Document:

EX-10.3

 Exhibit 10.3 
 EXECUTION COPY 
 SEVENTH AMENDMENT TO THIRD AMENDED AND RESTATED

 RECEIVABLES PURCHASE AGREEMENT 
 THIS SEVENTH AMENDMENT TO THIRD AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT (this “Amendment”), dated as of December 11, 2012, is entered into among WESCO RECEIVABLES CORP.
(the “Seller”), WESCO DISTRIBUTION, INC. (“WESCO” or the “Servicer”), the Purchasers (each, a “Purchaser”) and Purchaser Agents (each, a “Purchaser Agent”) party
hereto, and PNC BANK, NATIONAL ASSOCIATION (“PNC”), as Administrator (the “Administrator”). 

RECITALS 

1. The Seller, the Servicer, each Purchaser, each Purchaser Agent and the Administrator are parties to the Third Amended and Restated
Receivables Purchase Agreement, dated as of April 13, 2009 (as amended through the date hereof, the “Agreement”). 
 2. Concurrently herewith, the Seller, the Servicer, the Administrator, Market Street Funding LLC and PNC are entering into that certain Letter Agreement Re: Commitment Increase (the “Letter
Agreement”), dated as of the date hereof. 
 3. In connection herewith, (i) WESCO and certain of its Subsidiaries
and Affiliates are entering into that certain Term Loan Agreement, dated as of the date hereof, with Credit Suisse AG, Cayman Islands Branch and certain other parties and (ii) in connection therewith, the Administrator, JPMorgan Chase Bank,
N.A., Credit Suisse AG, Cayman Islands Branch, the Seller, WESCO and certain other parties are entering into that certain Amended and Restated Intercreditor Agreement (the “Intercreditor Agreement”), dated as of the date hereof.

 4. Concurrently herewith, the Seller, the Servicer, the Administrator and The PrivateBank and Trust Company (“Private
Bank”) are entering into that certain Payoff Letter (the “Payoff Letter”), dated as of the date hereof. 
 5. The parties hereto desire to amend the Agreement as hereinafter set forth. 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows: 
 1. Certain Defined Terms. Capitalized terms that are used herein without definition
and that are defined in Exhibit I to the Agreement shall have the same meanings herein as therein defined. 
 2.
Amendments to the Agreement. The Agreement is hereby amended as follows: 
 (a) In connection with
the Payoff Letter, each reference to “The PrivateBank and Trust Company” (or words to similar effect) set forth in the Agreement is hereby deleted in its entirety. 

 (b) The following new defined terms are hereby added to Exhibit I to
the Agreement in appropriate alphabetical order: 
 “Credit Suisse” means Credit Suisse AG,
Cayman Islands Branch. 
 “Term Loan Agreement” means that certain Term Loan Agreement, dated on
or about December 12, 2012, among WESCO, certain Subsidiaries and Affiliates of WESCO, Credit Suisse and the other Persons from time to time parties thereto, as amended, restated, supplemented or otherwise modified from time to time.

 (c) The definition of “Change in Control” set forth on Exhibit I to the Agreement is
hereby replaced in its entirety with the following: 
 “Change in Control” means
(i) Holdings ceases to own, directly or indirectly, 100% of the capital stock of WESCO or (ii) WESCO ceases to own, directly or indirectly (including through one or more of its Subsidiaries), (a) 100% of the capital stock of the
Seller free and clear of all Adverse Claims or (b) a majority of the capital stock of any Originator, in the case of each of (i) and (ii) above, free and clear of all Adverse Claims other than the pledges or grants of security
interest by WESCO or one or more of its Subsidiaries to (x) JPMorgan, as agent for itself and various lenders pursuant to one or more pledge agreements and security agreements as required under the Credit Agreement as such pledge agreements or
security agreements may be amended, restated, supplemented or otherwise modified from time to time or (y) Credit Suisse, as agent for itself and various lenders pursuant to one or more pledge agreements and security agreements as required under
the Term Loan Agreement as such pledge agreements or security agreements may be amended, restated, supplemented or otherwise modified from time to time. 
 (d) The definition of “Excluded Receivable” set forth on Exhibit I to the Agreement is hereby replaced in its entirety with the following: 

“Excluded Receivable” means any Receivable (without giving effect to the exclusion of “Excluded
Receivables” from the definition thereof) (i) owed by an Obligor not a resident of the United States and denominated in a currency other than U.S. dollars, (ii) originated by the Tampa Major Projects Branch, identified on WESCO’s
system as Branch No. 3840, (iii) originated by Communications Supply Corporation, the Obligor of which is The Stanley Works Co., (iv) originated by an Originator at any time after July 31, 2012, the Obligor of which is Siemens AG
or any Subsidiary thereof or (v) originated by an Originator, the Obligor of which is Stanley Black & Decker, Inc. 

  
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 (e) The definition of “Intercreditor Agreement” set forth
on Exhibit I to the Agreement is hereby replaced in its entirety with the following: 

“Intercreditor Agreement” means that certain Amended and Restated Intercreditor Agreement, dated on or
about December 12, 2012, by and among the Administrator, as receivables agent, JPMorgan, as ABL lenders agent, Credit Suisse, as term lenders agent, WESCO, the Seller, and the other Persons party thereto, as amended, restated, supplemented or
otherwise modified from time to time. 
 (f) Schedule VI to the Agreement is hereby replaced in its
entirety as attached hereto. 
 3. Consent. Each of the parties hereto hereby consents to the execution, delivery
and performance of each of (a) the Intercreditor Agreement, a copy of which is attached hereto as Exhibit A and (b) the Payoff Letter, a copy of which is attached hereto as Exhibit B. 

4. Acknowledgements and Agreements. Notwithstanding anything to the contrary set forth in the Agreement, each of the
parties hereto hereby acknowledge and agree that: 
 (a) solely on a one time basis on the date hereof (and
subject to the satisfaction of each of the conditions set forth in Exhibit II to the Agreement), each of (i) the Purchaser Group that includes PNC and (ii) the Purchaser Group that includes Wells, shall make a non-pro rata
Purchase in the amount set forth opposite its name on Exhibit C hereto; 
 (b) solely on a one time basis
on the date hereof, the Seller shall make a non-pro rata paydown to cause the reduction of the Investment of each of (i) the Purchaser Group that include Fifth Third, (ii) the Purchaser Group that include U.S. Bank National Association,
(iii) the Purchaser Group that includes The Huntington National Bank and (iv) PrivateBank, in the amount set forth opposite its name on Exhibit C hereto; and 

(c) after giving effect to such non-pro rata Purchases and non-pro rata paydown, the Investment of each Purchaser (solely
as of the date hereof and after giving effect to the non-pro rata Purchases and payments described above) shall be the amount set forth opposite its name on Exhibit C hereto. 

5. Representations and Warranties. The Seller and the Servicer hereby represent and warrant to each of the parties hereto
as follows: 
 (a) Representations and Warranties. The representations and warranties contained in
Exhibit III of the Agreement are true and correct as of the date hereof. 
 (b) No Default.
Both before and immediately after giving effect to this Amendment and the transactions contemplated hereby, no Termination Event or Unmatured Termination Event exists or shall exist. 

