following the Effective Time, the Organizational Documents of the Surviving Corporation shall not be
amended, repealed or otherwise modified in any manner that would adversely affect the rights of Company Indemnified Parties with regard to Company Indemnified Liabilities. 

(c) The Company shall purchase prior to the Effective Time, and Surviving Corporation shall maintain, and Parent shall cause the Surviving
Corporation to maintain, a six year insurance “tail” with respect to the Company’s current directors’ and officers’ liability insurance for acts or omissions existing or occurring at or prior to the Effective Time (the
“D&O Tail Policy”). 
 (d) This Section 6.14(d) is intended to be for the benefit of, and
shall be enforceable by the Company Indemnified Parties and their heirs and personal representatives and shall be binding on Parent and the Surviving Corporation and its successors and assigns. 

(e) Notwithstanding anything in this Section 6.14(e), the Organizational Documents of the Surviving Corporation, the
Certificate of Incorporation of the Company, the Bylaws of the Company, any contractual right, or rights available by law, the Surviving Corporation shall have no duty to indemnify or advance to any Company Indemnified Party who is a Company
Shareholder to the extent such matter arises out of or results from a breach of a Company representation or warranty contained in this Agreement or any certificate delivered hereunder for which a Parent Indemnified Person is seeking indemnification
pursuant to Section 9.1 of this Agreement. . 
 6.15 Trade Name Filing. As soon as reasonably practicable
following the Agreement Date, the Company shall file a trade name application with the Maryland State Department of Assessment & Taxation for the trade name “PSC by Rocket Lab”. 

6.16 Securities Laws Matters. Parent agrees that it will take all actions required to ensure that the Parent Shares are registered and
freely transferable, subject to the terms of the Lock-up Agreement, prior to the six-month anniversary of the Agreement Date, including the filing of a registration
statement with the SEC on Form S-1, Form S-3, or such other comparable form as may be appropriate and available for the purpose of registering the Parent Shares. 

7. Conditions to the Closing. 

7.1 Conditions to Obligations of Each Party to Effect the Closing. The respective obligations of each party to this Agreement to
consummate and effect this Agreement and the transactions contemplated hereby shall be subject to the satisfaction at or prior to the Closing of each of the following conditions, any of which may be waived, in writing, by agreement of all the
parties hereto: 
 (a) No Injunctions or Restraints; Illegality. No Order or other legal or regulatory restraint or prohibition
preventing the consummation of the Merger shall be and remain in effect, nor shall any Action brought by a Governmental Entity seeking any of the foregoing be pending, nor shall there be any action taken, or any statute, rule, regulation or order
enacted, entered, enforced or deemed applicable to the Merger, which makes the consummation of the Merger illegal. 

  
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 7.2 Additional Conditions to the Obligations of Parent. The obligations of
Parent to consummate and effect this Agreement and the transactions contemplated hereby shall be subject to the satisfaction at or prior to the Closing of each of the following conditions, any of which may be waived, in writing, by Parent: 

(a) Representations, Warranties and Covenants. The representations and warranties of the Company in this Agreement shall be true and
correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality or “Company Material Adverse Effect,” which representations and warranties as so
qualified shall be true and correct in all respects) on and as of the Agreement Date and on and as of the Closing Date as though such representations and warranties were made on and as of such time (except for such representations and warranties
that speak specifically as of the Agreement Date or as of another date, which shall be true and correct as of such date). 
 (b)
Performance of Obligations. The Company shall have performed and complied in all material respects with all covenants, agreements, obligations and conditions of this Agreement required to be performed and complied with by it as of the
Closing. 
 (c) Shareholder Approval and Dissenting Shares. Company Shareholders holding at least seventy-five percent (75%) of the
outstanding shares of Company Common Stock, shall have approved this Agreement and the Transactions and Company Shareholders holding not more than twenty-five percent (25%) of the outstanding shares of Company Common Stock shall have exercised, and
remain entitled to exercise, statutory appraisal rights pursuant to the DC Code with respect to such Company Common Stock. 
 (d) R&W
Insurance Policy. The R&W Insurance Policy, which shall have been bound concurrently with the execution of this Agreement, shall remain in full force and effect, and the Insurer shall not have made any material amendments or modifications,
subject to the conditions stated therein. 
 (e) Certificate of Officers. Parent shall have received a certificate executed on behalf
of the Company by the Company’s President certifying that the conditions set forth in Sections 7.2(a), 7.2(b) and 7.2(k) have been satisfied. 

(f) Secretary’s Certificate. Parent shall have received from the Company’s Secretary, a certificate having
attached thereto (i) the articles of incorporation of the Company as in effect immediately prior to the Closing, (ii) the bylaws of the Company as in effect immediately prior to the Closing, (iii) resolutions approved by the
Company’s Board of Directors authorizing the transactions contemplated hereby, and (iv) certificates of good standing (including tax good standing) issued by the District of Columbia Department of Consumer and Regulatory Affairs and for
each other state where the Company is qualified to do business, in each case dated as of a date no more than five (5) Business Days prior to the Closing Date. 

(g) Third Party Consents. All consents and approvals referenced on Schedule 7.2(g) shall have been obtained
and be in full force and effect, and a copy of each such consent or approval shall have been provided to Parent at or prior to the Closing. 

  
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 (h) No Governmental Litigation. There shall not be pending or threatened any Action
in which a Governmental Entity is or is threatened to become a party or is otherwise involved, and neither Parent nor the Company shall have received any communication from any Governmental Entity in which such Governmental Entity indicates the
probability of commencing any Action or taking any other action: (i) challenging or seeking to restrain or prohibit the consummation of the Merger; (ii) relating to the Merger and seeking to obtain from Parent or any of its Affiliates, or
from the Company, any damages or other relief that would be material to Parent; (iii) seeking to prohibit or limit in any material respect Parent’s ability to vote, receive dividends with respect to or otherwise exercise ownership rights
with respect to the stock of Company; or (iv) that would materially and adversely affect the right of Parent, its Affiliate or the Company to own the assets of the Company, or operate the Company Business. 

(i) No Other Litigation. There shall not be pending any Action: (i) challenging or seeking to restrain or prohibit the
consummation of the Merger or any of the other transactions contemplated by this Agreement; (ii) relating to the Merger and seeking to obtain from Parent, or from the Company, any damages or other relief that would be material to Parent;
(iii) seeking to prohibit or limit in any material respect Parent’s ability to vote, receive dividends with respect to or otherwise exercise ownership rights with respect to the stock of the Company; or (iv) that would materially and
adversely affect the right of Parent, its Affiliate or the Company to own the assets of the Company, or operate the Company Business. 
 (j)
Governmental Approval. Parent and the Company shall have timely obtained from each Governmental Entity all approvals, waivers and consents, necessary for consummation of or in connection with the Merger and the several transactions
contemplated hereby. 
 (k) No Material Adverse Change. There shall not have occurred any change in the financial condition,
properties, assets (including intangible assets), liabilities, business, operations, results of operations of Company or the Company Business that, individually or in the aggregate, would reasonably be expected to have a Company Material Adverse
Effect. 
 (l) Termination of 401(k) Plan. Unless otherwise requested by Parent in writing no less than three Business Days prior to
the Closing Date, the Company shall have delivered (A) a true, correct and complete copy of resolutions adopted by the Company’s Board of Directors, certified by the Secretary of the Company, authorizing the termination of the Company’s
401(k) Plan (the “401(k) Plan”), and (B) an amendment to the 401(k) Plan, executed by the Company, that is sufficient to assure compliance with all applicable requirements of the Code and regulations thereunder so that the Tax-qualified status of the 401(k) Plan shall be maintained at the time of its termination, with such amendment and termination to be effective on the date immediately preceding the Closing. 

(m) Estimated Closing Certificate. The Company shall have delivered to Parent the Estimated Closing Certificate contemplated by
Section 2.8(a). 
 (n) FIRPTA Documents. The Company shall have delivered to Parent (i) a statement
(in such form as may be reasonably requested by counsel to Parent) conforming to the requirements of Section 1.897—2(h)(1)(i) of the United States Treasury Regulations, and (ii) the notification to the Internal Revenue Service
required under Section 1.897—2(h)(2) of the United States Treasury Regulations. 
 (o) Resignation Letters. The Company
shall have delivered to Parent written resignations of all directors of the Company effective as of the Closing. 

  
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 (p) Release and Termination of Security Interests. The Company’s assets shall
have been released from all security interests thereon, and the Company shall have taken all steps necessary to terminate all UCC financing statements which have been filed with respect to such security interests. 

(q) Key Employees. The Key Employees shall have remained continuously employed with the Company from the Agreement Date through the
Closing, and no action shall have been taken by any Key Employee to rescind any Key Employee Agreement or Restrictive Covenants Agreement. 

(r) Stock Holdback Agreements. Parent shall have received duly executed Stock Holdback Agreements, as applicable, from each Key
Employee. 
 (s) Estoppel Certificate. The Company shall have delivered to Parent an estoppel certificate from L.R.S. Group, LLC with
respect to the Company’s Current Facilities, in a form and substance reasonably satisfactory to Parent. 
 (t) D&O Tail
Policy. Parent shall have received evidence in form and substance reasonably satisfactory to Parent that the Company has obtained the D&O Tail Policy, which shall be in full force and effect as of the Closing Date. 

(u) Additional Deliveries. Parent shall have received such customary documents from the Company as Parent may reasonably request in
good faith for the purpose of facilitating the consummation of Transactions. 
 7.3 Additional Conditions to Obligations of Company.
The obligations of Company to consummate and effect this Agreement and the transactions contemplated hereby shall be subject to the satisfaction at or prior to the Closing of each of the following conditions, any of which may be waived, in writing,
by the Company: 
 (a) Representations, Warranties and Covenants. The representations and warranties of Parent in this Agreement
shall be true and correct in all material respects without regard to any qualification as to materiality contained in such representation or warranty on and as of the Agreement Date and on and as of the Closing Date as though such representations
and warranties were made on and as of such time (except for such representations and warranties that speak specifically as of the Agreement Date or as of another date, which shall be true and correct as of such date). 

(b) Performance of Obligations. Parent shall have performed and complied in all material respects with all covenants, obligations and
conditions of this Agreement required to be performed and complied with by them as of the Closing. 
 (c) Certificate of Officers.
The Company shall have received a certificate executed on behalf of Parent by an executive officer of Parent certifying that the conditions set forth in Sections 7.3(a) and 7.3(b) have been satisfied. 

(d) R&W Insurance Policy. The R&W Insurance Policy, which shall have been bound concurrently with the execution of this
Agreement, shall remain in full force and effect, and the Insurer shall not have made any material amendments or modifications thereto, subject to the conditions stated therein. 

  
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 8. Termination, Amendment and Waiver. 

8.1 Termination. This Agreement may be terminated at any time prior to the Closing (with respect to
Section 8.1(b) through Section 8.1(d), by written notice by the terminating party to the other party): 

(a) by the mutual written consent of Parent and the Company; 

(b) by either Parent or the Company if the Merger shall not have been consummated before 4:59 PM, Pacific time on December 31, 2021;
provided, however, that the right to terminate this Agreement under this Section 8.1(b) shall not be available to any party whose failure to fulfill any obligation under this Agreement has been the cause of or
resulted in the failure of the Merger to occur on or before such date. 
 (c) by either Parent or the Company if a court of competent
jurisdiction or other Governmental Entity shall have issued a nonappealable final order, decree or ruling or taken any other action, in each case having the effect of permanently restraining, enjoining or otherwise prohibiting the Merger, unless the
party relying on such order, decree or ruling or other action has not complied in all material respects with its obligations under this Agreement; 

(d) by Parent or the Company, if there has been a breach of any representation, warranty, covenant or agreement on the part of the other party
set forth in this Agreement, which breach (i) causes the conditions set forth in Section 7.1 or 7.2 (in the case of termination by Parent) or Section 7.1 or 7.3 (in the case of
termination by the Company) not to be satisfied and (ii) shall not have been cured within ten (10) Business Days following receipt by the breaching party of written notice of such breach from the other party; or 

(e) by Parent, if there shall have occurred any change in the financial condition, properties, assets (including intangible assets),
liabilities, business, operations, or results of operations of Company, that, individually or in the aggregate, has had or is reasonably likely to have a Company Material Adverse Effect. 

8.2 Effect of Termination. In the event of termination of this Agreement as provided in Section 8.1, there
shall be no liability or obligation on the part of Parent, or the Company or their respective officers, directors, or shareholders, except to the extent that such termination results from the willful breach by a party of any of its representations,
warranties or covenants set forth in this Agreement; provided, however, that the provisions of Sections 6.2, 6.3, 6.6, 8.2 and 10 shall remain in full force and effect and survive
any termination of this Agreement. 
 8.3 Amendment. Prior to the Closing, the parties hereto may amend this Agreement pursuant to an
instrument in writing signed on behalf of Parent and the Company. From and after the Closing, Parent and the Shareholder Representative may cause this Agreement to be amended only by execution of an instrument in writing signed on behalf of Parent
and the Shareholder Representative. 
 8.4 Extension; Waiver. At any time prior to the Closing, the parties hereto, by action taken or
duly authorized by all requisite corporate action, may, to the extent legally allowed: (a) extend the time for the performance of any of the obligations or other acts of the other parties hereto; (b) waive any inaccuracies in the
representations and warranties contained herein or in any document delivered pursuant hereto; and (c) waive compliance with any of the agreements or conditions contained herein. Any agreement on the part of a party hereto to any such extension
or waiver shall be valid only if set forth in a written instrument signed on behalf of such party. 

  
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 9. Indemnification. 

9.1 Indemnification by the Company Shareholders. 

(a) Indemnification by the Company Shareholders. Subject to the limitations set forth in this Section 9, the
Company Shareholders shall, based solely on each Company Shareholder’s Pro Rata Portion of the Indemnity Holdback Amount, indemnify and hold harmless Parent and its Affiliates (including the Company) and their respective officers, directors,
agents (individually a “Parent Indemnified Person” and collectively the “Parent Indemnified Persons”) from and against any and all losses, costs, damages, liabilities, and expenses of any kind or nature, including
without limitation costs and expenses arising from claims, demands, actions, causes of action and settlements, including reasonable fees and expenses of lawyers, experts and other professionals (collectively, “Damages”), resulting
from or arising out of: 
 (i) any failure of any of the representations and warranties given or made by the Company in this Agreement or
any certificate furnished pursuant thereto to be true and correct as of the Agreement Date and as of the Closing Date (as though such representation or warranty were made as of the Closing Date), except in the case of representations and warranties
which by their terms speak only as of a specific date or dates, in which case such representations and warranties shall have been true and correct on and as of such specified date or dates; 

(ii) any breach of any covenant or agreement made by the Company in this Agreement; 

(iii) all Pre-Closing Taxes not included in Working Capital and any “excess parachute
payment” (within the meaning of Section 280G(b) of the Code, if applicable) made by the Company on or prior to the Closing Date or otherwise required to be paid by the Company, the Surviving Corporation pursuant to any Contract, Employment
Agreement, Change of Control, or Company Employee Plan entered into or adopted by the Company on or prior to the Agreement Date; 
 (iv) any
inaccuracies in the Payment Schedule; 
 (v) any Transaction Expenses or Indebtedness of the Company not reflected in the final Closing
Certificate; 
 (vi) the exercise by holders of Dissenting Shares of any appraisal or dissenters’ rights under the DC Code or other
applicable Law and any amounts paid to the holders of Dissenting Shares resulting therefrom, including any interest required to be paid thereon, that are in excess of what such holders would have received hereunder as Company Shareholders had such
holders not been holders of Dissenting Shares, and any costs or expenses (including attorneys’ fees, costs and expenses in connection with any action or proceeding or in connection with any investigation) in respect of any Dissenting Shares;

 (vii) any Claims by any former holder (or purported holder) of any equity interests of the Company (including any predecessors), arising
out of, resulting from or in connection with the allocation of the Merger Consideration or any portion thereof that differs from that specified on the Payment Schedule; 

(viii) any matter set forth in Section 3.8 of the Disclosure Schedule or that is or would be a breach of any of the
representations and warranties made in Section 3.8; 

  
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 (ix) defending any third party claim alleging the occurrence of facts or circumstances
that, if true, would entitle an Parent Indemnified Person to indemnification hereunder; and 
 (x) the matters set forth on Schedule
9.1(a)(x). 
 Notwithstanding anything in this Agreement to the contrary, for purposes of (x) determining whether there has been a breach of any of
the representations and warranties given or made by the Company in this Agreement or any certificate or document hereto and (y) the determination of the amount of Damages resulting from or arising out of such breach, all qualifications or
exceptions in any warranty relating to or referring to the terms “material”, “materiality”, “in all material respects”, “Material Adverse Effect” or any similar term or phrase shall be disregarded (other than
the defined term “Material Contract”), it being the understanding of the parties hereto that for purposes of determining liability under this Section 9, such warranties shall be read as if such terms and
phrases were not included therein. 
 (b) Survival of Representations and Warranties. All representations and warranties made by the
parties herein or any certificate delivered pursuant to this Agreement shall survive the execution and delivery of this Agreement and the Closing until the Indemnity Holdback Termination Date; provided, however, that for purposes of
the R&W Insurance Policy, the representations set forth in Section 3.19 (Taxes) (the “Tax Representations”) shall survive until the expiration of the applicable statute of limitations and the
representations set forth in Sections 3.1 (Organization, Good Standing and Power; Subsidiaries), 3.2 (Authority), 3.5 (Capitalization), 3.17(a) (Title to Property), 3.31 (Brokers’ and Finders’ Fees) (the
“Company Fundamental Representations”) shall survive until the six year anniversary of the Closing Date. There shall be no termination of any representation or warranty as to which a claim has been asserted by a Parent Indemnified
Person prior to the termination of such survival period. All covenants and agreements survive indefinitely unless otherwise specified in their terms. The date of expiration of a claim for indemnification under this Agreement is referred to as such
claim’s “Expiration Date.” 
 (c) Threshold for Claims. No claim for Damages shall be made under
Section 9.1(a)(i) unless the aggregate of Damages for which claims are made hereunder by the Parent Indemnified Persons exceeds $50,000 (the “Threshold”), in which case the Parent Indemnified Persons shall
be entitled to seek compensation for all Damages from the first dollar; provided, however, that the Threshold shall not apply with respect to (i) any Damages arising from, or directly or indirectly related to, any claims for
indemnification with respect to the Tax Representations, the Company Fundamental Representations, Fraud or intentional or knowing misrepresentation or breach, or (ii) for the avoidance of doubt, any matter described under
Section 9.1(a)(ii) – (x). 
 (d) Cap on Indemnification. 

(i) The aggregate amount to be paid by the Company Shareholders for claims for Damages made under Section 9.1(a)(i)
shall not exceed the Retention Cap; provided, however, that the Retention Cap shall not apply with respect to (i) any Damages arising from, or directly or indirectly related to, any claims for indemnification with respect to the
Tax Representations, the Company Fundamental Representations, Fraud or intentional or knowing misrepresentation or breach, or (ii) for the avoidance of doubt, any matter described under Section 9.1(a)(ii) –
(x). 
 (ii) The aggregate amount to be paid by the Company Shareholders for claims for Damages made under
Section 9.1(a) shall not exceed an amount equal to the Indemnity Holdback Amount (the “Cap”); provided, however, that the Cap shall not apply to any Damages arising from, or directly or
indirectly related to, any claims for indemnification involving Fraud or intentional or knowing misrepresentation or breach by a Company Shareholder. 

  
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 (iii) In no event shall any Company Shareholder be responsible for Damages under
Section 9.1(a) in excess of such Company Shareholder’s Pro Rata Portion of the Indemnity Holdback Amount, except for (A) Damages arising out of such Company Shareholder’s Fraud or intentional or knowing
misrepresentation or breach, or actual knowledge of another’s Fraud, or (B) a breach of a covenant or agreement by such Company Shareholder. 

(e) Satisfaction of Claims. Subject to the other limitations in this Section 9, any Damages incurred by a
Parent Indemnified Person that are determined to be subject to indemnification by the Company Shareholders pursuant to Section 9.1(a) (other than claims for indemnification involving Fraud or intentional or knowing
misrepresentation or breach), shall be satisfied solely by the funds available in the Indemnity Holdback Amount and the R&W Insurance Policy. 

(f) Disclosures. The disclosures set forth in the Disclosure Schedules shall affect only the representations and warranties to which
they relate and the indemnification provisions set forth in Section 9.1(a); they shall not have any effect on or in any other way limit the indemnification provisions set forth in
Section 9.1(a)(ii) – (x) which shall have independent effect regardless of any disclosure in the Disclosure Schedules or otherwise. 

(g) R&W Insurance Policy. For the avoidance of doubt, (i) nothing herein (including with respect to the Threshold or Cap) is
intended to, nor shall it have the effect of, limiting or diminishing the Parent Indemnified Persons’ right to seek or obtain recovery under the R&W Insurance Policy, and (ii) as between Parent, on the one hand, and the Insurer, on the
other hand, none of the limitations and restrictions (including time for asserting claims) on indemnification set forth in this Section 9 shall affect the rights of Parent under the R&W Insurance Policy, which rights
shall be governed solely thereby. 
 9.2 Indemnification by Parent. 

(a) Indemnification by Parent. Subject to the limitations set forth in this Section 9, Parent shall indemnify
and hold harmless the Company Shareholders from and against any and all Damages resulting from or arising out of: 
 (i) any failure of any
of the representations and warranties given or made by the Parent or Merger Sub in this Agreement to be true and correct as of the Agreement Date and as of the Closing Date (as though such representation or warranty were made as of the Closing
Date), except in the case of representations and warranties which by their terms speak only as of a specific date or dates, in which case such representations and warranties shall have been true and correct on and as of such specified date or dates;
and 
 (ii) any breach of any covenant or agreement made by the Parent or Merger Sub in this Agreement. 

9.3 Indemnification Claims. 

(a) With respect to indemnification claims of the Parent Indemnified Persons to recover Damages under Section 9.1,
Parent (on behalf of a Parent Indemnified Person) must deliver to the Shareholder Representative (on behalf of the Company Shareholder s) on or before the applicable Expiration Date a written notice (a “Claim Notice”) stating that
Damages exist with respect to the indemnification obligations of the Company Shareholders set forth in Section 9.1, and specifying in reasonable detail (to the extent known) the individual items of such Damages included in
the amount so stated, and the nature of the misrepresentation, breach of warranty, covenant or claim to which such item is related. 

  
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 (b) The Shareholder Representative shall have a period of thirty (30) days from and
after delivery of any Claim Notice to deliver to the Parent a response, in which the Shareholder Representative shall: (i) agree that the applicable Parent Indemnified Person is entitled to receive all of the requested Damages or
(ii) dispute that such Parent Indemnified Person is entitled to receive the requested Damages. 
 (c) If the Shareholder Representative
does not deliver a response before the expiration of the thirty (30) day period referred to in Section 9.3(b) disputing any claim or claims made in the Claim Notice, the applicable Parent Indemnified Person shall,
subject to the provisions of this Section 9, be entitled to recover such Damages and, if any of the Indemnity Holdback Amount remains, reduce the Indemnity Holdback Amount by an amount equal to such Damages and such amount
shall no longer be payable to the Company Shareholders out of the Indemnity Holdback Amount. 
 (d) If the Shareholder Representative
disputes any claim or claims made in any Claim Notice, the Parent shall have thirty (30) days to respond in a written statement to the objection of the Shareholder Representative. If after such thirty (30) day period there remains a
dispute as to any claims, the Shareholder Representative and Parent shall attempt in good faith for thirty (30) days to agree upon the rights of the respective parties with respect to each of such claims (the “Claims Period”).
If the Shareholder Representative and Parent should so agree, a memorandum setting forth such agreement shall be prepared and signed by Parent and the Shareholder Representative. Parent shall be entitled to rely on any such memorandum for the
reduction of the Indemnity Holdback Amount. 
 (e) With respect to indemnification claims of the Company Shareholders to recover Damages
under set forth in Section 9.2, the Shareholder Representative (on behalf of the Company Shareholders) must deliver to the Parent on or before the applicable Expiration Date a Claim Notice stating that Damages exist with
respect to the indemnification obligations of the Parent set forth in Section 9.2, and specifying in reasonable detail (to the extent known) the individual items of such Damages included in the amount so stated, and the
nature of the misrepresentation, breach of warranty, covenant or claim to which such item is related. The provisions of Sections 9.3(b) - (d) shall also apply to the handling of such claims, the parties being reversed. 

9.4 Resolution of Conflicts. If no agreement can be reached after good faith negotiation between the parties pursuant to
Section 9.3(d), either Parent or the Shareholder Representative may initiate formal legal action with the applicable court in accordance with Section 10.6(b) to resolve such dispute. The decision
of the court as to the validity and amount of any claim shall be binding and conclusive upon the parties to this Agreement, and notwithstanding anything in Section 9 hereof, the parties shall be entitled to act in
accordance with such decision. 
 9.5 Shareholder Representative. 

(a) The Shareholder Representative shall be constituted and appointed as agent and attorney-in-fact for and on behalf of the Company Shareholders and shall have full power authority to represent, to give and receive notices and communications, to authorize Parent to reduce the Indemnity
Holdback Amount in satisfaction of claims by Parent as provided hereunder, to object to such deliveries, to agree to, negotiate, enter into settlements and compromises of, and demand arbitration and comply with orders of courts and awards of
arbitrators with respect to such claims, to act on the Company 

  
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Shareholders’ behalf with respect to the matters set forth herein, in accordance with the terms and provisions set forth herein, including giving and receiving all notices and communications
to be given or received with respect to the matters set forth in Section 2.14 and Section 9 and to take all actions necessary or appropriate in the judgment of the Shareholder Representative for
the interpretation of this Agreement and accomplishment of the foregoing. Such agency may be changed by the holders of a majority in interest of the Company Common Stock immediately prior to the Effective Time from time to time upon not less than
ten (10) days’ prior written notice to Parent. No bond shall be required of the Shareholder Representative. Notices or communications to or from the Shareholder Representative shall constitute notice to or from each of the Company
Shareholders. 
 (b) The Shareholder Representative shall not be liable for any act done or omitted hereunder as Shareholder Representative
while acting in good faith and any act done or omitted pursuant to the advice of counsel shall be conclusive evidence of such good faith. The Company Shareholders shall severally indemnify and hold the Shareholder Representative harmless against any
loss, liability or expense incurred without gross negligence or bad faith on the part of the Shareholder Representative and arising out of or in connection with the acceptance or administration of his duties hereunder. 

(c) The Shareholder Representative shall have reasonable access to information about Company and the reasonable assistance of Company’s
officers and employees for purposes of performing its duties and exercising its rights hereunder, provided that the Shareholder Representative shall treat confidentially and not disclose any nonpublic information from or about Company to anyone
(except on a need to know basis to individuals who agree to treat such information confidentially). 
 (d) Parent acknowledges that the
Shareholder Representative may have a conflict of interest with respect to his duties as Shareholder Representative, and in such regard the Shareholder Representative has informed Parent that he will act in the best interests of the Company
Shareholders. 
 (e) A decision, act, consent or instruction of the Shareholder Representative shall constitute a decision of all Company
Shareholders for whom the Merger Consideration otherwise payable to them with respect to the matters set forth herein shall be final, binding and conclusive upon each Company Shareholder, and Parent may rely upon any decision, act, consent or
instruction of the Shareholder Representative as being the decision, act, consent or instruction of each and every Company Shareholder. Parent is hereby relieved from any liability to any Person for any acts done by Parent in accordance with such
decision, act, consent or instruction of the Shareholder Representative. 
 9.6 Third-Party Claims. In the event a Parent Indemnified
Person becomes aware of a third-party claim which such Parent Indemnified Person believes may result in an indemnification claim under Section 9, the Parent shall notify the Shareholder Representative of such claim. Parent
shall have the right in its sole discretion to defend or settle any such claim. In the event that the Shareholder Representative has consented to any such settlement, the Shareholder Representative shall have no power or authority to object under
Section 9.3 or any other provision of this Section 9 to the amount of any claim by Parent against the Indemnity Holdback Amount for indemnity with respect to such settlement. 

9.7 Tax Effect of Indemnification Payments. All amounts received by Parent from the Indemnity Holdback Amount pursuant to this Agreement
shall be treated for all Tax purposes as adjustments to the aggregate consideration payable to the Company Shareholders to the extent permitted under Applicable Law. 

  
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 9.8 Effect of Investigation. The right of a party to indemnification, payment of
Damages or for other remedies based on any representation, warranty, covenant or obligation of the other party contained in or made pursuant to this Agreement shall not be affected by any investigation conducted with respect to, or any knowledge
acquired (or capable of being acquired) at any time, whether before or after the execution and delivery of this Agreement or the date the Closing occurs, with respect to the accuracy or inaccuracy of or compliance with, any such representation,
warranty, covenant or obligation. The waiver of any condition to the obligation of Parent or the Company to consummate the Merger, where such condition is based on the accuracy of any representation or warranty, or on the performance of or
compliance with any covenant or obligation, shall not affect the right to indemnification, payment of Damages, or other remedy based on such representation, warranty, covenant or obligation. 

9.9 Exclusive Remedy. The provisions contained in this Section 9 are intended to provide the sole and
exclusive remedy for the parties following the Closing as to all money damages based on or arising out of the representations, warranties and covenants of the parties hereunder (it being understood that nothing in this
Section 9 or elsewhere in this Agreement shall affect the parties right to seek specific performance or other equitable remedies to enforce their rights under this Agreement or any other instrument executed in connection
herewith). 
 9.10 Additional Limitation. Notwithstanding anything to the contrary in this Agreement, no Company Shareholder may make
any claim for indemnification by reason of the fact that such Company Shareholder was a controlling person, director, officer, member, manager, employee or representative of the Company or was serving as such for another Person at the request of the
Company (whether such claim is for Damages of any kind or otherwise and whether such claim is pursuant to the Company’s Organizational Documents or any Applicable Law, order, Contract or otherwise) with respect to any claim for indemnification
brought by a Parent Indemnified Person against the Company Shareholders under this Agreement or otherwise relating to this Agreement or any of the transactions contemplated hereby, or that is based upon any facts or circumstances that form the basis
for a claim for indemnification by an Parent Indemnified Person. 
 10. General Provisions. 

10.1 Notices. All notices and other communications hereunder shall be in writing and shall be deemed duly delivered: (i) upon
receipt if delivered personally; (ii) three (3) Business Days after being mailed by registered or certified mail, postage prepaid, return receipt requested; (iii) one (1) Business Day after it is sent by commercial overnight courier
service or e-mail; or (iv) upon transmission if sent via facsimile with confirmation of receipt to the parties at the following address (or at such other address for a party as shall be specified upon
like notice): 
  

	 	(a)	 if to Parent, to: 

Rocket Lab USA, Inc. 
 3881
McGowen Street 
 Long Beach, California 90808 

Attention: General Counsel 

Email: legal@rocketlabusa.com 

with a copy (which shall not constitute notice) to: 

DLA Piper LLP (US) 
 4365
Executive Drive, Suite 1100 
 San Diego, California 92121 

Attention: Michael Brown 
 E-mail: michael.brown@us.dlapiper.com 

  
 78 

	 	(b)	 if to the Company or Shareholder Representative, to: 

Michael Whalen 
 2303 Kansas Ave

 Silver Spring, MD 20910 

Fax:     (301) 495-0738 

E-mail: mike@planetarysystemscorp.com 

with a copy (which shall not constitute notice) to: 

Hunton Andrews Kurth LLP 

Riverfront Plaza, East Tower 

951 East Byrd Street 
 Richmond,
VA 23219 
 Attention: Douglas S. Granger 

Fax: (804) 343-4528 

Email: dgranger@hunton.com 
 10.2
Counterparts; Facsimile. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be
delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been
duly and validly delivered and be valid and effective for all purposes. 
 10.3 Entire Agreement; Nonassignability; Parties in
Interest. This Agreement and the documents and instruments and other agreements specifically referred to herein or delivered pursuant hereto, including the exhibits and schedules hereto, including the Disclosure Schedule: (a) together
constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof except for the
Confidentiality Agreement, which except as set forth in Section 6.2 shall continue in full force and effect, and shall survive any termination of this Agreement or the Closing, in accordance with its terms; and (b) are
not intended to confer upon any other Person any rights or remedies hereunder and shall not be assigned by operation of law or otherwise without the written consent of the other party; provided, that (i) Parent may freely assign any of
its rights or obligations under this Agreement to an Affiliate or in connection with any Change of Control or other similar transaction and (ii) Parent may cause one or more of its Affiliates to act as the purchaser, transferee, assignee and/or
employer under this Agreement and/or any of the other Transaction Documents in addition to and/or in lieu of Parent hereunder, provided in each such case that Parent shall remain fully responsible for all payment obligations pursuant to this
Agreement. 
 10.4 Severability. In the event that any provision of this Agreement or the application thereof becomes or is declared
by a court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this Agreement will continue in full force and effect and the application of such provision to other persons or circumstances will be interpreted so as
reasonably to effect the intent of the parties hereto. The parties further agree to replace such void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the economic,
business and other purposes of such void or unenforceable provision. 

  
 79 

 10.5 Remedies Cumulative. Except as otherwise provided herein, any and all remedies
herein expressly conferred upon a party will be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by law or equity upon such party, and the exercise by a party of any one remedy will not preclude the exercise of any
other remedy. 
 10.6 Governing Law. 

(a) This Agreement shall be governed by and construed in accordance with the internal laws of Delaware applicable to parties residing in
Delaware, without regard applicable principles of conflicts of law. Notwithstanding the foregoing, all rights and obligations of the Company Shareholders with respect to the approval and effects of the Merger and their rights in respect to the
approval of the Merger shall be governed by the applicable provisions of the DC Code. 
 (b) The parties hereby irrevocably and
unconditionally consent to submit to the exclusive jurisdiction of the Court of Chancery of the State of Delaware (or, only if such court declines to accept jurisdiction over a particular matter, then in the United States District Court for the
District of Delaware, or if jurisdiction is not then available in the United States District Court for the District of Delaware (but only in such event), then in any Delaware state court sitting in New Castle County) and any appellate court from any
of such courts (the “Chosen Courts”), for any Action arising out of or relating to this Agreement (but not relating to any other claims between the parties) (and the parties agree not to commence any Action relating to this
Agreement except in the Chosen Courts), and further agree that service of any process, summons, notice or document by U.S. registered mail to the addresses set forth in Section 10.1 shall be effective service of process for
any Action brought against the applicable party in any Chosen Court. The parties hereby irrevocably and unconditionally waive any objection to the laying of venue of any Action arising out of this Agreement, in the Chosen Courts, and hereby further
irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such Action brought in any such court has been brought in an inconvenient forum. 

(c) EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION (WHETHER AT LAW, IN CONTRACT, IN TORT OR
OTHERWISE) ARISING OUT OF OR RELATED TO THIS AGREEMENT. 
 10.7 Rules of Construction. The parties hereto agree that they have been
represented by counsel during the negotiation, preparation and execution of this Agreement and, therefore, waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document
will be construed against the party drafting such agreement or document. 
 10.8 Specific Enforcement. Each party acknowledges and
agrees that the other party would be irreparably harmed and would not have any adequate remedy at law in the event that any of the provisions of this Agreement were not performed by the applicable party in accordance with their specific terms or
were otherwise breached. Accordingly, each party agrees that the other party shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, this
being in addition to any other remedy to which each party is entitled at law or in equity. 
 10.9 Amendment; Waiver. Any amendment or
waiver of any of the terms or conditions of this Agreement must be in writing and must be duly executed by or on behalf of the party to be charged with such waiver. The failure of a party to exercise any of its rights hereunder or to insist upon
strict adherence to any term or condition hereof on any one occasion shall not be construed as a waiver or deprive that party of the right thereafter to insist upon strict adherence to the terms and conditions of this Agreement at a later date.
Further, no waiver of any of the terms and conditions of this Agreement shall be deemed to or shall constitute a waiver of any other term of condition hereof (whether or not similar). 

  
 80 

 10.10 Interpretation. 

(a) When a reference is made in this Agreement to Sections or Exhibits, such reference shall be to a Section of, or an Exhibit to this
Agreement unless otherwise indicated. 
 (b) The headings contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement. 
 (c) The words “include,” “includes” and
“including” when used herein shall be deemed in each case to be followed by the words “without limitation.” 
 (d) The
phrases “delivered,” “provided to,” “made available” and “furnished to” and phrases of similar import when used herein, unless the context otherwise requires, means, with respect to any statement in
Section 3 of this Agreement to the effect that any information, document or other material has been “delivered,” “provided to” or “furnished” to Parent or its Representatives, that such
information, document, or material was made available for review (without subsequent modification by the Company) by Parent or its representatives in the virtual data room set up by the Company in connection with this Agreement at least two
(2) Business Days prior to the Agreement Date. 
 (e) Unless the context of this Agreement otherwise requires: (i) words of any
gender include each other gender; (ii) words using the singular or plural number also include the plural or singular number, respectively; and (iii) the terms “hereof,” “herein,” “hereunder” and derivative or
similar words refer to this entire Agreement. 
 [The remainder of this page is intentionally left blank.] 

  
 81 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered as
of the date first written above. 
  

			
	PARENT:
	
	ROCKET LAB USA, INC.
		
	By:	 	 /s/ Peter Beck

	Name:	 	Peter Beck
	Title:	 	Chief Executive Officer
	
	MERGER SUB:
	
	PLATINUM MERGER SUB, INC.
		
