Document:

Third Amendment to Credit Agreement

 Exhibit 10.2.3 
  
 CENTRAL GARDEN & PET COMPANY 
  
 THIRD AMENDMENT 
  
 TO CREDIT AGREEMENT 
  
 This THIRD AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is dated as of March 26, 2004 between CENTRAL GARDEN & PET
COMPANY, a Delaware corporation (“Borrower”) and CANADIAN IMPERIAL BANK OF COMMERCE, as administrative agent for Lenders (“Administrative Agent”), and is made with reference to that certain Credit
Agreement dated as of May 14, 2003, as amended to date (as so amended, the “Credit Agreement”), by and among Borrower, the financial institutions listed therein as Lenders, the Co-Syndication Agents named therein, and the
Administrative Agent. Capitalized terms used herein without definition shall have the same meanings herein as set forth in the Credit Agreement. 
  
 RECITALS 
  
 WHEREAS, Borrower, Agents and Lenders desire to amend the Credit Agreement (i) to permit Borrower to receive Revolving Loans of up to $30,000,000 (U.S.
dollar equivalent) denominated in British Pounds Sterling, Canadian Dollars or Euros, (ii) to permit Borrower and Subsidiary Guarantors to make certain secured intercompany loans to Foreign Subsidiaries, including a new subsidiary in the United
Kingdom, (iii) to increase the aggregate amount of the Revolving Loan Commitments by $25,000,000, and (iv) to make certain other amendments as provided herein; 
  

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree as
follows: 
  
 Section 1. AMENDMENTS TO THE CREDIT AGREEMENT
– FOREIGN CURRENCY LOANS AND INTERCOMPANY LOANS 
  
 1.1 Amendments to Section 1: Definitions 
  
 A. New Definitions. Subsection 1.1 of the Credit Agreement is hereby amended by adding the following definitions, inserted in proper alphabetical order: 
  
 ““Approved Foreign Currency” means British Pounds Sterling, Canadian Dollars or
Euros.” 
  
 ““Approved
Jurisdiction” means the United States of America and the United Kingdom.” 

 ““Dollar Equivalent” means U.S. Dollars or, on any date when an
amount expressed in a currency other than U.S. Dollars is to be determined in U.S. Dollars, an equivalent amount of U.S. Dollars determined at the nominal rate of exchange quoted by Administrative Agent in New York City, not later than 9:00 A.M.
(New York time) on the date of determination, to prime banks in New York City for the spot purchase in the New York foreign exchange market of U.S. Dollars with such other currency.” 
  
 ““Exchange Rate” means, on any date
when an amount expressed in a currency other than U.S. Dollars is to be determined, the nominal spot rate of exchange quoted by Administrative Agent in the New York foreign exchange market for the purchase of such currency in exchange for U.S.
Dollars.” 
  
 ““Foreign
Currency Lender” means Lenders that have Foreign Currency Loan Commitments or that have made Foreign Currency Loans, including Fronting Lender (on behalf of Lenders who are Foreign Currency Participants), together with their successors and
permitted assigns pursuant to subsection 10.1.” 
  
 ““Foreign Currency Loan” means Revolving Loans made by Foreign Currency Lenders denominated in an Approved Foreign Currency pursuant to subsection 2.1A(iii).” 
  
 ““Foreign Currency Loan Commitment”
means the commitment of a Foreign Currency Lender to make Foreign Currency Loans to Borrower pursuant to subsection 2.1A(iii), and “Foreign Currency Loan Commitments” means such commitments of all such Lenders in the
aggregate.” 
  
 ““Foreign
Currency Participant” has the meaning set forth in subsection 2.1A(iv).” 
  
 ““Foreign Currency Participation” has the meaning set forth in subsection 2.1A(iv).” 
  
 ““Foreign Loan Party” means each
Subsidiary of Borrower which is organized under the laws of the United Kingdom or any political subdivision thereof and which has either executed an Intercompany Note or Intercompany Note Guaranty, which Intercompany Note or Intercompany Note
Guaranty is secured by a security interest in substantially all of such Subsidiary’s real, personal and mixed property.” 
  
 ““Fronting Lender” means Administrative Agent.” 
  
 ““Intercompany Collateral Documents” means all such agreements, documents and
instruments that, in Administrative Agent’s reasonable judgment, are necessary or desirable (a) to create a First Priority Lien in favor of Borrower (or a security trustee in lieu of Borrower) in substantially all personal and mixed property of
each Foreign Loan Party as security for such 
  

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 Person’s obligations under the applicable Intercompany Note and (b) to evidence a First Priority
Lien in favor of Borrower (or a security trustee in lieu of Borrower) in substantially all personal and mixed property of each Intercompany Note Guarantor as security for such Intercompany Note Guarantor’s obligations under the Intercompany
Note Guaranty to which it is a party, all in form and substance satisfactory to Administrative Agent.” 
  
 ““Intercompany Loan” means the proceeds of Loans advanced by Borrower or a Subsidiary Guarantor to a Foreign Loan
Party under an Intercompany Note.” 
  
 ““Intercompany Note” means a promissory note made by a Foreign Loan Party to the order of Borrower or a Subsidiary Guarantor, in form and substance acceptable to Administrative Agent, evidencing such Person’s
obligations to repay the credit extensions made by Borrower to such Person as permitted under Subsection 7.1 hereof.” 
  
 ““Intercompany Note Guarantors” means, individually and collectively, each Subsidiary of each Foreign Loan Party
that has executed an Intercompany Note.” 
  
 ““Intercompany Note Guaranty” means that Intercompany Note Guaranty (or Intercompany Note Guaranties) to be executed and delivered by each Intercompany Note Guarantor from time to time in accordance with subsection
6.8D, in form and substance acceptable to Administrative Agent.” 
  
 ““Mandatory Cost Rate” means, with respect to any period, a rate per annum determined in accordance with Schedule 1.1.” 
  
 ““Overnight Rate” means, for any day, (a) with respect to payments in U.S. Dollars,
the Federal Funds Effective Rate and (b) with respect to payments in an Approved Foreign Currency, the rate of interest per annum at which overnight deposits in the applicable Approved Foreign Currency, in an amount approximately equal to the amount
with respect to which such rate is being determined, would be offered for such day by CIBC’s principal office in London to major banks in the London or other applicable offshore interbank market.” 
  
 B. Adjusted LIBOR. Subsection 1.1 of the Credit Agreement is hereby
further amended by adding the following to the end of the definition of “Adjusted LIBOR” appearing therein: 
  
 “For any Interest Period with respect to any LIBOR Loan advanced by a Lender required to comply with the relevant requirements of the
Bank of England and the Financial Services Authority of the United Kingdom, Adjusted LIBOR shall be the sum of (a) the rate determined in accordance with the first sentence of this definition and (b) the Mandatory Cost Rate for such Interest
Period.” 
  

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 C. Business Day. Subsection 1.1 of the Credit Agreement is hereby further amended by deleting the
definition of “Business Day” appearing therein and substituting the following therefor: 
  
 ““Business Day” means any day excluding Saturday, Sunday and any day which (a) with respect to credit extensions
other than Loans denominated in an Approved Foreign Currency, is a legal holiday under the laws of the State of New York or is a day on which banking institutions located in such state are authorized or required by law or other governmental action
to close, (b) with respect to all notices, determinations, fundings and payments in connection with Adjusted LIBOR or any LIBOR Loan, is not a day for trading by and between banks in Dollar deposits in the London Interbank Market, and (c) with
respect to Loans denominated in an Approved Foreign Currency, is a legal holiday under the laws of the State of New York or is a day on which banking institutions located in such state are authorized or required by law or other governmental action
to close, or is a day on which dealings in deposits denominated in the applicable Approved Foreign Currency are not carried out in London or by Administrative Agent’s lending office in the country of such Approved Foreign Currency (or such
other office as may be designated by Administrative Agent), and with respect to Loans denominated in Euros, is a day on which the Trans-European Automated Real-Time Gross Settlement Express Transfer (“TARGET”) system is not
operating.” 
  
 D. Collateral Documents. Subsection
1.1 of the Credit Agreement is hereby further amended by amending the definition of “Collateral Documents” appearing therein by adding the following at the end thereof: 
  
 “, including, without limitation, Liens granted to Borrower (or to a security trustee in lieu of
Borrower) under the Intercompany Notes, Intercompany Collateral Documents, and Intercompany Note Guaranties, which Liens have been assigned to Administrative Agent (or which security trustee agrees to act in accordance with Administrative
Agent’s instructions) as security for any or all of the Obligations. For purposes of this Agreement, references to “Liens in favor of Administrative Agent” shall include Liens described in the preceding sentence, whether such Liens
were granted by a Loan Party initially in favor of Administrative Agent or were granted initially in favor of Borrower (or a security trustee in lieu of Borrower).”  
  
 E. Dollars. Subsection 1.1 of the Credit Agreement is hereby further amended by amending the definition of
“Dollars” appearing therein by changing such term to “U.S. Dollars”, and, accordingly, the Credit Agreement is hereby further amended to change the defined term “Dollars” at each appearance thereof to “U.S.
Dollars”.  
  
 F. LIBOR Loans. Subsection 1.1
of the Credit Agreement is hereby further amended by amending the definition of “LIBOR Loans” appearing therein by adding the following to the end thereof: “, which may be denominated in U.S. Dollars or an Approved Foreign Currency.
LIBOR Loans include all Foreign Currency Loans.” 
  

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 G. Loan Documents. Subsection 1.1 of the Credit Agreement is hereby further amended by amending
the definition of “Loan Documents” appearing therein by adding the following phrase immediately after the phrase “the Environmental Indemnity Agreement” appearing therein: “, the Intercompany Notes, the Intercompany Note
Guaranties,”. 
  
 H. Foreign Currency Credit Extensions.
A new Subsection 1.4 is hereby added to the end of Section 1 of the Credit Agreement as follows: 
  
 “1.4 Foreign Currency Credit Extensions; Currency Equivalents. 
  
 With respect to each borrowing, conversion or continuation of any Loans denominated in an Approved Foreign
Currency and on at least one date in each calendar quarter and on any additional dates as may be specified by Administrative Agent or Requisite Lenders, Administrative Agent shall determine the Dollar Equivalent of such Approved Foreign Currency.
Except as may be otherwise provided for herein, the applicable amount of any currency for purposes of the Loan Documents shall be the Dollar Equivalent amount as so determined by Administrative Agent.” 
  
 I. Change of Currency. A new Subsection 1.5 is hereby added to the
end of Section 1 of the Credit Agreement as follows: 
  
 “1.5 Change of Currency. 
  
 Unless otherwise prohibited by law, if more than one currency or currency unit are recognized at the same time by the central bank of any country as the lawful currency of that country, then: (i) any reference in the Loan Documents to, and
any obligations arising under the Loan Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Administrative Agent (after consultation with the Borrower); and
(ii) any translation from one currency or currency unit to another shall be at the official rate of exchange recognized by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Administrative
Agent (acting reasonably). If a change in any currency of a country occurs, this Agreement will, to the extent reasonably necessary or desirable in the opinion of Administrative Agent (after consultation with the Borrower), be amended to comply with
any generally accepted conventions and market practice in the relevant interbank market and otherwise to reflect the change in currency.” 
  

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 1.2 Amendments to Section 2: Amounts and Terms of Commitments and Loans 
  
 A. Revolving Loan Commitments. Subsection 2.1A(ii) of the Credit
Agreement is hereby amended by deleting the last paragraph thereof and substituting the following therefor: 
  
 “Anything contained in this Agreement to the contrary notwithstanding, the Revolving Loans and the Revolving Loan Commitments shall
be subject to the limitations that (a) in no event shall the Total Utilization of Revolving Loan Commitments at any time exceed the Revolving Loan Commitments then in effect and (b) in no event shall the aggregate amount of all Revolving Loans that
are Foreign Currency Loans exceed the Dollar Equivalent of $30,000,000.” 
  
 B. Foreign Currency Loan Commitments. Subsection 2.1A of the Credit Agreement is hereby amended by adding new clauses (iii), (iv) and (v) to the end thereof as follows: 
  
 “(iii) Foreign Currency Loan Commitments. Each
Foreign Currency Lender severally agrees, subject to the limitations set forth below, to make a portion of its Revolving Loan Commitments available to Borrower from time to time during the period from March 26, 2004 to but excluding the Revolving
Loan Commitment Termination Date by making Foreign Currency Loans to Borrower in an aggregate amount not exceeding its Pro Rata Share of the aggregate amount of the Dollar Equivalent of the Foreign Currency Loan Commitments. The Foreign Currency
Loan Commitment of Fronting Lender is equal to the difference between (x) the aggregate Dollar Equivalent of the Foreign Currency Loan Commitments and (y) the aggregate Dollar Equivalent of the Foreign Currency Loan Commitments of Foreign Currency
Lenders other than Fronting Lender, notwithstanding the fact that such Foreign Currency Loans, when aggregated with Fronting Lender’s outstanding Revolving Loans and its Pro Rata Share of the Letter of Credit Usage then in effect, may exceed
Fronting Lender’s Revolving Loan Commitment. The aggregate original amount of the Dollar Equivalent of the Foreign Currency Lenders’ Foreign Currency Loan Commitments is $30,000,000; provided that the Foreign Currency Loan Commitments of
Foreign Currency Lenders shall be adjusted to give effect to any assignments of the Foreign Currency Loan Commitments pursuant to subsection 10.1B; and provided further that any reduction of the Revolving Loan Commitments pursuant to subsection 2.4
or 6.4C that reduces the aggregate Revolving Loan Commitments to an amount less than the then-current Dollar Equivalent of the Foreign Currency Loan Commitments shall result in an automatic corresponding reduction of the Foreign Currency Loan
Commitments to the amount of the Revolving Loan Commitments, as so reduced, without any further action on the part of Borrower, Administrative Agent or Lenders. Each Foreign Currency Lender’s Foreign Currency Loan Commitment shall expire on the
Revolving Loan Commitment Termination Date and all Foreign Currency Loans and all other amounts owed hereunder with respect to Foreign Currency Loans and the Foreign Currency Loan 
  

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 Commitments shall be paid in full no later than that date. Subject to the provisions of subsection 2.4A,
amounts borrowed under this subsection 2.1A(iii) may be repaid and reborrowed to but excluding the Revolving Loan Commitment Termination Date. 
  
