Document:

EX-10.1

 Exhibit 10.1 

Execution Copy 
  

 
  

 
 STOCK PURCHASE AGREEMENT 

by and among 

COMMERCIAL METALS COMPANY, 

HOWELL METAL COMPANY, 

and 
 MUELLER COPPER
TUBE PRODUCTS, INC., 
 for the purchase and sale of 

all outstanding capital stock of 

Howell Metal Company 

Dated as of October 17, 2013 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	  	Page	 
		
	 ARTICLE I. DEFINITIONS
	  	 	1	  
		
	 ARTICLE II. SALE AND PURCHASE
	  	 	11	  
	 Section 2.1.
	 	 Agreement to Sell and to Purchase
	  	 	11	  
	 Section 2.2.
	 	 Closing
	  	 	11	  
	 Section 2.3.
	 	 Purchase Price; Company Transaction Expenses
	  	 	13	  
	 Section 2.4.
	 	 Purchase Price Adjustments
	  	 	14	  
	 Section 2.5.
	 	 Post-Closing Adjustment Payment
	  	 	15	  
	 Section 2.6.
	 	 Accounting Procedures
	  	 	15	  
	 Section 2.7.
	 	 Excluded Assets; Excluded Liabilities
	  	 	15	  
	 Section 2.8.
	 	 Withholding Rights
	  	 	16	  
	 Section 2.9.
	 	 FIRPTA
	  	 	16	  
	 Section 2.10.
	 	 Section 338 Election
	  	 	16	  
		
	 ARTICLE III. REPRESENTATIONS AND WARRANTIES OF THE SELLER
	  	 	17	  
	 Section 3.1.
	 	 Corporate Organization
	  	 	17	  
	 Section 3.2.
	 	 Qualification to Do Business; Authorization and Validity of Agreement
	  	 	17	  
	 Section 3.3.
	 	 No Conflict or Violation
	  	 	18	  
	 Section 3.4.
	 	 Consents and Approvals
	  	 	18	  
	 Section 3.5.
	 	 Capital Stock and Related Matters
	  	 	18	  
	 Section 3.6.
	 	 Subsidiaries and Equity Investments
	  	 	19	  
	 Section 3.7.
	 	 Financial Statements
	  	 	19	  
	 Section 3.8.
	 	 Absence of Certain Changes or Events
	  	 	20	  
	 Section 3.9.
	 	 Tax Matters
	  	 	21	  
	 Section 3.10.
	 	 Absence of Undisclosed Liabilities
	  	 	22	  
	 Section 3.11.
	 	 Owned Real Property
	  	 	23	  
	 Section 3.12.
	 	 Leases
	  	 	24	  
	 Section 3.13.
	 	 Assets of the Company
	  	 	25	  
	 Section 3.14.
	 	 Intellectual Property
	  	 	25	  
	 Section 3.15.
	 	 Licenses and Permits
	  	 	26	  
	 Section 3.16.
	 	 Compliance with Law
	  	 	26	  
	 Section 3.17.
	 	 Litigation
	  	 	27	  
	 Section 3.18.
	 	 Contracts
	  	 	27	  
	 Section 3.19.
	 	 Inventories
	  	 	28	  
	 Section 3.20.
	 	 Employee Plans
	  	 	29	  
	 Section 3.21.
	 	 Insurance
	  	 	31	  
	 Section 3.22.
	 	 Transactions with Affiliates
	  	 	31	  
	 Section 3.23.
	 	 Labor Matters
	  	 	32	  
	 Section 3.24.
	 	 Environmental Matters
	  	 	33	  
	 Section 3.25.
	 	 Products Liability
	  	 	35	  
	 Section 3.26.
	 	 Customers and Suppliers
	  	 	36	  

  
 i 

							
	 Section 3.27.
	 	 Business Books and Records
	  	 	36	  
	 Section 3.28.
	 	 No Other Representations and Warranties
	  	 	36	  
		
	 ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF BUYER
	  	 	36	  
	 Section 4.1.
	 	 Corporate Organization
	  	 	36	  
	 Section 4.2.
	 	 Authorization and Validity of Agreement
	  	 	37	  
	 Section 4.3.
	 	 No Conflict or Violation
	  	 	37	  
	 Section 4.4.
	 	 Consents and Approvals
	  	 	37	  
	 Section 4.5.
	 	 Investment Intent
	  	 	37	  
	 Section 4.6.
	 	 Investment Awareness
	  	 	37	  
	 Section 4.7.
	 	 Acknowledgment of No Other Representations and Warranties of the Seller
	  	 	37	  
	 Section 4.8.
	 	 Solvency
	  	 	38	  
	 Section 4.9.
	 	 No Other Representations and Warranties
	  	 	38	  
		
	 ARTICLE V. COVENANTS OF THE PARTIES
	  	 	38	  
	 Section 5.1.
	 	 Necessary Consents and Approvals
	  	 	38	  
	 Section 5.2.
	 	 Access and Information
	  	 	39	  
	 Section 5.3.
	 	 Books and Records
	  	 	39	  
	 Section 5.4.
	 	 Existing Third Party Indemnification Rights
	  	 	40	  
	 Section 5.5.
	 	 Director and Officer Indemnification Rights
	  	 	40	  
	 Section 5.6.
	 	 Tax Matters
	  	 	41	  
	 Section 5.7.
	 	 Insurance
	  	 	44	  
	 Section 5.8.
	 	 Post-Closing Receipts
	  	 	45	  
	 Section 5.9.
	 	 Employees and Employee Benefits
	  	 	45	  
		
	 ARTICLE VI. ADDITIONAL COVENANTS OF THE PARTIES
	  	 	46	  
	 Section 6.1.
	 	 Consummation of the Stock Purchase
	  	 	46	  
	 Section 6.2.
	 	 Information
	  	 	47	  
	 Section 6.3.
	 	 Confidentiality
	  	 	47	  
	 Section 6.4.
	 	 Use of Name
	  	 	47	  
	 Section 6.5.
	 	 Environmental Matters
	  	 	48	  
		
	 ARTICLE VII. INDEMNIFICATION
	  	 	48	  
	 Section 7.1.
	 	 Indemnification by Seller
	  	 	48	  
	 Section 7.2.
	 	 Indemnification by Buyer and the Company
	  	 	50	  
	 Section 7.3.
	 	 Indemnification Procedures; Escrow
	  	 	50	  
	 Section 7.4.
	 	 Indemnification Limitations
	  	 	52	  
		
	 ARTICLE VIII. SURVIVAL
	  	 	56	  
	 Section 8.1.
	 	 Survival of Representations, Warranties and Covenants
	  	 	56	  
		
	 ARTICLE IX. MISCELLANEOUS
	  	 	56	  
	 Section 9.1.
	 	 Successors and Assigns
	  	 	56	  
	 Section 9.2.
	 	 GOVERNING LAW; JURISDICTION
	  	 	56	  
	 Section 9.3.
	 	 Expenses
	  	 	57	  
	 Section 9.4.
	 	 Broker’s and Finder’s Fees
	  	 	57	  

  
 ii 

							
	 Section 9.5.
	 	 Severability
	  	 	57	  
	 Section 9.6.
	 	 Notices
	  	 	57	  
	 Section 9.7.
	 	 Amendments; Waivers
	  	 	58	  
	 Section 9.8.
	 	 Specific Performance
	  	 	58	  
	 Section 9.9.
	 	 Public Announcements
	  	 	59	  
	 Section 9.10.
	 	 Entire Agreement
	  	 	59	  
	 Section 9.11.
	 	 Parties in Interest
	  	 	59	  
	 Section 9.12.
	 	 Schedule Disclosures
	  	 	59	  
	 Section 9.13.
	 	 Section and Paragraph Headings
	  	 	59	  
	 Section 9.14.
	 	 Counterparts
	  	 	59	  
	 Section 9.15.
	 	 Representation of Seller
	  	 	59	  

  
 iii 

 STOCK PURCHASE AGREEMENT 

THIS STOCK PURCHASE AGREEMENT (this “Agreement”), dated as of October 17, 2013, is by and among Commercial Metals
Company, a Delaware corporation (the “Seller”), Howell Metal Company, a Virginia corporation (the “Company”), and Mueller Copper Tube Products, Inc., a Delaware corporation (the “Buyer”). 

W I T N E S S E T H: 

WHEREAS, the Company manufactures a range of copper tubing products; 

WHEREAS, the Seller owns 2,010 shares of Class A Common Stock, no par value per share, of the Company (“Company Common
Stock”), constituting 100% of the issued and outstanding shares of capital stock of the Company (all such shares of Company Common Stock are referred to herein as the “Shares”); 

WHEREAS, the Buyer desires to purchase the Shares from the Seller, and the Seller desires to sell the Shares to the Buyer, in each case upon
the terms and subject to the conditions set forth in this Agreement; 
 WHEREAS, prior to or concurrently with the execution of this
Agreement, the Excluded Assets and Excluded Liabilities are being transferred by the Company to the Seller or its Affiliates (other than the Company); and 

WHEREAS, in connection with the transactions contemplated by this Agreement, the Seller and the Buyer have executed and delivered, as of the
date hereof, (i) an agreement for transition services (the “Transition Services Agreement”), (ii) a trademark license agreement (the “Trademark License Agreement”), (iii) a non-compete and non-solicit
agreement (the “Non-Compete Agreement”) and (iv) the Assignment and Assumption Agreement (as defined below), each of which shall become effective upon the Closing; 

NOW, THEREFORE, in consideration of the mutual terms and other agreements set forth herein, the Parties hereto hereby agree as follows: 

ARTICLE I. 
 DEFINITIONS

 As used in this Agreement, the following terms shall have the following meanings: 

“Actions” — See Section 3.17; 

“Affiliate” — an Affiliate of any Person shall mean another Person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with, such first Person. For the avoidance of doubt, unless otherwise specified herein, the Company shall be deemed an “Affiliate” of the Seller (and not the Buyer)
prior to the Closing and shall be deemed an “Affiliate” of the Buyer (and not the Seller) from and after the Closing; it being understood, that for purposes of this definition, the Seller shall not be deemed to be an Affiliate of the Buyer
and the Buyer shall not be deemed to be an Affiliate of the Seller; 

  
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 “Affiliate Contracts” — See Section 3.22(b); 

“Agreement” — See Preamble hereto; 

“Ancillary Agreements” — shall mean the Escrow Agreement, the Non-Compete Agreement, the Transition Services Agreement
and the Assignment and Assumption Agreement; 
 “Assignment and Assumption Agreement” means the Assignment and Assumption
Agreement to be entered into by the Seller and the Buyer at the Closing relating to the Excluded Assets and the Excluded Liabilities; 

“Balance Sheet” — See Section 3.10; 

“Business” shall mean the business of the Company (other than the Excluded Assets and Excluded Liabilities), as conducted
immediately prior to the Closing Date (except where the context indicates otherwise), which included the distribution, manufacturing and sale of copper tubing products; 

“Business Books and Records” shall mean originals or copies of all books and records or portions thereof (including documents
and data), in the possession or control of the Seller or any of its Affiliates (for the avoidance of doubt, including the Company) to the extent that they pertain or relate to the Business, including all Licenses and Permits, customer lists,
marketing materials, corporate records, administrative records, sales records, accounting records, financial records, Tax records, compliance records and other records, complaint logs, litigation files, contract information, administrative and
pricing manuals and other records, in whatever form maintained, including on electronic or magnetic media or in any electronic database systems of the Seller or its Affiliates, but excluding the Excluded Assets and Excluded Liabilities; 

“Business Day” shall mean a day other than a Saturday, Sunday or other day on which banks in the States of New York or
Virginia are not required or authorized to close; 
 “Business Material Adverse Effect” shall mean any material adverse
effect on the business, assets, properties, operations or financial condition of the Company or the Business, other than effects due to or resulting from general economic or market conditions or matters generally affecting the copper tubing industry
in which the Business operates (except to the extent such change in general economic or market conditions, or other such matters, have a disproportionate effect on the Company when compared to other Persons similarly situated); 

“Buyer” — See Preamble hereto; 

“Buyer Event of Breach” — See Section 7.2(b)(i); 

“Buyer Indemnified Events” — See Section 7.1(b); 

“Buyer Indemnified Parties” — See Section 7.1(a); 

  
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 “Cap” — See Section 7.4(b)(ii); 

“Closing” — See Section 2.2(a); 

“Closing Balance Sheet” — See Section 2.4(b); 

“Closing Date” — See Section 2.2(a); 

“Closing Purchase Price” shall mean (i) $58,500,000, minus (ii) the Escrow Amount; 

“CMC Marks” — See Section 6.4; 

“Code” shall mean the Internal Revenue Code of 1986, as amended; 

“Company” — See Preamble hereto; 

“Company Common Stock” — See Recitals hereto; 

“Company Employee” — See Section 3.23(d); 

“Company Plan” shall mean each Plan under which the Company has any current or potential Liabilities; 

“Company Transaction Expenses” shall mean all fees and expenses incurred by the Company on or prior to the Closing Date in
connection with or related to the transactions contemplated by this Agreement that remain due and payable by the Company as of the Closing Date, including all fees and expenses of professionals (including investment bankers, attorneys, accountants
and other consultants and advisors) retained by the Company prior to the Closing Date; 
 “Confidentiality Agreement” shall
mean the confidentiality agreement dated February 4, 2013 by and between Mueller Industries, Inc. and the Seller; 

“Continuing Employee” — See Section 5.9(a); 

“Controlled Group” — See Section 3.20(d); 

“Covered Parties” — See Section 5.5(a); 

“Data Room” means the electronic documentation site established by Merrill Datasite on behalf of the Seller containing
documents related to the Company; 
 “De Minimis Claim” — See Section 7.4(b)(i); 

“Deductible” — See Section 7.4(b)(i); 

“Dispute Resolution Firm” — See Section 2.4(b); 

  
 3 

 “Employment Liabilities” shall mean the amount required to be paid to any
Company Employee who is a party to an employment agreement with the Company in the event of a change in control or in the event that such Company Employee’s employment with the Company is terminated without cause (including the cost of any
benefits payable thereon) plus the employer portion of any employment Taxes (FICA, Medicaid, etc.) incurred on account of such payments; 

“Environmental Claim” — See Section 3.24(f); 

“Environmental Laws” shall mean any federal, state, or local statute, regulation, rule, ordinance, order, decree, or other
requirement of law (including, without limitation, common law) relating to pollution or protection of human health from exposure to pollutants or the environment, including without limitation, laws relating to the exposure to, or Releases or
threatened Releases of, or otherwise relating to the identification, generation, use, transportation, handling, discharge, emission, treatment, storage, or disposal of any pollutant, contaminant, hazardous or solid waste, or any hazardous or toxic
substance or material. Without limiting the generality of the foregoing, Environmental Laws shall include, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et
seq.; the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq.; the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.; the Clean Air Act, 42 U.S.C. § 7401
et seq.; the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; the Safe Drinking Water Act, 42 U.S.C. 300(f) et seq.; and the Hazardous Materials Transportation Act, 49 U.S.C.
§ 5101 et seq., each as amended, regulations promulgated thereunder, permits issued thereunder, and analogous and state and local statutes, regulations, rule and ordinances; 

“Environmental Permits” — See Section 3.24(a); 

“Equipment and Machinery” — shall mean all the equipment, machinery, furniture, fixtures and improvements, supplies and
vehicles owned, leased or used by the Company or the Business; 
 “ERISA” — shall mean the Employee Retirement Income
Security Act of 1974, as amended; 
 “ERISA Affiliate” — See Section 3.20(d); 

“Escrow Account” — See Section 7.3(c)(i); 

“Escrow Agent” shall mean The Bank of New York Mellon Trust Company, N.A.; 

“Escrow Agreement” — See Section 7.3(c)(i); 

“Escrow Amount” — See Section 7.3(c)(i); 

“Estimated Net Working Capital” — See Section 2.4(a); 

“Event of Breach” — See Section 7.2(b)(i); 

  
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 “Excluded Assets” — See Section 2.7; 

“Excluded Items” — See Section 7.4(b); 

“Excluded Liabilities” — See Section 2.7; 

“Financial Statements” — See Section 3.7(a); 

“FIRPTA Affidavit” — See Section 2.9; 

“Forkovitch” — See Section 5.9(g); 

“Forkovitch Restrictive Covenants” — See Section 5.9(g); 

“Fundamental Representations” — See Section 7.4(a); 

“GAAP” shall mean generally accepted accounting principles in the United States applied on a consistent basis; 

“Governmental Entity” shall mean any federal, state or foreign governmental or public body, agency or authority; 

“Hazardous Substance” — See Section 3.24(c); 

“HSR Act” — See Section 3.4; 

“Income Tax Returns” shall mean all reports and returns required to be filed with respect to Income Taxes; 

“Income Taxes” shall mean Taxes determined on the basis of income or gross receipts; 

“Indebtedness” shall mean, as to any Person at any date, without duplication, the following: (a) all obligations of such
Person for borrowed money, including all outstanding principal, interest, fees and other amounts payable with respect thereto; (b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, including all
outstanding principal, interest, fees and other amounts payable with respect thereto; (c) all obligations of such Person as lessee under capital leases; (d) the deferred portion or installments of purchase price (other than inventory
purchased and trade payables arising in the ordinary course of business consistent with past practice), and any amounts reserved for the payment of a contingent purchase price, in connection with the acquisition of any assets or business;
(e) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired (even though the rights and remedies of the seller or lender under such agreement in the event of default
are limited to repossession or sale of such property), (f) all outstanding payment or reimbursement obligations due and payable under a surety bond, performance bond, bank guaranty, letter of credit, to the extent drawn, or similar instrument,
in each case, issued or provided by a third party on behalf of such Person or any of its Subsidiaries to another third party; (g) all unfunded, present or contingent obligations relating to retention commitments, change of control,
“stay” bonuses, transaction related or similar bonuses (other than the Employment Liabilities); and (h) all Indebtedness described in any of clauses (a) through (f) above of others guaranteed by such Person; 

  
 5 

 “Indemnified Event” — See Section 7.2(b); 

“Indemnified Party” shall mean, with respect to a particular matter, a Person who is entitled to indemnification from a party
hereto pursuant to Article VII hereof; 
 “Indemnifying Party” shall mean, with respect to a particular matter, a
party hereto who is required to provide indemnification pursuant to Article VII hereof to another Person; 
 “Indemnity
Escrow Amount” — See Section 7.3(c)(i); 
 “Intellectual Property” shall mean all of the
following owned by, issued to or licensed to the Company or otherwise used in the Business, but in each case excluding the Excluded Assets: (i) all inventions (whether patentable or unpatentable and whether or not reduced to practice), all
improvements thereto, and all patents, patent applications, and patent disclosures, together with all reissuances, continuations, continuations-in-part, revisions, extensions and reexaminations thereof; (ii) all trademarks, service marks, trade
dress, logos, trade names, corporate names and other indications of origin, together with all translations, adaptations, derivations, and combinations thereof and including all goodwill associated therewith, and all applications, registrations and
renewals in connection therewith; (iii) all copyrightable works (including, without limitation, all software developed by or on behalf of the Company), all copyrights, and all applications, registrations and renewals in connection therewith;
(iv) all mask works and all applications, registrations and renewals in connection therewith; (v) all trade secrets and confidential business information (including ideas, research and development, know-how, formulas, compositions,
manufacturing and production processes and techniques, technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost information, and business and marketing plans and proposals); (vi) all computer software
(including object code, source code, data and related documentation); (vii) all Internet Websites, including domain name registrations and content and software included therein; and (viii) all rights to recover for past infringements of
any of the foregoing; 
 “Intercompany Payables” shall mean all account, note or loan payables and all advances (cash or
otherwise) or any other extensions of credit that are payable by the Company, on the one hand, to the Seller or any of its Affiliates (other than the Company), on the other hand; 

“Intercompany Receivables” shall mean all account, note or loan receivables and all advances (cash or otherwise) or any other
extensions of credit that are receivable by the Company, on the one hand, from the Seller or any of its Affiliates (other than the Company), on the other hand; 

“Inventory” shall mean all raw material inventory, work-in-process inventory and finished goods inventory of the Company as
of the Closing (including, without limitation, all coil stock, line sets, copper products and accessories or related products associated with the Business), excluding any steel pipe inventory; 

  
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 “Knowledge” shall mean with respect to the Buyer, the Company and the Seller,
the current, actual knowledge of such Person’s directors and executive officers, after reasonable inquiry that, with respect to the Company and the Seller, would be consistent with their normal duties and responsibilities in the operation of
the Business; 
 “Known Environmental Issue” shall mean the trichloroethene (and its breakdown chemicals, including but not
limited to DCE and vinyl chloride) contamination described in the Phase II Environmental Site Assessment, dated August 29, 2013; 

“Leased Real Property” — See Section 3.12(a); 

“Leases” — See Section 3.12(a); 

“Liabilities” shall mean any and all liabilities and obligations of any kind or nature, including those arising under common
law, statute (or other law), contract or otherwise, whether known or unknown, or liquidated or unliquidated; 
 “Licenses and
Permits” — See Section 3.15; 
 “Lien” shall mean any mortgage, pledge, security interest,
encumbrance of any kind or character, lien (statutory or other), conditional sale agreement, claim, charge, limitation or restriction; 

“Loss” — See Section 7.1(a); 

“Material Contract” — See Section 3.18(a)(xiv); 

“Material Customer” — See Section 3.26(a); 

“Material Supplier” — See Section 3.26(b); 

“Net Adjustment Amount” — See Section 2.4(c). 

“Net Working Capital” shall mean, as of the time of determination, an amount equal to (i) Inventory (excluding steel
pipe inventory), the value of which shall be determined in accordance with the principles, policies, practices, procedures, classifications, judgments and methodologies (A) set forth in the Working Capital Computation Framework described in
Schedule 2.6(a) and (B) used in the sample inventory calculation set forth in Schedule 2.6(b), plus (ii) trade account receivables (net of allowance for doubtful accounts) and other current assets of the types
described in the Estimated Net Working Capital calculation set forth on Schedule 2.4, minus (iii) trade accounts payable and other current liabilities of the types described in the Estimated Net Working Capital calculation set
forth on Schedule 2.4 (for the avoidance of doubt excluding (x) Indebtedness and (y) Company Transaction Expenses that are paid pursuant to Section 2.3), the value of which, in the case of clause (ii) and clause
(iii) above, shall be determined, in each case in accordance with the principles, policies, practices, procedures, classifications, judgments and methodologies (A) set forth in the Working Capital Computation Framework described in
Schedule 2.6(a) and (B) used in the Estimated Net Working Capital calculation set forth on Schedule 2.4; 

  
 7 

 “NLRB” — See Section 3.23(b); 

“Non-Business Books and Records” shall mean any books and records or portions thereof, in whatever form, that are not
Business Books and Records; 
 “Non-Compete Agreement” — See Recitals hereto; 

“Notice of Claim” — See Section 7.3(a); 

“Objections Statement” — See Section 2.4(b); 

“Occurrence” — See Section 3.25(b); 

“Owned Real Property” — See Section 3.11(a); 

“O’Leary” — See Section 3.20(l); 

“O’Leary Employment Agreement” — See Section 3.20(l); 

“O’Leary Escrow Amount” — See Section 3.20(l); 

“Parties” shall mean the Buyer, the Seller and the Company; 

“Permitted Liens” shall mean (i) Liens for Taxes or other governmental charges not yet due and payable or which may
hereafter be paid without penalty or which are being contested in good faith for which adequate reserves are maintained, (ii) those matters of record title which do not materially affect the operation of the Owned Real Property, including, but
not limited to, easements, covenants, rights-of-way and other similar restrictions or conditions of record, non-monetary imperfections of title or encumbrances; (iii) landlords, mechanics’, carriers’, warehousemen’s,
workers’ and other similar Liens for sums that are not yet due and payable; (iv) Liens incurred or deposits made in connection with workers’ compensation, unemployment insurance and other types of social security; (v) Liens
arising under original purchase price conditional sales contracts and equipment leases with third parties under which the Company is not in default; (vi) Liens that would be disclosed by an accurate survey of the Leased Real Property, which,
individually or in the aggregate, do not, to the Seller’s Knowledge, materially adversely affect the value or the continued use of the Leased Real Property to which they apply; or (vii) zoning, entitlement, building and other land use
regulations imposed by a Governmental Entity having jurisdiction over the property that are not, to the Seller’s Knowledge, violated by the current use of the existing improvements on the Owned Real Property; 

“Person” shall mean any individual, corporation, partnership, joint venture, association, joint-stock company, trust,
unincorporated organization or Governmental Entity; 
 “Plan” shall mean all (i) “employee benefit plans,”
as defined in Section 3(3) of ERISA, and (ii) other compensation and benefits plans, policies, programs, arrangements and payroll practices, including each multiemployer plan within the meaning of Section 3(37) of ERISA, and each
bonus, incentive, profit-sharing, stock option, stock purchase, other equity-based, employment, vacation or other leave, change in control, retention, severance, collective 

  
 8 

 
bargaining, consulting, employee loan, fringe benefit, deferred compensation and other benefit plans, policies, programs, arrangements and payroll practices, in each case established or
maintained by the Seller or its ERISA Affiliates (including the Company) or which the Seller or its ERISA Affiliates (including the Company) sponsors, maintains, contributes or is obligated to contribute, for the benefit of any Company Employee or
under which the Company has any current or potential Liability; 
 “Post-Closing Period” shall mean any taxable period (or
portion of a Straddle Period) beginning after the Closing Date; 
 “Pre-Closing Tax Period” — See
Section 7.1(c); 
 “Preliminary Closing Statement” — See Section 2.4(b); 

“Prior Period Returns” shall mean Income Tax Returns required to be filed before or after the Closing Date with respect to
the Company for taxable periods ending prior to or on the Closing Date; 
 “Product Liability Lawsuits” — See
Section 3.25(a); 
 “Products” — See Section 3.25(a); 

“Purchase Orders” shall mean all outstanding purchase orders, contracts or other commitments to suppliers of goods and
services for materials, supplies or other items used in the Business; 
 “Reference Time” shall mean 11:59 p.m. New York
City time on the Closing Date; 
 “Release” shall mean any release, spill, emission, discharge, leaking, pumping,
injection, deposit, disposal, dispersal, leaching or migration into the indoor or outdoor environment (including, without limitation, ambient air, surface water, groundwater and surface or subsurface strata) or into or out of any property, including
the movement through or in the air, soil, surface water, groundwater or property; 
 “Remedial Action” — See
Section 7.4(i); 
 “Retrofits” — See Section 3.25(a); 

“Revised Section 338(h)(10) Allocation Schedule” — See Section 2.10(c); 

“Sales Orders” shall mean all sales orders, contracts or other commitments to purchasers of goods and services of the
Business; 
 “Schedule” shall mean the disclosure schedule prepared and delivered by the Seller as of the Closing Date
pursuant to the terms and conditions of this Agreement; 
 “Section 338 Forms” shall mean all returns, documents,
statements, and other forms that are required to be submitted to any federal, state, county or other local Tax authority in connection with 

  
 9 

 
a Section 338(h)(10) Election. Section 338 Forms shall include any “statement of section 338 election” and IRS Form 8023 (together with any schedules or attachments thereto)
that are required pursuant to Treasury Regulation Section 1.338-1, Treasury Regulation Section 1.338-2 or Treasury Regulation Section 1.338(h)(10)-1 or any successor provisions; 

“Section 338(h)(10) Allocation Schedule” — See Section 2.10(c); 

“Section 338(h)(10) Election” shall mean an election described in Section 338(h)(10) of the Code with respect to the
Buyer’s acquisition of the Company pursuant to this Agreement and any analogous provision of state, local or foreign law. Section 338(h)(10) Election shall include any corresponding election under state or local law pursuant to which a
separate election is permissible with respect to the Buyer’s acquisition of the Company pursuant to this Agreement; 

“Securities Act” shall mean the Securities Act of 1933, as amended; 

“Seller” — See Preamble hereto; 

“Seller Event of Breach” — See Section 7.1(b)(i); 

“Seller Indemnified Event” — See Section 7.2(b); 

“Seller Indemnified Parties” — See Section 7.2(a); 

“Seller Plan” shall mean each Plan that is not a Company Plan; 

“Shared Books and Records” shall mean any books and records, in whatever form, containing both Business Books and Records and
Non-Business Books and Records; 
 “Shares” — See Recitals hereto; 

“Stock Purchase” — See Section 2.1; 

“Stored Steel Pipe Inventory” — See Section 6.6; 

“Straddle Period” shall mean any taxable period that includes, but does not end on, the Closing Date; 

“Straddle Period Tax Return” shall mean any Tax Return for a Straddle Period; 

“Subsidiary” shall mean, with respect to the Company, the Buyer or the Seller, as the case may be, any entity, whether
incorporated or unincorporated, of which at least a majority of the securities or ownership interests having by their terms ordinary voting power to elect a majority of the board of directors or other persons performing similar functions is directly
or indirectly owned or controlled by such party or by one or more of its respective Subsidiaries or by such party and any one or more of its respective Subsidiaries; 

“Target Working Capital” means $38,000,000; 

“Tax Proceeding” — See Section 5.6(e); 

  
 10 

 “Tax Return” shall mean any report, return, information return, filing, claim
for refund or other information, including any schedules or attachments thereto, and any amendments to any of the foregoing required to be supplied to a taxing authority in connection with Taxes; 

“Taxes” shall mean all federal, state, local or foreign taxes, including, without limitation, income, gross income, gross
receipts, production, excise, employment, sales, use, transfer, ad valorem, profits, license, capital stock, franchise, severance, stamp, withholding, Social Security, employment, unemployment, disability, worker’s compensation, payroll,
utility, windfall profit, custom duties, personal property, real property, registration, alternative or add-on minimum, estimated and other taxes, governmental fees or like charges of any kind whatsoever, including any interest, penalties or
additions thereto, whether disputed or not; and “Tax” shall mean any one of them; 
 “Third Party Claim”
shall mean any action, suit, claim or proceeding which is asserted or threatened by a Person that is not a party to this Agreement and is not a Buyer Indemnified Party or a Seller Indemnified Party; 

“Trademark License Agreement” — See Recitals hereto; 

“Transfer Taxes” shall mean any sales, use, documentary, stamp, registration, recording, transfer, property, ad valorem or
similar Taxes or fees imposed on the transfer of the Shares as contemplated by this Agreement; 
 “Transition Services
Agreement” — See Recitals hereto; 
 “Working Capital Deficiency” — See Section 2.4(c); 

“Working Capital Escrow Amount” — See Section 7.3(c)(i); and 

“Working Capital Indemnity Amount” — See Section 2.4(c). 

ARTICLE II. 
 SALE AND
PURCHASE 
 Section 2.1. Agreement to Sell and to Purchase. On the Closing Date and upon the terms and subject to the
conditions set forth in this Agreement, the Seller shall sell, assign, transfer, convey and deliver the Shares, free and clear of any Liens, limitations or restrictions (other than restrictions under applicable securities laws), to the Buyer, and
the Buyer shall purchase and accept the Shares from the Seller (the “Stock Purchase”). 
 Section 2.2.
Closing. 
 (a) The closing of the Stock Purchase and the transactions contemplated by this Agreement (the
“Closing”) shall take place at the offices of Willkie Farr & Gallagher LLP, 787 Seventh Avenue, New York, New York 10019, at 10:00 a.m. New York time on the later of (i) the date hereof, (ii) the date on which all
of the closing deliverables set forth in Section 2.2(c) hereof have been delivered or waived or (iii) at such other time and place as the Parties shall agree in writing (the “Closing Date”). 