	By:	 	 /s/ Peter Beck

	Name:	 	Peter Beck
	Title:	 	Chief Executive Officer
	
	COMPANY:
	
	PLANETARY SYSTEMS CORPORATION
		
	By:	 	 /s/ Michael Whalen

	Name:	 	Michael Whalen
	Title:	 	President
	
	SHAREHOLDER REPRESENTATIVE, in
	His capacity as such:
	
	 /s/ Michael Whalen

	Michael Whalen

 [Signature Page to Agreement and Plan of Merger]Document

Exhibit 10.1

════════════════════════════════════════════════════

AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT

by and among

ARES COMMERCIAL REAL ESTATE CORPORATION

as Borrower,

ACRC HOLDINGS LLC, ACRC MEZZ HOLDINGS LLC and ACRC WAREHOUSE HOLDINGS LLC

as Guarantors,

THE LENDERS PARTIES HERETO FROM TIME TO TIME

as the Lenders,

CORTLAND CAPITAL MARKET SERVICES LLC,

together with its successors and assigns
as the Administrative Agent

and

CORTLAND CAPITAL MARKET SERVICES LLC,

together with its successors and assigns
as the Collateral Agent

Dated as of November 12, 2021

════════════════════════════════════════════════════

TABLE OF CONTENTS

						
	ARTICLE I DEFINITION AND CONSTRUCTION
	1.1	Definitions
	1.2	Construction
	1.3	Accounting Terms; GAAP; Pro Forma Calculations
		
	ARTICLE II AMOUNT AND TERMS OF LOANS
	2.1	Credit Facilities
	2.2	[Reserved]
	2.3	Interest Rates; Payment of Principal and Interest
	2.4	Computation of Interest and Fees; Maximum Interest Rate
	2.5	Request for Borrowing
	2.6	[Reserved]
	2.7	Repayment of Borrowings
	2.8	Prepayments
	2.9	Fees
	2.10	Maintenance of Loan Account; Statements of Obligations
	2.11	Increased Costs
	2.12	Delayed Draw Term Loans
	2.13	Funding Sources
	2.14	Place of Loans
	2.15	Incremental Term Loans
	2.16	Mitigation of Obligations
	2.17	Pro Rata Treatment
		
	ARTICLE III CONDITIONS TO LOANS
	3.1	Conditions Precedent to the Initial Term Loan and the A&R Effective Date Term Loan
	3.2	Conditions Precedent to All Loans
	3.3	Maturity Date
		
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE BORROWER
	4.1	Due Organization
	4.2	Securities and Subsidiaries
	4.3	Requisite Power and Authorization
	4.4	Binding Agreements
	4.5	Other Agreements
	4.6	Litigation: Adverse Facts and Compliance with Laws
	4.7	Government Consents
	4.8	Title to Assets; Liens
	4.9	ERISA
	4.10	Payment of Taxes
	4.11	Governmental Regulation
	4.12	Disclosure
	4.13	Debt
	4.14	Existing Defaults
	4.15	No Material Adverse Effect
	4.16	Security Documents
	4.17	Solvency.
	4.18	Use of Proceeds

						
	TABLE OF CONTENTS

	(continued)
		
	4.19	Anti-Corruption and Anti-Money Laundering Laws and Sanctions.
		
	ARTICLE V AFFIRMATIVE COVENANTS OF THE BORROWER
	5.1	Accounting Records and Inspection
	5.2	Financial Statements.
	5.3	Certificates; Other Information
	5.4	Existence
	5.5	Payment of Taxes and Claims
	5.6	Compliance with Laws and Material Contractual Obligations
	5.7	Further Assurances
	5.8	Payment of Obligations
	5.9	Maintenance of Insurance
	5.10	Maintenance of Property and Licenses
	5.11	Covenant to Guarantee Obligations and Give Security
	5.12	ERISA
	5.13	Post-Closing Items
		
	ARTICLE VI NEGATIVE COVENANTS OF the BORROWER
	6.1	Debt
	6.2	Liens
	6.3	Debt Prepayments
	6.4	Dividends
	6.5	Restriction on Fundamental Changes
	6.6	Sale of Assets
	6.7	Transactions with Shareholders and Affiliates
	6.8	Conduct of Business
	6.9	Amendments or Waivers of Certain Documents; Actions Requiring the Consent of the Agents
	6.10	Limitation on Negative Pledges
	6.11	Margin Regulation
	6.12	Financial Covenants
	6.13	Plans
		
	ARTICLE VII EVENTS OF DEFAULT AND REMEDIES
	7.1	Events of Default
	7.2	Remedies
	7.3	Borrower’s Right to Cure
		
	ARTICLE VIII EXPENSES AND INDEMNITIES
	8.1	Expenses
	8.2	Indemnity
		
	ARTICLE IX ASSIGNMENT AND PARTICIPATIONS
	9.1	Successors and Assigns Generally
		
	ARTICLE X AGENT; THE LENDER GROUP
	10.1	Appointment and Authorization of Agent
	10.2	Delegation of Duties
	10.3	General Immunity
		

						
	TABLE OF CONTENTS

	(continued)
		
	10.4	Reliance by Agent
	10.5	Knowledge of Defaults/Events of Default
	10.6	Credit Decision
	10.7	Costs and Expenses; Indemnification
	10.8	Agent in Individual Capacity
	10.9	Successor Agent
	10.10	Lender in Individual Capacity
	10.11	Withholding Taxes
	10.12	Collateral and Guarantor Matters
	10.13	Restrictions on Actions by Lenders; Sharing of Payments
	10.14	Agency for Perfection
	10.15	Payments by Agent to the Lenders
	10.16	Concerning the Collateral and Related Loan Documents
	10.17	Field Examinations and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information
	10.18	Several Obligations; No Liability
	10.19	Bank Product Providers
	10.20	Representations and Warranties of each Agent
	10.21	Erroneous Payments.
		
	ARTICLE XI MISCELLANEOUS
	11.1	No Waivers, Remedies
	11.2	Waivers and Amendments
	11.3	Notices
	11.4	Release of Borrowing Base Eligible Assets
	11.5	Valuation Confirmation Process
	11.6	Headings
	11.7	Execution in Counterparts; Effectiveness
	11.8	GOVERNING LAW
	11.9	JURISDICTION AND VENUE
	11.10	WAIVER OF TRIAL BY JURY
	11.11	Independence of Covenants
	11.12	Confidentiality
	11.13	Complete Agreement
	11.14	USA Patriot Act Notice
		
	ARTICLE XII THE GUARANTY
	12.1	The Guarantee
	12.2	Obligations Unconditional
	12.3	Reinstatement
	12.4	Certain Additional Waivers
	12.5	Remedies
	12.6	Rights of Contribution
	12.7	Guaranty of Payment; Continuing Guarantee
	12.8	Amendment and Restatement
	12.9	Grantor Trust Trustee.

AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT

THIS AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT, dated as of November 12, 2021, is entered into by and among, on the one hand, the lenders identified on the signature pages hereof, CORTLAND CAPITAL MARKET SERVICES LLC (“Cortland”), as the administrative agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, “Administrative Agent”), and as the collateral agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, “Collateral Agent” and, together with the Administrative Agent, the “Agents”), and, on the other hand, ARES COMMERCIAL REAL ESTATE CORPORATION, a Maryland corporation (“Borrower”), ACRC HOLDINGS LLC, a Delaware limited liability company (“ACRC Holdings”), ACRC MEZZ HOLDINGS LLC, a Delaware limited liability company (“ACRC Mezz”) and ACRC WAREHOUSE HOLDINGS LLC, a Delaware limited liability company (“ACRC Warehouse,” together with ACRC Holdings and ACRC Mezz, the “Guarantors” and each individually a “Guarantor”).
The parties to this Agreement are party to that certain Credit and Guaranty Agreement, dated as of December 9, 2015 (the “Original Credit Agreement”), as amended by that certain First Amendment thereto, dated as of December 22, 2017 and as may be further amended, supplemented or otherwise modified prior to the date hereof (the Original Credit Agreement, as so amended, supplemented or otherwise modified prior to the date hereof, the “Existing Credit Agreement”); and
Such parties wish to amend and restate in its entirety the Existing Credit Agreement by the execution and delivery of this Agreement, intending that such execution and delivery shall constitute a continuation of the transactions contemplated by the Existing Credit Agreement and not a novation of the Existing Credit Agreement.
ARTICLE I
DEFINITION AND CONSTRUCTION

1.1  Definitions.  For purposes of this Agreement (as defined below), the following initially capitalized terms shall have the following meanings:
“A&R Effective Date” shall mean November 12, 2021.
“A&R Effective Date Subsidiary” means any direct wholly-owned Subsidiary of the Borrower formed after the Original Closing Date but on or before the A&R Effective Date.
“A&R Effective Date Term Loan” has the meaning set forth in Section 2.1(a)(ii).
“A&R Effective Date Term Loan Commitment” has the meaning set forth in Section 2.1(a)(ii).
“A&R Effective Date Transactions” means collectively, the transactions to occur on or prior to the A&R Effective Date including the execution and delivery of this Agreement and the performance of this Agreement and the other Loan Documents, the making of the A&R Term Loan Commitment and the borrowing of the A&R Effective Date Term Loans and the use of proceeds thereof.
“ACRC Lender” means ACRC Lender LLC, a Delaware limited liability company.
“ACRC Mezz” has the meaning set forth in the preamble to this Agreement.
“Additional Lender” has the meaning set forth in Section 2.15(b).

“Administrative Agent” has the meaning set forth in the preamble to this Agreement.
“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent.
“Affiliate” means, with respect to any Person, any other Person which, directly or indirectly, controls, is controlled by, or is under common control with, such Person.  For purposes of this definition, “control” (together with the correlative meanings of “controlled by” and “under common control with”) means possession, directly or indirectly, of the power (a) to vote 10% or more of the securities (on a fully diluted basis) having ordinary voting power for the directors or managing general partners (or their equivalent) of such Person, or (b) to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by contract, or otherwise; provided, that no issuer of a Specified Third Party Securitization shall be considered an “Affiliate” of such Person.
“Agency” means The Federal National Mortgage Association, The Federal Home Loan Mortgage Corporation, The Government National Mortgage Association, the Federal Housing Administration, a division of HUD, and including the Federal Housing Commissioner and the Secretary of HUD where appropriate under the FHA Regulations, United States Department of Housing and Urban Development, Consumer Financial Protection Bureau, an agency of the United States, the U.S. Department of Veterans Affairs, an executive branch department of the United States of America headed by the Secretary of Veterans Affairs, or any successor of the foregoing.
“Agent” or “Agents” has the meaning set forth in the preamble to this Agreement.
“Agent’s Account” means a Deposit Account as designated in writing by the applicable Agent to the Borrower and the Lenders form time to time.
“Agent Fee Letter” means that certain fee letter agreement dated as of December 22, 2017 by and between Borrower and Cortland. 
“Agent-Related Persons” means any Agent, together with its Affiliates, partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives.
“Agreement” means this Amended and Restated Credit and Guaranty Agreement by and among the Borrower, the Guarantors, the Lenders and the Agents, together with all exhibits and schedules hereto.
“All-In Yield” means, as to any Debt, the yield thereof, whether in the form of interest rate, margin, OID or upfront fees (subject to any applicable “cap,” “floor” or limit pursuant to any Swap Agreement); provided that OID and upfront fees shall be equated to interest rate assuming the stated life to maturity at the time of incurrence of the applicable Debt; provided, further, that “All-In Yield” shall not include arrangement fees, structuring fees, underwriting fees or other fees not paid to all providers of such Debt.
“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to any Loan Party from time to time concerning or relating to bribery or corruption, including without limitation the United States Foreign Corrupt Practices Act of 1977, as amended and other similar legislation in any other jurisdictions.
“Anti-Money Laundering Laws” means applicable laws or regulations in any jurisdiction in which the Borrower or any Loan Party is located or doing business that relates to money laundering, any predicate crime to money laundering, or any financial record keeping and reporting requirements related thereto. 

“Applicable Advance Rate” means, for each Borrowing Base Eligible Asset, the percentage as set forth below:
						
	Senior Commercial Real Estate Loan:	75%
	Senior Commercial Real Estate Construction Loan:	65%
	Subordinated Commercial Real Estate Loan:	50%
	Preferred Equity Investment:	45%
	Borrowing Base Debt Subsidiary:	50%
	Triple Net Leased Properties:	40%

The Applicable Advance Rate for a Borrowing Base Eligible Asset comprised of equity interests in a Borrowing Base Subsidiary (other than a Borrowing Base Debt Subsidiary) shall be determined and applied with respect to each Mortgage Asset held by such Borrowing Base Subsidiary based on the Applicable Advance Rates applicable to such type of Mortgage Asset as set forth above.
 “Application Event” means the occurrence of (a) a failure by the Borrower to repay in full all of the Obligations on the Maturity Date, or (b) an Event of Default and the election by the Required Lenders to require that payments and Proceeds of Collateral be applied pursuant to Section 2.3(a)(ii)(E) and (F) of this Agreement.
“Approved Fund” means any fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.
“Asset” means any interest of a Person in any kind of property or asset, whether real, personal, or mixed real and personal, or whether tangible or intangible; provided, that “Assets” shall be determined without regard to the effects of consolidation of any issuer of a Specified Third Party Securitization on the financial statements of such Person under Accounting Standards Codification Section 810, as amended, modified or supplemented from time to time, or otherwise under GAAP.
“Asset Coverage Ratio” means, at any date, the ratio of (a) the Borrowing Base to (b) the aggregate principal amount of the Loans outstanding under this Agreement.
“Assigned Value” means, as of any date of determination, as to any single asset included as a Borrowing Base Eligible Asset, the value of such Borrowing Base Eligible Asset as of such date of determination as set forth below:
(a)    at any time prior to the occurrence of a VAE:
(i)    which is a Mortgage Asset shall, in each case, be the current outstanding principal balance of such Borrowing Base Eligible Asset (net of any specific reserves);
(ii)    which is comprised of the equity interests of a Borrowing Base Debt Subsidiary shall be the excess of (A) the current outstanding principal balance of the Mortgage Assets held by such Borrowing Base Debt Subsidiary (net of any specific reserves) over (B) the current outstanding principal balance of the associated Warehousing Debt, Securitization Indebtedness and/or all other debt outstanding related to such Mortgage Assets (net of any specific reserves);
(iii)    which is comprised of the equity interests of a Borrowing Base Subsidiary that is not a Borrowing Base Debt Subsidiary, shall be the current outstanding principal balance of the Mortgage Assets held by such Borrowing Base Subsidiary (net of any specific reserves, outstanding Debt and other liabilities);

(iv)    which is a Triple Net Leased Property, the purchase price (net of any outstanding Debt and other liabilities); and
(v)    for all other Borrowing Base Eligible Assets, the current outstanding principal balance of such Borrowing Base Eligible Assets (net of any specific reserves, outstanding Debt and other liabilities);
(b)    At any time following the occurrence of a VAE, the “Assigned Value” in respect of any Borrowing Base Eligible Asset:
(i)    which is either a Senior Commercial Real Estate Loan, a Senior Commercial Real Estate Construction Loan or a Borrowing Base Eligible Asset that is not covered under clauses (ii) through (vi) below and has experienced a VAE under clause (i), (ii) or (iii) of the definition thereof, the Assigned Value determined in clause (a)(i) above; provided that if such Assigned Value is disputed by the Required Agents, which notice of such dispute shall be delivered to the Borrower in writing within five (5) business days after the Agents receive notice that a VAE has occurred with respect to such Borrowing Base Eligible Assets, the Determined Valuation shall apply;
(ii)    which is either a Subordinated Commercial Real Estate Loan, Preferred Equity Investment or Triple Net Leased Property and has experienced a VAE under clause (i) or (ii) of the definition thereof, for the first 30 days after the VAE, 50% times the Assigned Value determined pursuant to clause (a)(i) above and, thereafter for so long as such VAE continues to apply, zero (unless a valuation by a valuation agent has been obtained by the Borrower, in which case, the Determined Valuation shall apply);
(iii)    which is either a Subordinated Commercial Real Estate Loan, Preferred Equity Investment or Triple Net Leased Property and has experienced a VAE under clause (iii), (iv) or (vi) of the definition thereof, for the first 30 days after the VAE, 75% times the Assigned Value determined pursuant to clause (a)(i) above and, thereafter for so long as such VAE continues to apply, zero (unless a valuation by a valuation agent has been obtained by the Borrower, in which case, the Determined Valuation shall apply);
(iv)    which is comprised of the equity interests of a Borrowing Base Debt Subsidiary and has experienced a VAE under clause (i) or (ii) of the definition thereof (and which Assigned Value shall only be applied to the particular underlying Mortgage Asset(s) which has experienced a VAE), for the first 30 days after such VAE, 50% times the Assigned Value determined pursuant to clause (a)(ii) above and, thereafter for so long as such VAE continues to apply, zero (unless a valuation by a valuation agent has been obtained by the Borrower, in which case, the Determined Valuation shall apply);
(v)    which is comprised of the equity interests of a Borrowing Base Debt Subsidiary and has experienced a VAE under clause (v) of the definition thereof, clause (vi) of the definition thereof (but only to the extent the occurrence of a material modification of an Borrowing Base Eligible Asset or a Mortgage Asset held by a Borrowing Base Debt Subsidiary results in a modification that has a material adverse effect on such Borrowing Base Debt Subsidiary) or clause (vii) of the definition thereof, for the first 30 days after such VAE, 75% times the Assigned Value determined pursuant to clause (a)(ii) above and, thereafter for so long as such VAE continues to apply, zero (unless a valuation by a valuation agent has been obtained by the Borrower, in which case, the Determined Valuation shall apply); and

(vi)    which is comprised of the equity interests of a Borrowing Base Subsidiary that is not a Borrowing Base Debt Subsidiary (and which Assigned Value shall be applied only to the particular underlying Mortgage Asset(s) which has experienced a VAE), the Assigned Value shall be determined and applied with respect to each Mortgage Asset held by such Borrowing Base Subsidiary based on clauses (i), (ii), (iii) and (vii) of this section (b).
“Assignment and Acceptance” means an Assignment and Acceptance Agreement substantially in the form of Exhibit A-1 or such other form approved by the Administrative Agent.
“B Note” means a promissory note secured by a mortgage on multi-family or commercial real estate property, which note is subordinate in right of payment to one or more separate promissory notes secured by the same property.
“Bank Product” means any financial accommodation extended to a Loan Party by a Bank Product Provider in connection with Swap Agreements.
“Bank Product Agreements” means those agreements entered into from time to time by any Loan Party with a Bank Product Provider in connection with the obtaining of any of the Bank Products.
“Bank Product Obligations” means all obligations, liabilities, contingent reimbursement obligations, fees, and expenses owing by any Loan Party to any Bank Product Provider pursuant to or evidenced by the Bank Product Agreements and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising.
“Bank Product Provider” means each counterparty to any Loan Party under a Bank Product Agreement.
“Bankruptcy Code” means Title 11 of the United States Code, as amended or supplemented from time to time, and any successor statute, and all of the rules and regulations issued or promulgated in connection therewith.
“Bankruptcy Plan” has the meaning set forth in Section 9.1(f)(iii). 
“Basel III” means the agreements on capital requirements, leverage ratio and liquidity standards contained in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III: International framework for liquidity risk measurement, standards and monitoring” and “Guidance for national authorities operating the countercyclical capital buffer” published by the Basel Committee on Banking Supervision on 16 December 2010, each as amended, supplemented or restated.
“Board of Directors” means, as to any Person, the board of directors (or comparable managers) of such Person, or any committee thereof duly authorized to act on behalf of the board of directors (or comparable managers).
“Board of Governors” means the Board of Governors of the Federal Reserve System of the United States of America, or any successor thereto.
“Borrower” has the meaning set forth in the introduction to this Agreement.
“Borrower Affiliate” means any Affiliate of the Borrower (other than a natural Person, or a holding company, investment vehicle or trust for or owned and operated for the primary benefit of a natural Person or the Borrower and its Subsidiaries).

“Borrower DACA” means the deposit account control agreement by and among the Borrower, Bank of America, N.A. and the Collateral Agent respect to the Borrower’s deposit account number 8188693212.
“Borrowing Base” means, as of any date of determination, the sum of the Borrowing Base Value of each Borrowing Base Eligible Asset as of such date as determined by the most recent Borrowing Base Certificate and adjusted as reflected in any Determined Valuation; provided that, at the time of origination or purchase by the Borrower or its Subsidiaries of a Borrowing Base Eligible Asset, the allocated Borrowing Base Value of any single property underlying any Borrowing Base Eligible Asset shall not comprise in excess of 10.0% of the total Borrowing Base Value of all Borrowing Base Eligible Assets (and any such excess shall be disregarded for purposes of determining the Borrowing Base); provided, further, that the Borrowing Base shall be recalculated on (i) the last day of each fiscal quarter, (ii) the date on which any Loan is requested and (iii) the date on which the Borrower has actual knowledge of a VAE.
“Borrowing Base Certificate” means a certificate, signed and certified as accurate and complete by a Responsible Officer of the Borrower, in substantially the form of Exhibit B-2.
“Borrowing Base Debt Subsidiary” means any Subsidiary of the Borrower listed on Schedule C-2 that has associated Warehousing Debt, Securitization Indebtedness or other debt outstanding; provided, that, such Subsidiary shall be a “Borrowing Base Debt Subsidiary” only to the extent that the Borrower, directly or indirectly, holds all of the non-rated debt issued in connection with any Securitization Transaction and all of the preferred or other equity interests and all risk retention interests related to any such Warehousing Debt, Securitization Indebtedness or other debt, as applicable.
“Borrowing Base Deficiency” means the circumstance that exists in the event that the outstanding aggregate principal amount of the Loans outstanding under this Agreement exceeds the Borrowing Base on any date of determination
“Borrowing Base Eligibility Criteria” means, with respect to an asset which the Borrower represents and warrants is a Borrowing Base Eligible Asset:
(i)    Such asset is (x) held by the Borrower or a Subsidiary thereof (other than a Borrowing Base Subsidiary) and is (A) a Senior Commercial Real Estate Loan, (B) a Subordinated Commercial Real Estate Loan, (C) a Preferred Equity Investment (directly or indirectly), (D) a Senior Commercial Real Estate Construction Loan acceptable to the Required Lenders (in their sole discretion) , or (E) such other asset (including an interest in a CRE-CLO and/or CMBS) acceptable to the Required Lenders (in their sole and absolute discretion), (y) an equity interest in a Borrowing Base Subsidiary that is not a Borrowing Base Debt Subsidiary, which subsidiary holds (directly or indirectly), any asset referred to in subclause (x) of this clause (i) that would otherwise qualify as Borrowing Base Eligible Asset or (z) an equity interest in a Borrowing Base Debt Subsidiary that (A) owns (directly or indirectly), any asset referred to in subclause (x) of this clause (i) that would otherwise qualify as Borrowing Base Eligible Assets and (B) to the extent the Borrowing Base Debt Subsidiary owns any asset of the type set forth in subclauses (x)(B) or (x)(C) of this clause (i), such assets do not exceed 15% of the total assets held by such subsidiary as measured by the respective outstanding principal balance of all assets held by such subsidiary, including, without limitation, any assets of the type set forth in subclauses (x)(B) or (x)(C) of this clause (i);
(ii)    such asset (or, in the case of any Borrowing Base Subsidiary, the associated Mortgage Asset), together with the underlying loan documents related thereto (A) is in full force and 

effect and constitutes the legal, valid and binding obligation of the obligor thereunder (subject to customary qualifications and exceptions), (B) is not subject to any material litigation or dispute and (C) contains provisions that the obligor’s payment obligations thereunder are absolute and unconditional without any right of rescission, setoff, counterclaim or defense against the holder thereof (subject to customary qualifications and exceptions);
(iii)    such asset (or, in the case of any Borrowing Base Subsidiary, the associated Mortgage Asset) and any related collateral are each in compliance in all material respects with any applicable laws (subject to customary qualifications and exceptions); 
(iv)    at the time of purchase or origination (as applicable), such asset (or, in the case of any Borrowing Base Subsidiary, the associated Mortgage Asset) is not in payment default. At any time thereafter, such asset or Mortgage Asset is not in payment default after giving effect to any applicable grace, cure or notice periods (as such periods may be extended);
(v)    for any Subordinated Commercial Real Estate Loan or Preferred Equity Investment, such asset (or, in the case of any Borrowing Base Subsidiary, the associated Mortgage Asset) is eligible to be sold and does not by its terms prohibit the granting of a security interest therein, subject to Section 6.2(d);
(vi)    such asset (or, in the case of any Borrowing Base Subsidiary, the associated Mortgage Asset) does not contain a confidentiality provision that would prohibit the Agents from reviewing the asset and underlying loan documentation (notwithstanding that the Agents are advised of the confidential nature of information relating to the asset and agrees to keep such information confidential);
(vii)    the applicable Subsidiary of the Borrower has good and marketable title to, and is the sole owner of, such asset (or, in the case of any Borrowing Base Subsidiary, the associated Mortgage Asset) subject, in the case of Mortgage Assets of Borrowing Base Debt Subsidiaries, to the terms of the associated Warehousing Debt, Securitization Indebtedness or other applicable debt;
(viii)    such asset (or, in the case of any Borrowing Base Subsidiary, the associated Mortgage Asset) will not cause the Borrower to be required to register as an investment company under the Investment Company Act of 1940;
(ix)    such asset (or, in the case of any Borrowing Base Subsidiary, the associated Mortgage Asset) is not a Margin Security; 
(x)    for any Subordinated Commercial Real Estate Loan or Preferred Equity Investment, whether held directly or by a Borrowing Base Subsidiary or Borrowing Base Debt Subsidiary, the loan to value percentage of all indebtedness senior to such asset (or, in the case of any Borrowing Base Subsidiary or Borrowing Base Debt Subsidiary, the associated Mortgage Asset) does not exceed 80%; 
(xi)    such asset is cash or Cash Equivalents held in a Deposit Account that is the subject of a control agreement in favor of the Collateral Agent for the benefit of the Secured Parties; provided that, any cash or Cash Equivalents pledged under Section 6.2(c) to secure Debt permitted under Section 6.1(o) shall not be a Borrowing Base Eligible Asset; 

(xii)    such asset is (x) a Triple Net Leased Property or (y) an equity interest in a Subsidiary of the Borrower that owns a Triple Net Leased Property; and
(xiii)    such asset does not include any option that would allow the tenant on the property to purchase the property; 
(xiv)    for any Securities that are encumbered by or otherwise subject to a Permitted Collateral Lien (other than in respect to Liens arising pursuant to clauses (d) and (g) of the definition thereof) such Securities have not been encumbered by or otherwise subject to such Permitted Collateral Lien for longer than 10 Business Days after Borrower or any Grantor, as applicable, obtains knowledge thereof. 
“Borrowing Base Eligible Assets” means (a) on and from the A&R Effective Date, the assets set forth on Schedule C-1 and (b) as of any date of determination after the A&R Effective Date, the assets that (pursuant to a Borrowing Base Certificate) the Borrower has represented and warranted satisfies the Borrowing Base Eligibility Criteria (except to the extent compliance with any one or more of such Borrowing Base Eligibility Criteria is waived by the Agents in writing with respect to any such asset); provided that Liens arising pursuant to clauses (d) and (g) of the definition of Permitted Collateral Liens shall not be subject to such 10 Business Day limitation.
“Borrowing Base Subsidiary” means any Subsidiary of the Borrower whose equity interests constitute Borrowing Base Eligible Assets pursuant to subclauses (i)(y) or (i)(z) of the definition of Borrowing Base Eligibility Criteria and shall include, without limitation, all Borrowing Base Debt Subsidiaries listed on Schedule C-2.

“Borrowing Base Value” means, with respect to any Borrowing Base Eligible Asset as of any date of determination, the sum of (a) product of (x) the Applicable Advance Rate for such Borrowing Base Eligible Asset as of such date and (y) the Assigned Value of such Borrowing Base Eligible Asset as of such date, plus (b) the consolidated unrestricted cash and Cash Equivalent of the Borrower and its Subsidiaries.
“Business Day” means a day when major commercial banks are open for business in New York, New York, other than Saturdays or Sundays.
“Capitalized Lease Obligations” means with respect to any Person, the amount of all obligations of such Person to pay rent or other amounts under a lease of property to the extent and in the amount that such obligations are required to be classified and accounted for as a capital lease on a balance sheet of such Person in accordance with GAAP.
“Cash Cure Amount” has the meaning set forth in Section 7.3(c).
“Cash Equivalents” means (a) marketable direct obligations issued by, or unconditionally guaranteed by, the United States or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within 1 year from the date of acquisition thereof, (b) marketable direct obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof maturing within 1 year from the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from either Standard & Poor’s Rating Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”), (c) commercial paper maturing no more than 270 days from the date of creation thereof and, at the time of acquisition, having a rating of at least A-1 from S&P or at least P-1 from Moody’s, (d) certificates of deposit or bankers’ acceptances maturing within 1 year from the date of acquisition thereof issued by any bank organized under the laws of the 

United States or any state thereof having at the date of acquisition thereof combined capital and surplus of not less than $250,000,000, (e) demand deposit accounts maintained with any bank organized under the laws of the United States or any state thereof having combined capital and surplus of not less than $1,000,000,000, so long as the amount maintained with any individual bank is less than or equal to $1,000,000 and is insured by the Federal Deposit Insurance Corporation, or larger amounts, to the extent that such amounts are covered by insurance which is reasonably satisfactory to the Required Agents, (f) demand deposit accounts maintained with any of the financial institutions listed on Schedule A-2 hereto (as may be modified from time to time with the consent of the Required Agents, which consent shall not be unreasonably withheld or delayed), Affiliates thereof, or any Lender that is a bank that is insured by the Federal Deposit Insurance Corporation, and (g) Investments in money market funds substantially all of whose assets are invested in the types of assets described in clauses (a) through (e) above.
“Change in Law” means the occurrence, after the date of this Agreement, of any of the following:  (a) the adoption or taking effect of any law, rule, regulation or treaty. (b) any change in law, rule or treaty in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.
“Change of Control Event” means the occurrence of any of the following events has occurred without the prior written approval of the Required Lenders:  
(a)    any “person” or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of a percentage of the total voting power of all classes of capital stock of the Borrower entitled to vote generally in the election of directors, of thirty-five percent (35%) or more; 
(b)    the Borrower shall cease to maintain its status as a publicly traded REIT;
(c)    the consummation of a merger or consolidation of the Borrower with or into another entity or any other reorganization of the Borrower pursuant to which the Borrower is not the surviving entity following such merger, consolidation or reorganization;
(d)    a transfer of all or substantially all of the Borrower’s Assets (excluding any transfer in connection with any Securitization Transaction or any repurchase or other similar transactions);
provided that, notwithstanding anything to the contrary herein, any event that does not result in a  Change of Manager Event, will not constitute a Change of Control Event. 
“Change of Manager Event” means Ares Management, L.P. or any of its Affiliates ceases to be the manager of the Borrower and a replacement for such manager, which replacement shall be approved by the Required Lenders (in their sole discretion), has not occurred within 90 days.
“City National Bank Facility” means that certain Credit Agreement dated as of March 12, 2014, by and among ACRC Lender, the lenders party thereto and City National Bank, as arranger and administrative agent (as amended by Amendment Number One to Credit Agreement and Consent, dated 

July 30, 2014, by and among the Lenders (as defined therein) party thereto, City National Bank, as administrative agent and ACRC Lender, as further amended by the Amendment Number Two to Credit Agreement, dated August 17, 2015, by and among the Lenders (as defined therein) party thereto, City National Bank, as administrative agent and ACRC Lender, as further amended by the Amendment Number Three to Credit Agreement, dated February 26, 2016, by and among the Lenders (as defined therein) party thereto, City National Bank, as administrative agent and ACRC Lender, as further amended by the Amendment Number Four to Credit Agreement and Amendment Number One to General Continuing Guaranty, dated December 27, 2016, by and among the Lenders (as defined therein) party thereto, City National Bank, as administrative agent and ACRC Lender, as further amended by the Amendment Number Five to Credit Agreement, dated March 2, 2017, by and among the Lenders (as defined therein) party thereto, City National Bank, as administrative agent and ACRC Lender, as further amended by the Amendment Number Six to Credit Agreement, dated April 19, 2017, by and among the Lenders (as defined therein) party thereto, City National Bank, as administrative agent and ACRC Lender and as further amended by the Amendment Number Seven to Credit Agreement, dated June 5, 2019, by and among the Lenders (as defined therein) party thereto, City National Bank, as administrative agent and ACRC Lender), as amended, restated, amended and restated, refinanced, renewed, replaced, supplemented or otherwise modified from time to time.
“Code” means the Internal Revenue Code of 1986, as amended or supplemented from time to time, and any successor statute, and all of the rules and regulations issued or promulgated in connection therewith.
“Collateral” has the meaning ascribed thereto in the Security Agreement; provided, however, that, to the extent such Collateral is denominated in a currency, such denomination shall be in Dollars.
“Collateral Agent” has the meaning set forth in the preamble to this Agreement.
“Collateral Agent’s Liens” means the Liens granted by any Loan Party to the Collateral Agent, for the benefit of the Lenders, under the Loan Documents.
 “Collections” means all cash, checks, notes, instruments, and other items of payment.
 “Commitments” means any Term Loan Commitment, Incremental Term Loan Commitment or Delayed Draw Term Loan Commitment, as applicable.
“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.
“Compliance Certificate” means a certificate duly executed by a Responsible Officer of the Borrower, substantially in the form of Exhibit P-1.
“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.
“Contingent Obligation” means, as to any Person and without duplication of amounts, any written obligation of such Person guaranteeing or intended to guarantee (whether guaranteed, endorsed, comade, discounted, or sold with recourse to such Person) any Debt, noncancellable lease, dividend, reimbursement obligations relating to letters of credit, or any other obligation that pertains to Debt, a noncancellable lease, a dividend, or a reimbursement obligation related to letters of credit (each, a “primary obligation”) of any other Person (“primary obligor”) in any manner, whether directly or indirectly, including any written obligation of such Person, irrespective of whether contingent, (a) to purchase any such primary obligation, (b) to advance or supply funds (whether in the form of a loan, 

advance, stock purchase, capital contribution, or otherwise) (i) for the purchase, repurchase, or payment of any such primary obligation or any Asset constituting direct or indirect security therefor, or (ii) to maintain working capital or equity capital of the primary obligor, or otherwise to maintain the net worth, solvency, or other financial condition of the primary obligor, or (c) to purchase or make payment for any Asset, securities, services, or noncancellable lease if primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation.
“Contractual Obligation” means, as applied to any Person, any indenture, mortgage, deed of trust, contract, undertaking, agreement, or other instrument to which that Person is a party or by which any of its Assets is subject.
“Cortland” has the meaning set forth in the introduction to this Agreement.
“Credit Facilities” means each of (a) the Term Loan Commitments and the Initial Term Loans and the A&R Effective Date Term Loans made thereunder (the “Term Loan Facility”), (b) the Delayed Draw Term Loan Commitments and the Delayed Draw Term Loans made thereunder (the “Delayed Draw Term Loan Facility”) and (c) the Incremental Term Commitments and the Incremental Term Loans made thereunder.
“Cure Expiration Date” has the meaning set forth in Section 7.3(a).
“Debt” means, with respect to any Person, (a) all indebtedness, whether or not represented by bonds, debentures, notes, securities, or other evidences of indebtedness, for the repayment of money borrowed, (b) all indebtedness representing deferred payment of the purchase price of property or Assets, exclusive of trade payables that are due and payable in the ordinary course of such Person’s business, (c) all Capitalized Lease Obligations of such Person and (d) all indebtedness currently due under guaranties, endorsements, assumptions, or other Contingent Obligations in respect of the foregoing; provided that “Debt” shall be determined without regard to the effects of consolidation of any issuer of a Specified Third Party Securitization on the financial statements of such Person under Accounting Standards Codification Section 810, as amended, modified or supplemented from time to time, or otherwise under GAAP.
“Debt Service” means, for any Test Period, the sum of (a) Interest Expense for the Borrower and the Guarantors determined on a consolidated basis for such period, and (b) all regularly scheduled principal payments made with respect to Indebtedness of Guarantor and its Subsidiaries during such period, other than (i) any voluntary or involuntary prepayment or (ii) prepayment occasioned by the repayment of an underlying asset, or any balloon, bullet, margin or similar principal payment which repays such Indebtedness in part or in full.
“Debtor Relief Laws” means the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization or similar debtor relief laws of the United States of America or other applicable jurisdictions from time to time in effect.
“Default” means an event, act, or occurrence which, with the giving of notice or the passage of time, would become an Event of Default. 
“Defaulting Lender” means any Lender that (a) has failed to (i) fund all or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Agents and the Borrower in writing that such failure is the result of such Lender’s good faith determination that one or more conditions precedent to funding (each of which conditions 

precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Agents or any other Lender any other amount required to be paid by it hereunder within two (2) Business Days of the date when due, (b) has notified the Borrower or the Agents in writing that it does not intend to comply with its funding obligations hereunder, or has, subject to Section 11.12, made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s good faith determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three (3) Business Days after written request by the Agents or the Borrower, to confirm in writing to the Agents and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Agents and the Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Required Agents that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender upon delivery of written notice of such determination to the Borrower and each Lender; provided that either Agent can declare the other Agent to be a Defaulting Lender under any one or more of clauses (a) through (d) above.
“Defaulting Lender Rate” means the Federal Funds Rate.
“Delayed Draw Availability Period” shall mean the period from and including the day after the A&R Effective Date until and including January 12, 2022
 “Delayed Draw Funding Date” has the meaning assigned to such term in Section 2.12(a).
“Delayed Draw Term Loan Commitment” shall mean, with respect to each Lender, the commitment, if any, of such Lender to make Delayed Draw Term Loans to the Borrower hereunder in a principal amount not to exceed the amount set forth under the heading “Delayed Draw Term Loan Commitment” opposite such Lender’s name on Annex A-2 or in the Assignment and Acceptance pursuant to which such Lender assumed its Delayed Draw Term Loan Commitment, as applicable, as the same may be reduced from time to time pursuant to Section 2.8.  The total amount of the Delayed Draw Term Loan Commitments as of the A&R Effective Date is $50,000,000. The total amount of the Delayed Draw Term Loan Commitments to be funded on the A&R Effective Date is $50,000,000. 
“Delayed Draw Term Loans” has the meaning set forth in Section 2.1(b)(i).
“Delayed Draw Term Loan Facilities” has the meaning set forth in the definition of “Credit Facilities”.
 “Delayed Draw Term Loan Lender” means each Lender that has a Delayed Draw Term Loan Commitment or that holds a Delayed Draw Term Loan.