 Anything contained in this agreement to the contrary notwithstanding, the Foreign Currency Loans and the Foreign Currency Loan Commitments
shall be subject to the limitations regarding the Revolving Loan Commitments set forth in subsection 2.1A(ii). 
  
 (iv) Foreign Currency Participations. Each Lender that is not a Foreign Currency Lender shall be deemed to have purchased, and
hereby agrees to purchase, a participation in each outstanding Foreign Currency Loan made by Fronting Lender in an amount equal to its Pro Rata Share of the unpaid amount of all Foreign Currency Loans being made at such time together with accrued
interest thereon (each, a “Foreign Currency Participation”). Upon demand from Fronting Lender if any amount in respect of the principal or interest owing to Fronting Lender is not paid by or on behalf of Borrower when due in
accordance with this Agreement, each such Lender (a “Foreign Currency Participant”) shall deliver to Fronting Lender an amount equal to the Dollar Equivalent of its respective Foreign Currency Participation in same day funds in U.S.
Dollars at the Funding and Payment Office designated by Fronting Lender. If any amount required to be paid by any Foreign Currency Participant to Fronting Lender pursuant to this subsection 2.1A(iv) is not paid to Fronting Lender when due but is
paid within three Business Days after the date such payment is due, such Foreign Currency Participant shall pay to Fronting Lender on demand (or, at Fronting Lender’s election, Fronting Lender may deduct from any interest payments made by
Borrower in respect of the Foreign Currency Loan) an amount equal to the product of (i) such amount, times (ii) the Overnight Rate in respect of the related Approved Foreign Currency determined by Fronting Lender during the period from and including
the date such payment is required to the date on which such payment is immediately available to Fronting Lender, times (iii) a fraction the numerator of which is the number of days that elapse during such period and the denominator of which is 360.
If such amount required to be paid by any Foreign Currency Participant pursuant to this subsection 2.1A(iv) is not in fact made available to Fronting Lender by such Foreign Currency Participant within three Business Days after the date such payment
is due, Fronting Lender shall be entitled to recover from such Foreign Currency Participant, on demand (or, at Fronting Lender’s election, Fronting Lender may deduct from any interest payments made by Borrower in respect of the Foreign Currency
Loan), such amount with interest thereon calculated from such due date at the rate per annum equal to the rate applicable thereto in accordance with the preceding sentence plus the Applicable LIBOR Margin in respect of LIBOR Loans. A
certificate of Fronting Lender submitted to any Foreign Currency Participant with respect to any amounts owing under this subsection 2.1A(iv) shall be conclusive in the absence of manifest error. If Fronting Lender receives a payment with respect to
any Foreign Currency Loan in which Foreign Currency Participations have been 
  

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 purchased and as to which the purchase price has been requested by Fronting Lender and delivered by a
Foreign Currency Participant as provided in this subsection 2.1A(iv), Fronting Lender shall promptly distribute to such Foreign Currency Participant its ratable share of such payment. If Fronting Lender shall pay any amount to a Foreign Currency
Participant pursuant to this subsection 2.1A(iv) in the belief or expectation that a related payment has been or will be received or collected and such related payment is not received or collected by Fronting Lender, then such Foreign Currency
Participant will promptly on demand by Fronting Lender return such amount to Fronting Lender, together with interest thereon at such rate as Fronting Lender shall determine to be customary between banks for correction of errors. If Fronting Lender
determines at any time that any amount received or collected by Fronting Lender pursuant to this Agreement is to be returned to Borrower under this Agreement or paid to any other Person or entity pursuant to any insolvency law, any sharing clause in
this Agreement, or otherwise, then, notwithstanding any other provision of this Agreement, Fronting Lender shall not be required to distribute any portion thereof to any Foreign Currency Participant, and each such Foreign Currency Participant will
promptly on demand by Fronting Lender repay any portion that Fronting Lender shall have distributed to such Foreign Currency Participant, together with interest thereon at such rate, if any, as Fronting Lender shall pay to Borrower or such other
Person or entity with respect thereto. If any amounts returned to Borrower pursuant to this subsection 2.1A(iv) are later recovered by Fronting Lender, Fronting Lender shall promptly pay to each Foreign Currency Participant a proportionate share
based on such Foreign Currency Participant’s Foreign Currency Participation. 
  
 If Fronting Lender incurs any costs or expenses (including, without limitation, in indemnifying Administrative Agent pursuant to
subsection 9.4) in connection with any effort to enforce or protect rights or interests relating to a Foreign Currency Loan, other than in the case of Fronting Lender’s gross negligence or willful misconduct as determined by a final
non-appealable judgment of a court of competent jurisdiction, then each Foreign Currency Participant will reimburse Fronting Lender on demand for each such Foreign Currency Participant’s proportionate share based on such Foreign Currency
Participant’s Foreign Currency Participation of any portion of such cost or expenses which is not reimbursed by or on behalf of Borrower. If Fronting Lender recovers any amount for which Fronting Lender has previously been reimbursed by a
Foreign Currency Participant hereunder, Fronting Lender shall promptly distribute to each such Foreign Currency Participant such Foreign Currency Participant’s proportionate share thereof based on its Foreign Currency Participation. 

 
 Anything contained herein to the contrary
notwithstanding, the obligation of each Foreign Currency Participant to purchase a Foreign Currency Participation in any unpaid Foreign Currency Loans pursuant to this subsection 2.1A(iv) shall be absolute and unconditional and shall not be affected
by any circumstance, including (1) any set-off, counterclaim, recoupment, defense or 
  

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 other right which such Lender may have against Fronting Lender, Borrower or any other Person for any
reason whatsoever; (2) the occurrence or continuation of an Event of Default or a Potential Event of Default; (3) any adverse change in the business, operations, properties, assets, condition (financial or otherwise) or prospects of Borrower or any
of its Subsidiaries; (4) any breach of this Agreement or any other Loan Document by any party thereto; or (5) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. In no event shall the Foreign
Currency Participation be construed as a loan or other extension of credit by a Lender to Fronting Lender. 
  
 (v) Participation Fees. Subject to the immediately succeeding sentence, with respect to Foreign Currency Loans, Foreign Currency
Participants shall be entitled to receive as compensation a participation fee equal to such Foreign Currency Participant’s ratable share of an amount equal to the excess of the interest received by Fronting Lender from the Borrower with respect
to Foreign Currency Loans for the period for which the determination is being made over an amount equal to the Adjusted LIBOR on such Foreign Currency Loans. If such Foreign Currency Participant has funded its participation in a Foreign Currency
Loan, Fronting Lender shall instead pay to such Foreign Currency Participant such amounts as are required pursuant to subsection 2.1A(iv). All such participation fees shall be paid by Fronting Lender to Foreign Currency Participants in U.S. Dollars,
not more than two Business Days after receipt by Fronting Lender of each such payment of interest from or on behalf of the Borrower with respect to Foreign Currency Loans, calculated at the applicable Exchange Rate for the currency of the Loan as of
the applicable date of determination.” 
  
 C. Rate of
Interest. Subsection 2.2A of the Credit Agreement is hereby amended by adding the following phrase to the end of the second sentence thereof: “; provided that each Foreign Currency Loan shall bear interest at a rate determined by
reference to Adjusted LIBOR.” 
  
 D. Interest
Payments. Subsection 2.2C of the Credit Agreement is hereby amended by adding the following phrase to the end thereof: “; provided further that if market practice differs as to Foreign Currency Loans, Administrative Agent in
its discretion may notify Borrower and Lenders of such other market practice and upon such notification, interest on such Foreign Currency Loans shall accrue and be payable in accordance with such market practice.” 
  
 E. Computation of Interest. Subsection 2.2F of the Credit Agreement
is hereby amended by adding the following phrase to the end thereof: “; provided further that if market practice differs as to Foreign Currency Loans, Administrative Agent in its discretion may notify Borrower and Lenders of such
other market practice and upon such notification, interest on such Foreign Currency Loans shall be calculated in accordance with such market practice.” 
  

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 F. Fees. Subsection 2.3 of the Credit Agreement is hereby amended by renumbering the existing
subsection 2.3B as “2.3C” and by adding a new subsection 2.3B as follows: 
  
 “B. Foreign Currency Lending Fees. Borrower agrees to pay to Fronting Lender (i) an offshore lending fee of 0.125% per annum
of the Dollar Equivalent amount of the Foreign Currency Loans fronted by Fronting Lender (which shall not include such Lender’s ratable share of any Foreign Currency Loans not fronted) during the period each such Foreign Currency Loan remains
outstanding, such fee to be calculated on the basis of a 360-day year and the actual number of days elapsed and to be payable in U.S. Dollars, quarterly in arrears on the first Business Day of each Fiscal Quarter, commencing on the first such date
to occur after any such Foreign Currency Loan is made and (ii) on each Interest Payment Date, a fronting fee equal to Fronting Lender’s cost of acquiring the Approved Foreign Currency, based on prevailing rates in the applicable foreign
currency market.” 
  
 G. Prepayments and Reductions from
Net Asset Sale Proceeds. Subsection 2.4B(iii)(a) of the Credit Agreement is hereby amended by adding the following after the first sentence thereof: 
  
 “In the case of an Asset Sale by a Foreign Loan Party, Borrower shall cause such Foreign Loan Party to either (1) prepay the Intercompany Loans made
to such Foreign Loan Party or (2) reinvest such Net Asset Sale Proceeds to the extent permitted pursuant to the preceding clause (2). To the extent that the Net Asset Sale Proceeds receivable by any Foreign Loan Party exceed the aggregate
outstanding amount of such Foreign Loan Party’s Intercompany Loans, Borrower shall prepay the Loans of Borrower in an aggregate amount equal to such excess proceeds and the Revolving Loan Commitments shall be permanently reduced in an amount
equal to such excess proceeds.” 
  
 H. Prepayments and
reductions from Net Insurance/ Condemnation Proceeds. Subsection 2.4B(iii)(b) of the Credit Agreement is hereby amended by adding the following to the end thereof: 
  
 “In the case of receipt of such Net Insurance/Condemnation Proceeds by a Foreign Loan Party, such Foreign Loan Party
shall prepay the Intercompany Loans in an aggregate amount equal to the amount of such Net Insurance/Condemnation Proceeds in a manner consistent with the prepayments made pursuant to the foregoing subsection 2.4B(iii)(a).” 
  
 I. Calculations of Net Proceeds Amounts; Additional Prepayments and
Reductions Based on Subsequent Calculations. Subsection 2.4B(iii)(g) of the Credit Agreement is hereby amended by adding the following to the end thereof: 
  

“With respect to Intercompany Loans, the Officer’s Certificate so delivered shall indicate any related reduction in Intercompany Loans or
Intercompany Notes, 
  

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 and, to the extent applicable (in the event the Net Proceeds Amount is determined to be greater than as
set forth on such Officer’s Certificate) Foreign Loan Parties shall prepay the Intercompany Loans in an amount equal to the amount of such excess.” 
  
 J. Prepayments due to Reductions or Restrictions of Revolving Loan Commitments. Subsection 2.4B(iii)(h) of the Credit Agreement is hereby amended
by deleting the text thereof appearing under the heading in its entirety and substituting the following therefor: 
  
 “Borrower shall from time to time prepay the Revolving Loans (or, if the Revolving Loans have been prepaid in full, cash collateralize Letters of
Credit) to the extent necessary so that (i) the Total Utilization of Revolving Loan Commitments shall not at any time exceed the Revolving Loan Commitments then in effect and (ii) the aggregate amount of all Revolving Loans that are Foreign Currency
Loans shall not at any time exceed the Dollar Equivalent of $30,000,000.” 
  
 K. Prepayments Due to Prepayments of Intercompany Loans. Subsection 2.4B(iii) of the Credit Agreement is hereby amended by adding a new clause (i) to the end thereof as follows: 
  
 “(i) Prepayments Due to Prepayments of Intercompany
Loans. No later than the first Business Day following Borrower’s receipt of any repayment of Intercompany Loans by any Foreign Loan Party, Borrower shall prepay the Loans but without any permanent reduction in the Revolving Loan Commitments
unless otherwise required pursuant to the foregoing subsections 2.4B(iii)(a)-(b) in an aggregate amount equal to the amount of such Intercompany Loan repayment.” 
  
 L. Manner and Time of Payment. Subsection 2.4C(i) of the Credit Agreement is hereby amended by deleting the first
sentence thereof and substituting the following therefor: 
  
 “All payments by or on behalf of Borrower of principal, interest, fees and other Obligations hereunder and under the Notes shall be made in the currency of such Obligations in same day funds, without defense, setoff or counterclaim,
free of any restriction or condition, and delivered to Administrative Agent not later than 1:00 P.M. (New York City time), with respect to Loans denominated in U.S. Dollars, and at such local times in the countries of settlement as specified from
time to time by Administrative Agent, with respect to Loans denominated in Approved Foreign Currencies, on the date due at the Administrative Agent’s Office for the account of Lenders; funds received by Administrative Agent after that time on
such due date shall be deemed to have been paid by Borrower on the next succeeding Business Day.” 
  

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 M. Apportionment of Payments. Subsection 2.4C(iii) of the Credit Agreement is hereby amended by
adding the following immediately after the second sentence thereof: 
  
 “All such distributions to Lenders who are Foreign Currency Participants with respect to Foreign Currency Loans shall be made in U.S. Dollars, calculated at the applicable Exchange Rate for such currency as of the applicable date of
determination.” 
  
 1.3 Amendments to Section 6:
Borrower’s Affirmative Covenants. 
  
 A.
Subsidiaries of Foreign Loan Parties. Subsection 6.8 of the Credit Agreement is hereby amended by adding a new subsection 6.8D to the end thereof as follows: 
  
 “D. Subsidiaries of Foreign Loan Parties. If any Person becomes a Foreign Loan Party or a
Subsidiary of a Foreign Loan Party after the date hereof, Borrower will promptly notify Administrative Agent of that fact and, unless Borrower otherwise requests and Administrative Agent consents thereto, cause such Foreign Loan Party or Subsidiary
to execute and deliver to Borrower counterparts of, or such additional, Intercompany Notes, Intercompany Note Guaranties and Intercompany Collateral Documents, and to take all such further actions and execute all such further documents and
instruments (including actions, documents and instruments comparable to those described in Subsection 4.1L) as may be reasonably necessary or, in the reasonable opinion of Administrative Agent, desirable to create in favor of Administrative Agent,
for the benefit of Lenders, a First Priority Lien on all of the personal and mixed property assets of such Foreign Loan Party or such Subsidiary of such Foreign Loan Party.” 
  