  
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 6. Effect of Amendment. All provisions of the Agreement, as expressly amended
and modified by this Amendment shall remain in full force and effect. As of and after the Effective Time, all references in the Agreement (or in any other Transaction Document) to “this Agreement”, “hereof”, “herein” or
words of similar effect referring to the Agreement shall be deemed to be references to the Agreement as amended by this Amendment. This Amendment shall not be deemed, either expressly or impliedly, to waive, amend or supplement any provision of the
Agreement other than as set forth herein. 
 7. Effectiveness. This Amendment shall become effective as of the
time (the “Effective Time”) at which the Administrator has executed this Amendment and receives each of the following: (A) counterparts of this Amendment (whether by facsimile or otherwise) executed by each of the other parties
hereto, in form and substance satisfactory to the Administrator in its sole discretion, (B) counterparts of the Letter Agreement (whether by facsimile or otherwise) executed by each of the parties thereto, in form and substance satisfactory to
the Administrator in its sole discretion, (C) counterparts of the Intercreditor Agreement (whether by facsimile or otherwise) executed by each of the parties thereto, in form and substance reasonably satisfactory to the Administrator,
(D) counterparts of the Payoff Letter (whether by facsimile or otherwise) executed by each of the parties thereto, in form and substance reasonably satisfactory to the Administrator, (E) confirmation from PrivateBank that the amounts owing
to PrivateBank under the Payoff Letter have been paid in accordance with the terms of the Payoff Letter and (F) such other agreements, documents, instruments and opinions as the Administrator may request. 

8. Counterparts. This Amendment may be executed in any number of counterparts and by different parties on separate
counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument. 
 9. Governing Law; Jurisdiction. 
 9.1 THIS AMENDMENT
SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). 

9.2 ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AMENDMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW
YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK; AND, BY EXECUTION AND DELIVERY OF THIS AMENDMENT, EACH OF THE PARTIES HERETO CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS.
EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, THAT IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AMENDMENT OR ANY DOCUMENT RELATED HERETO. EACH OF THE PARTIES HERETO WAIVES PERSONAL SERVICE OF ANY 

  
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SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH SERVICE MAY BE MADE BY ANY OTHER MEANS PERMITTED BY NEW YORK LAW. 
 10. Section Headings. The various headings of this Amendment are included for convenience only and shall not affect the meaning or interpretation of this Amendment, the Agreement or any
provision hereof or thereof. 
 11. Post-Closing Covenant. Within three (3) Business Days
following the date hereof, the Seller and WESCO shall cause to be delivered favorable opinions, in form and substance reasonably satisfactory to the Administrator and each Purchaser Agent, of K&L Gates LLP, counsel for Seller and the
Originators, as to certain UCC, general corporate and enforceability matters (including certain conflicts matters). Notwithstanding anything to the contrary in the Transaction Documents, the failure of the Seller or WESCO to timely perform the
covenant set forth in this section shall constitute a Termination Event under the Agreement with no grace period. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first
written above. 
  

			
	WESCO RECEIVABLES CORP.
		
	By:	 	/s/ Brian M. Begg
	Name:	 	Brian M. Begg
	Title:	 	Treasurer

  

			
	 WESCO DISTRIBUTION, INC.,
 as Servicer

		
	By:	 	/s/ Brian M. Begg
	Name:	 	Brian M. Begg
	Title:	 	Treasurer

  

					
		 	S-1	 	SEVENTH AMENDMENT
		 		 	TO WESCO 3RD A&R RPA

 
			
	 PNC BANK, NATIONAL ASSOCIATION,
 as Administrator

		
	By:	 	/s/ William P. Falcon
	Name:	 	William P. Falcon
	Title:	 	Vice President

  

					
		 	S-2	 	SEVENTH AMENDMENT
		 		 	TO WESCO 3RD A&R RPA

 
			
	THE CONDUIT PURCHASERS AND THE PURCHASER AGENTS:
	
	 MARKET STREET FUNDING LLC,
 as a Conduit Purchaser

		
	By:	 	/s/ Doris J. Hearn
	Name:	 	Doris J. Hearn
	Title:	 	Vice President

  

			
	 PNC BANK, NATIONAL ASSOCIATION,
 as Purchaser Agent for Market Street Funding LLC

		
	By:	 	/s/ William P. Falcon
	Name:	 	William P. Falcon
	Title:	 	Vice President

  

					
		 	S-3	 	SEVENTH AMENDMENT
		 		 	TO WESCO 3RD A&R RPA

 
			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,
 as a Conduit Purchaser

		
	By:	 	/s/ William P. Rutkowski
	Name:	 	William P. Rutkowski
	Title:	 	Vice President
	
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,
 as Purchaser Agent for Wells Fargo Bank, National Association

		
	By:	 	/s/ William P. Rutkowski
	Name:	 	William P. Rutkowski
	Title:	 	Vice President

  

					
		 	S-4	 	SEVENTH AMENDMENT
		 		 	TO WESCO 3RD A&R RPA

 
			
	 FIFTH THIRD BANK,
 as a Conduit Purchaser

		
	By:	 	/s/ Andrew D. Jones
	Name:	 	Andrew D. Jones
	Title:	 	Vice President

  

			
	 FIFTH THIRD BANK,
 as Purchaser Agent for Fifth Third Bank

		
	By:	 	/s/ Andrew D. Jones
	Name:	 	Andrew D. Jones
	Title:	 	Vice President

  

					
		 	S-5	 	SEVENTH AMENDMENT
		 		 	TO WESCO 3RD A&R RPA

 
			
	 U.S. BANK NATIONAL ASSOCIATION,
 as a Conduit Purchaser

		
	By:	 	/s/ Matt Kasper
	Name:	 	Matt Kasper
	Title:	 	Vice President

  

			
	 U.S. BANK NATIONAL ASSOCIATION,
 as Purchaser Agent for U.S. Bank National Association

		
	By:	 	/s/ Matt Kasper
	Name:	 	Matt Kasper
	Title:	 	Vice President

  

					
		 	S-6	 	SEVENTH AMENDMENT
		 		 	TO WESCO 3RD A&R RPA

 
			
	 THE HUNTINGTON NATIONAL BANK, 
 as a Conduit Purchaser

		
	By:	 	/s/ W. Christopher Kohler
	Name:	 	W. Christopher Kohler
	Title:	 	Senior Vice President

  

			
	 THE HUNTINGTON NATIONAL BANK,
 as Purchaser Agent for The Huntington National Bank

		
	By:	 	/s/ W. Christopher Kohler
	Name:	 	W. Christopher Kohler
	Title:	 	Senior Vice President

  

					
		 	S-7	 	SEVENTH AMENDMENT
		 		 	TO WESCO 3RD A&R RPA

 
			
	 THE RELATED COMMITTED PURCHASERS:

	
	 PNC BANK, NATIONAL ASSOCIATION,
 as a Related Committed Purchaser for Market Street Funding LLC

		
	By:	 	/s/ Mark S. Falcione
	Name:	 	Mark S. Falcione
	Title:	 	Senior Vice President

  

					
		 	S-8	 	SEVENTH AMENDMENT
		 		 	TO WESCO 3RD A&R RPA

 
			
	 FIFTH THIRD BANK,
as a Related Committed Purchaser for Fifth Third Bank

		
	By:	 	/s/ Andrew D. Jones
	Name:	 	Andrew D. Jones
	Title:	 	Vice President

  

					
		 	S-9	 	SEVENTH AMENDMENT
		 		 	TO WESCO 3RD A&R RPA

 
			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,
 as a Related Committed Purchaser for Wells Fargo Bank, National Association

		
	By:	 	/s/ William P. Rutkowski
	Name:	 	William P. Rutkowski
	Title:	 	Vice President

  

					
		 	S-10	 	SEVENTH AMENDMENT
		 		 	TO WESCO 3RD A&R RPA

 
			
	 U.S. BANK NATIONAL ASSOCIATION,
as a Related Committed Purchaser for U.S. Bank National
Association

		
	By:	 	/s/ Matt Kasper
	Name:	 	Matt Kasper
	Title:	 	Vice President

  

					
		 	S-11	 	SEVENTH AMENDMENT
		 		 	TO WESCO 3RD A&R RPA

 
			