“Deposit Account” means any “deposit account” (as that term is defined in the UCC). 
“Designated Account” means account number 8188090603 of the Borrower maintained with Bank of America, N.A., or such other deposit account of the Borrower (located within the United States) designated, in writing, from time to time, by the Borrower to the Agents.
“Determined Valuation” has the meaning set forth in Section 11.5.
“Distribution” has the meaning set forth in Section 6.4.
“Dollars” or “$” means United States dollars.
“EBITDA” means, with respect to any Person and for any Test Period, an amount equal to the sum of (a) Net Income (or loss) of such Person (prior to any impact from minority or non-controlling interests or joint venture net income and before deduction of any dividends on preferred stock of such Person), plus the following (but only to the extent actually included in determination of such Net Income (or loss)): (i) depreciation and amortization expense (other than those related to capital expenditures that have not been included in the calculation of Fixed Charges), (ii) Interest Expense, (iii) income tax expense, (iv) extraordinary or non-recurring gains, losses and expenses including but not limited to transaction expenses relating to business combinations, other acquisitions and unconsummated transactions, (v) unrealized loan loss reserves, impairments and other similar charges and (vi) unrealized gains, losses and expenses associated with (A) derivative liabilities including but not limited to convertible note issuances and (B) mortgage servicing rights (other than the initial revenue recognition of recording an asset), plus (b) such Person’s proportionate share of Net Income (prior to any impact from minority or noncontrolling interests or joint venture net income and before deduction of any dividends on preferred stock of such Person) of the joint venture investments and unconsolidated Affiliates of such Person, all with respect to such period.
“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 9.1(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 9.1(b)(iii)); provided however, that “Eligible Assignee” shall not include (a) any natural Person or (b) any Defaulting Lender, its parent, any of its Subsidiaries or any Person who, upon becoming a Lender hereunder, would constitute a Defaulting Lender or a Subsidiary thereof.
“Environmental Law” means any federal, state, provincial, foreign or local statute, law, rule, regulation, ordinance, code, binding and enforceable guideline, binding and enforceable written policy, or rule of common law now or hereafter in effect and in each case as amended, or any legally binding judicial or administrative interpretation thereof, including any judicial or administrative order, consent decree or judgment, in each case, to the extent applicable to Borrower or any of its Subsidiaries, relating to the environment, the effect of the environment on employee health, or Hazardous Materials, in each case as amended from time to time.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, the regulations promulgated thereunder and any successor thereto.
“ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with any Loan Party, is treated as a single employer under Section 414(b) or (c) of the Code, or solely for purposes of Section 302 or 303 of ERISA or Section 412 or 430 of the Code, is treated as a single employer under Section 414 of the Code.  Any former ERISA Affiliate of the Loan Parties shall continue to be considered an ERISA Affiliate of the Loan Parties within the meaning of this definition with respect to the period such entity was an ERISA Affiliate of any Loan Party and with respect to liabilities arising after such period for which any Loan Party could be liable under the Code or ERISA.

“ERISA Event” means (a) a “reportable event” within the meaning of Section 4043 of ERISA and the regulations issued thereunder with respect to any Single Employer Plan (excluding those for which the provision for 30 day notice to the PBGC has been waived by regulation in effect on the date hereof); (b) the failure to meet all applicable requirements of the Pension Funding Rules with respect to any Single Employer Plan, whether or not waived; (c) the filing of an application for a waiver of the minimum funding standards under the Pension Funding Rules with respect to any Single Employer Plan; (d) the termination of any Single Employer Plan or the withdrawal or partial withdrawal of any Loan Party from any Single Employer Plan or Multiemployer Plan; (e) a determination that any Single Employer Plan is, or is expected to be, in “at risk” status (as defined in Section 430 of the Code or Section 303 of ERISA); (f) a determination that any Multiemployer Plan is, or is expected to be, in “critical” or “endangered” status under Section 432 of the Code or Section 305 of ERISA; (g) the receipt by any Loan Party or any of their respective ERISA Affiliates from the PBGC or a plan administrator of any notice relating to an intention to terminate any Single Employer Plan or to appoint a trustee to administer any Single Employer Plan; (h) the adoption of any amendment to a Single Employer Plan that would require the provision of security pursuant to Section 436(f) of the Code; (i) the receipt by any Loan Party or any of their respective ERISA Affiliates of any notice, or the receipt by any Multiemployer Plan from any Loan Party or any of their respective ERISA Affiliates of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent, within the meaning of Title IV of ERISA; (j) the failure by any Loan Party or any of their respective ERISA Affiliates to make a required contribution to a Multiemployer Plan; (k) the occurrence of a nonexempt prohibited transaction (within the meaning of Section 4975 of the Code or Section 406 of ERISA) which could reasonably be expected to result in material liability to any Loan Party; (l) the receipt from the IRS of notice of disqualification of any Plan intended to qualify under Section 401(a) of the Code, or the disqualification of any trust forming part of any Plan intended to qualify for exemption from taxation under Section 501(a) of the Code; (m) the imposition of a lien pursuant to Section 430(k) of the Code or Section 303(k) of ERISA or a violation of Section 436 of the Code with respect to any Single Employer Plan; (n) the assertion of a material claim (other than routine claims for benefits) against any Plan other than a Multiemployer Plan or the assets thereof, or against any Loan Party or any of their respective ERISA Affiliates in connection with any Plan; or (o) the occurrence of an act or omission which could give rise to the imposition on any Loan Party or any of their respective ERISA Affiliates of any  fine, penalty, tax or related charge under Chapter 43 of the Code or under Section 409, Section 502(c), (i) or (l), or Section 4071 of ERISA in respect of any Plan.
“Erroneous Payment” has the meaning set forth in Section 10.21 of this Agreement.
“Event of Default” has the meaning set forth in Article VII of this Agreement.
“Excess Refinancing Indebtedness” has the meaning set forth in Section 6.1(p) of this Agreement.  
“Exchange Act” means the Securities Exchange Act of 1934, as amended or supplemented from time to time, and any successor statute, and all of the rules and regulations issued or promulgated in connection therewith.
“Excluded Assets” has the meaning as set forth in the Security Agreement.
“Excluded Information” means any non-public information with respect to the Borrower or its Subsidiaries or any of their respective securities to the extent such information could have a material effect upon, or otherwise be material to, an assigning Lender’s decision to assign Initial Term Loans or A&R Effective Date Term Loans or a purchasing Lender’s decision to purchase Initial Term Loans or A&R Effective Date Term Loans.

“Excluded Swap Obligation” means, with respect to any Guarantor, (x) as it relates to all or a portion of the Guaranty of such Guarantor, any Swap Obligation if, and to the extent that, such Swap Obligation (or any Guaranty thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the Guaranty of such Guarantor becomes effective with respect to such Swap Obligation or (y) as it relates to all or a portion of the grant by such Guarantor of a security interest, any Swap Obligation if, and to the extent that, such Swap Obligation (or such security interest in respect thereof)  is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the security interest of such Guarantor becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guaranty or security interest is or becomes illegal.
“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Recipient with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Recipient acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 11.2) or (ii) such Recipient changes its lending office, except in each case to the extent that, pursuant to Section 10.11, amounts with respect to such Taxes were payable either to such Recipient's assignor immediately before such Recipient became a party hereto or to such Recipient immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 10.11(b), (c) or (g) and (d) any U.S. federal withholding Taxes imposed under FATCA.
“Executive Order No. 13224” means the Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001, as the same as been, or shall hereafter be, renewed, extended, amended or replaced.
"Existing Credit Agreement" has the meaning set forth in the preamble hereto.
“Expenses Cap” has the meaning set forth in Section 8.1 of this Agreement.
“Extraordinary Restricted Payments” means (i) the purchase, redemption, or retirement for value by the Borrower of any of their respective Securities or the making of special distributions by the Borrower of capital to their respective stockholders not otherwise in the ordinary course of business (specifically excluding any dividends or distributions by the Borrower necessary for it to maintain its status as a REIT) or (ii) voluntary repurchases or prepayments of unsecured Debt (other than in respect of scheduled maturities or principal amortization).
“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code, any intergovernmental agreement entered into in connection 

with the implementation of such Sections of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to such intergovernmental agreement.
“Fixed Charges” means, with respect to the Borrower or any Guarantor at any time, the sum of (a) Debt Service, (b) all preferred dividends that the Borrower or any Guarantor is required, pursuant to the terms of the certificate of designation or other similar document governing the rights of preferred shareholders, to pay and is not permitted to defer, (c) capital lease obligations paid or accrued during such period, and (d) any amounts payable under any ground lease.
“Federal Funds Rate” means, for any day, the rate per annum (rounded upwards, if necessary, to the next 1/100th of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with member banks of the Federal Reserve System, as published by the Federal Reserve Bank of New York on the next succeeding Business Day or if such rate is not so published for any Business Day, the Federal Funds Rate for such day shall be the average rounded upwards, if necessary, to the next 1/100th of 1% of the quotations for such day on such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by the Administrative Agent.
“Federal Reserve Board” means the Board of Governors of the Federal Reserve System or any successor thereto.
 “Fundamental Change” has the meaning set forth in Section 6.5.
“Funding Date” means the date on which any Loan is made by the Lenders.
“Funding Losses” has the meaning set forth in Section 2.5(b)(ii).
“GAAP” means generally accepted accounting principles in the United States of America in effect from time to time.
“Governing Documents” means, with respect to any Person, the certificate or articles of incorporation, by-laws, or other organizational documents of such Person.
“Governmental Authority” means the government of the United States of America or any other nation, or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government, including any supranational bodies such as the European Union or the European Central Bank.
“Grantor” has the meaning ascribed thereto in the Security Agreement.
“Guarantors” has the meaning set forth in the preamble hereto (and each individually, a “Guarantor”). 
“Guaranty” means the Guarantee set forth in Article XII.
“Hazardous Materials” means (a) substances that are defined or listed in, or otherwise classified pursuant to, any applicable laws or regulations as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances,” or any other formulation intended to define, list, or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, toxicity, or “EP toxicity”, (b) oil, petroleum, or petroleum derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids, produced waters, and other wastes associated with the exploration, development, or production of crude oil, natural gas, or geothermal resources, (c) any flammable 

substances or explosives or any radioactive materials, and (d) asbestos in any form, toxic mold, mycotoxins, polychlorinated biphenyls or electrical equipment that contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million.
 “Highest Lawful Rate” means the maximum non-usurious interest rate, as in effect from time to time, that may be charged, contracted for, reserved, received, or collected by a Lender in connection with this Agreement or the other Loan Documents.
“Immaterial Subsidiary” means, at any time, any Subsidiary with a Tangible Net Worth on the last day of the most recently ended Test Period of $10,000,000 or less; provided that, at any time, the aggregate Tangible Net Worth attributable to all Immaterial Subsidiaries shall not exceed $30,000,000.
“Incremental Amendment” has the meaning set forth in Section 2.15(f)(i).
“Incremental Facility Closing Date” has the meaning set forth in Section 2.15(d).
“Incremental Lender” has the meaning set forth in Section 2.15(b).
“Incremental Term Commitments” has the meaning set forth in Section 2.15(a).
“Incremental Term Loan” has the meaning set forth in Section 2.15(c).
“Incremental Term Loan Request” has the meaning set forth in Section 2.15(a).
“Indemnified Liabilities” has the meaning set forth in Section 8.2.
“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.
“Indemnitee” has the meaning set forth in Section 8.2.
“Information” has the meaning set forth in Section 11.10.
“Initial Dispute Notice” has the meaning as set forth in Section 11.5.
“Initial Term Loan” has the meaning set forth in Section 2.1(a)(i).
“Initial Valuation” has the meaning as set forth in Section 11.5.
“Initial Valuation Agent” means Duff & Phelps and its affiliates, or such other broker reasonably acceptable to the Required Lenders in consultation with the Borrower.
 “Insolvency Proceeding” means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under any other state or federal bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization, arrangement, or other similar relief.
“Intercompany Subordination Agreement” means an intercompany subordination agreement executed and delivered by the Borrower, any Affiliate of the Borrower and the Agents, the form and substance of which is reasonably satisfactory to the Agents.
“Interest Coverage Ratio” means, at any date, the ratio of (a) EBITDA to (b) Interest Expense.

“Interest Expense” means, with respect to any Person and for any Test Period, the amount of total interest expense incurred by such Person, including capitalized or accruing interest, leases that are treated as capital leases under GAAP, plus such Person’s proportionate share of interest expense from the joint venture investments and unconsolidated Affiliates of such Person, all with respect to such period.
“Interest Payment Date” means the last day of each Interest Period and the final Maturity Date of such Loan; provided, however, that, if any Interest Period for a Loan is longer than three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates.
“Interest Period” means, with respect to any Loan, the period commencing on the date such Loan is made and ending on the date which is three (3) months thereafter or, with respect to the Loan made on the A&R Effective Date, such shorter period as may be agreed by the Administrative Agent, as selected by the Borrower; provided, however, that no Interest Period may extend beyond the Maturity Date.  Whenever the last day of any Interest Period would otherwise occur on a day other than a Business Day, the last day of such Interest Period shall be extended to occur on the next succeeding Business Day, provided that if such extension would cause the last day of such Interest Period to occur in the next following calendar month, the last day of such Interest Period shall occur on the next preceding Business Day, and any Interest Period which begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month in which it would have ended if there were a numerically corresponding day in such calendar month.
“Interest Rate” shall mean (a)(i) after the A&R Effective Date but on or prior to the 42-month anniversary of the A&R Effective Date, 4.500% per annum, (ii) after the 42-month anniversary of the A&R Effective Date but on or prior to the 45-month anniversary of the A&R Effective Date, 4.625%, (iii) after the 45-month anniversary of the A&R Effective Date but on or prior to the 48-month anniversary of the A&R Effective Date, 4.750%, (iv) after the 48-month anniversary of the A&R Effective Date but on or prior to the 51-month anniversary of the A&R Effective Date, 5.000%, (v) after the 51-month anniversary of the A&R Effective Date but on or prior to the 54-month anniversary of the A&R Effective Date, 5.250%, (vi) after the 54-month anniversary of the A&R Effective Date but on or prior to the 57-month anniversary of the A&R Effective Date, 5.500% and (vii) after the 57-month anniversary of the A&R Effective Date but on or prior to the 60-month anniversary of the A&R Effective Date, 5.750% plus (b) automatically and with written notice of such increase in the interest rate to be provided by the Lenders to the Administrative Agent, after the occurrence or during the continuance of an Event of Default described in Section 7.1(a), Section 7.1(b)(i) but solely as it relates to an Event of Default that has occurred under Section 6.12 (which, for the avoidance of doubt, shall be subject to Section 7.3(a)), Section 7.1(d), Section 7.1(e) and Section 7.1(f), 2.0% per annum, in each case, from the date of such Event of Default or if later, the date specified in any such notice, until such Event of Default is cured or waived.
“Investment” means, as applied to any Person, any direct or indirect purchase or other acquisition by that Person of, or beneficial interest in, stock, instruments, bonds, debentures or other securities of any other Person, or any direct or indirect loan, advance, or capital contribution by such Person to any other Person, including all indebtedness and accounts receivable due from that other Person that did not arise from sales or the rendition of services to that other Person in the ordinary and usual course of such Person’s business, and deposit accounts (including certificates of deposit).
 “IRS” means the United States Internal Revenue Service.
“Lender” means each lender that (a) has a Term Loan Commitment or is the holder of an Initial Term Loan or an A&R Effective Date Term Loan, (b) has a Delayed Draw Term Loan Commitment or is 

the holder of a Delayed Draw Term Loan or (c) has an Incremental Term Commitment or is the holder of an Incremental Term Loan.
“Lender Group” means, individually and collectively, the Lenders and the Agents.
“Lender Group Expenses” has the meaning given in Section 8.1.
“Lender-Related Person” means, with respect to any Lender, such Lender, together with such Lender’s Affiliates, officers, directors, employees, attorneys, and agents.
 “Lien” means any lien, hypothecation, mortgage, pledge, assignment (including any assignment of rights to receive payments of money or any easement, right-of-way, zoning restriction and similar encumbrance on real property) for security, security interest, charge and encumbrance of any kind (including any conditional sale or other title retention agreement, any lease in the nature thereof, and any agreement to give any security interest).
“Loan Account” has the meaning set forth in Section 2.10.
“Loan Documents” means this Agreement, the Security Agreement, any Notes, the Agent Fee Letter, the Negative Pledge Agreement, the Borrower DACA, the Mezz DACA, any other deposit account control agreements, any Bank Product Agreement relating to Bank Product Obligations that are Secured Obligations, any Swap Agreement relating to Swap Obligations that are Secured Obligations, each Intercompany Subordination Agreement and any and all other documents, agreements, or instruments that have been or are entered into by the Borrower or Guarantor, on the one hand, and the Agents, on the other hand, in connection with the transactions contemplated by this Agreement.
“Loan Party” means Borrower or Guarantor, and “Loan Parties” means, collectively, jointly and severally, the Borrower and the Guarantor.
“Loans” has the meaning set forth in Section 2.1(b)(i).
“Margin Securities” means “margin stock” as that term is defined in Regulation U of the Federal Reserve Board.
“Material Adverse Effect” means a material adverse effect on and/or material adverse developments with respect to (a) the business, operations, properties, assets or financial condition of the Borrower and its Subsidiaries taken as a whole; (b) the ability of the Loan Parties, taken as a whole, to fully and timely perform their Obligations or (c) the validity, binding effect or enforceability against any Loan Party of this Agreement or any other Loan Document to which it is a party.
“Material Agreements” means (a) the Loan Documents and (b) any agreements, documents, contracts, indentures and instruments pursuant to which a default, breach or termination thereof could reasonably be expected to result in a Material Adverse Effect.
“Material Modification” means an amendment, waiver, forbearance or other modification to or with respect to any (a) Borrowing Base Eligible Asset or (b) Borrowing Base Subsidiary (or any associated Mortgage Asset), as applicable, that:
(i)    forgives, reduces, waives or forebears from collection one or more payments of principal or interest, or permits any interest payment due in cash to be deferred or capitalized and added to the principal amount of such Borrowing Base Eligible Asset or Mortgage Asset, as applicable (other than as permitted pursuant to the applicable underlying instrument);

(ii)    contractually or structurally subordinates such Borrowing Base Eligible Asset or Mortgage Asset, as applicable (other than pursuant to subordination required under the related documents for such Borrowing Base Eligible Asset or Mortgage Asset, as applicable) by operation of a priority of payments, turnover provisions, consents to the transfer or encumbrance of (or waivers or forbears from exercising rights under any provision restricting transfer or encumbrance of any such Borrowing Base Eligible Asset or Mortgage Asset), as applicable, or to a transfer or encumbrance of assets in order to limit recourse to the related obligor or the granting of liens (other than permitted liens) on any of the collateral securing such Borrowing Base Eligible Asset or Mortgage Asset, as applicable, in a manner that materially and adversely affects the value of such Borrowing Base Eligible Asset or Mortgage Asset, as applicable;
(iii)    substitutes, alters or releases the collateral securing such Borrowing Base Eligible Asset or Mortgage Asset, as applicable (other than as permitted pursuant to the applicable underlying instrument), and each such substitution, alteration or release, as determined in the sole discretion of the Required Agents, materially and adversely affects the value of such Borrowing Base Eligible Asset or Mortgage Asset, as applicable;
(iv)    delays, postpones or extends (A) the maturity date (after giving effect to any contractual rights of extension) for such Borrowing Base Eligible Asset or Mortgage Asset, as applicable or (B) the required scheduled payments in any way that, individually or in the aggregate, increases the weighted average life of such Borrowing Base Eligible Asset or Mortgage Asset, as applicable, by 0.50 years or more; 
(v)    modifications of, waivers of, or forbearances from exercising rights with respect to defaults, events of defaults, grace periods, cure periods, or any financial covenants contained in any of the documents governing such Borrowing Base Eligible Asset or Mortgage Asset to the extent such modification, waiver or forbearance materially and adversely affects the value of such Borrowing Base Eligible Asset or Mortgage Asset, in each case, as a whole, as applicable; 
(vi)    except for any monetary default arising from the occurrence of a maturity date that is permitted to be delayed, postponed, or extended pursuant to clause (iv) above, any waiver of or forbearance from exercising rights with respect to a monetary default involving an amount due under any of the collateral documents to the extent such waiver or forbearance materially and adversely affects the value of such applicable Borrowing Base Eligible Asset or Mortgage Asset, in each case, as a whole; or 
(vii)    amends, waives, forbears, supplements or otherwise modifies (A) the meaning of “Net Operating Income” or any respective comparable definitions in the underlying loan documents for such Borrowing Base Eligible Asset or Mortgage Asset, as applicable or (B) any term or provision of such underlying loan documents referenced in or utilized in the calculation of “Net Operating Income” or any respective comparable definitions for such Borrowing Base Eligible Asset or Mortgage Asset, as applicable, in either case in a manner that is materially adverse to the Lenders.
“Maturity Date” has the meaning set forth in Section 3.3(a).
“Mezz DACA” means the deposit account control agreement to be entered into by and among ACRC Mezz, Bank of America, N.A. and the Collateral Agent respect to ACRC Mezz’s deposit account to be established at Bank of America, N.A.

“Mezzanine Loan” means a whole loan (or interest therein) subordinate to a senior loan that is secured by one or more direct or indirect ownership interests in a Person owning, operating or controlling, directly or indirectly, one or more multi-family or commercial real estate properties that are either fully constructed or undergoing full or partial construction or renovation.
“Mortgage Assets” means any Borrowing Base Eligible Asset that is (a) Senior Commercial Real Estate Loan, (b) Senior Commercial Real Estate Construction Loan, (c) Subordinated Commercial Real Estate Loan or (d) a Preferred Equity Investment. 
“MSR” means current and future agency commercial mortgage servicing rights held by the Borrower and its Subsidiaries.
“Multiemployer Plan” means a Plan that is a “multiemployer plan” as defined in Section 3(37) or Section 4001(a)(3) of ERISA to which any Loan Party or ERISA Affiliate is obligated to make contributions, or during the preceding five (5) plan years, has made or been obligated to make contributions.
“Negative Pledge Agreement” means that certain Negative Pledge Agreement, dated as of the Original Closing Date, among the Borrower, ACRC Lender, the other Negative Pledgors (as defined therein) from time to time party thereto and the Collateral Agent.
“Negative Pledgor Subsidiary” means ACRC Lender.
“Net Income” means, with respect to any Person for any period, the net income of such Person for such period as determined in accordance with GAAP.
“Non-Consenting Lender” has the meaning set forth in Section 11.2.
 “Notes” means any promissory note requested by an Lender evidencing a Loan made under this Agreement.
“Obligations” means all loans (including the Loans), debts, principal, interest (including any interest that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), premiums, liabilities (including all amounts charged to the Borrower’s Loan Account pursuant hereto), obligations (including indemnification obligations), fees, charges, costs, expenses (including Lender Group Expenses) (including any portion thereof that accrues after the commencement of an Insolvency Proceeding, whether or not allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), lease payments, guaranties, covenants, and duties of any kind and description incurred and outstanding by the Borrower to the Lender Group pursuant to or evidenced by the Loan Documents and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all interest not paid when due and all expenses that the Borrower is required to pay or reimburse by the Loan Documents, by law, or otherwise, Bank Product Obligations and Swap Obligations.  Any reference in this Agreement or in the Loan Documents to the Obligations shall include all extensions, modifications, renewals, or alterations thereof, both prior and subsequent to any Insolvency Proceeding.
“OFAC” means the Office of Foreign Assets Control of the U.S. Department of the Treasury.
“OID” means original issue discount.

“OID Amount” means an amount equal to 0.50% of the aggregate principal amount of any Initial Term Loan or Delayed Draw Term Loan, as applicable.
“Original Closing Date” means December 9, 2015.
“Original Credit Agreement” has the meaning set forth in the preamble hereto.
“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising solely from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).
“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 11.2).
“Participant” has the meaning set forth in Section 9.1(d).
“Participant Register” has the meaning set forth in Section 9.1(d).   
“PATRIOT Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), as the same has been, or shall hereafter be, renewed, extended, amended or replaced.
“Payment Date Statement” means the payment date statement to be provided by the Administrative Agent to the Lenders pursuant to Section 10.1, substantially in the form of Exhibit C-1 hereto. 
“Payment Default” means an Event of Default described in Section 7.1(a) hereof.
“PBGC” means the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA (or any successor).
“Pension Act” means the Pension Protection Act of 2006.
“Pension Funding Rules” means the rules of the Code and ERISA regarding minimum funding standards and minimum required contributions (including any installment payment thereof) to a Single Employer Plan or Multiemployer Plan and set forth in, with respect to plan years ending prior to the effective date of the Pension Act, Section 412 of the Code and Section 302 of ERISA, each as in effect prior to the Pension Act and, thereafter, Sections 412, 430, 431 and 436 of the Code and Sections 302,303, 304 and 305 of ERISA.
“Permitted Collateral Liens” means: (a) Liens for taxes, assessments, or governmental charges or claims the payment of which is not, at such time, required by Section 5.5 hereof, (b) any attachment or judgment Lien and Liens incurred to secure any surety bonds, appeal bonds, supersedeas bonds, or other instruments serving a similar purpose in connection with the appeal of any such judgment, in each case, so long as such judgments do not constitute an Event of Default under Section 7.1(h) of the Agreement, (c) banker’s Liens in the nature of rights of setoff arising in the ordinary course of business of the Borrower or any of its Subsidiaries, (d) Liens granted by the Borrower or any of its Subsidiaries to the Collateral 

Agent, for the benefit of the Secured Parties, in order to secure its Obligations under this Agreement and the other Loan Documents and Bank Product Agreements to which it is a party, (e) Liens and deposits in connection with workers’ compensation, unemployment insurance, social security and other legislation affecting the Assets, (f) Liens arising by operation of law in favor of carriers, warehousemen, landlords, mechanics, materialmen, laborers or employees for sums that are not yet delinquent or are being diligently contested in good faith, (g) easements, rights of way, zoning restrictions and similar encumbrances on real property and minor irregularities in the title thereto that do not (i) secure obligations for the payment of money or (ii) materially impair the value of such property or its use by any Loan Party or any of its Subsidiaries in the normal conduct of such Person’s business, (h) leases or subleases granted to other Persons not materially interfering with the conduct of the business of the Borrower or any of its Subsidiaries, (i) Liens in connection with the financing of insurance premiums permitted by Section 6.1(l) provided that such Liens are limited to the applicable unearned insurance premiums, (j) Liens in favor of any escrow agent solely on and in respect of any cash earnest money deposits made by the Borrower or any of its Subsidiaries incurred in the ordinary course of business  and in connection with any letter of intent or purchase agreement (to the extent that the acquisition or disposition with respect thereto is otherwise permitted hereunder), (k) Liens encumbering customary initial deposits and margin deposits, and similar Liens and margin deposits, and similar Liens attaching to commodity trading accounts and other brokerage accounts incurred in the ordinary course of business, (l) Liens deemed to exist as a matter of law in connection with permitted repurchase obligations incurred in the ordinary course of business or set-off rights and (m) Liens in favor of collecting banks arising under Section 4-210 of the UCC. 
“Permitted Debt Certificate” has the meaning set forth in Section 10.12(a)(ii)(A).
“Permitted Liens” means the collective reference to the Liens permitted by Section 6.2.
“Person” means and includes natural persons, corporations, partnerships, limited liability companies, joint ventures, associations, companies, business trusts, or other organizations, irrespective of whether they are legal entities. 
“Plan” means any “employee benefit plan” as defined in Section 3(3) of ERISA which is sponsored, maintained or contributed to by, or required to be contributed to by, the Borrower or any of its ERISA Affiliates or with respect to which the Borrower or any of its ERISA Affiliates has or could reasonably be expected to have liability, contingent or otherwise, under ERISA.
“Pledged Equity Interests” has the meaning set forth in the Security Agreement.
“Pledged Securities” has the meaning set forth in the Security Agreement.
“Post-A&R Effective Date Equity Issuance” has the meaning set forth in Section 6.1(t).
“Preferred Equity Investment” means a direct or indirect preferred equity ownership interest in a Person owning, operating or controlling, directly or indirectly, one or more multi-family or commercial real estate properties that are either fully constructed or undergoing full or partial construction or renovation.
“Prepayment Premium” means, as of the date of any applicable prepayment, (i) after the A&R Effective Date but on or prior to the Yield Maintenance Date, the greater of (x) 1.0% of the outstanding principal amount of the Loans and (y) the sum of the respective present values (computed as of the date of prepayment) of the remaining scheduled payments (assuming such payments are made as scheduled) of principal and interest with respect to the portion of the Loans prepaid prior to the Yield Maintenance Date (assuming no prepayments or acceleration of the Loans ahead of the Yield Maintenance Date and all remaining principal amount on the Loans on the Yield Maintenance Date is paid in a single balloon 

payment on the Yield Maintenance Date), determined by discounting such payments to the date on which such prepayment is made at a rate, when compounded monthly, is equivalent to the Treasury Constant Yield  when compounded semi-annually and (ii) thereafter, zero.
 “Pro Rata Share” means, as of any date of determination, with respect to a Lender’s obligation to make Loans and receive payments of principal, interest, fees, costs, and expenses or other amounts with respect thereto, the percentage obtained by dividing (y) the aggregate outstanding principal amount of such Lender’s Loans by (z) the aggregate outstanding principal amount of all Loans; provided, that if at the time of such determination, all Loans have been paid-in-full, then such determination shall be based on the outstanding principal amount of the Loans as of the next preceding Business Day prior to the last date on which any Loans were outstanding. 
“Purchase Money Obligation” shall mean, for any Person, the obligations of such Person in respect of Debt (including Capitalized Lease Obligations) incurred for the purpose of financing all or any part of the purchase price of any fixed or capital assets or the cost of installation, construction or improvement of any fixed or capital assets; provided, however, that (i) such Debt is incurred within 90 days after such acquisition, installation, construction or improvement of such fixed or capital assets by such Person and (ii) the amount of such Debt does not exceed the lesser of 100% of the fair market value of such fixed or capital asset or the cost of the acquisition, installation, construction or improvement thereof, as the case may be.
“Proceeds” shall mean all “proceeds” as such term is defined in Section 9-102(a)(64) of the UCC and, in any event, shall include, without limitation, all dividends or other income from the Pledged Securities, collections thereon and distributions or payments with respect thereto.
“Reaffirmation Agreement” means that certain reaffirmation agreement, dated as of November 12, 2021, by and among the Borrower, the Guarantors and ACRC Lender in favor of the Collateral Agent.
“Recipient” means any Agent and any Lender, as applicable.
“Register” has the meaning set forth in Section 9.1(c).
“Regulation T” means Regulation T of the Board of Governors as in effect from time to time.
“Regulation U” means Regulation U of the Board of Governors as in effect from time to time.
“Regulation X” means Regulation X of the Board of Governors as in effect from time to time.
“REIT” has the meaning set forth in Section 6.4.
“Removal Event” shall have occurred in respect of a Person then serving as an Agent under this Agreement if a court of competent jurisdiction shall have determined that such Person, or any of its officers, directors, employees or agents, or other persons under its direction or control, shall have engaged in any actions or omissions that constitute gross negligence, willful misconduct or fraud in connection with the performance of its obligations under this Agreement as Agent and such actions or omissions have a material adverse effect on the Lenders or if an Insolvency Proceeding has commenced with respect to an Agent.
“Report” has the meaning set forth in Section 10.17(a).
“Request for Borrowing” means an irrevocable written notice from any of the individuals identified on Exhibit R-1 attached hereto (or, in certain cases, two of such individuals, all as set forth in 

further detail in Exhibit R-1 attached hereto) to the Administrative Agent of the Borrower’s request for a Loan, which notice shall be substantially in the form of Exhibit R-2 attached hereto.
“Required Agents” means, at any time, either Agent acting at the direction of the Required Lenders. 
“Required Lenders” means, at any time, (a) Lenders holding 100% of the aggregate amount of the Loans and the Delayed Draw Term Loan Commitments then in effect plus unpaid principal balance of the Loans then outstanding at any time there are two or fewer Lenders and (b) Lenders holding more than 50% of the aggregate amount of the Loans and the Delayed Draw Term Loan Commitments then in effect plus unpaid principal balance of the Loans then outstanding at any time there are three or more Lenders; provided that, for purposes of determining whether there are two or fewer or three or more Lenders at any time, Affiliates and Approved Funds of any Lender shall, collectively, be deemed to be one Lender. 
“Resignation Effective Date” has the meaning set forth in Section 10.9(a).
“Responsible Officer” means the president, chief executive officer, chief operating officer, chief financial officer, secretary, general counsel, vice president, manager, treasurer or controller of a Person, or such other officer of such Person designated by a Responsible Officer in a writing delivered to the Agents.
“Restricted Asset” has the meaning ascribed thereto in the Negative Pledge Agreement.
“Sanctioned Country” means, at any time, a country, region or territory that is subject to any country-wide or territory-wide Sanctions.
“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b).
“Sanctions” means all economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State or (b) the United Nations Security Council.
“SEC” means the Securities and Exchange Commission of the United States of America or any successor thereto.
“Second Valuation” has the meaning as set forth in Section 11.5.
“Second Valuation Agent” means any independent broker (other than the Initial Valuation Agent) acceptable to the Borrower undertaken to determine the Second Valuation.
“Secured Obligations” means all Obligations; provided that, notwithstanding anything to the contrary, the Secured Obligations shall exclude (i) any Excluded Swap Obligations and (ii) Bank Product Obligations with respect to any Bank Product Agreement and Swap Obligations with respect to any Swap Agreement, in each case, entered into with any counterparty that was not a Lender or an Affiliate of a Lender on the date of entry into such Bank Product Agreement or Swap Agreement.
“Secured Parties” has the meaning set forth in the Security Agreement.
“Securities” means the capital stock, membership interests, partnership interests (whether limited or general) or other securities or equity interests of any kind of a Person, all warrants, options, convertible 

securities, and other interests which may be exercised in respect of, converted into or otherwise relate to such Person’s capital stock, membership interests, partnership interests (whether limited or general) or other equity interests and any other securities, including debt securities of such Person.
“Securitization Entity” has the meaning defined in the definition of “Securitization Transaction.”
“Securitization Indebtedness” means (a) indebtedness of any Subsidiaries of the Borrower incurred pursuant to on-balance sheet Securitization Transactions treated as financings and (b) any indebtedness or other securities issued by a Securitization Entity or a Subsidiary of the Borrower pursuant to a Securitization Transaction, which, in each case, is non-recourse to the Borrower (except for customary representations, warranties, covenants, indemnities and other agreements made or given by the Borrower, or made or given by a Subsidiary of the Borrower and guaranteed by the Borrower, in connection with a Securitization Transaction).
“Securitization Transaction” means a public or private transfer, sale or financing of servicing advances and/or mortgage loans, installment contracts, other loans and any other financial asset capable of being securitized by which the Borrower or any of its Subsidiaries directly or indirectly securitizes a pool of specified financial assets including, without limitation, any such transaction involving the sale of specified servicing advances or mortgage loans (directly or through a depositor) to a special purpose entity (a “Securitization Entity”) established for the purpose of issuing asset-backed or mortgaged-backed or mortgage pass-through securities of any kind.
“Security Agreement” means that certain Pledge and Security Agreement, dated as of the Original Closing Date, among Borrower, the Guarantors, ACRC Lender, the other Grantors from time to time party thereto and the Collateral Agent.
“Senior Commercial Real Estate Construction Loan” means a whole loan (or senior or pari passu interest therein) made to finance the construction of multi-family or commercial real estate properties and secured by a mortgage thereon, which loan is not subordinate in right of payment to any separate loan secured by the same property.
“Senior Commercial Real Estate Loan” means a whole loan (or senior or pari passu interest therein) secured by a mortgage on multi-family or commercial real estate properties, which loan is not subordinate in right of payment to any separate loan secured by the same property; provided, that a Senior Commercial Real Estate Construction Loan shall not constitute a Senior Commercial Real Estate Loan.
“Single Employer Plan” means any Plan that is covered by Title IV of ERISA or the Pension Funding Rules, but which is not a Multiemployer Plan.
“Solvent” means, with respect to any Person, as of any date of determination, (a) the amount of the “present fair saleable value” of the assets of such Person will, as of such date, exceed the amount of all “liabilities of such Person, contingent or otherwise,” as of such date, (b) the “present fair saleable value” of the assets of such Person will, as of such date, be greater than the amount that will be required to pay the liability of such Person on its debts as such debts become absolute and matured, (c) such Person will not have, as of such date, an unreasonably small amount of capital with which to conduct its business, (d) such Person will be able to pay its debts as they mature and (e) such Person is not insolvent within the meaning of any applicable requirements of law.  For purposes of this definition, (i) “debt” shall mean liability on a “claim,” (ii) “claim” shall mean any (A) right to payment, whether or not such a right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured or (B) right to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured or unmatured, disputed, undisputed, secured or 

unsecured and (iii) such other quoted terms used in this definition shall be determined in accordance with applicable federal and state laws governing determinations of the insolvency of debtors.
“Specified Third Party Securitization” means any securitization transaction that was not established or sponsored by Borrower or any of its Affiliates. 
“Stock” means all shares, options, warrants, interests, participations, or other equivalents (regardless of how designated) of or in a Person, whether voting or nonvoting, including common stock, preferred stock, or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under the Exchange Act). 
“Subordinated Commercial Real Estate Loan” means (1) a whole loan (or interest therein) secured by a mortgage on multi-family or commercial real estate properties, which loan is subordinate in right of payment to one or more separate loans secured by the same applicable property, (2) a subordinate interest in a Senior Commercial Real Estate Loan or a Senior Commercial Real Estate Construction Loan (including, without limitation, a B Note) or (3) a Mezzanine Loan secured with a pledge of 100% of the property owner’s membership interests in the related obligor and subject to a commercially reasonable intercreditor arrangement on market terms with the senior lender; provided, that for the avoidance of doubt, a Preferred Equity Investment shall not constitute a Subordinated Commercial Real Estate Loan.
“Subsidiary” means, with respect to any Person, any corporation, partnership, association, joint venture, limited liability company or other entity (heretofore, now or hereafter established) of which at least a majority of the securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or other persons performing similar functions of such corporation, partnership, limited liability company or other entity (without regard to the occurrence of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person, and shall include all Persons the accounts of which are consolidated with those of such Person pursuant to GAAP; provided that no issuer of a Specified Third Party Securitization shall be considered a “Subsidiary” of Borrower or any of its Affiliates.
“Swap Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of any of the Loan Parties shall be a Swap Agreement.
“Swap Obligations” means any and all obligations of any Loan Party, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under (a) any and all cancellations, buy backs, reversals, terminations or assignments of any such Swap Agreement transaction and (b) any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.  
“Tangible Net Worth” means with respect to any Person and any date, all amounts that would be included under capital or shareholder's equity (or any like caption) on the balance sheet of such Person, minus (a) amounts owing to that Person from any Affiliate thereof, or from officers, employees, partners, members, directors, shareholders or other Persons similarly affiliated with such Person or any Affiliate thereof, (b) intangible assets, and (c) prepaid taxes and/or expenses, plus deferred origination fees, net of 

deferred origination costs, all on or as of such date; provided that “Tangible Net Worth” shall be determined without regard to the effects of consolidation of any issuer of a Specified Third Party Securitization on the financial statements of such Person under Accounting Standards Codification Section 810, as amended, modified or supplemented from time to time, or otherwise under GAAP. For sake of clarity, mortgage servicing rights shall not be deemed to be intangible assets.
“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.
“Term Loan Commitment” means, as to any Lender, the obligation of such Lender, if any, to make an Initial Term Loan or an A&R Effective Date Term Loan, as applicable, to the Borrower hereunder in a principal amount not to exceed the amount set forth under the heading “Term Loan Commitment” opposite such Lender’s name on Annex A-1 or, as the case may be, in the Assignment and Acceptance pursuant to which such Lender became a party hereto, as the same may be changed from time to time pursuant to the terms hereof.  The aggregate principal amount of the Term Loan Commitments on the A&R Effective Date is $100,000,000.
“Term Loan Facilities” has the meaning set forth in the definition of “Credit Facilities”.
“Term Loan Increase” has the meaning set forth in Section 2.15(a).
“Term Loan Maturity Date” means (a) with respect to the Initial Term Loans, the Delayed Draw Term Loans and the A&R Effective Date Term Loan, the Maturity Date and (b) with respect to any Incremental Term Loans, the final maturity date as specified in the applicable Incremental Amendment; provided that, if any such day is not a Business Day, the applicable Term Loan Maturity Date shall be the Business Day immediately succeeding such day.
“Test Period” means the time period from the first day of each fiscal quarter, through and including the last day of such fiscal quarter.
“Third Valuation” has the meaning as set forth in Section 11.5.
“Third Valuation Agent” means any independent broker (other than the Initial Valuation Agent and the Second Valuation Agent) acceptable to the Borrower and the Required Lenders undertaken to determine the Third Valuation.
“Total Net Leverage Ratio” means, at any date, the ratio of (a) aggregate outstanding consolidated Debt of the Borrower and its Subsidiaries (net of any unrestricted cash and Cash Equivalents and Warehousing Debt secured by loans available for sale) on such date to (b) consolidated Tangible Net Worth of the Borrower and its Subsidiaries for the most recently ended Test Period.
“Transactions” means collectively, the transactions to occur on or prior to the Original Closing Date including the execution, delivery and performance of the Loan Documents entered into on the Original Closing Date, the initial borrowings thereunder and the use of proceeds thereof.
“Treasury Constant Yield” means the arithmetic mean of the rates published as “Treasury Constant Maturities” as of 5:00 p.m. (Eastern time), for the five (5) Business Days preceding the date on which acceleration has been declared, or, as applicable, the date on which a prepayment subject to a Prepayment Premium pursuant to this Agreement is made, as shown on the USD screen of Reuters (or such other page as may replace that page on that service, or such other page or replacement therefor on any successor service), or if such service is not available, the Bloomberg Service (or any successor service), or if neither 