 1.4 Amendments to Section 7: Borrower’s Negative Covenants. 
  
 A. Indebtedness. Subsection 7.1 of the Credit Agreement is hereby
amended (i) by deleting the word “and” at the end of clause (vii) thereof, (ii) by substituting “; and” for the period at the end of clause (viii) thereof, and (iii) by adding a new clause (ix) thereto as follows: 
  
 “(ix) any Foreign Loan Party may become and remain
liable with respect to any Indebtedness to any other Foreign Loan Party in the same Approved Jurisdiction, and each Foreign Loan Party may become and remain liable with respect to Indebtedness owed to Borrower or a Subsidiary Guarantor, which
Indebtedness is evidenced by an Intercompany Note, guaranteed by the Intercompany Note Guaranties and secured by the Intercompany Collateral Documents pursuant to the provisions of this Agreement, provided that (a) in connection with the incurrence
of any such Indebtedness by Borrower’s Subsidiary in the United Kingdom, Central Garden & Pet Company Limited, such 
  

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 Subsidiary shall have acquired substantially all of the assets of Lawrence PLC’s global pet supplies
business (other than intellectual property) or such other assets as may be approved by Administrative Agent, on terms and conditions acceptable to Administrative Agent, (b) the aggregate amount of all such Indebtedness of all Foreign Loan Parties
shall not exceed the lesser of (1) the Dollar Equivalent of $17,000,000 and (2) the fair market value of the assets owned by such Foreign Loan Parties incurring such Indebtedness, in each case determined as of the date such Indebtedness is incurred
and (c) the Intercompany Note shall have been pledged to Administrative Agent pursuant to the Security Agreement, and a Lien on all such intercompany Indebtedness shall have been granted to Administrative Agent for the benefit of
Lenders.” 
  
 B. Investments; Acquisitions.
Subsection 7.3 of the Credit Agreement is hereby amended by deleting clause (iii) thereof in its entirety and substituting the following therefor: “(iii) Borrower and its Subsidiaries may make intercompany loans to the extent permitted under
Subsections 7.1(iii) or (ix);” and (ii) by deleting clause (ii) thereof in its entirety and substituting the following therefor: 
  
 “(ii) Borrower and its Subsidiaries may continue to own the Investments owned by them as of the Closing Date in any Subsidiaries of
Borrower; Borrower and Subsidiary Guarantors may make and own additional Investments in Subsidiary Guarantors or in Borrower; any Foreign Loan Party may make and own Investments in any other Foreign Loan Party in the same Approved Jurisdiction or as
otherwise permitted pursuant to Subsection 7.1(ix); and any Subsidiary which is not a Subsidiary Guarantor or Foreign Loan Party may make and own Investments in Borrower or any other Subsidiary;” 
  
 C. Contingent Obligations. Subsection 7.4 of the Credit Agreement is
hereby amended (i) by adding the phrase “and the Intercompany Note Guaranties” to the end of clause (i) thereof and (ii) by adding the phrase “and with respect to Contingent Obligations in connection with the guaranty of two real
property leases of Central Garden & Pet Company Limited in the United Kingdom” to the end of clause (iv) thereof. 
  
 D. Restriction on Fundamental Changes; Asset Sales. Subsection 7.7 of the Credit Agreement is hereby amended by adding the following to the end of
clause (i) thereof: 
  
 “; and any Foreign Loan Party may be
merged with or into any other Foreign Loan Party in the same Approved Jurisdiction, or be liquidated, wound up or dissolved, or all or any part of its business, property or assets may be conveyed, sold, leased, transferred or otherwise disposed of,
in one transaction or a series of transactions, to any other Foreign Loan Party in the same Approved Jurisdiction;” 
  

 13 

 1.5 Amendments to Section 8: Events of Default. 
  
 A. Remedies Upon Default. Section 8 of the Credit Agreement is
hereby amended by adding the following to the end of the first text paragraph appearing after subsection 8.15 (such paragraph beginning with the word “THEN”): 
  
 “Upon the occurrence of an Event of Default, at the option of Administrative Agent, any Foreign Currency Loans shall be
converted into Loans denominated in U.S. Dollars at the then-current Exchange Rate and shall thereafter be payable only in U.S. Dollars.” 
  
 1.6 Amendments to Section 10: Miscellaneous. 
  
 A. Judgment Currency. Section 10 of the Credit Agreement is hereby amended by adding a new subsection 10.25 to the end thereof as follows:

  
 “10.25 Judgment Currency. 
  
 If, for the purposes of Administrative Agent or Lenders
obtaining judgment in any court, it is necessary to convert a sum due hereunder in U.S. Dollars into another currency, the parties hereto agree, to the fullest extent permitted by law, that the rate of exchange used shall be that at which in
accordance with normal banking procedures Administrative Agent or a Lender could purchase the U.S. Dollars with such other currency in New York, New York on the Business Day immediately preceding the day on which any such judgment, or any relevant
part thereof, is given. 
  
 The obligations of
Borrower in respect of any sum due from it to Administrative Agent or any Lender hereunder shall, notwithstanding any judgment in a currency other than U.S. Dollars, be discharged only to the extent that on the Business Day following receipt by
Administrative Agent or such Lender of any sum adjudged to be so due in such other currency Administrative Agent or such Lender may in accordance with normal banking procedures purchase U.S. Dollars with such other currency; if the U.S. Dollars so
purchased are less than the sum originally due Administrative Agent or such Lender in U.S. Dollars, Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify Administrative Agent or such Lender against such loss,
and if the U.S. Dollars so purchased exceed the sum originally due to Administrative Agent or such Lender in U.S. Dollars, Lender shall remit such excess to Borrower.” 
  
 1.7 Amendments to Exhibits. 
  
 Exhibit I (Form of Notice of Borrowing), Exhibit II (Form of Notice of Conversion/Continuation) and Exhibit VI (Form of
Compliance Certificate) to the Credit Agreement are hereby amended and restated in their entirety as set forth on the attached Annexes A-1, A-2, and A-3 respectively. 
  

 14 

 1.8 Amendments to Schedules. 
  
 Schedule 1.1 (Mandatory Cost Rate) is hereby added to the Credit Agreement as set forth on the attached Annex B-1.

  
 Section 2. AMENDMENTS TO THE CREDIT AGREEMENT –
INCREASE IN REVOLVING LOAN COMMITMENTS 
  
 2.1
Amendments to Section 2: Amounts and Terms of Commitments and Loans 
  
 A. Revolving Loan Commitments. Subsection 2.1A(ii) of the Credit Agreement is hereby amended (i) by deleting the phrase “The
aggregate original amount of the Revolving Loan Commitments is $100,000,000” appearing therein and substituting the phrase “The aggregate amount of the Revolving Loan Commitments is $125,000,000” therefor. 
  
 Section 3. CONDITIONS TO EFFECTIVENESS 
  
 3.1 Conditions to Effectiveness of Section 1. 
  
 Section 1 of this Amendment shall become effective only upon the
satisfaction of all of the following conditions precedent (the date of satisfaction of such conditions being referred to herein as the “Foreign Currency Loan Effective Date”): 
  
 A. On or before the Foreign Currency Loan Effective Date, Borrower
shall deliver to Lenders (or to Administrative Agent for Lenders with sufficient originally executed copies, where appropriate, for each Lender and its counsel) copies of this Amendment, executed by Borrower and each Credit Support Party.

  
 B. On or before the Foreign Currency Loan Effective
Date, Administrative Agent shall have executed copies of this Amendment on behalf of itself and consenting Lenders. 
  
 C. On or before the Foreign Currency Loan Effective Date, Borrower and Subsidiary Guarantors shall have taken or caused to be taken all actions,
executed and delivered or caused to be executed and delivered all such agreements, documents and instruments, including but not limited to (i) certificates evidencing 66% of the voting Capital Stock of all Foreign Subsidiaries, and (ii) such
Intercompany Notes, Intercompany Note Guaranties and Intercompany Collateral Documents and documents related thereto required to be delivered under the Credit Agreement as amended by Section 1 hereof, and shall have made or caused to be made all
filings, recordings and registrations that may be reasonably necessary or, in the reasonable opinion of Administrative Agent, desirable in order to create, perfect or maintain in favor of Administrative Agent, for the benefit of Lenders, a First
Priority Lien in the Collateral. 
  

 15 

 D. On or before the Foreign Currency Loan Effective Date, all corporate and other proceedings
taken or to be taken in connection with the transactions contemplated hereby and all documents incidental thereto not previously found acceptable by Administrative Agent, acting on behalf of Lenders, and its counsel shall be satisfactory in form and
substance to Administrative Agent and such counsel, and Administrative Agent and such counsel shall have received all such counterpart originals or certified copies of such documents as Administrative Agent may reasonably request. 
  
 3.2 Conditions to Effectiveness of Section 2. 
  
 Section 2 of this Amendment shall become effective only upon the
satisfaction of all of the following conditions precedent (the date of satisfaction of such conditions being referred to herein as the “Third Amendment Effective Date”): 
  
 A. On or before the Third Amendment Effective Date, all of the
conditions listed in Section 3.1 above shall have been met and Section 1 of this Amendment shall have become effective. 
  
 B. On or before the Foreign Currency Loan Effective Date, Borrower and Subsidiary Guarantors shall have taken or caused to be taken all actions,
executed and delivered or caused to be executed and delivered all such agreements, documents and instruments, including but not limited to amendments to Mortgages relating to the Real Property Assets, and shall have made or caused to be made all
filings, recordings and registrations that may be reasonably necessary or, in the reasonable opinion of Administrative Agent, desirable in order to create, perfect or maintain in favor of Administrative Agent, for the benefit of Lenders, a First
Priority Lien in the Collateral. 
  
 C. On or before the
Third Amendment Effective Date, new or existing Revolving Lenders shall have made, and Administrative Agent shall have accepted, additional Revolving Loan Commitments in an aggregate amount of $25,000,000. 
  
 3.3 Deemed Assignments; Adjustment of Pro Rata Shares

  
 On the Third Amendment Effective Date, the Revolving Loan
Commitments, Pro Rata Shares and outstanding Revolving Loans of each existing Revolving Lender will be adjusted to give effect to the increase in the Revolving Loan Commitments and the addition of one or more Lenders making new Revolving Loan
Commitments. Each Revolving Lender acknowledges that on the Third Amendment Effective Date, (i) each existing Revolving Lender that is not increasing its Pro Rata Share of the Revolving Loan Commitments will be deemed to have assigned an appropriate
portion of its Revolving Loan Commitments and outstanding Revolving Loans to Administrative Agent and (ii) immediately thereafter, Administrative Agent will be deemed to have assigned to each new Revolving Lender and existing Revolving Lender that
is increasing its Pro Rata Share of the Revolving Loan Commitments its new or increased portion of the outstanding Revolving Loans and the Revolving Loan Commitments. Administrative Agent will notify each Revolving Lender of its Pro Rata Share of
the Revolving Loans and Revolving Loan Commitments, as so adjusted. On or before the Third Amendment Effective Date, each new Revolving Lender and each Revolving Lender increasing its Pro Rata 
  

 16 

 Share of the outstanding Revolving Loans in connection with this Amendment shall deliver funds representing the amount of
its increase to Administrative Agent, for distribution to each Revolving Lender whose Pro Rata Share decreased as a result of this Amendment. To the extent that any such adjustment of Pro Rata Shares results in losses or expenses to any Lender as a
result of the prepayment of any LIBOR Loan on a date other than the scheduled last day of the applicable Interest Period, Borrower acknowledges that it shall be responsible for such losses or expenses pursuant to Subsection 2.6D of the Credit
Agreement. 
  
 Section 4. BORROWER’S REPRESENTATIONS AND
WARRANTIES 
  
 In order to induce Lenders to enter into this
Amendment and to amend the Credit Agreement in the manner provided herein, Borrower represents and warrants to each Lender that the following statements are true, correct and complete: 
  
 A. Corporate Power and Authority. Borrower and each Credit Support Party has all requisite corporate power and
authority to enter into this Amendment and to carry out the transactions contemplated by, and perform its obligations under, the Credit Agreement as amended by this Amendment (the “Amended Agreement”). 
  
 B. Authorization of Agreements. The execution and delivery of this
Amendment and the performance of the Amended Agreement have been duly authorized by all necessary corporate action on the part of Borrower and each Credit Support Party. 
  
 C. No Conflict. The execution and delivery by Borrower and each Credit Support Party of this Amendment and the
performance by Borrower of the Amended Agreement do not and will not (i) violate any provision of any law or any governmental rule or regulation applicable to Borrower or any of its Subsidiaries, the Certificate or Articles of Incorporation or
Bylaws of Borrower or any of its Subsidiaries or any order, judgment or decree of any court or other agency of government binding on Borrower or any of its Subsidiaries, (ii) conflict with, result in a breach of or constitute (with due notice or
lapse of time or both) a default under any Contractual Obligation of Borrower or any of its Subsidiaries, (iii) result in or require the creation or imposition of any Lien upon any of the properties or assets of Borrower or any of its Subsidiaries,
except pursuant to the Loan Documents, or (iv) require any approval of stockholders or any approval or consent of any Person under any Contractual Obligation of Borrower or any of its Subsidiaries. 
  
 D. Governmental Consents. The execution and delivery by Borrower and
each Credit Support Party of this Amendment and the performance by Borrower of the Amended Agreement do not and will not require any registration with, consent or approval of, or notice to, or other action to, with or by, any federal, state or other
governmental authority or regulatory body. 
  
 E. Binding
Obligation. This Amendment has been duly executed and delivered by Borrower and each Credit Support Party and this Amendment and the Amended Agreement are the legally valid and binding obligations of Borrower and each Credit Support Party,
enforceable against Borrower and each Credit Support Party in accordance with their respective 
  

 17 

 terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or
limiting creditors’ rights generally or by equitable principles relating to enforceability. 
  