	 THE HUNTINGTON NATIONAL BANK,
as a Related Committed Purchaser for The Huntington National
Bank

		
	By:	 	/s/ W. Christopher Kohler
	Name:	 	W. Christopher Kohler
	Title:	 	Senior Vice President

  

					
		 	S-12	 	SEVENTH AMENDMENT
		 		 	TO WESCO 3RD A&R RPA

 SCHEDULE VI 
 COMMITMENTS 
 PNC BANK, NATIONAL ASSOCIATION, 

as a Related Committed Purchaser for Market Street Funding LLC 
 Commitment: $160,000,000 
 FIFTH THIRD BANK, 

as a Related Committed Purchaser for Fifth Third Bank 
 Commitment: $80,000,000 
 WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as a Related Committed Purchaser for Wells Fargo Bank, National Association 
 Commitment: $150,000,000 
 U.S. BANK NATIONAL ASSOCIATION, 

as a Related Committed Purchaser for U.S. Bank National Association 
 Commitment: $45,000,000 
 THE HUNTINGTON NATIONAL BANK, 

as a Related Committed Purchaser for The Huntington National Bank 
 Commitment: $40,000,000 

  

					
		 	Schedule VI-1	 	
		 		 	

 EXHIBIT A 
 Intercreditor Agreement 
 (attached) 

  
 Exhibit A-1

 EXECUTION COPY 
 AMENDED AND RESTATED INTERCREDITOR AGREEMENT 
 Dated as of December 12,
2012 
 by and among 
 PNC BANK, NATIONAL ASSOCIATION, 
 as Receivables Agent, 

JPMORGAN CHASE BANK, N.A., 
 as ABL Lenders Agent, 
 CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH

 as Term Lenders Agent 
 WESCO RECEIVABLES CORP., 
 as Receivables Seller, 

WESCO DISTRIBUTION, INC., 
 as Seller, as Servicer, in its individual capacity and as Borrower, 
 and

 THE OTHER PARTIES HERETO 

 This AMENDED AND RESTATED INTERCREDITOR AGREEMENT, dated as of December 12, 2012 (as
supplemented, amended, restated or otherwise modified from time to time, this “Agreement”), is by and among PNC BANK, NATIONAL ASSOCIATION, in its capacity as Administrator under the Receivables Purchase Agreement (as defined below)
(the “Receivables Agent”), JPMORGAN CHASE BANK, N.A., in its capacity as Agent, for itself and on behalf of the ABL Lenders (as defined below) (the “ABL Lenders Agent”), CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, in
its capacity as Agent, for itself and on behalf of the Term Lenders (as defined below) (the “Term Lenders Agent”), WESCO RECEIVABLES CORP. (the “Receivables Seller”), WESCO DISTRIBUTION, INC.
(“WESCO”), WESCO EQUITY CORPORATION, CARLTON-BATES COMPANY, COMMUNICATIONS SUPPLY CORPORATION, LIBERTY WIRE & CABLE, INC., CALVERT WIRE & CABLE CORPORATION, BRUCKNER SUPPLY COMPANY, INC, TVC COMMUNICATIONS, L.L.C.
and CONNEY SAFETY PRODUCTS, LLC. 
 RECITALS: 
 A. WESCO and various of WESCO’s domestic subsidiaries and affiliates have agreed to sell, transfer and assign to the Receivables Seller, and the Receivables Seller has agreed to purchase or otherwise
acquire from WESCO and various of WESCO’S domestic subsidiaries and affiliates from time to time party thereto (together with WESCO, the “Originators”), all of the right, title and interest of WESCO in the Receivables (as
hereinafter defined) pursuant to a Purchase and Sale Agreement dated as of June 30, 1999, as amended by that certain First Amendment to Purchase and Sale Agreement dated as of September 28, 1999, that certain Second Amendment to Purchase
and Sale Agreement dated as of November 22, 2002, that certain Third Amendment to Purchase and Sale Agreement dated as of October 4, 2005, that certain Fourth Amendment to Purchase and Sale Agreement dated as of February 22, 2007,
that certain Fifth Amendment to Purchase and Sale Agreement dated as of January 29, 2009, that certain Sixth Amendment to Purchase and Sale Agreement dated as of April 13, 2009, that certain Seventh Amendment to Purchase and Sale and
Agreement and Waiver dated as of March 1, 2010, that certain Eighth Amendment to Purchase and Sale Agreement dated as of December 16, 2010, and that certain Ninth Amendment to Purchase and Sale Agreement dated as of the date hereof (and as
the same may be further supplemented, amended, restated or otherwise modified from time to time, the “Receivables Purchase and Sale Agreement”). 
 B. The Receivables Seller, as seller, WESCO, in its capacity as servicer and in its individual capacity, the Receivables Agent, the Receivables Purchasers and the Purchaser Agents (each as defined below)
are parties to a Third Amended and Restated Receivables Purchase Agreement, dated as of April 13, 2009, as amended by that certain First Amendment to Third Amended and Restated Receivables Purchase Agreement, dated as of August 31, 2009,
that certain Second Amendment to Third Amended and Restated Receivables Purchase Agreement, dated as of September 7, 2010, that certain Third Amendment to Third Amended and Restated Receivables Purchase Agreement, dated as of December 16,
2010, that certain Fourth Amendment to Third Amended and Restated Receivables Purchase Agreement, dated as of August 22, 2011, that certain Fifth Amendment to Third Amended and Restated Receivables Purchase Agreement dated as of July 31,
2012, that certain Sixth Amendment to Third Amended and Restated Receivables Purchase Agreement dated as of October 9, 2012, and that certain Seventh Amendment to Third Amended and Restated Receivables Purchase Agreement dated as of the date
hereof (and as the same may be further supplemented, amended, restated or otherwise modified from time to time, the “Receivables Purchase Agreement”) pursuant to which the Receivables Purchasers have agreed, among other things, to
purchase from the Receivables Seller from time to time Receivables (or interests therein) purchased by or contributed to the Receivables Seller pursuant to the Receivables Purchase and Sale Agreement, and the Receivables Seller has granted a lien on
the Receivables to the Receivables Agent. 

 C. The Receivables Purchase and Sale Agreement and the Receivables Purchase Agreement
provide for the filing of UCC financing statements to perfect the ownership and security interest of the parties thereto with respect to the property covered thereby. 
 D. WESCO, certain subsidiaries and affiliates of WESCO, the ABL Lenders Agent and the financial institutions from time to time party thereto entered into that certain Credit Agreement dated as of
August 22, 2011 (as heretofore supplemented, amended, restated or otherwise modified from time to time, the “Existing ABL Credit Agreement”). 
 E. To secure WESCO’s and the Loan Parties’ obligations to the Lenders and ABL Lenders Agent under the Existing ABL Credit Agreement and other Loan Documents (as defined in the Existing ABL
Credit Agreement), WESCO and the other Loan Parties granted to the ABL Lenders Agent for the benefit of the ABL Lenders Agent and the ABL Lenders party to the Existing ABL Credit Agreement a lien over, among other things, certain accounts receivable
and certain general intangibles, including the Unsold Receivables (as hereinafter defined), certain inventory and all proceeds of the foregoing. 
 F. In connection with the execution and delivery of the Existing ABL Credit Agreement, the Receivables Agent, the ABL Lenders Agent, WESCO and the originators party thereto entered into that certain
Intercreditor Agreement dated as of August 22, 2011 (as heretofore amended, the “Existing Intercreditor Agreement”), pursuant to which the parties thereto made certain agreements with respect to the parties’ relative
rights regarding the Receivables Assets (as defined in the Existing Intercreditor Agreement) and with respect to the ABL Lenders Collateral (as defined in the Existing Intercreditor Agreement). 