  
 11 

 (b) At the Closing, the Seller shall assign, convey, transfer and deliver to the Buyer or its
designee, and the Buyer or its designee shall acquire, accept and receive from the Seller, stock certificates representing the Shares, either duly endorsed in blank for transfer or accompanied by appropriate stock powers duly executed in blank in
exchange for the payment of the Closing Purchase Price as provided in Section 2.3 hereof. The Buyer shall have no obligation to purchase any Shares unless all of the Shares are to be sold and delivered on the Closing Date. 

(c) At the Closing: 

(i) the Buyer shall deliver to the Seller, the Escrow Agreement, the Non-Compete Agreement, the Trademark License Agreement,
the Transition Services Agreement and the Assignment and Assumption Agreement, each of which are executed by the Buyer; 

(ii) the Seller shall deliver or cause to be delivered to the Buyer the Escrow Agreement, the Non-Compete Agreement, the
Trademark License Agreement, the Transition Services Agreement and the Assignment and Assumption Agreement, each of which are executed by the Seller; 

(iii) the Seller shall deliver or cause to be delivered to the Buyer the written resignations of the directors of the Company
from their positions as directors of the Company; 
 (iv) the Seller shall deliver to the Buyer evidence that the Affiliate
Contracts set forth on Schedule 3.22 (other than the sales orders listed in section (b) of Schedule 3.22, which will survive the Closing) have been terminated as of immediately prior to the Closing without any Liability to the
Buyer, and that the Intercompany Receivables and Intercompany Payables set forth on Schedule 3.22 (other than the sales orders listed in section (b) of Schedule 3.22) have been settled, discharged, offset, paid or repaid; 

(v) the Seller shall deliver to the Buyer evidence that all of the Liens on assets or properties of the Company securing
Indebtedness of the Seller set forth on Schedule 2.2(c)(v) will be released or otherwise satisfied upon the delivery of the Closing Purchase Price; 

(vi) the Seller shall deliver to the Buyer the Business Books and Records (including the original stock transfer book and
corporate minute books of the Company); 
 (vii) the Seller shall deliver to the Buyer the FIRPTA Affidavit; 

(viii) the Seller shall deliver to the Buyer a certificate from the Secretary of State of the State of Delaware for the Seller
and the Virginia State Corporation 

  
 12 

 
Commission for the Company, dated no earlier than five (5) Business Days prior to the Closing Date, as to the good standing and legal existence of each of the Seller and the Company,
respectively; 
 (ix) the Seller shall deliver to the Buyer certificates of the Secretary of the Seller: (i) attaching a
duly adopted resolution of the Board of Directors of the Seller in connection with the authorization and approval of the execution, delivery and performance by the Seller of this Agreement, the Escrow Agreement, the Non-Compete Agreement, the
Transition Services Agreement, the Trademark License Agreement and the Assignment and Assumption Agreement; and (ii) setting forth the incumbency of the officers of the Seller who have executed and delivered this Agreement, the Escrow
Agreement, the Non-Compete Agreement, the Transition Services Agreement, the Trademark License Agreement or the Assignment and Assumption Agreement, including therein a signature specimen of each such officer or officers, in form and substance
reasonably satisfactory to the Buyer; 
 (x) the Seller shall deliver to the Buyer a signed copy of Form 8023 as prepared by
the Buyer to effect the Section 338(h)(10) Election; 
 (xi) the Seller shall deliver to the Buyer a digital video disc
(DVD), portable hard drive or other standard electronic medium containing the complete contents of the Data Room as of 11:59 p.m. on the day immediately preceding the Closing Date, together with an index of the contents thereof; and 

(xii) the Buyer shall deliver to the Seller a certificate of the Secretary of the Buyer: (i) attaching a duly adopted
resolution of the Board of Directors of the Buyer in connection with the authorization and approval of the execution, delivery and performance by the Buyer of this Agreement, the Escrow Agreement, the Non-Compete Agreement, the Transition Services
Agreement, the Trademark License Agreement and the Assignment and Assumption Agreement; and (ii) setting forth the incumbency of the officers of the Buyer who have executed and delivered this Agreement, the Escrow Agreement, the Non-Compete
Agreement, the Transition Services Agreement, the Trademark License Agreement or the Assignment and Assumption Agreement, including therein a signature specimen of each such officer or officers, in form and substance reasonably satisfactory to the
Seller. 
 Section 2.3. Purchase Price; Company Transaction Expenses. At the Closing, the Buyer agrees to pay (x) to
the Seller or its designee an aggregate amount in cash equal to the Closing Purchase Price, payable by wire transfer in immediately available funds to the bank account as designated in writing by the Seller and (y) the Escrow Amount by wire
transfer in immediately available funds to the Escrow Account in accordance with the terms of the Escrow Agreement. At the Closing, the Seller shall, on behalf of the Company, pay the Company Transaction Expenses by wire transfer of immediately
available funds as directed by the Seller. 

  
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 Section 2.4. Purchase Price Adjustments. 

(a) Schedule 2.4 sets forth the Seller’s good faith estimate of the Net Working Capital (the “Estimated Net Working
Capital”) as of September 30, 2013, together with a calculation of the Closing Purchase Price based on such estimate. The Estimated Net Working Capital shall be determined in accordance with Section 2.6 and the other terms
of this Agreement. 
 (b) As promptly as possible, but in any event within forty five (45) days after the Closing Date, the Buyer will
deliver to the Seller a balance sheet of the Company (the “Closing Balance Sheet”) and a statement showing the calculation of the Net Working Capital derived from the Closing Balance Sheet (together with the Closing Balance Sheet,
the “Preliminary Closing Statement”), in each case as of the Reference Time. The Closing Balance Sheet shall be prepared, and the Net Working Capital and the Preliminary Closing Statement shall be determined, in accordance with
Section 2.6 and the definitions and other terms set forth in this Agreement. The Preliminary Closing Statement shall contain line item detail comparable to the Balance Sheet with respect to the components of Net Working Capital of the
Company as of the Reference Time. After delivery of the Preliminary Closing Statement, the Buyer shall give the Seller and its accountants and representatives reasonable access at reasonable times to review the Company’s books and records and
work papers related to the preparation of the Preliminary Closing Statement subject to customary confidentiality restrictions. The Seller and its accountants and representatives may make inquiries of the Buyer and its accountants regarding questions
concerning or disagreements with the Preliminary Closing Statement arising in the course of its review thereof, and the Buyer shall use its commercially reasonable efforts to cause any such accountants to cooperate with and respond to such
inquiries. If the Seller has any objections to the Preliminary Closing Statement, the Seller shall deliver to the Buyer a statement setting forth its objections thereto (an “Objections Statement”). If an Objections Statement is not
delivered by the Seller to the Buyer within twenty (20) days after delivery of the Preliminary Closing Statement, the Preliminary Closing Statement shall be final, binding and non-appealable by the Parties hereto. The Seller and the Buyer shall
negotiate in good faith to resolve any such objections for fifteen (15) days after the delivery of the Objections Statement, but if they do not reach a final resolution, the Seller and the Buyer shall submit such dispute to
PricewaterhouseCoopers, or if they are not independent pursuant to the rules and regulations of the Securities and Exchange Commission at the time, another nationally recognized independent accounting firm reasonably acceptable to the Buyer and the
Seller (the “Dispute Resolution Firm”) within three (3) Business Days following the end of the fifteen (15)-day period from the date of the delivery of the Objections Statement. Any further submissions to the Dispute Resolution
Firm must be written and delivered to each party to the dispute. The Dispute Resolution Firm shall consider work papers and other documents and information related to those items and amounts which are identified in the Objections Statement as being
items which the Seller and the Buyer are unable to resolve. The Dispute Resolution Firm’s determination will be based on the definition of Net Working Capital and the other definitions and terms contained herein and shall be in amounts between
the disputed amounts set forth in the Preliminary Closing Statement and the Objections Statement. The Seller and the Buyer shall use their commercially reasonable efforts to cause the Dispute Resolution Firm to resolve all disagreements as soon as
practicable and in any event within thirty (30) days after the submission of any dispute. Further, the Dispute Resolution Firm’s determination shall be based solely on the presentations by the

  
 14 

 
Buyer and the Seller which are in accordance with the terms and procedures set forth in this Agreement (i.e., not on the basis of an independent review). The resolution of the dispute by the
Dispute Resolution Firm shall be, absent manifest error, final, binding and non-appealable on the Parties hereto. The costs and expenses of the Dispute Resolution Firm shall be allocated fifty percent (50%) to the Buyer and fifty percent
(50%) to the Seller. 
 (c) If the Net Working Capital as finally determined pursuant to Section 2.4(b) above is greater
than the Target Working Capital, the Buyer shall promptly pay to the Seller the amount of such excess in cash. If the Net Working Capital as finally determined pursuant to Section 2.4(b) above is less than the Target Working Capital
(such amount, the “Working Capital Deficiency”), the Seller and the Buyer shall promptly cause an amount equal to the Working Capital Deficiency to be paid to the Buyer from the Working Capital Escrow Amount; provided,
however, that if the Working Capital Deficiency is in excess of the Working Capital Escrow Amount (such excess amount, the “Working Capital Indemnity Amount”), then the Buyer may elect to seek indemnification for the Working
Capital Indemnity Amount either (i) from the Indemnity Escrow Amount or (ii) directly from the Seller. The net adjustment amount payable to the Seller or the Buyer under this Section 2.4(c) (such amount, the “Net
Adjustment Amount”) shall be paid in accordance with Section 2.5. 
 Section 2.5. Post-Closing Adjustment
Payment. The Buyer shall promptly (but in any event within five (5) Business Days) deliver to the Seller or its designee any Net Adjustment Amount determined pursuant to Section 2.4(c) to be due by the Buyer by wire transfer
of immediately available funds to an account or accounts designated by the Seller. The Seller and the Buyer shall promptly (but in any event within five (5) Business Days) deliver joint instructions to the Escrow Agent instructing the Escrow
Agent to pay from the Escrow Account to an account or accounts designated by (i) the Buyer an amount equal to any Net Adjustment Amount determined pursuant to Section 2.4(c) to be due by the Seller to the Buyer (other than any
Working Capital Indemnity Amount for which the Buyer elects to seek indemnification directly from the Seller pursuant to Section 2.4(c)) and (ii) the Seller the Working Capital Escrow Amount less any amount paid to the Buyer
pursuant to clause (i) (or, if such difference is less than zero, zero dollars) in accordance with the terms of the Escrow Agreement. 

Section 2.6. Accounting Procedures. The Estimated Net Working Capital, the Closing Balance Sheet, the Preliminary Closing
Statement and the determinations and calculations contained therein shall be prepared and calculated in accordance with the principles, policies, practices, procedures, classifications, judgments and methodologies (A) set forth in the Working
Capital Computation Framework described in Schedule 2.6(a) and (B) used in the sample inventory calculation set forth in Schedule 2.6(b). 

Section 2.7. Excluded Assets; Excluded Liabilities. Schedule 2.7 sets forth a list of assets (together with the
assets owned by the Seller or any of the Seller’s Affiliates (other than the Company) which such person will utilize under the Transition Services Agreement and trademarks owned or licensed by the Seller under the Trademark License Agreement,
the “Excluded Assets”) and Liabilities (the “Excluded Liabilities”) that are excluded from the Stock Purchase. To the extent not completed prior to the Closing Date, the Buyer and the Seller shall, and the Buyer
shall cause the Company to, take all actions reasonably necessary, including the execution and delivery of such documentation reasonably acceptable to the Buyer and the Seller, 

  
 15 

 
to transfer any and all such Excluded Assets and Excluded Liabilities to the Seller or any of its Affiliates (other than the Company) so as to ensure the Buyer (and the Company) shall not assume
or be obligated to satisfy any Excluded Asset or Excluded Liability following the Closing and the Seller shall have the benefit of all such Excluded Assets. 

Section 2.8. Withholding Rights. The Buyer shall be entitled to deduct and withhold from the Closing Purchase Price
otherwise payable pursuant to this Agreement such amounts as the Buyer is required to deduct and withhold with respect to the making of such payment under the Code, or any provision of state, local or foreign tax law. To the extent that amounts are
so deducted and withheld by the Buyer, such withheld amounts shall be treated for all purposes of this Agreement as having been paid as Closing Purchase Price. 

Section 2.9. FIRPTA. The Seller shall deliver to the Buyer an affidavit from the Seller, under penalties of perjury,
stating that the Seller is not a foreign person within the meaning of Section 1445 of the Code (the “FIRPTA Affidavit”). 

Section 2.10. Section 338 Election. 

(a) With respect to the sale of the Company, the Buyer and the Seller shall jointly make a Section 338(h)(10) Election in accordance with
applicable laws and as set forth herein. The Buyer and the Seller shall cooperate with each other and take all necessary steps to properly make a Section 338(h)(10) Election in accordance with applicable laws. The Buyer and the Seller agree to
cooperate in good faith with each other in the preparation and timely filing of the Section 338 Forms and any Tax Returns required to be filed in connection with the making of such an election, including the exchange of information and the
joint preparation and filing of Form 8023 and related schedules. The Buyer and the Seller agree to report the transfers under this Agreement consistent with such elections and shall take no position contrary thereto unless required to do so by
applicable tax law. 
 (b) The Buyer shall be responsible for the preparation and filing of all Section 338 Forms in accordance with
applicable laws and the terms of this Agreement and shall deliver such Section 338 Forms to the Seller at least thirty (30) days prior to the date such Section 338 Forms are required to be filed. The Seller shall have the opportunity
to review and approve such documents or forms (such approval not to be unreasonably withheld or delayed) and once approved, execute and deliver to the Buyer such documents or forms (including executed Section 338 Forms) as are required by any
laws in order to properly complete the Section 338 Forms within ten (10) days of delivery by the Buyer. The Seller shall provide the Buyer with such information as the Buyer reasonably requests in order to prepare the Section 338
Forms within thirty (30) days of the Buyer’s request for such information. 
 (c) The aggregate consideration payable under this
Agreement (as adjusted pursuant to Section 2.4), Liabilities of the Company and other relevant items shall be allocated in accordance with Section 338(b)(5) of the Code and the Treasury Regulations thereunder. The Buyer shall
prepare such allocation (the “Section 338(h)(10) Allocation Schedule”) and shall deliver the Section 338(h)(10) Allocation Schedule to the Seller within five (5) days after the final determination of Net Working Capital
pursuant to Section 2.4. Thereafter, the Buyer shall provide the Seller from time to time a revised Section 338(h)(10) Allocation Schedule (“Revised  

  
 16 

 
Section 338(h)(10) Allocation Schedule”), so as to report any matter on the Section 338(h)(10) Allocation Schedule that needs updating (including any adjustments to the
purchase price). Any such Revised Section 338(h)(10) Allocation Schedule shall be prepared by the Buyer in accordance with the provisions of Section 338 of the Code and the Treasury Regulations thereunder. The Seller shall have the right
to review the Section 338(h)(10) Allocation Schedule and the Revised Section 338(h)(10) Allocation Schedule. 
 (d) If the Seller
disagrees with respect to any item in the Section 338(h)(10) Allocation Schedule or Revised Section 338(h)(10) Allocation Schedule, the Parties shall negotiate in good faith to resolve the dispute. If they cannot resolve the dispute within
ten (10) days, any such dispute shall be submitted to the Dispute Resolution Firm for resolution, which resolution shall be final and binding upon the Parties. The fees and expenses of the Dispute Resolution Firm in connection with its review
and resolution of the dispute shall be allocated in accordance with Section 2.4(a) hereof. The Buyer and the Seller shall each provide to the other for review a copy of its IRS Form 8883 at least ten (10) Business Days prior to its
submission to the IRS. 
 ARTICLE III. 

REPRESENTATIONS AND WARRANTIES OF THE SELLER 

The Seller hereby represents and warrants to the Buyer as follows: 

Section 3.1. Corporate Organization. The Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Virginia. The Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. Each of the Company and the Seller has all requisite corporate power and authority to
own or lease its properties and assets and to conduct the Business as currently conducted. Copies of the Certificate of Incorporation and By-Laws of each of the Company and the Seller, with all amendments thereto to the date hereof, have been
furnished to the Buyer or its representatives, and such copies are accurate and complete. 
 Section 3.2. Qualification to
Do Business; Authorization and Validity of Agreement. The Company is duly qualified to do business as a foreign corporation and is in good standing in every jurisdiction in which the character of the properties and assets owned or leased by
it or the nature of the business conducted by it makes such qualification necessary, except where the failure to do so would not result in a Business Material Adverse Effect. Schedule 3.2 sets forth all jurisdictions in which the Company is
qualified to do business. The Seller has all requisite corporate power and authority to enter into this Agreement and to carry out its obligations hereunder. The execution and delivery by the Seller of this Agreement and the performance of its
obligations hereunder have been duly authorized by all necessary corporate action by the Board of Directors of the Seller and no other corporate proceedings on the part of the Seller are necessary to authorize such execution, delivery and
performance. This Agreement has been duly executed by the Seller and, assuming the due authorization, execution and delivery of this Agreement by the Buyer, constitutes the valid and binding obligation of the Seller, enforceable against the Seller
in accordance with its terms, except that the enforceability of this Agreement is subject to applicable bankruptcy, insolvency or other similar laws relating to or affecting the enforcement of creditors’ rights generally and to general
principles of equity regardless of whether enforcement is considered in a proceeding in equity or at law. 

  
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 Section 3.3. No Conflict or Violation. Except as set forth on Schedule
3.3, the execution, delivery and performance by the Seller of this Agreement does not, and the Stock Purchase and the transactions contemplated in this Agreement or in any related document will not, (i) violate or conflict with any
provision of the Certificate of Incorporation or By-Laws of the Company or the Seller, (ii) violate any provision of applicable law or regulation, or any order, judgment or decree of any court or other governmental or regulatory authority by
which the Seller or the Company is bound, (iii) violate or result in a breach of or constitute (with due notice or lapse of time or both) a default under any contract, lease, loan agreement, mortgage, security agreement, trust indenture or
other agreement or instrument to which the Company, the Seller or any of their respective controlled Affiliates is a party or by which any of them is bound or to which any of their respective properties or assets is subject, (iv) result in the
creation or imposition of any Lien upon any of the assets, properties or rights of the Company or the Seller, or (v) result in the cancellation, modification, revocation or suspension of any of the Licenses and Permits or the Environmental
Permits, other than, in the case of (iii), (iv) and (v) above, any such conflicts, violations, defaults, rights, Liens, Licenses, Permits or Environmental Permits that, individually or in the aggregate, would not result in a Business
Material Adverse Effect. 
 Section 3.4. Consents and Approvals. Schedule 3.4 sets forth a true and
complete list of each consent, notice, waiver, authorization or approval of or to any Governmental Entity, or of any other Person, and each declaration to or filing or registration with any such Governmental Entity, that is required in connection
with the execution and delivery of this Agreement by the Seller or the performance by the Seller of its obligations hereunder, except where the failure to obtain any such consent, waiver, authorization or approval or to make such declaration of
filing would not be material to the Business. The execution, delivery and performance of this Agreement by the Seller does not require the consent or approval of, or filing with, any Governmental Entity or any other Person, including the filing of a
pre-merger notification report under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended (the “HSR Act”). 

Section 3.5. Capital Stock and Related Matters. As of the date hereof, the authorized capital stock of the Company consists
of 4,000 shares of Company Common Stock, of which 2,010 shares are issued and outstanding. The issued and outstanding capital stock of the Company consists exclusively of the Shares and, upon the consummation of the Stock Purchase, the Buyer will
own all of the issued and outstanding capital stock of the Company. Schedule 3.5 sets forth the names of the beneficial and record owners of the Company Common Stock and the number of shares held by each such owner. The Seller has good and
marketable title, free and clear of any Liens, to all of the Company Common Stock set forth on Schedule 3.5. The sale and transfer of the Shares by the Seller to the Buyer will vest title to the Shares in the Buyer free and clear of any
Liens, limitations or restrictions of any nature whatsoever (other than restrictions under applicable securities laws and other than Liens on the Shares granted by the Buyer to third parties on or after the Closing Date). The Company Common Stock
has been duly authorized and validly issued and is fully paid and nonassessable. Except as set forth above or on Schedule 3.5, no shares of Company Common Stock are outstanding; the Company does not have outstanding any securities convertible
into or exchangeable for any shares of capital stock, any 

  
 18 

 
rights to subscribe for or to purchase or any options for the purchase of, or any agreements providing for the issuance (contingent or otherwise) of, or any calls, commitments or claims of any
other character relating to the issuance of, any capital stock, or any stock or securities convertible into or exchangeable for any capital stock; and the Company is not subject to any obligation (contingent or otherwise) to repurchase or otherwise
acquire or retire, or to register under the Securities Act, any shares of capital stock. The Company does not have outstanding any bonds, debentures, notes or other obligations the holders of which have the right to vote (or convertible into or
exercisable for securities having the right to vote) with the stockholders of the Company on any matter. There are no capital appreciation rights, phantom stock plans, securities with participation rights or features or similar obligations and
commitments of the Company. There are no voting trusts, stockholder agreements, proxies or other similar agreements or understandings to which the Seller or the Company is a party or by which the Seller or the Company is bound with respect to the
voting or transfer of the Shares and there are no contractual obligations or commitments of any character restricting the transfer of, or requiring the registration for sale of, the Shares. 

Section 3.6. Subsidiaries and Equity Investments. The Company has no Subsidiaries. Except as set forth on
Schedule 3.6, the Company does not directly or indirectly own any interest in any other corporation, partnership, joint venture or other business association, entity or Person. 

Section 3.7. Financial Statements. 

(a) The Company has heretofore furnished to the Buyer copies of (i) the unaudited balance sheets of the Company as of August 31,
2011 and 2012, together with the related unaudited statements of operations and cash flows for the fiscal years then ended and (ii) the unaudited balance sheet of the Company as of July 31, 2013, together with the related unaudited
statements of operations and cash flows for each of the months in the period commencing September 1, 2012 and ending July 31, 2013 (collectively, the “Financial Statements”). The Financial Statements (i) were prepared
in accordance with GAAP applied on a consistent basis throughout the periods covered thereby, (ii) present fairly the financial position, results of operations and cash flows of the Company as of such dates and for the periods then ended,
(iii) are prepared in accordance with the books of account and records of the Company, (iv) can be reconciled with the financial statements and the financial records maintained and the accounting methods applied by the Seller and
(v) can be reconciled with the Seller’s audited balance sheets and statements of operations for each of the twelve-month periods ended August 31, 2011 and 2012. 

(b) The Company has devised and maintains systems of internal controls over financial reporting to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Such accounting controls of the Company are, and for the past three (3) completed fiscal years of the Company have
been, sufficient, in all material respects, to provide reasonable assurances that (i) all material transactions are executed in accordance with management’s general or specific authorization and are properly reflected in the Company’s
financial statements under GAAP, and (ii) all material transactions are recorded as necessary to permit the accurate preparation of financial statements in accordance with the accounting principles, methods and practices used in preparing the
Seller’s audited financial statements, applied on a consistent basis and in accordance with GAAP. 

  
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 (c) The Company has no Indebtedness. 

Section 3.8. Absence of Certain Changes or Events. 

(a) Except as set forth on Schedule 3.8, since July 31, 2013, there has not been: 

(i) any event that has had or could reasonably be expected to have a Business Material Adverse Effect; 

(ii) any material loss, damage, destruction or other casualty to the assets or properties of the Company or the Business; 

(iii) any change in any method of accounting or accounting practice of the Company; 

(iv) any adoption of any new employee benefit plan, policy, program or arrangement, or amendment of any employee benefit plan
in a way that would serve to materially increase the benefits payable to any Company Employee thereunder; 
 (v) any entry
into, or material amendment of, any collective bargaining agreement or similar labor contract; 
 (vi) any institution of any
pending or threatened action, claim, complaint, proceeding, suit or investigation which relates to the Stock Purchase and the transactions contemplated hereby or that has had or could reasonably be expected to be material to the Business; or 

(vii) any loss of the employment, services or benefits of any supplier or customer of the Company or the Business accounting
for $500,000 or more of the Company’s expenses (in the case of suppliers) or revenues (in the case of customers). 
 (b) Since
July 31, 2013, the Company has operated the Business in the ordinary course consistent with past practice and, except as set forth on Schedule 3.8 hereto, has not: 

(i) failed to discharge or satisfy any Lien or pay or satisfy any obligation or liability (whether absolute, accrued,
contingent or otherwise), other than liabilities being contested in good faith and for which adequate reserves have been provided and Liens arising in the ordinary course of business that do not, individually or in the aggregate, interfere with the
use, operation, enjoyment or marketability of any of its assets, properties or rights; 
 (ii) mortgaged, pledged or
subjected to any Lien any of its assets, properties or rights, except for Permitted Liens; 

  
 20 

 (iii) sold or transferred any of its material assets or canceled any debts or
claims or waived any rights, except in the ordinary course of business consistent with past practice; 
 (iv) disposed of any
patents, trademarks or copyrights or any patent, trademark or copyright applications; 
 (v) defaulted on any material
obligation having a value in excess of $100,000; 
 (vi) entered into any transaction material to the Business, except in the
ordinary course of business consistent with past practice; 
 (vii) written down the value of any material amount of
inventory or written off as uncollectible any material amount of its accounts receivable or any portion thereof not reflected in the Balance Sheet; 

(viii) granted any increase in the compensation or benefits of its employees other than increases in accordance with past
practice or entered into any employment or severance agreement or arrangement with any of them other than severance arrangements entered into in the ordinary course of business providing for payments of less than $100,000; 

(ix) made any capital expenditure in excess of $50,000, or additions to property, plant and equipment used in its operations
other than ordinary repairs and maintenance; 
 (x) incurred any obligation or liability for the payment of severance
benefits, except in the ordinary course of business consistent with past practice; 
 (xi) declared, paid, or set aside for
payment any dividend or other distribution in respect of shares of its capital stock or other securities, or redeemed, purchased or otherwise acquired, directly or indirectly, any shares of its capital stock or other securities, or agreed to do so;

 (xii) entered into any agreement that is material to the Business to settle any pending or threatened claim in any
jurisdiction; or 
 (xiii) entered into any agreement or made any commitment to do any of the foregoing. 

Section 3.9. Tax Matters. Except as disclosed on Schedule 3.9, (i) the Seller has filed, or caused to be filed,
in a timely manner (with any applicable extension periods) all Tax Returns of a material nature required to be filed with respect to the Company and has paid all material Taxes due or required to be paid or withheld and deposited by the Company in
respect of the periods covered by such Tax Returns; (ii) the information contained in such Tax Returns is true, complete and accurate in all material respects; (iii) Taxes of the Company for periods ending on or before the Closing Date as
reflected on such Tax Returns, have been paid; 

  
 21 

 
(iv) there is no action, suit, proceeding, investigation audit or claim of which the Company or the Seller has been informed now pending against, or with respect to, the Company in respect of any
Tax or assessment, nor, to the Knowledge of the Company or the Seller, is there any claim for additional Tax asserted by any Tax authority; (v) any material liability of the Company for Taxes that are not yet due and payable, or which are being
contested in good faith, have been provided for in the financial statements of the Company; (vi) to the Knowledge of the Company or the Seller, since January 1, 2005, no claim has been made by any Tax authority in a jurisdiction where the
Company does not currently file a Tax Return that either it is or may be subject to Tax by such jurisdiction, nor to the Knowledge of the Company or the Seller, is any such assertion threatened; (vii) there is no outstanding request for any
extension of time within which to pay any Taxes or file any Tax Returns; (viii) there has been no waiver or extension of any applicable statute of limitations for the assessment or collection of any Taxes of the Company; (ix) there are no
Liens for Taxes (other than Taxes not yet due and payable) upon any of the assets of the Company; (x) the Company is not a party to any agreement, whether written or unwritten, providing for the payment of Taxes, payment for Tax losses,
entitlements to refunds or similar Tax matters; (xi) no ruling with respect to Taxes (other than a request for determination of the status of a qualified pension plan) has been requested by or on behalf of the Company; (xii) the Company
has withheld and paid all material Taxes required to be withheld in connection with any amounts paid or owing to any employee, creditor or other third party; (xiii) to the Knowledge of the Company and the Seller, the Company (A) has never
been the parent or a member of an affiliated group filing a consolidated federal income Tax Return other than an affiliated group of which the Seller is the parent or (B) has any liability for the Taxes of any Person, other than the Seller or a
member of an affiliated group of which Seller is the common parent, under Reg. section 1.1502-6 (or any similar provision of state, local, or foreign law), as a transferee or successor, by contract, or otherwise; (xiv) the Company will not be
required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any: (A) change in method of accounting for a taxable
period ending on or prior to the Closing Date; (B) “closing agreement” as described in Section 7121 of the Code (or any corresponding or similar provision of state, local or foreign income Tax law) executed on or prior to the
Closing Date; (C) installment sale or open transaction disposition made on or prior to the Closing Date; or (D) prepaid amount received on or prior to the Closing Date; (xv) the Company has not distributed stock of another Person, or
has had its stock distributed by another Person, in a transaction that was purported or intended to be governed in whole or in part by Section 355 or Section 361 of the Code; and (xvi) the Company has not engaged in any reportable
transaction within the meaning of Section 6111 or 6112 of the Code. 
 Section 3.10. Absence of Undisclosed
Liabilities. Except as set forth on Schedule 3.10, the Company has no Indebtedness or Liability, absolute or contingent, except for Indebtedness or Liabilities (i) reflected in the latest balance sheet included in the
Financial Statements (the “Balance Sheet”), (ii) that were incurred since the date of the Balance Sheet in the ordinary course of business and consistent with past practice or (iii) that would not have a Business Material
Adverse Effect. 

  
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 Section 3.11. Owned Real Property. 

(a) Schedule 3.11 sets forth a complete and accurate description of all real property owned by the Company (the “Owned Real
Property”). 
 (b) The Company has good and indefeasible fee simple title to the Owned Real Property. The Owned Real Property is
not subject to any Liens (other than Permitted Liens). Except as set forth on Schedule 3.11, the Company has not granted any lease, license or other agreement granting to any Person or entity any right to the use or occupancy of the Owned
Real Property or any portion thereof. 
 (c) The Seller has not received written notice of any unremedied violation of and, to the
Seller’s Knowledge, the Owned Real Property and all improvements on the Owned Real Property and the operations therein conducted conform to and comply with all applicable health, fire, safety, zoning and building laws, ordinances and
administrative regulations, Licenses and Permits and other regulations (including, without limitation, the Americans with Disabilities Act) and all covenants, easements, rights of way, licenses, grants, building or use restrictions, exceptions,
encroachments, reservations or other impediments, except for possible nonconforming uses or violations that would not be material to the Business, and that do not and will not give rise to any penalty, fine or other liability. 

(d) To the Seller’s Knowledge, the buildings, driveways and all other structures and improvements upon the Owned Real Property are all
within the boundary lines of such property or have the benefit of valid, perpetual and non-terminable easements and there are no encroachments thereon that would materially affect the use thereof. 

(e) The Company has not received any written notice from any utility company or municipality of any fact or condition which could result in
the discontinuation of presently available or otherwise necessary sewer, water, electric, gas, telephone or other utilities or services for any of the Owned Real Property. To the Seller’s Knowledge all public utilities required for the
operation of the Owned Real Property and necessary for the conduct of the Business are properly installed and operating. 
 (f) Neither the
Company nor the Seller has received any written notice of, any pending or contemplated (i) rezoning, condemnation or other similar proceeding affecting the Owned Real Property; or (ii) special assessment against the Owned Real Property.