 F. Incorporation of Representations and Warranties From Credit Agreement. The representations and warranties contained in Section 5 of the Credit
Agreement are and will be true, correct and complete in all material respects on and as of the Foreign Currency Loan Effective Date and the Third Amendment Effective Date to the same extent as though made on and as of that date, except to the extent
such representations and warranties specifically relate to an earlier date, in which case they were true, correct and complete in all material respects on and as of such earlier date. 
  
 G. Absence of Default. No event has occurred and is continuing or will result from the consummation of the
transactions contemplated by this Amendment that would constitute an Event of Default or a Potential Event of Default. 
  
 Section 5. ACKNOWLEDGEMENT AND CONSENT 
  
 Borrower is a party to certain Collateral Documents pursuant to which Borrower has created Liens in favor of Administrative Agent on certain Collateral to
secure the Obligations. Each Subsidiary is a party to a Subsidiary Guaranty and certain Collateral Documents pursuant to which such Subsidiary has (i) guarantied the Obligations and (ii) created Liens in favor of Administrative Agent on certain
Collateral to secure the obligations of such Subsidiary under the Subsidiary Guaranty. Borrower and each Subsidiary are collectively referred to herein as the “Credit Support Parties”, and the Subsidiary Guaranties and Collateral
Documents referred to above are collectively referred to herein as the “Credit Support Documents”. 
  
 Each Credit Support Party hereby acknowledges that it has reviewed the terms and provisions of the Credit Agreement and this Amendment and consents to the
amendment of the Credit Agreement effected pursuant to this Amendment. Each Credit Support Party hereby confirms that each Credit Support Document to which it is a party or otherwise bound and all Collateral encumbered thereby will continue to
guaranty or secure, as the case may be, to the fullest extent possible the payment and performance of all “Obligations,” “Guarantied Obligations” and “Secured Obligations,” or other similar terms, as the case may be (in
each case as such terms are defined in the applicable Credit Support Document), including, without limitation, the payment and performance of all such “Obligations,” “Guarantied Obligations” or “Secured Obligations,” or
similar terms, as the case may be, in respect of the Obligations of Borrower now or hereafter existing under or in respect of the Amended Agreement and the Notes. 
  
 Each Credit Support Party acknowledges and agrees that any of the Credit Support Documents to which it is a party or
otherwise bound shall continue in full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of this Amendment. Each Credit Support

  

 18 

 Party represents and warrants that all representations and warranties contained in the Amended Agreement and the Credit
Support Documents to which it is a party or otherwise bound are true, correct and complete in all material respects on and as of the Foreign Currency Loan Effective Date and the Third Amendment Effective Date to the same extent as though made on and
as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case they were true, correct and complete in all material respects on and as of such earlier date. 
  
 Each Credit Support Party (other than Borrower) acknowledges and agrees that
(i) notwithstanding the conditions to effectiveness set forth in this Amendment, such Credit Support Party is not required by the terms of the Credit Agreement or any other Loan Document to consent to the amendments to the Credit Agreement effected
pursuant to this Amendment and (ii) nothing in the Credit Agreement, this Amendment or any other Loan Document shall be deemed to require the consent of such Credit Support Party to any future amendments to the Credit Agreement. 
  
 Section 6. MISCELLANEOUS 
  
 A. Reference to and Effect on the Credit Agreement and the Other Loan
Documents. 
  
 (i) On and after the Foreign Currency Loan
Effective Date and the Third Amendment Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Credit Agreement, and
each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Amended Agreement. 

 
 (ii) Except as specifically amended by this Amendment, the Credit
Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed. 
  
 (iii) The execution, delivery and performance of this Amendment shall not, except as expressly provided herein, constitute a waiver of any provision of,
or operate as a waiver of any right, power or remedy of Agent or any Lender under, the Credit Agreement or any of the other Loan Documents. 
  
 B. Fees and Expenses. Borrower acknowledges that all costs, fees and expenses as described in subsection 10.2 of the Credit Agreement incurred by
the Administrative Agent and its counsel with respect to this Amendment and the documents and transactions contemplated hereby shall be for the account of Borrower. 
  
 C. Headings. Section and subsection headings in this Amendment are included herein for convenience of reference only
and shall not constitute a part of this Amendment for any other purpose or be given any substantive effect. 
  

 19 

 D. Applicable Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF
LAWS PRINCIPLES. 
  
 E. Counterparts; Effectiveness.
This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but
one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. This Amendment (other than the provisions
of Sections 1 and 2 hereof, the effectiveness of which is governed by Section 3 hereof) shall become effective upon the execution of a counterpart hereof by Borrower, each Credit Support Party and Administrative Agent and the execution of a Lender
Consent by consenting Lenders and receipt by Borrower and Administrative Agent of written or telephonic notification of such execution and authorization of delivery thereof. 
  
 [Remainder of page intentionally left blank] 
  

 20 

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

			
	CENTRAL GARDEN & PET COMPANY
		
	 By:
	 	 /s/ Stuart W. Booth

	 Name:
	 	 Stuart W. Booth

	 Title:
	 	 Vice President & Chief Financial Officer

	
	ALL-GLASS AQUARIUM CO., INC.
	CGP ACQUISITION CORP. I, LLC
	FOUR PAWS PRODUCTS LTD.
	GRANT LABORATORIES, INC.
	GRO TEC, INC.
	KAYTEE PRODUCTS, INC.
	MATTHEWS REDWOOD & NURSERY SUPPLY, INC.
	NEW ENGLAND POTTERY, LLC
	NORCAL POTTERY PRODUCTS, INC.
	OCEANIC SYSTEMS, INC.
	PENNINGTON SEED INC. OF NEBRASKA
	PENNINGTON SEED, INC.
	PHAETON CORPORATION
	SEEDS WEST, INC.
	T.F.H. PUBLICATIONS, INC.
	WELLMARK INTERNATIONAL
	 (for purposes of Section 5 only)

	 as a Credit Support Party

		
	 By:
	 	 /s/ Stuart W. Booth

	 Name:
	 	 Stuart W. Booth

	 Title:
	 	 Vice President & Chief Financial Officer

  

 S-1 

			
	CANADIAN IMPERIAL BANK OF COMMERCE,
	 as Administrative Agent

		
	 By:
	 	 /s/ Dean J. Decker

	 	 	 Dean J. Decker

	 	 	 Managing Director

	 	 	 CIBC World Markets Corp., AS AGENT

  

 S-2 

 EXHIBIT A 
 to Third Amendment 
 to Credit Agreement 
  
 CONSENT OF LENDER 
  
 Reference is hereby made to the Third Amendment to Credit Agreement (the “Amendment”) dated as of
            , 2004 by and between Central Garden & Pet Company, a Delaware corporation (“Borrower”), and Canadian Imperial Bank of Commerce, as administrative
agent for the Lenders (“Administrative Agent”), which is made with reference to that certain Credit Agreement dated as of May 14, 2003, as amended by the First Amendment to Credit Agreement dated as of October 27, 2003 and the
Second Amendment to Credit Agreement dated as of February 12, 2004 (the “Credit Agreement”), by and among Borrower, the financial institutions listed therein as Lenders, the Co-Syndication Agents listed therein, and the
Administrative Agent. 
  
 The undersigned Lender hereby consents
to the execution and delivery of the Amendment by Administrative Agent on its behalf, substantially in the form of the draft presented to the undersigned Lender on             ,
2004. 
  
 Dated:
            , 2004 
  

			
	

	[Name of Institution]
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 S-3 

 ANNEX A-1 
  

EXHIBIT I 
  
 [FORM OF NOTICE OF BORROWING] 
  
 NOTICE OF BORROWING 
  
 Pursuant to that certain Credit Agreement dated as of May 14, 2003, as amended, restated, supplemented or otherwise modified to the date hereof (said Credit Agreement, as so amended, restated, supplemented or otherwise modified, being the
“Credit Agreement”, the terms defined therein and not otherwise defined herein being used herein as therein defined), by and among Central Garden & Pet Company, a Delaware corporation (the “Borrower”), the
financial institutions party thereto as lenders (collectively, “Lenders”), the financial institutions party thereto as agents and Canadian Imperial Bank of Commerce, as agent for Lenders (in such capacity, the
“Administrative Agent”), this represents Borrower’s request to borrow as follows: 
  

							
	 1.
	  	Date of borrowing:                                  
          ,                 
		
	 2.
	  	 Amount of borrowing:                                 
       

		
	 3.
	  	 Currency:                                     
                       

			
	 4.
	  	 Type of Loans:
	  	Revolving Loans
				
	 5.
	  	 Interest rate option:
	  	 ̈ a.	  	Base Rate Loan(s) (U.S. Dollars only)
				
	 	  	 	  	 ̈ b.	  	LIBOR Loans with an initial Interest Period of                     
month(s)

  
 The proceeds of such Loans are to be
deposited in Borrower’s account at [            ] ABA Number:            , Account
Number:            , Account Name:            , and
Reference:            . 
  
 The undersigned officer, on behalf of Borrower, and Borrower certify that: 
  
 (i) The representations and warranties contained in the Credit Agreement and the other Loan Documents are true, correct and complete in all material
respects on and as of the date hereof to the same extent as though made on and as of the date hereof, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties
were true, correct and complete in all material respects on and as of such earlier date; provided, that where a representation and warranty is already qualified as to materiality, such materiality qualifier shall be disregarded for purposes
of this condition; 
  
 (ii) No event has occurred and is
continuing or would result from the consummation of the borrowing contemplated hereby and the application of proceeds hereof that would constitute an Event of Default or a Potential Event of Default; 
  

 A-1 

 (iii) Each Loan Party has performed in all material respects all agreements and satisfied all conditions
which the Credit Agreement provides shall be performed or satisfied by it on or before the date hereof; 
  
 (iv) The making of the Loans requested on the date hereof shall not violate any law including Regulation T, Regulation U or Regulation X of the Board of
Governors of the Federal Reserve System; and 
  
 (v) The
undersigned has read this Notice of Borrowing and any definitions or other provisions contained in the Credit Agreement relating thereto, and in the opinion of the undersigned, has made or caused to be made such examination or investigation as is
reasonably necessary to enable the undersigned to express an informed opinion as to the compliance with all conditions precedent to the making of any Loans requested hereunder. 
  

					
	 DATED:
                    
	 	CENTRAL GARDEN & PET COMPANY
			
	 	 	 By:
	 	  

	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

 A-2 

 ANNEX A-2 
  

EXHIBIT II 
  
 [FORM OF NOTICE OF CONVERSION/CONTINUATION] 
  
 NOTICE OF CONVERSION/CONTINUATION 
  
 Pursuant to that certain Credit Agreement dated as of May 14, 2003, as amended, restated, supplemented or otherwise modified to the date hereof (said Credit Agreement, as so amended, restated, supplemented or
otherwise modified, being the “Credit Agreement”, the terms defined therein and not otherwise defined herein being used herein as therein defined), by and among Central Garden & Pet Company, a Delaware corporation (the
“Borrower”), the financial institutions party thereto as lenders (collectively, “Lenders”), the financial institutions party thereto as agents and Canadian Imperial Bank of Commerce, as agent for Lenders (in such
capacity, the “Administrative Agent”), this represents Borrower’s request to convert or continue Loans as follows: 
  

											
	 1.
	  	 Date of
conversion/continuation:                                    
                ,                 

			
	 2.
	  	 Amount of Loans being converted/continued:
                                        
        
	  	 
					
	 3.
	  	 Currency:                                     
               
	  	 	  	 	  	 
				
	 3.
	  	 Type of Loans being             ̈a.    Tranche B Term Loans
	  	 	  	 
				
	 	  	 converted/continued:            ̈b.    Revolving Loans
	  	 	  	 
			
	 4.
	  	 Nature of conversion/continuation:
	  	 
			
	 	  	         ̈  a.    Conversion of Base Rate Loans to LIBOR Loans (U.S. Dollars only)	  	 
			
	 	  	         ̈  b.    Conversion of LIBOR Loans to Base Rate Loans (U.S. Dollars only)	  	 
			
	 	  	         ̈  c.    Continuation of LIBOR Loans as such	  	 
		
	 5.
	  	If Loans are being continued as or converted to LIBOR Loans, the duration of the new Interest Period that commences on the conversion/continuation
date:                 month(s)

  
 In the case of a
conversion to or continuation of LIBOR Loans, the undersigned officer, to the best of his or her knowledge, and Borrower certify that no Event of Default or Potential Event of Default has occurred and is continuing under the Credit Agreement.

  

					
	 DATED:                        
	 	CENTRAL GARDEN & PET COMPANY
			
	 	 	By:	 	  

	 	 	Name:	 	 
	 	 	Title:	 	 

  

 A-3 

 ANNEX A-3 
  

EXHIBIT VI 
  
 [FORM OF COMPLIANCE CERTIFICATE] 
  
 COMPLIANCE CERTIFICATE 
  
 EACH OF THE UNDERSIGNED HEREBY CERTIFY THAT: 
  
 (1) I am the duly elected Vice President, Finance and Chief Financial Officer of Central Garden & Pet Company, a Delaware corporation (the “Borrower”); 
  
 (2) I have reviewed the terms of that certain Credit Agreement dated as of
May 14, 2003 as amended, restated, supplemented or otherwise modified to the date hereof (said Credit Agreement, as so amended, restated, supplemented or otherwise modified, being the “Credit Agreement”, the terms defined therein
and not otherwise defined in this Certificate (including Attachment No. 1 annexed hereto and made a part hereof) being used in this Certificate as therein defined), by and among Borrower, the financial institutions party thereto as lenders, the
financial institutions party thereto as agents and Canadian Imperial Bank of Commerce, as Administrative Agent, and I have made, or have caused to be made under my supervision, a review in reasonable detail of the transactions and condition of
Borrower and its Subsidiaries during the accounting period covered by the attached financial statements; and 
  
 (3) The examination described in paragraph (2) above did not disclose, and I have no knowledge of, the existence of any condition or event which
constitutes an Event of Default or Potential Event of Default during or at the end of the accounting period covered by the attached financial statements or as of the date of this Certificate[, except as set forth below]. 
  