G. Concurrently herewith, WESCO, certain subsidiaries and affiliates of WESCO, the ABL Lenders Agent and the financial institutions from
time to time party thereto are entering into that certain Amended and Restated Credit Agreement dated as of the date hereof (as supplemented, amended, restated or otherwise modified from time to time, the “ABL Credit Agreement”),
which ABL Credit Agreement amends and restates in its entirety the Existing ABL Credit Agreement. 
 H. To secure WESCO’s
and the Loan Parties’ obligations to the Lenders and ABL Lenders Agent under the ABL Credit Agreement and other ABL Loan Documents (as defined below), WESCO and the other Loan Parties have granted to the ABL Lenders Agent for the benefit of the
ABL Lenders Agent and the ABL Lenders a lien over, among other things, certain accounts receivable and certain general intangibles, including the Unsold Receivables (as hereinafter defined), certain inventory and all proceeds of the foregoing.

 I. Concurrently herewith, WESCO, certain subsidiaries and affiliates of WESCO, the Term Lenders Agent, and the financial
institutions from time to time party thereto are entering into that certain Term Loan Agreement dated as of the date hereof (as supplemented, amended, restated or otherwise modified from time to time, the “Term Loan Agreement”).

 J. To secure WESCO’s and the Loan Parties’ obligations to the Term Lenders and Term Lenders Agent under the Term
Loan Agreement and other Term Loan Documents (as defined below), WESCO and the other Loan Parties have granted to the Term Lenders Agent for the benefit of the Term Lenders Agent and the Term Lenders party to the Term Loan Agreement a lien over,
among other things, certain accounts receivable and certain general intangibles, including the Unsold Receivables (as hereinafter defined), certain inventory and all proceeds of the foregoing. 

K. Concurrently herewith, the ABL Lenders Agent, the Term Lenders Agent, WESCO and certain subsidiaries and affiliates of WESCO are
entering into that certain Intercreditor Agreement dated 

  
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as of the date hereof (as supplemented, amended, restated or otherwise modified from time to time, the “ABL-Term Loan Intercreditor Agreement”), pursuant to which the ABL Lenders
Agent and the Term Lenders Agent are making certain agreements regarding the relative priorities of their security interests in the Collateral (as defined below), including the Unsold Receivables and other matters related thereto. 

L. The parties hereto wish to enter into this Agreement to amend and restate the Existing Intercreditor Agreement and to set forth
certain agreements with respect to the Receivables Assets (as hereinafter defined) and with respect to the Lenders Collateral (as hereinafter defined). 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, it is hereby agreed that the Existing Intercreditor Agreement is amended and restated in its entirety by this Agreement and it is hereby further agreed as follows: 

ARTICLE 1. DEFINITIONS. 
 1.1 Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the
terms defined): 
 “ABL Event of Default” means an Event of Default under and as defined in the ABL Credit
Agreement. 
 “ABL Lenders” shall mean the ABL Lenders from time to time party to the ABL Credit Agreement, the
ABL Lenders Agent and each other Secured Party (as defined in the ABL Security Agreement). 
 “ABL Lenders
Claim” means all of the indebtedness, obligations and other liabilities of WESCO and the other Loan Parties now or hereafter arising under, or in connection with, the ABL Credit Agreement and the other ABL Loan Documents, including, but not
limited to, all sums now or hereafter loaned or advanced to or, for the benefit of WESCO or any Loan Party, all reimbursement obligations of WESCO or any Loan Party, with respect to letters of credit and guarantees issued thereunder for its account,
all guarantee obligations of the Loan Parties, any interest thereon (including, without limitation, interest accruing after the commencement of a bankruptcy, insolvency or similar proceeding relating to any of the Loan Parties, whether or not such
interest is an allowed claim in any such proceeding), any reimbursement obligations, fees or expenses due thereunder, and any costs of collection or enforcement. 
 “ABL Lenders Interest” means, with respect to any property or interest in property, now owned or hereafter acquired or created, of WESCO or any of the Loan Parties, any lien, claim,
encumbrance, security interest or other interest of the ABL Lenders Agent or the ABL Lenders in such property or interests in property. 
 “ABL Loan Documents” means the “Loan Documents” as defined in the ABL Credit Agreement. 
 “ABL Loan Parties” means the “Loan Parties” as defined in the ABL Credit Agreement. 
 “ABL Obligations Payment Notice Date” means the date on which the Receivables Agent has received written notice from the ABL Lenders Agent that the “ABL Obligations Payment
Date” under and as defined in the ABL-Term Loan Intercreditor Agreement has occurred. 

  
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 “Business Day” has the meaning ascribed to such term in the Credit
Agreement. 
 “Claim” means the Lenders Claim or the Receivables Claim, as applicable. 

“Collateral” means all property and interests in property, now owned or hereafter acquired or created, of WESCO or any
of the other Loan Parties in or upon which a Lenders Interest is granted or purported to be granted by WESCO or such other Loan Party to the ABL Lenders or the ABL Lenders Agent under any of the ABL Loan Documents or to the Term Lenders or the Term
Lenders Agent under any of the Term Loan Documents. 
 “Collections” means, for any Receivable as of any date,
(i) all amounts, whether in the form of wire transfer, cash, checks, drafts, or other instruments that are received by the Receivables Seller, WESCO or any other Originator in payment of any amounts owed in respect of such Receivable (including
purchase price finance charges, interest and other charges), or applied to any amount owed by an Obligor on account of such Receivable, including, without limitation, all amounts received on account of such Receivable (including insurance payments
and net proceeds of the sale or disposition of repossessed goods or other collateral of any Person liable for repayment of such Receivable) and all other fees and charges related thereto, (ii) cash proceeds of Returned Goods with respect to
such Receivable, (iii) all amounts paid by WESCO in respect of such Receivable pursuant to the Receivables Purchase and Sale Agreement and/or the Receivables Purchase Agreement and (iv) all Proceeds of such Receivable. 

“Controlling Agent” means (a) during the period commencing on the date hereof and continuing to and including the
ABL Obligations Payment Notice Date, the ABL Lenders Agent and (b) thereafter, the Term Lenders Agent. 

“Controlling Lenders” means (a) during the period commencing on the date hereof and continuing to and including the
ABL Obligations Payment Notice Date, the ABL Lenders and (b) thereafter, the Term Lenders. 
 “Controlling Lenders
Event of Default” means (a) during the period commencing on the date hereof and continuing to and including the ABL Obligations Payment Notice Date, an ABL Event of Default and (b) thereafter, a Term Loan Event of Default.

 “Contract” has the meaning ascribed to such term in the Receivables Purchase Agreement. 

“Credit Agreement” means the ABL Credit Agreement and/or the Term Loan Agreement, as the context may require.

 “Disposition” means, with respect to any assets of WESCO, any liquidation of WESCO or its assets, the
establishment of any receivership for WESCO or its assets, a Bankruptcy proceeding of WESCO (either voluntary or involuntary), the payment of any insurance, condemnation, confiscation, seizure or other claim upon the condemnation, confiscation,
seizure, loss or destruction or thereof, or damage to, or any other sale, transfer, assignment or other disposition of such assets. 
 “Enforcement” means collectively or individually, for (a) any of the Receivables Agent or the Receivables Purchasers to (i) declare the Facility Termination Date under the
Receivables Documents or (ii) commence the judicial or nonjudicial enforcement of any of the default rights and remedies under any of the Receivables Documents upon the occurrence of such default, (b) any of the ABL Lenders Agent or the
ABL Lenders during the continuance of a ABL Event of Default (i) to demand payment in full of or accelerate the indebtedness of WESCO and the Loan Parties to the ABL Lenders and ABL Lenders Agent or (ii) to commence the judicial or
nonjudicial enforcement of any of the default rights and remedies 

  
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under any of the ABL Loan Documents and (c) any of the Term Lenders Agent or the Term Lenders during the continuance of a Term Loan Event of Default (i) to demand payment in full of or
accelerate the indebtedness of WESCO and the Loan Parties to the Term Lenders and Term Lenders Agent or (ii) to commence the judicial or nonjudicial enforcement of any of the default rights and remedies under any of the Term Loan Documents.