 (g) To the Seller’s Knowledge, (i) each parcel of real property comprising any part of the Owned Real Property, including
without limitation all buildings and improvements thereon, and the present use, operation or condition thereof (a) is assessed as one or more separate tax lots and no part of such property is part of a tax lot which includes other property
which is not a part of the Owned Real Property; and (b) is not subject to any purchase option, right of first refusal or first offer or other similar right; and (ii) all buildings and improvements located on the Owned Real Property are
located outside of any designated 100 year flood zone. 
 (h) To the Seller’s Knowledge, the Owned Real Property and all buildings,
structures, improvements and fixtures located on the Owned Real Property have been maintained in accordance with normal industry practice, are in good operating condition and repair (subject to normal wear and tear) and are suitable for the purposes
for which they are currently used. 

  
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 (i) To the Seller’s Knowledge, and to the extent in Seller’s possession and control,
true and complete copies of all existing policies of title insurance for all parcels of the Owned Real Property, together with all surveys for all parcels of the Owned Real Property, have been delivered to the Buyer and are identified on Schedule
3.11. 
 (j) To the Seller’s Knowledge, access from public streets and provision for parking and loading/unloading at each parcel
of the Owned Real Property conforms to all applicable legal requirements and is adequate for the conduct of the Business in the ordinary course. 

Section 3.12. Leases. 

(a) Schedule 3.12 sets forth a list of all leases, licenses, permits, subleases and occupancy agreements, together with all amendments
and supplements thereto, with respect to all real property in which the Company has a leasehold interest, whether as lessor, sublessor, licensor, lessee, sublessee or licensee (each, a “Lease” and collectively, the
“Leases”; the property covered by Leases under which the Company is a lessee is referred to herein as the “Leased Real Property”). The Seller has furnished true, correct and complete copies of all Leases in
Seller’s possession or control to the Buyer or its representatives. No option has been exercised under any of such Leases, except options whose exercise has been evidenced by a written document, a true, complete and accurate copy of which has
been delivered to the Buyer or its representatives with the corresponding Lease. 
 (b) Each Lease is in full force and effect and is valid,
binding and enforceable in accordance with its respective terms and no Lease has been modified or amended except pursuant to an amendment referred to on Schedule 3.12. To Seller’s Knowledge, neither the Company nor any other party to a
Lease has given to the other party written notice of or has made a claim with respect to any material breach or default of or with respect to any Lease which remains uncured. The Company is not in default of any material obligation of Seller under
any Lease and no other party to a Lease is in material default of its obligations thereunder. 
 (c) Except as set forth on Schedule
3.12, none of the Leased Real Property is subject to any sublease, license or other agreement to which the Company or the Seller is a party granting to any Person or entity any right to the use, occupancy or enjoyment of such property or any
portion thereof. To the Seller’s Knowledge, the Leased Real Property, all improvements thereon and thereto owned by Seller, and the operations therein conducted by Seller conform to and comply with all applicable health, fire, insurance,
safety, zoning and building laws, ordinances and administrative regulations, Licenses and Permits and other regulations (including, without limitation, the Americans with Disabilities Act) and all covenants, easements, rights of way, licenses,
grants, building or use restrictions, exceptions, encroachments, reservations or other impediments, except for possible nonconforming uses or violations that have not and would not result in a Business Material Adverse Effect, and that do not and
will not give rise to any penalty, fine or other liability, and neither the Company nor the Seller have received any written notice from any governmental entity to the contrary which remains uncured. 

  
 24 

 (d) To the Seller’s Knowledge, the Leased Real Property has been maintained in accordance
with normal industry practice, is in good operating condition and repair (subject to normal wear and tear) and is suitable for the purposes for which it is currently used. 

(e) There are no guaranties (from the Company or from other Persons) in favor of the lessors of any of the Leased Real Property. 

(f) Except as set forth on Schedule 3.12, the Company has not sold, assigned, transferred, pledged or encumbered all or any part of its
leasehold interests in the Leased Real Property. 
 (g) No security deposits are currently held by Seller or otherwise owed to the tenants
under the Leases. 
 Section 3.13. Assets of the Company. 

(a) Except as set forth on Schedule 3.13 and the Excluded Assets, the Company owns or leases all of the assets, properties and other
rights reasonably required for the conduct of the Business as currently conducted. The Company has no Liabilities other than those relating to the Business as currently conducted. 

(b) There are no material assets, properties, rights or interests of any kind or nature (other than the Excluded Assets and the assets set
forth on Schedule 3.13) that the Company has been using, holding or operating in its Business prior to the Closing that will not be used, held or owned by the Company immediately following the Closing. 

(c) Except as set forth on Schedule 3.13, the Company and the Seller hold, and as of the Closing, the Buyer or the Company will hold
good and marketable title to or valid leases, licenses or rights to use the assets, properties and rights of the Business (other than the Excluded Assets), free and clear of any Liens, except for Permitted Liens and Liens granted by the Buyer to
third parties on the Closing Date. 
 (d) The assets, properties, rights and interests of the Company and the rights, licenses and services
to be made available by the Seller and its Affiliates pursuant to the Transition Services Agreement, comprise all of the assets, properties, rights, interests and services that are reasonably required for the conduct of the Business by the Buyer and
its Affiliates after the Closing as now being conducted by the Seller. 
 (e) Since January 1, 2010, there has not been any material
interruption in the operations of the Business due to inadequate maintenance of or damage to any asset. 
 (f) The Equipment and Machinery
is in good operating condition and repair (normal wear and tear excepted). 
 Section 3.14. Intellectual Property.
Schedule 3.14 sets forth a complete and correct listing of all Intellectual Property applications to register, registrations and patents owned by the Company. The Company owns all right, title and interest in or to, or has a valid right or
license to use, in all jurisdictions in which it carries on business, all Intellectual Property material 

  
 25 

 
to the Business, to the Knowledge of the Company and the Seller, without violating or conflicting with the rights of any other Person. Except as set forth on Schedule 3.14(a), all
Intellectual Property owned exclusively by the Company is free and clear of all Liens, except for Permitted Liens. Neither the Company nor the Seller has received a written threat of any claim that the holder of such Intellectual Property is in
violation or infringement of any service mark, patent, trademark, trade name, trademark or trade name registration, copyright or copyright registration of any other Person, and, to the Knowledge of the Company or the Seller, no situation exists
which would give rise to such a claim. The Stock Purchase and the consummation of the transactions contemplated by this Agreement will not prohibit the Company, the Buyer or any of their respective controlled Affiliates from using any of the
Intellectual Property in the manner currently used by the Company. 
 Section 3.15. Licenses and Permits.
Schedule 3.15 sets forth a true and complete list of all licenses, permits, franchises, authorizations and approvals issued or granted to the Company by any Governmental Entity that are material to the Business (the
“Licenses and Permits”), and all pending applications therefor. Each License and Permit has been duly obtained, is valid and in full force and effect, and is not subject to any pending or, to the Knowledge of the Company or the
Seller, threatened administrative or judicial proceeding to revoke, cancel, suspend or declare such License and Permit invalid in any respect. The Licenses and Permits are sufficient and adequate in all material respects to permit the continued
lawful conduct of the Business in the manner now conducted and none of the operations of the Company are being conducted in a manner that violates any of the terms or conditions under which any License and Permit was granted. The Stock Purchase and
the consummation of the transactions contemplated by this Agreement will not result in the termination or suspension of any License or Permit. 

Section 3.16. Compliance with Law. 

(a) For the past three (3) years, the operations of the Business have been conducted in accordance with all applicable laws, regulations,
orders and other requirements of all courts and other governmental or regulatory authorities having jurisdiction over the Business or the Company and its assets, properties and operations, except where the failure to so comply would not be material
to the Business. Neither the Company nor the Seller has received notice of any violation of any such law, regulation, order or other legal requirement, and is not subject to, or in default with respect to, any order, writ, judgment, award,
injunction or decree of any national, state or local court or governmental or regulatory authority or arbitrator, domestic or foreign, applicable to the Business or the Company or any of its assets, properties or operations except for violations or
defaults that would not be material to the Business. 
 (b) Neither the Company nor, to the Knowledge of the Company or the Seller, any of
the directors, officers, agents or employees of the Company, the Seller or any of their respective Affiliates has, for or on behalf of the Company or the Business (i) used any funds for unlawful contributions, gifts, entertainment or other
unlawful expenses relating to political activity; (ii) made, authorized, promised or offered to make any unlawful payments of money or other things of value to foreign government officials or employees or related parties, or to foreign
political parties or campaigns or violated any provision of the Foreign Corrupt Practices Act of 1977, as amended; or (iii) made any other payments in violation of applicable law. 

  
 26 

 Section 3.17. Litigation. Except as set forth on Schedule 3.17, there
are no claims, actions, suits, proceedings, labor disputes or, to the Knowledge of the Company or the Seller, investigations (“Actions”) pending or, to the Knowledge of the Company or the Seller, threatened, before any national,
state or local court or governmental or regulatory authority, domestic or foreign, or before any arbitrator of any nature, (i) brought by or against the Company or the Seller or (ii) to the Knowledge of the Company or the Seller, brought
by or against any of the officers, directors, employees, agents or Affiliates of the Company or the Seller, in the case of clause (i) and (ii) above involving, affecting or relating to the Company, the Business, the assets, properties or
rights of the Company or the Stock Purchase and the transactions contemplated by this Agreement. Schedule 3.17 sets forth a list and a summary description of all such pending Actions. Except as set forth on Schedule 3.17, neither the
Business, the Company or their assets, properties or rights are subject to any order, writ, judgment, award, injunction or decree of any national, state or local court or governmental or regulatory authority or arbitrator, domestic or foreign, that
would be material to the Business. 
 Section 3.18. Contracts. 

(a) Schedule 3.18(a) sets forth a complete and correct list and, if such contract is not in writing, a summary description of: 

(i) all contracts, Sales Orders and Purchase Orders involving more than $75,000 per year; 

(ii) contracts that contain covenants or provisions that purport to (A) restrict the ability of the Company to freely
conduct the Business or which contain any covenant not to compete in any line of business, in any geographic area or with any Person, (B) directly or indirectly limit the Company’s ability to (I) sell any products or services of or to
any other Person, (II) engage in any business, (III) solicit any customer, or (IV) obtain products or services from any Person or (C) limit the ability of any Person to provide products or services to the Company; 

(iii) contracts that involve Indebtedness of the Company or Indebtedness in respect of the Business; 

(iv) contracts under which the Company has any obligation to lend or contribute funds to, or make investments in, any Person;

 (v) contracts which appoint a power of attorney on behalf of the Company that may not be revoked immediately upon notice
by the Company; 
 (vi) contracts that relate to the acquisition or disposition of any business by the Company (whether by
merger, sale or purchase of stock, sale or purchase of assets or otherwise); 
 (vii) contracts that would purport to apply
to either the Buyer or any of its Affiliates (other than the Company) following the Closing; 

  
 27 

 (viii) contracts between the Company, on the one hand, and the Seller or any of
its Affiliates (other than the Company), on the other hand, including all Affiliate contracts; 
 (ix) contracts that grant a
right of first refusal or first offer or similar right to the extent relating to the Company or the Business; 
 (x)
contracts pursuant to which any Lien, other than a Permitted Lien, is placed or imposed on any material asset of the Company or the Business; 

(xi) contracts to which the Company is a party that include a “most favored nation” or comparable right in favor of
any Person; 
 (xii) partnership, joint venture or limited liability company agreements to which the Company is a party or
that are related to the Business; 
 (xiii) Leases of the Company or related to the Business; or 

(xiv) any other contract that is material to the Business and is not terminable upon 90 calendar days’ written notice
without material penalty or premium (clauses (i) through (xiii), collectively, the “Material Contracts”). 
 (b) Each
Material Contract is valid, binding and enforceable against the Company in accordance with its terms, except that such enforceability is subject to applicable bankruptcy, insolvency or other similar laws relating to or affecting the enforcement of
creditors’ rights generally and to general principles of equity (regardless of whether enforcement is considered in a proceeding in equity or at law), and is in full force and effect on the date hereof. The Company is not in default or
delinquent in performance, status or any other respect (claimed or actual) in connection with, any Material Contract, and to the Knowledge of the Company or the Seller, no event has occurred which, with due notice or lapse of time or both, would
constitute such a default. To the Knowledge of the Company or the Seller, no other party to any Material Contract is in default in respect thereof, and no event has occurred which, with due notice or lapse of time or both, would constitute such a
default, except for possible defaults which would not be material to the Business. The Seller has delivered to the Buyer or its representatives true and complete originals or copies of all the Material Contracts. 

Section 3.19. Inventories. The inventories of the Company (including tooling, spare parts and supplies) reflected on the
Balance Sheet, or acquired by the Company after the date thereof and prior to the Closing Date, are carried at not more than the lower of cost or market, and the Company has no reason to believe that such inventories include in any material amount
any obsolete inventory or surplus inventory for which adequate reserves have not been established on the Financial Statements. As used herein, “obsolete inventory” is inventory which, at July 31, 2013, was not usable or salable in the
lawful and ordinary course of business of the Company as now conducted because of legal restrictions, failure to meet specifications, loss of market, damage, physical deterioration or for any other cause, in each case net of reserves provided
therefor on the Balance Sheet; and “surplus inventory” is inventory that, at July 31, 2013, exceeded known or anticipated requirements in the reasonable business judgment of the Company. 

  
 28 

 Section 3.20. Employee Plans. 

(a) Schedule 3.20(a) sets forth each material Plan and separately designates each Company Plan. With respect to each Company Plan and
each material Seller Plan, the Seller has delivered or made available to the Buyer or its representatives complete and correct copies, to the extent applicable, of (i) the Plan documents and all amendments thereto, including related trust
agreements and any related material agreements which are in writing, (ii) summary plan descriptions and any material modifications thereto, (iii) the most recent Internal Revenue Service determination letter, if any, and (iv) the most
recently filed Annual Report (Form 5500 Series and accompanying schedules of each Plan and required financial statements) as filed, and (v) audited financial statements and actuarial reports. 

(b) In all material respects, each Company Plan conforms to, and its administration is in substantial compliance with, all applicable
requirements of law, including, without limitation, ERISA and the Code and all of the Company Plans are in full force and effect as written, and all premiums, contributions and other payments required to be made by the Company under the terms of any
Company Plan have been timely made or accrued. Neither the Buyer nor the Company will have any Liabilities in respect of any Seller Plan or any other employee benefit plan maintained, sponsored or contributed to by the Seller and its Affiliates from
and after the Closing, except as may otherwise be provided in the Transition Services Agreement. 
 (c) Each Company Plan that is intended
to be qualified under Section 401(a) of the Code has been determined to be so qualified, and each trust maintained pursuant thereto has been determined to be exempt from Federal taxation, by the Internal Revenue Service pursuant to a favorable
determination or opinion letter, and to the Knowledge of the Company or the Seller, nothing has occurred since the date of such letter which could adversely impact such qualification and tax exemption or cause the imposition of any material
liability, penalty or tax under ERISA or the Code. 
 (d) Except as otherwise set forth on Schedule 3.20(d), no Company Plan is
(i) subject to Title IV or Section 302 of ERISA or Section 412 or 4971 of the Code, (ii) a “multiemployer plan” as defined in Section 3(37) of ERISA, or (iii) a plan that has two or more contributing sponsors
at least two of whom are not under common control, within the meaning of Section 4063 of ERISA, and none of the Company, or any other entity, trade or business that is, or was at the relevant time, a member of a group described in
Section 414(b), (c), (m) or (o) of the Code or Section 4001(b)(1) of ERISA that includes or included the Company, or that is, or was at the relevant time, a member of the same “controlled group” as the Company pursuant
to Section 4001(a)(14) of ERISA (each such entity, being, an “ERISA Affiliate”) has withdrawn at any time within the preceding six years from any multiemployer plan, or incurred any “withdrawal liability” on account
of a complete or partial withdrawal from any multiemployer plan, nor has any of them incurred any liability due to the termination or reorganization of a multiemployer plan, in either case which remains unsatisfied. No circumstances exist which
would reasonably be expected to result in a Liability to the Company under Title IV of ERISA (other than the payment of premiums). No event has occurred and no condition exists that would subject the Company by reason of its affiliation with any
current or former ERISA Affiliate to any (i) Tax, penalty, fine, (ii) Lien or (iii) other Liability imposed by ERISA, the Code or other applicable laws. 

  
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 (e) There has been no non-exempt “prohibited transaction” (within the meaning of
Section 406 of ERISA or Section 4975 of the Code) with respect to any Company Plan or penalty incurred with respect to any Company Plan under Section 502(i) of ERISA. 

(f) The Company does not have any obligations for retiree welfare benefits other than coverage mandated by applicable law. The Company has
complied in all material respects with the requirements of Section 4980B of the Code and Sections 601 et seq. of ERISA relating to continuation coverage for group health plans. 

(g) There are no pending actions, claims or lawsuits which have been asserted, instituted or, to the Knowledge of the Company or the Seller,
threatened, against the Company Plans, the assets of any of the trusts under the Company Plans or the Company Plan sponsor or the Company Plan administrator, or, to the Knowledge of the Company or the Seller, against any fiduciary of the Company
Plans with respect to the operation of such Company Plans (other than routine benefit claims). 
 (h) During the two (2) years prior to
the Closing, the Company has not effectuated a “plant closing” or “mass layoff” (as defined in the United States Worker Adjustment and Retraining Notification Act, or any similar law) or taken any other action that would trigger
notice or liability under any state, local or foreign plant closing notice law. The Company is, and during the three (3) years prior to the Closing, has been, in material compliance with the Worker Adjustment Retraining Notification Act of
1988, as amended and each similar state or local law. 
 (i) To the Knowledge of the Company or the Seller, the execution of, and
performance of the transactions contemplated in, this Agreement will not, either alone or upon the occurrence of events occurring subsequent to the date hereof and up to and including the Closing Date, result in (i) except as set forth on
Schedule 3.20(i), any payment (whether of severance pay or otherwise), acceleration, forgiveness of indebtedness, vesting, distribution, increase in benefits or obligation to fund benefits with respect to any employee, (ii) result in a
non-exempt “prohibited transaction” within the meaning of Section 406 of ERISA or Section 4975 of the Code, or (iii) result in the payment of any amount that would, individually or in combination with any other such payment,
be an “excess parachute payment” within the meaning of Section 280G of the Code. 
 (j) Each Company Plan that is a
“nonqualified deferred compensation plan” (as defined in Section 409A(d)(1) of the Code) has been administered in all material respects (i) in good faith compliance with Section 409A of the Code for the period beginning
October 1, 2004 through December 31, 2008, and (ii) in compliance (including documentary compliance) with Section 409A of the Code since January 1, 2009. 

(k) No Company Plan covers employees outside the United States. 

(l) The Terms and Conditions of Employment (the “O’Leary Employment Agreement”) by and between the Company and Jonathan
E. O’Leary (“O’Leary”) dated as of 

  
 30 

 
January 17, 2011, remain in full force and effect and no party is in breach of its obligations under the O’Leary Employment Agreement or has otherwise waived its right to enforce the
O’Leary Employment Agreement against the other party. In the event that O’Leary’s employment is terminated by the Company without Cause (as defined in the O’Leary Employment Agreement) or by O’Leary for Good Reason (as
defined in the O’Leary Employment Agreement), in each case, immediately following the Closing, the amount payable to O’Leary pursuant to Section 7(b)(i) of the O’Leary Employment Agreement (including the employer portion of any
employment Taxes (FICA, Medicaid, etc.) incurred on account of such payments) shall not exceed $235,000 (the “O’Leary Escrow Amount”) and is conditioned upon his execution of a general release of claims releasing all pending or
potential claims. Except for the amounts set forth in the previous sentence, the benefits to be provided by the Seller pursuant to Section 5.9(b) below and any benefits to which O’Leary is entitled to receive pursuant to a Seller
Plan in accordance with its terms, O’Leary will not be entitled to any additional payments or benefits in the event that his employment is terminated by the Company without Cause (as defined in the O’Leary Employment Agreement) or by
O’Leary for Good Reason (as defined in the O’Leary Employment Agreement), in each case, immediately following the Closing. 

Section 3.21. Insurance. Schedule 3.21 lists the fidelity bonds and the aggregate coverage amount and type and
generally applicable deductibles of all policies of title, liability, fire, casualty, business interruption, workers’ compensation and other forms of insurance insuring the Business or the Company and its assets, properties and operations.
Except as set forth on Schedule 3.21, the Company will retain the benefit of such insurance from and after the Closing. All of the Actions set forth on Schedule 3.17 are included within a type or category that are covered under at
least one of these insurance policies. The Company has furnished a true, complete and accurate copy of all such policies and bonds to the Buyer or its representatives. Except as set forth on Schedule 3.21, all such policies and bonds are in
full force and effect. Neither the Company nor the Seller is in default in any material respect under any provisions of any such policy of insurance nor has the Company or the Seller received notice of cancellation of any such insurance. There is no
material claim by the Company (or by the Seller) pending under any of such policies or bonds as to which coverage has been questioned, denied or disputed by the underwriters of such policies or bonds. The insurance maintained in connection with the
Business is reasonably adequate in accordance with industry standards and the requirements of any applicable Leases. 

Section 3.22. Transactions with Affiliates. 

(a) Schedule 3.22 contains a true and complete list of all inter-company balances, including a description and an amount of each
Intercompany Payable and Intercompany Receivable, as of immediately prior to the Closing between the Seller or any of its Affiliates (other than the Company), on the one hand, and the Company, on the other hand. Except for the sales orders listed in
section (b) of Schedule 3.22, all Intercompany Payables and Intercompany Receivables have been, or pursuant to Section 2.2(c) will be as of immediately prior to the Closing, paid and settled without any Liability to the
Buyer and its Affiliates (including the Company) from and after the Closing. 
 (b) Other than the Transition Services Agreement and the
Trademark License Agreement, Schedule 3.22 sets forth a true and complete list of all contracts between the 

  
 31 

 
Company, on the one hand, and the Seller or any Affiliate of the Seller (other than the Company), on the other hand (collectively, the “Affiliate Contracts”). Except for the
sales orders listed in section (b) of Schedule 3.22, as of and after the Closing, the Company shall not have any Liability under any Affiliate Contracts and, for the avoidance of doubt, no Liability in respect of any of the Affiliate
Contracts shall be recorded, reflected or otherwise provided for in the calculation of Net Working Capital. 
 (c) Except as set forth on
Schedule 3.22, the Company is not a party to any agreement or arrangement with any of the directors or officers of the Company, the Seller or any Affiliate thereof or any family member of any of the foregoing under which they: (i) lease
any real or personal property (either to or from such Person), (ii) license technology (either to or from such Person), (iii) are obligated to purchase any tangible or intangible asset from or sell such asset to such Person,
(iv) purchase products or services from such Person, (v) pay or receive commissions, rebates or other payments or (vi) provide or receive any other material benefit. 

(d) The Company does not employ as an employee or engage as a consultant any family member of any of the directors, officers or stockholders
of the Company. Except as set forth on Schedule 3.22, to the Knowledge of the Company or the Seller, during the past three years none of the directors, officers or stockholders of the Company, or any family member of any of such Persons, has
been a director or officer of, or has had any direct or indirect interest in, any Person which during such period has been a supplier, customer or sales agent of the Company or has competed with or been engaged in any business of the kind being
conducted by the Company. No Affiliate of the Company owns or has any rights in or to any of the assets, properties or rights used in the operation of the Business in the ordinary course. 

Section 3.23. Labor Matters. 

(a) The Company is and for the three (3) years prior to the Closing, has been in compliance in all material respects with all applicable
laws relating to employment of labor, including all applicable laws relating to wages, hours, collective bargaining, employment discrimination, civil rights, safety and health, employment of foreign citizens, workers’ compensation, pay equity,
classification of employees, classification and treatment of independent contractors and non-employees (including for purposes of all Tax laws), payment of overtime, and the collection and payment of withholding and/or social security Taxes. 

(b) Except as set forth on Schedule 3.23(b): (i) the Company is not a party to or otherwise bound by any collective bargaining
agreement or other labor union contract applicable to Company Employees and, to the Knowledge of the Company or the Seller, there are not any activities or proceedings of any labor union to organize any such employees; (ii) there is no unfair
labor practice charge or complaint pending before the National Labor Relations Board (“NLRB”) or any applicable Governmental Entity relating to the Company; (iii) there is no labor strike, material slowdown or material work
stoppage or lockout pending or, to the Knowledge of the Company or the Seller, threatened against or affecting the Company; (iv) there is no representation claim or petition pending before the NLRB or any similar Governmental Entity and, to the
Knowledge of the Company or the Seller, no question concerning representation exists relating to the Company Employees, and the Company has not experienced any strike, material slowdown or material work stoppage, lockout or other collective labor
action 

  
 32 

 
by or with respect to the Company Employees during the two (2) years prior to the Closing Date; (v) there are no charges with respect to or relating to the Company pending before any
applicable Governmental Entity responsible for the enforcement of labor or employment laws; and (vi) the Company has received no notice from any applicable Governmental Entity responsible for the enforcement of labor or employment laws of an
intention to conduct an investigation of the Company and no such investigation is in progress. 
 (c) Schedule 3.23(c) sets forth a
true and complete list dated as of July 31, 2013 containing the name, position, starting employment date, current annual salary and bonus and commissions for the 2013 fiscal year of each current Company Employee. 

(d) Except as set forth on Schedule 3.23(d), each employee who performs services for the Business is employed by the Company (each, a
“Company Employee”). Except as set forth on Schedule 3.23(d), no employee of the Seller or any of its Affiliates (other than the Company Employees) primarily provides services to the Business (other than employees who are not
otherwise critical to the day-to-day operations of the Business) or is otherwise critical to the continued operations of the Business in the same manner as operated immediately prior to the Closing. 

(e) Neither the Company nor, to the Knowledge of the Company, any Company Employee is bound by any contract (including licenses, covenants or
commitments of any nature) or subject to any judgment, decree or order of any Governmental Entity that would materially interfere with the use of such Person’s best efforts to promote the interests of the Company or that would materially
conflict with the Business as currently conducted. 
 Section 3.24. Environmental Matters. Except as set forth on
Schedule 3.24; 
 (a) The Company is and, to the Seller’s Knowledge, has been in material compliance with all applicable
Environmental Laws and all licenses, permits, registrations, approvals and other authorizations required thereunder (“Environmental Permits”). 

(b) The Company has obtained, or has made a timely and complete application for or if presently required by Environmental Law to have been
filed to keep such permit in effect during pendency of the application for renewal of, all Environmental Permits required under Environmental Laws; none of the Environmental Permits is subject to any pending or, to Seller’s Knowledge,
threatened administrative or judicial proceeding to revoke, cancel, suspend or declare such Environmental Permit invalid in any respect; no additional Environmental Permits or modifications to Environmental Permits are pending. 

(c) No substance, the exposure to which is regulated pursuant to any Environmental Law because of its effect or alleged effect on human health
or the environment, including, without limitation, any hazardous substance, hazardous waste, toxic substance, pollutant or contaminant, or petroleum or any fraction thereof, as those terms are defined by Environmental Law (each, a “Hazardous
Substance”), has been released by the Company, or to the Seller’s Knowledge, by any other Person, on, at, to or from any real property currently owned, operated or leased by the Company or during the time period of ownership,
operations or lease by the Company on, at, to, or from any real property formerly owned, operated or leased by the Company in each case so as to require reporting, investigation, or remediation under any Environmental Law. 

  
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 (d) None of the Owned Real Property or Leased Real Property or any of the improvements contained
thereon, (i) contains or to the Seller’s Knowledge, formerly contained any underground or aboveground storage tank, surface impoundment, landfill or land disposal area; (ii) contains asbestos or asbestos containing materials in
friable form, or polychlorinated biphenyls, or radioactive materials in each case that presently require removal pursuant to Environmental Law; or (iii) has been the subject of any environmental investigation or response with respect to
Hazardous Substances pursuant to any Environmental Law. 
 (e) The Company has not received written notice that it has any actual or
contingent liability arising from any treatment, transport or disposal or arrangement for the treatment, transport or disposal of any Hazardous Substance at or to any location, including any location owned or operated by a third party. 

(f) Except as has been resolved, the Company has not received any written, or to the Seller’s Knowledge other notice of, and there is no
pending or, to Seller’s Knowledge threatened claim, complaint, notice of violation or potential liability, request for information, investigation, proceeding, order, decree or lawsuit relating to any Hazardous Substance, including, without
limitation, exposure thereto, or pursuant to any Environmental Law relating in any way to any of them (“Environmental Claim”). 

(g) The Company has not assumed or retained by contract, any liability (i) of any Person (other than the Company) in respect of any
Environmental Claim or pursuant to Environmental Laws, or (ii) under Environmental Law with respect to any property formerly owned or operated by, or any business or operations formerly conducted by the Company. 

(h) The Company is not subject to any order, writ, judgment, award, injunction or decree of any Governmental Entity or arbitrator, domestic or
foreign, relating to any Hazardous Substance or any Environmental Law. 
 (i) The Seller or the Company has provided the Buyer with true and
complete copies of all (i) Environmental Permits, (ii) demands, claims or actions (or notices pertaining to the same) relating to the Company or the Owned Real Property or the Leased Real Property pursuant to Environmental Law, and
(iii) reports, data, or other material documentation related to all investigations, audits, or assessments of environmental conditions at any of the Owned Real Property or Leased Real Property or noncompliance or alleged noncompliance of the
Company, with any Environmental Law, except as are subject to privilege. 
 (j) The Company is not subject to any pending or, to the
Knowledge of the Company, threatened claim relating to asbestos-containing materials, silica or manganese-containing welding rods. 
 (k)
The representations and warranties made pursuant to this Section 3.24 and Section 3.3(v) are the exclusive representations and warranties made by the Seller, the Company or any of their Affiliates or Subsidiaries regarding
(x) Environmental Laws, (y) Environmental Claims or (z) Hazardous Substances. 

  
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 Section 3.25. Products Liability. 

(a) Except as set forth on Schedule 3.25, (i) there is no Action before any Governmental Entity pending, or to the Knowledge of
the Seller, threatened against the Company involving any products manufactured, produced, distributed or sold by or on behalf of the Company and/or in connection with the Business (including any parts or components) (collectively,
“Products”), or class of claims or lawsuits involving the same or similar Product which is pending or, to the Seller’s Knowledge, threatened, resulting from an alleged defect in design, manufacture, materials or workmanship of
any Product, or any alleged failure to warn, or from any breach of implied warranties or representations (collectively, “Product Liability Lawsuits”); (ii) there has not been, within the past 12 months, any Occurrence (as
hereinafter defined); and (iii) there has not been, within the past 12 months, any Product rework or retrofit (collectively, “Retrofits”) conducted by or on behalf of the Company. 

(b) For purposes of this Section 3.25, the term “Occurrence” shall mean any accident, happening or event which
takes place at any time which is caused or allegedly caused by any alleged hazard or alleged defect in manufacture, design, materials or workmanship including, without limitation, any alleged failure to warn or any breach of express or implied
warranties or representations with respect to, or any such accident, happening or event otherwise involving any Product that can reasonably be expected to result in a claim or loss. 

(c) Except as set forth on Schedule 3.25, to the Seller’s Knowledge, each Product manufactured, sold, leased, or delivered by the
Company and the Business has been in conformity with all applicable material contractual commitments and all express and implied warranties, and the Company and the Business have no Liability (and there is no basis for any present or future
proceeding against any of them giving rise to any Liability) for replacement or repair thereof or other damages in connection therewith. No Product manufactured, sold, leased, or delivered by the Company and the Business is subject to any guaranty,
warranty, or other indemnity beyond the applicable standard terms and conditions of sale or lease. Schedule 3.25 includes copies of the standard terms and conditions of sale or lease for the Company and the Business (containing applicable
guaranty, warranty, and indemnity provisions). Except as set forth on Schedule 3.25, the Seller and the Business have no obligation to any person to maintain, modify, improve or upgrade any of the Products. 