Reuters nor the Bloomberg Service is available, under Section 504 in the weekly statistical release designated H.15(519) (or any successor publication) published by the Board of Governors of the Federal Reserve System, for “On the Run” United States Treasury obligations with a term corresponding to the period beginning on the date of prepayment and ending on the Yield Maintenance Date.  If no such maturity shall so exactly correspond, yields for the two most closely corresponding published maturities shall be calculated pursuant to the foregoing sentence and the Treasury Constant Yield shall be interpolated or extrapolated (as applicable) from such yields on a straight-line basis (rounding, in the case of relevant periods, to the nearest month).
“Triple Net Leased Property” means any real property that is the subject of a lease with a at least a seven (7) year term pursuant to which a single tenant of such property is responsible for net real estate taxes, net building insurance, and net common area maintenance relating to the real property (in addition to the rental fee). 
“Trustee”: means Wilmington Trust, National Association, as  Grantor Trust Trustee under the Trust Agreement. 
“Trustee Fee”: means, for so long as Wilmington Trust, National Association acts as Trustee pursuant to the Trust Agreement, the fee to be paid monthly by the Borrower in advance to Wilmington Trust, National Association, as compensation for services rendered by it in its capacity as Grantor Trust Trustee under the Trust Agreement and if a replacement Trustee is appointed pursuant to the Trust Agreement, the fees of such trustee, so long as such fee is reasonable and commercially accepted for trustees providing similar services in similar transactions.
“Trust Agreement” for so long as the Lenders under this Agreement are entities managed by J.P. Morgan Investment Management, Inc., that certain Trust Agreement, dated as of the date of December 22, 2017 between ACRC TL 2017 LLC and Wilmington Trust, National Association. 
“UCC” means the New York Uniform Commercial Code as in effect from time to time.
“Unencumbered Asset Ratio” means, at any date, the ratio of (a) the sum of (i) the Assigned Value of the Borrowing Base Eligible Assets comprised of Senior Commercial Real Estate Loans and Senior Commercial Real Estate Construction Loans that are not encumbered by a Lien other than Permitted Liens plus (ii) the Assigned Value of other Borrowing Base Eligible Assets that are not encumbered by a Lien other than Permitted Liens to (b) the aggregate principal amount of funded and outstanding Loans.
“Updated Valuation” has the meaning set forth in Section 11.5.
“VAE” means with respect to (a) any Borrowing Base Eligible Asset or (b) in the case of a Borrowing Base Eligible Asset that is comprised of Securities in a Borrowing Base Subsidiary, one or more related Mortgage Assets, as applicable, the occurrence of any of the following:
(i)    any payment default or any other default(s) (in each case, after giving effect to any applicable grace, cure or notice periods in accordance with the underlying loan documents) that, in the case of a non-payment default, could, individually or in the aggregate, reasonably be expected to materially and adversely affect value of such Borrowing Base Eligible Asset or Mortgage Asset as a whole;
(ii)    an insolvency event with respect to an underlying borrower;
(iii)    the loan to value percentage is greater than 90%;

(iv)    for any Subordinated Commercial Real Estate Loan or Preferred Equity Investment, the first lien loan to value is greater than 80%; 
(v)    for any Mortgage Assets held by a Borrowing Base Debt Subsidiary, the aggregate outstanding principal balance of the associated Warehousing Debt, Securitization Indebtedness or other debt exceeds 90% of the aggregate outstanding principal balance of all Mortgage Assets of such Borrowing Base Debt Subsidiary; 
(vi)    the occurrence of a Material Modification with respect to such Borrowing Base Eligible Asset or Mortgage Asset, as applicable; and
(vii)    a default (after giving effect to any applicable grace, cure or notice periods as such periods may be extended with the approval of the applicable counterparties to such Warehousing Debt) that occurs under any Warehousing Debt or Securitization Indebtedness for which a Borrowing Base Debt Subsidiary is a sponsor, issuer or borrower that results in a Material Adverse Effect on the value of such Borrowing Base Debt Subsidiary as a whole.
“Valuation Confirmation Process” has the meaning as set forth in Section 11.5.
“Valuation Report” has the meaning as set forth in Section 11.5.
“Warehousing Debt” means any warehouse, purchase, repurchase, participation or other similar financing facility extended by a lender or repo buyer to the Borrower or a Subsidiary thereof to finance the funding, acquisition or ownership of (a) Senior Commercial Real Estate Loans, (b) Senior Commercial Real Estate Construction Loan, (c) Subordinated Commercial Real Estate Loan, (d) Mezzanine Loans or (e) mortgage loans, mortgaged-backed or mortgage pass-through securities or other mortgage-related assets of any kind, but only for such time as the foregoing remain financed under such facility.
“Weighted Average Life to Maturity” means, when applied to any Debt at any date, the number of years obtained by dividing:  (a) the sum of the products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof, by (ii) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by (b) the then outstanding principal amount of such Debt.
“Withdrawal Liability” means any liability to a Multiemployer Plan as a result of a “complete withdrawal” or “partial withdrawal” from such Multiemployer Plan, as such terms are defined in Section 4201(b) of ERISA.
“Withholding Agent” means any Loan Party and any Agent.
“Yield Differential” has the meaning set forth in Section 2.15(e)(ii).
“Yield Maintenance Date” means the 36-month anniversary of the A&R Effective Date
1.2  Construction.  Unless the context of this Agreement clearly requires otherwise, references to the plural include the singular and to the singular include the plural, the part includes the whole, the term “including” is not limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.” References in this Agreement to a “determination” or “designation” include estimates by the Agents (in the case of quantitative determinations or designations), and beliefs by the Agents (in the case of qualitative determinations or designations).  The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement refer to this Agreement as a whole and not to 

any particular provision of this Agreement.  Article, section, subsection, clause, exhibit, and schedule references are to this Agreement unless otherwise specified.  Any reference herein to this Agreement or any of the Loan Documents includes any and all alterations, amendments, restatements, changes, extensions, modifications, renewals, or supplements thereto or thereof, as applicable, made in accordance with the terms hereof or thereof.  Any reference herein or in any other Loan Document to the satisfaction or repayment in full of the Obligations, any reference herein or in any other Loan Document to the Obligations being “paid in full” or “repaid in full” (except as set forth in Section 2.3(a)(v)), and any reference herein or in any other Loan Document to the action by any Person to repay the Obligations in full, shall mean the repayment in full in cash in Dollars of all Obligations other than contingent indemnification Obligations as to which no claim has been asserted or is anticipated and other than any Bank Product Obligations that, at such time, are allowed by the applicable Bank Product Provider to remain outstanding and are not required to be repaid or cash collateralized pursuant to the provisions of this Agreement.  All payments hereunder or any other Loan Document in respect of the Obligations shall be made in Dollars.
1.3  Accounting Terms; GAAP; Pro Forma Calculations.  (a) Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies Agents that the Borrower wishes to amend any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if any Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then the Borrower’s (and the Guarantor’s, as applicable) compliance with such provision shall be determined on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.
ARTICLE II
AMOUNT AND TERMS OF LOANS
2.1    Credit Facilities.  Subject to the terms and conditions of this Agreement:
(a) Term Loan Facility. 
(i) Each Lender as of the Original Closing Date made an Initial Term Loan (the “Initial Term Loan”) to the Borrower on the Original Closing Date in an amount equal to the Term Loan Commitment of such Lender as of the Original Closing Date, which Initial Term Loan was funded net of the OID Amount.  
(ii) Each Lender as of the date hereof agrees, severally and not jointly, to make an additional loan in an aggregate principal amount of $100,000,000 (the “A&R Effective Date Term Loan Commitment” and, the loan thereunder, the “A&R Effective Date Term Loan”) to the Borrower on the A&R Effective Date, which such A&R Effective Date Term Loan shall be funded inclusive of the OID Amount with respect to the A&R Effective Date Term Loan Commitment and the Delayed Draw Term Loan Commitment, and the Borrower shall promptly pay on the A&R Effective Date to each Lender its pro rata share of the OID Amount in accordance with the flow of funds. Notwithstanding the foregoing, all calculations of interest and fees in respect of the A&R Effective Date Term Loan will be calculated on the basis of their full stated principal amount. No later than 2:00 p.m. on the A&R Effective Date, each Lender shall make available to the Administrative Agent to the account of the Administrative Agent an amount in immediately available funds equal to the A&R Effective Date Term Loan to be made by such Lender. Upon receipt of all requested 

funds, the Administrative Agent shall make the proceeds of the A&R Effective Date Term Loan available to the Borrower on the A&R Effective Date by wiring all such proceeds of the A&R Effective Date Term Loan to the account of the Borrower or to such other account as may be designated in writing to the Administrative Agent by the Borrower.
(iii) The Borrower may make only one borrowing under the A&R Effective Date Term Loan Commitment pursuant to Section 2.1(a)(ii), which shall be on the A&R Effective Date. Any amount borrowed under this Section 2.1(a) and subsequently repaid or prepaid may not be reborrowed. Subject to Section 2.7 and Section 2.8, all amounts owed hereunder with respect to the Initial Term Loans and the A&R Effective Date Term Loans shall be paid in full no later than the Maturity Date. Each Lender’s A&R Effective Date Term Loan Commitment shall terminate immediately and without further action on the A&R Effective Date after giving effect to the deemed funding of such Lender’s A&R Effective Date Term Loan Commitment on the A&R Effective Date.
(iv) The terms and provisions of the A&R Effective Date Term Loan shall be identical to those of the Initial Term Loans and shall rank pari passu in right of payment and in respect of the Collateral with the Initial Term Loans.  
(v) With effect from the A&R Effective Date, the A&R Effective Date Term Loan shall be an “Incremental Term Loan and a “Term Loan” and the related Lenders shall be a Lender with an outstanding Term Loan.
(vi) For all purposes under this Agreement and the other Loan Documents, (i) the A&R Effective Date Term Loan Commitment will constitute Commitments, Term Loan Commitments and Incremental Term Loan Commitments, (ii) the A&R Effective Date Term Loan will constitute Loans, Term Loans and Incremental Term Loans, (iii) the related Lender will be a Lender and (iv) the A&R Effective Date Term Loan and the Term Loans funded under the Existing Credit Agreement prior to the A&R Effective Date shall collectively constitute the one and the same Class of Term Loans.
(b)  Delayed Draw Term Loan Facility.  
(i) Each Delayed Draw Term Loan Lender agrees, severally and not jointly, to make Delayed Draw Term Loans (the “Delayed Draw Term Loans” and, together with the Initial Term Loan and any Incremental Term Loans, as applicable, collectively, the “Loans”) to the Borrower pursuant to Section 2.12 on the last day of any Interest Period during the Delayed Draw Availability Period, in an aggregate principal amount not to exceed at any time the Delayed Draw Term Loan Commitments in effect at such time.  Notwithstanding the foregoing, all calculations of interest and fees in respect of the Delayed Draw Term Loans will be calculated on the basis of their full stated principal amount.
(ii) Amounts paid or prepaid in respect of Delayed Draw Term Loans may not be reborrowed. All unused Delayed Draw Term Loan Commitments shall automatically terminate at 5:00 p.m. (Eastern Time) on the last Business Day of the Delayed Draw Availability Period, to the extent such amount of Delayed Draw Term Loan Commitments is not funded prior to such time. 
(iii) Notwithstanding anything herein to the contrary, following the A&R Effective Date, the Borrower shall have, and the Delayed Draw Term Lenders shall provide, no more than two drawings of Delayed Draw Term Loans, each in an amount at least equal to $25,000,000, but not to exceed $25,000,000 per each drawing and not to exceed $50,000,000 in the aggregate, in each case, subject to the conditions set forth in Section 2.12.

2.2    [Reserved].  
2.3    Interest Rates; Payment of Principal and Interest.
(a) Borrower shall make each payment due hereunder by making, or causing to be made in Dollars in immediately available funds, the amount thereof available to Agent’s Account, not later than 1:00 p.m. (Eastern Time), on the date of payment, for the account of the Lender Group.  All payments received by the Administrative Agent after 1:00 p.m. (Eastern Time), may be deemed received on the next Business Day (in the Administrative Agent’s sole discretion) and any applicable interest shall continue to accrue.
(i)  Unless the Administrative Agent receives notice from Borrower prior to the date on which any payment is due to the Lenders that the Borrower will not make such payment in full in Dollars in immediately available funds as and when required, the Administrative Agent may assume that the Borrower has made (or will make) such payment in full to the Administrative Agent on such date in Dollars in immediately available funds and the Administrative Agent may (but shall not be so required), in reliance upon such assumption, distribute to each Lender on such due date an amount equal to the amount then due such Lender.  
(ii)  Except as otherwise provided with respect to Defaulting Lenders, aggregate principal and interest payments shall be apportioned among the Lenders in accordance with their Pro Rata Share and applied thereto and payments of fees and expenses (other than fees or expenses that are for the Administrative Agent's separate account, after giving effect to any agreements between the Agents and individual Lenders) shall be apportioned ratably among the Lenders in accordance with Section 2.17.  All payments shall be remitted to the Agents and all such payments, and all Proceeds of Collateral received by the Agents, shall be applied as follows:
(A) first, to pay any fees and Lender Group Expenses then due to the Agents under the Loan Documents, until paid in full,
(B) second, upon written notice from Borrower of the amounts to be paid and to whom such payments should be made, to pay any Bank Product Obligations that are Secured Obligations as cash collateral in an amount up to the amount determined by the applicable Bank Product Provider, in its reasonable discretion, as the amount necessary to secure Borrower’s or its Subsidiaries’ Bank Product Obligations that remain outstanding, until paid in full, 
(C) third, to pay any fees and Lender Group Expenses then due to the Lenders (other than Defaulting Lenders) under the Loan Documents, on a ratable basis, until paid in full,
(D) fourth, ratably to pay interest due to the Lenders (other than Defaulting Lenders) in respect of the Loans until paid in full,
(E) fifth, to pay the principal of all Loans then due to the Lenders (other than Defaulting Lenders) until paid in full, 
(F) sixth, to pay any other Obligations owed to Lenders (other than Defaulting Lenders), until paid in full, 
(G) seventh, to pay any Obligations owed to Defaulting Lenders until paid in full, and

(H) eighth, to the Borrower (to be wired to the Designated Account) or such other Person entitled thereto under applicable law.
(iii) the Administrative Agent promptly shall distribute to each Lender, pursuant to the applicable wire instructions received from each Lender in writing, such funds as it may be entitled to receive.
(iv) For purposes of the foregoing, “paid in full” means payment of all amounts owing under the Loan Documents according to the terms thereof, including loan fees, service fees, professional fees, interest (and specifically including interest accrued after the commencement of any Insolvency Proceeding), default interest, interest on interest, and expense reimbursements, whether or not any of the foregoing would be or is allowed or disallowed in whole or in part in any Insolvency Proceeding, other than contingent indemnification Obligations as to which no claim has been asserted or is anticipated and other than any Bank Product Obligations that, at such time, are allowed by the applicable Bank Product Provider to remain outstanding and that are not required by the provisions of this Agreement to be repaid or cash collateralized.
(v) In the event of a direct conflict between the priority provisions of this Section 2.3 and other provisions contained in any other Loan Document, it is the intention of the parties hereto that such priority provisions in such documents shall be read together and construed, to the fullest extent possible, to be in concert with each other.  In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this 

Section 2.3 shall control and govern.

(b) Each Loan shall bear interest upon the unpaid principal balance thereof, from the date advanced or continued, at a rate, per annum, equal to the lesser of (i) Interest Rate and (ii) the Highest Lawful Rate.  Interest due with respect to each Loan shall be due and payable, in arrears, on each Interest Payment Date applicable to that Loan and on the Maturity Date.  .  
(c) Unless prepaid in accordance with the terms hereof, the outstanding principal balance of all Loans, together with accrued and unpaid interest thereon, shall be due and payable, in full, on the Maturity Date.
(d) Any Lender by written notice to the Borrower (with a copy to the Agents) may request that Loans made by it be evidenced by a promissory note.  In such event, the Borrower shall execute and deliver to such Lender a promissory note, substantially in the form of Exhibit A-2 payable to such Lender (or, if requested by such Lender, to such Lender and its registered assigns).  Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.1) be represented by one or more promissory notes in such form payable to the payee named therein (or to such payee and its registered assigns).  For the avoidance of doubt, assignments of any Loans by Lenders (irrespective of whether promissory notes are issued hereunder) shall be in accordance with the provisions of Section 9.1 of this Agreement. 
2.4  Computation of Interest and Fees; Maximum Interest Rate.
(a) All computations of interest with respect to the Loans and computations of the fees due hereunder for any period shall be calculated on the basis of a year of 360 days for the actual number of days elapsed in such period.  Interest shall accrue from the first day of the making of a Loan (or the date on which interest or fees or other payments are due hereunder, if applicable) to (but not including) the date of repayment of such Loan (or the date of the payment of interest or fees or other payments, if applicable) in accordance with the provisions hereof.

(b) Anything to the contrary contained in this Agreement notwithstanding, the Borrower shall not be obligated to pay, and the Agents shall not be entitled to charge, collect, receive, reserve, or take interest (it being understood that interest shall be calculated as the aggregate of all charges which constitute interest under applicable law that are contracted for, charged, reserved, received, or paid) in excess of the Highest Lawful Rate.  During any period of time in which the interest rates specified herein exceed the Highest Lawful Rate, interest shall accrue and be payable at such Highest Lawful Rate; provided, however, that, if the interest rate otherwise applicable hereunder declines below the Highest Lawful Rate, interest shall continue to accrue and be payable at the Highest Lawful Rate (so long as there remains any unpaid principal with respect to the Loans) until the interest that has been paid hereunder equals the amount of interest that would have been paid if interest had at all times accrued and been payable at the applicable interest rates otherwise specified in this Agreement.  For purposes of this Section 2.4, the term “applicable law” shall mean that law in effect from time to time and applicable to this loan transaction which lawfully permits the charging and collection of the highest permissible, lawful, non-usurious rate of interest on such loan transaction and this Agreement, including laws of the State of New York and, to the extent controlling or the laws of the United States of America.
2.5  Request for Borrowing.
(a)  Each Loan shall be made on a Business Day.
(b)  Each Loan that is proposed to be made after the A&R Effective Date shall be made upon written notice, by way of a Request for Borrowing, which Request for Borrowing shall be irrevocable and shall be given by telefacsimile, mail, electronic mail (in a format bearing a copy of the signature(s) required thereon), or personal service, and delivered to the Administrative Agent at the address provided in Exhibit 11.3, by the Borrower giving  the Administrative Agent notice at least ten (10) Business Days before the date the Loan is to be made, and such notice shall specify that a Loan is requested and state the amount and Interest Period thereof (subject to the provisions of this Article II).  
(c)  If the notice provided for in clause (b) of this Section 2.5 with respect to a Loan is received by the Administrative Agent not later than 1:00 p.m. (Eastern Time), on a Business Day, such day shall be treated as the first Business Day of the required notice period.  In any other event, such notice will be treated as having been received immediately before 1:00 p.m. (Eastern Time) of the next Business Day and such day shall be treated as the first Business Day of the required notice period.
(d)  Promptly after receipt of a Request for Borrowing pursuant to Section 2.5(b), the Administrative Agent shall notify the Lenders, not later than 4:00 p.m. (Eastern Time) on the tenth Business Day preceding the Funding Date, by telecopy, electronic mail (in a format bearing a copy of the signature(s) required thereon) or other similar form of transmission, of the requested Loan.  Each Lender shall make the amount of such Lender’s Pro Rata Share of the requested Loan available to the Administrative Agent in immediately available funds, to Agent’s Account, not later than 1:00 p.m. (Eastern Time) on the Funding Date applicable thereto.  After the Administrative Agent’s receipt of all the proceeds of such Loans, the Administrative Agent shall make the proceeds thereof available to the Borrower on the applicable Funding Date by transferring to the Designated Account immediately available funds equal to the proceeds that are requested by the Borrower to be sent to the Borrower in the applicable Request for Borrowing or apply such proceeds (after the deduction of the OID Amount) as directed by the Borrower.
(e)  Unless the Administrative Agent receives notice from a Lender, prior to 12:00 p.m. (Eastern Time) on the date of such Loan, that such Lender will not make available as and when required hereunder to the Administrative Agent for the account of the Borrower the amount of that Lender’s Pro Rata Share of the Loan, the Administrative Agent may assume that each Lender has made or will make such amount available to the Administrative Agent in immediately available funds on the Funding Date and the 

Administrative Agent may (but shall not be so required), in reliance upon such assumption, make available to the Borrower on such date a corresponding amount.  If and to the extent any Lender (other than the Administrative Agent) shall not have made its full amount available to the Administrative Agent in immediately available funds and the Administrative Agent in such circumstances has made available to the Borrower such amount, that Lender shall on the Business Day following such Funding Date make such amount available to the Administrative Agent, together with interest at the Defaulting Lender Rate for each day during such period.  A notice submitted by the Administrative Agent to any Lender with respect to amounts owing under this subsection shall be conclusive, absent manifest error.  If such amount is so made available, such payment to the Administrative Agent shall constitute such Lender’s Loan on the date of such Loan for all purposes of this Agreement.  If such amount is not made available to the Administrative Agent on the Business Day following the Funding Date, the Administrative Agent will notify Borrower of such failure to fund and, upon demand by the Administrative Agent, the Borrower shall pay such amount to the Administrative Agent for the Administrative Agent’s account, together with interest thereon for each day elapsed since the date of such Loan, at a rate per annum equal to the interest rate applicable at the time to the Loans composing such Loan, without in any way prejudicing the rights and remedies of the Borrower against the Defaulting Lender.    
(f)  Notwithstanding the provisions of Section 2.3(a)(ii), the Administrative Agent shall not be obligated to transfer to a Defaulting Lender any payments made by the Borrower to the Administrative Agent for the Defaulting Lender’s benefit or any Proceeds of Collateral that would otherwise be remitted hereunder to the Defaulting Lender, and, in the absence of such transfer to the Defaulting Lender, the Administrative Agent shall transfer any such payments (i) first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder, (ii) second, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Required Agents, (iii) third, if so determined by the Required Agents and the Borrower, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement, (iv) fourth, to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement, (v) fifth, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement, and (vi) sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made at a time when the conditions set forth in Section 3.2 were satisfied or waived, such payment shall be applied solely to pay the Loans of all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until such time as all Loans are held by the Lenders in accordance with their Pro Rata Share.  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender pursuant to this Section 2.5(f) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.  Solely for the purposes of voting or consenting to matters with respect to the Loan Documents (including the calculation of Pro Rata Share in connection therewith) and for the purpose of calculating the fee payable under Section 2.9(b), such Defaulting Lender shall be deemed not to be a “Lender”, such Lender’s Delayed Draw Term Loan Commitment shall be deemed to be zero and such Lender’s Incremental Term Commitment shall be deemed to be zero; provided, that the foregoing shall not apply to any of the matters governed by Section 11.2(a) through (c).  This Section shall remain effective with respect to such Defaulting Lender until the earlier of (y) the date on which all of the non-Defaulting Lenders, the 

Required Agents and the Borrower shall have waived, in writing, the application of this Section 2.5(f) to such Defaulting Lender, or (z) the date on which such Defaulting Lender makes payment of all amounts that it was obligated to fund hereunder, pays to the Administrative Agent all amounts owing by Defaulting Lender in respect of the amounts that it was obligated to fund hereunder, and, if requested by the Required Agents, provides adequate assurance of its ability to perform its future obligations hereunder (on which earlier date, so long as no Event of Default has occurred and is continuing, any remaining cash collateral held by the Collateral Agent pursuant to Section 2.5(f)(ii) shall be released to the Borrower). The operation of this Section shall not be construed to increase or otherwise affect the Delayed Draw Term Loan Commitment or the Incremental Term Commitment of any Lender, if any, to relieve or excuse the performance by such Defaulting Lender or any other Lender of its duties and obligations hereunder, or to relieve or excuse the performance by the Borrower of its duties and obligations hereunder to the Agents or to the Lenders other than such Defaulting Lender.  Any failure by any Defaulting Lender to fund amounts that it was obligated to fund hereunder shall constitute a material breach by such Defaulting Lender of this Agreement and shall entitle the Borrower at its option, upon written notice to the Agents, to arrange for a substitute Lender to assume the duties and obligations of such Defaulting Lender, such substitute Lender to be reasonably acceptable to the Required Agents.  In connection with the arrangement of such a substitute Lender, the Defaulting Lender shall have no right to refuse to be replaced hereunder, and agrees to execute and deliver a completed form of Assignment and Acceptance in favor of the substitute Lender (and agrees that it shall be deemed to have executed and delivered such document if it fails to do so) subject only to being repaid its share of the outstanding Obligations (other than Bank Product Obligations, but including all interest, fees, and other amounts that may be due and payable in respect thereof); provided, that any such assumption of the duties and obligations of such Defaulting Lender shall not be deemed to constitute a waiver of any of the Lender Groups’ or the Borrower’s rights or remedies against any such Defaulting Lender arising out of or in relation to such failure to fund, including Borrower’s right to require Defaulting Lender to reimburse the Borrower for any fees, charges or expenses incurred by the Borrower under this Section 2.5(f) as a result of the failure by any Defaulting Lender to fund amounts that it was obligated to fund hereunder. In the event of a direct conflict between the priority provisions of this Section 2.5(f) and any other provision contained in this Agreement or any other Loan Document, it is the intention of the parties hereto that such provisions be read together and construed, to the fullest extent possible, to be in concert with each other.  In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this Section 2.5(f) shall control and govern.
(g) All Loans shall be made by the Lenders contemporaneously and in accordance with their Pro Rata Shares.  It is understood that (i) no Lender shall be responsible for any failure by any other Lender to perform its obligation to make any Loan (or other extension of credit) hereunder, nor shall any Commitment of any Lender be increased or decreased as a result of any failure by any other Lender to perform its obligations hereunder, and (ii) no failure by any Lender to perform its obligations hereunder shall excuse any other Lender from its obligations hereunder.
2.6  [Reserved]..
2.7  Repayment of Borrowings.
(a)  The Borrower shall pay to the Administrative Agent in full and without notice or demand for the account of the Lenders, on the Maturity Date, all amounts of the Loans then outstanding, in each case, together with accrued and unpaid interest on the principal amount to be paid to but excluding the date of such payment.
(b)  All repayments of the Loans made pursuant to this Section 2.7 shall be applied in the manner set forth in Section 2.3(a)(ii).

2.8  Prepayments. 
(a)  Subject to Section 2.8(c), the Borrower shall have the right to prepay the Loans.  The Borrower shall give the Administrative Agent written notice no later than 1:00 p.m. (Eastern Time) not less than three (3) Business Day prior to any such prepayment.  In each case, such notice shall specify the date on which such prepayment is to be made (which shall be a Business Day), and the amount of such prepayment.  Each such prepayment shall be in an aggregate minimum amount of $500,000 and shall include the Prepayment Premium, if applicable, as well as interest accrued on the principal amount prepaid to, but not including, the date of payment in accordance with the terms hereof (or, in each case, such lesser amount constituting the amount of all Loans then outstanding).  .
(b)  Within three (3) Business Days after the occurrence of a Borrowing Base Deficiency, the Borrower shall prepay the outstanding principal amount of the Loans in an amount equal to (x) the aggregate amount necessary to eliminate such Borrowing Base Deficiency plus (y) the Prepayment Premium applicable to the principal amount of the Loan prepaid on such prepayment date, if any.
(c)  Voluntary prepayments of Loans shall be applied first, to reduce any outstanding Lender Group Expenses and, second, in such order as the Borrower may direct. The Borrower may prepay the Loans subject to the payment of any accrued interest plus the Prepayment Premium applicable to such prepayment.  
(d)  [Reserved]
(e)  If a Change of Manager Event occurs, the Borrower will, at the Lenders’ option (as provided by Lenders in writing to Borrower and Agents), prepay the Loans, plus accrued interest plus the Prepayment Premium applicable to the principal amount of the Loan prepaid on such prepayment date, if any.  
(f)  If a Change of Control Event occurs, the Borrower will, at the Lenders’ option (as provided by Lenders in writing to Borrower and Agents), prepay the Loans plus accrued interest plus the Prepayment Premium applicable to the principal amount of the Loan prepaid on such prepayment date, if any.  
2.9  Fees.  
(a)  [Reserved].
(b)  Agent Fees. The Borrower agrees to pay to the Agents for their own benefit the fees in the amount and at the times set forth in the Agent Fee Letter.  Such fees shall be fully earned when paid and shall be non-refundable for any reason whatsoever. 
(c) Trustee Fees.  For so long as the Lenders under this Agreement are entities managed by J.P. Morgan Investment Management, Inc., and to the extent applicable, the Borrower agrees to pay to the Trustee, the Trustee Fee as required under the fee letter, dated as of December 15, 2017, between ACRC TL 2017 LLC and the Trustee.
2.10  Maintenance of Loan Account; Statements of Obligations.  The Administrative Agent shall maintain an account on its books in the name of the Borrower (the “Loan Account”) on which the Borrower will be charged with all Loans made by the Lenders (or the Administrative Agent on behalf thereof) to the Borrower or for the Borrower’s account and all interest, fees, and expenses (in each case, as and when payable hereunder or under the other Loan Documents (which shall exclude Bank Product Obligations)).  The Administrative Agent shall render statements regarding the Loan Account to the Borrower, including principal, interest, fees, and including an itemization of all expenses owing, and, subject to the entries in 

the Register, which shall be controlling absent manifest error, such statements shall be conclusively presumed to be correct and accurate (absent manifest error) and constitute an account stated between the Borrower and the Administrative Agent unless, within 90 days after receipt thereof by the Borrower, the Borrower shall deliver to the Administrative Agent written objection thereto describing the error or errors contained in any such statements.
2.11  Increased Costs.  
(a)  If any change in, or the introduction, adoption, effectiveness, interpretation or reinterpretation or phase-in, in each case after the date hereof, of any law or regulation, directive, guideline, decision or request (whether or not having the force of law) of any court, central bank, regulator or other Governmental Authority (a “Regulatory Change”) affects the amount of capital required to be maintained by any Lender and such Lender determines (in its good faith discretion) that the rate of return on its capital as a consequence of the Loans or other advances of funds made by such Lender pursuant to this Agreement or any of the Loan Documents relating to fundings or commitments under this Agreement is reduced to a level below that which such Lender would have achieved but for the occurrence of any such circumstance, then, in any such case within thirty (30) days after written notice (which may be by email) from time to time by such Lender to the Borrower, the Borrower shall pay to such Lender compensation sufficient to compensate such Lender for such reduction in rate of return; provided, that such Lender shall provide the Borrower with such notice within a reasonable period of time following such Lender’s discovery of such increased costs or reductions.  A statement of such Lender as to any such additional amount or amounts (including calculations thereof in reasonable detail), in the absence of manifest error, shall be conclusive and binding on the Borrower and such Lender.  Notwithstanding the forgoing, (a) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith, and (b) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign Governmental Authorities, in each case pursuant to Basel III, shall, in the case of clause (a) and clause (b), be deemed to be introduced, adopted, implemented and/or effective after the date hereof (regardless of the date enacted, adopted, issued, implemented and/or effective).  Notwithstanding anything to the contrary in this Section 2.11(a), the Borrower shall not be required to compensate any Lender pursuant to this Section 2.11(a) for any amounts incurred more than nine months prior to the date that such Lender notifies the Borrower of such Lender’s intention to claim compensation therefor; provided that, if the circumstances giving rise to such claim have a retroactive effect, then such nine month period shall be extended to include the period of such retroactive effect.
(b)  If any Change in Law shall:
(i)  impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender; 
(ii)  subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or
(iii)  impose on any Lender any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any participation therein; 

and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its obligation to make any such Loan or to reduce the amount of any sum received or receivable by such Lender or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or other Recipient, the Borrower will pay to such Lender or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.
2.12  Delayed Draw Term Loans. 

(a)  The Borrower may, by submission of a Request for Borrowing to the Administrative Agent from time to time after the A&R Effective Date and prior to the end of the Delayed Draw Availability Period, but no more than two (2) times within any 60-day period, request a borrowing of Delayed Draw Term Loans to be made prior to the end of the Delayed Draw Availability Period, so long as, at the time any such borrowing (such borrowing, a “Delayed Draw Term Loan”) is requested and at the time such Delayed Draw Term Loans are incurred (giving pro forma effect to the incurrence of such Delayed Draw Term Loans), (x) the aggregate principal amount of such Delayed Draw Term Loans, taken together with all other Delayed Draw Term Loans and unused Delayed Draw Term Loan Commitments then outstanding, does not exceed $50,000,000 and (y) the Borrower is in compliance with the covenants set forth in Section 6.12 and no Default or Event of Default has occurred and is continuing.  The Borrower shall notify the Administrative Agent of such request by delivering the Request for Borrowing, not later than 1:00 p.m. (Eastern Time), at least ten (10) Business Days prior to the requested date of a proposed Loan.  Each such Request for Borrowing shall be irrevocable, and shall specify the following information: (i) the date of such Delayed Draw Term Loan (which shall be a Business Day) (the “Delayed Draw Funding Date”); (ii) the number and location of the account to which funds are to be disbursed; (iii) the amount of such Delayed Draw Term Loan (which shall be in minimum increments of $5,000,000 or such other amounts as the Required Agents may agree to); (iv) the Interest Period with respect thereto; and (v) a general statement as to the proposed use of proceeds of the draw; provided, however, that, notwithstanding any contrary specification in any Request for Borrowing, each requested Delayed Draw Term Loan shall comply with the requirements set forth in Section 2.1(b).  The Administrative Agent shall promptly advise the applicable Lenders of any notice given pursuant to this Section 2.12 (and the contents thereof), and of each Lender’s portion of the requested borrowing.

(b)  Notwithstanding the foregoing, no Delayed Draw Term Loans shall be made (and no Delayed Draw Term Loan Lender would be required to fund such Delayed Draw Term Loans) unless on the date of such Delayed Draw Term Loan, (i) the conditions set forth in Section 2.12(a) above shall be satisfied, (ii) after giving effect to such Delayed Draw Term Loan, the conditions of Section 3.2 are satisfied, (iii) the Agents shall have received a certificate, executed by a Responsible Officer of the Borrower, as to the matters set forth in the foregoing.
2.13  Funding Sources. Nothing herein shall be deemed to obligate the Lenders (or the Agents on behalf thereof) to obtain the funds to make any Loan in any particular place or manner and nothing herein shall be deemed to constitute representation by the Agents or any Lender that it has obtained or will obtain such funds in any particular place or manner.
2.14  Place of Loans.  All Loans made hereunder shall be disbursed by credit to the Designated Account or as may otherwise be agreed to between Borrower and the Agents.
2.15  Incremental Term Loans.