 “Enforcement Notice” means a written notice delivered in accordance with Section 2.5 which
notice shall (i) if delivered by the Receivables Agent, state that the Facility Termination Date has occurred, specify the nature of the Termination Event that has caused the declaration of such Facility Termination Date, and state that an
Enforcement Period has commenced, (ii) if delivered by the ABL Lenders Agent, state that a ABL Event of Default has occurred and that the payment in full of the ABL Lenders Claim has been demanded or the indebtedness of WESCO and the Loan
Parties to the ABL Lenders has been accelerated, specify the nature of the ABL Event of Default that caused such demand and acceleration, and state that an Enforcement Period has commenced and (iii) if delivered by the Term Lenders Agent, state
that a Term Loan Event of Default has occurred and that the payment in full of the Term Lenders Claim has been demanded or the indebtedness of WESCO and the Loan Parties to the Term Lenders has been accelerated, specify the nature of the Term Loan
Event of Default that caused such demand and acceleration, and state that an Enforcement Period has commenced. 

“Enforcement Period” means the period of time following the receipt by either the ABL Lenders Agent or the Term Lenders
Agent, on the one hand, or the Receivables Agent, on the other, of an Enforcement Notice delivered by the other until the earliest of the following: (1) the Receivables Claim has been satisfied in full, none of the Receivables Purchasers have
any further obligations under the Receivables Documents and the Receivables Documents have been terminated; or (2) the Lenders Claim of the applicable Lenders Agent and the applicable Lenders has been satisfied in full, such Lenders have no
further obligations under the applicable Credit Agreement and the other related Loan Documents and such Credit Agreement and such other Loan Documents have been terminated; and (3) the parties hereto agree in writing to terminate the
Enforcement Period. 
 “Facility Termination Date” has the meaning ascribed to such term in the Receivables
Purchase Agreement. 
 “Lenders” means the ABL Lenders and/or the Term Lenders, as the context may require.

 “Lenders Agents” means the ABL Lenders Agent and the Term Lenders Agent and “Lenders Agent”
means either the ABL Lenders Agent or the Term Lenders Agent, as the context may require. 
 “Lenders Claim”
means the ABL Lenders Claim and/or the Term Lenders Claim, as the context may require. 
 “Lenders Collateral”
means all Collateral which does not constitute Receivables Assets. 
 “Lenders Event of Default” means
(a) during the period commencing on the date hereof and continuing to and including the ABL Obligations Payment Notice Date, an ABL Event of Default and (b) thereafter, a Term Loan Event of Default. 

“Lenders Interest” means the ABL Lenders Interest and/or the Term Lenders Interest, as the context may require.

 “Loan Documents” means the ABL Loan Documents and/or the Term Loan Documents, as the context may require.

  
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 “Loan Party” means an ABL Loan Party and/or a Term Loan Loan Party, as the
context may require. 
 “Obligor” has the meaning ascribed to such term in the Receivables Purchase and Sale
Agreement. 
 “Outstanding Balance” has the meaning ascribed to such term in the Receivables Purchase
Agreement. 
 “Person” means any individual, partnership, corporation (including a business trust), joint stock
company, limited liability company, trust, unincorporated association, joint venture or other entity. 

“Proceeds” has the meaning ascribed to such term in the UCC. 

“Purchased Receivables” means now owned or hereafter existing Receivables sold, purported to be sold, transferred or
contributed or purported to be transferred or contributed by WESCO or any other Originator to the Receivables Seller under the Receivables Purchase and Sale Agreement. 
 “Purchaser Agents” means each Person from time to time party to the Receivables Purchase Agreement in the capacity of a “Purchaser Agent.” 

“Receivable” means: 
 (a) indebtedness, right to payment from or other obligation of an Obligor (whether constituting an account, chattel paper, document, instrument or general intangible) arising from the provision of
merchandise, goods or services to such Obligor, including all monies due or to become due with respect thereto, including the right to payment of any interest or finance charges and other obligations of such Obligor with respect thereto; 

(b) all security interests or liens and property subject thereto from time to time securing or purporting to secure any such indebtedness
by such Obligor; 
 (c) all guarantees, indemnities and warranties, insurance policies, financing statements and other
agreements or arrangements of whatever character from time to time supporting or securing payment of any such indebtedness; 

(d) all Collections with respect to any of the foregoing; 
 (e) all Records with respect to any of the foregoing; 
 (f) when used with respect
to a Purchased Receivable, all rights, interests and claims of the Receivables Seller under the Receivables Purchase and Sale Agreement; and 
 (g) all Proceeds with respect to any of the foregoing. 
 “Receivables
Assets” means (i) the Purchased Receivables, (ii) the Collections related to such Purchased Receivables, (iii) Returned Goods relating to such Purchased Receivables, (iv) each deposit or other bank account to which any
Collections of such Purchased Receivables are deposited (but in no event shall Receivables Assets include any Collections or other monies deposited in such accounts which are not Collections related to Purchased Receivables), and (v) all
Proceeds with respect to any of the foregoing. 

  
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 “Receivables Claim” means, all indebtedness, obligations and other
liabilities of WESCO and the other Originators to the Receivables Seller and of the Originators and the Receivables Seller to the Receivables Agent, the Receivables Purchasers and/or the Purchaser Agents now or hereafter arising under, or in
connection with, the Receivables Documents, including, but not limited to, all sums or increases now or hereafter advanced or made to or for the benefit of the Receivables Seller thereunder as the purchase price paid for Purchased Receivables (or
any interests therein) or otherwise under the Receivables Purchase Agreement, any yield thereon (including, without limitation, yield accruing after the commencement of a Bankruptcy, insolvency or similar proceeding relating to any Originator or the
Receivables Seller, whether or not such yield is an allowed claim in any such proceeding), any repayment obligations, fees or expenses due thereunder, and any costs of collection or enforcement. 

“Receivables Documents” means the Receivables Purchase and Sale Agreement, the Receivables Purchase Agreement and any
other agreements, instruments or documents (i) executed by the Originators and delivered to the Receivables Seller, the Receivables Agent, the Purchase. Agents or the Receivables Purchaser or (ii) executed by the Receivables Seller and
delivered to the Receivables Agent, the Purchaser Agents or the Receivables Purchasers. 
 “Receivables
Interest” means, with respect to any property or interests in property, now owned or hereafter acquired or created, of the Originators (regardless of whether sold or contributed by the Originators to the Receivables Seller), any lien,
claim, encumbrance, security interest or other interest of the Receivables Seller and/or the Receivables Agent, the Purchaser Agents or any Receivables Purchaser in such property or interests in property. 

“Receivables Purchaser” means each Person from time to time party to the Receivables Purchase Agreement in the capacity
of a “Conduit Purchaser” or a “Related Committed Purchaser”, as each such term is defined in the Receivables Purchase Agreement. 
 “Records” means all Contracts and other documents, books, records and other information (including computer programs, tapes, disks, data processing software and related property and
rights) maintained with respect to Receivables, the Obligors thereunder and the Receivables Assets. 
 “Requisite
Controlling Lenders” means (a) at any time when the ABL Lenders constitute the Controlling Lenders, the “Required Lenders” under and as defined in the ABL Credit Agreement and (b) at any time when the Term Lenders
constitute the Controlling Lenders, the “Required Lenders” under and as defined in the Term Loan Agreement. 