(d) Except as set forth on Schedule 3.25, to the Seller’s Knowledge, the Company and the Business have no material Liability (and
there is no basis for any present or future proceeding against any the Company and the Business giving rise to any material Liability) arising out of any injury to individuals or property as a result of the ownership, possession, or use of any
Product manufactured, sold, leased, or delivered by the Company and the Business. 

  
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 Section 3.26. Customers and Suppliers. 

(a) As of the date hereof, Schedule 3.26(a) sets forth a list of the ten largest customers of the Company (based on the Company’s
revenues for the twelve month period ended July 31, 2013) (the “Material Customers”). Except as described on Schedule 3.26(a), since July 31, 2013 and through the date hereof, there has been no material written
dispute by any Material Customer, and there has been no written termination or written notice of termination by any Material Customer, with respect to such Material Customer’s contract or business relationship with the Company, nor to the
Knowledge of the Company has any Material Customer threatened in writing to so terminate their contract(s) or business relationship with the Company. 

(b) As of the date hereof, Schedule 3.26(b) sets forth a list of the ten largest suppliers of the Company for the twelve month period
ended July 31, 2013 (the “Material Suppliers”). Except as described on Schedule 3.26(b), since July 31, 2013 and through the date hereof, there has been no material written dispute by any Material Suppliers, and
there has been no written termination or written notice of termination by any Material Supplier, with respect to such Material Supplier’s contract or business relationship with the Company, nor to the Knowledge of the Company has any Material
Supplier threatened in writing to so terminate their contract(s) or business relationship with the Company. 
 Section 3.27.
Business Books and Records. The Business Books and Records: (i) are true, complete and correct in all material respects, (ii) have been maintained in all material respects in accordance with sound business practices and
applicable law, (iii) accurately present and reflect in all material respects, all of the Business and all transactions and actions related thereto and (iv) to the Knowledge of the Company or the Seller, have been prepared using processes
and procedures for which there are no material weaknesses or significant deficiencies in internal controls over financial reporting that adversely affect the ability of the Seller and its Affiliates (including the Company) to accurately present and
reflect in all material respects all of the Business and other transactions and actions related thereto. 
 Section 3.28. No
Other Representations and Warranties. Except for the representations and warranties contained in this Agreement (including the related portion of the Schedules) or in any Ancillary Agreement to which the Seller is a party, none of the
Seller, the Company or any other Person has made or makes any representation or warranty, express, statutory or implied, either written or oral, on behalf of the Seller or the Company, and the Seller disclaims any such representation or warranty not
set forth in this Agreement or such Ancillary Agreement. 
 ARTICLE IV. 

REPRESENTATIONS AND WARRANTIES OF BUYER. 

The Buyer hereby represents and warrants to the Seller as follows: 

Section 4.1. Corporate Organization. The Buyer is a corporation duly organized, validly existing and in good standing under
the laws of the State of Michigan, and has 

  
 36 

 
all requisite corporate power and authority to own or lease its properties and assets and to conduct its businesses as now conducted. Copies of the certificate of incorporation and by-laws of the
Buyer, with all amendments thereto to the date hereof, have been furnished to the Seller or its representatives, and such copies are accurate and complete. 

Section 4.2. Authorization and Validity of Agreement. The Buyer has all requisite corporate power and authority to enter
into this Agreement and to carry out its obligations hereunder. The execution and delivery by the Buyer of this Agreement and the performance of the Buyer’s obligations hereunder have been duly authorized by all necessary corporate action by
the Board of Directors of the Buyer, and no other corporate proceedings on the part of the Buyer are necessary to authorize such execution, delivery and performance. This Agreement has been duly executed by the Buyer and, assuming the due
authorization, execution and delivery of this Agreement by the Buyer, constitutes the Buyer’s valid and binding obligation, enforceable against the Buyer in accordance with its terms, except that the enforceability of this Agreement is subject
to applicable bankruptcy, insolvency or other similar laws relating to or affecting the enforcement of creditors’ rights generally and to general principles of equity (regardless of whether enforcement is considered in a proceeding in equity or
at law). 
 Section 4.3. No Conflict or Violation. The execution, delivery and performance by the Buyer of this Agreement
do not and the consummation by the Buyer of the Stock Purchase and the other transactions contemplated hereby will not (i) violate or conflict with any provision of the certificate of incorporation and by-laws of the Buyer or (ii) violate
any provision of law, any regulation, or any order, judgment or decree of any court or other Governmental Entity. 
 Section 4.4.
Consents and Approvals. The execution, delivery and performance of this Agreement by the Buyer does not require the consent or approval of, or filing with, any Governmental Entity or any other Person, including the filing of a pre-merger
notification report under the HSR Act, except for such consents, approvals and filings, of which the failure to obtain or make would not, individually or in the aggregate, have a material adverse effect on the business of the Buyer and its
Subsidiaries considered as one enterprise or have a material adverse effect on the ability of the Buyer to consummate the transactions contemplated hereby. 

Section 4.5. Investment Intent. The Buyer is acquiring the Shares for its own account, for the purpose of investment only
and not with a view to, or for sale in connection with, any distribution thereof in violation of applicable securities laws. 

Section 4.6. Investment Awareness. The Buyer understands that the Shares have not been registered under the Securities Act
and that the Buyer will not be permitted to sell or otherwise transfer such shares unless they are registered under the Securities Act or unless an exemption from such registration is available. 

Section 4.7. Acknowledgment of No Other Representations and Warranties of the Seller. The Buyer acknowledges and agrees
that, except as expressly set forth in this Agreement or in any Ancillary Agreement to which the Buyer is a party, none of the Seller, the Company or any other Person has made or makes any representation or warranty, express, statutory or implied,
either written or oral, on behalf of the Seller or the Company. 

  
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 Section 4.8. Solvency. The Buyer has sufficient cash and/or available credit
facilities to pay the Closing Purchase Price and Escrow Amount and to make all other necessary payments of fees and expenses in connection with the transactions contemplated by this Agreement. 

Section 4.9. No Other Representations and Warranties. Except for the representations and warranties contained in this
Agreement (including the related portion of the Schedules), neither the Buyer or any other Person has made or makes any representation or warranty, express, statutory or implied, either written or oral, on behalf of the Buyer relating to the Buyer
or any other matter than is the subject of this Agreement, and the Buyer disclaims any such representation or warranty not set forth in this Agreement. 

ARTICLE V. 
 COVENANTS
OF THE PARTIES. 
 Section 5.1. Necessary Consents and Approvals. 

(a) On and after the Closing Date, the Parties shall (i) use commercially reasonable efforts to obtain and/or deliver all necessary
consents, waivers, authorizations, notifications and approvals, if any (each of which shall be in a form that is reasonably acceptable to the Buyer), of all Governmental Entities, and of all other Persons, required in connection with the execution,
delivery and performance by the Parties of this Agreement, and (ii) diligently assist and cooperate with the preparation and filing of all documents (if any) to be submitted to any Governmental Entities, in connection with the transactions
contemplated by this Agreement and in obtaining any governmental consents, waivers, authorizations or approvals, if any, which the Parties may seek or require in connection with such transactions. 

(b) On or after the Closing Date, if the Buyer requests in writing the assistance or cooperation of the Seller pursuant to
Section 5.1(a), the Buyer shall reimburse the Seller for reasonable out-of-pocket fees and expenses (including reasonable legal fees and expenses) incurred by the Seller, which amount shall not exceed $15,000 without the prior written
approval of the Buyer, in connection with providing the assistance or cooperation specified and requested by the Buyer pursuant to Section 5.1(a). Notwithstanding the foregoing, in the event that the Seller requests prior written
approval of any reasonable out-of-pocket fees and expenses pursuant to this Section 5.1(b) and the Buyer declines to provide such consent, the Seller shall not be required to comply with Section 5.1(a), and Seller’s
failure to provide any assistance or cooperation required by Section 5.1(a) shall not be considered a breach of this Agreement. 

(c) In the event and to the extent that the Seller and the Buyer are unable to obtain any consent, waiver, authorization and/or approval in
respect of an agreement with a third party prior to the Closing, to the extent permitted by applicable law, (i) the Seller shall, following the Closing, use commercially reasonable efforts in cooperation with the Buyer and its Affiliates

  
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(including the Company) to provide or cause to be provided to the Buyer the benefits of such agreement with such third party and (ii) the Buyer shall, and shall cause its Affiliates to, use
commercially reasonable efforts to perform the obligations of the Seller arising under such agreement. If and when any such consent, waiver, authorization and/or approval shall be obtained, the Seller shall, and shall cause its Affiliates to,
promptly assign all of their respective rights and obligations under any agreement with such third party to the Buyer without the payment of further consideration and the Buyer shall, without the payment of any further consideration therefor, assume
such rights and obligations and the Seller and its Affiliates shall be relieved of any and all obligation or liability hereunder and thereunder. 

Section 5.2. Access and Information. Following the Closing Date, each of the Parties shall, and shall cause its Affiliates
to: (i) allow the other Party, upon reasonable prior notice and during normal business hours, through its representatives, reasonable access and the right to examine and make copies of any records related to the Company and the Business for any
reasonable business purpose related to the Company, including, without limitation, the preparation and examination of Tax Returns and financial statements; (ii) instruct its employees and its Affiliates’ employees to cooperate with any
investigation relating to the Company and the Business, including, without limitation, the preparation or examination of Tax Returns and financial statements and the conduct of any litigation relating to the Company and the Business or otherwise, or
the conduct of any regulatory, customer or other dispute resolution process and (iii) retain such books and records of the Company and the Business relating to periods prior to the Closing in a manner reasonably consistent with the prior
practices of the Company for examination and copying until the third anniversary of the Closing Date, after which anniversary the Parties may destroy any such records in its possession in their discretion, provided, that (x) the Seller
and its Affiliates shall have no obligation to maintain or retain any books and records to the extent that electronic or paper copies or originals of such books and records are delivered to the Buyer or any of its Affiliates (including the Company)
in connection with the Closing and (y) records related to Tax Returns shall be retained until the seventh anniversary of the Closing Date. Notwithstanding the foregoing, access to such employees and books and records shall not be required where
such access would violate any law or unreasonably interfere with the business operations of the Party or its Affiliates. 

Section 5.3. Books and Records. 

(a) The Parties hereto hereby acknowledge that (i) any and all Business Books and Records shall be deemed to be the property of the Buyer
and its Affiliates (including the Company) from and after the Closing, (ii) the Non-Business Books and Records shall be deemed to be the property of the Seller and its Affiliates (not including the Company) from and after the Closing, and
(iii) any and all Shared Books and Records shall be deemed to be the property of the Seller and its Affiliates (not including the Company) from and after the Closing, as applicable. 

(b) The Seller shall, and shall cause its Affiliates to, retain any and all Shared Books and Records that are in the possession or control of
the Seller and its Affiliates (including the Company) as of the Closing to the extent that the Non-Business Books and Records contained in such Shared Books and Records shall not have been separated therefrom by such time. Following the Closing, if
necessary, (i) the Seller shall, and shall cause its Affiliates to, at 

  
 39 

 
the Seller’s expense, use commercially reasonable efforts to cause any and all then Shared Books and Records to be separated such that the Business Books and Records and the Non-Business
Books and Records contained therein no longer comprise Shared Books and Records as promptly as practicable following the Closing and (ii) until such separation process is complete, upon the written request of the Buyer from time to time, the
Seller shall, at the Buyer’s expense, under the terms and conditions of the Transition Services Agreement, provide reasonable access to, any and all Shared Books and Records then in the possession or control of the Seller to the extent that the
Shared Books and Records contain Business Books and Records. 
 Section 5.4. Existing Third Party Indemnification Rights.
From and after the Closing, upon the reasonable request of the Buyer made on or before the sixth (6th) anniversary of the Closing Date, the Seller shall, and shall use commercially reasonable efforts to cause its Affiliates to, reasonably
cooperate with and assist the Buyer and the Company in submitting claims for and pursuing and recovering any applicable indemnification or reimbursement to which the Company may be entitled from any third party that is not an Affiliate of the Seller
under any contract to which the Seller or any of its Affiliates may be a party. In furtherance of the foregoing, in the event that the Company would no longer be entitled to obtain any such indemnification or reimbursement under any such contract
solely as a result of the Loss to which such indemnity relates no longer being incurred by the Seller or an Affiliate of the Seller, the Seller shall reimburse the Company for such Loss to the extent of any indemnity or reimbursement that the Seller
or its Affiliates would thereby become entitled to collect and actually do collect. The Buyer shall reimburse the Seller for any reasonable out-of-pocket expenses incurred by the Seller in providing any such cooperation or assistance requested by
the Buyer. 
 Section 5.5. Director and Officer Indemnification Rights. 

(a) From and after the Closing, the Company shall, to the maximum extent permissible under then applicable law in effect at the time,
indemnify past and present officers, directors, agents and employees of the Company (in all of their capacities) (the “Covered Parties”) to the same extent required by the certificate of incorporation and bylaws of the Company as in
effect on the Closing Date. It is expressly agreed that the Covered Parties shall be third party beneficiaries of this Section 5.5. In the event any claim or claims are asserted or made pursuant to the indemnification rights set forth in
this Section 5.5, all rights to indemnification in respect of any such claim or claims shall continue until the disposition of any and all such claims. Any determination required to be made with respect to whether a Covered Party’s
conduct complies with the applicable standard of conduct which governs the availability of such indemnification shall be made by independent legal counsel mutually approved by the Covered Party and the Buyer, such approval not to be unreasonably
withheld or delayed. 
 (b) Following the Closing, the Seller shall maintain in effect, without any lapses in coverage, an insurance policy
providing directors’ and officers’ liability insurance coverage for the benefit of those Persons who are covered by the Seller’s directors’ and officers’ liability insurance policy as of the Closing, for a period of six
(6) years following the Closing Date with respect to matters occurring prior to the Closing that is at least equal to the coverage provided under the Seller’s current directors’ and officers’ liability insurance policy. 

  
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 Section 5.6. Tax Matters. 

(a) Transfer Taxes. No Transfer Taxes will be collected by the Seller in connection with the closing of the transactions contemplated
by this Agreement. In the event that any Transfer Taxes are imposed on such transactions, such Transfer Taxes shall be paid when due by the party responsible for paying such Transfer Taxes under applicable law, and the other party shall promptly
thereafter reimburse the paying party for 50% of such Transfer Taxes. The Parties shall cooperate in demonstrating that the requirements for an exemption from such Transfer Taxes, if any, have been satisfied. 

(b) Responsibility for Filing Tax Returns. 

(i) Following the Closing, the Seller shall cause to be prepared and filed all Prior Period Returns. The Tax year of the
Company shall terminate for federal Income Tax purposes on the end of the Closing Date under Treasury Regulations Section 1.338(h)(10)-1(d), with items of income, gain, loss and deduction allocated in accordance with the provisions of Treasury
Regulations under Section 338 of the Code. If, on the Closing Date, a transaction occurs outside the ordinary course of business of the Company that is properly allocable to the portion of the Closing Date after the Closing, the Buyer and the
Seller agree to treat the transaction for federal Income Tax purposes as occurring at the beginning of the day following the Closing Date in accordance with the principles of Treasury Regulations Section 1.338-1(d). To the extent permitted by
law, the Buyer and the Seller further agree to elect with the relevant Governmental Entity to treat the Closing Date as the last day of a taxable period of the Company for all other Tax purposes. The Prior Period Returns shall be prepared, where
relevant, in a manner consistent with the Seller’s past practices except as otherwise required by law. The Seller shall pay all Taxes related to such Prior Period Returns to the extent such Taxes were not taken into account in the Financial
Statements or in determining Net Working Capital. The Buyer shall make available to the Seller (and to the Seller’s accountants and attorneys) its personnel and any and all books and records and other documents and information in its possession
or control relating to the Company reasonably requested by the Seller to prepare the Prior Period Returns. The Seller has disclosed to the Buyer pending amendments of Tax Returns related to Prior Period Returns. With the exception of these
amendments, the Seller shall not file or cause to be filed any amended Tax Return related to a Prior Period Return that will affect the Tax liability of the Buyer or the Company in a Post-Closing Period without the prior written consent of the
Buyer, which consent may not be unreasonably withheld or delayed. The Seller shall include the income (or loss) of the Company (to the extent such Taxes were not taken into account in the Financial Statements or in determining Net Working Capital)
on the Seller’s consolidated federal income Tax Returns for all periods through the end of the Closing Date and pay any federal Income Taxes attributable to such income. 

(ii) Following the Closing, the Buyer shall cause to be prepared and filed all Income Tax Returns required to be filed with
respect to the Company for taxable periods ending following the Closing Date and shall pay all Taxes related thereto (without prejudice to any rights or claims to seek reimbursement from the Seller for the Seller’s share of such Taxes as
described in this Agreement). The Buyer shall prepare all 

  
 41 

 
Straddle Period Tax Returns in a manner consistent with the Seller’s past practices, except as otherwise required by law. The Seller shall reimburse the Buyer for the portion of such Taxes
allocable to the Pre-Closing Tax Period, to the extent such Taxes allocable to the Pre-Closing Tax Period were not taken into account in the Financial Statements or in determining the Net Working Capital and have not been paid by the Seller. Buyer
shall, at least thirty (30) days prior to filing any such Straddle Period Tax Return, provide a copy of such Tax Return to the Seller. The Seller shall, within ten (10) days of receiving such Tax Return, advise Buyer regarding any matters
in such Tax Return with which it reasonably disagrees. In such case, Seller and Buyer shall reasonably cooperate with each other to reach a timely and mutually satisfactory solution to the disputed matters. If they cannot resolve the dispute within
ten (10) days, any such dispute shall be submitted to the Dispute Resolution Firm for resolution, which resolution shall be final and binding upon the Parties. Taxes for any Straddle Period shall be allocated to the Pre-Closing Tax Period
(i) in the case of real property, personal property and other ad valorem Taxes, on the basis of a daily proration and (ii) in the case of all other Taxes (including, for purposes of illustration and not of limitation, Income Tax Returns
for any Straddle Period) on the basis of an interim closing of the books as of the Closing Date; provided, however, that exemptions, allowances or deductions that are calculated on an annual basis (including depreciation and
amortization deductions) shall be allocated between the period ending on and including the Closing Date and the period beginning after the Closing Date in proportion to the number of days in each such period relative to the entire taxable period.
Taxes attributable to the Pre-Closing Tax Period shall be determined under the same method of accounting used by the Company during that period. In the case of sales, use, documentary, stamp, registration, recording, transfer or similar Taxes
unrelated to the transfer of the Shares, the Seller shall be liable for such Taxes on transactions occurring through the Closing Date and the Buyer shall be liable for such Taxes on transactions occurring after the Closing Date. 

(c) Tax Audits. The Buyer shall promptly notify the Seller and the Seller shall promptly notify the Buyer following receipt of any
notice of audit or proceeding relating to any matter for which the Seller may be required to indemnify the Buyer pursuant to Section 7.1(c). The Seller shall have the right to control and resolve any and all audits or other proceedings
relating to any taxable period that ends on or before the Closing Date; provided, however, that (A) the Seller shall allow the Buyer to participate in such audit if it may directly affect the Tax liability of the Company by
keeping the Buyer informed of the status and progress of, and any developments related to, such audit on a timely basis, providing to the Buyer copies of any and all correspondence received from the Governmental Entity related to such audit and
providing the Buyer, at the Buyer’s expense, with the opportunity to attend conferences, hearings and other meetings with or involving the Governmental Entity and to review and provide comments with respect to written responses provided to the
Governmental Entity with respect to such audit and (B) the Seller shall not agree to the resolution of any such audit or other proceeding if such resolution could increase the Tax liability of the Buyer or the Company or reduce a Tax attribute
of the Company for any taxable period that ends after the Closing Date without the Buyer’s written consent (it being understood that the Buyer shall consent if the Seller agrees to indemnify the Buyer for such increase). The Seller shall have
the right to participate at its expense in any audits or other proceedings relating to any taxable period that ends after the Closing Date for which the Seller may be required to indemnify the Buyer pursuant to Section 7.1(c).

  
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Neither the Buyer nor the Company shall agree to the resolution of any such audit or other proceeding without the Seller’s written consent, which may not be unreasonably delayed or withheld.

 (d) Tax Sharing Agreements. All Tax allocation, Tax sharing, Tax indemnity or similar agreements to which the Company is a party
or otherwise bound (other than commercial agreements not primarily related to Taxes) shall be terminated with respect to the Company as of the Closing Date and, after the Closing Date, the Company shall not be bound thereby nor have any liability or
obligation thereunder (whether related to past or future periods), except to the extent such obligation is reflected in the Financial Statements or was treated as a liability in the calculation of Net Working Capital. 

(e) Cooperation in Tax Matters. The Buyer, the Seller and the Company shall cooperate, as and to the extent reasonably requested by the
Parties, in connection with any audit, litigation, dispute or other proceeding with respect to Taxes of the Company (a “Tax Proceeding”). Such cooperation shall include the retention and (upon the reasonable request of the
applicable party) the provision of records and information with respect to the Company related to any such Tax Proceeding. The Seller and the Buyer shall, and shall cause the Company to, provide access to the Company, at any reasonable time and from
time to time at the business location at which books and records relating to the Taxes of the Company is maintained after the Closing Date, to any and all Tax information relating to Taxes of the Company upon the reasonable request of the Buyer or
the Company. The Buyer shall furnish to the Seller, and shall cause the Company to furnish to the Seller, such Tax and other information and documents in the possession of the Buyer or the Company relating to Post-Closing Period Taxes of the
Company, as the Seller may from time to time reasonably request. Buyer and Seller shall, upon request, use commercially reasonable efforts to obtain any certificate or other document from any Person as may be necessary to mitigate, reduce or
eliminate any Tax that could be imposed (including with respect to the transactions contemplated hereby). 
 (f) Tax Refunds; Amended Tax
Returns. 
 (i) The Buyer shall promptly pay or cause to be paid to the Seller any Tax refunds or credits attributable to
the Company with respect to any Pre-Closing Tax Period that are received or credited to the Buyer or the Company (or any successor thereof) within ten (10) days after the receipt of such refunds or credits, except to the extent such Tax refunds
or credits were taken into account in determining Net Working Capital. At the Seller’s request, the Buyer shall reasonably cooperate with the Seller in obtaining such refunds. 

(ii) Neither Buyer nor any of its Affiliates shall amend, refile, revoke or otherwise modify any Tax Return or Tax election of
any of the Company (or any successor(s) thereof) with respect to a Pre-Closing Tax Period without the prior written consent of the Seller which shall not be unreasonably delayed or withheld. 

  
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 Section 5.7. Insurance. 

(a) With respect to occurrences taking place after the Closing Date, the Company shall cease to be insured by the Seller’s or its
Affiliates (other than the Company’s, if applicable) blanket insurance policies or by any of their self-insured programs in place to the extent such insurance policies or programs cover the Company. 

(b) With respect to events or circumstances relating to the Company that occurred or existed prior to the Closing Date (including, for the
avoidance of doubt, any product liability claim related to or resulting from the Products manufactured by the Company or the Business prior to the Closing Date) that are covered by occurrence-based third party liability insurance policies of the
Seller or its Affiliates (other than the Company) and any workers’ compensation insurance policies and that apply to the locations at which the Company operates the Business, the Buyer may, and may cause the Company to, make claims under such
policies and programs so long as the Buyer provides written notice to the Seller or its Affiliates (as applicable) promptly (but no later than five (5) Business Days) following the making of any such claim; provided, however, that by having
received proceeds from the making of any such claims, the Buyer agrees to reimburse the Seller or its Affiliates (as applicable) for any increased out-of-pocket costs incurred by any of them as a result of (and solely to the extent of) such claims,
including any retroactive or prospective premium adjustments associated with such coverage, as such amounts are determined in accordance with those policies and programs generally applicable from time to time; and provided, further, that neither the
Buyer nor any of its Affiliates shall make any such claims if, and to the extent that, such claims are covered by insurance policies maintained by the Buyer or any of its Affiliates. The Seller and its Affiliates will provide reasonable cooperation
and assistance in the pursuit of such claims. The Seller and its Affiliates shall provide to the Buyer from time to time, at the Buyer’s reasonable request, currently valued historical loss information for the historical five-year period prior
to the Closing Date under the insurance policies and programs referred to above (to the extent solely related to the Company or the Business). 

(c) With respect to any open claims against the insurance policies of the Seller or its Affiliates (other than the Company) relating to losses
or damages suffered by the Company prior to the Closing, the Seller shall (i) use commercially reasonable efforts to pursue such claims and shall reasonably cooperate with and assist the Buyer and its Affiliates in doing the same and
(ii) remit to the Buyer any and all proceeds realized from such claims upon settlement of such claims, net of any reasonable out-of-pocket expenses incurred by the Seller in connection with the performance of their obligations pursuant to the
foregoing clause (i). 

  
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 Section 5.8. Post-Closing Receipts. To the extent that, after the Closing,
(a) the Buyer or any of its Affiliates receives any mail for the Seller or its Affiliates, or any payment or instrument that is for the account of the Seller or any of its Affiliates according to the terms of this Agreement, the Buyer shall
promptly deliver such mail, amount or instrument to the Seller, and (b) the Seller or any of its Affiliates receives any mail for the Buyer or its Affiliates, or any payment or instrument that is for the account of the Buyer or any of its
Affiliates according to the terms of this Agreement, the Seller shall promptly deliver such mail, amount or instrument to the Buyer. 

Section 5.9. Employees and Employee Benefits. 

(a) Except as otherwise specifically provided in Schedule 5.9 with respect to certain executives of the Company, from and after the
Closing, the Buyer and the Company shall have the rights and obligations described in this Section 5.9 regarding the individuals who were employees of the Company immediately prior to the Closing and who continue employment with the
Company or the Buyer following the Closing (including each such individual who is on vacation, temporary layoff, leave of absence, sick leave or short- or long–term disability leave) (each, a “Continuing Employee”). 

(b) The Seller shall cause each Continuing Employee to be vested in their pro rata portion of any equity-based compensation awards granted by
the Seller or its Affiliates (under any Seller Plan or otherwise) earned by the Continuing Employee as of the Closing, without regard to any employment, performance or service conditions. In addition, effective as of the Closing, the Seller shall
take all actions necessary to credit any contributions by the Seller or any of its Affiliates to the account of O’Leary under any of the Seller’s (and each of its Affiliates’) Profit Sharing and 401(k) Plan and its Benefit Restoration
Plan, in each case, for the plan year during which the Closing occurs, and to fully accelerate the vesting of any previously unvested contributions by the Seller or any of its Affiliates to O’Leary’s account in such plans. 

(c) For all purposes under each employee benefit plan maintained by the Buyer, the Company or any of their Affiliates in which Continuing
Employees become eligible to participate upon or after the Closing, the Buyer shall, or shall cause the Company, to use all commercially reasonable best efforts to give the Continuing Employees credit for all service with the Company to the same
extent as if such services had been rendered to the Buyer, the Company or any of their Affiliates; provided, however, that the foregoing shall not apply (i) with respect to benefit accruals under any defined benefit pension plan,
(ii) to the extent that its application would result in a duplication of benefits or (iii) to the extent that such service was not recognized under the analogous type plan of the Seller or its Affiliates. 

(d) With respect to any general leave, health, welfare or fringe employee benefit plan maintained by the Buyer, the Company or any of their
Affiliates in which Continuing Employees become eligible to participate upon or after the Closing, and as to the plan year in progress at the time of the Closing, the Buyer shall, or shall cause the Company, to use all commercially reasonable best
efforts to: (i) waive all limitations as to pre-existing conditions, exclusions, evidence of insurability requirements and waiting periods with respect to participation and coverage requirements applicable to the Continuing Employees under any
such plan; and (ii) provide each Continuing Employee with credit under any such plan for any co-payments and deductibles paid by and out of pocket requirements satisfied by such Continuing Employee prior to the Closing under the analogous type
plan of Seller or its Affiliates. 

  
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 (e) Notwithstanding the foregoing, this Section 5.9: (i) does not establish,
amend or modify any benefit plan, program, agreement or arrangement (including any Plan) and is not intended to and shall not require the Buyer or the Company to maintain or continue any benefit plan, program, agreement or arrangement (including any
Plan) beyond the time when it otherwise lawfully could be terminated or modified, (ii) does not alter or limit the ability of the Company, the Buyer, or any of their respective Affiliates to amend, modify or terminate any benefit plan, program,
agreement or arrangement (including any Plan) at any time assumed, established, sponsored or maintained by any of them, and (iii) does not obligate the Buyer, the Company or any of their respective Affiliates to provide any Continuing Employee
(or any legal representative thereof) with any remedies or any rights to employment or continued employment for any period of time, or any rights to a particular term or condition of employment, severance pay or similar benefits following any
termination of employment. Nothing contained in this Section 5.9 is intended to confer upon any Person (including employees, retirees or dependents or beneficiaries of employees or retirees) any right as a third party beneficiary of this
Agreement. 
 (f) The Seller agrees to use its commercially reasonable efforts to enforce the provisions of the noncompetition and
nonsolicitation provisions (the “Forkovitch Restrictive Covenants”) contained in that certain Terms and Conditions of Stock Award, Employment and Separation agreement by and between the Seller and James K. Forkovitch
(“Forkovitch”), dated as of June 1, 2010, against Forkovitch to the extent reasonably requested by the Buyer, and at the Buyer’s sole cost and expense, at any time during the two year period immediately following the
Closing Date and the Seller agrees not to take any actions to waive or otherwise negatively impact its rights to the enforce the Forkovitch Restrictive Covenants, other than the waiver of the Forkovitch Restrictive Covenants with respect to that
certain Consulting Agreement, dated as of the Closing Date, by and between the Buyer and Forkovitch. 
 (g) The Buyer and the Company shall
use commercially reasonable efforts to cause O’Leary to waive or terminate his rights to any amounts payable to O’Leary pursuant to Section 7(b) of the O’Leary Employment Agreement as soon as reasonably practicable following the
Closing Date, but in any event, within ninety (90) days of the Closing Date; provided that the foregoing shall in no event require the Buyer or the Company to offer any compensation or other benefits to O’Leary that are more
favorable than those set forth in the offer letter provided by the Buyer to O’Leary prior to the Closing (a true and correct copy of which has been provided by the Buyer to the Seller as of the date hereof). The Buyer and the Company covenant
that they will not accelerate, modify or amend any amounts payable to O’Leary pursuant to Section 7(b) of the O’Leary Employment Agreement. 