(a)  Incremental Term Commitments. The Borrower may at any time or from time to time after the A&R Effective Date, by written notice to the Agents (whereupon the Administrative Agent shall promptly deliver a copy to each of the Lenders) (an “Incremental Term Loan Request”), request the establishment of one or more new commitments which shall be in the same Credit Facility as any outstanding Initial Term Loans and any outstanding A&R Effective Date Term Loan (a “Term Loan Increase” and, collectively with any Term Loan Increase, the “Incremental Term Commitments”) in an aggregate principal amount not to exceed, $150,000,000. 
(b)  Incremental Term Loan Request.  Each Incremental Term Loan Request from the Borrower pursuant to this Section 2.15 shall set forth the requested amount and proposed terms of the relevant Incremental Term Loans.  Incremental Term Loans may be made by any existing Lender (but no existing Lender will have an obligation to make any Incremental Term Commitment) or by any other bank or other financial institution (any such other bank or other financial institution being called an “Additional Lender”) (each such existing Lender or Additional Lender providing such, an “Incremental Lender”); provided that (i) the Required Lenders shall have consented in writing (not to be unreasonably withheld or delayed) to such Lender’s or Additional Lender’s making such Term Loan Increase; and (ii) Borrower shall only be permitted to request all or a portion (as applicable) of the Term Loan Increase from Additional Lenders if the Borrower has offered each of the existing Lenders an opportunity to provide such Term Loan Increase and the existing Lenders have declined to provide all or a portion of the Term Loan Increase (or have not responded in writing to the Borrower within ten (10) Business Days of any such offer); provided, further, that each Additional Lender, prior to becoming an Incremental Lender hereunder, shall have provided  the Agents with a duly executed IRS From W-9, or such other applicable IRS Form, a fully completed Administrative Agent Questionnaire, and all “know your customer” documentation requested by the Agents.
(c) Incremental Term Loans. On any Incremental Facility Closing Date on which any Incremental Term Commitments are effected, subject to the satisfaction of the terms and conditions in this Section 2.15, (i) each Incremental Lender shall make a loan to the Borrower (an “Incremental Term Loan”) in an amount equal to its Incremental Term Commitment and (ii) each Incremental Lender shall become a Lender hereunder with respect to the Incremental Term Commitment and the Incremental Term Loans made pursuant thereto.  
(d) Effectiveness of Incremental Amendment. The effectiveness of any Incremental Amendment, and the Incremental Term Commitments thereunder, shall be subject to the satisfaction on the date thereof (the “Incremental Facility Closing Date”) of each of the following conditions:
(i)  no Default or Event of Default has occurred and is continuing or would result from the Incremental Term Loan; provided that, solely with respect to any Incremental Term Loans incurred in connection with an acquisition that is permitted under this Agreement, no Default or Event of Default shall exist at the time the definitive documentation for such acquisition is executed;
(ii)  after giving effect to such Incremental Term Commitments, the conditions of Section 3.2(a) shall be satisfied (it being understood that all references to “such date” or similar language in such Section 3.2(a) shall be deemed to refer to the effective date of such Incremental Amendment); provided that, if the proceeds of any Incremental Term Commitments are being used to finance an acquisition permitted hereunder, (x) the reference in Section 3.2(a) to the accuracy of the representations and warranties shall refer to the accuracy of the representations and warranties that would constitute “specified representations” and the representations and warranties in the relevant acquisition agreement the breach of which would permit the buyer to terminate its obligations thereunder or decline to consummate such acquisition and (y) the 

reference to “Material Adverse Effect” in the “specified representations” shall be understood for this purpose to refer to “Material Adverse Effect” or similar definition as defined in the main transaction agreement governing such acquisition permitted hereunder; 
(iii)  after giving effect to such Incremental Term Commitments, the Borrower is in compliance with the financial covenants set forth in Section 6.12; provided that, solely with respect to any Incremental Term Loans incurred in connection with an acquisition that is permitted under this Agreement, compliance with the financial covenants set forth in Section 6.12 shall exist at the time the definitive documentation for such acquisition is executed; and 
(iv)  to the extent reasonably requested by the Agents, the Agents shall have received (A) customary legal opinions addressed to the Agents and the Lenders, board resolutions and officers’ certificates consistent with those delivered on the Original Closing Date other than changes to such legal opinion resulting from a change in law, change in fact or change to counsel’s form of opinion reasonably satisfactory to the Agents and (B) reaffirmation agreements and/or such amendments to the Security Agreement, as may be reasonably requested by the Agents in order to ensure that the enforceability of the Security Agreement and the perfection and priority of the Liens thereunder are preserved and maintained.
(e) Required Terms. The terms, provisions and documentation of the Incremental Term Loans and Incremental Term Commitments shall be as agreed between the Borrower and the applicable Incremental Lenders providing such Incremental Term Commitments, and except (x) to the extent otherwise permitted under this Section 2.15, (y) to the extent more restrictive on the Borrower or the Guarantors (when taken as a whole) in any material respect than those with respect to the Initial Term Loans or the A&R Effective Date Term Loans existing on the Incremental Facility Closing Date (but excluding any terms or conditions applicable after the Maturity Date) or (z) to the extent relating only to provisions of a mechanical or administrative nature, shall be reasonably satisfactory to the Agents.  In any event: 
(i)  the Incremental Term Loans:
(A)  shall rank pari passu in right of payment and in respect of the Collateral with the Initial Term Loans and the A&R Effective Date Term Loans;
(B)  shall not mature earlier than the Maturity Date of any Initial Term Loans or any A&R Effective Date Term Loans outstanding at the time of incurrence of such Incremental Term Loans;
(C)  shall have a Weighted Average Life to Maturity no shorter than the remaining Weighted Average Life to Maturity of any Initial Term Loans or any A&R Effective Date Term Loans outstanding at the time of incurrence of such Incremental Term Loans;
(D)  subject to Section 2.15(f) below, shall have an applicable rate and amortization determined by the Borrower and the applicable Incremental Lenders; and
(E)  may participate on a pro rata basis or less than pro rata basis (but not on a greater than pro rata basis) in any voluntary or mandatory prepayments of Initial Term Loans or A&R Effective Date Term Loans hereunder, as specified in the applicable Incremental Amendment;
(ii)  subject to the foregoing, the amortization schedule applicable to any Incremental Term Loans and the All-In Yield applicable to the Incremental Term Loans shall be determined by the 

Borrower and the applicable Incremental Lenders and shall be set forth in each applicable Incremental Amendment; provided, however, that with respect to any Loans under Incremental Term Commitments, if the All-In Yield applicable to such Incremental Term Loans shall be greater than the applicable All-In Yield payable pursuant to the terms of this Agreement as amended through the date of such calculation with respect to Initial Term Loans or the A&R Effective Date Term Loans by more than 50 basis points per annum (the amount of such excess, the “Yield Differential”), then the interest rate with respect to the Initial Term Loans or the A&R Effective Date Term Loans shall be increased by the applicable Yield Differential, as applicable; and
(iii)  the proceeds, if any of the Incremental Term Loans, will be used for general corporate purposes of the Borrower and its Subsidiaries including, without limitation, for capital expenditures, permitted acquisitions and other permitted investments, restricted payments, refinancing of indebtedness and any other transaction not prohibited by this Agreement.
(f)  Incremental Amendment.
(i)  Incremental Term Commitments shall become Commitments under this Agreement pursuant to an amendment (an “Incremental Amendment”) to this Agreement and, as appropriate, amendments to the other Loan Documents, executed by the Borrower, each Incremental Lender providing such Commitments and the Agents, as applicable.  The Incremental Amendment may, without the consent of any other Loan Party or, Lender, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Agents and the Borrower, to effect the provisions of this Section 2.15.  
(ii)  The Lenders hereby irrevocably authorize the Agents to enter into amendments to this Agreement and the other Loan Documents with the Loan Parties as may be necessary in order to establish new Loans or commitments made or established pursuant to this Section 2.15 and such technical amendments as may be necessary or appropriate in the reasonable opinion of the Agents and the Borrower in connection with the establishment of such new Loans, in each case on terms consistent with this Section 2.15, including any amendments that are not adverse to the interests of any Lender that are made to effectuate changes necessary to enable any Incremental Term Loans to be fungible for United States federal income tax purposes with the Initial Term Loans and the A&R Effective Date Term Loans, which shall include any amendments that do not reduce the ratable amortization received by each Lender thereunder.
(g)  This Section 2.15 shall supersede any provisions in Section 9.1 or Section 11.2 to the contrary.
2.16  Mitigation of Obligations.  If any Lender requests compensation under Section 2.11, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 10.11, then such Lender shall use reasonable efforts to designate a different one of its lending offices or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if (i) in the reasonable judgment of such Lender, such designation or assignment would eliminate or reduce amounts payable pursuant to Sections 2.11, or 10.11, as applicable, and (ii) in the reasonable judgment of such Lender, such designation or assignment would not subject such Lender to any material unreimbursed cost or expense and would not otherwise be materially disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

2.17  Pro Rata Treatment. 
(a)  Each Loan shall be allocated among the Lenders in accordance with their respective Pro Rata Share.  
(b)  Except for prepayments contemplated by Section 2.8(d)(y), each repayment by the Borrower in respect of principal or interest on the Initial Term Loans or the A&R Effective Date Term Loans and each payment in respect of fees or expenses payable hereunder shall be applied to the amounts of such obligations owing to the Lenders entitled thereto in accordance with their respective Pro Rata Share.  Each voluntary prepayment by the Borrower of Initial Term Loans or the A&R Effective Date Term Loans shall be applied to the amounts of such obligations owing to the Lenders in accordance with their respective Pro Rata Share (unless such payment is made in accordance with Section 9.1(f), in which case it shall be made in accordance with such Section). Except for prepayments contemplated by Section 2.8(d), each repayment by the Borrower in respect of principal or interest on the Delayed Draw Term Loans and each payment in respect of fees or expenses payable hereunder shall be applied to the amounts of such obligations owing to the Lenders entitled thereto in accordance with their respective Pro Rata Share.  Each voluntary prepayment by the Borrower of Delayed Draw Term Loans shall be applied to the amounts of such obligations owing to the Delayed Draw Term Loan Lenders in accordance with their respective Pro Rata Share (unless such payment is made in accordance with Section 9.1(f), in which case it shall be made in accordance with such Section).
ARTICLE III
CONDITIONS TO LOANS
3.1  Conditions Precedent to the Initial Term Loan and the A&R Effective Date Term Loan
(a)  Conditions Precedent to the Initial Term Loans.  The effectiveness of the Original Credit Agreement, including the Lenders’ obligation to make the Initial Term Loans, was subject to the fulfillment, to the reasonable satisfaction of Agents and each Lender and its counsel, of the conditions precedent set forth in Section 3.1 of the Original Credit Agreement, in addition to the conditions set forth in Section 3.2 hereof.
(b)  Conditions Precedent to the A&R Effective Date Term Loans.  The obligation of each Lender to make the A&R Effective Date Term Loans hereunder on or after the date hereof is, in addition to the conditions set forth in Section 3.2 hereof, subject to the fulfillment, to the reasonable satisfaction of Agents and each Lender and its counsel, of each of the following conditions on or before the A&R Effective Date:
(i)  The Agents shall have received the results of a recent lien, tax lien, judgment and litigation search in each of the jurisdictions or offices in which UCC financing statement or other filings or recordations should be made to evidence or perfect security interests in all assets of the Loan Parties (or would have been made at any time during the five years immediately preceding the A&R Effective Date to evidence or perfect Liens on any assets of the Loan Parties), and such search shall reveal no Liens or judgments on any of the assets of the Loan Parties, except for Permitted Liens or Liens and judgments to be terminated on the A&R Effective Date pursuant to documentation satisfactory to the Agents;
(ii)  The Agents shall have received this Agreement and the Reaffirmation Agreement, each duly executed and delivered by each party thereto, each in form and substance reasonably satisfactory to the Agents;

(iii)  The Agents shall have received the written opinions, dated the date of this Agreement, of counsel to the Loan Parties and the grantors party to the Negative Pledge Agreement, with respect to this Agreement and the other Loan Documents, which written opinions shall be in form and substance reasonably satisfactory to the Agents and their counsel; 
(iv)  The Agents shall have received a certificate of status with respect to each Loan Party dated within 30 days of the date of this Agreement, or confirmed by telefacsimile, if telefacsimile confirmation is available, such certificate to be issued by the Secretary of State of the jurisdiction of organization of each Loan Party, which certificate shall indicate that such Loan Party is in good standing in such State;
(v)  The Agents shall have received a copy of each Loan Party’s Governing Documents, certified by a Responsible Officer with respect to such Loan Party;
(vi)  The Agents shall have received a copy of the resolutions or the unanimous written consent with respect to each Loan Party, certified as of the A&R Effective Date by a Responsible Officer of such Loan Party, authorizing (A) the execution, delivery and performance by such Loan Party of this Agreement, the Fee Letter and the Reaffirmation Agreement to which such Loan Party is or will be a party and (B) the execution and delivery of the other documents to be delivered by such Loan Party in connection herewith and therewith;
(vii)  The Agents shall have received a signature and incumbency certificate of the Responsible Officer with respect to each Loan Party executing this Agreement, the Fee Letter, the Reaffirmation Agreement and the other Loan Documents not previously delivered to each Agent to which each Loan Party is a party, certified by a Responsible Officer with respect to each Loan Party;
(viii)  Since December 31, 2020, no Material Adverse Effect has occurred;
(ix)  the Borrower shall have paid all fees incurred in connection with the transactions evidenced by this Agreement on the A&R Effective Date and, in each case subject to the Expenses Cap (unless, at any Lender’s reasonable request, the Borrower consents to reimburse the Lenders for any out-of-pocket costs and expenses incurred on or before the A&R Effective Date that exceed the Expenses Cap, which if not reimbursed, the Lenders may elect not to proceed with the transactions evidenced by this Agreement), all Lender Group Expenses incurred in connection with the transactions evidenced by this Agreement for which the Borrower received an invoice at least 3 Business Days prior to the A&R Effective Date; and
(x)  all other documents and legal matters in connection with the transactions contemplated by this Agreement shall have been delivered or executed or recorded and shall be in form and substance reasonably satisfactory to Agents and their counsel.
3.2  Conditions Precedent to All Loans.  The obligation of the Lenders to make any Loan hereunder (or to extend any other credit hereunder) is subject to the fulfillment, at or prior to the time of the making of such Loan, of each of the following conditions:
(a)  The representations and warranties of the Borrower contained in this Agreement and the other Loan Documents shall be true and correct on the A&R Effective Date or, with respect to any Loans made after the A&R Effective Date, in all material respects (except that such materiality qualifier shall not be applicable to any representation or warranty to the extent that such representation or warranty is qualified or modified by materiality) on and as of the date of such Loan as though 

made on and as of such date (except to the extent that such representations and warranties solely relate to an earlier date) (subject in the case of Incremental Term Loans to Section 2.15(d)(ii));
(b)  No Event of Default or Default shall have occurred and be continuing on the date of such Loan, nor shall either result from the making of such Loan  (subject in the case of Incremental Term Loans to Section 2.15(d)(i)); 
(c)  The Borrower is in compliance with the covenants set forth in Section 6.12 both before and after giving effect to such Loan (subject in the case of Incremental Term Loans to Section 2.15(d)(iii));
(d)  The Borrower shall have delivered to the Administrative Agent a Request for Borrowing pursuant to the terms of Section 2.1(b), Section 2.5 and Section 2.15 hereof, as applicable; 
(e)  The Borrower shall have delivered a Borrowing Base Certificate to the Agents at least three (3) Business Days prior to the date of any such Loan, including a general statement as to the proposed use of proceeds of the draw; and
(f)  The aggregate principal amount of all Incremental Term Loans under this Agreement, irrespective of whether such Incremental Term Loans have been repaid or prepaid, shall not exceed (a) $150,000,000 plus (b) the amount of Incremental Term Loans incurred pursuant to Section 6.1(x) (subject to Section 2.15).
3.3  Maturity Date.  
(a)  This Agreement shall continue in full force and effect for a term ending on the earlier of (the “Maturity Date”): (a) the five year anniversary of the A&R Effective Date  and (b) such earlier date on which the Loans shall become due and payable in accordance with the terms of this Agreement and the other Loan Documents.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF THE BORROWER
Each Loan Party makes the following representations and warranties as of the A&R Effective Date and on and as of the date of each Loan as though made on and as of the date of the making of such Loan (except to the extent that such representations and warranties relate solely to an earlier date) and such representations and warranties shall survive the execution and delivery of this Agreement and the making of the Loans:
4.1  Due Organization.  Each of the Borrower and its Subsidiaries is a duly organized and validly existing limited liability company in good standing under the laws of the jurisdiction of its incorporation or organization and is duly qualified to conduct business in all other jurisdictions where its failure to do so could reasonably be expected to have a Material Adverse Effect.  
4.2  Securities and Subsidiaries. Schedule 4.2 sets forth (i) each Loan Party and its jurisdiction of incorporation or organization as of the A&R Effective Date and (ii) the number of each class of its Securities authorized, and the number outstanding, on the A&R Effective Date and the number of Securities covered by all outstanding options, warrants, rights of conversion or purchase and similar rights on the A&R Effective Date.  All Securities of each Loan Party are duly and validly issued and are fully paid and non-assessable, and, other than the Securities of the Borrower, are owned by the Borrower, directly or indirectly.  Each Loan Party is the record and beneficial owner of, and has good and marketable 

title to, the Securities pledged by (or purported to be pledged by) it under the Security Agreement, to the knowledge of each Loan Party, free of any and all Permitted Collateral Liens (other than in respect to Liens arising pursuant to clause (d) of the definition thereof), and, as of the A&R Effective Date, there are no outstanding warrants, options or other rights (including derivatives) to purchase, or shareholder, voting trust or similar agreements outstanding with respect to, or property that is convertible into, or that requires the issuance or sale of, any such Securities (or any economic or voting interests therein).
4.3  Requisite Power and Authorization.  Each Loan Party has all requisite power and authority to execute and deliver this Agreement and the other Loan Documents to which it is a party, and, if applicable, to borrow the sums provided for in this Agreement.  Each of the Borrower and its Subsidiaries has all governmental licenses, authorizations, consents, and approvals necessary to own and operate its Assets and to carry on its businesses as now conducted and as proposed to be conducted, other than licenses, authorizations, consents, and approvals that are not currently required or the failure to obtain which could not reasonably be expected to be materially adverse to any Lender.  The execution, delivery, and performance of this Agreement and the other Loan Documents have been duly authorized by each Loan Party and all necessary limited liability company or corporate action in respect thereof has been taken, and, other than as set forth on Schedule 4.3, the execution, delivery, and performance thereof do not require any other material consent or approval of any other Person that has not been obtained.  
4.4  Binding Agreements.  This Agreement and the other Loan Documents to which any Loan Party is a party, when executed and delivered by such Loan Party, will constitute the legal, valid, and binding obligations of such Loan Party, enforceable against such Loan Party in accordance with their terms except as the enforceability hereof or thereof may be affected by: (a) bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting the enforcement of creditors’ rights generally, and (b) equitable principles of general applicability (whether considered in a proceeding in equity or law).
4.5  Other Agreements.  The execution, delivery, and performance by each Loan Party of this Agreement and the other Loan Documents to which any Loan Party is a party, do not and will not: (a) violate (i) in any material respect any provision of any federal (including the Exchange Act), state or local law, rule, or regulation (including Regulations T, U, and X of the Federal Reserve Board) binding on any Loan Party, (ii) in any material respect any order of any Governmental Authority, court, arbitration board or tribunal binding on any Loan Party or (iii) the Governing Documents of any Loan Party, or (b) contravene any provisions of, result in a breach of, constitute (with the giving of notice or the lapse of time) a default under, or result in the creation of any Lien (other than Liens granted by the Loan Parties to the Collateral Agent, for the benefit of the Secured Parties, to secure the Obligations under this Agreement) upon any of the Assets of any Loan Party pursuant to any Material Agreement, or (c) require termination of any Material Agreement, or (d) constitute a tortious interference with any material Contractual Obligation of the Borrower or its Subsidiaries.
4.6  Litigation: Adverse Facts and Compliance with Laws.
(a) There is no action, suit, proceeding, or arbitration (irrespective of whether purportedly on behalf of any Loan Party) at law or in equity, or before or by any federal, state, municipal, or other governmental department, commission, board, bureau, agency, or instrumentality, domestic or foreign, pending or threatened in writing against or affecting the Borrower and any of its Subsidiaries, that could reasonably be expected to have a Material Adverse Effect, or could reasonably be expected to materially and adversely affect any Loan Party’s ability to perform its obligations under the Loan Documents to which it is a party (including Borrower’s or the Guarantor’s ability to repay any or all of the Loans when due);

(b)  Neither the Borrower nor any of its Subsidiaries is subject to or in default with respect to any order, final judgment, writ, injunction, decree, rule, or regulation of any Governmental Authority in a manner that could reasonably be expected to have a Material Adverse Effect or could reasonably be expected to materially and adversely affect any Loan Party’s ability to perform its obligations under the Loan Documents to which it is a party (including Borrower’s or the Guarantor’s ability to repay any or all of the Loans when due); 
(c)   Neither the Borrower nor any of its Subsidiaries (i) has failed to comply with Environmental Laws or to obtain, maintain and comply with any permit, license or other approval required to be obtained by the Borrower or any of its Subsidiaries under any Environmental Law, (ii) is subject to any material liability under Environmental Law, (iii) has received written notice of any claim alleging that it is in violation of Environmental Law or has liability under Environmental Law or (iv) has actual knowledge of existing facts or circumstances that would reasonably be expected to form the basis of a claim that it has liability under Environmental Law, except, in the case of each of items (i) through (iv) above, would not reasonably be expected to have a Material Adverse Effect; and
(d)  (i) there is no action, suit, proceeding or investigation pending or, to the best of the Borrower’s knowledge, threatened in writing against or affecting the Borrower or any of its Subsidiaries that questions the validity or the enforceability of this Agreement or other the Loan Documents, and (ii) there is no action, suit, or proceeding pending against or affecting any Loan Party pursuant to which, on the date of the making of any Loan hereunder, there is not in effect a binding injunction that could reasonably be expected to materially and adversely affect the validity or enforceability of this Agreement or the other Loan Documents.
4.7  Government Consents.  Other than such as may have previously been obtained, filed, or given, as applicable, no consent, license, permit, approval, or authorization of, exemption by, notice to, report to or registration, filing, or declaration with, any Governmental Authority is required in connection with the execution, delivery, and performance by the Loan Parties of the Loan Documents to which they are a party, in each case, except as could not reasonably be expected to have a Material Adverse Effect.
4.8  Title to Assets; Liens.  Except for Permitted Liens, all of the Assets held by the Borrower and its Subsidiaries are free from all Liens of any nature whatsoever.  Except for Permitted Liens, the Borrower and its Subsidiaries have good and sufficient title to all of the Assets held by the Borrower and its Subsidiaries.
4.9  ERISA. Except as could not reasonably expected to have a Material Adverse Effect, each Plan is in compliance with the applicable provisions of ERISA, the Code and other Federal and state laws.  Except as could not reasonably be expected to have a Material Adverse Effect, (i) no ERISA Event has occurred or is reasonably expected to occur; (ii) no Loan Party has incurred, or reasonably expects to incur, any liability (including liability as an ERISA Affiliate of another Person) under Title IV of ERISA with respect to any Single Employer Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iii) no Loan Party has incurred or reasonably expects to incur any liability (including liability as an ERISA Affiliate of another Person), and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability, under Section 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (iv) no Loan Party and, to the knowledge of any Loan Party, no ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or 4212(c) of ERISA.
4.10  Payment of Taxes.  All material tax returns and reports of the Loan Parties (and all parent entities of such Loan Parties with which any Loan Party is or has been consolidated or combined) required to be filed by it have been timely filed (inclusive of any permitted extensions), and all material Taxes, governmental 

assessments, fees, and amounts required to be withheld and paid to a Governmental Authority and all other governmental charges imposed upon the Loan Parties, and upon their Collateral, income, and franchises, that are due and payable have been paid except for any claims for Taxes that are being contested, in good faith, by appropriate proceedings promptly instituted and diligently conducted, and with respect to which an adequate reserve or other appropriate provision, if any, shall have been made in order to be in conformity with GAAP.
4.11  Governmental Regulation.
(a)  The Loan Parties are not, nor immediately after the application by the Borrower of the proceeds of the Loans will they be, required to be registered as an “investment company” under the Investment Company Act of 1940, as amended.  
(b)  No Loan Party holds any interest in any Margin Securities. No part of the proceeds of the loans made to the Borrower will be used to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock or for any purpose that violates the provisions of Regulation T, U or X of the Board of Governors.
(c)  No Loan Party is subject to regulation under any federal, state, or local law, rule, or regulation generally limiting its ability to incur Debt.
4.12  Disclosure.  No representation or warranty of any Loan Party contained in this Agreement or any other document, certificate, or written statement furnished to any Agent or any Lender with respect to the business, operations, Collateral, or condition (financial or otherwise) of the Loan Parties in connection with the transactions contemplated by this Agreement (other than projections, pro forma financial statements and budgets and information of a general economic or industry-wide nature) contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein or therein, in light of the circumstances under which they were made, not materially misleading.  There is no fact known to any Loan Party (other than matters of a general economic industry-wide nature) that any Loan Party believes reasonably could be expected to have a Material Adverse Effect, that has not been disclosed herein or in such other documents, certificates, and statements furnished to any Agent or any Lender for use in connection with the transactions contemplated hereby.  
4.13  Debt.  The Borrower and its Subsidiaries do not have any Debt outstanding other than Debt permitted by Section 6.1 hereof.
4.14  Existing Defaults.  Neither the Borrower nor any of its Subsidiaries is in default in the performance, observance or fulfillment of any of the obligations contained in any Contractual Obligation applicable to it, and no condition exists which, with or without the giving of notice or the lapse of time, would constitute a default under any such Contractual Obligation, except, in any such case, where the consequences, direct or indirect, of such default or defaults, if any, could not reasonably be expected to have a Material Adverse Effect. 
4.15  No Material Adverse Effect.  No event or development has occurred which could reasonably be expected to result in a Material Adverse Effect.
4.16  Security Documents.  The Security Agreement is effective to create in favor of the Collateral Agent, for the benefit of the Secured Parties, a legal, valid, binding and enforceable first-priority security interest in the Collateral described herein and therein and in proceeds and products thereof as set forth herein and therein (subject to Permitted Collateral Liens).  In the case of (i) Pledged Securities represented by certificates, (x) when such certificates are delivered to the Collateral Agent or (y) when financing 

statements in appropriate form are filed in the offices specified on Schedule 4.16, and (ii) the other Collateral described in the Security Agreement, when financing statements in appropriate form are filed in the offices specified on Schedule 4.16 and such other filings as are specified on Schedule 2 to the Security Agreement have been completed, the Lien created by the Security Agreement shall constitute a fully perfected Lien on, and security interest in, all right, title and interest of the Loan Parties in such Collateral and the proceeds and products thereof, as security for the Secured Obligations (as defined in the Security Agreement), in each case, prior and superior in right to any other Person (subject to Permitted Collateral Liens). 
4.17  Solvency. The Borrower is, each Loan Party and ACRC Lender are, and the other Subsidiaries of the Borrower are taken as a whole, both immediately before and immediately following the making of each Loan and after giving effect to the application of the proceeds of each Loan, the pledge of Collateral and the guarantee in favor of the Agents and the Lenders, as applicable, Solvent.
4.18   Use of Proceeds. 
(a)  The proceeds of the Loans shall be used (i) to refinance existing Debt of the Borrower and its Subsidiaries, (ii) to permit the Borrower and its Subsidiaries to purchase or originate and hold Borrowing Base Eligible Assets, (iii) for any general other corporate purposes of the Borrower and its Subsidiaries (including for capital expenditures, permitted acquisitions and other permitted investments, restricted payments, refinancing of indebtedness and any other transaction not prohibited by the Loan Documents) and (iv) to pay fees and expenses related to the transactions contemplated by the Loan Documents.  
(b)  No part of the proceeds of the Loans will be used, directly or indirectly, for any payment to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended.
4.19  Anti-Corruption and Anti-Money Laundering Laws and Sanctions.  Each Loan Party has implemented and maintains in effect policies and procedures reasonably designed to ensure compliance by each Loan Party, their Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions, and each Loan Party and its Subsidiaries and their respective directors, officers and employees are, to the knowledge of each Loan Party, its directors and agents, in compliance with Anti-Corruption Laws, Anti-Money Laundering Laws, and Sanctions in all material respects.  None of (i) the Loan Parties or, to the knowledge of each Loan Party, their Subsidiaries, or to the knowledge of the Loan Parties or such Subsidiaries, any of their respective directors, officers or employees, or (ii) to the knowledge of the Loan Parties, any agent of the Loan Parties or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.  No Loan, use of proceeds from this Agreement or other transaction contemplated by this Agreement will violate Anti-Corruption Laws, Anti-Money Laundering Laws or Sanctions.
ARTICLE V
AFFIRMATIVE COVENANTS OF THE BORROWER
The Borrower covenants and agrees that until payment, in full, of the Loans, with interest accrued and unpaid thereon, the Borrower will, and will cause its Subsidiaries to, do each and all of the following:

5.1  Accounting Records and Inspection.  
(a)  Maintain adequate financial and accounting books and records in accordance with sound business practices and GAAP consistently applied; and 
(b)  permit any representative of the Agents (and after the occurrence and during the continuance of an Event of Default, any representatives of each Lender) upon reasonable notice to the Borrower, at any time during usual business hours, to inspect, audit, and examine the Borrower’s financial and accounting books and records and to make copies and take extracts therefrom, and to discuss its affairs, financing, and accounts with the Borrower’s or the Guarantors’ officers and independent public accountants (provided that the Borrower shall have the opportunity to be present at any meeting with its independent public accountants); provided that unless an Event of Default has occurred and is continuing, no more than one inspection per year may be made at the Borrower’s expense.  
5.2  Financial Statements. Furnish to the Agents:
(a)  As soon as publicly available (including, pursuant to any filing under the Exchange Act or with any national securities exchange), but in any event within 90 days after the end of each fiscal year of the Borrower (commencing with the fiscal year ended December 31, 2015), a copy of the consolidated balance sheet of the Borrower as at the end of such fiscal year and the related consolidated statements of income or operations, changes in stockholders’ equity and cash flows for such fiscal year, all in reasonable detail and prepared in accordance with GAAP, audited and accompanied by a customary report and opinion of an independent certified public accounting firm of nationally recognized standing (including without limitation Ernst & Young, PricewaterhouseCoopers LLP, Deloitte and KPMG) which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit (other than a “going concern” qualification resulting solely from an upcoming maturity date under the Credit Facilities occurring within one year from the time such opinion is delivered); and
(b)  As soon as publicly available (including, pursuant to any filing under the Exchange Act or with any national securities exchange), but in any event within 40 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower (commencing with the fiscal quarter ended September 30, 2015), a copy of the unaudited consolidated balance sheet of the Borrower as at the end of such fiscal quarter and the related unaudited consolidated statements of income or operations, changes in stockholders’ equity and cash flows for such fiscal quarter and the portion of the fiscal year through the end of such fiscal quarter, all in reasonable detail (subject only to normal year-end audit adjustments).
5.3  Certificates; Other Information.  Furnish to the Agents:  
(a)  concurrently with the delivery of the financial statements pursuant to Section 5.2(a) and (b), (i) a completed Compliance Certificate duly executed by a Responsible Office of the Borrower containing all information and calculations necessary (in reasonable detail) for determining (A) that no Event of Default or any Default has occurred or is continuing, (B) if an Default has occurred, a statement as to the nature thereof and the action which is proposed to be taken in respect thereto and (C) compliance by the Borrower with Section 6.12, in each case, as of the last day of the fiscal quarter or fiscal year of the Borrower, (ii) a duly completed Borrowing Base Certificate setting forth the Borrowing Base based on the most recent Borrowing Base Value and (iii) notice of any event giving rise to the occurrence of a VAE;

(b)  promptly (but in any event within five (5) Business Days unless otherwise specified), after a Responsible Officer of the Borrower or any Guarantor has knowledge thereof, written notice of: 
(i)  the occurrence of any Event of Default or any Default; 
(ii)  any Material Modification that occurs and, in any such event, the Borrower shall also supply the Agents with copies of any modifications, waivers or forbearances allowed by the Borrower pursuant thereto within five (5) Business Days following the occurrence thereof; 
(iii)  the occurrence of a VAE in respect of any Borrowing Base Eligible Asset within ten (10) Business Days following the occurrence thereof;
(iv)  [Reserved]
(v)  a judgment by any competent court against the Borrower or any of its Subsidiaries for the payment of money in an amount greater than $15,000,000;
(vi)  any default or event of default as defined in any Contractual Obligation relating to Debt, in each case in an amount not less than $15,000,000 and irrespective of whether such Debt is accelerated or such default waived;
(c) as soon as practicable, written notice of any condition or event which has resulted or could reasonably be expected to result in a Material Adverse Effect.
(d)  such other information as any Agent may reasonably request from time to time in connection with the Collateral or other business or financial information of the Borrower and its Subsidiaries; and
(e)  If requested by any Agent from time to time, promptly deliver to the Agents copies of any annual report to be filed in connection with each Plan.
5.4  Existence.  Preserve and maintain its legal existence and all of its material rights, privileges, licenses and franchises.
5.5  Payment of Taxes and Claims.  File all material Tax returns including income Tax returns required to be filed by or on behalf of the Loan Parties.  Pay all (a) material Taxes, governmental assessments, and other governmental charges imposed on any of the Loan Parties or upon any of the Borrowing Base Eligible Assets or the Collateral or in respect of any of its businesses, incomes, Collateral, or Borrowing Base Eligible Assets before any penalty or interest accrues thereon, and (b) all claims in excess of $100,000 in the aggregate (including claims for labor, services, materials, and supplies) for sums which have become due and payable and which by law have or may become a Lien upon any of the Collateral or Borrowing Base Eligible Assets, prior to the time when any penalty or fine shall be incurred with respect thereto; provided, however, that, unless such Taxes, assessments, charges, or claims have become a federal tax Lien on any of the Collateral or the Borrowing Base Eligible Assets, no such Tax, assessment, charge, or claim need be paid if the same is being diligently contested, in good faith, by appropriate proceedings promptly instituted and diligently conducted and if an adequate reserve or other appropriate provision, if any, shall have been made therefor as required in order to be in conformity with GAAP. 
5.6  Compliance with Laws and Material Contractual Obligations.  (a) Comply in all material respects with the requirements of all applicable laws, rules, regulations (including Regulations T, U and X of the Federal Reserve Board), and orders of any Governmental Authority, noncompliance with which could 

reasonably be expected to have a Material Adverse Effect and (b) perform in all material respects its obligations under Material Agreements to which it is a party.
5.7  Further Assurances.  At any time or from time to time upon the request of the Agents, execute and deliver such further documents and do such other acts and things as the Agents may reasonably request in order to effect fully the purposes of this Agreement or the other Loan Documents and to provide for payment of the Loans made hereunder, with interest thereon, in accordance with the terms of this Agreement.
5.8  Payment of Obligations.  Pay, discharge or otherwise satisfy as the same shall become due and payable in the normal conduct of its business all its material obligations and liabilities including, without limitation, any such material obligations pursuant to any agreement by which it or any of its properties is bound.
5.9  Maintenance of Insurance.  Maintain with financially sound and reputable insurance companies not Affiliates of the Borrower insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or a similar business of such types and in such amounts (after giving effect to any self-insurance compatible with the following standards) as are customarily carried under similar circumstances by such other Persons.
5.10  Maintenance of Property and Licenses.  In addition to the requirements of the Security Agreement, (a) protect and preserve all property necessary in and material to their business then being conducted, including copyrights, patents, real estate, trade names, service marks and trademarks, (b) maintain in good working order and condition, ordinary wear and tear and casualty excepted, all buildings, equipment and other tangible real and personal property necessary and material to its business as then being conducted and (c) from time to time make or cause to be made all repairs, renewals and replacements thereof and additions to such property necessary and material for the conduct of its business as then being conducted, so that the business carried on in connection therewith may be conducted in a commercially reasonable manner.
5.11  Covenant to Guarantee Obligations and Give Security.  Execute any and all further documents, financing statements, agreements and instruments, and take all further action (including filing Uniform Commercial Code and other financing statements) that may be required under applicable requirements of law, or that the Required Lenders or the Agents may reasonably request, in order to effectuate the transactions contemplated by the Loan Documents and in order to grant, preserve, protect and perfect the validity and priority of the security interests created or intended to be created by the Loan Documents.  Notwithstanding anything to the contrary set forth herein, in no event shall this Section 5.11 require the granting of any Lien on any Excluded Assets.
5.12  ERISA.  (a) Make, or cause to be made, timely payment of contributions required to meet the requirements of the Pension Funding Rules with respect to each Single Employer Plan; (b) notify the Agents as soon as practicable (but in any event within five (5) Business Days) of any ERISA Event; and (c) furnish to the Agents, promptly upon Agent’s request therefor, such additional information concerning any Single Employer Plan as may be reasonably requested by the Agents from time to time.
5.13  Post-Closing Items. Within the time periods specified on Schedule 5.13 (or such later date to which the Agents consent in writing), comply with the provisions set forth in Schedule 5.13.