“Returned Goods” means all right, title and interest of WESCO or any Originator, the Receivables Seller, the Receivables
Agent or any Receivables Purchaser, as applicable, in and to returned, repossessed or foreclosed goods and/or merchandise the sale of which gave rise to a Receivable. 
 “Security Agreement” means the security agreements and other security documents under which the Loan Parties have granted to the ABL Lenders Agent or the Term Lenders Agent, as
applicable, a security interest in the Lenders Collateral. 
 “Termination Event” has the meaning ascribed to
such term in the Receivables Purchase Agreement. 
 “Term Lenders” shall mean the Term Lenders from time to
time party to the Term Loan Agreement and the Term Lenders Agent. 

  
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 “Term Lenders Claim” means all of the indebtedness, obligations and other
liabilities of WESCO and the other Loan Parties now or hereafter arising under, or in connection with, the Term Loan Agreement and the other Term Loan Documents, including, but not limited to, all sums now or hereafter loaned or advanced to or, for
the benefit of WESCO or any Loan Party, all guarantee obligations of the Loan Parties, any interest thereon (including, without limitation, interest accruing after the commencement of a bankruptcy, insolvency or similar proceeding relating to any of
the Loan Parties, whether or not such interest is an allowed claim in any such proceeding), any reimbursement obligations, fees or expenses due thereunder, and any costs of collection or enforcement. 

“Term Lenders Interest” means, with respect to any property or interest in property, now owned or hereafter acquired or
created, of WESCO or any of the Loan Parties, any lien, claim, encumbrance, security interest or other interest of the Term Lenders Agent or the Term Lenders in such property or interests in property. 

“Term Loan Event of Default” means an Event of Default under and as defined in the Term Loan Agreement. 

“Term Loan Documents” means the “Loan Documents” as defined in the Term Loan Agreement. 

“Term Loan Loan Party” means a “Loan Party” as defined in the Term Loan Agreement. 

“UCC” means the Uniform Commercial Code as from time to time in effect in the applicable jurisdiction. 

“Unsold Receivables” means any Receivables other than Purchased Receivables. 

1.2 Other Terms. Capitalized terms used but not defined herein shall have the meanings ascribed thereto in the Credit Agreement.

 1.3 References to Terms Defined in the Receivables Documents and the Loan Documents. Whenever in
Section 1.1 a term is defined by reference to the meaning ascribed to such term in any of the Receivables Documents or in any of the Loan Documents, then, unless otherwise specified herein, such term shall have the meaning ascribed to
such term in the Receivables Documents or such Loan Document (provided that if such a term is defined in the ABL Loan Documents and the Term Loan Documents and such definitions are not identical, the definition contained in the ABL Loan Documents
shall control until the ABL Obligations Payment Notice Date). 
 ARTICLE 2. INTERCREDITOR PROVISIONS. 

2.1 Priorities with Respect to Receivables Assets. Notwithstanding any provision of the UCC, any applicable law, equitable
principle or decision or any of the Loan Documents or the Receivables Documents, each of the ABL Lenders Agent (for itself and on behalf of each ABL Lender) and the Term Lenders Agent (for itself and on behalf of each Term Lender) hereby agrees
that, upon the sale or other transfer (including, without limitation, by way of capital contribution) or the purported sale or other purported transfer (including, without limitation, by means of capital contribution) of any Receivable (or interest
therein) by WESCO or any other Originator to the Receivables Seller pursuant to the Receivables Purchase and Sale Agreement, any Lenders Interest of the Lenders or the Lenders Agents solely in such Receivables and all Receivables Assets with respect
thereto shall automatically and without further action cease and be forever released and discharged and the Lenders Agents and the Lenders shall have no Lenders Interest therein; provided, however, that nothing in this
Section 2.1 shall be deemed to 

  
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constitute a release by the Lenders Agents or the Lenders of (i) any Lenders Interest in the proceeds received by WESCO or any other Originator from the Receivables Seller for the sale of
Receivables pursuant to the Receivables Purchase and Sale Agreement (including, without limitation, cash payments made by the Receivables Seller); (ii) any Lenders Interest or right of Lenders Agents or Lenders in any interest which WESCO or
any other Originator may have in Returned Goods; provided, further, however, that any Lenders Interest in such Returned Goods shall be junior and subject and subordinate to the Receivables Interest therein unless and until WESCO
and the Receivables Seller shall have made all payments or adjustments required to be made under the Receivables Documents on account of the reduction of the outstanding balance of any Purchased Receivable related to such Returned Goods; and
(iii) any Lenders Interest or right the Lenders or the Lenders Agents have in any Unsold Receivables and the proceeds thereof. If any goods or merchandise, the sale of which has given rise to a Purchased Receivable, are returned to or
repossessed by WESCO or any other Originator, on behalf of the Receivables Seller, then, upon payment by WESCO or any other Originator and the Receivables Seller of all adjustments required on account thereof under the Receivables Purchase Agreement
and the other Receivables Documents, the Receivables Interest in such Returned Goods shall automatically and without further action cease to exist and be released and extinguished and such Returned Goods shall thereafter not constitute Receivables
Assets for purposes of this Agreement unless and until such Returned Goods have been resold so as to give rise to a Receivable and such Receivable has been sold or contributed to the Receivables Seller. 

2.2 Respective Interests in Receivables Assets and Lenders Collateral. 

(a) Except for all rights to access to and use of Records granted to the Receivables Agent, the Purchaser Agents, and the Receivables
Purchasers pursuant to the Receivables Documents and except for the Receivables Interest of the Receivables Agent (for the benefit of the Purchaser Agents and Receivables Purchasers) in Returned Goods, which interest is senior in all respects to any
Lenders Interest therein, each of the Receivables Seller and the Receivables Agent (for itself and on behalf of each Receivables Purchaser) agrees that it does not have and shall not have any Receivables Interest in any of the Lenders Collateral.
Each of the Receivables Seller and the Receivables Agent (for itself and on behalf of each Receivables Purchaser) agrees that it shall not request or accept, directly or indirectly (by assignment or otherwise) from WESCO or any other Originator any
collateral security for payment of any Receivables Claims (other than any such collateral security included in the Receivables Assets and the right of access to and use of Records granted to the Receivables Agent and the Receivables Purchasers
pursuant to the Receivables Documents) and hereby releases any Receivables Interest in any such collateral security. 
 (b)
Except for rights in Returned Goods granted to the Lenders Agents and the Lenders, which Lenders Interest is junior and subordinate to any Receivables Interest therein, each of the ABL Lenders Agent (for itself and on behalf of each ABL Lender) and
the Term Lenders Agent (for itself and on behalf of each Term Lender) agrees that neither the Lenders Agents nor the Lenders have, nor shall they have, any Lenders Interest in the Receivables Assets. 