 [Set forth [below] [in a separate attachment to this Certificate] are all
exceptions to paragraph (3) above listing, in detail, the nature of the condition or event, the period during which it has existed and the action which Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

  
                                       
                                        
                                        
                                       
           ] 
  

 A-4 

 The foregoing certifications, together with the computations set forth in Attachment No. 1 annexed hereto
and made a part hereof and the financial statements delivered with this Certificate in support hereof, are made and delivered this      day of
            , 200_ pursuant to Subsection 6.1(iv) of the Credit Agreement. 
  

			
	 CENTRAL GARDEN & PET COMPANY

		
	 By:
	 	 /s/ Stuart W. Booth

	 Name:
	 	 Stuart W. Booth

	 Title:
	 	Vice President, Finance and Chief Financial Officer

  

 A-5 

 ATTACHMENT NO. 1 
  

TO COMPLIANCE CERTIFICATE 
  
 This Attachment No. 1 is attached to and made a part of a Compliance Certificate dated as of
                    , 200   and pertains to the period ending
                    , 200  . Subsection references herein relate to Subsections of the Credit Agreement. 

 

	A.	Indebtedness 

  

						
	 1.
	  	Aggregate principal amount of additional Subordinated Indebtedness permitted under Subsection 7.1(vii):	  	$	                    
			
	 2.
	  	Maximum permitted under Subsection 7.1(vii):	  	$	150,000,000
			
	 3.
	  	Aggregate principal amount of other Indebtedness outstanding pursuant to Subsection 7.4(vii):	  	$	                    
			
	 4.
	  	Aggregate amount of other Contingent Obligations outstanding pursuant to Subsection 7.4(vii):	  	$	                    
			
	 5.
	  	Aggregate principal amount of other Indebtedness and other Contingent Obligations outstanding under Subsection 7.4(vii) (same as D.1):	  	$	                    
			
	 6.
	  	Maximum permitted under Subsection 7.1(viii):	  	$	20,000,000
			
	 7.
	  	Aggregate principal amount of Indebtedness of Foreign Loan Parties to Borrower or Subsidiary Guarantors:	  	$	                    
			
	 8.
	  	Maximum permitted under Subsection 7.1(ix):	  	$	                    

  

	B.	Liens 

  

						
	 1.
	  	Aggregate amount of Indebtedness secured by Liens permitted under Subsection 7.2(iv):	  	$	                    
			
	 2.
	  	Maximum aggregate amount of Indebtedness secured by Liens permitted under Subsection 7.2(iv):	  	$	20,000,000

  

 A-6 

	C.	Investments; Acquisitions 

  

						
	 1.
	  	Aggregate purchase price of acquisitions by Borrower and its Subsidiaries:	  	$	                    
			
	 2.
	  	Maximum permitted under Subsections 7.3(v) and 7.1(vi):	  	$	75,000,000
			
	 3.
	  	Aggregate principal amount of other Investments (including Capital Stock) permitted under Subsection 7.3(vi) :	  	$	                    
			
	 4.
	  	Maximum permitted under Subsection 7.3(vi):	  	$	50,000,000
			
	 5.
	  	Aggregate amount of repurchases of Borrower’s Capital Stock:	  	$	                    
			
	 6.
	  	Maximum permitted under Subsection 7.3(vi):	  	$	10,000,000

  

	D.	Contingent Obligations 

  

						
	 1.
	  	Total Contingent Obligations, and Indebtedness outstanding under Subsection 7.4(vii) (same as A.5):	  	$	                    
			
	 2.
	  	Maximum permitted under Subsection 7.4(vii):	  	$	20,000,000

  

	E.	Minimum Interest Coverage Ratio (for the four-Fiscal Quarter period ending             ,
        ) 

  

						
	 1.
	  	Consolidated Net Income:	  	$	                    
			
	 2.
	  	Consolidated Interest Expense:	  	$	                    
			
	 3.
	  	Provisions for taxes based on income:	  	$	                    
			
	 4.
	  	Total depreciation expense:	  	$	                    
			
	 5.
	  	Total amortization expense:	  	$	                    
			
	 6.
	  	Other non-recurring and non-cash items reducing Consolidated Net Income but not requiring the expenditure of cash1:	  	$	                    

  

 A-7 

						
	 7.
	  	Interest Income:	  	 	 
			
	 8.
	  	Other non-recurring non-cash items increasing Consolidated Net Income but not constituting the receipt of cash:	  	$	                    
			
	 9.
	  	Consolidated EBITDA (1+2+3+4+5+6-7-8):	  	$	                    
			
	 10.
	  	Interest Coverage Ratio (E.9):(E.2):	  	 	            :1.00
			
	 11.
	  	Minimum ratio required under Subsection 7.6A:	  	 	            :1.00

  

	F.	Maximum Total Leverage Ratio (as of             ,         )

  

						
	 1.
	  	Consolidated Total Debt:	  	$	                    
			
	 2.
	  	Consolidated EBITDA (E.9 above plus/minus any adjustment for any Asset Sales or other acquisitions or dispositions of assets):	  	$	                    
			
	 3.
	  	Consolidated Total Leverage Ratio (F.1):(F.2):	  	 	            :1.00
			
	 4.
	  	Maximum ratio permitted under Subsection 7.6B:	  	 	            :1.00

  

	G.	Maximum Senior Leverage Ratio (as of             ,
        ) 

  

						
	 1.
	  	Consolidated Total Debt (F.1 above):	  	$	                    
			
	 2.
	  	Aggregate principal amount of all unsecured Subordinated Indebtedness of Borrower and its Subsidiaries, determined on a consolidated basis:	  	$	                    

	1	This amount includes such acquisition and transaction costs as may be approved by Administrative Agent in its sole but reasonable discretion. For Fiscal Year 2003,
not more than $5,000,000 in the aggregate, and for each Fiscal Year thereafter, not more than $2,000,000 in the aggregate of all non-recurring and non-cash items (other than those described in the preceding sentence) shall be included in line E6.

  

 A-8 

						
	 3.
	  	Consolidated Senior Debt (G.1 – G.2):	  	$	                    
			
	 4.
	  	Consolidated EBITDA (E.9 above plus/minus any adjustment for any Asset Sales or other acquisitions or dispositions of assets):	  	$	                    
			
	 5.
	  	Consolidated Senior Leverage Ratio (G.3):(G.4):	  	 	            :1.00
			
	 6.
	  	Maximum ratio permitted under Subsection 7.6C:	  	 	            :1.00

  

	H.	Minimum Consolidated Tangible Net Worth (as of             ,
        ) 

  

						
	 1.
	  	85% of Consolidated Tangible Net Worth as of the Closing Date:	  	$	                    
			
	 2.
	  	50% of the positive Consolidated Net Income for each Fiscal Quarter ending after the Closing Date:	  	$	                    
			
	 3.
	  	100% of the Net Securities Proceeds of the issuance of Capital Stock:	  	$	                    
			
	 4.
	  	Minimum required under Subsection 7.6D (H.1 + H.2 + H.3):	  	$	                    
			
	 5.
	  	Consolidated Tangible Net Worth as of the last day of the most recently ended Fiscal Quarter (amount may not be less than H.4 above):	  	$	                    

  

	I.	Asset Sales 

  

						
	 1.
	  	Aggregate fair market value of assets sold in any one or more Asset Sales after the Effective Date in one or more transactions permitted under Subsection 7.7(v):	  	$	                    
			
	 2.
	  	Maximum permitted under Subsection 7.7(v):	  	$	25,000,000

  

 A-9 

	J.	Consolidated Capital Expenditures 

  

							
	 1.
	  	Consolidated Capital Expenditures for Fiscal Year-to-date2:	  	$	                    	 
			
	 2.
	  	Maximum amount of Consolidated Capital Expenditures permitted under Subsection 7.8 for Fiscal Year (as increased pursuant to Subsection 7.8 in an amount not to exceed $5,000,000):	  	$	[20,000,000	]3

  

	K.	Lease Payments 

  

						
	 1.
	  	Maximum rental payments paid or payable during current Fiscal Year:	  	$	                    
			
	 2.
	  	Maximum permitted under Subsection 7.12:	  	$	30,000,000

 2 This amount shall exclude for Fiscal Year 2003, any expansion capital expenditures related to Borrower’s Kaytee product line. 
 3 This amount as increased pursuant
to Subsection 7.8 in an amount not to exceed $5,000,000. 
  

 A-10 

 ANNEX B-1 
  

SCHEDULE 1.1 
  
 MANDATORY COST RATE 
  

	1.	The Mandatory Cost Rate is an addition to the interest rate to compensate Lenders for the cost of compliance with (a) the requirements of the Bank of England and/or the Financial
Services Authority (or, in either case, any other authority which replaces all or any of its functions) or (b) the requirements of the European Central Bank. 

  

	2.	On the first day of each Interest Period (or as soon as possible thereafter) the Administrative Agent shall calculate, as a percentage rate, a rate (the “Additional Cost
Rate”) for each Lender, in accordance with the paragraphs set out below. The Mandatory Cost Rate will be calculated by the Administrative Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in proportion to the
percentage participation of each Lender in the relevant Loan) and will be expressed as a percentage rate per annum. 

  

	3.	The Additional Cost Rate for any Lender lending from an office in a Participating Member State will be the percentage notified by that Lender to the Administrative Agent. This
percentage will be certified by that Lender in its notice to the Administrative Agent to be its reasonable determination of the cost (expressed as a percentage of that Lender’s participation in all Loans made from that lending office) of
complying with the minimum reserve requirements of the European Central Bank in respect of loans made from that lending office. 

  

	4.	The Additional Cost Rate for any Lender lending from an office in the United Kingdom will be calculated by the Administrative Agent as follows: 

  

	 	(a)	in relation to a sterling Loan: 

  

			
	 AB + C (B – D) + E X
0.01

	  	per cent. per annum
	 100 – (A+C)
	  	 

  

	 	(b)	in relation to a Loan in any currency other than sterling: 

  

			
	 E X 0.01

	  	per cent. per annum.
	 300
	  	 

  
 Where: 
  

	 	A	is the percentage of Eligible Liabilities (assuming these to be in excess of any stated minimum) which that Lender is from time to time required to maintain as an interest free cash
ratio deposit with the Bank of England to comply with cash ratio requirements. 

  

 B-1 

	 	B	is the rate determined in accordance with the first sentence of the definition of “Adjusted LIBOR” applicable to such Loan. 

  

	 	C	is the percentage (if any) of Eligible Liabilities which that Lender is required from time to time to maintain as interest bearing Special Deposits with the Bank of England.

  

	 	D	is the percentage rate per annum payable by the Bank of England to the Administrative Agent on interest bearing Special Deposits. 

  

	 	E	is designed to compensate Lenders for amounts payable under the Fees Rules and is calculated by the Administrative Agent as being the average of the most recent rates of charge
supplied by the applicable Lenders to the Administrative Agent pursuant to paragraph 7 below and expressed in pounds per £1,000,000. 

  

	5.	For the purposes of this Schedule: 

  

	 	(a)	“Eligible Liabilities” and “Special Deposits” have the meanings given to them from time to time under or pursuant to the Bank of England Act 1998
or (as may be appropriate) by the Bank of England; 

  

	 	(b)	“Fees Rules” means the rules on periodic fees contained in the FSA Supervision Manual or such other law or regulation as may be in force from time to time in
respect of the payment of fees for the acceptance of deposits; 

  

	 	(c)	“Fee Tariffs” means the fee tariffs specified in the Fees Rules under the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required
pursuant to the Fees Rules but taking into account any applicable discount rate); and 

  

	 	(d)	“Tariff Base” has the meaning given to it in, and will be calculated in accordance with, the Fees Rules. 

  

	6.	In application of the above formulae, A, B, C and D will be included in the formulae as percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05). A
negative result obtained by subtracting D from B shall be taken as zero. The resulting figures shall be rounded to four decimal places. 

  

	7.	If requested by the Administrative Agent, each Lender selected by Administrative Agent shall, as soon as practicable after publication by the Financial Services Authority, supply

  

 B-2 

 to the Administrative Agent, the rate of charge payable by that Lender to the Financial Services
Authority pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services Authority (calculated for this purpose by that Lender as being the average of the Fee Tariffs applicable to that Lender for that financial year)
and expressed in pounds per £1,000,000 of the Tariff Base of that Lender. 
  

	8.	Each Lender shall supply any information required by the Administrative Agent for the purpose of calculating its Additional Cost Rate. In particular, but without limitation, each
Lender shall supply the following information on or prior to the date on which it becomes a Lender: 

  

	 	(a)	the jurisdiction of its lending office; and 

  

	 	(b)	any other information that the Administrative Agent may reasonably require for such purpose. 

  
 Each Lender shall promptly notify the Administrative Agent of any change to the information provided by it pursuant to this
paragraph. 
  

	9.	The percentages of each Lender for the purpose of A and C above and the rates of charge of each Lender for the purpose of E above shall be determined by the Administrative Agent
based upon the information supplied to it pursuant to paragraphs 7 and 8 above and on the assumption that, unless a Lender notifies the Administrative Agent to the contrary, each Lender’s obligations in relation to cash ratio deposits and
Special Deposits are the same as those of a typical bank from its jurisdiction of incorporation with a lending office in the same jurisdiction as its lending office. 

  

	10.	The Administrative Agent shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates any Lender and shall be
entitled to assume that the information provided by any Lender pursuant to paragraphs 3, 7 and 8 above is true and correct in all respects. 

  

	11.	The Administrative Agent shall distribute the additional amounts received as a result of the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender
based on the information provided by each Lender pursuant to paragraphs 3, 7 and 8 above. 

  

	12.	Any determination by the Administrative Agent pursuant to this Schedule in relation to a formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender
shall, in the absence of manifest error, be conclusive and binding on all Parties. 

  

 B-3 

	13.	The Administrative Agent may from time to time, after consultation with Borrower and the Lenders, determine and notify to all Parties any amendments which are required to be made to
this Schedule in order to comply with any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any other authority which
replaces all or any of its functions) and any such determination shall, in the absence of manifest error, be conclusive and binding on all Parties. 

  

 B-4Compensation Agreement

 EXHIBIT 10.9(z) 
  
 PEDIATRIC SERVICES OF AMERICA, INC. 
  