ARTICLE VI
NEGATIVE COVENANTS OF THE BORROWER
The Borrower covenants and agrees that, until payment, in full, of the Loans, with interest accrued and unpaid thereon, the Borrower will not and will not permit any of its Subsidiaries to do any of the following:
6.1  Debt.  Create, incur, assume, permit, guarantee, or otherwise become or remain, directly or indirectly, liable with respect to any Debt, except:
(a)  Debt evidenced by this Agreement and the other Loan Documents;
(b) Debt or amounts available under Debt facilities (whether or not drawn) existing on the A&R Effective Date and listed on Schedule 6.1 and any draws, refinancings, renewals or extensions thereof so long as: (i) such draws, refinancings, renewals, replacements or extensions do not result in an increase in the aggregate maximum principal amount of the Debt permitted under such Debt facilities so drawn, refinanced, renewed, or extended (other than for accrued interest and premiums and fees), (ii) such draws, refinancings, renewals, replacements, or extensions do not result in a shortening of the average weighted maturity of the Debt so drawn, refinanced, renewed, , replaced, or extended, nor are they on terms or conditions that, taken as a whole, are materially more burdensome or restrictive to the Borrower or any of its Subsidiaries, and (iii) the Debt that is drawn, refinanced, renewed, , replaced, or extended is not recourse to any Person that is liable on account of the Loans other than those Persons which were obligated with respect to the Debt that was drawn, refinanced, renewed, replaced, or extended; provided that, ACRC Lender (or its replacement, successor or permitted assign) may, to the extent the Borrower is in pro forma compliance with the covenants set forth in Section 6.12, increase the maximum commitments and amounts drawn by ACRC Lender (or its replacement, successor or permitted assign) under the City National Bank Facility in a proportionate amount equal to the aggregate amount of the proceeds of any Post-A&R Effective Date Equity Issuance (as defined below) divided by Tangible Net Worth as of the last day of the most recent Test Period so long as the increase in the maximum commitments and amounts drawn under the City National Bank Facility, when added together with unsecured Debt incurred by the Borrower in reliance on clause (t) below, does not exceed $200 million; 
(c) Warehousing Debt;
(d) Securitization Indebtedness; 
(e) Debt in respect of Capitalized Lease Obligations and Purchase Money Obligations financing an acquisition, construction, repair, replacement, lease or improvement of a fixed or capital asset incurred by the Borrower or any of its Subsidiaries within 270 days after the acquisition, construction, repair, replacement, lease or improvement of the applicable asset in an aggregate principal amount not to exceed $10,000,000;
(f) Contingent Obligations resulting from the endorsement of instruments for collection in the ordinary course of business;
(g) Debt between the Borrower and any of its Subsidiaries and so long as such Debt is evidenced by a promissory note and, to the extent such note constitutes Collateral, it is delivered to the 

Collateral Agent and subordinated pursuant to an Intercompany Subordination Agreement to the extent requested by the Lenders;
(h) Debt which may be deemed to exist pursuant to any performance bonds, surety bonds, statutory bonds, appeal bonds or similar obligations incurred in the ordinary course of business; 
(i) Debt in respect of netting services, overdraft protections and otherwise in connection with deposit accounts incurred in the ordinary course of business;
(j) guaranties in the ordinary course of business of the obligations of suppliers, customers, franchisees and licensees of the Borrower and its Subsidiaries; 
(k) Debt of the Borrower or any of its Subsidiaries in respect of letters of credit, bank guarantees, bankers’ acceptances, warehouse receipts or similar instruments created or issued in the ordinary course of business in connection with workers’ compensation claims, health, disability or other employee benefits or property, casualty or liability insurance or self-insurance or other Debt with respect to reimbursement-type obligations regarding workers’ compensation claims;
(l)  Debt owing to any insurance company in connection with the financing of any insurance premiums permitted by such insurance company in the ordinary course of business in an amount not exceed $1,000,000 at any time outstanding;
(m) (i) Debt representing deferred compensation or stock-based compensation incurred in the ordinary course of business and (ii) Debt issued by the Borrower or any Subsidiary to current or former officers, directors, employees, managers and consultants, and their respective personnel, estates, spouses or former spouses, of any the Borrower or any Subsidiary, in lieu of or combined with cash payments, to finance the purchase or redemption by any such Person of Securities of the Borrower or any Subsidiary, in each case, to the extent such purchase or redemption is permitted by Section 6.4;
(n)  for the avoidance of doubt, any amounts payable by the Borrower or any of its Subsidiaries with respect to declared and unpaid dividends that were permitted by Section 6.4 at the time of declaration;
(o)  Debt of the Borrower or any of its Subsidiaries under any Swap Agreements so long as such Swap Agreements are used solely as a part of its normal business operations as a risk management strategy or a hedge against changes resulting from market operations and not as a means to speculate for investment purposes on trends and shifts in financial or commodities markets;
(p)  Debt incurred in the ordinary course of business under incentive, non-compete, consulting, deferred compensation, or other similar arrangements incurred by the Borrower or any of its Subsidiaries;
(q)  Debt in respect of Taxes, governmental assessments or governmental charges to the extent that payment thereof shall not at the time be required to be made hereunder;
(r)unsecured Debt of the Borrower or any A&R Effective Date Subsidiary that (1) is fully and expressly subordinated to the Borrower’s obligations under this Agreement and which cannot be paid prior to payments due under this Agreement following the occurrence and continuation of an Event of Default and (2) has a final maturity no earlier than 91 days following the Maturity Date and (3) has an All-In Yield that will not be more than 2.0% higher than the corresponding All-In Yield (after giving effect to interest rate margins, OID (with OID being equated to interest based 

on an assumed life to maturity) and upfront fees (which shall be deemed to constitute like amounts of OID), but excluding any arrangement, structuring or other fees payable in connection therewith that are not shared with all lenders providing such unsecured indebtedness) for the existing Credit Facilities;  
(s)  [Reserved]
(t)  unsecured Debt of the Borrower or any A&R Effective Date Subsidiary in an amount not to exceed three times any amounts of common or preferred equity capital raised by the Borrower since the A&R Effective Date (“Post-A&R Effective Date Equity Issuance”) consisting of the issuance of unsecured senior or subordinated notes or loans, in each case issued in a public offering or private placement or bridge in lieu of the foregoing; provided that (x) any such Debt shall not, when added together with any increase in the maximum commitments and amounts drawn by ACRC Lender under the City National Bank Facility in reliance on clause (b) above, exceed $200 million, (y) after giving pro forma effect to the incurrence of the unsecured Debt (and after giving effect to all customary pro forma events and adjustments) and the Post-A&R Effective Date Equity Issuance, the Borrower would not be in breach of the financial covenants under Section 6.12, and (z) such unsecured Debt (i) will have a final maturity no earlier than 91 days following the Maturity Date, (ii) shall have a weighted average life to maturity that is no shorter than the weighted average life to maturity of the Loans and (iii) shall have an All-In Yield that will not be more than 2.0% higher than the corresponding All-In Yield (after giving effect to interest rate margins, OID (with OID being equated to interest based on an assumed life to maturity) and upfront fees (which shall be deemed to constitute like amounts of OID), but excluding any arrangement, structuring or other fees payable in connection therewith that are not shared with all lenders providing such unsecured Debt) for the existing Loans; 
(u)  Debt assumed or incurred by any Subsidiary with respect to any Asset acquired by such Subsidiary as a result of a foreclosure, deed-in-lieu or other similar proceeding or transactions in connection with the ownership by such Subsidiary of any Senior Commercial Real Estate Loans, Senior Commercial Real Estate Construction Loans, Mezzanine Loans, Subordinated Commercial Real Estate Loans or Preferred Equity Investment so long as, with respect to any new Debt that is incurred, the loan-to-value ratio of such Debt does not exceed 70% at the time incurred (it being understood that any such Debt shall be non-recourse to the Borrower and the documents governing such Debt may include customary carve-outs to limit recourse such as recourse to the Borrower for environmental matters, fraud, misrepresentation or voluntary and involuntary bankruptcy filings); 
(v)  Debt of any Subsidiary on any Asset of such Subsidiary which is a Triple Net Leased Property (so long as the loan-to-value ratio of such Debt does not exceed 70% at the time incurred) in an aggregate amount not to exceed $50,000,000 at any time outstanding (it being understood that any such Debt shall be non-recourse to the Borrower and the documents governing such Debt may include customary carve-outs to limit recourse such as recourse to the Borrower for environmental matters, fraud, misrepresentation or voluntary and involuntary bankruptcy filings); 
(w)  other unsecured Debt of the Borrower or any of its Subsidiaries, including guarantee obligations, in an aggregate principal amount not to exceed $10,000,000; and
(x)  Debt in an amount not to exceed $25,000,000 which Debt may (but is not required to) be incurred in the form of Incremental Term Loans under and in accordance with Section 2.15; provided that such Debt is incurred in the form of Incremental Term Loans or is otherwise secured on a pari passu basis with the Loans, the Borrower shall first offer to the then existing Lenders the opportunity to provide such Debt a pro rata basis in accordance with their Pro Rata Shares (and on 

a non-pro rata basis, pursuant to terms acceptable to the Agents, with respect to the then existing Lenders that elect to cover declining Lenders’ declined amounts) and may be made at the election of each such existing Lender (it being understood that no existing Lender will have any obligation to provide any portion of such Debt unless it so agrees in writing), and then, to the extent any amounts remain uncommitted to by the then existing Lenders; provided that, to the extent such Lenders have not provided a non-binding indication of interest to provide such commitment within 5 Business Days following the date of such offer and a written commitment on terms and conditions satisfactory to the Borrower within 5 Business Days following the date of such offer or have otherwise rejected such offer, after being provided such opportunity to do so, then the Borrower may offer to any other Eligible Assignee (which may include existing Lenders) to provide such Debt.
For the avoidance of doubt, Post-A&R Effective Date Equity Issuances shall not include any Cash Cure Amounts.
6.2  Liens.  Create, incur, assume, or permit to exist, directly or indirectly, any Lien on or with respect to any of its Assets, of any kind, whether now owned or hereafter acquired, or any income or profits therefrom, except:
(a)  Permitted Collateral Liens;
(b)  Liens on the Securities of any Securitization Entity (or Securities of a direct holding company of any Securitization Entity) to the extent such Liens are permitted to be incurred by such Securitization Entity;
(c)  Liens on Assets securing Debt permitted under Sections 6.1(a), (c), (d), (e), (k), (o), (t) and (v) (subject to the express limitations set forth in clause (b) above and clauses (d) and (e) below); provided that, with respect to any Liens securing Debt permitted under Section 6.1(o), such Liens shall be permitted to the extent they are created, incurred, or exist on or with respect to cash, Cash Equivalents and/or letters of credit (and proceeds thereof) in an aggregate amount not to exceed 10% of the Tangible Net Worth of the Borrower and its Subsidiaries;
(d)  Liens on Senior Commercial Real Estate Loans and Senior Commercial Real Estate Construction Loans to the extent securing Debt permitted under Section 6.1(b), (c) and (d) and Liens on Mezzanine Loans, Subordinated Commercial Real Estate Loans and Preferred Equity Investments to the extent securing Debt permitted under Sections 6.1(c) and (d); and
(e)  Liens on Mezzanine Loans, Subordinated Commercial Real Estate Loans and Preferred Equity Investments to the extent securing the City National Bank Facility described in clause (i) of the definition thereof in an amount not to exceed a minimum aggregate principal amount of Mezzanine Loans, Subordinated Commercial Real Estate Loans and Preferred Equity Investments that would be required to satisfy the borrowing base requirement applicable to the maximum facility amount permitted under such City National Bank Facility (including, without limitation, any increases in the City National Bank Facility described in clause (i) of the definition thereof pursuant to Section 6.1(b));
(f)  Liens securing Debt or amounts available under Debt facilities (whether or not drawn) existing on the A&R Effective Date and listed on Schedule 6.2; and
(g)  other Liens with respect to obligations that do not exceed $10,000,000 in the aggregate at any time outstanding.

6.3  Debt Prepayments. Make or offer to make (or give any notice in respect thereof) any optional or voluntary payment, prepayment, repurchase or redemption of, or voluntarily or optionally defease, or otherwise satisfy prior to the scheduled maturity thereof in any manner, any Debt (other than the Loans and, for the avoidance of doubt, any revolving credit facilities, overdraft lines of credit or other similar revolving obligations); except that (a) the Borrower or any of its Subsidiaries may make such voluntary payments, repayments, repurchases or redemptions of, or voluntary or optional defeasements, or otherwise satisfy prior to the scheduled maturity thereof in any manner (other than payments, repayments, repurchases, redemptions or defeasements constituting Extraordinary Restricted Payments), any Debt so long as (i) no Event of Default or Default has occurred and is continuing or would result therefrom and (ii) the Borrower is in pro forma compliance with the financial covenants set forth in Section 6.12 immediately before and after giving effect to such payments and (b) the Borrower shall be permitted to make Extraordinary Restricted Payments so long as, after giving effect to such Extraordinary Restricted Payment, (i) no Event of Default or Default has occurred and is continuing or would result therefrom, (ii) the Total Net Leverage Ratio as tested on a pro forma basis for the most recently ended fiscal quarter is not greater than 4.50:1.00 and (iii) the Asset Coverage Ratio as tested on a pro forma basis for the most recently ended fiscal quarter is at least 115%.  For the avoidance of doubt, notwithstanding any other provision in any Loan Document, ACRC Lender shall be permitted at all times to repay and/or reborrow any Debt under the City National Bank Facility so long as the aggregate principal amount of commitments thereunder are not terminated in full,.
6.4  Dividends. The Borrower shall not make or declare, directly or indirectly, any dividend or other payment or distribution on account of any interest of any class of equity securities in Borrower, whether now or hereafter outstanding (collectively, a “Distribution”); except (a) the Borrower may make Distributions (other than Extraordinary Restricted Payments) so long as (i) no Event of Default or Default has occurred and is continuing or would result therefrom and (ii) the Borrower is in pro forma compliance with the financial covenants set forth in Section 6.12 immediately before and after giving effect to such Distribution; (b) notwithstanding anything to the contrary, the Borrower may make Distributions at any time to its shareholders in an amount necessary to maintain its status as a “real estate investment trust” as defined in Section 856 the Code (“REIT”) and avoid the imposition of income and excise tax on the Borrower and (c) the Borrower shall be permitted to make Extraordinary Restricted Payments so long as, after giving effect to such Extraordinary Restricted Payment, (i) the Total Net Leverage Ratio as tested on a pro forma basis for the most recently ended fiscal quarter is not greater than 4.50:1.00 and (ii) the Asset Coverage Ratio as tested on a pro forma basis for the most recently ended fiscal quarter is at least 115%. 
6.5  Restriction on Fundamental Changes.  Change its name, change the nature of its business, enter into any merger, consolidation, reorganization, or recapitalization, or reclassify its partnership interests (whether limited or general) or membership interests, as applicable, or convey, sell, assign, lease, transfer, or otherwise dispose of, in one transaction or a series of transactions, all or any substantial part of its business or Assets, whether now owned or hereafter acquired (each, a “Fundamental Change”) except:
(a)  Borrower or any of its Subsidiaries may sell Assets in accordance with the provisions of Section 6.6;
(b)  Borrower or any of its Subsidiaries may change its name or corporate, partnership or limited liability structure so long as (i) the Loan Parties provide written notice thereof (together with copies of any documents evidencing any such change) to the Agents on or before the date that is 10 Business Days prior to the date when such name or structure change occurs and (ii) any other Subsidiaries of the Borrower provide written notice thereof (together with copies of any documents evidencing any such change) to the Agents on or before the date that is 30 days after the date when such name or structure change occurs; and

(c)  the conveyance, sale, assignment, lease, transfer, or other disposal of all or any substantial part of its business or Collateral, merger, consolidation or reorganization of any Person, on the one hand, with and into the Borrower or any of its Subsidiaries, provided that (i) the Lender Group’s rights in any Assets, including, without limitation, the existence, perfection and priority of any Lien thereon, are not adversely affected by such merger, consolidation or reorganization, (ii) upon the consummation of such conveyance, sale, assignment, lease, transfer, or other disposal of all or any substantial part of its business or Assets, merger, consolidation or reorganization, the Borrower and any applicable Subsidiary expressly reaffirms its Obligations to the Lender Group under this Agreement and the other Loan Documents to which it is a party and (iii) such acts do not result in a Change of Control Event.
6.6  Sale of Assets.  Sell, assign, transfer, convey, or otherwise dispose of its Assets (any such transaction, a “Sale”), whether now owned or hereafter acquired, except for (a) any Sale of obsolete, worn out or surplus tangible property, (b) any Sale of Assets for the liquidation, dissolution or winding up of a wholly-owned Subsidiary of the Borrower (i) if from a non-Loan Party Subsidiary, to any another Subsidiary and (ii) if from a Loan Party, to another Loan Party, (c) any transaction permitted by Sections 6.4 or 6.5 of this Agreement; (d) any Sale pursuant to, or in connection with, any Securitization Transaction or Warehousing Debt; or (e) any other Sale of Assets of the Borrower and the Subsidiaries so long as (i) the Borrower is in compliance with the financial covenants set forth in Section 6.12 immediately before such Sale of Assets, and immediately after giving effect thereto, (ii) any such Sale of Assets shall be for fair market value consideration (as determined by the Borrower in good faith and consistent with the Assigned Value given such Asset for purposes of this Agreement in the most recent Borrowing Base Certificate delivered to the Agents) and of which at least 75% of such consideration shall be comprised of cash or Cash Equivalents and (iii) no Default or Event of Default has occurred and is continuing or would result therefrom, in each case, immediately prior to and after giving effect to such Sale for fair market value.
6.7  Transactions with Shareholders and Affiliates.  Enter into or permit to exist, directly or indirectly, any transaction (including the purchase, sale, lease, or exchange of any Asset or the rendering of any service) with any holder of 10% or more of any class of Securities of the Borrower or any of its Subsidiaries or Affiliates, or with any Affiliate of the Borrower or of any such holder, in each case other than (x) a Loan Party or (y) any Subsidiary of the Borrower, on terms that are less favorable to such Subsidiary, than those terms that might be obtained at the time from Persons who are not such a holder, Subsidiary, or Affiliate, or, if such transaction is not one in which terms could be obtained from such other Person, on terms that are no less favorable than terms negotiated in good faith on an arm’s length basis.  Prior to the Borrower or any of its Subsidiaries engaging in any such transaction described in this Section 6.7, other than transactions in de minimis amounts, the Borrower shall determine that such transaction has been negotiated in good faith and on an arm’s length basis.  In no event shall the foregoing restrictive covenant apply to (a)  any transaction permitted by Section 6.4, or (b) transactions involving the use, transfer, or other disposition of any Asset, to the extent that (i) the Distribution by the Borrower of such Asset would not have violated this Agreement and (ii) such use, transfer, or other disposition would not otherwise result in an Event of Default or an Default. 
6.8  Conduct of Business.  Engage in any business other than the business to which it is engaged as of the A&R Effective Date and any related businesses or activities substantially similar or related thereto or reasonable extensions of any such business or activities including, without limitation, the commercial real estate mortgage business, commercial real estate brokerage business, commercial real estate business, commercial real estate-related securities acquisitions and acquisitions of MSRs.
6.9  Amendments or Waivers of Certain Documents; Actions Requiring the Consent of the Agents.  Agree to any amendment to or waiver of the terms or provisions of its Governing Documents except for 

amendments or waivers which would not, either individually or collectively, be materially adverse to the interests of the Lender Group.
6.10  Limitation on Negative Pledges.  Enter into or suffer to exist or become effective any agreement or other arrangement that prohibits, restricts or imposes any condition upon the ability of the Borrower or any of its Subsidiaries to create, incur, assume or suffer to exist any Lien upon any Collateral (other than Securities in Securitization Entities), whether now owned or hereafter acquired, to secure the Obligations, except for any restrictions that:
(a)  exist under this Agreement and the other Loan Documents;
(b)  exist on the date hereof and (to the extent not otherwise permitted by this Section 6.10) are listed on Schedule 6.10 hereto;
(c)  are binding on a Subsidiary or its Assets at the time such Subsidiary or its Assets first becomes a Subsidiary or owned by a Subsidiary, as applicable, so long as such restrictions were not entered into solely in contemplation of such Person becoming a Subsidiary;
(d)  are customary restrictions and conditions contained in any agreement relating to any transaction permitted by Section 6.6 pending the consummation of such transaction; provided that such restrictions and conditions apply only to the property that is the subject of such transaction and not to the proceeds to be received by the Borrower or any of its Subsidiaries in connection with such transaction;
(e)  are customary restrictions in leases, subleases, licenses or asset sale agreements otherwise permitted hereby so long as such restrictions relate solely to the assets subject thereto;
(f)  are customary provisions restricting subletting or assignment of any lease governing a leasehold interest of the Borrower or any Subsidiary;
(g)  are customary provisions restricting assignment or transfer of any agreement entered into in the ordinary course of business; and
(h)  are amendments, modifications, restatements, refinancings or renewals of the agreements, contracts or instruments referred to in Section 6.10(b) through (g) above; provided that such amendments, modifications, restatements, refinancings or renewals, taken as a whole, are not materially more restrictive with respect to such encumbrances and restrictions than those contained in such predecessor agreements, contracts or instruments.
6.11  Margin Regulation.  Use any portion of the proceeds of any of the Loans in any manner which could reasonably be expected to cause the Loans, the application of such proceeds, or the Transactions to violate Regulations T, U or X of the Federal Reserve Board, or any other regulation of such board, or to violate the Exchange Act, or to violate the Investment Company Act of 1940.
6.12  Financial Covenants.  The Borrower shall not: 
(a)  Minimum Asset Coverage Ratio. Commencing with the fiscal quarter ending December 31, 2021, permit the Asset Coverage Ratio on the last day of each Test Period, be less than 115%.
(b)  Minimum Unencumbered Asset Ratio.  Commencing with the fiscal quarter ending December 31, 2021, permit the  Unencumbered Asset Ratio on the last day of each Test Period, be less than 125%.

(c)  Maximum Total Net Leverage Ratio.  Commencing with the fiscal quarter ending December 31, 2021, permit the Total Net Leverage Ratio on the last day of each Test Period to exceed 4.50:1.00
(d)Minimum Tangible Net Worth.  Permit the Tangible Net Worth on the last day of each Test Period (commencing with the fiscal quarter ending December 31, 2021), to be less than the amount equal to the sum of (i) eighty percent (80%) of the Borrower’s and its Subsidiaries’ Tangible Net Worth as of September 30, 2021, which Tangible Net Worth is equal to $708,278,355 as of such date, plus (ii) eighty percent (80%) of the net proceeds (after deducting transaction costs) that the Borrower and its Subsidiaries receive from issuances of preferred equity or common equity.
(e)  Loan Concentration.  Permit less than 65.0% of loans held for investment (as defined in the consolidated balance sheet of the Borrower) by the Borrower to be comprised of Senior Commercial Real Estate Loans, as measured by the average daily outstanding principal balance of all loans held for investment (as defined in the consolidated balance sheet of the Borrower) during a fiscal quarter and as adjusted for non-controlling interests.
(f)  Minimum Interest Coverage Ratio.  Commencing with the fiscal quarter ending December 31, 2021, permit the Interest Coverage Ratio on the last day of each Test Period to be less than 1.10:1.00.
(g)  Facilities with Other Lenders.  In the event that the Borrower shall enter into, or shall amend or modify, any other agreement for pari passu Debt (for the avoidance of doubt, excluding any guarantee made by the Borrower with respect to any commercial real estate loan revolving repurchase agreement or commercial real estate loan revolving secured warehouse facility) with any other lender (each as in effect after giving effect to all amendments thereof, a “Third Party Agreement”) which Third Party Agreement includes any financial covenant that is comparable to any of the financial covenants set forth in this Agreement or in any other Loan Document, and such comparable financial covenant is more restrictive to the Borrower or otherwise more favorable to the related lender or buyer thereunder than any financial covenant set forth in this Agreement or in any other Loan Document, or is in addition to any financial covenant set forth in this Agreement or in any other Loan Document (each, a “Third Party Financial Covenant”), then such Third Party Financial Covenant shall, for so long as such other facility remains outstanding, with no further action required on the part of the Borrower or the Agents, automatically become a part of this Agreement or any other Loan Document and be incorporated herein and/or therein, and the Borrower hereby covenants to maintain compliance with such Third Party Financial Covenant as required under such Third Party Agreement at all times throughout the remaining term of this Agreement to the extent that, and for so long as, such Third Party Agreement (and related Third Party Financial Covenant) remains in effect. In connection herewith, the Borrower agrees to promptly notify (in writing) Agents of the execution of any agreement or other document that would cause the provisions of this Section 6.12(g) to become effective. Each party agrees to execute and deliver any new guaranties, agreements or amendments to this Agreement or any other Loan Document necessary to evidence all such new or modified provisions, provided that the execution of such amendment shall not be a precondition to the effectiveness of such amendment, but shall merely be for the convenience of the parties hereto and thereto.
6.13  Plans.  No Loan Party shall become a party to any Multiemployer Plan or Single Employer Plan other than any such plan to which the Loan Party as a party on the date of this Agreement without first notifying the Agents, or fail to meet all of the requirements of the Pension Funding Rules with respect to a Single Employer Plan.  No Loan Party shall, or shall cause or permit any ERISA Affiliate to (a) cause or permit to occur any event that could result in the imposition of a Lien against a Loan Party under the 

Pension Funding Rules or (b) cause or permit to occur an ERISA Event which could reasonably be expected to have a Material Adverse Effect.
ARTICLE VII
EVENTS OF DEFAULT AND REMEDIES
7.1  Events of Default.  The occurrence of any one or more of the following events, acts, or occurrences shall constitute an event of default (“Event of Default”) hereunder:
(a)  Failure to Make Payments When Due.
(i)  Any Loan Party shall (A) fail to pay any amount owing hereunder with respect to the principal of any of the Loans when such amount is due, whether at stated maturity, by acceleration, or otherwise or (B) fail to comply with Section 2.8(b); or
(ii)  Any Loan Party shall fail to pay, within three (3) Business Days of the date when due, any amount owing hereunder with respect to interest on any of the Loans or with respect to any other amounts (including fees, costs, or expenses) other than the amounts specified in clause (i) above, payable in connection herewith. 
(b)  Breach of Certain Covenants.
(i)  Any Loan Party shall fail to perform or comply with any covenant, term, or condition contained in Article VI of this Agreement; provided that an Event of Default with respect to Section 6.12 shall not occur until the Cure Expiration Date; and
(ii)  Any Loan Party shall fail to perform or comply with any other covenant, term, or condition contained in this Agreement or other Loan Documents to which it is a party and such failure shall not have been remedied or waived within 20 days after the earlier of (x) knowledge of the occurrence thereof by the Borrower or (y) receipt of notice from any Agent of the occurrence thereof; provided, however, that this clause (ii) shall not apply to: (1) the covenants, terms, or conditions referred to in subsections (a) and (c) of this Section 7.1; or (2) the covenants, terms, or conditions referred to in clause (i) above of this subsection (b). 
(c) Breach of Representation or Warranty.  Any financial statement, representation, warranty, or certification made or furnished by the Borrower or any other Loan Party under this Agreement or in any document, letter, or other writing or instrument furnished or delivered by the Borrower to any Agent or any Lender pursuant to or in connection with this Agreement or any other Loan Document to which it is a party shall have been false, incorrect, or incomplete in any material respect (except that such materiality qualifier shall not be applicable to any representation or warranty to the extent that such representation or warranty is qualified or modified by materiality or “Material Adverse Effect”) when made, deemed made or reaffirmed, as the case may be.
(d)  Involuntary Bankruptcy. 
(i)  If an involuntary case seeking the liquidation or reorganization of any of the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) under Chapter 7 or Chapter 11, respectively, of the Bankruptcy Code or any similar proceeding shall be commenced against the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) under any other applicable law and any of the following events occur: (1) such Person consents to 

the institution of the involuntary case or similar proceeding; (2) the petition commencing the involuntary case or similar proceeding is not timely controverted; (3) the petition commencing the involuntary case or similar proceeding is not dismissed within 60 days of the date of the filing thereof; provided, however, that, during the pendency of such period, the Lender Group shall be relieved of its obligation to make additional Loans; (4) an interim trustee is appointed to take possession of all or a substantial portion of the Collateral of the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries); or (5) an order for relief shall have been issued or entered therein.
(ii)  A decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, custodian, trustee, or other officer having similar powers over the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) to take possession of all or a substantial portion of its Collateral shall have been entered and, within 60 days from the date of entry, is not vacated, discharged, or bonded against, provided, however, that, during the pendency of such period, the Lender Group shall be relieved of its obligations to make additional Loans.
(e)  Voluntary Bankruptcy.  The Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) shall institute a voluntary case seeking liquidation or reorganization under Chapter 7 or Chapter 11, respectively, of the Bankruptcy Code; the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) shall file a petition, answer, or complaint or shall otherwise institute any similar proceeding under any other applicable law, or shall consent thereto; the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) shall consent to the conversion of an involuntary case to a voluntary case; or the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) shall consent or acquiesce to the appointment of a receiver, liquidator, sequestrator, custodian, trustee, or other officer with similar powers to take possession of all or a substantial portion of its Collateral; the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) shall generally fail to pay debts as such debts become due or shall admit in writing its inability to pay its debts generally; or the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) shall make a general assignment for the benefit of creditors.
(f)  Dissolution.  Any order, judgment, or decree shall be entered decreeing the dissolution of the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries), and such order, judgment or decree shall remain undischarged or unstayed for a period in excess of 60 days.
(g)  Change of Control.  A Change of Control Event shall occur. 
(h)  Judgments and Attachments.  The Borrower or any of its Subsidiaries shall suffer any money judgment, writ, or warrant of attachment, or similar process involving payment of money in an amount, net of any portion thereof that is covered by or recoverable by the Borrower or such Subsidiary under applicable insurance policies (if any) in excess of $15,000,000 and shall not discharge, vacate, bond, or stay the same within a period of 60 days.
(i)  Guaranty.  (1) If the obligation of any Guarantor under the Guaranty is limited or terminated by operation of law or such Guarantor thereunder, (2) if any Guarantor shall fail to perform or comply with any covenant, term, or condition contained in the Guaranty or (3) any financial statement, representation, warranty, or certification made or furnished by any Guarantor under this Agreement, the Guaranty or in any document, letter, or other writing or instrument furnished or delivered by such Guarantor to any Agent or any Lender pursuant to or in connection with this Agreement, the Guaranty or any other Loan Document to which it is a party, or as an inducement to the Lender Group to enter into this Agreement or any other Loan Document shall have been 

false, incorrect, or incomplete in any material respect (except that such materiality qualifier shall not be applicable to any representation or warranty to the extent that such representation or warranty is qualified or modified by materiality or “Material Adverse Effect”) when made, deemed made or reaffirmed, as the case may be.  
(j)  Cross-Default.  The Borrower or any of its Subsidiaries shall be in default relating to Debt (other than Debt evidenced by this Agreement) which is outstanding in excess of a principal amount of $15,000,000, individually or in the aggregate, and such default shall continue beyond any and all applicable grace, cure and notice periods relating to such Debt (as such periods may be extended with the approval of the applicable counterparties to such Debt and by the Required Lenders).
(k)  ERISA.  There occurs one or more other ERISA Events which has resulted or could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect. 
(l)  Agent’s Liens.  If any Loan Document that purports to create a Lien shall fail or cease to create, except to the extent permitted by the terms of any such Loan Document, a valid and perfected Lien on the Collateral; and
(m)  Loan Documents.  Any provision of any Loan Document shall at any time for any reason be declared to be null and void, or the validity or enforceability thereof shall be diligently contested by any Loan Party or the Negative Pledgor Subsidiary, or a proceeding shall be commenced by any Loan Party, or the Negative Pledgor Subsidiary or by any Governmental Authority having jurisdiction over any Loan Party or the Negative Pledgor Subsidiary, seeking to establish the invalidity or unenforceability thereof, or any Loan Party or the Negative Pledgor Subsidiary shall deny in writing that any Loan Party or the Negative Pledgor Subsidiary has any liability or obligation purported to be created under any Loan Document. 
7.2  Remedies.  Upon the occurrence of an Event of Default:
(a)  If such Event of Default arises under subsections (d) or (e) of Section 7.1 hereof, then the Delayed Draw Term Loan Commitments (if any) hereunder immediately shall terminate and all of the Obligations owing hereunder or under the other Loan Documents automatically shall become immediately due and payable, without presentment, demand, protest, notice, or other requirements of any kind, all of which are hereby expressly waived by the Borrower; and
(b)  In the case of any other Event of Default that has occurred and is continuing, the Required Agents may declare the Delayed Draw Term Loan Commitments hereunder terminated and all of the Obligations owing hereunder or under the Loan Documents to be, and the same immediately shall become due and payable, without presentment, demand, protest, further notice, or other requirements of any kind, all of which are hereby expressly waived by the Borrower.
Upon any exercise of rights pursuant to Sections 7.2(a) and (b) above, the Agents (without notice to or demand upon the Borrower, which are expressly waived by the Borrower to the fullest extent permitted by law), shall be entitled to proceed to protect, exercise, and enforce the Lender Group’s rights and remedies hereunder or under the other Loan Documents, or any other rights and remedies as are provided by law or equity.  The Agents may determine, in their sole discretion, the order and manner in which the Lender Group’s rights and remedies are to be exercised.  All payments received by the Agents shall be applied in accordance with Section 2.3(a)(ii). 
7.3  Borrower’s Right to Cure. 

(a)  Notwithstanding anything to the contrary contained in Section 7.1, for purposes of determining whether an Event of Default has occurred under any financial covenant set forth in Sections 6.12, any cash received by the Borrower after the last day of the fiscal quarter in respect of which such Event of Default has occurred and on or prior to the date that is five (5) Business Days after the date on which financial statements are required to be delivered for such fiscal quarter (the “Cure Expiration Date”) will, at the request of the Borrower, be included in the calculation of Borrowing Base or the Borrowing Base Eligible Assets solely for the purposes of determining compliance with the financial covenants set forth in Sections 6.12 at the end of such fiscal quarter and any subsequent period that includes such fiscal quarter (a “Cash Cure Amount”); provided that (a) the amount of any Cash Cure Amount and the use of proceeds therefrom will be no greater than the amount required to cause the Borrower to be in compliance with the financial covenants set forth in Section 6.12 and (b) the proceeds of all Cash Cure Amounts shall be applied to prepay the Loans and accompanied by the applicable Prepayment Premium required by Section 2.8(d) (if any).  Upon the delivery of the Cash Cure Amount to the Borrower prior to the Cure Expiration Date, any Event of Default that has occurred pursuant to Section 6.12 shall be deemed to not have occurred and, for the avoidance of doubt, neither any Agent nor any Lender shall exercise the right to accelerate the Loans or terminate the Delayed Draw Term Loan Commitments and none of any Agent, any Lender or any Secured Party shall exercise any right to foreclose on or take possession of the Collateral or exercise any other remedy pursuant to Section 7.2, the other Loan Documents or applicable law prior to the Cure Expiration Date solely on the basis of an Event of Default having occurred and continuing under Section 6.12 (except to the extent that the Borrower has confirmed that in writing that it does not intend to provide a Cash Cure Amount).  For the avoidance of doubt, the Borrower shall not be able to obtain any Loan hereunder until receipt by the Agents of the Cash Cure Amount; and
(b)  Notwithstanding anything to the contrary herein, the Borrower shall (to the extent capable of cure) have five (5) Business Days to cure any event that would give rise to a reduction in value of any Borrowing Base Eligible Asset, including, for the avoidance of doubt, a VAE and any event described in Section 11.5. 
ARTICLE VIII
EXPENSES AND INDEMNITIES
8.1  Expenses.  The Borrower shall pay without duplication, (i)  all reasonable and documented out-of-pocket costs and expenses (except allocated costs of in-house counsel) reasonably incurred by the Agents and the Lenders in connection with the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents, or any amendments, modifications or waivers of the provisions hereof or thereof, including the reasonable and documented fees, charges and disbursements of counsel (but limited to (A) one primary counsel for the Agents, (B) one primary counsel for the Lenders and (C) if necessary, one local counsel in each relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) and in the case of an actual or perceived conflict of interest, where the party affected by such conflict, informs the Borrower of such conflict and thereafter retains its own counsel, of another firm of counsel for each such affected person); provided, however, that the Borrower is not obligated to reimburse the Lenders for out-of-pocket costs and expenses incurred on or before the A&R Effective Date in connection with the preparation of this Agreement and the other Loan Documents to the extent that such out-of-pocket costs and expenses exceed $300,000 (the “Expenses Cap”) unless, at any Lender’s reasonable request from time to time, the Borrower consents (such consent not to be unreasonably, withheld, conditioned or delayed) to reimburse the Lenders for any out-of-pocket costs and expenses incurred on or before the A&R Effective Date that exceed the Expenses Cap, (ii) all out-of-

pocket costs and expenses incurred by each Agent or each Lender (including the fees, charges and disbursements of any counsel for any Agent or any Lender) in connection with the development, preparation, negotiation and execution of any amendment, waiver, consent or other modification of the provisions of this Agreement or any other Loan Document and the enforcement or protection of any rights and remedies under this Agreement (including, without limitation, with respect to the Collateral) and the other Loan Documents, including all such costs and expenses incurred during any legal proceeding, including any proceeding under any Debtor Relief Law, and including in connection with any workout, restructuring or negotiations in respect of the Credit Facilities and the Loan Documents, including the customary and reasonable fees, charges and disbursements of counsel and (iii) all out-of-pocket costs and expenses incurred by each Agent or each Lender (including the customary and reasonable fees, charges and disbursements of any counsel, third party pricing agent, trustee, tax administrator and other professionals indicated in writing by the Agent or any Lender) in connection with the day-to-day operation of the Lender as a trust; provided, that such expenses under this clause (iii) shall not exceed $45,000 per annum (collectively, the expenses set forth in clauses (i), (ii) and (iii), the “Lender Group Expenses”).
8.2  Indemnity.  In addition to the payment of expenses pursuant to Section 8.1 hereof, the Borrower agrees to indemnify, exonerate, defend, pay, and hold harmless the Agent-Related Persons and the Lender-Related Persons (collectively the “Indemnitees” and individually as “Indemnitee”) from and against any and all liabilities, obligations, losses, damages, penalties, actions, causes of action, judgments, suits, claims, costs, expenses, and disbursements of any kind or nature whatsoever (including the reasonable and documented fees and disbursements of (A) one primary counsel for the Agent-Related Persons, taken as a whole, (B) one primary counsel for the Lender-Related Persons, taken as a whole, and (C) if reasonably necessary, one local counsel in each relevant jurisdiction for the Agent-Related Persons and Lender-Related Persons (which may include a single special counsel acting in multiple jurisdictions) and in the case of an actual or perceived conflict of interest, where the party affected by such conflict informs the Borrower of such conflict and thereafter retains its own counsel, of another firm of counsel for each such affected person) in connection with any investigation, administrative, or judicial proceeding, whether such Indemnitee shall be designated a party thereto), that may be imposed on, incurred by, or asserted against such Indemnitee, in any manner relating to or arising out of the execution a, delivery, enforcement, performance, syndication or administration of any Loan Document or any other agreement, letter or instrument delivered in connection with the transactions contemplated thereby, the business or Assets of any Loan Party (to include, without limitation, any actual or alleged presence or release of Hazardous Material on or from any property currently or formerly owned or operated by Borrower, any Subsidiary or any other Loan Party, or any violation of any Environmental Law related in any way to the Borrower, and any Subsidiary or any other Loan Party), the Commitments, the use or intended use of the proceeds of the Loans or the consummation of the transactions contemplated by this Agreement, including any matter relating to or arising out of the filing or recordation of any of the Loan Documents which filing or recordation is done based upon information supplied by the Borrower to the Agents and its counsel (the “Indemnified Liabilities”); provided, that the Borrower shall have no obligation hereunder to any Indemnitee to the extent (x) that such Indemnified Liabilities are found in a final non-appealable judgment by a court of competent jurisdiction to have resulted from the gross negligence, bad faith, or willful misconduct of such Indemnitee or (y) any dispute solely among Indemnitees (other than any claims against an Indemnitee in its capacity or in fulfilling its role as an agent or arranger or any similar role hereunder or under any other Loan Document and other than any claims arising out of any act or omission of the Borrower).  The obligations of the Borrower under this Section 8.2 shall survive the termination of this Agreement and the discharge of the Borrower’s other obligations hereunder. This Section 8.2 shall not apply with respect to Taxes, which shall be governed by Section 10.11, other than any Taxes that represent liabilities, obligations, losses or damages, arising from a non-Tax claim.