2.3 Distribution of Proceeds. At all times, all proceeds of Lenders Collateral and Receivables Assets shall be distributed in
accordance with the following procedure: 
 (a) All proceeds of the Lenders Collateral shall be paid to the Controlling Agent (it
being understood that if any such proceeds received by the Controlling Agent at any time constitute “Term Loan Priority Collateral”, as defined in the ABL-Term Loan Intercreditor Agreement, and the Controlling Agent at such time is the ABL
Lenders Agent, the ABL Lenders Agent shall turn such proceeds over to the Term Lenders Agent in accordance with and to the extent required by the ABL-Term Loan Intercreditor Agreement) for application on the Lenders Claims and other obligations and
liabilities 

  
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owing under the Credit Agreements and the other Loan Documents in accordance with the ABL-Term Loan Intercreditor Agreement until all Lenders Claims and such other obligations and liabilities
have been paid and satisfied in full in cash and each of such Credit Agreements and the other Loan Documents is terminated and, thereafter, any remaining proceeds shall be paid to WESCO or the appropriate Loan Party, or as otherwise required by
applicable law. The Receivables Seller and the Receivables Agent (for itself and on behalf of each Receivables Purchaser) agrees that none of the Receivables Seller, the Receivables Agent or the Receivables Purchasers have, nor shall they have, any
Receivables Interest in such remaining proceeds. The foregoing shall not, however, impair any claim or any right or remedy which the Receivables Seller, the Receivables Agent, the Purchaser Agents or the Receivables Purchasers may have against WESCO
or any other Originator under the Receivables Documents or otherwise. 
 (b) All proceeds of the Receivables Assets shall be
paid to the Receivables Agent for application against the Receivables Claim and for application in accordance with the Receivables Documents until the Receivables Claim has been paid and satisfied in full in cash and the Receivables Documents have
terminated and, thereafter, any remaining proceeds shall be paid to the Receivables Seller or as otherwise required by applicable law. Each of the ABL Lenders Agent (for itself and on behalf of the ABL Lenders) and the Term Lenders Agent (for itself
and on behalf of the Term Lenders) agrees that neither the Lenders Agents nor the Lenders have, nor shall they have, any Lenders Interest in such remaining proceeds. The foregoing shall not, however, impair any claim or any right or remedy which the
any Lenders Agent or the any Lenders may have against WESCO or any other Originator under any Loan Documents or otherwise. 

(c) In the event that any of the Receivables Seller, the Receivables Agent or the Receivables Purchasers now or hereafter obtains
possession of any Lenders Collateral, it shall immediately deliver to the Controlling Agent such Lenders Collateral to be applied in accordance with the ABL-Term Loan Intercreditor Agreement (and until delivered to the Controlling Agent such Lenders
Collateral shall be held in trust for the Lenders Agents and the Lenders). Each of the Receivables Seller and the Receivables Agent (for itself and on behalf of each Receivables Purchaser) further agrees to immediately turn over to the Controlling
Agent the proceeds of any Disposition of Lenders Collateral which it (or any Receivables Purchaser) might receive while any Lenders Claim, any other obligations or liabilities under the applicable Credit Agreement, any related other Loan Document or
any commitment to make financial accommodations thereunder remain outstanding, regardless of whether the Controlling Agent has a perfected and enforceable lien in the assets of WESCO or any other Originator from which the proceeds of any such
Disposition have been received, to be applied in accordance with the ABL-Term Loan Intercreditor Agreement. 
 (d) In the event
that any of the Lenders or any Lenders Agent now or hereafter obtains possession of any Receivables Assets, it shall immediately deliver to the Receivables Agent such Receivables Assets (and until delivered to the Receivables Agent such Receivables
Assets shall be held in trust for the Receivables Agent). Each of the ABL Lenders Agent (for itself and on behalf of each ABL Lender) and the Term Lenders Agent (for itself and on behalf of each Term Lender) further agrees to immediately turn over
the proceeds of any Disposition of Receivables Assets to the Receivables Agent which it (or the ABL Lenders or Term Lenders, as applicable) might receive while any Receivables Claim, any other obligations or liabilities under the Receivables
Documents or any commitment to make financial accommodations thereunder remain outstanding, regardless of whether the Receivables Agent has a perfected and enforceable lien in the assets from which the proceeds of such Disposition have been
received. 
 (e) To the extent that any Inventory of WESCO or any other Originator has been commingled with Returned Goods in
which the Receivables Interest continues as provided in Section 2.1 above, and any Lenders Agent or any Lender receives any proceeds on account of such Returned Goods 

  
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(whether by reason of sale or by reason of insurance payments on account thereof) prior to release of such Receivables Interest, then all proceeds of such Returned Goods shall, promptly upon
receipt of such proceeds by such Lenders Agent or Lender, be paid to the Receivables Agent for application against the Receivables Claim. 
 2.4 Unsold Receivables. 
 (a) The Receivables Seller and the Receivables
Agent (for itself and on behalf of each Receivables Purchaser) hereby acknowledge that the Controlling Agent on behalf of the Controlling Lenders and itself shall be entitled to the Collections of Unsold Receivables. 

(b) Each of the parties hereto hereby agrees that all Collections received on account of Receivables Assets shall be paid or delivered to
the Receivables Agent for application in accordance with Section 2.3(b) and all Collections received on account of Unsold Receivables shall be paid or delivered to the Controlling Agent for application in accordance with
Section 2.3(a). 
 (c) Each Lenders Agent agrees that it shall not exercise any rights it may have under the Loan
Documents to send any notices to Obligors informing them of the Lenders’ interest (if any) in the Receivables or directing such Obligors to make payments in any particular manner of any amounts due under the Receivables prior to the payment in
full of the Receivables Claim and the termination of the Receivables Documents, except that from and after any date on which (x) a Receivables Termination Notice has been delivered pursuant to Section 2.18, (y) the termination
and cessation of transfers of Receivables is required to be effective under the terms of Section 2.18 and (z) the Receivables Claim has been paid in full or the Purchased Receivables giving rise to any unpaid Receivables Claim have
been written off in accordance with their terms, the Controlling Agent may inform any Obligors of Unsold Receivables that such Unsold Receivables have been assigned to the Controlling Agent, so long as such notices do not under any circumstances
direct that payments on account of such Unsold Receivables be made to any location or account to which payments on account of Purchased Receivables are required to be made pursuant to the terms of the Receivables Documents. 

2.5 Enforcement Actions. Each, of the Lenders Agents, on the one hand, and the Receivables Agent, on the other hand, agrees to use
reasonable efforts to give an Enforcement Notice to the other prior to commencement of Enforcement (but failure to do so shall not prevent such Person from commencing Enforcement or affect its rights hereunder nor create any cause of action or
liability against such Person). Subject to the foregoing, each of the parties hereto agrees that during an Enforcement Period: 

(a) Subject to any applicable restrictions in the Receivables Documents, the Receivables Agent may at its option and without the prior
consent of the other parties hereto, take any action to (i) accelerate payment of the Receivables Claim or any other obligations and liabilities under any of the Receivables Documents and (ii) liquidate the Receivables Assets or to
foreclose or realize upon or enforce any of its rights with respect to the Receivables Assets; provided, however, that, subject to Section 2.3(e), the Receivables Agent shall not take any action to foreclose or realize upon
or to enforce any rights it may have with respect to any Receivables Assets constituting Returned Goods which have been commingled with the Lenders Collateral without the prior written consent of the Controlling Agent. 

(b) Subject to any applicable restrictions in the Loan Documents and the ABL-Term Loan Intercreditor Agreement, the Lenders Agents or the
Lenders may, at their option and without the prior consent of the other parties hereto, take any action to accelerate payment of the Lenders Claims or any other obligation or liability arising under the Credit Agreements or any of the other Loan
Documents, foreclose or realize upon or enforce any of their rights with respect to the Lenders Collateral, including, except as otherwise provided in Section 2.3(e), with respect to any Receivables Assets constituting

  
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Returned Goods that have been commingled with the Lenders Collateral, or take any other actions as they deem appropriate; provided, however, that the Lenders Agents shall not
otherwise take any action to foreclose or realize upon or to enforce any rights they may have with respect to uncommingled Returned Goods without the Receivables Agent’s prior written consent unless the Receivables Claim shall have been first
paid and satisfied in full and the Receivables Documents have terminated. 
 (c) If Returned Goods are commingled with
Inventory, the parties agree to cooperate in the disposition of such Returned Goods and Inventory and the application of the proceeds thereof as provided in Section 2.3(e). 