ARTICLE VI. 
 ADDITIONAL
COVENANTS OF THE PARTIES. 
 Section 6.1. Consummation of the Stock Purchase. On and after the Closing Date, the
Seller and the Buyer shall, and shall cause their respective Affiliates to, take all reasonable actions and execute any additional documents, instruments or conveyances of any  

  
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kind which may be reasonably necessary to carry out any of the provisions hereof, so as to put the Buyer and its Affiliates in full possession and operating control of the Business and to effect
fully the separation of the Business from the Seller. 
 Section 6.2. Information. Each of the Seller and the Buyer shall
each, upon request by the other, furnish the other with all information concerning itself, its Subsidiaries, directors, executive officers and stockholders and such other matters as may be reasonably required in connection with any statement,
filing, notice or application made by or on behalf of the Buyer, the Company or any of the Buyer’s Subsidiaries to any third party and/or any Governmental Entity in connection with the Stock Purchase and the transactions contemplated by this
Agreement. 
 Section 6.3. Confidentiality. The Confidentiality Agreement shall automatically terminate at the
time of Closing. From and after the Closing: (i) the Seller shall, and shall cause its Affiliates and representatives to, maintain in confidence any written, oral or other information to the extent relating to the Company obtained by virtue of
the Seller’s ownership of the Company prior to the Closing, or to the extent related to or obtained from the Buyer or its Affiliates, including any information contained in the Schedules hereto; and (ii) the Buyer shall, and shall cause
its Affiliates and representatives to, maintain in confidence any written, oral or other information of or relating to the Seller or its Affiliates obtained by virtue of its ownership of the Company from and after the Closing, except, in each case,
to the extent that the applicable party is required to disclose such information by judicial or administrative process or pursuant to applicable law or the rules and regulations of any stock exchange or such information can be shown to have been in
the public domain through no fault of the applicable party; provided that to the extent permitted by applicable law, order or Governmental Entity the disclosing party (A) gives prior notice of such required disclosure to the other party as soon
as practicable, (B) cooperates with the other party, at such other party’s sole expense, to preserve the confidentiality of such information consistent with the requirements of such applicable law, order or Governmental Entity and
(C) uses commercially reasonable efforts to limit any such disclosure to the minimum disclosure necessary or required to comply with such applicable law, order or Governmental Entity. Each of the Parties hereto shall instruct its Affiliates and
representatives having access to such information of such obligation of confidentiality. 
 Section 6.4. Use of
Name. The Buyer hereby agrees that upon the Closing, except with respect to the performance of the Seller’s obligations under the Trademark License Agreement, the Seller shall have the sole right to the use of the “CMC,”
“COMMERCIAL METALS” and “COMMERCIAL METALS COMPANY” names and trademarks and/or the Globe Logo trademark or similar names, and any service marks, trademarks, trade names, d/b/a names, fictitious names, identifying symbols, logos,
emblems, signs or insignia related thereto or containing or comprising the foregoing, or otherwise used in the Business, including any name or mark confusingly similar thereto (collectively, the “CMC Marks”). Except with respect to
the rights granted to the Buyer under the Trademark License Agreement, the Buyer shall not, and shall not permit any Affiliate to, use such name or any variation or simulation thereof or any of the CMC Marks. Within nine (9) months following
the Closing Date, the Company shall, and the Buyer shall cause the Company to, take all actions necessary to terminate and forfeit all assumed name or DBA filings containing CMC Marks. 

  
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 Section 6.5. Environmental Matters. On and after the Closing Date, the Buyer
and its Affiliates shall take all reasonable actions necessary to prohibit potable use of groundwater on the Owned Real Property and restrict the use of the Owned Real Property to commercial and/or industrial use. 

Section 6.6. Steel Pipe Inventory. Subject to this Section 6.6, from and after the Closing, the Seller may
store any steel pipe inventory constituting Excluded Assets at the Company’s facilities while the Seller relocates any steel pipe inventory so stored (the “Stored Steel Pipe Inventory”). The Seller shall use commercially
reasonable efforts to remove, in its entirety, all of the Stored Steel Pipe Inventory located at the Company’s facilities (other than at the Owned Real Property) by November 18, 2013 and all of the Stored Steel Pipe Inventory located at
the Owned Real Property by December 31, 2013. The Seller shall bear the cost of the removal of the Stored Steel Pipe Inventory, including costs associated with labor, rental, rigging, and transportation, and shall reimburse the Buyer for the
costs and expenses set forth in Schedule 6.6 hereto. The Buyer and the Company shall provide access to the Company’s facilities during normal business hours and upon reasonable advance notice for purposes of the Seller’s removal of
the Stored Steel Pipe Inventory. The Seller shall be responsible for any damages caused to the Company’s facilities by the Seller or its Affiliates in connection with the removal of the Stored Steel Pipe Inventory (excluding any conditions that
existed on the Company’s facilities prior to the removal of the Stored Steel Pipe Inventory by the Seller or its Affiliates). The Buyer and the Company shall have no obligation (by contract or otherwise) to safeguard the Stored Steel Pipe
Inventory and the Seller shall bear the sole risk of any loss or damage to the Stored Steel Pipe Inventory while it is located in the Company’s facilities. 

ARTICLE VII. 

INDEMNIFICATION 

Section 7.1. Indemnification by Seller. 

(a) Subject to the provisions of Section 7.4, from and after the Closing Date, the Seller shall indemnify and defend, save and
hold the Buyer and its directors, officers, employees, Affiliates, successor and permitted assigns (collectively, the “Buyer Indemnified Parties”) harmless if any Buyer Indemnified Party shall suffer or incur any damages, Liability,
loss, cost, Tax, expense, interest award, judgment or penalty (including all reasonable attorneys’, consultants’ and experts’ fees, including such fees incurred in any action or proceeding between any Indemnified Party and any
Indemnifying Party, or reasonable costs of investigation), claim or cause of action (each, a “Loss”), without duplication, arising out of, relating to or resulting from, any and all Buyer Indemnified Events under
Section 7.1(b). 
 (b) As used herein, “Buyer Indemnified Events” shall be and mean any one or more of the
following: 
 (i) any untruth or inaccuracy in any representation made by the Seller or the breach of any warranty made by
the Seller, in each case, contained in this Agreement or in any certificate delivered by the Seller at the Closing pursuant to this Agreement (each, a “Seller Event of Breach”); 

  
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 (ii) any failure by the Seller to perform any covenant or agreement to be
performed by the Seller under this Agreement; 
 (iii) any Excluded Asset or Excluded Liability; 

(iv) any Company Transaction Expense not paid on or prior to the Closing; 

(v) any Employment Liabilities arising from the termination of the O’Leary Employment Agreement; 

(vi) any Working Capital Indemnity Amount required to be paid pursuant to Section 2.4(c); 

(vii) (x) any Third-Party Claim arising from the Known Environmental Issue (including any Remedial Action required as a
resolution of any such Third Party Claim) or (y) the closure of the underground storage tanks identified as Tank 1 and Tank 4 in the Limited Site Assessment dated July 29, 2013 by Smith+Gardner; 

(viii) all warranty or guaranty obligations with respect to Products manufactured by the Company or the Business prior to the
Closing Date and distributed or sold by the Company or its Affiliates at any time (whether before, on or after the Closing Date) pursuant to the terms of the warranties issued in connection with such sales; or 

(ix) any product liability claim related to or resulting from the Products manufactured by the Company or the Business prior to
the Closing Date or any of the matters set forth on Schedule 3.25; 
 provided, however, that Buyer
Indemnified Parties will not be entitled to any indemnification in any way relating to or arising from the Known Environmental Issue or the closure of the underground storage tanks identified as Tank 1 and Tank 4 in the Limited Site Assessment dated
July 29, 2013 by Smith+Gardner except under Section 7.1(b)(vii). 
 (c) Except to the extent treated as a liability on the
Financial Statements or taken into account in determining Net Working Capital, the Seller shall indemnify the Buyer and hold it harmless from and against (i) all Taxes (or the non-payment thereof) of the Company for all taxable periods ending
on or before the Closing Date and the portion through the end of the Closing Date for any taxable period that includes (but does not end on) the Closing Date (“Pre-Closing Tax Period”), and (ii) any Taxes of any other Person
for which the Company may become liable pursuant to Treasury Regulations section 1.1502-6 (or analogous provisions of state, local or foreign law) as a result of being a member of a consolidated, combined or unitary group of corporations or pursuant
to any Tax sharing, Tax indemnity or similar contract to which the Company was subject prior to the Closing Date. The Seller shall reimburse the Buyer for any Taxes of the Company that are the responsibility of the Seller pursuant to this
Section 7.1(c) within fifteen (15) Business Days after the Buyer or the Company notifies the Seller that such Taxes have been paid. All Parties agree that any dispute as to the amount the Seller owes the Buyer or the Company
pursuant to this Section 7.1(c) shall be resolved by the Dispute Resolution Firm. 

  
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 Section 7.2. Indemnification by Buyer and the Company. 

(a) Subject to the provisions of Section 7.4, from and after the Closing Date, the Buyer and the Company shall jointly and
severally indemnify and defend, save and hold the Seller and its directors, officers, employees, Affiliates, successor and permitted assigns (collectively, the “Seller Indemnified Parties”) harmless if any Seller Indemnified Party
shall suffer or incur any Loss, without duplication, arising out of, relating to or resulting from, any and all Seller Indemnified Events under Section 7.2(b). 

(b) As used herein, “Seller Indemnified Events” (together with any Buyer Indemnified Events, each an “Indemnified
Event”) shall be and mean any one or more of the following: 
 (i) any untruth or inaccuracy in any representation
made by the Buyer or the breach of any warranty made by the Buyer, in each case, contained in this Agreement or in any certificate delivered by the Buyer at the Closing pursuant to this Agreement (each, a “Buyer Event of Breach,”
together with any Seller Event of Breach, each an “Event of Breach”); 
 (ii) any failure by (x) the
Buyer to perform any covenant or agreement to be performed by the Buyer under this Agreement or (y) the Company to perform any covenant or agreement to be performed by the Company after the Closing Date under this Agreement; 

(iii) all warranty or guaranty obligations with respect to Products manufactured by the Company or the Business on or after the
Closing Date and distributed or sold by the Company or its Affiliates on or after the Closing Date pursuant to the terms of the warranties issued in connection with such sales; or 

(iv) any product liability claim related to or resulting from the Products manufactured by the Company or the Business on or
after the Closing Date. 
 Section 7.3. Indemnification Procedures; Escrow. 

(a) If an Indemnified Event occurs or is alleged to have occurred and an Indemnified Party asserts that an Indemnifying Party has become
obligated to such Indemnified Party pursuant to this Article VII, or if any Third Party Claim is begun, made, instituted or maintained as a result of which an Indemnifying Party may become obligated to an Indemnified Party hereunder, the
applicable Indemnified Party shall give written notice of such matter promptly, which in no event shall be later than thirty (30) days after the Indemnified Party becomes aware of such matter, to the Indemnifying Party setting forth
(i) with reasonable specificity (to the extent known) the facts and circumstances of such matter and indicate the amount (estimated, as necessary and to the extent feasible) of the Losses that have been or may be suffered by the Indemnified
Party, and (ii) the basis hereunder upon which the Indemnified Party’s claim for indemnification is asserted (a “Notice of Claim”); provided, however, that the

  
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failure to notify the Indemnifying Party will not relieve the Indemnifying Party of any liability that it may have to the Indemnified Party, except to the extent that (A) the Indemnifying
Party demonstrates that such Indemnifying Party was actually prejudiced by such Indemnified Party’s failure to give such notice or (B) any costs and expenses were incurred by the Indemnified Party in connection with such matter prior to
the Indemnifying Party’s receipt of such notice. 
 (b) Upon receipt of a Notice of Claim involving a Third Party Claim, the
Indemnifying Party may participate in and defend, contest or otherwise protect the Indemnified Parties against any such Third Party Claim by counsel of the Indemnifying Party’s choice at its sole cost and expense; provided, that
(i) no compromise or settlement thereof or consent to any admission or the entry of any judgment with respect to such Claim may be effected by the Indemnifying Party without the Indemnified Party’s prior written consent unless the sole
relief provided is monetary damages that are paid in full by the Indemnifying Party (and no injunctive or other equitable relief is imposed upon the Indemnified Party) and there is an unconditional provision whereby each plaintiff or claimant in
such Claim releases the Indemnified Party from all liability with respect thereto and (ii) the Indemnified Party shall have no liability with respect to any compromise or settlement thereof effected without its prior written consent;
provided, further, that if the resolution or settlement of a Third Party Claim involves a requirement to conduct a Remedial Action, the provisions of Section 7.4(j) shall be applicable to the conduct and control of the
Remedial Action. The Indemnified Party shall have the right, but not the obligation, to participate at its own expense in the defense thereof by counsel of the Indemnified Party’s choice and shall in any event cooperate with and assist the
Indemnifying Party to the extent reasonably possible. If the Indemnifying Party fails timely to defend, contest or otherwise protect against such Third Party Claim, the Indemnified Party shall have the right to do so, including, without limitation,
the right to make any compromise or settlement thereof; provided, that at least five (5) days prior to any such compromise or settlement, written notice of its intention to compromise or settle is given to the Indemnifying Party. If
pursuant to this Section 7.3(b), the Indemnifying Party fails to timely defend, contest or otherwise protect against such Third Party Claim, and the Indemnified Party elects to do so, the Indemnified Party shall be entitled to recover
the Losses incurred by the Indemnified Party from the Indemnifying Party, unless the Indemnifying Party is contesting its indemnification obligations in connection with such Third Party Claim. 

(c) Any indemnification payments by the Seller to a Buyer Indemnified Party pursuant to this Article VII shall first be paid from the
proceeds, if any, of the Escrow Account as set forth below (provided that this Section 7.3(c) shall in no way limit a Buyer Indemnified Party’s rights to seek indemnification directly from the Seller to the extent all of the funds
in the Escrow Account have been extinguished (except as otherwise provided in Section 2.4(c)): 
 (i) At the
Closing, the Buyer shall deposit $3,000,000 (the “Indemnity Escrow Amount”), $1,000,000 (the “Working Capital Escrow Amount”) and the O’Leary Escrow Amount (and collectively with the Indemnity Escrow Amount and
the Working Capital Escrow Amount, the “Escrow Amount”), which Escrow Amount shall be delivered to the Escrow Agent for deposit into an escrow account pursuant to the terms of the Escrow Agreement (the “Escrow
Account”). The Escrow Amount shall be held pursuant to the provisions of the escrow agreement between the Seller, the Buyer and the Escrow Agent, to be entered into at the Closing (the “Escrow Agreement”), substantially in
the form attached hereto as Exhibit A. 

  
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 (ii) On the eighteen (18)-month anniversary of the Closing Date, the Indemnity
Escrow Amount plus income and earnings, if any (or such lesser amount then remaining in the Escrow Account) shall be released from the Escrow Account to the Seller in accordance with the terms of the Escrow Agreement; provided, that if any
good faith claims for indemnification by the Buyer have been made pursuant to this Agreement and remain unresolved at such time (other than claims pursuant to Section 7.1(b)(v) relating to the O’Leary Escrow Amount, which are
addressed in clause (iii) below) and an amount equal to such unresolved good faith claims would not remain in the Escrow Account following such release from the Escrow Account, an amount equal to such good faith claims shall remain in the
Escrow Account and all other amounts in the Escrow Account at such time shall be released from the Escrow Account to the Seller. 

(iii) On January 15, 2014, the O’Leary Escrow Amount plus income and earnings, if any (or such lesser amount then
remaining in the Escrow Account) shall be released from the Escrow Account to the Seller in accordance with the terms of the Escrow Agreement; provided, that if any good faith claims for indemnification by the Buyer have been made pursuant to
Section 7.1(b)(v) and remain unresolved at such time and an amount equal to such unresolved good faith claims would not remain in the Escrow Account following such release from the Escrow Account, an amount equal to such good faith
claims shall remain in the Escrow Account and all other portions of the O’Leary Escrow Amount (if any) in the Escrow Account at such time shall be released from the Escrow Account to the Seller. 

Notwithstanding the foregoing, nothing in this Section shall affect the survival of representations and warranties as provided for by
Section 8.1. 
 Section 7.4. Indemnification Limitations. 

(a) Subject to the limitations set forth in this Section 7.4, if an Event of Breach of Section 3.1,
Section 3.2, Section 3.5, Section 3.6, Section 3.13(c), Section 3.20(l), Section 4.1, Section 4.2 or Section 9.4 of this Agreement (collectively, the
“Fundamental Representations”), an Event of Breach of Section 3.7(c) or Section 3.9 of this Agreement, a Buyer Indemnified Event under Section 7.1(b)(ii)-(ix) of this Agreement or a Seller
Indemnified Event under Section 7.2(b)(ii)-(iv) of this Agreement occurs, the Indemnifying Party’s payment obligations under this Article VII for Losses incurred by the Indemnified Party relating to such Indemnified
Event shall be 100% of any Losses incurred up to the Closing Purchase Price (as adjusted pursuant to Section 2.4). 

  
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 (b) Except for amounts of indemnity payable (A) under Section 7.1(c),
(B) with respect to an Event of Breach, Buyer Indemnified Event or Seller Indemnified Event, in each case, covered under Section 7.4(a), or (C) in the event of fraud (the items listed in the foregoing clauses (A), (B) and
(C) collectively, the “Excluded Items”) (which shall not be subject to the Deductible, De Minimis Claim and Cap provisions set forth below, provided that any indemnity under Section 7.1(b)(viii) or
Section 7.1(b)(ix) shall be subject only to Section 7.4(b)(iii) below): 
 (i) No amounts of
indemnity shall be payable under this Article VII (other than with respect to the Excluded Items) unless and until the Buyer Indemnified Parties or the Seller Indemnified Parties, as the case may be, have suffered, incurred, sustained or
become subject to Losses in excess of $400,000 (the “Deductible”) in the aggregate, in which case any Buyer Indemnified Party or Seller Indemnified Party, as applicable, may bring a claim for all Losses in excess of such amount;
provided, that the amount of Losses resulting from such claim, or aggregated claims arising out of the same or similar facts, events or circumstances, exceeds $50,000 (any claim, or aggregated claims arising out of the same or similar facts,
events or circumstances, involving Losses equal to or less than such amount being referred to as a “De Minimis Claim”); 

(ii) The aggregate amounts of indemnity payable by the Seller to the Buyer Indemnified Parties or by the Buyer and the Company
to the Seller Indemnified Parties, as the case may be, under this Article VII (other than with respect to the Excluded Items) for indemnifiable Losses shall not exceed $6,000,000 (the “Cap”); and 

(iii) No amounts of indemnification shall be payable under Section 7.1(b)(viii) or Section 7.1(b)(ix)
unless and until the Buyer Indemnified Parties have suffered, incurred, sustained or become subject to Losses in excess of $25,000 in any 12-month period (each such period measured from the Closing Date until the one-year anniversary of the Closing
Date, and so forth) in the aggregate, in which case any Buyer Indemnified Party may bring a claim for all Losses in excess of such amount. 

(c) Once it has been determined that a representation or warranty contained in this Agreement or in any certificate delivered on the Closing
Date pursuant to this Agreement has been breached (after taking into account materiality, Business Material Adverse Effect or similar qualifications contained in such representation or warranty), when determining the amount of Losses in respect of
such breach of any representation or warranty, any materiality, Business Material Adverse Effect or similar qualifications contained in such representation or warranty shall be disregarded. 

(d) Notwithstanding anything contained in this Agreement to the contrary, no Indemnified Party shall be entitled to recovery under this
Article VII with respect to consequential, special, punitive, incidental, exemplary, special damages or any damages based on diminution of value, lost profits, loss of business reputation or business opportunity related to the breach or
alleged breach of this Agreement, except to the extent that such damages are (i) reasonably foreseeable and (ii) awarded by a court or other authority of competent jurisdiction in connection with a Third Party Claim. 

(e) The recovery by any Indemnified Party pursuant to this Article VII shall be net of any reimbursement actually received from any
insurance carrier in connection with the Losses that form the basis of the Indemnified Party’s claim for indemnification hereunder. If any such proceeds or recoveries are received by an Indemnified Party with respect to any Losses after an
Indemnifying Party has made a payment to the Indemnified Party with respect thereto, the Indemnified Party shall promptly pay to the Indemnifying Party the amount of such proceeds or recoveries (up to the amount of the Indemnifying Party’s
payment). 

  
 53 

 (f) The Parties agree that any indemnification payments made pursuant to this Agreement shall be
treated for Tax purposes as an adjustment to the Closing Purchase Price, unless otherwise required by applicable law. 
 (g) This Article
VII shall be the exclusive remedy of the Indemnified Parties following the Closing for any breach of or inaccuracy in any representation or warranty or any breach, nonfulfillment or default in the performance of any of the covenants or
agreements contained in this Agreement, other than any remedies for fraud or any remedies available under Section 9.8. The Buyer and the Seller, as the case may be, shall provide any information in connection with the matters covered by
this Article VII as the Seller or the Buyer, respectively, may reasonably request and to the extent permitted by applicable law. In furtherance of the foregoing, except for indemnification claims asserted pursuant to this Article VII
and except for fraud claims and except for any remedies available under Section 9.8, the Buyer and the Seller hereby waive, from and after the Closing, to the fullest extent permitted under applicable law, any and all rights, claims and
causes of action it may have against the Seller Indemnified Parties or the Buyer Indemnified Parties, as the case may be, relating to the subject matter of this Agreement arising under or based upon any applicable laws, regulations, orders or
otherwise. The Buyer and the Seller acknowledge and agree that the Seller Indemnified Parties and Buyer Indemnified Parties, as the case may be, may not avoid the limitation on liability provided by this Section 7.4(g) by
(x) seeking damages for breach of contract, tort or pursuant to any other theory of liability, all of which are hereby waived or (y) asserting or threatening any claim against any Person that is not a party hereto (or a successor to a
party hereto) for breaches of the representations, warranties and covenants contained in this Agreement. THE BUYER AND THE SELLER (FOR THEMSELVES AND THEIR RESPECTIVE SUCCESSORS AND ASSIGNS) EXPRESSLY WAIVE ALL RIGHTS AFFORDED BY ANY STATUTE WHICH
LIMITS THE EFFECT OF A RELEASE WITH RESPECT TO UNKNOWN CLAIMS. THE BUYER AND THE SELLER (FOR THEMSELVES AND THEIR RESPECTIVE SUCCESSORS AND ASSIGNS) UNDERSTAND THE SIGNIFICANCE OF THIS RELEASE OF UNKNOWN CLAIMS AND WAIVER OF STATUTORY PROTECTION
AGAINST A RELEASE OF UNKNOWN CLAIMS. THE BUYER AND THE SELLER (FOR THEMSELVES AND THEIR RESPECTIVE SUCCESSORS AND ASSIGNS) ACKNOWLEDGE AND AGREE THAT THIS WAIVER IS AN ESSENTIAL AND MATERIAL TERM OF THIS AGREEMENT. 

(h) THE INDEMNIFICATION PROVIDED IN THIS ARTICLE VII CONTAINS THE SOLE AND EXCLUSIVE REMEDY, WHETHER UNDER THIS AGREEMENT OR OTHERWISE, FOR
BUYER INDEMNIFIED PARTIES AGAINST SELLER OR ANY AFFILIATE OF SELLER WITH RESPECT TO ANY AND ALL LOSSES INCURRED REGARDING, OR CLAIMS RELATING TO OR ARISING FROM ENVIRONMENTAL MATTERS OR ENVIRONMENTAL LAW (INCLUDING, WITHOUT LIMITATION, THOSE RELATED
TO (A) ENVIRONMENTAL CLAIMS, (B) THE CONDITION OF THE COMPANY OR ANY OF ITS ASSETS, AND (C) THE PRESENCE OR RELEASE OF HAZARDOUS SUBSTANCES OR VIOLATIONS OF ENVIRONMENTAL LAW), AND THE BUYER INDEMNIFIED PARTIES HEREBY

  
 54 

 
EXPRESSLY AND KNOWINGLY RELEASE AND WAIVE ANY RIGHT TO SEEK ANY OTHER FORM OF RECOURSE AGAINST SELLER OR ANY AFFILIATE OF SELLER WITH RESPECT TO SUCH MATTERS, WHETHER CONTRACTUAL, AT LAW OR IN
EQUITY, INCLUDING, BUT NOT LIMITED TO, REMEDIES UNDER CERCLA AND ANY OTHER ENVIRONMENTAL LAW), TO THE EXTENT THAT THIS SECTION 7.4 IS FOUND TO BE IN CONFLICT WITH ANY OTHER PROVISION OF THIS AGREEMENT, THE PROVISIONS OF THIS SECTION 7.4 SHALL
CONTROL. 
 (i) The Buyer Indemnified Parties do not have any right to indemnification with respect to any Loss under
Section 7.1 for any environmental investigatory, corrective or remedial action or action taken to address environmental noncompliance (collectively, “Remedial Action”) except to the extent that such Remedial Action is
(i) required under Environmental Laws or lawfully required by a Governmental Entity; (ii) undertaken in a cost-effective manner under the circumstances and, with respect to a cleanup, remediation or other response action with respect to
soils, groundwater or other environmental, in connection with an Environmental Claim, (iii) in the case of any cleanup, remediation, or other response action with respect to soils, groundwater or other environmental medial, designed to achieve
the least stringent cleanup standards applicable to the subject property assuming use of the subject property as it was used as of the Closing Date (i.e., commercial use), prohibiting the use of groundwater for potable use, and using
risk-based remedies or remedial standards, institutional or engineering controls or deed restrictions on real property to the extent permissible under applicable Environmental Laws and so long as, in the reasonable discretion of the Buyer
Indemnified Parties, such controls or restrictions do not unreasonably interfere with the use of the subject property as it was used as of the Closing Date; and (iv) reasonably necessary for operations, maintenance, or repairs and performed for
a bona fide business purpose. 
 (j) Subject to the limitations and conditions set forth in this Article VII or otherwise, the
Parties agree that the Buyer and the Company shall have the right to fully control any Remedial Action (and, if applicable, assume the defense and control of any Third Party Claim relating thereto); provided, however, that (i) the
Buyer and the Company shall reasonably consult with the Seller in responding to or managing the control of or conducting any Remedial Action, the Buyer and the Company shall provide the Seller with a reasonable opportunity to comment on any material
work plans, correspondence or submissions to any Governmental Entity or third party relating to any such Remedial Action, and the Buyer and the Company shall provide to the Seller, promptly upon their submission or receipt, any material work plans,
correspondence or submissions that are submitted to or received from any Governmental Entity or third party relating to any such Remedial Action and (ii) the Buyer and the Company shall keep the Seller apprised of the status of any Remedial
Action and use commercially reasonable efforts to conduct any Remedial Action in a reasonably cost-efficient manner. 

  
 55 

 ARTICLE VIII. 

SURVIVAL 

Section 8.1. Survival of Representations, Warranties and Covenants. 

(a) The representations or warranties contained in this Agreement shall survive for eighteen (18) months after the Closing Date other
than (i) the Fundamental Representations which shall survive indefinitely after the Closing Date, (ii) the representations and warranties in Section 3.9 and Section 3.20 (other than Section 3.20(l)),
which shall survive until thirty (30) days following the expiration of the applicable statute of limitations period, and (iii) the representations and warranties in Section 3.24, which shall survive until the thirty-six
(36) month anniversary of the Closing Date. The covenants made by the Parties in this Agreement with respect to action to be taken or omitted after the Closing Date shall survive the Closing and the consummation of the transactions contemplated
by this Agreement in accordance with their terms. The right of the Buyer Indemnified Parties to bring an indemnity claim pursuant to Section 7.1(b)(v) shall expire on January 15, 2014. The right of the Buyer Indemnified Parties to
bring an indemnity claim pursuant to Section 7.1(b)(vii)(x) shall expire on the ten (10)-year anniversary of the Closing Date. The right of the Buyer Indemnified Parties to bring an indemnity claim pursuant to
Section 7.1(b)(vii)(y) shall expire upon the receipt of closure documentation from the appropriate Governmental Entity. The right of the Buyer Indemnified Parties to bring an indemnity claim pursuant to Section 7.1(b)(viii)
or Section 7.1(b)(ix) shall expire on the thirty-six (36) month anniversary of the Closing Date. The right of the Buyer Indemnified Parties to bring an indemnity claim pursuant to Section 7.1(b)(ii)-(iv) and
(vi) shall survive indefinitely. 
 (b) For the avoidance of doubt, the obligations of an Indemnifying Party to provide
indemnification pursuant to Article VII shall terminate when the applicable representation, warranty or covenant terminates pursuant to Section 8.1(a); provided, however, an Indemnified Party acting in good
faith may assert a claim for which it may seek indemnification pursuant to Article VII by providing written notice of such claim to the Indemnifying Party prior to the applicable survival period described in Section 8.1(a)
(and need not commence an actual legal proceeding prior to such date), in which case such claim shall survive until final resolution thereof. 

ARTICLE IX. 

MISCELLANEOUS 

Section 9.1. Successors and Assigns. Except as otherwise provided in this Agreement, no party hereto shall assign this
Agreement or any rights or obligations hereunder without the prior written consent of the other party hereto and any such attempted assignment without such prior written consent shall be void and of no force and effect. This Agreement shall inure to
the benefit of and shall be binding upon the successors and permitted assigns of the Parties hereto. Notwithstanding the foregoing, the Buyer shall have the unrestricted right to assign this Agreement or all or any of its rights hereunder and/or to
delegate all or any part of its obligations hereunder to any Affiliate or Subsidiary of the Buyer, but in such event the Buyer shall remain fully liable for the performance of all of such obligations in the manner prescribed in this Agreement.

 Section 9.2. GOVERNING LAW; JURISDICTION. THIS AGREEMENT SHALL BE CONSTRUED, PERFORMED AND ENFORCED IN ACCORDANCE
WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING 

  
 56 

 
EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF. THE PARTIES HERETO IRREVOCABLY ELECT AS THE SOLE JUDICIAL FORUM FOR THE ADJUDICATION OF ANY MATTERS ARISING UNDER OR IN CONNECTION WITH THIS
AGREEMENT, AND CONSENT TO THE JURISDICTION OF, THE COURTS OF THE STATE OF NEW YORK OR THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK. 

Section 9.3. Expenses. Except as set forth in the Transition Services Agreement and the Escrow Agreement, all the fees,
expenses and costs incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such fees, expenses and costs. 

Section 9.4. Broker’s and Finder’s Fees. 

(a) The Seller represents and warrants that the Company has not dealt with any broker or finder in connection with any of the transactions
contemplated by this Agreement. 
 (b) The Buyer represents and warrants that it has dealt with no broker or finder in connection with any
of the transactions contemplated by this Agreement. 
 Section 9.5. Severability. In the event that any part of this
Agreement is declared by any court or other judicial or administrative body to be null, void or unenforceable, said provision shall survive to the extent it is not so declared, and all of the other provisions of this Agreement shall remain in full
force and effect so long as, and only so long as, the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto or to the stockholders of the Company or the Buyer. Upon a
determination that any provision is invalid, illegal or incapable of being enforced and does not adversely affect the substance of these transactions in a material way, the Parties will negotiate in good faith to modify this Agreement so as to
effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated by this Agreement are consummated to the extent possible. 

Section 9.6. Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and
shall be deemed to have been duly given (i) on the date of service if served personally on the party to whom notice is to be given; (ii) on the day of transmission if sent via facsimile transmission to the facsimile number given below, and
telephonic confirmation of receipt is obtained promptly after completion of transmission; (iii) on the day after delivery to Federal Express or similar overnight courier or the Express Mail service maintained by the United States Postal
Service; or (iv) on the fifth day after mailing, if mailed to the party to whom notice is to be given, by first class mail, registered or certified, postage prepaid and properly addressed, to the party as follows: 

If to the Seller: 

Office of the General Counsel 

Commercial Metals Company 

6565 N. MacArthur Blvd., Suite 800 

Irving, Texas 75039 

Attn: Paul Kirkpatrick 

Telecopy: (214) 689-4326 

  
 57 

 Copy to: 

Haynes and Boone, LLP 
 2323
Victory Avenue, Suite 700 
 Dallas, Texas 75219 

Attn: Eric Williams 
 Telecopy:
(214) 200-0679 
 If to the Buyer or the Company: 

c/o Mueller Industries, Inc. 

8285 Tournament Drive 
 Suite 150

 Memphis, Tennessee 38125 

Attn: Gary C. Wilkerson, Esq. 