ARTICLE IX
ASSIGNMENT AND PARTICIPATIONS
9.1  Successors and Assigns Generally.  (a)  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that, subject to Section 9.1(f), neither the Borrower nor any other Loan Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Agents and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of Section 9.1(b), (ii) by way of participation in accordance with the provisions of Section 9.1(d), or (iii) by way of pledge or assignment of a security interest subject to the restrictions of Section 9.1(e) (and any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in Section 9.1(d) and, to the extent expressly contemplated hereby, the Agent-Related Persons of each of the Agents and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(b)  Assignments by Lenders.  Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided that (in each case with respect to any Credit Facility) any such assignment shall be subject to the following conditions:
(i)  Minimum Amounts.  Except in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Acceptance with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000, unless the Required Agents and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents in writing (each such consent not to be unreasonably withheld or delayed). 
(ii)  Proportionate Amounts.  Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loan or the Commitment assigned, except that this clause (ii) shall not prohibit any Lender from assigning all or a portion of its rights and obligations among Delayed Draw Term Loan Commitments and Initial Term Loans on a non-pro rata basis.
(iii)  Required Consents.  No consent shall be required for any assignment except to the extent required by Section 9.1(b)(i) and, in addition:
(A)  the written consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) a Default (after expiry of any grace, cure and notice periods or as further extended with the approval of the Required Lenders) or an Event of Default has occurred and is continuing at the time of such assignment or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Agents within ten (10) Business Days after having received notice thereof (which notice shall provide, in bold type face, that if the Borrower does not object in writing to such assignment within ten Business Days, the Borrower’s consent shall have been deemed to have been provided); and

(B)  the consent of the Agents (such consent not to be unreasonably withheld or delayed) shall be required for assignments in respect of (i) any unfunded Commitments with respect to the Delayed Draw Term Loan Facility if such assignment is to a Person that is not a Lender with a Commitment in respect of such Term Loan Facility, an Affiliate of such Lender or an Approved Fund with respect to such Lender, or any Loans to a Person who is not a Lender, an Affiliate of a Lender or an Approved Fund. 
(iv)  Assignment and Acceptance.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance, together with a processing and recordation fee of $3,500; provided that the Required Agents may, in their sole discretion, elect to waive such processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall deliver to the Agents an Administrative Questionnaire, a duly executed IRAS Form W-9, or such other IRS Form as applicable, and all “know your customer” documentation requested by the Administrative Agent.
(v)  No Assignment to Certain Persons.  No such assignment shall be made to the Borrower or any of the Borrower’s Affiliates or Subsidiaries except as permitted by Section 9.1(f).
(vi)  Certain Additional Payments.  In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Required Agents, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Agents and each other Lender hereunder (and interest accrued thereon), in accordance with its applicable percentage.  Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.
Subject to acceptance and recording thereof by the Administrative Agent pursuant to Section 9.1(c), and receipt of all requirements under Section 9.1(b)(iv) by the Administrative Agent, from and after the Administrative Agent has recorded such Assignment and Acceptance in the Register, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Section 2.11, Section 8.1 and Section 8.2 with respect to facts and circumstances occurring prior to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with Section 9.1(d). 

(c)    Register.  The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices in Chicago, Illinois a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior written notice.  
(b)  Participations.
(i)  Any Lender may at any time, sell participations to any Person (other than a natural Person, or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person, or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent and Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.
(ii)  Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in  Sections 11.2(a)-(h) that affects such Participant.  The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.11, 2.16, and 10.11 (subject to the requirements and limitations therein, including the requirements under Section 10.11 (it being understood that the documentation required under Section 10.11 shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Section 2.16 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 2.11 or 10.11, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.13 as though it were a Lender; provided that such Participant agrees to be subject to Section 10.13 as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat 

each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.  
(iii)  No consent shall be required for any participation except that the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) a Default (after expiry of any grace, cure and notice periods or as further extended with the approval of the Required Lenders) or an Event of Default has occurred and is continuing at the time of such participation or (y) such participation is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that the Borrower shall be deemed to have consented to any such participation unless it shall object thereto by written notice to the Agents within ten (10) Business Days after having received notice thereof (which notice shall provide, in bold type face, that if the Borrower does not object in writing to such participation within ten Business Days, the Borrower’s consent shall have been deemed to have been provided).
(c)   Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
(d)  Assignments to Borrower and Borrower Affiliates. Notwithstanding anything in this Agreement to the contrary, any Lender may, at any time, assign all or a portion of its Loans on a pro rata basis to the Borrower or any Borrower Affiliate, subject to the following limitations: 
(i)  immediately and automatically, without any further action on the part of the Borrower, any Lender, any Agent or any other Person, upon the effectiveness of such assignment of Loans from a Lender to the Borrower, such Loans and all rights and obligations as a Lender related thereto shall, for all purposes under this Agreement, the other Loan Documents and otherwise, be deemed to be irrevocably prepaid, terminated, extinguished, cancelled and of no further force and effect (and which, for the avoidance of doubt, shall not constitute voluntary or mandatory payments or prepayments for purposes of Section 2.8 hereof) and the Borrower shall neither obtain nor have any rights as a Lender hereunder or under the other Loan Documents by virtue of such assignment such purchases (and the payments made by the Borrower and the cancellation of the purchased Loans, in each case in connection therewith);
(ii)  any Borrower Affiliate may, with the consent of the Borrower, including without limitation, in exchange for Debt or Securities permitted to be issued, contribute, directly or indirectly, the principal amount of such Loans or any portion thereof, plus all accrued and unpaid interest thereon, to the Borrower for the purpose of cancelling and extinguishing such Loans; provided that, upon the date of such contribution, assignment or transfer, (x) the aggregate outstanding principal amount of Loans shall reflect such cancellation and extinguishing of the Loans then held by the Borrower and (y) the Borrower shall promptly provide notice to the Agents of such contribution of such Loans, and the Administrative Agent, upon receipt of such notice, shall reflect the cancellation of the applicable Loans in the Register;
(iii)  (A) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to any Agent or any Lender to undertake 

any action (or refrain from taking any action) under, this Agreement or any other Loan Document, each applicable Borrower Affiliate will be deemed to have consented in the same proportion as the Lenders that are not Borrower Affiliate consented to such matter, unless such matter requires the consent of all or all affected Lenders and adversely affects such Borrower Affiliate more than other Lenders in any material respect, (B) for purposes of voting on any plan of reorganization or plan of liquidation pursuant to any Debtor Relief Laws (a “Bankruptcy Plan”), each Borrower Affiliate hereby agrees (x) not to vote on such Bankruptcy Plan, (y) if such Borrower Affiliate does vote on such Bankruptcy Plan notwithstanding the restriction in the foregoing clause (x), such vote will be deemed not to be in good faith and shall be “designated” pursuant to Section 1126(e) of the Bankruptcy Code (or any similar provision in any other Debtor Relief Laws), and such vote shall not be counted in determining whether the applicable class has accepted or rejected such Bankruptcy Plan in accordance with Section 1126(c) of the Bankruptcy Code (or any similar provision in any other Debtor Relief Laws) and (z) not to contest any request by any party for a determination by a court of competent jurisdiction effectuating the foregoing clause (y), in each case under this clause (B) unless such Bankruptcy Plan adversely affects such Borrower Affiliate more than other Lenders in any material respect and (C) each Borrower Affiliate hereby irrevocably appoints the Agents (such appointment being coupled with an interest) as such Borrower Affiliate’s attorney-in-fact, with full authority in the place and stead of such Borrower Affiliate and in the name of such Borrower Affiliate (solely in respect of Loans held by such Borrower Affiliate and not in respect of any other claim or status such Borrower Affiliate may otherwise have), from time to time in either Agent’s discretion to take any action and to execute any instrument that the Agents may deem reasonably necessary or appropriate to carry out the provisions of this Section 9.1(f)(iv), including to ensure that any vote of such Borrower Affiliate on any Bankruptcy Plan is withdrawn or otherwise not counted;
(iv)  the Borrower and any Borrower Affiliate shall represent and warrant, on the date of any such assignment, that neither it, its Affiliates nor any of its respective directors or officers has any Excluded Information that has not been disclosed to the Lenders generally (other than to the extent any such Lender does not wish to receive material non-public information with respect to the Borrower or its Subsidiaries or any of their respective securities) prior to such date;
(v)  all parties to the relevant transactions shall render customary “big boy” disclaimer letters; and
(vi)  no Event of Default shall have occurred and be continuing before or immediately after giving effect to such assignment.
ARTICLE X
AGENT; THE LENDER GROUP
10.1  Appointment and Authorization of Agent.  Each Lender under the Existing Credit Agreement has designated and appointed (and each Lender hereby reaffirms such designation and appointment) Cortland as the Administrative Agent and Collateral Agent as their representatives under this Agreement and the other Loan Documents and each Lender has irrevocably authorized (and each Lender hereby reaffirms such authorization) (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to designate, appoint, and authorize) each Agent to execute and deliver each of the other Loan Documents on its behalf and to take such other action on its behalf under the provisions of this Agreement 

and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to each Agent by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto.  The Agents agree in their respective capacities as Administrative Agent and Collateral Agent, as applicable, to act as agent for and on behalf of the Lenders (and the Bank Product Providers) on the express conditions contained in this Article X.  The provisions of this Article X (other than Section 10.9 and Section 10.11) are solely for the benefit of the Agents, and the Lenders, and the Borrower and its Subsidiaries shall have no rights as a third party beneficiary of any of the provisions contained herein.  The Agents shall not have any duties or responsibilities, except those expressly set forth herein, nor shall the Agents have or be deemed to have any fiduciary relationship with any Lender (or Bank Product Provider), and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Agents; it being expressly understood and agreed that the use of the word “Agent” is for convenience only, that the Agents are merely the representative of the Lenders, and only has the contractual duties set forth herein.  Without limiting the generality of the foregoing, the use of the term “agent” in this Agreement or the other Loan Documents with reference to Agents is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law.  Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only a representative relationship between independent contracting parties.  Each Lender hereby further authorizes (and by its entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to authorize) the Collateral Agent to act as the secured party under each of the Loan Documents that create a Lien on any item of Collateral.  Except as expressly otherwise provided in this Agreement, the Agents shall have and may use their sole discretion with respect to exercising or refraining from exercising any discretionary rights or taking or refraining from taking any actions that the Agents expressly are entitled to take or assert under or pursuant to this Agreement and the other Loan Documents.  Without limiting the generality of the foregoing, or of any other provision of the Loan Documents that provides rights or powers to the Agents, the Lenders agree that the Agents shall have the right to exercise the following powers as long as this Agreement remains in effect:  (a) maintain, in accordance with its customary business practices, ledgers and records reflecting the status of the Obligations, the Collateral, the Collections of the Borrower and its Subsidiaries, and related matters, (b) execute or file any and all financing or similar statements or notices, amendments, renewals, supplements, documents, instruments, proofs of claim, notices and other written agreements with respect to the Loan Documents, (c) make Loans, for itself (to the extent such Agent is also a Lender) or on behalf of Lenders as provided in the Loan Documents, (d) exclusively receive, apply, and distribute the Collections of the Borrower and its Subsidiaries as provided in the Loan Documents, (e) open and maintain such bank accounts and cash management arrangements as the Agents deem necessary and appropriate in accordance with the Loan Documents for the foregoing purposes with respect to the Collateral and the Collections of the Borrower and its Subsidiaries, (f) perform, exercise, and enforce any and all other rights and remedies of the Lender Group with respect to the Borrower, the Obligations, the Collateral, the Collections of the Borrower and its Subsidiaries, or otherwise related to any of same as provided in the Loan Documents, and (g) incur and pay such Lender Group Expenses as the Agents may deem necessary or appropriate for the performance and fulfillment of its functions and powers pursuant to the Loan Documents.  At least three Business Days prior to any Interest Payment Date and with respect to any other payment in respect of the Loans hereunder, promptly upon receipt of a prepayment notice from the Borrowers, the Administrative Agent shall provide the Lenders with a Payment Date Statement relating to such payment to Lenders.    
10.2  Delegation of Duties.  The Agents may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees or attorneys in fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties.  The Agents shall not be responsible for the negligence or misconduct of any agent or attorney in fact selected by it with reasonable care except to the extent that a court of competent jurisdiction determines in a final and non appealable judgment that the such Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.  In 

connection with perfecting its security interest in any Collateral which constitutes Instruments or certificated Pledged Securities, for so long as Cortland is the Collateral Agent under this Agreement, it shall appoint (and maintain an agreement with) a sub-agent who has secure and fire resistant facilities in accordance with customary standards for custody of Instruments and certificated Pledged Securities, who shall take possession of the related Collateral and maintain it in such location for purposes of custodial safe keeping.   
10.3  General Immunity.  
(a)    No Responsibility for Certain Matters.  No Agent shall be responsible to any Lender (or any other Secured Party) for the execution, effectiveness, genuineness, validity, enforceability, collectability or sufficiency hereof or any other Loan Document or for any representations, warranties, recitals or statements made herein or therein or made in any written or oral statements or in any financial or other statements, instruments, reports or certificates or any other documents furnished or made by any Agent to the Lenders (or any other Secured Party) or by or on behalf of any Loan Party to any Agent or any Lender (or any other Secured Party) in connection with the Loan Documents and the transactions contemplated thereby or for the financial condition or business affairs of any Loan Party or any other Person liable for the payment of any Obligations, nor shall any Agent be required to ascertain or inquire as to the performance or observance of any of the terms, conditions, provisions, covenants or agreements contained in any of the Loan Documents or as to the use of the proceeds of the Loans or as to the existence or possible existence of any Default or Event of Default or to make any disclosures with respect to the foregoing.  Anything contained herein to the contrary notwithstanding, the Agents shall not have any liability arising from confirmations of the amount of outstanding Loans or the component amounts thereof.
(b)    Exculpatory Provisions.  No Agent-Related Person shall be liable for any action taken or omitted by any Agent under or in connection with any of the Loan Documents except to the extent caused by such Agent’s gross negligence or willful misconduct, as determined by a court of competent jurisdiction in a final, non-appealable order; provided, that any action taken or omitted by any Agent at the direction of the Required lenders (or such other Lenders as the case may be) shall not constitute gross negligence or willful misconduct on the part of such Agent.  Each Agent shall be entitled to refrain from any act or the taking of any action (including the failure to take an action) in connection herewith or any of the other Loan Documents or from the exercise of any power, discretion or authority vested in it hereunder or thereunder unless and until such Agent shall have received instructions in respect thereof from Required Lenders (or such other Lenders as may be required to give such instructions under Section 11.2) and, upon receipt of such instructions from Required Lenders (or such other Lenders, as the case may be), such Agent shall be entitled to act or (where so instructed) refrain from acting, or to exercise such power, discretion or authority, in accordance with such instructions.  Without prejudice to the generality of the foregoing, (i) each Agent shall be entitled to rely, and shall be fully protected in relying, upon any communication, instrument or document believed by it to be genuine and correct and to have been signed or sent by the proper Person or Persons, and shall be entitled to rely and shall be protected in relying on opinions and judgments of attorneys (who may be attorneys for the Loan Parties), accountants, experts and other professional advisors selected by it; and (ii) no party hereto shall have any right of action whatsoever against any Agent in such capacity as a result of such Agent in such capacity acting or (where so instructed) refraining from acting hereunder or any of the other Loan Documents in accordance with the instructions of Required Lenders (or such other Lenders as may be required to give such instructions under Section 11.2).
10.4  Reliance by Agent. The Agents shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless Agent shall first receive such advice or concurrence of 

the Lenders as it deems appropriate and until such instructions are received, the Agents shall act, or refrain from acting, as it deems advisable.  If an Agent so requests, it shall first be indemnified to its reasonable satisfaction by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action.  The Agents shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the requisite Lenders and such request or consent and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.
10.5  Knowledge of Defaults/Events of Default. The Agents shall not be deemed to have knowledge or notice of the occurrence of any Default and/or Event of Default, unless the Agents shall have received written notice from a Lender or the Borrower referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default.”  The Administrative Agent will notify the Lenders of its receipt of any such notice.  The Agents shall take such action with respect to such Default and/or Event of Default in accordance with Article VII; provided that, unless and until the Agents have received any such direction, the Agents (but shall not be obligated to) take any action, or refrain from taking any action, with respect to such Default and/or Event of Default as it shall deem advisable or in the best interest of the Lenders.
10.6  Credit Decision.  Each Lender acknowledges that none of the Agent-Related Persons has made any representation or warranty to it, and that no act by any Agent hereinafter taken, including any review of the affairs of the Borrower and its Subsidiaries or Affiliates, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender.  Each Lender represents (and by its entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to represent) to the Agents that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of the Borrower and any other Person party to a Loan Document, and all applicable bank regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to the Borrower.  Each Lender also represents (and by its entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to represent) that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of the Borrower and any other Person party to a Loan Document.  Except for notices, reports, and other documents expressly herein required to be furnished to the Lenders by the Agents, the Agents shall not have any duty or responsibility to provide any Lender (or any Bank Product Provider) with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of the Borrower and any other Person party to a Loan Document that may come into the possession of any of the Agent-Related Persons.
10.7  Costs and Expenses; Indemnification.  The Agents may incur and pay Lender Group Expenses to the extent such Agent reasonably deems necessary or appropriate for the performance and fulfillment of its functions, powers, and obligations pursuant to the Loan Documents, including court costs, attorneys’ fees and expenses, fees and expenses of financial accountants, advisors, consultants, and appraisers, costs of collection by outside collection agencies, auctioneer fees and expenses, and costs of security guards or insurance premiums paid to maintain the Collateral, whether or not Borrower is obligated to reimburse the Agents or Lenders for such expenses pursuant to this Agreement or otherwise.  The Agents are authorized and directed to deduct and retain sufficient amounts from the Collections of the Borrower and its Subsidiaries received by the Agents to reimburse the Agents for such out-of-pocket costs and expenses prior to the distribution of any amounts to Lenders.  In the event the Agents are not reimbursed for such 

costs and expenses by the Borrower or from the Collections of the Borrower and its Subsidiaries received by the Agents, each Lender hereby agrees that it is and shall be obligated to pay to or reimburse the Agents for the amount of such Lender’s Pro Rata Share thereof.  Whether or not the transactions contemplated hereby are consummated, the Lenders shall indemnify upon demand the Agent-Related Persons (to the extent not reimbursed by or on behalf of the Borrower and without limiting the obligation of the Borrower to do so), according to their Pro Rata Shares, from and against any and all Indemnified Liabilities; provided, however, that no Lender shall be liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities resulting solely from such Person’s gross negligence or willful misconduct nor shall any Lender be liable for the obligations of any Defaulting Lender in failing to make a Loan or other extension of credit hereunder.  Without limitation of the foregoing, each Lender shall reimburse the Agents upon demand for such Lender’s Pro Rata Share of any costs or out of pocket expenses (including attorneys, accountants, advisors, and consultants fees and expenses) incurred by any Agent in connection with the preparation, execution, delivery, administration, modification, amendment, or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that any Agent is not reimbursed for such expenses by or on behalf of the Borrower; provided, however, that following the occurrence and continuance of an Event of Default, to the extent the Agents seek to take an action which will cause them to incur a cost or expense in excess of $10,000, the Agents shall promptly seek prior written consent of the Required Lenders with respect to such action.  The undertaking in this Section shall survive the payment of all Obligations hereunder and the resignation or replacement of any Agent.
10.8  Agent in Individual Capacity.  The Agents and their Affiliates may make loans to, accept deposits from, acquire Securities in, and generally engage in any kind of banking, trust, financial advisory, underwriting, or other business with Borrower and its Subsidiaries and Affiliates and any other Person party to any Loan Documents as though the Agents were not Agents hereunder, and, in each case, without notice to or consent of the other members of the Lender Group.  The other members of the Lender Group acknowledge (and by its entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to acknowledge) that, pursuant to such activities, the Agents or their Affiliates may receive information regarding Borrower or its Affiliates and any other Person party to any Loan Documents that is subject to confidentiality obligations in favor of the Borrower or such other Person and that prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge (and by its entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to acknowledge) that, in such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver the Agents will use commercially reasonable efforts to obtain), the Agents shall not be under any obligation to provide such information to them.  The terms “Lender” and “Lenders” include each Agent in its individual capacity. 
10.9  Successor Agent.  
(a)  Any Agent may at any time give notice of its resignation to the Lenders and the Borrower.  At any time, the Agent may be removed by the Required Lenders or the Borrower, upon thirty days’ prior written notice to such Agent, the Lenders and the Borrower.  Upon receipt of any such notice of resignation or removal, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor Agent for the Lenders.  In connection with a resignation, if no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Agent gives notice of its resignation (or such earlier date as may be agreed by the Required Lenders) (the “Resignation Effective Date”), then the retiring Agent may (but shall not be obligated to), on behalf of the Lenders, appoint a successor Agent meeting the qualifications set forth above; provided that in no event shall any such successor Agent be a Defaulting Lender.  Whether or not a successor has been appointed, such 

resignation shall become effective in accordance with such notice on the Resignation Effective Date.  Upon the occurrence of a Removal Event, an Agent may be removed upon five (5) Business Days’ prior written notice by the Required Lenders or the Borrower, delivered to such Agent, the Lenders and the Borrower; provided, however, that, such removal shall not be effective until a successor Agent acceptable to the Required Lenders has been selected; provided, further, that if no such successor Agent has been appointed within thirty (30) days of such removal, the Required Lenders or the Borrower may petition any court of competent jurisdiction for the appointment of a successor Agent.  
(b)  If the Person serving as Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, the Required Lenders may, to the extent permitted by applicable law, by notice in writing to the Borrower and such Person remove such Person as Agent and, in consultation with the Borrower, appoint a successor. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.
(c)  With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (i) the retiring or removed Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Collateral Agent on behalf of the Lenders under any of the Loan Documents, the retiring or removed Collateral Agent shall continue to hold such collateral security until such time as a successor Collateral Agent is appointed) and (ii) except for any indemnity payments owed to the retiring or removed Agent, all payments, communications and determinations provided to be made by, to or through the Agent shall instead be made by or to each Lender directly, until such time, if any, as the Required Lenders appoint a successor Agent as provided for above.  Upon the acceptance of a successor’s appointment as an Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Agent (other than any rights to indemnity payments owed to the retiring or removed Agent), and the retiring or removed Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents.  The fees payable by the Borrower to a successor Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After the retiring or removed Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article X and Section 8.1 shall continue in effect for the benefit of such retiring or removed Agent, its subagents and their respective Agent-Related Persons in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Agent was acting as Agent.
10.10  Lender in Individual Capacity.  Any Lender and its respective Affiliates may make loans to, accept deposits from, acquire Securities in and generally engage in any kind of banking, trust, financial advisory, underwriting, or other business with Borrower and its Subsidiaries and Affiliates and any other Person party to any Loan Documents as though such Lender were not a Lender hereunder without notice to or consent of the other members of the Lender Group.  The other members of the Lender Group acknowledge (and by its entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to acknowledge) that, pursuant to such activities, such Lender and its respective Affiliates may receive information regarding Borrower or its Affiliates and any other Person party to any Loan Documents that is subject to confidentiality obligations in favor of the Borrower or such other Person and that prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge (and by its entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to acknowledge) that, in such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver such 

Lender will use commercially reasonable efforts to obtain), such Lender shall not be under any obligation to provide such information to them.
10.11  Withholding Taxes.
(a)  Any and all payments made by the Borrower hereunder or under any note or other Loan Document will be made free and clear of, and without deduction or withholding for, any present or future Taxes, except as required by applicable law.  If any applicable law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.  The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of any Other Taxes.  The Borrower will furnish to the Administrative Agent as promptly as possible after the date the payment of any Tax is due pursuant to applicable law certified copies of tax receipts issued by the applicable Governmental Authority evidencing such payment of such Tax by the Borrower, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.  The Borrower shall indemnify each Recipient, within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to an amount payable under this Section 10.11, payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the an Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.  For purposes of this Section 10.11, the term “applicable law” includes FATCA.
(b)  Each Agent shall deliver to the Borrower a properly completed and executed IRS Form W-9 on or prior to the date it becomes an Agent under this Agreement and at any other time reasonably requested by the Administrative Agent or the Borrower.  If a Lender is entitled to claim an exemption from, or reduction of, United States withholding tax, Lender agrees with and in favor of the Administrative Agent and the Borrower, to deliver to the Administrative Agent whichever of the following is applicable:
(i)  if such Lender claims an exemption from United States federal withholding tax pursuant to the portfolio interest exception under Section 881(c) of the Code, (A) a statement of the Lender, signed under penalty of perjury, that it is not (I) a “bank” as described in Section 881(c)(3)(A) of the Code, (II) a 10.0% shareholder of the Borrower (within the meaning of Section 881(c)(3)(B) of the Code), or (III) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code, and (B) a properly completed and executed IRS Form W-8BEN or W-8BEN-E (or successor form), as applicable, on or prior to the date it becomes a Lender under this Agreement and at any other time reasonably requested by Administrative Agent or the Borrower;

(ii)  if such Lender claims an exemption from, or a reduction of, withholding tax under an income tax treaty to which the United States is a party, two properly completed and executed copies of IRS Form W-8BEN or W-8BEN-E (or successor form), as applicable, on or prior to the date it becomes a Lender under this Agreement and at any other time reasonably requested by the Administrative Agent or the Borrower;
(iii)  if such Lender claims that interest paid under this Agreement is exempt from United States withholding tax because it is effectively connected with a United States trade or business of such Lender, two properly completed and executed copies of IRS Form W-8ECI (or successor form) (together with applicable attachments) on or prior to the date it becomes a Lender under this Agreement and at any other time reasonably requested by the Administrative Agent or the Borrower;
(iv)  two properly completed and executed copies of IRS Form W-8IMY (or successor form) (together with the relevant documentation under this Section 10.11(b) and/or any other certification documents from each beneficial owner, as applicable) on or prior to the date it becomes a Lender under this Agreement and at any other time reasonably requested by the Administrative Agent or the Borrower; or
(v)  such other form or forms, including IRS Form W-9 (or successor form), as may be required under the Code or other laws of the United States as a condition to exemption from, or reduction of, United States withholding or backup withholding tax on or prior to the date it becomes a Lender under this Agreement and at any other time reasonably requested by the Administrative Agent or the Borrower.
        Each Agent and each such Lender agree to promptly notify, in writing, the Administrative Agent and the Borrower of any change in circumstances which would modify or render invalid any claimed exemption or reduction. Each Agent and each such Lender agree to update any expired, obsolete or inaccurate form provided pursuant to Section 10.11(b), (c) or (g) or to promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.
(c)  If an Agent or a Lender is entitled to an exemption from, or reduction of, withholding tax in a jurisdiction other than the United States or backup withholding, such Agent or such Lender agrees with and in favor of the Administrative Agent and the Borrower to deliver to the Administrative Agent any such form or forms as may be required as a condition to exemption from, or reduction of, foreign withholding or backup withholding tax on or prior to the date it becomes an Agent or a Lender under this Agreement and at any other time reasonably requested by the Administrative Agent or the Borrower.
        Each Agent and each such Lender agrees promptly to notify, in writing, the Administrative Agent and the Borrower of any change in circumstances which would modify or render invalid any claimed exemption or reduction.
(d)  If any Lender claims exemption from, or reduction of, withholding tax and such Lender sells, assigns, grants a participation in, or otherwise transfers all or part of the Obligations of the Borrower, such Lender agrees to notify the Administrative Agent and the Borrower of the percentage amount in which it is no longer the beneficial owner of Obligations of the Borrower.  To the extent of such percentage amount, the Administrative Agent and the Borrower will treat such Lender’s documentation provided pursuant to Sections 10.11(b), 10.11(c) or 10.11(g) as no longer valid.  With respect to such percentage amount, such Lender may provide new documentation, pursuant to Sections 10.11(b), 10.11(c) or 10.11(g), if applicable.

(e)  If any Lender is entitled to a reduction in the applicable withholding tax, the Administrative Agent may withhold from any payment to such Lender an amount equivalent to the applicable withholding tax after taking into account such reduction.  If the forms or other documentation required by subsection (b), (c) or (g) of this Section 10.11 are not delivered to the Administrative Agent, then the Administrative Agent may withhold from any payment to such Lender not providing such forms or other documentation an amount equivalent to the applicable withholding tax.
(f)  If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 10.11 (including by the payment of additional amounts pursuant to this Section 10.11), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section 10.11 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (f) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (f), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (f) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.  
(g)  If a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this Section 10.11(g), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.
(h)  Each party’s obligations under this Section 10.11 shall survive the resignation or replacement of the Agents or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

10.12  Collateral and Guarantor Matters.
(a)  The Lenders hereby irrevocably authorize (and by its entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to authorize) the Collateral Agent to, and the Collateral Agent shall: 
(i)  release any Lien and/or negative pledge granted pursuant to the Negative Pledge Agreement, as applicable, on any Asset (including, for the avoidance of doubt, the Proceeds of such Asset) upon the termination of the Commitments and payment and satisfaction in full by the Borrower of all Obligations; 
(ii)  release any Lien and/or negative pledge granted pursuant to the Negative Pledge Agreement, as applicable, on any Asset (including, for the avoidance of doubt, the Proceeds of such Asset), including any Subsidiary of the Borrower: 
(A)  (x) in contemplation of the incurrence, assumption or purchase of Debt pursuant to Section 6.1 (and the imposition of a Permitted Lien pursuant to Section 6.2) if the Borrower certifies to the Collateral Agent that such Debt is contemplated to be incurred within 15 days of the delivery of such certificate (the “Permitted Debt Certificate”) or (y) in connection with the incurrence, assumption or purchase of Debt pursuant to Section 6.1 (and the imposition of a Permitted Lien pursuant to Section 6.2), in each case on such terms (including, for the avoidance of doubt, in respect to the priority of such Liens granted, in each case in connection with the incurrence, assumption or purchase of such Debt) as is reasonably satisfactory to the party incurring, assuming or acquiring such Debt and the lender of any such Debt; provided however, if, in the event the Borrower or any of its Subsidiaries does not incur Debt contemplated by subclause (x) of this clause (A) within 15 days of the delivery of the Permitted Debt Certificate, any Lien and/or negative pledge that was released by the Collateral Agent in connection with such Permitted Debt Certificate shall be reinstated with respect to such released Collateral and such Grantor shall deliver such additional pledge and security documents as the Collateral Agent may reasonably request in order to give effect to such reinstatement; or
(B)  that is being sold by any Loan Party, any Grantor or any Negative Pledgor if the Borrower certifies to the Collateral Agent that the Sale is permitted under Section 6.6 of this Agreement or the other Loan Documents (and the Collateral Agent may rely conclusively on any such certificate, without further inquiry); or
(iii)  release any Guarantor, Negative Pledgor or Grantor from its obligations hereunder if the Borrower certifies to the Collateral Agent that such Guarantor, Negative Pledgor or Grantor is being sold pursuant to a Sale that is permitted under Section 6.6 of this Agreement or the other Loan Documents (and the Collateral Agent may rely conclusively on any such certificate, without further inquiry). 
(b)  Upon the occurrence of any event set forth in clause (a) above, (i) each applicable Asset (including, for the avoidance of doubt, the Proceeds of such Asset) shall automatically, and without further action, be released as Collateral for all purposes under the Loan Documents; provided however, if, in the event the Borrower or any of its Subsidiaries does not incur Debt contemplated by clause (a)(ii)(A)(x) above within 15 days of the delivery of the Permitted Debt Certificate, any Collateral that was released shall be reinstated with respect to such released 

Collateral and such Grantor shall deliver such additional pledge and security documents as the Collateral Agent may reasonably request in order to give effect to such reinstatement and (ii) upon the request, and at the expense of the Borrower, the Agents agree, as applicable, to execute and deliver such release documents and take such other actions to acknowledge, evidence or complete any such release of such Asset or Person as may be reasonably requested by the Borrower or any of its Subsidiaries; provided, however, that upon request by the Collateral Agent or the Borrower or any of its Subsidiaries at any time, the Lenders will confirm in writing the Collateral Agent’s authority to release any such Liens and/or negative pledges granted pursuant to the Negative Pledge Agreement, as applicable, on particular types or items of Assets (including, for the avoidance of doubt, the Proceeds of such Asset) pursuant to this Section 10.12; provided, further, that (1) the Collateral Agent shall not be required to execute any document necessary to evidence such release on terms that, in the Collateral Agent’s opinion, would expose the Collateral Agent to liability or create any obligation or entail any consequence other than the release of such Lien without recourse, representation, or warranty, and (2) such release shall not in any manner discharge, affect, or impair the Obligations or any Liens (other than those expressly being released) upon (or obligations of the Borrower or any of its Subsidiaries in respect of) all interests retained by the Borrower or any of its Subsidiaries, including, the proceeds of any sale, all of which shall continue to constitute part of the Collateral.  
(c)  The Agents shall have no obligation whatsoever to any of the Lenders (or the Bank Product Providers) to assure that the Collateral exists or is owned by the Borrower or is cared for, protected, or insured or has been encumbered, or that the Collateral Agent’s Liens have been properly or sufficiently or lawfully created, perfected, protected, or enforced or are entitled to any particular priority, or to exercise at all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers granted or available to the Agents pursuant to any of the Loan Documents, it being understood and agreed that in respect of the Collateral, or any act, omission, or event related thereto, subject to the terms and conditions contained herein, the Agents may act in any manner it may deem appropriate, in its sole discretion given the Collateral Agent’s own interest in the Collateral in its capacity as a Secured Party and that the Agents shall have no other duty or liability whatsoever to any Lender (or to any Bank Product Provider) as to any of the foregoing, except as otherwise provided herein.
10.13  Restrictions on Actions by Lenders; Sharing of Payments.
(a)  Each of the Lenders agrees that it shall not, until an Event of Default has occurred and is continuing, without the express written consent of the Agents, and that it shall, to the extent it is lawfully entitled to do so, upon the written request of the Agents, set off against the Obligations, any amounts owing by such Lender to the Borrower or any deposit accounts of the Borrower now or hereafter maintained with such Lender.  Each of the Lenders further agrees that it shall not, unless specifically requested to do so in writing by the Agents (which request shall not be made by the Agents unless an Event of Default has occurred and is continuing), take or cause to be taken any action, including, the commencement of any legal or equitable proceedings, to foreclose any Lien on, or otherwise enforce any security interest in, any of the Collateral.
(b)  If, at any time or times any Lender shall receive (i) by payment, foreclosure, setoff, or otherwise, any Proceeds of Collateral or any payments with respect to the Obligations, except for any such proceeds or payments received by such Lender from the Agents pursuant to the terms of this Agreement, or (ii) payments from the Agents in excess of such Lender’s ratable portion of all such distributions by the Agents, such Lender promptly shall (1) turn the same over to the Agents, in kind, and with such endorsements as may be required to negotiate the same to the Agents, or in immediately available funds, as applicable, for the account of all of the Lenders and for application 

to the Obligations in accordance with the applicable provisions of this Agreement, or (2) purchase, without recourse or warranty, an undivided interest and participation in the Obligations owed to the other Lenders so that such excess payment received shall be applied ratably as among the Lenders in accordance with their Pro Rata Shares; provided, however, that to the extent that such excess payment received by the purchasing party is thereafter recovered from it, those purchases of participations shall be rescinded in whole or in part, as applicable, and the applicable portion of the purchase price paid therefor shall be returned to such purchasing party, but without interest except to the extent that such purchasing party is required to pay interest in connection with the recovery of the excess payment.
10.14  Agency for Perfection.  The Collateral Agent hereby appoints the 
Administrative Agent and each other Lender (and each Bank Product Provider) as its agent (and the Administrative Agent and each Lender hereby accepts (and by its entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to accept) such appointment) for the purpose of perfecting the Collateral Agent’s Liens in assets which, in accordance with Article 8 or Article 9, as applicable, of the Uniform Commercial Code can be perfected only by possession or control.  Should any Lender obtain possession or control of any such Collateral, such Lender shall notify the Agents thereof, and, promptly upon either Agent’s request therefor shall deliver possession or control of such Collateral to the Collateral Agent or in accordance with either Agent’s instructions.
10.15  Payments by Agent to the Lenders.  All payments to be made by the Agents to the Lenders shall be made by bank wire transfer of immediately available funds pursuant to such wire transfer instructions as each party may designate for itself by written notice to the Agents.  
10.16  Concerning the Collateral and Related Loan Documents.  Each member of the Lender Group authorizes and directs the Agents to enter into this Agreement and the other Loan Documents.  Each member of the Lender Group agrees (and by its entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to agree) that any action taken by the Agents in accordance with the terms of this Agreement or the other Loan Documents relating to the Collateral and the exercise by the Agents of their powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Lenders (and such Bank Product Provider).
10.17  Field Examinations and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information.  By becoming a party to this Agreement, each Lender:
(a)  is deemed to have requested that the Agents furnish such Lender, promptly after it becomes available, (i) a copy of each field examination or examination report prepared by the Agents, and (ii) a copy of each document delivered to the Agents pursuant to Sections 5.3(a), (b) and (c) (each a “Report” and collectively, “Reports”), and the Agents shall so furnish each Lender with such Reports,
(b)  expressly agrees and acknowledges that the Agents do not (i) make any representation or warranty as to the accuracy of any Report, and (ii) shall not be liable for any information contained in any Report,
(c)  expressly agrees and acknowledges that the Reports are not comprehensive audits or examinations, that the Agents or other party performing any examination will inspect only specific information regarding Borrower and will rely significantly upon the books of the Borrower and the other Loan Parties, as well as on representations of the Borrower’s personnel,