 NON-QUALIFIED DEFERRED COMPENSATION PLAN 
  
 (As Amended and Restated Effective January 1, 2004) 

 PEDIATRIC SERVICES OF AMERICA, INC. 
 NON-QUALIFIED DEFERRED COMPENSATION PLAN 
 (As Amended and Restated Effective
January 1, 2004) 
  
 THIS AMENDED AND RESTATED NON-QUALIFIED
DEFERRED COMPENSATION PLAN, adopted by PEDIATRIC SERVICES OF AMERICA, INC., a Georgia corporation (the “Company”), effective as of January 1, 2004 (the “Effective Date”); 
  
 W I T N E S S E
T H: 
  
 WHEREAS, the Company established this Plan
effective January 1, 2000, to provide key employees a non-qualified deferred compensation program and has subsequently amended the Plan; 
  
 WHEREAS, this Plan is intended to provide benefits to a select group of management or highly compensated personnel in order to attract and retain the
highest quality executives and, therefore, is not intended to be a qualified plan within the meaning of sections 401(a) and 501(a) of the Internal Revenue Code of 1986, as amended (the “Code”); 
  
 WHEREAS, this Plan is intended to be an unfunded plan for purposes of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”), although Company contributions and voluntary compensation deferrals shall be held in a “rabbi trust,” viz. an irrevocable grantor trust, the assets of
which can be used only to pay benefits under this Plan or, in the case of the Company’s insolvency, to pay claims of Company creditors; and 
  
 WHEREAS, the Company now desires to amend and restate the Plan to incorporate the previously-adopted amendments and to make certain other modifications;

  
 NOW, THEREFORE, the Company hereby adopts this amendment and
restatement of the PEDIATRIC SERVICES OF AMERICA, INC. NON-QUALIFIED DEFERRED COMPENSATION PLAN on the following terms and conditions: 
  
 1. Definitions. Whenever used in this Plan, the following words and phrases shall have the meaning set forth below, unless a different
meaning is expressly provided or plainly required by the context in which the words or phrases are used 
  
 1.1 Active Participant means a Participant who has a currently-effective Written Election to defer a portion of his Plan Year Compensation in
accordance with Section 3.1. 
  
 1.2. Beneficiary means a
person designated by a Participant pursuant to Section 9.1 to receive Plan benefits in the event of the Participant’s death. 
  
 1.3. Board means the Board of Directors of the Company and its successors. 

 1.4. Change in Control means: 
  
 (A) a change in ownership, holding or power to vote more than fifty percent (50%) of the voting stock of the Company;

  
 (B) the shareholders of the Company approve any plan or
proposal for the liquidation or dissolution of the Company, other than in connection with a transfer of substantially all of the assets of the Company to parties in the “controlled group of corporations” (as defined in section 1563 of the
Internal Revenue Code of 1986) in which the Company is a member; 
  
 (C) substantially all of the assets of the Company are sold or otherwise transferred to parties that are not within the “controlled group of corporations” (as defined in section 1563 of the Internal Revenue Code of 1986) in which
the Company is a member; 
  
 (D) the Company voluntarily files a
petition for bankruptcy under federal bankruptcy law, or an involuntary bankruptcy petition is filed against the Company under federal bankruptcy law, which is not dismissed within 120 days of the filing; 
  
 (E) the Company makes a general assignment for the benefit of creditors;

  
 (F) the Company seeks or consents to the appointment of a
trustee, receiver, liquidator or similar person; 
  
 (G) a
merger, consolidation or reorganization of the Company with or involving any other corporation, other than a merger, consolidation or reorganization that would result in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of the Company (or such surviving
entity) outstanding immediately after such merger, consolidation, or reorganization; or 
  
 (H) during any period of two consecutive years, individuals who at the beginning of such period constitute the Board cease for any reason to constitute at least a majority thereof; unless the election or the
nomination for election by the Company’s shareholders of each new director was approved by a vote of at least three quarters of the directors still in office of the Company who were directors at the beginning of the period. 
  
 1.5. Company means Pediatric Services of America, Inc., a Georgia
corporation. 
  
 1.6. Company Contribution Account means an
account under the Plan to which amounts which the Company contributes under Section 3.2 with respect to a Participant, together with adjustments pursuant to Section 3.5(C), are credited in accordance with Section 3.5. 
  
 1.7 Crediting Date means the date specified by the Committee for
crediting the amount of any Participant contributions to the Participant Deferral Account of a Participant. 
  

 2 

 1.8. Designated Participant means a Participant whom the Board has authorized to defer a portion
of his/her cash discretionary bonus compensation pursuant to this Plan. 
  
 1.9. Disability means (A) “disability” as defined in any group long-term disability policy or program sponsored by the Company and in effect at the time a Participant who has suffered a physical or mental impairment makes
application under this Plan for a disability distribution, or (B) if no such policy or program is in force at such time, “disability” as defined in section 1382c(a)(3) of volume 42 of the United States Code and regulations promulgated
thereunder, provided, however, that the disability (whether under the definition in (A) or in (B)) must be of a duration of at least six (6) consecutive months from the date the Participant suffers the disability, notwithstanding any different
requirements of duration under either definition in the actual policy or program or in the United States Code, respectively. A Participant who has suffered a Disability shall be referred to as “Disabled” within the meaning of this Section
1.9. Notwithstanding anything in this Section 1.9 to the contrary, a Participant shall also be deemed to be Disabled under this Plan without regard to the six month waiting period described in this section if the Plan Committee receives from the
physician treating the Participant for the disabling condition written evidence satisfactory to the Plan Committee (in its sole discretion) to the effect that the Participant has incurred a disabling condition described in clauses (A) or (B) of this
section and a certification that, in his/her professional opinion, such condition will continue for a duration of at least six months. For purposes of this section, the term “physician” means a doctor of medicine who is licensed and
authorized to treat the type of condition which the Participant claims is disabling. 
  
 1.10. Entry Date means the date a Participant’s participation in the Plan commences, as specified in Section 2.2. 
  
 1.11. Key Employee means an employee of the Company, selected by the Board, who is a member of a select group of management or highly compensated
employees within the meaning of §2520.104-23 of the Department of Labor ERISA Regulations. 
  
 1.12. Life Insurance Contract means a life insurance policy described in Section 3.8. 
  
 1.13. Participant means (A) a Key Employee designated by the Board, in writing, to participate in the benefits under
the Plan who timely files a written election pursuant to Section 2.4, below, and (B) a former Employee who, at the time of his termination from employment, retirement, death, or occurrence of Disability, retains, or whose Beneficiary retains,
benefits earned under the Plan in accordance with its terms. 
  
 1.14. Participant Deferral Account means an account under the Plan to which amounts which a Participant elects to defer under Section 3.1, together with adjustments pursuant to Section 3.5(C), are credited in accordance with Section
3.5. 
  
 1.15. Plan means the Pediatric Services of
America, Inc. Non-Qualified Deferred Compensation Plan, as amended from time to time, and the Trust Agreement established in connection herewith. 
  

 3 

 1.16. Plan Committee means the body of individuals appointed by the Board to handle the day-to-day
responsibilities of administering the Plan. The Committee shall consist of at least three individuals who shall be appointed by the Board to serve at the pleasure of the Board. Unless the Board specifies otherwise, the Committee members shall be the
Company’s Chief Executive Officer; Chief Financial Officer; and Vice President, Human Resources, and each member shall be removed from the Committee immediately upon the termination of his service in such capacity and assumed by any successor
to the designated office. Any member of the Committee may resign, and his successor, if any, shall be appointed by the Board. The Committee shall be responsible for the general administration and interpretation of the Plan and for carrying out its
provisions, except to the extent all or any of such obligations are specifically imposed on the Board. Any Committee member who is an employee of the Company shall be deemed to have been removed by the Board immediately as of his termination of
employment with the Company, without the necessity of further action by the Board. 
  
 1.17. Plan Year means the twelve (12) consecutive month period beginning each January 1 and ending each December 31. 
  
 1.18. Plan Year Compensation means for purposes of the elections under Section 2.4 of the Plan, the annual base salary paid to a Participant by the
Company during any Plan Year, or portion thereof during which he is a Participant in this Plan, as reflected on the Participant’s form W-2. In addition, for Designated Participants (as defined in Section 1.8), Plan Year Compensation shall
include cash discretionary bonus compensation, if any, in addition to base salary and subject to the provisions of Section 3.1(C); provided that a Participant shall be a Designated Participant for purposes of making deferrals out of bonus
compensation only for such Plan Year or Plan Years as the Board may determine in its sole discretion. 
  
 1.19. Retirement Benefit means, with respect to a particular Written Election, the unpaid balance of a Participant’s Participant Deferral
Account and his Company Contribution Account attributable to such Written Election, which equals the total of (i) all contributions made by the Participant and allocated to his Participant Deferral Account pursuant to such Written Election,
(ii) all contributions made by the Company and allocated to his Company Contribution Account with respect to contributions described in clause (i) of this section and (iii) all earnings deemed credited to his Participant Deferral Account and his
Company Contribution Account from time to time in accordance with Section 3.5(C) with respect to amounts described in clauses (i) and (ii) of this section, reduced by (iv) losses and expenses deemed charged against such accounts from time to
time in accordance with Section 3.5(C) with respect to amounts described in clauses (i) and (ii) of this section and (v) any distributions already paid from amounts described in clauses (i) through (iv) of this section. 
  
 1.20. Retirement means termination of employment with the Company on
or after attainment of age 65. 
  
 1.21. Trust means the
grantor (or “rabbi”) trust established by the Company in connection with this Plan. 
  
 1.22. Trust Agreement means the agreement between the Trustee and the Company establishing the Trust. 
  

 4 

 1.23. Trustee means Banker’s Life, or any successor trustee named to succeed such Trustee
under the terms of the Trust Agreement established in connection with this Plan. 
  
 1.24. Written Election means the written deferral election document described in Section 2.4. 
  
 2. Participation. 
  
 2.1. Eligibility. A Key Employee of the Company is eligible to participate in this Plan on the Entry Date first following the date as of which each
of the following events has occurred: 
  
 (A) the Board has
designated him in writing as a Participant in the Plan; 
  
 (B)
the Key Employee has made a Written Election in accordance with the terms of Section 2.4 below; and 
  
 (C) the Key Employee has completed the lesser of either: (i) twelve months of continuous service, or (ii) another number of months of continuous service
determined and approved by the President of the Company. 
  
 2.2.
Entry Date. Any Key Employee who is already participating in this Plan or who has met the Eligibility requirements specified in Section 2.1 as of the Effective Date shall become a Participant in the Plan as of the Effective Date. Any Key
Employee of the Company who meets the Eligibility requirements specified in Section 2.1 after the Effective Date of this Plan shall become a Participant on the first day of the payroll period immediately following the date on which he has met the
Eligibility requirements. 
  
 2.3. Designation. The Board
shall designate from time to time, in writing, the name of each Key Employee who shall be entitled to participate as an Active Participant in the Plan and the tier (for purposes of Section 3.1) to which each such Key Employee shall be assigned. The
Board’s designation shall also include whether the Key Employee will be a Designated Participant. Such designations shall be initially effective as specified by the Board and shall continue as if reaffirmed each Plan Year without further action
of the Board until the earliest of the Participant’s termination of employment from the Company for any reason, the Board’s written rescission of such designation (effective as determined by the Board but in no event prior to the date of
the Board’s action) or the termination of this Plan. Such actions by the Board shall generally occur in the Board’s meeting during the fourth quarter (July-Sept) of the Company’s fiscal year (October 1 through September 30) such that
each designated Key Employee who remains an Active Participant shall have sufficient time to make his Written Election as required by Section 2.4 below. 
  
 2.4. Written Election by Participant. Each Key Employee designated by the Board as a Participant for a Plan Year shall submit to the Plan Committee
a Written Election within 30 days before or after the first day of the Plan Year for which he has been designated as a Participant. If a Key Employee will become a Participant after the first day of Plan Year, he shall have 30 days before or after
his Entry Date to submit the Written Election. If a Participant fails to submit a Written Election within the period specified in this Section 2.4, he may not 
  

 5 

 participate in the Plan until the first Entry Date of the next succeeding Plan Year (provided that he continues to be
eligible under Section 2.1). 
  
 (A) Such Written Election shall
be made on the form or in the manner specified by the Plan Committee for this purpose and shall set forth: 
  

	 	(1)	the percentage of Plan Year Compensation or the dollar amount the Key Employee has determined to defer under the Plan for the Plan Year, pursuant to Section 3.1 below;

  

	 	(2)	the investment vehicles into which the Key Employee directs that his Participant Deferral Account and his Company Contribution Account be invested and the percentage of his
Participant Deferral Account and his Company Contribution Account allocated to each elected investment vehicle; 

  

	 	(3)	the date on which his benefit is to be distributed (or a distribution will commence) which is the earlier of a specific date or when he terminates employment with the Company due to
termination of service, retirement, Disability or death; 

  

	 	(4)	the form in which his benefit with respect to the Written Election in question is to be distributed upon termination of service or retirement, which form must be available for
selection on the Written Election form provided by Committee. 

  
 (B) The Written Election shall become effective with respect to such Participant as of the first day of the Plan Year that occurs after the date such Written Election is received by the Committee; provided, that a
Participant who first becomes a Participant in the Plan during a Plan Year may enter into a Written Election to be effective as of the first payroll period next following the date he enters the Plan. Unless earlier modified by the Participant under
the terms of this Plan, a Participant’s election shall continue in effect until the Participant’s employment with the Company is terminated or, if earlier, until the Participant ceases to be an Active Participant under the Plan.
Notwithstanding the foregoing, the portion of a Written Election directing the investment of the Participant’s Participant Deferral Account and Company Contribution Account shall remain in effect until modified by the Participant,
notwithstanding the Participant’s termination of employment or cessation of active participation in the Plan. 
  
 (C) A Participant may change a submitted Written Election in accordance with the following: 
  

	 	(1)	A Participant may change the investment vehicle(s) and the percentage allocation of his Participant Deferral Account and his Company Contribution Account allocated to each
investment vehicle in the manner and frequency and as of the dates specified by the Committee, and only in such funds as designated by the Plan Committee and as included in the Plan. Such a change may be made by the Beneficiary of a deceased

  

 6 

	 	  	Participant to the extent that the Beneficiary is entitled to a benefit under this Plan. 