Telecopy: (901) 753-3254 

Copy to: 
 Willkie Farr &
Gallagher LLP 
 787 Seventh Avenue 

New York, New York 10019 
 Attn:
Serge Benchetrit, Esq. 
 Telecopy: (212) 728-8111 

Any party may change its address for the purpose of this Section by giving the other party written notice of its new address in the manner set
forth above. 
 Section 9.7. Amendments; Waivers. This Agreement may be amended or modified, and any of the terms,
covenants, representations, warranties or conditions hereof may be waived, only by a written instrument executed by the Parties hereto, or in the case of a waiver, by the party waiving compliance. Any waiver by any party of any condition, or of the
breach of any provision, term, covenant, representation or warranty contained in this Agreement, in any one or more instances, shall not be deemed to be nor construed as a further or continuing waiver of any such condition, or of the breach of any
other provision, term, covenant, representation or warranty of this Agreement. 
 Section 9.8. Specific
Performance. Each of the Parties hereto acknowledges that the rights of each party to consummate the transactions contemplated hereby are unique and recognize and affirm that in the event of a breach of this Agreement by any party, money
damages may be inadequate and the non-breaching party may have no adequate remedy at law. Accordingly, the Parties agree that such non-breaching party shall have the right, in addition to any other rights and remedies existing in their favor at law
or in equity, to enforce their rights and the other party’s obligations hereunder not only by an action or actions for damages but also by an action or actions for specific performance, injunctive and/or other equitable relief (without posting
of bond or other security). 

  
 58 

 Section 9.9. Public Announcements. No party shall issue any press release or
make any public announcement relating to the subject matter of this Agreement without the prior written approval of the other party; provided, however, that any party may make any public disclosure it believes in good faith is required
by applicable law or any listing or trading agreement concerning its publicly-traded securities (in which case the disclosing party will use its reasonable efforts to advise the other party prior to making the disclosure). 

Section 9.10. Entire Agreement. This Agreement contains the entire understanding among the Parties hereto with respect to
the transactions contemplated hereby and supersedes and replaces all prior and contemporaneous agreements and understandings, oral or written, (including the terms and conditions of the Non-Binding Term Sheet, dated July 29, 2013, between the
Seller and the Buyer) with regard to such transactions. All Exhibits and Schedules hereto and any documents and instruments delivered pursuant to any provision hereof are expressly made a part of this Agreement as fully as though completely set
forth herein. No oral statements or prior written material not specifically incorporated into this Agreement shall be of any force or effect. 

Section 9.11. Parties in Interest. Except for the rights of the Indemnified Parties pursuant to Article VII and the
rights of the Covered Parties set forth in Section 5.5 (each of whom shall be an intended third party beneficiary of this Agreement), nothing in this Agreement is intended to confer any rights or remedies under or by reason of this
Agreement on any Persons other than Parties hereto and their respective successors and permitted assigns. Nothing in this Agreement is intended to relieve or discharge the obligations or liability of any third Persons to the Company or the Buyer. No
provision of this Agreement shall give any third parties any right of subrogation or action over or against the Company or the Buyer. 

Section 9.12. Schedule Disclosures. The disclosure of any matter, fact or circumstance in a Schedule to this Agreement that
relates to a specified Section shall be deemed disclosure against any representation and warranty set forth in any other Section of this Agreement so long as its relevance to the other applicable Sections is reasonably apparent on its face. 

Section 9.13. Section and Paragraph Headings. The section and paragraph headings in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this Agreement. 
 Section 9.14. Counterparts. This
Agreement may be executed in counterparts (including by facsimile or portable document format (pdf)), each of which shall be deemed an original, but all of which shall constitute the same instrument. 

Section 9.15. Representation of Seller. The Buyer agrees, on its own behalf and on behalf of the Buyer Indemnified Parties,
that, following the Closing, Haynes and Boone, LLP may serve as counsel to the Seller, or any of its Affiliates in connection with any matters related to this Agreement and the transactions contemplated hereby, including any litigation,

  
 59 

 
claim or obligation arising out of or relating to this Agreement or the transactions contemplated by this Agreement notwithstanding any representation by Haynes and Boone, LLP prior to the
Closing Date of the Company. The Buyer, on its own behalf and on behalf of its Affiliates (including the Company), hereby (i) waives any claim it has or may have that Haynes and Boone, LLP has a conflict of interest or is otherwise prohibited
from engaging in such representation and (ii) agrees that, in the event that a dispute arises after the Closing between the Buyer, the Company and the Seller or any of the Seller’s Affiliates, Haynes and Boone, LLP may represent the Seller
or any of the Seller’s Affiliates in such dispute even though the interests of such person(s) may be directly adverse to the Buyer or the Company and even though Haynes and Boone, LLP may have represented the Company in a matter substantially
related to such dispute. The Buyer, on its own behalf and on behalf of its Affiliates (including the Company), also further agrees that, as to all communications among Haynes and Boone, LLP and the Company and the Seller or the Seller’s
Affiliates and representatives, that relate in any way to the transactions contemplated by this Agreement, the attorney client privilege and the expectation of client confidence belongs to the Seller and may be controlled by the Seller and shall not
pass to or be claimed by the Buyer or the Company. 
 [Signature page follows] 

  
 60 

 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the date
first above written. 
  

			
	MUELLER COPPER TUBE PRODUCTS, INC.
		
	By:	 	 /s/ GREGORY L. CHRISTOPHER

		 	Name:  Gregory L. Christopher
		 	Title:    President
	
	HOWELL METAL COMPANY
		
	By:	 	 /s/ TRACY L. PORTER

		 	Name:  Tracy L. Porter
		 	Title:    Vice President
	
	COMMERCIAL METALS COMPANY
		
	By:	 	 /s/ JOSEPH ALVARADO

		 	Name:  Joseph Alvarado
		 	Title:    President and CEO

 Signature Page to Stock Purchase Agreement 

 Exhibit A 

Escrow AgreementEX-10.9

 Exhibit 10.9 

EXCUTION COPY 
  

 
  

HLSS SERVICER ADVANCE RECEIVABLES TRUST

as Issuer 
 and 

DEUTSCHE BANK NATIONAL TRUST COMPANY

as Indenture Trustee, Calculation Agent, Paying Agent and Securities Intermediary 

and 
 HLSS HOLDINGS, LLC,

as Administrator and as Servicer (on and after the MSR Transfer Date) 

and 
 OCWEN LOAN SERVICING,
LLC,
 as a Subservicer and as Servicer (prior to the MSR Transfer Date) 

and 
 BARCLAYS BANK PLC,

as Administrative Agent 
  

 
 SERIES 2012-VF1

 SECOND AMENDED AND RESTATED INDENTURE SUPPLEMENT 

Dated as of August 30, 2013 

to 
 FOURTH AMENDED AND RESTATED
INDENTURE 
 Dated as of August 8, 2013 
  

 
 HLSS SERVICER
ADVANCE RECEIVABLES TRUST 
 ADVANCE RECEIVABLES BACKED NOTES,

SERIES 2012-VF1 
  

 
  

 EXCUTION COPY 

TABLE OF CONTENTS 

 

							
	 	 	 	  	PAGE	 
			
	SECTION 1.	 	 CREATION OF SERIES 2012-VF1 NOTES.
	  	 	2	  
			
	SECTION 2.	 	 DEFINED TERMS.
	  	 	2	  
			
	SECTION 3.	 	 FORMS OF SERIES 2012-VF1 NOTES.
	  	 	19	  
			
	SECTION 4.	 	 COLLATERAL VALUE EXCLUSIONS.
	  	 	19	  
			
	SECTION 5.	 	 GENERAL RESERVE ACCOUNTS.
	  	 	22	  
			
	SECTION 6.	 	 PAYMENTS; NOTE BALANCE INCREASES; EARLY
MATURITY.
	  	 	22	  
			
	SECTION 7.	 	 DETERMINATION OF NOTE INTEREST RATE AND
LIBOR.
	  	 	23	  
			
	SECTION 8.	 	 INCREASED COSTS.
	  	 	24	  
			
	SECTION 9.	 	 SERIES REPORTS.
	  	 	26	  
			
	SECTION 10.	 	 CONDITIONS PRECEDENT SATISFIED.
	  	 	28	  
			
	SECTION 11.	 	 REPRESENTATION AND WARRANTIES.
	  	 	28	  
			
	SECTION 12.	 	 AMENDMENTS.
	  	 	29	  
			
	SECTION 13.	 	 COUNTERPARTS.
	  	 	30	  
			
	SECTION 14.	 	 ENTIRE AGREEMENT.
	  	 	30	  
			
	SECTION 15.	 	 LIMITED RECOURSE.
	  	 	30	  
			
	SECTION 16.	 	 OWNER TRUSTEE LIMITATION OF LIABILITY.
	  	 	31	  

  
 - i - 

 EXCUTION COPY 

THIS SERIES 2012-VF1 SECOND AMENDED AND RESTATED INDENTURE SUPPLEMENT (this “Indenture Supplement”), dated as of
August 30, 2013, is made by and among HLSS SERVICER ADVANCE RECEIVABLES TRUST, a statutory trust organized under the laws of the State of Delaware (the “Issuer”), DEUTSCHE BANK NATIONAL TRUST COMPANY, a national banking
association, as trustee (the “Indenture Trustee”), as calculation agent (the “Calculation Agent”), as paying agent (the “Paying Agent”) and as securities intermediary (the “Securities
Intermediary”), HLSS HOLDINGS, LLC, a Delaware limited liability company (“HLSS”), as Administrator on behalf of the Issuer, as owner of the economics associated with the servicing under the Designated Servicing Agreements,
and, from and after the MSR Transfer Date (as defined below), as Servicer under the Designated Servicing Agreements, OCWEN LOAN SERVICING, LLC (“OLS”), as a Subservicer, and as Servicer prior to the MSR Transfer Date, BARCLAYS BANK
PLC, a public limited company formed under the laws of England and Wales (“Barclays”), as Administrative Agent (as defined below). This Indenture Supplement relates to and is executed pursuant to that certain Fourth Amended and
Restated Indenture (as amended, supplemented, restated or otherwise modified from time to time, the “Base Indenture”), dated as of August 8, 2013, among the Issuer, the Servicer, the Administrator, the Indenture Trustee, the
Calculation Agent, the Paying Agent, the Securities Intermediary, Barclays, Wells Fargo Securities, LLC (“Wells Fargo”) and Credit Suisse AG, New York Bank (“Credit Suisse”), all the provisions of which are incorporated
herein as modified hereby and shall be a part of this Indenture Supplement as if set forth herein in full (the Base Indenture as so supplemented by this Indenture Supplement being referred to as the “Indenture”). 

Capitalized terms used and not otherwise defined herein shall have the respective meanings given them in the Base Indenture. 

PRELIMINARY STATEMENT 

The Issuer has duly authorized the issuance of the Series 2012-VF1 Amended and Restated Notes on August 30, 2013 (the “Series
2012-VF1 Notes”). The parties entered into the Series 2012-VF1 Indenture Supplement dated as of September 13, 2012 (the “Original Indenture Supplement”) to document the terms of the issuance of the Series 2012-VF1
Notes. The Original Indenture Supplement was subsequently amended pursuant to Amendment No. 1, dated as of December 26, 2012, Amendment No. 2, dated as of March 13, 2013, Amendment No. 3, dated as of April 12, 2013, and
Amendment No. 4, dated as of July 1, 2013, and amended and restated pursuant to the Amended and Restated Series 2012-VF1 Indenture Supplement (the Original Indenture Supplement as so amended, the “Existing Indenture
Supplement”). 
 The Series 2012-VF1 Notes were issued in four (4) Classes of Variable Funding Notes (Class A-VF1, Class
B-VF1, Class C-VF1, and Class D-VF1), with the Initial Note Balances, Maximum VFN Principal Balances, Stated Maturity Dates, Revolving Period, Note Interest Rates, Expected Repayment Dates and other terms as specified in the Existing Indenture
Supplement, known as the Advance Receivables Backed Notes, Series 2012-VF1, and secured by the Trust Estate Granted to the Indenture Trustee pursuant to the Base Indenture. The Indenture Trustee holds the Trust Estate as collateral security for the
benefit of the Holders of the Series 2012-VF1 Notes and all other Series of Notes issued under the Indenture as described therein. 

 This Indenture Supplement shall become effective upon the latest to occur of the following (the
“Effective Date”): 
 (i) the execution and delivery of this Indenture Supplement by all parties hereto; 

(ii) an Issuer Tax Opinion; 

(iii) the delivery of an Opinion of Counsel stating that the execution of this Indenture Supplement is authorized or permitted by the Existing
Indenture Supplement and that all conditions precedent thereto have been satisfied; 
 (iv) an Officer’s Certificate to the effect that
the Issuer reasonably believes this Indenture Supplement will not have a Material Adverse Effect on any Outstanding Notes and is not reasonably expected to have an Adverse Effect at any time in the future; and 

(v) each Note Rating Agency currently rating the Outstanding Notes confirms in writing to the Indenture Trustee that this Indenture Supplement
will not cause a Ratings Effect on any Outstanding Notes. 
 In the event that any term or provision contained herein shall conflict with or
be inconsistent with any term or provision contained in the Base Indenture, the terms and provisions of this Indenture Supplement shall govern to the extent of such conflict. 

The Existing Indenture Supplement is hereby amended and restated in its entirety as follows: 

Section 1. Creation of Series 2012-VF1 Notes. 

There are hereby created, effective as of the Issuance Date, the Series 2012-VF1 Notes, to be issued pursuant to the Base Indenture and this
Indenture Supplement, to be known as “HLSS Servicer Advance Receivables Trust 2012-VF1 Advance Receivables Backed Notes, Series 2012-VF1 Variable Funding Notes.” The Series 2012-VF1 Notes shall not be subordinated to any other Notes. The
Series 2012-VF1 Notes are issued in four Classes of Variable Funding Notes. 
 Section 2. Defined Terms. 

With respect to the Series 2012-VF1 Notes and in addition to or in replacement for the definitions set forth in Section 1.1 of the Base
Indenture, the following definitions shall be assigned to the defined terms set forth below: 
 “Adjusted Tangible Equity”:
As of any date of determination, the excess of (i) total assets (net of goodwill and intangible assets), but including MSRs, over (ii) total liabilities on such date, calculated in accordance with GAAP; provided, that the
Administrative Agent shall have the right to perform valuations of the MSRs on a quarterly basis or more frequently as reasonably requested by the Administrative Agent, using a nationally recognized third party appraiser with expertise evaluating
MSRs approved by both the Administrative Agent and HLSS, at HLSS’s expense, and any such valuations shall be the MSR value for purposes of determining “Adjusted Tangible Equity”. 

  
 2 

 “Adjusted Tangible Equity Requirement”: means, a requirement that Home Loan
Servicing Solutions, Ltd. (“Home Loan Servicing Solutions”) hold Adjusted Tangible Equity equal to the greater of (1) $25,000,000 and (2) the sum of (a) 0.25% of the aggregate unpaid principal balance of all mortgage
loans as to which Home Loan Servicing Solutions holds the rights to service or the rights to the MSRs, together with the obligation to fund related servicer advances, plus (b) 5.00% of the aggregate amount of all servicer advances
made by Home Loan Servicing Solutions that remain unreimbursed 
 “Administrative Agent” means, for so long as the
Series 2012-VF1 Notes have not been paid in full: (i) with respect to the provisions of this Indenture Supplement, Barclays, or an Affiliate or successor thereto; and (ii) with respect to the provisions of the Base Indenture, and
notwithstanding the terms and provisions of any other Indenture Supplement, together, Barclays, Wells Fargo, Credit Suisse and such other parties as set forth in any other Indenture Supplement, or a respective Affiliate or any respective successor
thereto. For the avoidance of doubt, reference to “it” or “its” with respect to the Administrative Agent in the Base Indenture shall mean “them” and “their,” and reference to the singular therein in relation
to the Administrative Agent shall be construed as if plural. 
 “Advance Rates”: means, for any date of determination with
respect to each Receivable and any Class of Series 2012-VF1 Notes, the percentage amount based on the Advance Type of such Receivable, as set forth below; provided, that in the event the Servicer’s (prior to any MSR Transfer Date) or the
related Subservicer’s (on and after any MSR Transfer Date) sub-prime servicer rating is reduced below “Average,” by S&P or any other Note Rating Agency the Advance Rates applicable to the Receivables related to such Class of Notes
shall be equal to the Advance Rates prior to such ratings reduction minus 5.00%; and provided, further, that the Advance Rate for any Receivable related to any Class of Notes shall be zero if such Receivable is not a Facility
Eligible Receivable. 
  

																	
	 Advance Type / Class of Notes
	  	Class A-
VF2
Variable
Funding
Notes	 	 	Class B-
VF2
Variable
Funding
Notes	 	 	Class C-
VF2
Variable
Funding
Notes	 	 	Class D-
VF2
Variable
Funding
Notes	 
	 P&I Advances (other than Servicing Fee Advances) in Non-Judicial States
	  	 	83.25	% 	 	 	87.50	% 	 	 	89.50	% 	 	 	91.25	% 
	 P&I Advances (other than Servicing Fee Advances) in Judicial States
	  	 	78.00	% 	 	 	84.25	% 	 	 	87.50	% 	 	 	90.00	% 
	 Servicing Fee Advances in Non-Judicial States
	  	 	82.50	% 	 	 	86.25	% 	 	 	88.50	% 	 	 	90.00	% 
	 Servicing Fee Advances in Judicial States
	  	 	60.75	% 	 	 	74.25	% 	 	 	80.50	% 	 	 	85.50	% 
	 Escrow Advances in Non-Judicial States
	  	 	81.00	% 	 	 	85.25	% 	 	 	87.75	% 	 	 	89.50	% 
	 Escrow Advances in Judicial States
	  	 	63.00	% 	 	 	75.50	% 	 	 	81.75	% 	 	 	86.25	% 
	 Corporate Advances in Non-Judicial States
	  	 	79.00	% 	 	 	84.00	% 	 	 	86.50	% 	 	 	89.00	% 
	 Corporate Advances in Judicial States
	  	 	70.25	% 	 	 	78.75	% 	 	 	83.50	% 	 	 	86.75	% 
	 Loan-Level P&I Advances (other than Servicing Fee Advances) in Judicial States
	  	 	76.50	% 	 	 	83.00	% 	 	 	86.25	% 	 	 	88.75	% 

  
 3 

																	
	 Advance Type / Class of Notes
	  	Class A-
VF2
Variable
Funding
Notes	 	 	Class B-
VF2
Variable
Funding
Notes	 	 	Class C-
VF2
Variable
Funding
Notes	 	 	Class D-
VF2
Variable
Funding
Notes	 
	 Loan-Level P&I Advances (other than Servicing Fee Advances) in Non-Judicial
States
	  	 	82.25	% 	 	 	86.50	% 	 	 	88.75	% 	 	 	90.50	% 
	 Loan-Level Escrow Advances in Judicial States
	  	 	42.25	% 	 	 	61.50	% 	 	 	75.50	% 	 	 	83.50	% 
	 Loan-Level Escrow Advances in Non-Judicial States
	  	 	74.50	% 	 	 	82.00	% 	 	 	85.75	% 	 	 	88.50	% 
	 Loan Level Corporate Advances in Judicial States
	  	 	46.50	% 	 	 	68.50	% 	 	 	78.75	% 	 	 	84.50	% 
	 Loan-Level Corporate Advances in Non-Judicial States
	  	 	50.00	% 	 	 	66.75	% 	 	 	75.25	% 	 	 	87.75	% 

 “Advance Ratio” means, as of any date of determination with respect to any Designated
Servicing Agreement, the ratio (expressed as a percentage), calculated as of the last day of the calendar month immediately preceding the calendar month in which such date occurs, of (i) the related PSA Stressed Non-Recoverable Advance Amount
(other than any Mortgage Loans that generate Receivables that are Loan-Level Receivables or any Mortgage Loans that are attributable to Small Threshold Servicing Agreements) on such date over (ii) the aggregate monthly scheduled principal and
interest payments for the calendar month immediately preceding the calendar month in which such date occurs with respect to all non-delinquent Mortgage Loans serviced under such Designated Servicing Agreement. 

“Applicable Rating” means the rating assigned to each Class of the Series 2012-VF1 Notes by S&P, as the Note Rating
Agency, upon the issuance of such Class as set forth below: 
  

	 	(i)	Class A-VF1 Variable Funding Notes: AAA(sf); 

  

	 	(ii)	Class B-VF1 Variable Funding Notes: AA(sf); 

  

	 	(iii)	Class C-VF1 Variable Funding Notes: A(sf); and 

  

	 	(iv)	Class D-VF1 Variable Funding Notes: BBB (sf). 

 “Base Indenture” has the
meaning assigned to such term in the Preamble. 
 “Base Rate” means, on any date, a fluctuating rate of interest per
annum equal to the higher of (i) the Prime Rate on such date and (ii) the Federal Funds Rate on such date plus 0.50% per annum. 

“Class A-VF1 Variable Funding Notes” means, the Variable Funding Notes, Class A-VF1 Variable Funding Notes, issued
hereunder by the Issuer having an aggregate VFN Principal Balance of no greater than the applicable Maximum VFN Principal Balance. 

“Class B-VF1 Variable Funding Notes” means, the Variable Funding Notes, Class B-VF1 Variable Funding Notes, issued hereunder
by the Issuer, having an aggregate VFN Principal Balance of no greater than the applicable Maximum VFN Principal Balance. 

  
 4 

 “Class C-VF1 Variable Funding Notes” means, the Variable Funding Notes, Class
C-VF1 Variable Funding Notes, issued hereunder by the Issuer having an aggregate VFN Principal Balance of no greater than the applicable Maximum VFN Principal Balance. 

“Class D-VF1 Variable Funding Notes” means, the Variable Funding Notes, Class D-VF1 Variable Funding Notes, issued hereunder
by the Issuer having an aggregate VFN Principal Balance of no greater than the applicable Maximum VFN Principal Balance. 

“Coefficient” means, for each Class of the Series 2012-VF1 Notes, 0.08%. 

“Commercial Paper Notes” means the promissory notes issued or to be issued by a Conduit Holder in the United States
commercial paper market. 
 “Conduit Cost of Funds Rate” means, for each Interest Accrual Period, a rate per annum
equal to (i) for any Conduit Holder of Series 2012-VF1 Notes to the extent it funds its related Note Balance during such period by issuing asset-backed commercial paper, the sum of (A) the applicable CP Rate and (B) applicable, unpaid
dealer fees, (ii) for any VFN Principal Balance of Series 2012-VF1 Notes held by Barclays in an Interest Accrual Period when such VFN Principal Balance, had it then been held by a Conduit Holder, could have been funded by the issuance of
asset-backed commercial paper during such Interest Accrual Period, as determined the Administrative Agent in its good faith discretion, One-Month LIBOR, and (iii) for any Noteholder to the extent it does not fund its Note Balance during such
period by issuing asset-backed commercial paper except in the circumstances described in clause (ii), (A) One-Month LIBOR plus (B) 1.25% per annum, it being understood that the decision of how to fund its Note Balances
will be in the good faith discretion of the related Noteholder, and the Indenture Trustee may assume the full Note Balance is funded by issuance of asset-backed commercial paper unless otherwise notified in writing by the Administrative Agent. 

“Conduit Holder” means Sheffield Receivables Corporation or any other asset-backed commercial paper conduit administered by
the Administrative Agent. 
 “Constant” means, for the Series 2012-VF1 Notes, 1.00%. 

“Corporate Trust Office” means the office of the Indenture Trustee at which at any particular time its corporate trust
business will be administered, which office at the date hereof is located at 1761 East St. Andrew Place, Santa Ana, California 92705, Attention: Trust Administration – OC12S4. 

“CP Rate” means (i) with respect to any Conduit Holder for any Interest Accrual Period (or any portion thereof), the
per annum rate equivalent to the weighted average cost (as determined by the Administrative Agent, and which shall include commissions of placement agents and dealers not to exceed 0.05% of the face amount of the applicable Commercial Paper
Notes, incremental carrying costs incurred with respect to Commercial Paper Notes maturing on dates other than those on which corresponding funds are received by such Conduit Holder, other borrowings by such Conduit Holder (other than under any
Program Support Agreement) and any other costs associated with the issuance of Commercial Paper Notes) of or related to the issuance of Commercial Paper Notes that are allocated, in whole or in part to the funding of other assets of such Conduit
Holder; provided, however, that if any component of such rate is a discount rate, 

  
 5 

 
in calculating the CP Rate for such Interest Accrual Period (or such portion thereof), any Conduit Holder (or the Administrative Agent on its behalf) shall for such component use the rate
resulting from converting such discount rate to an interest bearing equivalent rate per annum, and (ii) with respect to any other Holder of the Notes for any Interest Accrual Period (or portion thereof), the per annum rate
notified by or on behalf of such Holder to the Administrative Agent as such Holder’s CP Rate for such Interest Accrual Period (or portion thereof). 

“Default Rate” means, for any Class of Notes, the sum (expressed as a percentage) of the Note Interest Rate (without regards
to the proviso of the definition of “Note Interest Rate” in the Base Indenture) for such Class and 3.00%. 

“Delinquent” means for any Mortgage Loan, any Monthly Payment due thereon is not made by the close of business on the day
such Monthly Payment is required to be paid and remains unpaid for more than 30 days. 
 “Eurodollar Disruption Event”
means any of the following: (i) a good faith determination by any Holder of the Series 2012-VF1 Notes that it would be contrary to law or to the directive of any central bank or other governmental authority (whether or not having the force of
law) for such Holder to obtain United States dollars in the London interbank market to fund or maintain any portion of the Note Balances of such Notes during any Interest Accrual Period, (ii) a good faith determination by any Holder of the
Series 2012-VF1 Notes that the interest rates offered on deposits of United States dollars to such Holder in the London interbank market does not accurately reflect the cost to such Holder of purchasing, funding or maintaining any portion of the
Note Balances of the Notes during any Interest Accrual Period, or (iii) the inability of any Holder of the Series 2012-VF1 Notes to obtain United States dollars in the London interbank market to fund or maintain any portion of the Note Balances
of such Notes for such Interest Accrual Period. 
 “Exempted MBS Trust” means each of the RAAC 2006-SP3 MBS Trust, RAAC
2006-SP MBS Trust, RAAC 2007-SP3 MBS Trust, RAMP 2005-RP3 MBS Trust and STALT 2006-1F MBS Trust. 
 “Expected Repayment
Date” for the Series 2012-VF1 Notes means August 29, 2014. 
 “Expense Rate” means, as of any date of
determination, with respect to the Series 2012-VF1 Notes, the percentage equivalent of a fraction, (i) the numerator of which equals the sum of (1) the product of the related Series Allocation Percentage for the Interim Payment Date or
Payment Date immediately preceding such date multiplied by the aggregate amount of Fees due and payable by the Issuer on the next succeeding Payment Date plus (2) the product of the related Series Allocation Percentage for the
Interim Payment Date or Payment Date immediately preceding such date multiplied by any expenses payable or reimbursable by the Issuer on the next succeeding Payment Date, up to the applicable Expense Limit, if any, prior to payments to the Holders
of the Series 2012-VF1 Notes, pursuant to the terms and provisions of this Indenture Supplement, the Base Indenture or any other Transaction Document that have been invoiced to the Indenture Trustee and the Administrator, plus (3) the
aggregate amount of related Series Fees payable by the Issuer on the next succeeding Payment Date and (ii) the denominator of which equals the sum of the outstanding Note Balances of all Series 2012-VF1 Notes at the close of

  
 6 

 
business on such date; provided, that, with respect to the first calculation of “Expense Rate” following the Issuance Date, such calculation shall include a “Series
Allocation Percentage” as determined by the Administrator and the Administrative Agent. 
 “Facility Eligible
Receivable” means, with respect to the Series 2012-VF1 Notes, a Receivable: 
 (i) which constitutes a “general
intangible,” “account” or “payment intangible” within the meaning of Section 9-102(a)(42), Section 9-102(a)(2) and Section 9-102(a)(61), respectively (or the corresponding provision in effect in a particular jurisdiction) of the UCC as in effect in all applicable jurisdictions; 

(ii) which is denominated and payable in United States dollars; 

(iii) which arises under and pursuant to the terms of a Designated Servicing Agreement and, at the time the related Advance was
made, (A) was determined by the Servicer or Subservicer, as applicable, in good faith to (1) be ultimately recoverable from the proceeds of the related Mortgage Loan, related liquidation proceeds or otherwise from the proceeds of or
collections on the related Mortgage Loan and (2) comply with all requirements for reimbursement thereunder, and (B) was authorized pursuant to the terms of the related Designated Servicing Agreement; 

(iv) which arises under a Facility Eligible Servicing Agreement; 

(v) which is not subject to any Adverse Claim and in which all right, title and interest in and to such Receivable (including
good and marketable title) have been validly sold and/or contributed by the Receivables Seller to the Depositor, and validly sold and/or contributed by the Depositor to the Issuer and, prior to the MSR Transfer Date, sold by the Servicer to the
Receivables Seller; 
 (vi) with respect to which no representation or warranty made by the Receivables Seller or the
Servicer in the Receivables Sale Agreement has been breached, which breach has continued uncured past the time at which the Servicer or the Receivables Seller was required to pay the Indemnity Payment with respect thereto pursuant to the Receivables
Sale Agreement; 
 (vii) with respect to which, as of the date such Receivable was acquired by the Issuer, none of the
Receivables Seller, the Servicer, the Subservicer or the Depositor had (A) taken any action that would impair the right, title and interest of the Indenture Trustee therein, or (B) failed to take any action that was necessary to avoid
impairing the Indenture Trustee’s right, title or interest therein; 
 (viii) the Advance (other than a Servicing Fee
Advance) related to which either (A) has been fully funded by the Servicer using its own funds and/or Amounts Held for Future Distribution (to the extent permitted under the related Designated Servicing Agreement) and/or Collections (as
appropriate) in excess of the related Required Expense Reserve, and/or amounts drawn on Variable Funding Notes or out of funds in the Collection and Funding Account or Available Funds as provided herein, or (B) in the

  
 7 

 
case of P&I Advances, will be funded on the related Funding Date and all amounts necessary to fund the related Advance are on deposit in an account under the exclusive control and direction
of the Indenture Trustee pending remittance to the appropriate MBS trustees; 
 (ix) which relates to a Mortgage Loan that is
secured by a first lien on the underlying mortgaged property; 
 (x) which does not relate to a Mortgage Loan the terms of
which have been modified after the creation of such Receivable (for purposes of this clause, a Mortgage Loan has been modified only after the modification continues effective following any trial period); 

(xi) if a Servicing Fee Advance Receivable, the provisions of the related Servicing Fee Advance Designated Servicing Agreement
identified on the Servicing Fee Advance Designated Servicing Agreement Schedule require that any unpaid and accrued servicing fees owed to the Servicer be repaid on or prior to the date of any redemption in full under the applicable Servicing Fee
Advance Designated Servicing Agreement; and 
 (xii) if a Servicing Fee Advance Receivable, which relates to a Servicing Fee
Advance Designated Servicing Agreement identified on the Servicing Fee Advance Designated Servicing Agreement Schedule. 
 “Facility
Eligible Servicing Agreement” means, with respect to the Series 2012-VF1 Notes, any Designated Servicing Agreement which, as of any date of determination, meets the following criteria: 

(i) either OLS or an OFC-Owned Servicer (in either case, prior to the MSR Transfer Date) and HLSS (from and after the MSR
Transfer Date) is the servicer under such Designated Servicing Agreement and a Responsible Officer of the Servicer has received neither (A) any notice, or otherwise obtained actual knowledge, of the occurrence of any Unmatured Default or
Servicer Termination Event by or with respect to the Servicer under such Designated Servicing Agreement except (i) to the extent that, in the case of an Unmatured Default, such Unmatured Default has been cured prior to its becoming a Servicer
Termination Event, and (ii) any Unmatured Default or Servicer Termination Event caused solely by the failure of a Collateral Performance Test or a Servicer Ratings Downgrade for which the Servicer shall not have received a written notice of
pending termination, nor (B) notice of a claim for monetary loss against the Servicer by a party to such Designated Servicing Agreement or by a related securityholder, whose claim is for an aggregate amount greater than 5% of the aggregate
Receivable Balance of the Receivables created pursuant to such Designated Servicing Agreement; 
 (ii) pursuant to the terms
of such Designated Servicing Agreement: 
 (A) under such agreement, the Servicer is permitted to reimburse itself for the
related Advance out of late collections of the amounts advanced, including from insurance proceeds and liquidation proceeds from the Mortgage Loan with 