(d)  agrees to keep all Reports and other material, non-public information regarding Borrower and its Subsidiaries and their operations, assets, and existing and contemplated business plans in a confidential manner in accordance with Section 11.12, and 
(e)  without limiting the generality of any other indemnification provision contained in this Agreement, agrees:  (i) to hold any Agent and any other Lender preparing a Report harmless from any action the indemnifying Lender may take or fail to take or any conclusion the indemnifying Lender may reach or draw from any Report in connection with any loans or other credit accommodations that the indemnifying Lender has made or may make to the Borrower, or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a loan or loans of the Borrower, and (ii) to pay and protect, and indemnify, defend and hold any Agent, and any such other Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including, attorneys' fees and costs) incurred by any Agent and any such other Lender preparing a Report as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender.
In addition to the foregoing:  (x) any Lender may from time to time request of the Agent in writing that the Agents provide to such Lender a copy of any report or document provided by the Borrower to the Agents that has not been contemporaneously provided by the Borrower to such Lender, and, upon receipt of such request, the Agents promptly shall provide a copy of same to such Lender, (y) to the extent that the Agents are entitled, under any provision of the Loan Documents, to request additional reports or information from Borrower, any Lender may, from time to time, reasonably request the Agents to exercise such right as specified in such Lender’s notice to the Agents, whereupon the Agents promptly shall request of the Borrower the additional reports or information reasonably specified by such Lender, and, upon receipt thereof from Borrower, the Agents promptly shall provide a copy of same to such Lender, and (z) any time that the Administrative Agent renders to the Borrower a statement regarding the Loan Account, the Administrative Agent shall send a copy of such statement to each Lender.
10.18  Several Obligations; No Liability.  Notwithstanding that certain of the Loan Documents now or hereafter may have been or will be executed only by or in favor of the Agents in its capacity as such, and not by or in favor of the Lenders, any and all obligations on the part of any Agent to make any credit available hereunder shall constitute the several (and not joint) obligations of the respective Lenders on a ratable basis, according to their respective Commitments, to make an amount of such credit not to exceed, in principal amount, at any one time outstanding, the amount of their respective Commitments.  Nothing contained herein shall confer upon any Lender any interest in, or subject any Lender to any liability for, or in respect of, the business, assets, profits, losses, or liabilities of any other Lender.  Each Lender shall be solely responsible for notifying its Participants of any matters relating to the Loan Documents to the extent any such notice may be required, and no Lender shall have any obligation, duty, or liability to any Participant of any other Lender.  Except as provided in Section 10.7, no member of the Lender Group shall have any liability for the acts of any other member of the Lender Group.  No Lender shall be responsible to the Borrower or any other Person for any failure by any other Lender to fulfill its obligations to make credit available hereunder, nor to take any other action on its behalf hereunder or in connection with the financing contemplated herein.
10.19  Bank Product Providers.  Each Bank Product Provider shall be deemed a third party beneficiary hereof and of the provisions of the other Loan Documents for purposes of any reference in a Loan Document to the parties for whom an Agent is acting.  The Collateral Agent hereby agrees to act as agent for such Bank Product Providers in respect of the Collateral and the Liens granted therein and, by virtue of entering into a Bank Product Agreement, the applicable Bank Product Provider shall be automatically deemed to have appointed the Collateral Agent as its agent (in respect of the Collateral and the Liens granted therein) and to have accepted the benefits of the Loan Documents; it being understood and agreed 

that the rights and benefits of each Bank Product Provider under the Loan Documents consist exclusively of such Bank Product Provider’s being a beneficiary of the Liens and security interests (and, if applicable, guarantees) granted to the Collateral Agent and the right to share in payments and collections out of the Collateral as more fully set forth herein. In addition, each Bank Product Provider, by virtue of entering into a Bank Product Agreement, shall be automatically deemed to have agreed that the Collateral Agent shall have the right, but shall have no obligation, to establish, maintain, relax, or release reserves in respect of the Bank Product Obligations and that if reserves are established there is no obligation on the part of the Agents to determine or insure whether the amount of any such reserve is appropriate or not.  In connection with any such distribution of payments or Proceeds of Collateral, the Collateral Agent shall be entitled to assume no amounts are due or owing to any Bank Product Provider unless such Bank Product Provider has provided a written certification (setting forth a reasonably detailed calculation) to the Agents as to the amounts that are due and owing to it and such written certification is received by the Agents a reasonable period of time prior to the making of such distribution.  The Agents shall have no obligation to calculate the amount due and payable with respect to any Bank Products, but may rely upon the written certification of the amount due and payable from the relevant Bank Product Provider.  In the absence of an updated certification, the Agents shall be entitled to assume that the amount due and payable to the relevant Bank Product Provider is the amount last certified to the Agents by such Bank Product Provider as being due and payable (less any distributions made to such Bank Product Provider on account thereof).  The Borrower or any of its Subsidiaries may obtain Bank Products from any Bank Product Provider, although neither the Borrower nor its Subsidiaries is required to do so.  The Borrower acknowledges and agrees that no Bank Product Provider has committed to provide any Bank Products and that the providing of Bank Products by any Bank Product Provider is in the sole and absolute discretion of such Bank Product Provider.  Notwithstanding anything to the contrary in this Agreement or any other Loan Document, no provider or holder of any Bank Product shall have any voting or approval rights hereunder (or be deemed a Lender) solely by virtue of its status as the provider or holder of such agreements or products or the Obligations owing thereunder, nor shall the consent of any such provider or holder be required (other than in their capacities as Lenders, to the extent applicable) for any matter hereunder or under any of the other Loan Documents, including as to any matter relating to the Collateral or the release of Collateral or Guarantor.
10.20  Representations and Warranties of each Agent. Each Agent makes the following representations and warranties as of the A&R Effective Date:
(a)  It is duly organized and existing under the laws of the jurisdiction of its organization with full power and authority to execute and deliver this Agreement and to perform all of the duties and obligations to be performed by it hereunder;
(b)  This Agreement will be, legally and validly entered into by such Agent, does not, and will not, violate any ordinance, charter, by law, rule or statute applicable to it, and is enforceable against such Agent in accordance with its terms, except as may be limited by bankruptcy, insolvency or similar laws, or by equitable principles relating to or limiting creditors' rights generally; and
(c)  The person executing this Agreement on such Agent’s behalf has been duly and properly authorized to do so.
10.21  Erroneous Payments. 
(a)  Each Lender hereby agrees that (i) if the Administrative Agent or the Collateral Agent notifies such Lender that the Administrative Agent or the Collateral Agent has determined in its sole discretion that any funds received by such Lender from the Administrative Agent or any of its Affiliates or the Collateral Agent or any of its Affiliates were erroneously or mistakenly 

transmitted to, or otherwise erroneously or mistakenly received by, such Lender (whether or not known to such Lender)  (whether as a payment, prepayment or repayment of principal, interest, fees or otherwise; individually and collectively, an “Erroneous Payment”) and demands the return of such Erroneous Payment (or a portion thereof), such Lender shall promptly, but in no event later than fifteen (15) Business Days thereafter, return to the Administrative Agent or the Collateral Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from and including such fifteenth (15th) Business Day (assuming such Erroneous Payment (or any remaining portion thereof) shall be unpaid as of such date) to the date such amount is repaid to the Administrative Agent or the Collateral Agent in same day funds at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent or the Collateral Agent in accordance with banking industry rules on interbank compensation from time to time in effect and (ii) to the extent permitted by applicable law, such Lender shall not assert any right or claim to the Erroneous Payment, and hereby waives any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent or the Collateral Agent for the return of any Erroneous Payments received, including, without limitation, waiver of any defense based on “discharge for value” or any similar theory or doctrine.  A notice of the Administrative Agent or the Collateral Agent to any Lender under this clause (a) shall be conclusive, absent manifest error.
(b)  The Borrower and each other Loan Party hereby agrees that (x) in the event an Erroneous Payment (or portion thereof) is not recovered from any Lender that has received such Erroneous Payment (or portion thereof) for any reason (and without limiting the Administrative Agent’s or the Collateral Agent’s rights and remedies under this Section 10.21), the Administrative Agent or the Collateral Agent shall be subrogated to all the rights of such Lender with respect to such amount and (y) an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrower or any other Loan Party.
©  In addition to any rights and remedies of the Administrative Agent or the Collateral Agent provided by law, Administrative Agent or the Collateral Agent shall have the right, without prior notice to any Lender, any such notice being expressly waived by such Lender to the extent permitted by applicable law, with respect to any Erroneous Payment for which a demand has been made in accordance with this Section 10.21 and which has not been returned to the Administrative Agent or the Collateral Agent, to set off and appropriate and apply against such amount any and all deposits (general or special, time or demand, provisional or final but excluding trust accounts), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by Administrative Agent or the Collateral Agent or any of their Affiliate, branch or agency thereof to or for the credit or the account of such Lender.  Administrative Agent and the Collateral Agent agrees promptly to notify the Lender after any such setoff and application made by Administrative Agent or the Collateral Agent, as applicable; provided, that the failure to give such notice shall not affect the validity of such setoff and application.
(d) Each party’s obligations under this Section 10.21 shall survive the resignation or replacement of the Administrative Agent or the Collateral Agent, the termination of the Commitments or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document.

ARTICLE XI
MISCELLANEOUS
11.1  No Waivers, Remedies.  No failure or delay on the part of any Agent or any Lender, or the holder of any interest in this Agreement in exercising any right, power, privilege, or remedy under this Agreement or any of the other Loan Documents shall impair or operate as a waiver thereof, nor shall any single or partial exercise of any such right, power, privilege, or remedy preclude any other or further exercise thereof or the exercise of any other right, power, privilege, or remedy.  The waiver of any such right, power, privilege, or remedy with respect to particular facts and circumstances shall not be deemed to be a waiver with respect to other facts and circumstances.  The remedies provided for under this Agreement or the other Loan Documents are cumulative and are not exclusive of any remedies that may be available to any Agent or any Lender, or the holder of any interest in this Agreement at law, in equity, or otherwise.
11.2  Waivers and Amendments.  No amendment or waiver of any provision of this Agreement or any other Loan Document (other than Bank Product Agreements), and no consent with respect to any departure by the Borrower therefrom, shall be effective unless the same shall be in writing and signed by the Administrative Agent, Required Lenders (or by the Agents at the written request of the Required Lenders) and the Borrower and then any such waiver or consent shall be effective, but only in the specific instance and for the specific purpose for which given; provided, however, that no such waiver, amendment, or consent shall:
(a)  increase or extend any Delayed Draw Term Loan Commitment of any Lender; provided that no amendment, modification or waiver of any condition precedent, covenant, Event of Default or Default shall constitute an increase in any Delayed Draw Term Loan Commitment of any Lender, without the written consent of each Lender directly and adversely affected thereby,
(b)  postpone or delay any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees, or other amounts due hereunder or under any other Loan Document, without the written consent of each Lender directly and adversely affected thereby,
(c)  reduce the principal of, or the rate of interest on, or the Prepayment Premium, if any, any Loan or other extension of credit hereunder, or reduce any fees or other amounts payable hereunder or under any other Loan Document, without the written consent of each Lender directly and adversely affected thereby,
(d)  change the Pro Rata Share that is required to take any action hereunder, without the written consent of each Lender, 
(e)  amend or modify this Section or any provision of the Agreement providing for consent or other action by all Lenders, without the written consent of each Lender,
(f)  other than as permitted by Section 10.12, release the Collateral Agent’s Lien in and to any of the Collateral, without the written consent of each Lender, 
(g)  change the definition of “Required Lenders” or “Pro Rata Share”, without the written consent of each Lender,
(h)  other than as permitted by Section 10.12, release any Loan Party from any obligation for the payment of money, without the written consent of each Lender, or
(i)  amend any of the provisions of Article X, without the written consent of each Lender.

and, provided further, however, that no amendment, waiver or consent shall, unless in writing and signed by the Agents, affect the rights or duties of the Agents under this Agreement or any other Loan Document.
    Notwithstanding the foregoing, no amendment, termination or waiver of any provision of the Loan Documents, or consent to any departure by any Loan Party therefrom, shall be made other than by a solicitation of all Lenders, in a manner that treats all Lenders in the same manner, and that requires that any consent fee or other consideration payable in connection therewith be payable ratably to all Lenders who consent to the requested amendment, termination, waiver or consent.
If, in connection with any proposed amendment, waiver or consent requiring the consent of “each Lender” or “each Lender directly affected thereby,” the consent of the Required Lenders is obtained, but the consent of other necessary Lenders is not obtained (any such Lender whose consent is necessary but not obtained being referred to herein as a “Non-Consenting Lender”), then the Borrower may at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 9.1), all of its interests, rights (other than its existing rights to payments pursuant to Section 2.11 or Section 10.11) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that:
(i)  the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 9.1(b)(iv);
(ii)  such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);
(iii)  in the case of any such assignment resulting from a claim for compensation under Section 2.11 or payments required to be made pursuant to Section 10.11, such assignment will result in a reduction in such compensation or payments thereafter;
(iv)  such assignment does not conflict with applicable law; and
(v)  in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.
A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.
11.3  Notices.  Except as otherwise provided herein, all notices, demands, instructions, requests, and other communications required or permitted to be given to, or made upon, any party hereto shall be in writing and shall be delivered or sent by registered or certified mail, postage prepaid, return receipt requested, or by courier, electronic mail (at such e-mail addresses as a party may designate in accordance herewith), or telefacsimile and shall be deemed to be given for purposes of this Agreement on the day that such writing is received by the Person to whom it is to be sent pursuant to the provisions of this Agreement. Unless otherwise specified in a notice sent or delivered in accordance with the foregoing provisions of this Section 11.3, notices, demands, requests, instructions, and other communications in writing shall be given to or made upon the respective parties hereto at their respective addresses (or to their respective telefacsimile numbers) indicated on Exhibit 11.3 attached hereto. 
11.4  Release of Borrowing Base Eligible Assets.  Upon receipt by the Agents of a notice from the Borrower at least five (5) Business Days prior to the date that the Borrower wishes to remove an Asset from the pool of Borrowing Base Eligible Assets (including but not limited to pursuant to Section 10.12 hereof), for all purposes herein, such Asset shall be removed from the pool of Borrowing Base Eligible Assets for all purposes hereunder upon satisfaction of the following:

(a)  the Borrower shall deliver to the Agents a description of the relevant Asset to be removed;
(b)  the Borrower shall deliver to the Agents a certificate of a Responsible Officer certifying that on a pro forma basis after giving effect to such removal, the Borrower is in compliance with the financial covenants set forth in Section 6.12; and
(c)   no Default or Event of Default shall exist or would be caused by releasing such Asset.
11.5  Valuation Confirmation Process. Notwithstanding the foregoing, the Borrower may, at any time retain the Initial Valuation Agent to undertake a valuation report (the “Valuation Report”) with respect to any Borrowing Base Eligible Asset (the Assigned Value in such Valuation Report, the “Initial Valuation”).  
(a)   Following the receipt by the Borrower of a Valuation Report (and delivery of a copy thereof to the Agents), the Assigned Value in respect of the relevant Borrowing Base Eligible Asset for the purposes of clause (b) of the definition of “Assigned Value” shall be the amount of the Initial Valuation unless the Required Agents notify the Borrower in writing (the “Initial Dispute Notice”) within five (5) Business Days following receipt of such Valuation Report that the Required Agents dispute the Initial Valuation.  
(b)  If the Required Lenders dispute the Initial Valuation as set forth in Section 11.5(a) above, the Borrower and the Required Lenders shall enter into good faith negotiations for two (2) Business Days to agree upon an amount that shall be used as the Assigned Value for the relevant Borrowing Base Eligible Asset. 
(c)   If the Borrower and the Required Lenders cannot agree upon such amount, the Borrower shall then have the right to retain the Second Valuation Agent to undertake a valuation report with respect to the Borrowing Base Eligible Asset (the Assigned Value in such additional valuation report, the “Second Valuation”).  Following the receipt by the Borrower of such additional valuation report (and delivery of a copy thereof to the Agents) and if the amount of the Second Valuation is no more than 10.0% greater or lesser than the amount of the Initial Valuation, the Assigned Value in respect of the relevant Borrowing Base Eligible Asset for the purposes of clause (b) of the definition of “Assigned Value” shall be the amount equal to the average of the Initial Valuation and the Second Valuation.
(d)  If the Second Valuation is more than 10.0% greater or lesser than the amount of the Initial Valuation and either (i) the Required Agents notify the Borrower in writing within five (5) Business Days following receipt of such additional valuation report that the Required Lenders dispute the Second Valuation or (ii) the Borrower notifies the Agents in writing within five (5) Business Days following receipt of such additional valuation report that it disputes the Second Valuation, the Borrower shall retain the Third Valuation Agent that is reasonably acceptable to the Required Lenders to undertake a valuation report with respect to the Borrowing Base Eligible Asset (the Assigned Value in such additional valuation report, the “Third Valuation”).  If the amount of the Third Valuation falls within the range of the Initial Valuation and the Second Valuation, the Assigned Value for such Borrowing Base Eligible Asset for the purposes of clause (b) above shall be the amount of the Third Valuation. If the amount of the Third Valuation falls outside the range of the Initial Valuation and the Second Valuation, the Assigned Value in respect of the relevant Borrowing Base Eligible Asset for purposes of clause (b) of the definition of “Assigned Value” shall be the average of the Initial Valuation, the Second Valuation and the Third Valuation.  The “Determined Valuation” shall mean the valuation of any Borrowing Base Eligible Asset pursuant to the process referred to above in these clauses (a)-(d) (such process, the “Valuation Confirmation Process”).
It is understood and agreed that, if a Valuation Confirmation Process is commenced, (i) the Valuation Confirmation Process shall be completed within 30 days of the delivery of the Initial Dispute Notice, (ii) the Initial Valuation shall apply for all purposes until the completion of the Valuation Confirmation Process and (iii) after the completion of the Valuation Confirmation Process, the Determined Valuation shall apply to such Borrowing Base Eligible Asset unless (a) the applicable VAE is continuing for a period of 90 days or more (other than pursuant to clause (vi) of the definition thereof) or (b) a new VAE has occurred, in which instance the Borrower shall retain the valuation agent that conducted the Determined Valuation to undertake an updated valuation (the “Updated Valuation”) for such Borrowing Base Eligible Asset every 90 days; the value of such Borrowing Base Eligible Asset shall be as determined in the Updated Valuation, provided, however, that the 

Required Lenders shall be entitled to dispute the Updated Valuation, in which case the Borrower and the Required Lenders shall follow the procedures set forth in the Valuation Confirmation Process in respect of the Updated Valuation.
At the time of origination or purchase by the Borrower or its Subsidiaries of any Borrowing Base Eligible Asset, the outstanding principal balance of any single property underlying any Borrowing Base Eligible Asset shall not exceed 10.0% of the aggregate outstanding principal balance of the value of all properties underlying all Borrowing Base Eligible Assets.
11.6  Headings.  Article and Section headings used in this Agreement and the table of contents preceding this Agreement are for convenience of reference only and shall neither constitute a part of this Agreement for any other purpose nor affect the construction of this Agreement.  The foregoing shall apply to each other Loan Document mutatis mutandis.
11.7  Execution in Counterparts; Effectiveness.  This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement.  Delivery of an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this Agreement.  Any party delivering an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Agreement.  The foregoing shall apply to each other Loan Document mutatis mutandis.
11.8  GOVERNING LAW.  EXCEPT AS SPECIFICALLY SET FORTH IN ANY OTHER LOAN DOCUMENT: (A) THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE DEEMED TO HAVE BEEN MADE IN THE STATE OF NEW YORK; AND (B) THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AND THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF THE PARTIES THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.
11.9  JURISDICTION AND VENUE.  TO THE EXTENT THEY MAY LEGALLY DO SO, THE PARTIES HERETO AGREE THAT ALL ACTIONS, SUITS, OR PROCEEDINGS ARISING BETWEEN ANY MEMBER OF THE LENDER GROUP OR THE BORROWER AND ITS SUBSIDIARIES IN CONNECTION WITH THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE OR FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK; PROVIDED HOWEVER THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT AT ANY AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE ANY AGENT ELECTS TO BRING SUCH ACTION TO THE EXTENT SUCH COURTS HAVE IN PERSONAM JURISDICTION OVER THE RELEVANT OBLIGOR OR IN REM JURISDICTION OVER SUCH COLLATERAL OR OTHER PROPERTY.  THE BORROWER AND ITS SUBSIDIARIES AND EACH MEMBER OF THE LENDER GROUP, TO THE EXTENT THEY MAY LEGALLY DO SO, HEREBY WAIVE ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 11.9 AND STIPULATE THAT THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE IN PERSONAM JURISDICTION AND VENUE OVER SUCH PERSON FOR THE PURPOSE OF LITIGATING ANY SUCH DISPUTE, CONTROVERSY, OR PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS.  TO THE EXTENT PERMITTED BY LAW, SERVICE OF PROCESS SUFFICIENT FOR PERSONAL JURISDICTION IN ANY ACTION AGAINST BORROWER OR ANY MEMBER OF THE LENDER GROUP MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO ITS ADDRESS INDICATED ON EXHIBIT 11.3 ATTACHED HERETO.

11.10  WAIVER OF TRIAL BY JURY.  THE BORROWER AND ITS SUBSIDIARIES AND EACH MEMBER OF THE LENDER GROUP, TO THE EXTENT THEY MAY LEGALLY DO SO, HEREBY EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, CAUSE OF ACTION, OR PROCEEDING ARISING UNDER OR WITH RESPECT TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS, OR IN ANY WAY CONNECTED WITH, OR RELATED TO, OR INCIDENTAL TO, THE DEALINGS OF THE PARTIES HERETO WITH RESPECT TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND IRRESPECTIVE OF WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE.  TO THE EXTENT THEY MAY LEGALLY DO SO, THE BORROWER AND ITS SUBSIDIARIES AND EACH MEMBER OF THE LENDER GROUP HEREBY AGREE THAT ANY SUCH CLAIM, DEMAND, ACTION, CAUSE OF ACTION, OR PROCEEDING SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 11.10 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE OTHER PARTY OR PARTIES HERETO TO WAIVER OF ITS OR THEIR RIGHT TO TRIAL BY JURY.
11.11  Independence of Covenants.  All covenants under this Agreement and other Loan Documents shall be given independent effect so that if a particular action or condition is not permitted by any one covenant, the fact that it would be permitted by another covenant shall not avoid the occurrence of an Event of Default or Default if such action is taken or condition exists.
11.12  Confidentiality.  Each of the Agents and the Lenders agree to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its Agent-Related Persons (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential); (b) to the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person or its Agent-Related Persons (including any self-regulatory authority, such as the National Association of Insurance Commissioners); (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process (in which case such Person shall notify the Borrower (except in the case of a non-targeted, routine audit or review) as soon as practicable in the event of such disclosure by such Person unless such notification is prohibited by law, rule or regulation; provided that, such Person shall not have any liability for failure to provide such notice); (d) to any other party hereto; (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder; (f) subject to an agreement containing provisions substantially the same as those of this Section 11.12, to (i) any Eligible Assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations under this Agreement, or (ii) any actual or prospective party (or its Agent-Related Persons) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder; (g) on a confidential basis to (i) any rating agency in connection with rating the Borrower or its Subsidiaries or the Facilities or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers with respect to the Facilities; (h) with the consent of the Borrower; or (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section 11.12 or (y) becomes available to the Agents, any Lender or any of their respective Affiliates on a non confidential basis from a source other than the Borrower. In addition, the Agents and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry and service providers to the Agents and the Lenders in connection with the administration of this Agreement, the other Loan Documents, and the Commitments.
For purposes of this Section, “Information” means all information received from the Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries or any of their respective businesses, other than any such information that is available to the Agents or any Lender prior to disclosure by the Borrower or any of its Subsidiaries.  Any of the Lenders on the A&R Effective Date shall be considered to have complied with its obligation to maintain the confidentiality of Information as provided in this Section if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.
11.13  Complete Agreement.  This Agreement, together with the schedules and exhibits hereto and the other Loan Documents is intended by the parties hereto as a final expression of their agreement and is intended as a complete statement of the terms and conditions of their agreement with respect to the subject matter of this Agreement and 

shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof.  The foregoing to the contrary notwithstanding, all Bank Product Agreements, if any, are independent agreements governed by the written provisions of such Bank Product Agreements, which will remain in full force and effect, unaffected by any repayment, prepayments, acceleration, reduction, increase, or change in the terms of any credit extended hereunder, except as otherwise expressly provided in such Bank Product Agreement.
11.14  USA Patriot Act Notice.  Each Lender hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56) signed into law October 26, 2001 (the “USA Patriot Act”), it may be required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the USA Patriot Act.
ARTICLE XII
THE GUARANTY
12.1  The Guarantee. 
(a)  The Guarantors hereby, jointly and severally, guarantee to each Secured Party as hereinafter provided, as primary obligor and not merely as surety, the payment of the Secured Obligations in full in cash when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise) strictly in accordance with the terms thereof.  Each Guarantor  hereby further jointly and severally agrees that if any of the Secured Obligations are not paid in full in cash when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise), each Guarantor will promptly pay the same, without any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Secured Obligations, the same will be promptly paid in full in cash when due (whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise) in accordance with the terms of such extension or renewal.
(b)  Each Guarantor, and by its acceptance of this Guaranty, the Agents and each other Secured Party, hereby confirms that it is the intention of all such Persons that this Guaranty and the Obligations of each Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of any debtor relief law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to this Guaranty and the Obligations of each Guarantor hereunder.  To effectuate the foregoing intention, the Agents, the other Secured Parties and the Guarantors hereby irrevocably agree that the Obligations of each Guarantor under this Guaranty at any time shall be limited to the maximum amount as will result in the Obligations of such Guarantor under this Guaranty not constituting a fraudulent transfer or conveyance under applicable law after giving full effect to such Guarantor’s contribution rights but before taking into account any liabilities of such Guarantor under any other guarantee of such Guarantor other than any other guarantee of any obligations that are secured on a pari passu basis with the Obligations.
12.2  Obligations Unconditional. 
(a)  The obligations of the Guarantors under Section 12.1 are absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of any of the Loan Documents or other documents relating to the Secured Obligations, or any substitution, release, impairment or exchange of any other guarantee of or security for any of the Secured Obligations, and, to the fullest extent permitted by applicable law, irrespective of any other circumstance whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor (other than payment in full in cash of the Secured Obligations, other than Obligations (or any portion thereof) that are contingent in nature and for which no claim has been made (“Unliquidated Obligations”)), it being the intent of this Section 12.2 that the obligations of the Guarantors hereunder shall be absolute and unconditional under any and all circumstances.  Each Guarantor agrees that it shall have no right of subrogation, indemnity, reimbursement 

or contribution against any other Guarantor for amounts paid under this Article XII until such time as the Secured Obligations (other than Unliquidated Obligations) have been indefeasibly paid in full in cash and the Commitments have expired or terminated.
Without limiting the generality of the foregoing, it is agreed that, to the fullest extent permitted by law, the occurrence of any one or more of the following shall not alter or impair the liability of any Guarantor hereunder, which shall remain absolute and unconditional as described above:
(b)  at any time or from time to time, without notice to any Guarantor, the time for any performance of or compliance with any of the Secured Obligations shall be extended, or such performance or compliance shall be waived;
(c)   the maturity of any of the Secured Obligations shall be accelerated, or any of the Secured Obligations shall be modified, supplemented or amended in any respect, or any right under any of the Loan Documents or other documents relating to the Secured Obligations shall be waived  or any other guarantee of any of the Secured Obligations or any security therefor shall be released, impaired or exchanged in whole or in part or otherwise dealt with;
(d)  any Lien granted to, or in favor of, the Collateral Agent or any other holder of the Secured Obligations as security for any of the Secured Obligations shall fail to attach or be perfected; or
(e)  any of the Secured Obligations shall be determined to be void or voidable (including, without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to the claims of any Person (including, without limitation, any creditor of Guarantor).
(f)  any failure or omission to assert or enforce or agreement or election not to assert or enforce, delay in enforcement, or the stay or enjoining, by order of court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy (whether arising under any Loan Document, any Swap Agreement or any Bank Product Agreement, at law, in equity or otherwise) with respect to the Secured Obligations or any agreement relating thereto, or with respect to any other guaranty of or security for the payment of the Secured Obligations;
(g)  any exercise of remedies with respect to any security for the Secured Obligations (including, without limitation, any collateral, including the Collateral, securing or purporting to secure any of the Secured Obligations) at such time and in such order and in such manner as the Agents and the Secured Parties may decide and whether or not every aspect thereof is commercially reasonable and whether or not such action constitutes an election of remedies and even if such action operates to impair or extinguish any right of reimbursement or subrogation or other right or remedy that any Guarantor would otherwise have, and without limiting the generality of the foregoing or any other provisions hereof, each Guarantor hereby expressly waives any and all benefits which might otherwise be available to such Guarantor under applicable law, including without limitation, California Civil Code Sections 2809, 2810, 2819, 2939, 2845, 2848, 2849, 2850, 2855, 2899 and 3433;
(h)  any other circumstance whatsoever which may or might in any manner or to any extent vary the risk of any Guarantor as an obligor in respect of the Secured Obligations or which constitutes, or might be construed to constitute, an equitable or legal discharge of the Borrower or any other Guarantor for the Secured Obligations, or of such Guarantor under the guarantee contained in this Article XII or of any security interest granted by any Guarantor, whether in an Insolvency Proceeding or in any other instance; or
(i)    with respect to its obligations hereunder, each Guarantor hereby expressly waives diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that the Agents or any other holder of the Secured Obligations exhaust any right, power or remedy or proceed against any Person under any of the Loan Documents or other documents relating to the Secured Obligations, or against any other Person under any other guarantee of, or security for, any of the Secured Obligations.

12.3  Reinstatement. The obligations of each Guarantor under this Article XII shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of any Person in respect of the Secured Obligations is rescinded or must be otherwise restored by any holder of any of the Secured Obligations, whether as a result of any proceedings under any debtor relief law, and each Guarantor agrees that it will jointly and severally indemnify the Agents and each holder of the Secured Obligations on demand for all reasonable costs and expenses (including, without limitation, the fees, charges and disbursements of one counsel for the Agents, taken as a whole, and one counsel for the holders of any Secured Obligations, taken as a whole) incurred by the Agents or such holders of the Secured Obligations in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any proceedings under any debtor relief law.
12.4  Certain Additional Waivers. Each Guarantor further agrees that it shall have no right of recourse to security for the Secured Obligations, except through the exercise of rights of subrogation pursuant to Section 12.2 and through the exercise of rights of contribution pursuant to Section 12.6.
12.5  Remedies.  Each Guarantor agrees that, to the fullest extent permitted by law, as between the Guarantors, on the one hand, and the Agents and the other holders of the Secured Obligations, on the other hand, the Secured Obligations may be declared to be forthwith due and payable as provided in Article VII (and shall be deemed to have become automatically due and payable in the circumstances provided in said Article VII) for purposes of Section 12.1 notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Secured Obligations from becoming automatically due and payable) as against any other Person and that, in the event of such declaration (or the Secured Obligations being deemed to have become automatically due and payable), the Secured Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by each Guarantor for purposes of Section 12.1.  Each Guarantor acknowledges and agrees that its respective obligations hereunder are secured in accordance with the terms of the Loan Documents and that the holders of the Secured Obligations may exercise their remedies thereunder in accordance with the terms thereof.
12.6  Rights of Contribution.  Each Guarantor agrees that, in connection with payments made hereunder, each Guarantor shall have contribution rights against the other Guarantors as permitted under applicable law.  Such contribution rights shall be subordinate and subject in right of payment to the obligations of such Guarantors under the Loan Documents and no Guarantor shall exercise such rights of contribution until all Secured Obligations (other than Unliquidated Obligations) have been indefeasibly paid in full in cash and the Commitments have terminated.
12.7  Guaranty of Payment; Continuing Guarantee.  The guarantee given by each Guarantor in this Article XII is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to all Secured Obligations whenever arising.
12.8  Amendment and Restatement (j)This Agreement amends and restates in its entirety the Existing Credit Agreement.  The parties hereto acknowledge and agree that (i) this Agreement and the other documents entered into in connection herewith do not constitute a novation, payment and reborrowing, or termination of the outstanding “Loans” or “Obligations” (each as defined in the Existing Credit Agreement) under the Existing Credit Agreement, as in effect prior to the A&R Effective Date and (ii) such outstanding “Loans” and “Obligations” are in all respects continuing (as amended and restated hereby) as indebtedness and obligations outstanding under this Agreement.
12.9  Grantor Trust Trustee.  It is expressly understood and agreed by the parties hereto that, (a) this Agreement is executed and delivered by Wilmington Trust, National Association, not individually or personally but solely as Trustee under the Trust Agreement (in such capacity, the “Grantor Trust Trustee”), in the exercise of the powers and authority conferred upon and vested in it under the Trust Agreement, (b) each of the representations, undertakings and agreements herein made on the part of the Grantor Trust Trustee as a Lender is made and intended not as the personal representation, undertaking or agreement of Wilmington Trust, National Association but is made and intended for the purpose of binding only the trust estate created pursuant to the Trust Agreement, (c) nothing herein contained shall be construed as creating any liability on the part of Wilmington Trust, National Association individually or personally, to perform any covenant or obligation of the Grantor Trust Trustee as a Lender, either expressed or implied, contained herein, all such liability, if any, being expressly waived by the parties hereto and by any Person claiming by, through or under the parties hereto, (d) Wilmington Trust, National Association has not made any investigation as to the accuracy of any representations, warranties or other obligations of the Grantor 

Trust Trustee as a Lender under this Agreement or any other related documents and (e) under no circumstances shall Wilmington Trust, National Association be personally liable for the payment of any indebtedness or expenses of the Grantor Trust Trustee as a Lender or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Grantor Trust Trustee as a Lender under this Agreement or any other related documents.  Notwithstanding the foregoing, if the Grantor Trust Trustee is no longer a Lender under this Agreement, this Section 12.9 shall have no applicability to any Lender succeeding to the Grantor Trust Trustee’s interests as Lender under this Agreement.
 [Signature pages to follow.]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the date first set forth above.
												
			 	ARES COMMERCIAL REAL ESTATE CORPORATION, 
a Maryland corporation, as Borrower

			 	 
			By:	/s/ Elaine McKay
			Name:	Elaine McKay
			Title:	Vice President
				
				
				ACRC HOLDINGS LLC, 
a Delaware limited liability company, as Guarantor

				
			By:	/s/ Elaine McKay
			Name:	Elaine McKay
			Title:	Vice President
				
				
				ACRC WAREHOUSE HOLDINGS LLC,
a Delaware limited liability company, as Guarantor

				
			By:	/s/ Elaine McKay
			Name:	Elaine McKay
			Title:	Vice President
				
				
				ACRC MEZZ HOLDINGS LLC,
a Delaware limited liability company, as Guarantor

				
			By:	/s/ Elaine McKay
			Name:	Elaine McKay
			Title:	Vice President
				
				

												
				WILMINGTON TRUST, NATIONAL ASSOCIATION, not in its individual capacity but solely as Trustee under the Trust Agreement
				
			By:	/s/ Beverly D. Capers
			Name:	Beverly D. Capers
			Title:	Assistant Vice President

												
				CORTLAND CAPITAL MARKET SERVICES LLC,
as Administrative Agent and Collateral Agent

				
			By:	/s/ Winnalynn N. Kantaris
			Name:	Winnalynn N. Kantaris
			Title:	Associate General Counsel

ANNEXES, EXHIBITS AND SCHEDULES

Annex A-1    Lender Commitments
Annex A-2        Delayed Draw Lender Commitments
Exhibit A-1    Form of Assignment and Acceptance
Exhibit A-2    Form of Secured Promissory Note for Loans
Exhibit B-2    Form of Borrowing Base Certificate
Exhibit P-1     Form of Compliance Certificate
Exhibit R-1    Persons Authorized to Request a Loan
Exhibit R-2    Form of Request for Borrowing 
Exhibit R-3    [Reserved]
Exhibit 11.3    Addresses and Information for Notices
Schedule A-1    Agent’s Account
Schedule A-2    Demand Deposit Accounts
Schedule C-1        A&R Effective Date Borrowing Base Eligible Assets 
Schedule C-2        Borrowing Base Debt Subsidiaries 
Schedule 4.2        Securities and Subsidiaries
Schedule 4.3         Consents
Schedule 4.16        Locations of UCC Filings
Schedule 5.13        Post-Closing Items
Schedule 6.1        Debt Outstanding on A&R Effective Date
Schedule 6.2        Liens Securing Debt Outstanding on A&R Effective Date
Schedule 6.10        Negative Pledges

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