  

	 	(2)	A Participant may change the date or form of distribution by submitting a new Written Election to the Plan Committee, provided that such change is submitted at least ninety (90)
days prior to the original date of distribution, the new date of distribution is subsequent to the original date of distribution, and only one such change may be made after the original election. Notwithstanding anything contained herein to the
contrary, the date and form of distribution selected on the Written Election made for the Plan Year beginning January 1, 2004, shall supercede any contrary election for any previous Plan Year. 

  

	 	(3)	The portion of Plan Year Compensation deferred pursuant to Section 3.1 and specified in the Written Election for a given Plan Year (or part of a Plan Year) may not be changed.

  
 2.5. Duration of Participation/Designated
Participation. Any Key Employee who has become a Participant at any time shall remain a Participant, even though he is no longer an Active Participant, until his entire benefit under the terms of the Plan has been paid to him (or to his
Beneficiary in the event of his death), at which time he ceases to be a Participant. Once identified by the Board as a Designated Participant, a Participant shall remain in that status for purposes of this Plan until the earlier of (i) the
termination of the Participant’s employment with the Company for any reason, (ii) the Board’s revocation of the Participant’s status as such or as a Designated Participant or (iii) the termination of this Plan by the Company.

  
 2.6. Maintenance of Records. Records regarding the
designation of Participants by the Board shall be maintained in the corporate minute book. The Written Elections by Participants shall be maintained in the corporate records with all other files pertaining to this Plan. 
  
 3. Contributions and Allocation. 
  
 3.1. Participant Contributions. 
  
 (A) A Participant may elect to defer a portion of his Plan Year Compensation
each Plan Year (described either as a percentage of Plan Year compensation or a flat dollar amount), up to the maximum amount allowed pursuant to following schedule for the tier to which such Participant belongs (as determined by the Board pursuant
to Section 2.3): 
  

				
	 Tier

	  	Maximum
Deferral %

	 
	 Tier 1
	  	100	%
	 Tier 2
	  	25	%
	 Tier 3
	  	12	%
	 Tier 4
	  	10	%

  
 (B) If the Participant
has elected to defer a specified dollar amount for a given Plan Year in accordance with Sections 2.4 and 3.1(A), once a Participant’s contributions for that 
  

 7 

 Plan Year have reached such elected dollar amount, such Participant shall not be allowed to defer additional portions of
his Plan Year Compensation for the remainder of the Plan Year. Any deferred amounts in excess of his elected dollar amount can be refunded to the Participant as soon as practicable. 
  
 (C) Subject to the limitations of Section 3.1(A), for purposes of the elections under Section 2.4 and the limitations under
Section 3.1 of the Plan, the election by Designated Participants to defer amounts out of cash bonus compensation shall be made, if at all, (a) by Written Election but separately from the election to defer out of base salary, but subject to the same
maximum deferral percentage applicable to regular Plan Year Compensation, and (b) prior to the date a discretionary bonus is declared during a Plan Year or, if the bonus is non-discretionary, prior to the beginning of the Plan Year. For purposes
hereof, a “non-discretionary bonus” means a bonus which is determined under a formula established for the Plan Year for which the bonus is earned. The percentage limitation on deferrals in Section 3.1(A) shall apply separately to deferrals
from base compensation and bonus compensation (in the case of Designated Participants); accordingly, bonuses shall not be taken into account when determining the maximum deferral from base compensation and vice-versa. 
  
 (D) Participant deferral contributions (including without limitation bonus
deferral contributions described in Section 3.1(C)) shall be collected by payroll deduction. In the case of Written Election that specifies a flat dollar amount, the amount specified (other than amounts deferred from cash bonuses by Designated
Participants) shall be deducted on pro-rated basis over the payroll periods during the affected Plan Year; in the case of a Written Election to defer a flat dollar amount of a cash bonus, the specified amount shall be deducted from the bonus
payment. 
  
 3.2. Company Contributions. On behalf of each
Participant for any Plan Year, the Company may contribute to the Plan an amount equal to a percentage of the amount each Participant contributes to the Plan as a Participant Contribution. The applicable percentage of the amount contributed by each
Participant shall be determined and authorized by the Board in its sole discretion. The contribution rate may (1) differ among Participants in the various Tiers; (2) differ as to Participant Contributions from base compensation or bonus; (3) be
limited to Participant Contributions that do not exceed a specified percentage of Plan Year Compensation or a particular dollar amount; or (4) be allocated taking into account any combination of (1)-(3) preceding or in any other manner specified by
the Board. 
  
 3.3. Allocation of Participant
Contributions. All amounts which a Participant elects to defer under the terms of this Plan shall be allocated to his Participant Deferral Account. Each such Participant Deferral Account shall be credited with earnings as provided in Section 3.5
below. 
  
 3.4. Allocation of Company Contributions. In
each Plan Year, the amount of any contribution determined for each Participant under Section 3.1 above shall be allocated to the Company Contribution Account of each Participant by the first day of the month following the time in which the deferral
from pay was made. Each such Company Contribution Account shall be credited with earnings as in Section 3.5 below. 
  

 8 

 3.5. Adjustments to Participant Deferral Account and Company Contribution Account. With
respect to each Participant who has a Participant Deferral Account or a Company Contribution Account under the Plan, the amount credited to each such account shall be adjusted by the following debits and credits, at the times and in the order
stated: 
  

	 	(A)	Each account shall be debited each business day with the total amount of any payments made from such account since the last preceding business day. 

  

	 	(B)	The Participant Deferral Account shall be credited on each Crediting Date with the total amount of any Participant deferrals to such account since the last preceding Crediting Date.

  

	 	(C)	The Company Contribution Account shall be credited on each date specified by the Committee with the total amount of Company Contributions to such account since the last date that
Company Contributions were credited. 

  

	 	(D)	The Participant Deferral Account and the Company Contribution Account shall be credited or debited on each day securities are traded on a national stock exchange with the amount of
deemed investment gain or loss resulting from the performance of the investment funds elected by the Participant in accordance with Section 2.4. The amount of such deemed investment gain or loss shall be determined by the Committee and such
determination shall be final and conclusive upon all concerned. 

  

	 	(E)	A Participant, by electing to participate in this Plan, agrees that neither the Company nor the Plan Committee has any liability for the investment results of the assets set aside
in the Trust. 

  

	 	(F)	The Trustee, as directed by the Plan Committee, shall have the duty and sole authority to invest the Trust assets and funds in accordance with the terms of the Trust Agreement, and
all rights associated with the Trust assets shall be exercised by the Trustee, as designated by the Board. 

  
 3.6. Forfeitures. If any amount of Participant Contributions are forfeited in any year, such forfeited amounts shall be used to reduce future
Company Contributions. 
  
 3.7. Funding. The assets of the
Plan shall be held under the Trust Agreement (a “grantor” or “rabbi” trust). As such, the Plan is intended to be an unfunded plan for purposes of the requirements of ERISA and the Code. Notwithstanding the provisions under the
terms of the Plan that amounts contributed to this Plan, plus earnings thereon, shall be allocated to separate accounts of Participants or that such amounts may become “vested”, all such amounts credited to such individual accounts shall
remain the general assets of the Company, and as such shall remain subject to the claims of the general creditors of the Company. This Plan and the related Trust Agreement do not create, nor does any Employee, Participant or Beneficiary have any
right with respect to any specific assets of the Company. 
  

 9 

 3.8 Insurance Contracts. In connection with this Plan, the Company may, in its sole discretion,
direct the Trustee to purchase life insurance contracts insuring Participants in this Plan but owned solely by the Trust (“Life Insurance Contract(s)”). All premiums with respect to Life Insurance Contracts shall be paid out of
contributions to the Plan that have been transferred to the Trustee, and the Trust shall be the sole beneficiary under such policies. The Company has no obligation to direct the purchase of a Life Insurance Contract with respect to any Participant.
Whether a given life insurance policy owned by the Trust and covering a Participant in this Plan is a Life Insurance Contract under this Plan with respect to such Participant shall be determined by the Plan Committee in its sole discretion.

  
 4. Vesting of Benefits. 
  
 4.1. Vesting of Participant Deferral Accounts. The Participant
Deferral Account of each Participant shall be one hundred percent (100%) vested in such Participant at all times, provided, however, that in the event of a Haircut Withdrawal, a portion of such account shall be forfeited in accordance with Section
5.5. 
  
 4.2. Company Contribution Account. The Company
Contribution Account of each Participant shall be one hundred percent (100%) vested in such Participant at all times, provided, however, that in the event of a Haircut Withdrawal described in Section 5.5, a portion of such account shall be forfeited
in accordance with Section 5.5. 
  
 5. Types of Benefits.

  
 5.1. Age 65 Benefit. If a Participant so elects in
his Written Election, he shall receive his Retirement Benefit(s) (calculated in accordance with Section 1.19) with respect to all his Written Election(s) upon Retirement in the form(s) specified on the respective Written Election(s) governing such
benefit. 
  
 5.2 Termination of Service Benefit. If a
Participant’s employment with the Company terminates prior to distribution, he will receive his Retirement Benefit calculated under Section 1.19 in the manner specified in Section 6.1(B). 
  
 5.3. Disability Benefit. 
  
 (A) If a Participant is determined to be Disabled as defined in Section 1.9
above, he will receive his Retirement Benefit, calculated under Section 1.19 with respect to all his Written Elections, in the applicable form(s) elected by the Participant in his Written Election(s), commencing as soon as practical after the
Committee’s determination that the Participant is disabled. 
  
 (B) The determination of whether a Participant is Disabled shall be made by the Plan Committee as follows: 
  

	 	(1)	A Participant who believes he has suffered a Disability shall make application to the Plan Committee, on a form prescribed by the Plan Committee, for a determination of whether he
is Disabled. The Participant shall make such written application to the Plan Committee on or after the 

  

 10 

	 	    	date which is at least five (5) consecutive months following the date he first suffered the impairment under consideration. Any determination by the Plan Committee that a Disability
exists shall be effective only after the date the Disability has continued for six (6) consecutive months. 

  

	 	(2)	The Plan Committee shall notify each Participant who has made application under this Section 5.3(B), in writing, of its determination within three (3) months of the date the Plan
Committee receives the Participant’s application hereunder. The Participant shall cooperate in providing any information to the Plan Committee which it requires in making its determination, including, but not limited to, access to the
Participant’s medical records, direct contact with his physician and physical examination by a physician selected by the Company. Any Participant who does not fully cooperate shall be deemed not Disabled by the Plan Committee and so notified.

  

	 	(3)	Notwithstanding anything in Sections 5.3(B)(1) and (2) to the contrary, a Participant may file a claim for Disability benefits at any time after incurring a Disability and prior to
the dates specified in such sections, provided that the physician treating the Participant for the disabling condition submits the evidence and certification described in Section 1.9, and provided further that the Participant must still file the
written application contemplated in Section 5.3(B)(1) and provide the requisite cooperation described in Section 5.3(B)(2) in order to receive such benefits. Any determination by the Plan Committee that a Disability exists under this Section
5.3(B)(3) will be effective on the date of such determination. 

  

	 	(4)	Except to the extent an appeal is available under this Plan, all determinations made by the Plan Committee shall be final, and no Participant shall be considered Disabled for any
purpose whatsoever under the provisions of this Plan if determined not to be Disabled by the Plan Committee under the procedures set forth in this Section 5.3(B). 

  
 5.4. Death Benefit. 
  
 (A) If a Participant dies after a distribution under Sections 5.1, 5.2, 5.3, 5.5 or 5.6 of this Plan has commenced, the payments of such distribution
otherwise due to the Participant will continue to his designated Beneficiary, in the applicable form elected by the Participant in his Written Election. 
  
 (B) If a Participant dies before a distribution under this Plan has commenced and the Trustee has not purchased a Life Insurance Contract in connection
with such Participant’s participation in this Plan, the Participant’s designated Beneficiary will receive the Participant’s Retirement Benefit as determined under Section 1.19 above with respect to all his Written Elections, in the
applicable form(s) elected by the Participant in his Written Election(s). 
  

 11 

 (C) If a Participant dies before a distribution under this Plan has commenced the Participant’s
designated Beneficiary will receive the group term life insurance policy benefit ($200,000 for 2004) and the vested balance of all accounts as described in section 1.19. 
  
 5.5 Haircut Withdrawals. A Participant, while he is employed by the Company, may make one withdrawal from his
Deferred Compensation Account by written request to the Committee; provided, however, that a Participant who requests a withdrawal under this Section 5.5 shall incur a penalty (the “haircut”) equal to the greater of $500 or 5% of the
amount withdrawn, and this penalty shall be forfeited from the Deferred Compensation Account of the Participant. The Participant must also forgo participation in the Plan until the beginning of the first Plan Year that begins at least six months
after the date of the withdrawal. At that time, the Participant must make a new Written Election to make deferrals under the Plan as of the beginning of a Plan Year, provided he is still eligible to do so, as his previous election will not
automatically be reinstated.  
  
 5.6 Financial Hardship
Withdrawals. A distribution of the Participant Deferral Account may be made to a Participant on account of financial hardship, subject to the following provisions: 
  
 (A) A Participant may, at any time prior to his Retirement or termination of employment with the Company for any reason,
including Disability, make application to the Committee to receive a distribution in a lump sum of all or a portion of his Deferred Compensation and Participant Contribution Accounts (determined as of the date the distribution, if any, is made under
this Section 5.6) because of an unforeseeable emergency that results in severe financial hardship to the Participant. A distribution because of an unforeseeable emergency shall not exceed the amount required to meet the immediate financial need
created by the unforeseeable emergency and not otherwise reasonably available from other resources of the Participant. Examples of an unforeseeable emergency shall include but shall not be limited to those financial needs arising on account of a
sudden or unexpected illness or accident of the Participant or of a dependent of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events
beyond the reasonable control of the Participant. 
  
 (B) The
Participant’s request for a distribution on account of financial hardship must be made in writing to the Plan Committee. The request must specify the nature of the financial hardship, the total amount requested to be distributed from the
Deferred Compensation or Participant Contribution Account, and the total amount of the actual expense incurred on account of financial hardship. 
  