  
 8 

 
respect to which such Advance was made, prior to any holders of any notes, certificates or other securities backed by the related mortgage loan pool, which securities, in the case of Designated
Servicing Agreements, must have included a “AAA” or equivalent rated class at the time of execution of the Designated Servicing Agreement, and prior to payment of any party subrogated to the rights of the holders of such securities (such
as a reimbursement right of a credit enhancer) or any hedge or derivative termination fees, or to any related MBS Trust or any related trustee, custodian, hedge counterparty or credit enhancer; 

(B) under such agreement, other than with respect to any Servicing Fee Advance Receivable or Loan-Level Receivable, if the
Servicer determines that the related Advance will not be recoverable out of late collections of the amounts advanced or out of insurance proceeds or liquidation proceeds from the Mortgage Loan with respect to which such Advance was made, the
Servicer has the right to reimburse itself for such Advance out of any funds (other than prepayment charges) in the Dedicated Collection Account or out of general collections received by the Servicer with respect to any Mortgage Loans serviced under
the same Designated Servicing Agreement, prior to any payment to any holders of any notes, certificates or other securities backed by the related mortgage loan pool, which securities included a “AAA” or equivalent rated class at the time
of execution of the Designated Servicing Agreement, and prior to payment of any party subrogated to the rights of the holders of such securities (such as a reimbursement right of a credit enhancer) or any hedge or derivative termination fees, or to
the related MBS Trust or any related trustee, custodian or credit enhancer (a “General Collections Backstop”); 

(iii) such Designated Servicing Agreement provides that all Advances (not including Servicing Fee Advances) as to a Mortgage
Loan are reimbursed on a “first-in, first out” or “FIFO” basis, such that the Advances of a particular type that were disbursed first in time will be reimbursed prior to Advances of the same type with respect to that Mortgage
Loan that were disbursed later in time; 
 (iv) all Receivables arising under such Designated Servicing Agreement are free
and clear of any Adverse Claim in favor of any Person and the related MBS Trustee or other owner and any related monoline insurer or other credit enhancement provider shall have been delivered a notice in the form of Exhibit C attached to the
Base Indenture signed by the Servicer; 
 (v) such Designated Servicing Agreement is in full force and effect; 

(vi) an Eligible Subservicing Agreement is in full force and effect for all mortgage loans serviced by the Servicer under such
Designated Servicing Agreement, and the related Subservicer (or OLS or any OFC-Owned Servicer as Servicer prior to the MSR Transfer Date) is an Eligible Subservicer and is in compliance with such Subservicing Agreement and, from and after the MSR
Transfer Date, OLS, any other OFC-Owned Servicer or another servicer acceptable to the Administrative Agent, shall be serving as “hot back-up servicer” for HLSS under an agreement approved by the Administrative Agent; 

  
 9 

 (vii) such Designated Servicing Agreement includes an express provision for the
assignment by the Servicer of its rights to be reimbursed for Advances (except in the case of Servicing Fee Advances); and, with respect to any Servicing Fee Advance Receivable, the related Servicing Fee Advance Designated Servicing Agreement does
not prohibit the sale and/or contribution to the Issuer of, specifically, the rights to reimbursement for the Servicing Fee Advances under the related MBS Trust (as determined, regardless of the terms contained in such Servicing Fee Advance
Designated Servicing Agreement, in the sole and absolute discretion of the Administrative Agent). 
 (viii) such Designated
Servicing Agreement arises under and is governed by the laws of the United States or a state within the United States; 

(ix) the Servicer has not voluntarily elected to change the reimbursement mechanics of Advances under such Designated Servicing
Agreement from a pool-level reimbursement mechanic to a loan-level reimbursement mechanic or from a loan-level reimbursement mechanic to a pool-level reimbursement mechanic without consent of each Administrative Agent; and 

(x) if such Designated Servicing Agreement is a subservicing agreement, the subservicing agreement and the related servicing or
master servicing agreement provide that: (1) Servicer, as subservicer, under such agreement, is required to make all Advances on Mortgage Loans subserviced by a Servicer; (2) Servicer, as subservicer under such agreement, is entitled to
reimbursement from all permitted sources under such Designated Servicing Agreement; (3) the related primary or master servicer agrees to remit to the Servicer, as subservicer, within two (2) Business Days of receipt thereof, any
collections and reimbursements of P&I Advances, Corporate Advances and Escrow Advances it receives, without set-off; and (4) the related primary or master servicer agrees to reasonably cooperate with the Servicer, as subservicer, to obtain
reimbursement of P&I Advances, Corporate Advances and Escrow Advances including, if either of such primary or master servicer or the Servicer, as subservicer, is terminated, by seeking immediate reimbursement therefor from the successor servicer
or, failing that, on a first-in-first-out basis. 
 “Federal Funds Rate” means, for any period, a fluctuating interest rate
per annum equal for each day during such period to the weighted average of the federal funds rates as quoted by the Administrative Agent and confirmed in Federal Reserve Board Statistical Release H. 15 (519) or any successor or
substitute publication selected by the Administrative Agent (or, if such day is not a Business Day, for the next preceding Business Day), or if, for any reason, such rate is not available on any day, the rate determined, in the sole opinion of the
Administrative Agent, to be the rate at which federal funds are being offered for sale in the national federal funds market at 9:00 a.m. (New York City time). 

  
 10 

 “Fee Letter” means that certain Fee Letter Agreement, dated as of
August 30, 2013, among the Administrative Agent, the sole lead arranger to such agreement, the Administrator, the Servicer and the Issuer. 

“General Reserve Required Amount” means with respect to any Payment Date or Interim Payment Date, as the case may be, for the
Series 2012-VF1 Notes, an amount equal to (i) on any Payment Date or Interim Payment Date prior to the end of the related Revolving Period, four months’ interest calculated on the Note Balance of each Class of Series 2012-VF1 Notes as of
such Payment Date or Interim Payment Date, as the case may be; and (ii) as of any Payment Date or Interim Payment Date following the last day of the related Revolving Period, the greater of (A) two month’s interest calculated on the
Note Balance of each Class of Series 2012-VF1 Notes immediately preceding the last day of the related Revolving Period, and (B) four months’ interest calculated on the Note Balance as of the close of business on such Payment Date or
Interim Payment Date, as the case may be. 
 “Governmental Authority” means the United States of America, any state or
other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and having jurisdiction over the applicable Person. 

“Increased Costs Limit” means for each Holder of a Series 2012-VF1 Note, such Holder’s pro rata percentage (based on the
Note Balance of such Holder’s Series 2012-VF1 Notes) of 0.10% of the average aggregate Note Balance for all Classes of Series 2012-VF1 Notes Outstanding for any twelve-month period. 

“Index” means, for any Class of the Series 2012-VF1 Notes, One-Month LIBOR, the Conduit Cost of Funds Rate or the Base Rate,
as specified for such Class in the definition of “Note Interest Rate.” 
 “Initial Note Balance” means, for any
Note or for any Class of Notes, the Note Balance of such Note upon issuance, or, on the Issuance Date in the case of the Series 2012-VF1 Notes, as follows: 
  

	 	(i)	Class A-VF3 Variable Funding Notes: $441,946,655.64; 

  

	 	(ii)	Class B-VF3 Variable Funding Notes: $49,096,059.55; 

  

	 	(iii)	Class C-VF3 Variable Funding Notes: $25,125,549.48; and 

  

	 	(iv)	Class D-VF3 Variable Funding Notes: $18,745,442.93. 

 For the avoidance of doubt, the
requirement for minimum bond denominations in Section 6.2 of the Base Indenture shall not apply in the case of the Series 2012-VF1 Notes. 

“Interest Accrual Period” means, for the Series 2012-VF1 Notes and any Payment Date, the period beginning on the immediately
preceding Payment Date (or, in the case of the first Payment Date, the Issuance Date) and ending on the day immediately preceding the current Payment Date. The Interest Payment Amount for the Series 2012-VF1 Notes on any Payment Date shall be
determined based on the actual number of days in the Interest Accrual Period. 

  
 11 

 “Interest Day Count Convention” means the actual number of days in the related
Interest Accrual Period divided by 360. 
 “Issuance Date” means August 30, 2013. 

“LIBOR” has the meaning assigned such term in Section 7 of this Indenture Supplement. 

“LIBOR Determination Date” means for each Interest Accrual Period, the second London Banking Day prior to the commencement of
such Interest Accrual Period. 
 “Liquidity Requirement” means the requirement that an entity have funds available to fund
servicer advances, as of the close of business on the last Business Day of each calendar month, beginning August 2013, in an amount at least equal to the lesser of (1) $100,000,000 and (2) the greater of (a) the sum of (i) 0.001%
of the aggregate unpaid principal balance of all mortgage loans sub-serviced by such entity (i.e., without an obligation to fund servicer advances) plus (ii) 0.01% of the aggregate unpaid principal balance of all mortgage loans serviced
by such entity (i.e., with the obligation to fund servicer advances) or as to which such entity holds rights to the servicing plus the obligation to fund servicer advances, plus (iii) 3.25% of the aggregate amount of all servicer
advances made by such entity that remain unreimbursed, and (b) $25,000,000; provided, that at least the greater of (1) $15,000,000 and (2) 50% of such funds available, must consist of unrestricted cash on deposit in accounts
held in the sole name of, and solely controlled by, such entity, free and clear of all Adverse Claims (including liens), and the remainder as undrawn and available borrowing capacity under committed servicer advance facilities and committed
unsecured revolving loans made to such entity as borrower, as determined on such date of measurement, which undrawn and available borrowing capacity need not be presently collateralized. 

“Loan-Level Advance Receivable” means a Receivable (other than a Servicing Fee Advance Receivable) relating to a Designated
Servicing Agreement identified on the Designated Servicing Agreement Schedule the provisions of which do not contain a General Collections Backstop with respect to the related Advances. 

“Loan-Level Receivable” means a Loan-Level Advance Receivable or Loan-Level Servicing Fee Advance Receivable. 

“Loan-Level Servicing Fee Advance Receivable”: A Servicing Fee Advance Receivable relating to a Servicing Fee Advance
Designated Servicing Agreement identified on the Servicing Fee Advance Designated Servicing Agreement Schedule the provisions of which do not contain a General Collections Backstop. 

“London Banking Day” means any day on which commercial banks and foreign exchange markets settle payment in both London and
New York City. 
 “Low Threshold Servicing Agreement” has the meaning assigned such term in Section 4 of this
Indenture Supplement. 

  
 12 

 “Margin” means, for each Class of the Series 2012-VF1 Notes, the per
annum rate set forth or determined as described below: 
  

	 	(a)	Class A-VF1 Variable Funding Notes: 1.10%; 

  

	 	(b)	Class B-VF1 Variable Funding Notes: 1.85%; 

  

	 	(c)	Class C-VF1 Variable Funding Notes: 2.10%; and 

  

	 	(d)	Class D-VF1 Variable Funding Notes: 3.40%; 

 provided, that the weighted average Margin
for the Series 2012-VF1 Notes shall not be less than 1.35% per annum. 
 “Market Value Ratio” means, as of any date
of determination with respect to a Designated Servicing Agreement, the ratio (expressed as a percentage) of (i) the lesser of (A) the Funded Advance Receivable Balance for such Designated Servicing Agreement on such date and (B) the
aggregate of all Facility Eligible Receivables under such Designated Servicing Agreement on such date over (ii) the aggregate Net Property Value of the Mortgaged Properties and REO Properties for the Mortgage Loans serviced under such
Designated Servicing Agreement on such date. 
 “Maximum VFN Principal Balance” means: (i) on any date of
determination, (A) for the Class A-VF1 Variable Funding Notes, $578,000,000, (B) for the Class B-VF1 Variable Funding Notes, $63,500,000, (C) for the Class C-VF1 Variable Funding Notes, $33,250,000, and (D) for the Class
D-VF1 Variable Funding Notes, $25,250,000; or (ii) in the case of each such Class on any date, such lesser amount calculated pursuant to a written agreement between the Servicer, the Administrator and the Administrative Agent. 

“Middle Threshold Servicing Agreement” has the meaning assigned such term in Section 4 of this Indenture
Supplement. 
 “Monthly Reimbursement Rate” means, as of any date of determination, the arithmetic average of the fractions
(expressed as percentages), determined for each of the three most recently concluded calendar months, obtained by dividing (i) the aggregate Advance Reimbursement Amounts collected by the Servicer and deposited into the Trust Accounts during
such month by (ii) the aggregate Receivable Balances funded by the Servicer using its own funds or facility funds as of the close of business on the last day of the Monthly Advance Collection Period. 

“Monthly Payment” means, with respect to any Mortgage Loan, the monthly scheduled principal and interest payments required to
be paid by the mortgagor on any due date with respect to such Mortgage Loan. 
 “Mortgage Loan” means a mortgage loan
transferred and assigned to an Underlying Trustee and serviced for such Underlying Trustee pursuant to a Servicing Agreement. 

  
 13 

 “Mortgage Loan-Level Market Value Ratio” means, as of any date of determination
with respect to a Mortgage Loan or REO Property that is secured by a first lien on the related Mortgaged Property, the ratio (expressed as a percentage) of (x) the aggregate Receivable Balance of all Receivables outstanding with respect to such
Mortgage Loan or REO Property on such date over (y) the Net Property Value of such Mortgaged Property or REO Property on such date. 

“MSRs” means mortgage servicing rights and rights to mortgage servicing rights, as applicable. 

“Net Proceeds Coverage Percentage” means, for any Payment Date, the percentage equivalent of a fraction, (i) the
numerator of which equals the amount of Collections on Receivables deposited into the Collection and Funding Account during the related Monthly Advance Collection Period, and (ii) the denominator of which equals the aggregate average
outstanding Note Balances of all Outstanding Notes during such Monthly Advance Collection Period. 
 “Net Property Value”
means, with respect to any Mortgaged Property, (A) with respect to a Mortgage Loan that is not Delinquent, the market value of such Mortgaged Property as established by OLS’s independent property valuation methodology (as established by
the lesser of any appraisal, broker’s price opinion or OLS’s automated valuation model with respect to such Mortgaged Property) or (B) with respect to a Mortgage Loan that is Delinquent, the product of (a) the market value of
such Mortgaged Property as established by OLS’s independent property valuation methodology (as established by the lesser of any appraisal, broker’s price opinion or OLS’s automated valuation model with respect to such Mortgaged
Property), multiplied by (b) OLS’s established market and property discount value rate, minus (c) OLS’s brokerage fee and closing costs with respect to such Mortgaged Property, plus (d) any projected mortgage insurance claim
proceeds. 
 “No-Payment at Termination Servicing Fee Advance Receivable”: A Servicing Fee Advance Receivable relating to a
Servicing Fee Advance Designated Servicing Agreement identified on the Servicing Fee Advance Designated Servicing Agreement Schedule the provisions of which do not require that all unpaid and accrued servicing fees owed to the Servicer be
repaid on or prior to the date of any involuntary transfer of servicing or any servicer termination. 
 “No-RAC Servicing
Agreements” shall have the meaning set forth in Section 11(b). 
 “Note Interest Rate” means, with respect to
any Interest Accrual Period for each Class of Notes, the rates described below: 
 (i) Class A-VF1 Variable Funding
Notes: the sum of (A) the Conduit Cost of Funds Rate for such Interest Accrual Period plus (B) the applicable Margin; 

(ii) Class B-VF1 Variable Funding Notes: the sum of (A) the Conduit Cost of Funds Rate for such Interest Accrual Period
plus (B) the applicable Margin; 

  
 14 

 (iii) Class C-VF1 Variable Funding Notes: the sum of (A) the Conduit Cost of
Funds Rate for such Interest Accrual Period plus (B) the applicable Margin; and 
 (iv) Class D-VF1 Variable
Funding Notes: the sum of (A) the Conduit Cost of Funds Rate for such Interest Accrual Period plus (B) the applicable Margin; 

provided that if, for any Interest Accrual Period, (a) the Conduit Cost of Funds Rate is not determinable, or (b) a
Eurodollar Disruption Event shall have occurred, the Note Interest Rate shall be the Base Rate plus the Margin. For the avoidance doubt, the “Note Interest Rate” for the Series 2012-VF1 Notes is subject to the definition of
“Note Interest Rate” in the Base Indenture. 
 “Note Rating Agency” means, for the Series 2012-VF1 Notes,
S&P. 
 “One-Month LIBOR” shall have the meaning assigned such term in Section 7 of this Indenture
Supplement. 
 “Prime Rate” means the rate announced by the Administrative Agent from time to time as its prime rate in the
United States, such rate to change as and when such designated rate changes. The Prime Rate is not intended to be the lowest rate of interest charged by the Administrative Agent in connection with extensions of credit to debtors. 

“Program Support Agreement” means any agreement entered into by any Program Support Provider providing for the issuance of
one or more letters of credit for the account of such Conduit Holder, the issuance of one or more surety bonds for which a Conduit Holder is obligated to reimburse the applicable Program Support Provider for any drawings thereunder, the sale by such
Conduit Holder to any Program Support Provider of the aggregate outstanding Note Balance (or portions thereof or participations therein) and/or the making of loans and/or other extensions of credit to such Conduit Holder in connection with such
Conduit Holder’s commercial paper program, together with any letter of credit, surety bond or other instrument issued thereunder. 

“Program Support Provider” means any Person now or hereafter extending credit or having a commitment to extend credit to or
for the account of, or to make purchases from, a Conduit Holder or issuing a letter of credit, surety bond or other instrument to support any obligations arising under or in connection with such Conduit Holder’s commercial paper program. 

“PSA Stressed Non-Recoverable Advance Amount” means as of any date of determination, the sum of: 

(i) for all Mortgage Loans that are current as of such date, the greater of (A) zero and (B) the excess of
(1) Total Advances related to such Mortgage Loans on such date over (2) (x) in the case of Mortgage Loans secured by a first lien, the product of 50% and the sum of all of the Net Property Values for the related Mortgaged Property or
(y) in the case of Mortgage Loans secured by a second or more junior lien, zero; and 

  
 15 

 (ii) for all Mortgage Loans that are delinquent as of such date, but not related
to property in foreclosure or REO Property, the greater of (A) zero and (B) the excess of (i) Total Advances related to such Mortgage Loans on such date over (ii) (x) in the case of Mortgage Loans secured by a first lien,
the product of 50% and the sum of all of the Net Property Values for the related Mortgaged Property or (y) in the case of Mortgage Loans secured by a second or more junior lien, zero; and 

(iii) for all Mortgage Loans that are related to properties in foreclosure, the greater of (A) zero and (B) the
excess of (1) Total Advances related to such Mortgage Loans on such date over (2) (x) in the case of Mortgage Loans secured by a first lien, the product of 50% and the sum of all of the Net Property Values for the related Mortgaged
Property or (y) in the case of Mortgage Loans secured by a second or more junior lien, zero; and 
 (iv) for all
Mortgage Loans that are related to REO Property, the greater of (A) zero and (B) the excess of (1) Total Advances related to such Mortgage Loans on such date over (2) (x) in the case of Mortgage Loans secured by a first
lien, the product of 50% and the sum of all of the Net Property Values for the related REO Property or (y) in the case of Mortgage Loans secured by a second or more junior lien, zero. 

“Redemption Percentage” means, for the Series 2012-VF1 Notes, 10%. 

“Reference Banks” has the meaning assigned to such term in Section 7 of this Indenture Supplement. 

“Regulatory Change” means (a) the adoption of any law, rule or regulation after the date hereof, (b) any change in
any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date hereof or (c) compliance by any Holder (or, for purposes of Section 8(a)(3), by any lending office of such
Holder or by such Holder’s holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Indenture Supplement. 

“Reserve Interest Rate” has the meaning assigned to such term in Section 7 of this Indenture Supplement. 

“Restricted Servicing Fee Advance Receivable”: Any Loan-Level Servicing Fee Advance Receivable or No-Payment at
Termination Servicing Fee Advance Receivable. 
 “Senior Margin”: means, with respect to each Class of Series 2012-VF2
Notes, a per annum rate set forth below: 
  

	 	(a)	Class A-VF2 Variable Funding Notes: 0.85%; 

  

	 	(b)	Class B-VF2 Variable Funding Notes: 1.20%; 

  

	 	(c)	Class C-VF2 Variable Funding Notes: 1.45%; and 

  

	 	(d)	Class D-VF2 Variable Funding Notes: 2.75%. 

  
 16 

 “Senior Rate” means, for each Class of the Series 2012-VF1 Notes, (a) the
lesser of the Conduit Cost of Funds Rate and One-Month LIBOR plus (b) the Senior Margin for such Class. 
 “Senior
Secured Term Loan Facility Agreement” means the Senior Secured Term Loan Facility Agreement, dated as of September 1, 2011, among OFC, as borrower, certain subsidiaries of OFC, as subsidiary guarantors, the lenders party thereto from
time to time and the Administrative Agent, as administrative agent and as collateral agent, as amended, supplemented, restated, or otherwise modified from time to time. 

“Series Fees” means, for the Series 2012-VF1 Notes and any Payment Date, the sum of (i) the VF1 Facility Fee and
(ii) the aggregate unreimbursed fees and expenses of the Administrative Agent. For the avoidance of doubt, there shall be no Series Fee Limit with respect to the Series 2012-VF1 Notes. 

“Series 2012-VF1 Note Balance” means the aggregate Note Balance of the Series 2012-VF1 Notes. 

“Series 2012-VF1 Note Purchase Agreement” means that certain Second Amended and Restated Note Purchase Agreement, dated as of
August 30, 2013, by and among the Issuer, Barclays, OLS and HLSS. 
 “Small Threshold Servicing Agreement” has the
meaning assigned such term in Section 4 of this Indenture Supplement. 
 “Stressed Interest Rate” means, for
any Class as of any date, the sum of (x) the per annum index on the basis of which such Class’s interest rate is determined for the current Interest Accrual Period, and (y) such Class’s Constant and (z) the product of
(I) such Class’s Coefficient and (II) Stressed Time, plus (ii) the weighted average per annum margin of all outstanding Classes that is added to the index to determine the interest rates for such Class. 

“Stressed Time” means, as of any date of determination, the percentage equivalent of a fraction, the numerator of which is
1, and the denominator of which equals the Stressed Time Percentage times the Monthly Reimbursement Rate on such date. 

“Stressed Time Percentage” means, for the Series 2012-VF1 Notes, Class A-VF1 Variable Funding Notes: 25.50%, Class B-VF1
Variable Funding Notes: 32.00%, Class C-VF1 Variable Funding Notes: 37.50%, and Class D-VF1 Variable Funding Notes: 43.50%. 

“Stated Maturity Date” means, for each Class of the Series 2012-VF1 Notes, thirty (30) years following the end of the
related Revolving Period. 
 “Target Amortization Amounts” means, for each Class of the Series 2012-VF1 Notes, 100% of the
Note Balance of such Class at the close of business on the last day of its Revolving Period, payable on the First Payment Date after the beginning of the Target Amortization Period. 

“Target Amortization Event” for the Series 2012-VF1 Notes, means the occurrence of any of the following conditions or events,
which is not waived by 100% of the Holders of the Series 2012-VF1 Notes: 

  
 17 

 (i) on any Payment Date, the arithmetic average of the Net Proceeds Coverage
Percentage determined for such Payment Date and the two preceding Payment Dates is less than five times the percentage equivalent of a fraction (A) the numerator of which equals the sum of the accrued Interest Payment Amounts for each Class of
all Outstanding Notes on such date and (B) the denominator of which equals the aggregate average Note Balances of each Class of Outstanding Notes during the related Monthly Advance Collection Period; 

(ii) the occurrence of one or more Servicer Termination Events under Designated Servicing Agreements representing 15% or more
(by Mortgage Loan balance as of the date of termination) of all the Designated Servicing Agreements then included in the Facility, but not including any Servicer Termination Events that are solely due to the breach of one or more Collateral
Performance Tests or a Servicer Ratings Downgrade or the transfer of subservicing of any such Designated Servicing Agreement without the prior written consent of the Administrative Agent; 

(iii) the Monthly Reimbursement Rate is less than 5.00%; 

(iv) the rating assigned to any Class of Notes is reduced below the Applicable Rating assigned to such Class of Notes; 

(v) as of the close of business on the last Business Day of any calendar month, beginning in August 2013, Home Loan Servicing
Solutions shall have failed to satisfy the Liquidity Requirement; 
 (vi) as of the close of business on the last Business
Day of any calendar month, beginning in August 2013, Home Loan Servicing Solutions shall have failed to satisfy the Adjusted Tangible Equity Requirement; 

(vii) as of any Payment Date, the average net income of Home Loan Servicing Solutions, determined in accordance with GAAP, for
any two consecutive fiscal quarters shall be less than $1.00; or 
 (viii) a “Target Amortization Period” shall
have occurred with respect to any Class of Variable Funding Notes or Draw Notes of any other Series. 
 “Target Amortization
Period” means, for any Class of Series 2012-VF1 Notes, as applicable, the period that begins upon the occurrence of an applicable Target Amortization Event and ends upon the earlier of (i) a Facility Early Amortization Event and
(ii) the date on which the Notes of such Class are paid in full. 
 “Transaction Documents” means, in addition to the
documents set forth in the definition thereof in the Base Indenture, this Indenture Supplement, the Series 2012-VF1 Note Purchase Agreement and the Fee Letter, each as amended, supplemented, restated or otherwise modified from time to time. 

“Trigger Advance Rate” means for any Class within the Series 2012-VF1 Notes, as of any date, the rate equal to (1) 100%
minus (2) the product of (a) one-twelfth (1/12) of the Stressed Interest Rate for such Class, as of such date, plus the related Expense Rate as of such date, multiplied by (b) the related Stressed Time for such
Class as of such Date. 

  
 18 

 “Underlying Trust” means a trust or trust estate in which the Mortgage Loans
being serviced by the Servicer pursuant to a Designated Servicing Agreement, are held in a securitization transaction by the related Underlying Trustee or held in whole loan form by an owner thereof. 

“Underlying Trustee” means a trustee or indenture trustee for an Underlying Trust. 

“Undrawn Fee Rate” means, with respect to each Class of the Series 2012-VF1 Notes and for each Interest Accrual Period,
0.50% per annum. 
 “VF1 Facility Fee” means the related Commitment Fee (as set forth in the Fee Letter) plus
an amount (as set forth in the Fee Letter), payable on each Payment Date during the Revolving Period, equal to the product of (i) the average daily Maximum VFN Principal Balance in effect during the related Interest Accrual Period with respect
to the Series 2012-VF1 Notes, (ii) 0.375% and (iii) 1/12, commencing on the Payment Date in September 2013; provided, that, if the Revolving Period ends with respect to the Series 2012-VF1 Notes prior to the related Expected Repayment
Date, on such date an amount equal to the “VF1 Facility Fee Remainder” (as such term is defined in the Fee Letter). 

Section 3. Forms of Series 2012-VF1 Notes. 

(a) The form of the Rule 144A Definitive Note and of the Regulation S Definitive Notes that may be used to evidence the Series 2012-VF1
Variable Funding Notes in the circumstances described in Section 5.4(c) of the Base Indenture are attached to the Base Indenture as Exhibits A-2 and A-4, respectively. 

(b) In addition to any provisions set forth in Section 6.5 of the Base Indenture, with respect to the Series 2012-VF1 Notes, the Holder
of any Class of such Notes shall only transfer its beneficial interest therein to another potential investor following receipt of the written consent of the related Administrative Agent; provided, however, that this Section 3(b) does not apply
to the transfer of a participation interest in a Series 2012-VF1 Note or the transfer of all or a portion of a Series 2012-VF1 Note that does not include a Commitment (as such term is defined in the Series 2012-VF1 Note Purchase Agreement) of the
Purchaser (as such term is defined in the Series 2012-VF1 Note Purchase Agreement) under the Series 2012-VF1 Note Purchase Agreement. The Indenture Trustee (in all of its capacities) shall not be responsible to monitor, and shall not have any
liability, for any such transfers of beneficial interests of participation interests. 
 Section 4. Collateral Value Exclusions.

 For purposes of calculating “Collateral Value” in respect of the Series 2012-VF1 Notes, the Collateral Value shall be
zero for any Receivable that: 
 (i) is attributable to any Designated Servicing Agreement to the extent that such
Receivable Balance, when added to the aggregate Receivable Balance already outstanding with respect to such Designated Servicing Agreement, would cause the related Advance Ratio to be equal to or greater than 100%; 

  
 19 

 (ii) is attributable to any Designated Servicing Agreement to the extent that
such Receivable Balance, when added to the aggregate Receivable Balance already outstanding with respect to such Designated Servicing Agreement, would cause the related Market Value Ratio to exceed 25%; 

(iii) is attributable to a Designated Servicing Agreement (i) for which the underlying Mortgage Loans have an unpaid
principal balance of less than $1,000,000 or (ii) that contains at least one (1) but fewer than fifteen (15) Mortgage Loans, as of the end of the most recently concluded calendar month (“Small Threshold Servicing
Agreements”), to the extent that such Receivables Balance, when added to the aggregate Receivables Balance of all Receivables outstanding with respect to Small Threshold Servicing Agreements, cause the total Receivables Balance attributable
to Small Threshold Servicing agreements to exceed 2.50% of the total Receivables Balances of all Receivables included in the Facility; 

(iv) is attributable to a Designated Servicing Agreement (i) for which the underlying Mortgage Loans have an unpaid
principal balance an unpaid principal balance greater than or equal to $1,000,000 but less than $10,000,000, or (ii) that contains at least 15 but fewer than 50 Mortgage Loans, as of the end of the most recently concluded calendar month
(“Low Threshold Servicing Agreement”), to the extent that such Receivable Balances, when added to the aggregate Receivable Balances of all Receivables outstanding with respect to Low Threshold Servicing Agreements, cause the total
Receivable Balances attributable to Small Threshold Servicing Agreements and Low Threshold Servicing Agreements, collectively, to exceed 7.50% of the total Receivable Balances of all Receivables included in the Facility; 

(v) is attributable to a Designated Servicing Agreement (i) for which the underlying Mortgage Loans have an unpaid
principal balance greater than or equal to $10,000,000 but less than $25,000,000, or (ii) that contains at least 50 but fewer than 125 Mortgage Loans, as of the end of the most recently concluded calendar month (“Middle Threshold
Servicing Agreement”), to the extent the Receivable Balance of such Receivable, when added to the aggregate Receivable Balances of all Receivables outstanding with respect to Middle Threshold Servicing Agreements, cause the total Receivable
Balances attributable to Small Threshold Servicing Agreements, Low Threshold Servicing Agreements and Middle Threshold Servicing Agreements, collectively, to exceed 15.00% of the aggregate of the Receivable Balances of all Receivables included in
the Facility; 
 (vi) is attributable to a Designated Servicing Agreement, to the extent that the Receivable Balance of such
Receivable, when added to the aggregate Receivable Balances outstanding with respect to that same Designated Servicing Agreement, would cause the total Receivable Balances attributable to such Designated Servicing Agreement to exceed 15% of the
aggregate of the Receivable Balances of all Receivables included in the Trust Estate; 

  
 20 

 (vii) unless the related Designated Servicing Agreement shall satisfy clause
(iii) and clause (viii) of the definition of “Facility Eligible Servicing Agreement” in the Base Indenture, is a Receivable attributable to an Exempted MBS Trust; provided, that, for the avoidance of doubt, the parties hereto are
not, pursuant to this Section 4(vii) and with respect to the Designated Servicing Agreements related to the Exempted MBS Trusts, waiving any failure to satisfy any other provision of the definition of “Facility Eligible Servicing
Agreement”; and 
 (viii) is a Loan-Level Receivable whose Receivable Balance, when added to the aggregate Receivable
Balances of all Receivables outstanding with respect to Loan-Level Advance Receivables, cause the total Receivable Balances attributable to Loan-Level Advance Receivables to exceed 15% of the total Receivable Balances of all Receivables included in
the Facility; 
 (ix) is a Servicing Fee Advance Receivable that the Administrative Agent has not provided its written
consent (in its sole and absolute discretion) for, notwithstanding the satisfaction of clause (xi) and (xii) of the definition of “Facility Eligible Receivable” and clause (viii) of the definition of “Facility Eligible
Servicing Agreement.” For the avoidance of doubt, for so long as the Administrative Agent determines that the Servicing Fee Advance Receivables related to any Servicing Fee Advance Designated Servicing Agreement cannot be afforded a positive
Collateral Value, the related Servicing Fee Advance Designated Servicing Agreement shall not be considered a Servicing Fee Advance Designated Servicing Agreement in respect of the Series 2012-VF1 Notes; 

(x) is a Loan-Level Servicing Fee Advance Receivable attributable to a Mortgaged Property, to the extent that the
Receivable Balance of such Receivable, when added to the aggregate Receivable Balance outstanding for all other Loan-Level Servicing Fee Advance Receivables with respect to such Mortgaged Property, causes the total
Receivable Balance for all Loan-Level Servicing Fee Advance Receivables to exceed 10% of the Net Property Value of such Mortgaged Property; 

(xi)(A) is a Loan-Level Receivable whose Receivable Balance, when added to the aggregate Receivable Balances of all Receivables
with respect to the related Mortgage Loan or REO Property, would cause the related Mortgage Loan-Level Market Value Ratio to exceed 50.0% or (B) is a Receivable related to a Mortgage Loan or REO Property that is attributable to a Small
Threshold Servicing Agreement whose Receivable Balance, when added to the aggregate Receivable Balances of all Receivables related to the Mortgage Loan or REO Property that is attributable to a Small Threshold Servicing Agreement, would cause the
related Mortgage Loan-Level Market Value Ratio to exceed 50.0%; 
 (xii) is a Restricted Servicing Fee Advance Receivable
attributable to a Servicing Fee Advance Designated Servicing Agreement, to the extent that the Receivable Balance of such Receivable, when added to the aggregate Receivable Balance outstanding for all other Restricted Servicing Fee
Advance Receivables with respect to all Servicing Fee Advance Designated Servicing Agreements, causes the total Receivable Balance for all Restricted Servicing Fee Advance Receivables to exceed 3.25% of the total Receivable Balance of all
Facility Eligible Receivables included in the Trust Estate; and 

  
 21 

 (xiii) is a Servicing Fee Advance Receivable which has not been reimbursed in
full under the related Facility Eligible Servicing Agreement as of the remittance date following the liquidation of the related Mortgage Loan and final reporting with respect thereto. 