 (C) If a distribution under this Section 5.6 is approved by the Committee, such distribution will be made as soon as practicable following the date it is
approved. The processing of the request shall be completed as soon as practicable from the date on which the Committee receives the properly completed written request for a distribution on account of a financial hardship. If a Participant’s
termination of service occurs after a request is approved in accordance with this Section 5.6, but prior to distribution of the full amount approved, the approval of the request shall be automatically null and void and the benefits which the
Participant is entitled to receive under the Plan shall be distributed in accordance with the 

  

 12 

 
applicable distribution provisions of the Plan. Only one financial hardship distribution shall be made within any Plan Year. 
  
 (D) The Committee may from time to time adopt additional policies or rules
governing the manner in which such distributions may be made so that the Plan may be conveniently administered. 
  
 6. Distributions. 
  
 6.1. Form of Benefits. Benefits under the Plan shall be paid in the form associated with Type of Benefit to be received by the Participant under
Section 5, and to the extent a Type of Benefit may be distributed in various forms, the Company shall pay benefits in the form elected by the Participant in his Written Election. Where yearly installments are contemplated, such installments shall be
as nearly equal as possible. The forms of benefits associated with the Types of Benefits are the following: 
  
 (A) Benefits upon Retirement (Section 5.1), Disability (Section 5.3) or death (Section 5.4) may be paid in (i) one lump sum; (ii) 5 yearly installments;
(iii) 10 yearly installments; or (iv) 15 yearly installments. 
  
 (B) Benefits upon termination of employment with the Company for reasons other than Retirement, Disability or death (Section 5.2), shall be paid in one lump sum or five yearly installments, notwithstanding the pay-out election on the
Participant’s Written Election. Within thirty days after the Participant’s termination of employment with the Company for a reason other than Retirement, Disability or death, the Participant shall elect to have his benefits paid in one
lump sum or in five yearly installments. If the Participant does not make an election during this thirty-day period, he shall receive his entire benefit in a single lump sum. 
  
 (C) A Haircut Withdrawal (Section 5.6) shall be paid in one lump sum; and 
  
 (D) Financial Hardship Benefit (Section 5.6) shall be paid in one lump sum.

  
 6.2. Commencement of Payments. Payment of benefits
under this Plan to the Participant will commence in accordance with the following: 
  
 (A) Retirement Benefit (Section 5.1), Disability Benefit (Section 5.3) and Death Benefit (Section 5.4) payments shall commence no later than January 15 of the Plan Year following the Plan Year in which the Participant
retires, becomes disabled or dies, as the case may be. Termination of Service Benefits (Section 5.2) shall commence no earlier than the end of the seventh month that begins after the month in which the Participant’s termination of service
occurs. 
  
 (B) Financial Hardship Benefit (Section 5.6) payments
and Haircut Withdrawals (Section 5.5) payments shall commence no later than (sixty (60) days after a request is approved by the Plan Committee. 
  

 13 

 7. Amendment, Termination of Plan, Change in Control. 
  
 7.1. Amendment. The Company reserves the right to amend the Plan at
any time by resolution of the Board. The Board will determine the effective date of any such amendment. The amendment may not deprive any Participant or Beneficiary of any portion of a benefit accrued under the terms of this Plan at the time of the
amendment. 
  
 7.2. Termination of Plan. The Company
reserves the right to terminate the Plan at any time by resolution of the Board. In the event of Plan termination, the Company will calculate the Retirement Benefit of each Participant as of the effective date of the termination and distribute such
amounts to the Participant or Beneficiary in a lump sum within thirty (30) days of the Plan’s termination. 
  
 7.3. Change in Control. In the event of a Change in Control, the Plan shall automatically terminate and the provisions of Section 7.2 shall
control. 
  
 8. Benefits not Funded. 
  
 (A) Participants Unsecured Creditors. Participants and Beneficiaries
have the status of unsecured creditors of the Company, and the Plan constitutes a mere promise by the Company to make benefit payments in the future. A Participant’s or Beneficiary’s interest in the Plan is an unsecured claim against the
general assets of the Company, and neither the Participant nor a Beneficiary has any right against the Participant’s account balances until the Plan has distributed the Participant’s benefit. 
  
 (B) Deposits to Trust. Notwithstanding anything in Section 8(A) to the
contrary, the Company will make a transfer of cash to the Trust in the amount necessary to fund the deferred compensation. A copy of the Trust Agreement is attached to this Plan. However, such Trust created by the Company is intended to be a grantor
or “rabbi” trust, and any assets held by such Trust to be used to assist the Company in meeting its obligations under the Plan, provided that all such assets shall at all times remain subject to the claims of creditors of the Company.

  
 (C) “Top Hat” Plan. It is the intention of
the Company that this Plan and the accompanying Trust shall constitute an unfunded arrangement maintained for the purpose of providing deferred compensation for a select group of management or highly compensated employees for purposes of Title I of
the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder. 
  
 9. Miscellaneous. 
  
 9.1. Designation of Beneficiary. 
  
 (A) Designation. Each Participant shall designate, in writing, prior to the date he first becomes a Participant in the Plan, one or more
Beneficiaries to receive his benefit under the provisions of Section 5.4. The Participant shall file the written designation with the Plan Committee. The Participant may revoke a previous Beneficiary designation by filing a new written beneficiary
designation with the Plan Committee, which shall be effective upon receipt by the Plan Committee. 
  

 14 

 (B) No Designated Beneficiary. If a Participant fails to file a valid designation of beneficiary
with the Plan Committee under the provisions of this Section 9.1, or if no designated Beneficiary survives the Participant, then the death benefit under this Plan shall be payable to the Participant’s spouse or, if no spouse survives, then to
the Participant’s estate. If a Participant names more than one primary Beneficiary, one or more primary Beneficiary(ies) does not survive the Participant, and the Participant has not named a contingent Beneficiary for the share allocated to the
deceased Beneficiary, the portion allocable to the deceased Beneficiary(ies) shall pass as if there is no surviving Beneficiary (i.e., to the Participant’s spouse or estate, as applicable). 
  
 (C) Secondary Beneficiaries. If a Beneficiary becomes entitled to
payments under this Plan as the result of having survived the Participant, the Beneficiary may designate his own Beneficiary to receive such Plan benefits as may be due to him and unpaid at the time of his death. Any Beneficiary designation under
this Section 9.1(C) shall be subject to the same terms and conditions applicable to a Beneficiary designation by a Participant (as specified in this Section 9.1), including the default beneficiary designations described in 9.1(B). 
  
 (D) Automatic Revocation Upon Divorce. Notwithstanding anything in
this Section 9.1 to the contrary, if a Participant or Beneficiary who has designated another Beneficiary under Section 9.2 is subsequently divorced, all beneficiary designations executed by such Participant or Beneficiary prior to the effective date
of the dissolution of marriage are automatically revoked under the terms of this Section 9.1. In such event, the Participant or Beneficiary may thereafter designate one or more Beneficiaries in accordance with the terms of this Section 9.1. If none
is made following the effective date of the dissolution of the marriage, the individual’s benefit shall be distributed upon his death pursuant to the terms of Section 9.1(B). 
  
 9.2. Benefits Not Assignable. The rights of each Participant or Beneficiary are not subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Participant or any Beneficiary. Neither the Participant nor Beneficiary may assign, transfer or pledge the benefits under this
Plan. Any attempt to assign, transfer or pledge a Participant’s benefits under this Plan is void. 
  
 9.3. Benefit. This Plan constitutes an agreement between the Company and each of the Participants which is binding upon and inures to the Company,
its successors and assigns and upon the Participant and his heirs and legal representatives. 
  
 9.4. Headings. The headings of the Articles and Sections of this Plan are included for purposes of convenience only, and shall not affect the construction or interpretation of any of its provisions. 

 
 9.5. Notices. All notices, requests, demands, and other
communications under this Plan shall be in writing and shall be deemed to have been duly given on the date of service if served personally on the party to whom notice is to be given, or (except as otherwise specified in this Plan) on the third day
after mailing if mailed to the party to whom notice is to be given, by first class mail, registered or certified (return receipt requested), postage prepaid, and properly addressed to the last known address to each party as set forth on the first
page thereof. Any party 
  

 15 

 may change its address for purposes of this Section by giving the other parties written notice of the new address in the
manner set forth above. 
  
 9.6. No Loans. The Plan does
not permit any loans to be made to any Participant or Beneficiary. 
  
 9.7. Gender Usage. The use of the masculine gender includes the feminine gender for all purposes of this Plan. 
  
 9.8. Expenses. Costs of administration of the Plan shall be paid by the Company. 
  
 9.9. Claims Review Procedure. 
  
 (A) A claim for benefits must be filed, in writing, with the Company’s Human Resources Department. A written
disposition of a claim shall be furnished to the claimant within ninety (90) days (forty-five (45) days in the case of a Disability claim) after the claim for benefits is filed, subject to an extension of up to ninety (90) days (for Disability
claims, two, thirty (30) day extensions). In the event that an extension is required, the Human Resources Department will notify the Participant in writing (including a statement of the reasons for the extension) before the expiration of the
then-pending response period. In the event a claim for benefits is denied, the Human Resources Department shall provide the claimant with the reasons for denial (including, without limitation, a reference to any section of the Plan that may be
implicated and/or any additional information needed to perfect the claim and the reason it is required) and notification of his rights of appeal under this Plan (and such other applicable information of documentation germane to the decision as may
be required by law). 
  
 (B) A claimant whose claim for benefits
is denied in whole or in part may file for a review of such denial with the Plan Committee, no later than sixty (60) days (one hundred eighty (180) days for Disability cases) after he has received written notification of the denial. 
  
 (C) The Plan Committee shall give a request for review a full and fair
review, without deference to the initial review of the Human Resources Department. No person who participated in the initial review of the claim (or any subordinate of such person) may participate in the decision on the appeal of the claim. If the
claim for benefits is denied upon completion of a full and fair review, notice of such denial shall be provided to the claimant within sixty (60) days (forty-five (45) days in the case of a Disability claim) after the Plan Committee’s receipt
of such written claim for review. This initial period may be extended by a period of equal length in the event of special circumstances. Such special circumstances shall be communicated to the claimant in writing within the initial period. If there
is an extension, a decision shall be made as soon as possible, but not later than 120 days (90 days for Disability claims) after receipt by the Plan Committee of such claim for review. In the case of an appealed Disability claim, the determination
of which is based in whole or in part on medical judgment, the Plan Committee shall consult with a health care professional with appropriate training in the applicable field of medicine and shall identify those consulted, provided that the selected
health care professional may not be any individual who was consulted in connection with the initial adverse decision (or any subordinate of such individual). 
  

 16 

 (D) If benefits are provided or administered by an insurance company, insurance service, or other similar
organization which is subject to regulation under the insurance laws, the claims procedure relating to these benefits may provide for review. If so, that company, service, or organization will be the entity to which claims are addressed. 

 
 9.10. No Other Agreements or Understandings. This Plan represents
the sole agreement between the Company and Participants concerning its subject matter and it supersedes all prior agreements, arrangements, understandings, warranties, representations, and statements between the parties concerning its subject
matter. 
  
 10. Administration. 
  
 10.1 Responsible Parties. The persons responsible for the Plan and the
duties and responsibilities allocated to each are as follows: 
  

	 	(A)	Board. 

  

	 	(i)	To amend the Plan; 

  

	 	(ii)	To appoint and remove member of the Committee; 

  

	 	(iii)	To designate Participants; and 

  

	 	(iv)	To terminate the Plan. 

  

	 	(B)	Committee. 

  

	 	(i)	To interpret the provisions of the Plan and to determine the rights of the Participants under the Plan, except to the extent otherwise provided in Section 9.9 relating to claims
review procedures; 

  

	 	(ii)	To administer the Plan in accordance with its terms, except to the extent powers to administer the Plan are specifically delegated to another person or persons as provided in the
Plan; 

  

	 	(iii)	To account for the Retirement Benefits of Participants; and 

  

	 	(iv)	To direct the Company in the payment of benefits. 

  

	 	(v)	To file such reports as may be required with the United States Department of Labor, the Internal Revenue Service and any other government agency to which reports may be required to
be submitted from time to time; and 

  

	 	(vi)	To administer the claims procedure to the extent provided in Section 9.9. 

  
 10.2 Authority to Interpret Plan. Subject to the claims procedure set forth in Section 9.9, the Committee shall have the duty and discretionary
authority to interpret and 
  

 17 

 construe the provisions of the Plan and to decide any dispute which may arise regarding the rights of Participants
hereunder, including the discretionary authority to construe the Plan and to make determinations as to eligibility and benefits under the Plan. Determinations by the Committee shall apply uniformly to all persons similarly situated and shall be
binding and conclusive upon all interested persons. 
  
 10.3
Third Party Advisors. The Committee may engage an attorney, accountant, actuary or any other technical advisor on matters regarding the operation of the Plan and to perform such other duties as shall be required in connection therewith, and
may employ such clerical and related personnel as the Committee shall deem requisite or desirable in carrying out the provisions of the Plan. The Committee shall from time to time, but no less frequently than annually, review the financial condition
of the Plan and determine the financial and liquidity needs of the Plan. The Committee shall communicate such needs to the Company so that its policies may be appropriately coordinated to meet such needs. 
  
 10.4 Compensation of Members. No fee or compensation shall be paid to
any member of the Committee for his service as such. 
  
 10.5
Indemnification. No member of the Committee shall be personally liable by reason of any contract or other instrument executed by him or on his behalf as a member of the Committee nor for any mistake of judgment made in good faith, and the
Company shall indemnify and hold harmless, directly from its own assets (including the proceeds of any insurance policy the premiums for which are paid from the Company’s own assets), each member of the Committee and each other officer,
employee, or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be delegated or allocated, against any unreimbursed or uninsured cost or expense (including any sum paid in settlement of
a claim with the prior written approval of the Board) arising out of any act or omission to act in connection with the Plan unless arising out of such person’s own fraud, bad faith, willful misconduct or gross negligence. 
  
 10.6. Liability. To the extent permitted by law, neither the Plan
Committee nor any other person shall incur any liability for any acts or for any failure to act except for liability arising out of such person’s own willful misconduct or willful breach of the Plan. 
  
 IN WITNESS WHEREOF, the Company has adopted this amended and restated Plan
effective on January 1, 2004. 
  

			
	PEDIATRIC SERVICES OF AMERICA, INC.
		
	By:	 	/s/ Joseph D. Sansone
	 	 	

	 	 	 Joseph D. Sansone
 President

  

 18

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