Section 5. General Reserve Accounts. 

In accordance with the terms and provisions of this Section 5 and Section 4.6 of the Base Indenture, the Indenture Trustee shall
establish and maintain a General Reserve Account with respect to the Class A-VF1 Variable Funding Notes, the Class B-VF1 Variable Funding Notes, the Class C-VF1 Variable Funding Notes and the Class D-VF1 Variable Funding Notes, which shall be
an Eligible Account, for the benefit of the Class A-VF1 Variable Funding Noteholders, the Class B-VF1 Variable Funding Noteholders, the Class C-VF1 Variable Funding Noteholders and the Class D-VF1 Variable Funding Noteholders. In addition, the
parties hereto agree that the failure to pay any portion of any related Undrawn Fee Amount on any Payment Date shall constitute an Event of Default under Section 8.1(a)(i) of the Base Indenture. 

Section 6. Payments; Note Balance Increases; Early Maturity. 

The Paying Agent shall make payments of interest on the Series 2012-VF1 Notes on each Payment Date in accordance with Section 4.5 of the
Base Indenture and any payments of interest, Cumulative Interest Shortfall Amounts, or Fees or Increased Costs allocated to the Series 2012-VF1 Notes shall be paid first to the Class A-VF1 Variable Funding Notes, thereafter to the Class B-VF1
Variable Funding Notes, thereafter to the Class C-VF1 Variable Funding Notes and thereafter to the Class D-VF1 Variable Funding Notes. The Paying Agent shall make payments of principal on the Series 2012-VF1 Notes on each Interim Payment Date and
each Payment Date in accordance with Sections 4.4 and 4.5, respectively, of the Base Indenture (at the option of the Issuer in the case of requests during the Revolving Period for the Series 2012-VF1 Notes). The Note Balance of each Class of
the Series 2012-VF1 Notes may be increased from time to time on certain Funding Dates in accordance with the terms and provisions of Section 4.3 of the Base Indenture, but not in excess of the related Maximum VFN Principal Balance. 

In accordance with the terms and provisions of Section 4.5(a)(1)(ii) and Section 4.5(a)(2)(iii)(A) of the Base
Indenture, the Paying Agent shall allocate amounts related to all Series Fees for the Series 2012-VF1 Notes in the following order of priority: (i) first, to pay the applicable portion of the VF1 Facility Fee to Barclays, as Administrative
Agent; and (ii) second, pro rata, to pay all other fees and expenses related to the Series 2012-VF1 Notes. 
 Notwithstanding anything
to the contrary contained herein or in the Base Indenture, the Issuer may, upon at least five Business Days’ prior written notice to the Administrative Agent, redeem in whole or in part, and/or terminate and cause retirement of any of the
Series 2012-VF1 Notes at any time using proceeds of issuance of new Notes 
 The Series 2012-VF1 Notes are also subject to optional
redemption in accordance with the terms of Section 13.1 of the Base Indenture. 

  
 22 

 Any payments of principal allocated to the Series 2012-VF1 Notes during a Full Amortization
Period shall be applied in the following order of priority, first, to the Class A-VF1 Variable Funding Notes, until their Note Balance has been reduced to zero, second, to the Class B-VF1 Variable Funding Notes until their Note
Balance has been reduced to zero, third, to the Class C-VF1 Variable Funding Notes, until their Note Balance has been reduced to zero, and fourth, to the Class D-VF1 Variable Funding Notes, until their Note Balance has been reduced to
zero. 
 The Administrative Agent and the Holder of 100% of the Outstanding Notes further confirm that that the Series 2012-VF1 Notes issued
on the Effective Date pursuant to this Indenture Supplement shall be issued in the name of “Barclays Bank PLC, as Administrative Agent,” and the Administrative Agent and the Holder of 100% of the Outstanding Notes hereby direct the
Indenture Trustee to issue the Series 2012-VF1 Notes in the name of “Barclays Bank PLC, as Administrative Agent.” 

Section 7. Determination of Note Interest Rate and LIBOR. 

(a) At least one Business Day prior to each Determination Date, the Administrator shall calculate the Note Interest Rate for the related
Interest Accrual Period and the Interest Payment Amount for the Series 2012-VF1 Notes for the upcoming Payment Date, and include a report of such amount in the related Payment Date Report. 

(b) On each LIBOR Determination Date, the Administrative Agent will determine the arithmetic mean of the London Interbank Offered Rate
(“LIBOR”) quotations for one-month Eurodollar deposits (“One-Month LIBOR”) for the succeeding Interest Accrual Period for the Series 2012-VF1 Notes on the basis of the Reference Banks’ offered LIBOR quotations
provided to the Calculation Agent as of 11:00 a.m. (London time) on such LIBOR Determination Date. As used herein with respect to a LIBOR Determination Date, “Reference Banks” means leading banks engaged in transactions in
Eurodollar deposits in the international Eurocurrency market (i) with an established place of business in London, (ii) whose quotations appear on the Bloomberg Screen US0001M Index Page for the LIBOR Determination Date in question and
(iii) which have been designated as such by the Calculation Agent (after consultation with the Administrative Agent) and are able and willing to provide such quotations to the Calculation Agent for each LIBOR Determination Date; and
“Bloomberg Screen US0001M Index Page” means the display designated as page US0001M Index Page on the Bloomberg Financial Markets Commodities News (or such other pages as may replace such page on that service for the purpose of
displaying LIBOR quotations of major banks). If any Reference Bank should be removed from the Bloomberg Screen US0001M Index Page or in any other way fails to meet the qualifications of a Reference Bank, the Administrative Agent may, in its sole
discretion, designate an alternative Reference Bank. 
 If, for any LIBOR Determination Date, two or more of the Reference Banks provide
offered One-Month LIBOR quotations on the Bloomberg Screen US0001M Index Page, One-Month LIBOR for the next succeeding Interest Accrual Period for the Series 2012-VF1 Notes will be the arithmetic mean of such offered quotations (rounding such
arithmetic mean if necessary to the nearest five decimal places). 

  
 23 

 If, for any LIBOR Determination Date, only one or none of the Reference Banks provides such
offered One-Month LIBOR quotations for the next applicable Interest Accrual Period, One-Month LIBOR for the next Interest Accrual Period for the Series 2012-VF1 Notes will be the higher of (x) One-Month LIBOR as determined for the previous
LIBOR Determination Date and (y) the Reserve Interest Rate. The “Reserve Interest Rate” on any date of determination will be the rate per annum that the Administrative Agent determines to be either (A) the
arithmetic mean (rounding such arithmetic mean if necessary to the nearest five decimal places) of the one-month Eurodollar lending rate that New York City banks selected by the Administrative Agent are quoting, on the relevant LIBOR Determination
Date, to the principal London offices of at least two leading banks in the London Interbank market or (B) in the event that the Administrative Agent is unable to determine such arithmetic mean, the lowest one-month Eurodollar lending rate that
the New York City banks so selected by the Administrative Agent are quoting on such LIBOR Determination Date to leading European banks. 

If, on any LIBOR Determination Date, the Administrative Agent is required but is unable to determine the Reserve Interest Rate in the manner
provided in the preceding paragraph, One-Month LIBOR for the next applicable Interest Accrual Period will be One-Month LIBOR as determined for the previous LIBOR Determination Date. 

Notwithstanding the foregoing, One-Month LIBOR for an Interest Accrual Period shall not be based on One-Month LIBOR for the previous Interest
Accrual Period on the Series 2012-VF1 Notes for two consecutive LIBOR Determination Dates. If, under the priorities described above, One-Month LIBOR for an Interest Accrual Period on the Series 2012-VF1 Notes would be based on One-Month LIBOR for
the previous LIBOR Determination Date for the second consecutive LIBOR Determination Date, the Administrative Agent shall select an alternative index (over which the Administrative Agent has no control) used for determining one-month Eurodollar
lending rates that is calculated and published (or otherwise made available) by an independent third party, and this alternative index shall constitute One-Month LIBOR for all purposes under this Indenture Supplement in that event. 

(c) The establishment of One-Month LIBOR by the Administrative Agent and the Administrative Agent’s subsequent calculation of the Note
Interest Rate on the Series 2012-VF1 Notes for the relevant Interest Accrual Period, in the absence of manifest error, will be final and binding. 

Section 8. Increased Costs. 

(a) If any Regulatory Change or other requirement of any law, rule, regulation or order applicable to a Holder of a Series 2012-VF1 Note (a
“Requirement of Law”) or any change in the interpretation or application thereof or compliance by such Holder with any request or directive (whether or not having the force of law) from any central bank or other governmental authority made
subsequent to the date hereof: 
 (1) shall subject such Holder to any tax of any kind whatsoever with respect to its Series
2012-VF1 Note (excluding income taxes, branch profits taxes, franchise taxes or similar taxes imposed on such Holder as a result of any present or former connection between such Holder and the United States, other than any such connection

  
 24 

 
arising solely from such Holder having executed, delivered or performed its obligations or received a payment under, or enforced, this Indenture Supplement or any U.S. federal withholding taxes
imposed under Code sections 1471 through 1474 as of the date of this Indenture (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any regulations or official interpretations
thereunder and any agreements entered into under 1471(b) of the Code or any U.S. federal withholding taxes imposed as a result of a failure by such Noteholder to timely furnish the Indenture Trustee on behalf of the Issuer any applicable IRS Form
W-9, W-8BEN, W-8ECI or W-8IMY (with any applicable attachments)) or change the basis of taxation of payments to such Holder in respect thereof; shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar
requirement against assets held by, deposits or other liabilities in or for the account of, advances, or other extensions of credit by, or any other acquisition of funds by, any office of such Holder which is not otherwise included in the
determination of the Note Interest Rate hereunder; or 
 (2) shall impose, modify or hold applicable any reserve, special
deposit, compulsory loan, insurance charge or similar requirement against assets held by, deposits or other liabilities in or for the account of, advances, or credit extended or participated by, or any other acquisition of funds by, any office of
such Holder which is not otherwise included in the determination of the Note Interest Rate hereunder; or 
 (3) shall have
the effect of reducing the rate of return on such Holder’s capital or on the capital of such Holder’s holding company, if any, as a consequence of this Indenture Supplement, the Series 2012-VF1 Note Purchase Agreement or the Series
2012-VF1 Notes to a level below that which such Holder or such Holder’s holding company could have achieved but for such Requirement of Law (other than any Regulatory Change, Requirement of Law, interpretation or application thereof, request or
directive with respect to taxes) (taking into consideration such Holder’s policies and the policies of such Holder’s holding company with respect to capital adequacy); or 

(4) shall impose on such Holder or the London interbank market any other condition, cost or expense (other than with respect to
taxes) affecting this Indenture Supplement, the Series 2012-VF1 Note Purchase Agreement or the Series 2012-VF1 Notes or any participation therein; or 

(5) shall impose on such Holder any other condition; 

and the result of any of the foregoing is to increase the cost to such Holder, by an amount which such Holder deems to be material, of
continuing to hold its Series 2012-VF1 Notes, of maintaining its obligations with respect thereto, or to reduce any amount due or owing hereunder in respect thereof, or to reduce the amount of any sum received or receivable by such Holder (whether
of principal, interest or any other amount) or (in the case of any change in a Requirement of Law regarding capital adequacy or liquidity requirements or in the interpretation or application thereof or compliance by such Holder or any Person
controlling such Holder with any request or directive regarding capital adequacy or liquidity requirements (whether or not having the force of law) from any 

  
 25 

 
governmental or quasi-governmental authority made subsequent to the date hereof) shall have the effect of reducing the rate of return on such Holder’s or such controlling Person’s
capital as a consequence of its obligations as a Holder of a Variable Funding Note to a level below that which such Holder or such controlling Person could have achieved but for such adoption, change or compliance (taking into consideration such
Holder’s or such controlling Person’s policies with respect to capital adequacy) by an amount deemed by such Holder to be material, then, in any such case, such Holder shall invoice the Administrator for such additional amount or amounts
as calculated by such Holder in good faith as will compensate such Holder for such increased cost or reduced amount, and such invoiced amount shall be payable to such Holder on the Payment Date following the next Determination Date following such
invoice, in accordance with Section 4.5(a)(1)(ii) or Section 4.5(a)(2)(ii) of the Base Indenture, as applicable; provided, however, that any amount of Increased Costs in excess of the Increased Cost Limit shall be payable to such Holder in
accordance with Section 4.5(a)(1)(viii) or Section 4.5(a)(2)(vi) of the Base Indenture, as applicable. 
 (b) Increased Costs
payable under this Section 8 shall be payable on a Payment Date only to the extent invoiced to the Indenture Trustee prior to the related Determination Date.” 

Section 9. Series Reports. 

(a) Series Calculation Agent Report. The Calculation Agent shall deliver a report of the following items together with each Calculation
Agent Report pursuant to Section 3.1 of the Base Indenture to the extent received from the Servicer, with respect to the Series 2012-VF1 Notes: 

(i) the unpaid principal balance of the Mortgage Loans subject to any Small Threshold Servicing Agreement, Low Threshold
Servicing Agreement and Middle Threshold Servicing Agreement; 
 (ii) the Advance Ratio for each Designated Servicing
Agreement, and whether the Advance Ratio for such Designated Servicing Agreement exceeds 100%; 
 (iii) the Market Value
Ratio for each Designated Servicing Agreement, and whether the Market Value Ratio for such Designated Servicing Agreement exceeds 25%; 

(iv) the aggregate Receivables Balance of all Loan-Level Receivables included in the Trust Estate and whether the percentage of
Loan-Level Receivables included in the Trust Estate exceeds 10% or causes the Mortgage Loan-Level Market Value Ratio for Loan-Level Receivables to exceed 50%; 

(v) the aggregate Receivables Balance of all Restricted Servicing Fee Receivables included in the Trust Estate and whether the
percentage of Restricted Servicing Fee Receivables included in the Trust Estate exceeds 3.25%; 
 (vi) for each Middle
Threshold Servicing Agreement, as of the end of the most recently concluded calendar month, the aggregate of the Funded Advance Receivable Balances of all Receivables attributable to such Designated Servicing Agreement as a percentage of the
aggregate of the Funded Advance Receivable Balances of all Receivables included in the Trust Estate; 

  
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 (vii) for each Low Threshold Servicing Agreement, as of the end of the most
recently concluded calendar month, the aggregate of the Funded Advance Receivable Balances of all Receivables attributable to such Designated Servicing Agreement as a percentage of the aggregate of the Funded Advance Receivable Balances of all
Receivables included in the Trust Estate; 
 (viii) for each Small Threshold Servicing Agreement, as of the end of the most
recently concluded calendar month, the aggregate of the Funded Advance Receivable Balances of all Receivables attributable to such Designated Servicing Agreement as a percentage of the aggregate of the Funded Advance Receivable Balances of all
Receivables included in the Trust Estate; 
 (ix) a list of each Target Amortization Event for the Series 2012-VF1 Notes and
presenting a yes or no answer beside each indicating whether each such Target Amortization Event has occurred as of the end of the Monthly Advance Collection Period preceding the upcoming Payment Date or the Advance Collection Period preceding the
upcoming Interim Payment Date. 
 (x) whether any Receivable, or any portion of the Receivables, attributable to a Designated
Servicing Agreement, has zero Collateral Value by virtue of the definition of “Collateral Value” or Section 4 of this Indenture Supplement, and indicating the related provision affecting such Receivable; 

(xi) a calculation of the Net Proceeds Coverage Percentage in respect of each of the three preceding Monthly Advance Collection
Periods (or each that has occurred since the date of this Indenture Supplement, if less than three), and the arithmetic average of the three; 

(xii) the Monthly Reimbursement Rate for the upcoming Payment Date or Interim Payment Date; 

(xiii) whether any Target Amortization Amount that has become due and payable has been paid; 

(xiv) the PSA Stressed Non-Recoverable Advance Amount for the upcoming Payment Date or Interim Payment Date; and 

(xv) the Trigger Advance Rate for each Class. 

(b) Series Payment Date Report. In conjunction with each Payment Date Report, the Indenture Trustee shall also report the Stressed Time
Percentage. 
 (c) Limitation on Indenture Trustee Duties. The Indenture Trustee shall have no independent duty to verify:
(i) the Adjusted Tangible Equity, the occurrence of any of the events described in clause (ii), (v), (vi) and (vii) of the definition of “Target Amortization Event,” (iii)

  
 27 

 
compliance with clause (vi) of the definition of “Facility Eligible Servicing Agreement” and (iv) that all Series 2012-VF1 Notes meet the criteria set forth in the last
proviso of the definition of “Note Interest Rate.” 
 Section 10. Conditions Precedent Satisfied. 

(a) The Issuer hereby represents and warrants to the Holders of the Series 2012-VF1 Notes and the Indenture Trustee that, as of the related
Issuance Date, each of the conditions precedent set forth in the Base Indenture, including but not limited to those conditions precedent set forth in Section 6.10(a) thereof, have been satisfied. 

(b) On any MSR Transfer Date, HLSS shall deliver to the Indenture Trustee an MSR Transfer Notice signed by OLS and HLSS; provided, however,
that the Issuer, Administrative Agent, Servicer and the Administrator each acknowledge and agree that with respect to each Designated Servicing Agreement related to the No-RAC MBS Trusts (the “No-RAC Servicing Agreements”), the
Servicer currently acts as primary servicer of each such No-RAC Servicing Agreement, notwithstanding that the Servicer may not have received all of the rating agency confirmation letters specified that are required under such No-RAC Servicing
Agreements to effect a definitive transfer to the Servicer of the related servicing rights and role of primary servicer. Notwithstanding anything to the contrary herein or in the other Transaction Documents (i) it is intended that
Receivables related to the No-RAC Servicing Agreements be eligible for financing under this Indenture Supplement and the other Transaction Documents notwithstanding the failure of the related transfer conditions set forth above to be satisfied,
(ii) the No-RAC Servicing Agreements shall not fail to be Facility Eligible Servicing Agreements solely as a result of the failure of such transfer conditions to be satisfied, (iii) Receivables related to the No-RAC Servicing Agreements
shall not fail to be Facility Eligible Receivables solely as a result of the failure of such transfer conditions to be satisfied and (iv) the failure of such transfer conditions to be satisfied shall not be deemed to constitute, cause or
otherwise give rise to a breach, default, Event of Default, Facility Early Amortization Event, Target Amortization Event, Servicer Termination Event or similar event under this Indenture Supplement, the Base Indenture or the other Transaction
Documents, in each case so long as the Servicer has not received a notice of termination with respect to any such No-RAC Servicing Agreement from any Person entitled to deliver such notice under such No-RAC Servicing Agreement. 

Section 11. Representation and Warranties. 

(a) The Issuer, the Administrator, the Servicer and the Indenture Trustee hereby restate as of the related Issuance Date, or as of such other
date as is specifically referenced in the body of such representation and warranty, all of the representations and warranties set forth in Sections 9.1, 10.1 and 11.14, respectively, of the Base Indenture. 

(b) On any MSR Transfer Date, HLSS shall deliver to the Indenture Trustee an MSR Transfer Notice signed by OLS and HLSS; provided, however,
that the Issuer, Administrative Agent, Servicer and Administrator each acknowledge and agree that with respect to each Designated Servicing Agreement related to the No-RAC MBS Trusts (the “No-RAC Servicing Agreements”), the Servicer
currently acts as primary servicer of each such No-RAC Servicing Agreement, notwithstanding that the Servicer may not have received all of the rating agency 

  
 28 

 
confirmation letters specified that are required under such No-RAC Servicing Agreements to effect a definitive transfer to the Servicer of the related servicing rights and role of primary
servicer. Notwithstanding anything to the contrary herein or in the other Transaction Documents (i) it is intended that Receivables related to the No-RAC Servicing Agreements be eligible for financing under this Indenture Supplement and the
other Transaction Documents notwithstanding the failure of the related transfer conditions set forth above to be satisfied, (ii) the No-RAC Servicing Agreements shall not fail to be Facility Eligible Servicing Agreements solely as a result of
the failure of such transfer conditions to be satisfied, (iii) Receivables related to the No-RAC Servicing Agreements shall not fail to be Facility Eligible Receivables solely as a result of the failure of such transfer conditions to be
satisfied and (iv) the failure of such transfer conditions to be satisfied shall not be deemed to constitute, cause or otherwise give rise to a breach, default, Event of Default, Facility Early Amortization Event, Target Amortization Event,
Servicer Termination Event or similar event under this Indenture Supplement, the Base Indenture or the other Transaction Documents, in each case so long as the Servicer has not received a notice of termination with respect to any such No-RAC
Servicing Agreement from any Person entitled to deliver such notice under such No-RAC Servicing Agreement. 
 Section 12.
Amendments. 
 (a) Notwithstanding any provisions to the contrary in Article XII of the Base Indenture, and in addition to and otherwise
subject to the provisions set forth in Sections 12.1 and 12.3 of the Base Indenture, without the consent of the Holders of any Notes or any other Person but with the consent of the Issuer (evidenced by its execution of such amendment), the Indenture
Trustee, the Administrator, the Servicer, the Subservicer (whose consent shall be required only to the extent that such amendment would materially affect the Subservicer) and the Administrative Agent, and with prior notice to the applicable Note
Rating Agency, at any time and from time to time, upon delivery of an Issuer Tax Opinion and upon delivery by the Issuer to the Indenture Trustee of an Officer’s Certificate to the effect that the Issuer reasonably believes that such amendment
will not have an Adverse Effect, may amend this Indenture Supplement for any of the following purposes: (i) to correct any mistake or typographical error or cure any ambiguity, or to cure, correct or supplement any defective or inconsistent
provision herein or any other Transaction Document; (ii) to take any action necessary to maintain the rating currently assigned by the applicable Note Rating Agency to and/or to avoid such Class of Notes being placed on negative watch by such
Note Rating Agency; or (iii) to amend any other provision of this Indenture Supplement. 
 (b) Notwithstanding any provisions to the
contrary in Section 6.10 or Article XII of the Base Indenture, no supplement, amendment or indenture supplement entered into with the respect to the issuance of a new Series of Notes or pursuant to the terms and provisions of Section 12.2
of the Base Indenture may, without the consent of 66 2/3% of the Series 2012-VF1 Notes (including 100% of the Class A-VF1 Variable Funding Notes), supplement, amend or revise any term or provision of this Indenture Supplement. 

  
 29 

 Section 13. Counterparts. 

This Indenture Supplement may be executed in any number of counterparts, by manual or facsimile signature, each of which so executed shall be
deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument. 
 Section 14.
Entire Agreement. 
 This Indenture Supplement, together with the Base Indenture incorporated herein by reference, constitutes the entire
agreement among the parties hereto with respect to the subject matter hereof, and fully supersedes any prior or contemporaneous agreements relating to such subject matter. 

Section 15. Limited Recourse. 

(a) Reimbursement of Advances upon Transfer of Servicing. In connection with any sale or other voluntary transfer of servicing under any
Designated Servicing Agreement (not including any transfer resulting from the succession of another Person to the business of the Servicer) or removal of the Seller as Servicer with respect to any of the No-RAC Servicing Agreements (set forth on
Schedule 1) by the related Underlying Trustee on account of a failure to satisfy any condition to transfer of servicing requiring rating agency confirmation with respect thereto, the Servicer shall cause the Subservicer to collect reimbursement of
all outstanding Advances under such Designated Servicing Agreement prior to transferring the servicing under such Designated Servicing Agreement. 

(b) Other than as expressly provided in this Indenture Supplement, the Series 2012-VF1 Notes, any other Transaction Documents or otherwise,
the obligations of the Issuer under the Series 2012-VF1 Notes, this Indenture Supplement and each other Transaction Document to which it is a party are limited recourse obligations of the Issuer, payable solely from the Trust Estate, and following
realization of the Trust Estate and application of the proceeds thereof in accordance with the terms of this Indenture Supplement, none of the Holders of Series 2012-VF1 Notes, the Indenture Trustee or any of the other parties to the Transaction
Documents shall be entitled to take any further steps to recover any sums due but still unpaid hereunder or thereunder, all claims in respect of which shall be extinguished and shall not thereafter revive. No recourse shall be had for the payment of
any amount owing in respect of the Series 2012-VF1 Notes or this Indenture Supplement or for any action or inaction of the Issuer against any officer, director, employee, shareholder, stockholder or incorporator of the Issuer or any of their
successors or assigns for any amounts payable under the Series 2012-VF1 Notes or this Indenture Supplement. 
 (c) It is understood that the
foregoing provisions of this Section 16 shall not (a) prevent recourse to the Trust Estate for the sums due or to become due under any security, instrument or agreement which is part of the Trust Estate or (b) save as
specifically provided therein, constitute a waiver, release or discharge of any indebtedness or obligation evidenced by the Series 2012-VF1 Notes or secured by this Indenture Supplement. It is further understood that the foregoing provisions of this
Section 16 shall not limit the right of any Person to name the Issuer as a party defendant in any proceeding or in the exercise of any other remedy under the 

  
 30 

 
Series 2012-VF1 Notes or this Indenture Supplement, so long as no judgment in the nature of a deficiency judgment or seeking personal liability shall be asked for or (if obtained) enforced
against any such Person or entity. 
 Section 16. Owner Trustee Limitation of Liability. 

It is expressly understood and agreed by the parties hereto that (a) this Indenture Supplement is executed and delivered by Wilmington
Trust Company, not individually or personally, but solely as Owner Trustee of the Issuer under the Trust Agreement, in the exercise of the powers and authority conferred and vested in it, (b) each of the representations, undertakings and
agreements herein made on the part of the Issuer is made and intended not as a personal representation, undertaking and agreement by Wilmington Trust Company but is made and intended for the purpose of binding only the Issuer, (c) nothing
herein contained shall be construed as creating any liability on Wilmington Trust Company, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the
parties hereto and by any Person claiming by, through or under the parties hereto and (d) under no circumstances shall Wilmington Trust Company be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for
the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Indenture Supplement or the other Transaction Documents. 

  
 31 

 IN WITNESS WHEREOF, HLSS Servicer Advance Receivables Trust, as Issuer, HLSS Holdings, LLC
(as Administrator on behalf of the Issuer and as Servicer (on and after the MSR Transfer Date)), Ocwen Loan Servicing, LLC (as Servicer (prior to the MSR Transfer Date)), Deutsche Bank National Trust Company, as Indenture Trustee, Calculation
Agent, Paying Agent and Securities Intermediary, and Barclays Bank PLC, as Administrative Agent, have caused this Indenture Supplement relating to the Series 2012-VF1 Notes, to be duly executed by their
respective officers thereunto duly authorized and their respective signatures duly attested all as of the day and year first above written. 
  

													
	 HLSS SERVICER ADVANCE

RECEIVABLES TRUST, as Issuer
	 	 DEUTSCHE BANK NATIONAL TRUST

COMPANY, as Indenture Trustee, Calculation

	  
 By: Wilmington Trust Company, not in its individual

capacity but solely as Owner Trustee
	 	 Agent, Paying Agent and Securities Intermediary

and not in its individual capacity

					
	By:	 	/s/ Yvette L. Howell	 		 	By:	 	/s/ Amy McNulty
		 	Name:	 	Yvette L. Howell	 		 		 	Name:	 	Amy McNulty
		 	Title:	 	Assistant Vice President	 		 		 	Title:	 	Associate
						
		 		 		 		 	By:	 	/s/ Cindy Lai
		 		 		 		 		 	Name:	 	Cindy Lai
		 		 		 		 		 	Title:	 	Assistant Vice President
		
	 HLSS HOLDINGS, LLC, as Administrator and as

Servicer (on or after the MSR Transfer Date)
	 	 OCWEN LOAN SERVICING, LLC, as a Subservicer

and as Servicer (prior to the MSR Transfer Date)

					
	By:	 	/s/ Richard Delgado	 		 	By:	 	/s/ Nikhil Malik
		 	Name:	 	Richard Delgado	 		 		 	Name:	 	Nikhil Malik
		 	Title:	 	Senior Vice President and Treasurer	 		 		 	Title:	 	Treasurer
				
	 BARCLAYS BANK PLC, as Administrative Agent)
	 		 		 	
						
	By:	 	/s/ Joseph O’Doherty	 		 		 		 	
		 	Name:	 	Joseph O’Doherty	 		 		 		 	
		 	Title:	 	Managing Director	 		 		 		 	

 [Signature Page to Indenture Supplement
 ̈ HLSS Series 2012-VF1 Notes] 

 Schedule 1 

No-RAC Servicing Agreements 
  

			
	 Investor No.
	  	Investor Name
	 3436
	  	C-BASS 2006-CB7
	 3038
	  	CMLTI 2007-AMC3
	 3099
	  	Fremont 2006-2
	 3162
	  	GSAMP 2007-H1
	 3164
	  	GSAMP 2007-HE2

 [Signature Page to Indenture Supplement  ̈ HLSS
Series 2012-VF1 Notes]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00222-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00222-of-00352.parquet"}]]