2.6 Access to Records. Subject to any applicable restrictions in the Receivables Documents (but without limiting any rights under
the Receivables Documents), each of the Receivables Purchasers, the Purchaser Agents and the Receivables Agent may enter one or more premises of WESCO, any other Originator, the Receivables Seller or their respective affiliates, whether leased or
owned, at any time during reasonable business hours, upon reasonable prior notice to the Term Lenders Agent following an Enforcement Notice delivered to the Receivables Agent by the Term Lenders Agent, without force or process of law and without
obligation to pay rent or compensation to WESCO, any other Originator, the Receivables Seller, such affiliates, the Lenders or the Lenders Agents, whether before, during or after an Enforcement Period, and may have access to and use of all Records
located thereon and may have access to and use of any other property to which such access and use are granted under the Receivables Documents, provided that after an Enforcement Notice is delivered by the Term Lenders Agent to the Receivables
Agent, such access with respect to the premises of any Originator (but expressly excluding the Receivables Seller) for which the Term Lenders Agent has taken possession or physical control of, shall terminate on the earliest of (i) the day
which is 270 days after the date following receipt by the Receivables Agent of such Enforcement Notice on which the Receivables Agent initially obtains the right under the Receivables Documents to take physical possession of all Records located on
such premises, plus such number of days, if any, that the Receivables Agent is stayed or otherwise prohibited by law or court order from exercising remedies with respect to any such Records of such Originator and (ii) the date on which all or
substantially all of the Receivables are sold, collected or liquidated in accordance with the Credit and Collection Policy (as defined in the Receivables Purchase Agreement) and the Receivables Documents (such period, with respect to the premises of
any Originator, a “Post Enforcement Access Period”). Following the delivery by the Term Lenders Agent to the Receivables Agent of an Enforcement Notice, the Term Lenders Agent agrees to cooperate in good faith with the Receivables
Agent to allow the Receivables Agent to exercise its access rights during the applicable Post Enforcement Access Period. The Receivables Agent shall take proper and reasonable care under the circumstances of any Lenders Collateral that is used by
the Receivables Agent during any Post Enforcement Access Period. WESCO and each of the other Originators shall, jointly and severally, indemnify and hold harmless the Term Lenders Agent and the Term Lenders for any injury or damage to any Lenders
Collateral (ordinary wear-and-tear excepted) caused by the acts or omissions of Persons under the control of the Receivables Agent; provided, however, that WESCO and each of the other Originators will not be liable for any diminution
in the value of any Lenders Collateral caused by the absence of any Records from any premises. The Receivables Agent and the Term Lenders Agent shall cooperate and use reasonable efforts to ensure that their activities during the Post Enforcement
Access Period as described above do not interfere materially with the activities of the other as described above, including the right of the Term Lenders Agent to show the Lenders Collateral to prospective purchasers and to ready the applicable
Lenders Collateral for sale. If the Term Lenders Agent shall foreclose or otherwise sell or dispose of any of the properties of any Originator during any Post Enforcement Access Period, the Term Lenders Agent will notify the buyer thereof of the
existence of this Agreement and that the buyer is acquiring such property subject to the terms of this Agreement. 

  
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 2.7 Accountings. Each of the ABL Lenders Agent and the Term Lenders Agent agrees to
render statements to the Receivables Agent upon reasonable prior written request, which statements shall (a) render an account of the applicable Lenders Claim, giving effect to the application of proceeds of Lenders Collateral as hereinbefore
provided, and (b) in the case of the Controlling Agent, identify in reasonable detail the Unsold Receivables. The Receivables Agent agrees to render Purchase Reports (as defined in the Receivables Purchase Agreement) to the Controlling Agent
upon reasonable prior written request. WESCO and the Receivable Seller hereby authorize the Controlling Agent and the Receivables Agent to provide the statements described in this section. The Controlling Agent and the Receivables Agent shall bear
no liability if their respective accounts are incorrect. 
 2.8 Agency for Perfection. The Receivables Agent, on the one
hand, and each Lenders Agent, on the other hand, hereby appoint the other as agent for purposes of perfecting by possession their respective security interests and ownership interests and liens on the Lenders Collateral and Receivables Assets
described hereunder. In the event that the Receivables Agent obtains possession of any of the Lenders Collateral, the Receivables Agent shall notify the Controlling Agent of such fact, shall hold such Lenders Collateral in trust and shall deliver
such Lenders Collateral to the Controlling Agent upon request for application in accordance with the ABL-Term Loan Intercreditor Agreement. In the event that any Lenders Agent obtains possession of any of the Receivables Assets, such Lenders Agent
shall notify the Receivables Agent of such fact, shall hold such Receivables Assets in trust and shall deliver such Receivables Assets to the Receivables Agent upon request. 
 2.9 UCC Notices. In the event that the ABL Lenders Agent and the Term Lenders Agent, on the one hand, or the Receivables Agent, on the other hand, shall be required by the UCC or any other
applicable law to give notice to the other of intended disposition of Receivables Assets or Lenders Collateral, respectively, such notice shall be given in accordance with Section 3.1 hereof and ten (10) days’ notice shall be
deemed to be commercially reasonable. 
 2.10 Independent Credit Investigations. Neither the Receivables Purchasers, the
Receivables Agent, the Lenders Agents nor the Lenders nor any of their respective directors, officers, agents or employees shall be responsible to the other or to any other person, firm, corporation or entity for the solvency, financial condition or
ability of WESCO, any other Originator or the Receivables Seller to repay the Receivables Claim or the Lenders Claims, or for the worth of the Receivables Assets or the Lenders Collateral, or for statements of WESCO, any other Originator, the
Receivables Seller or the Loan Parties, oral or written, or for the validity, sufficiency or enforceability of the Receivables Claim, the Lenders Claims, the Receivables Documents, the Loan Documents, the Receivables Agent’s interest in the
Receivables Assets or the Lenders’ or Lenders Agents’ respective interests in the Lenders Collateral. The Lenders and the Receivables Purchasers have entered into their respective agreements with WESCO, the Originators, the Receivables
Seller or the Loan Parties, as applicable, based upon their own independent investigations. None of the Lenders, the Receivables Agent or the Receivables Purchasers makes any warranty or representation to the other nor does it rely upon any
representation of the other with respect to matters identified or referred to in this Section 2.10. 
 2.11
Limitation on Liability of Parties to Each Other. Except with respect to liability for breach of an express obligation under this Agreement, no party shall have any liability to any other party except for liability arising from the gross
negligence or willful misconduct of such party. 
 2.12 Amendments to Financing Arrangements or to this Agreement. Each
Lenders Agent agrees to use reasonable efforts to give, concurrently with any written amendment, waiver or other modification in the Loan Documents to which it is a party with respect to the Collateral, prompt notice to the Receivables Agent of the
same and the Receivables Agent agrees to use reasonable efforts to give, concurrently with any written amendment, waiver or other modification in the Receivables Documents 

  
 - 13 -

 
with respect to the Receivables Assets or the Collateral, prompt notice to each Lenders Agent of the same; provided, however, that the failure to do so shall not create a cause of
action against any party failing to give such notice or create any claim or right on behalf of any third party or affect any such amendment or modification. Each Lenders Agent, on the one hand, and the Receivables Agent, on the other hand, shall,
upon reasonable request of the other party, provide copies of all such modifications or amendments and copies of all other agreements, instruments, filings or documentation relevant to the Receivables Assets or the Lenders Collateral. All
modifications or amendments of this Agreement must be in writing and duly executed by an authorized officer of each party hereto to be binding and enforceable. 
 2.13 Marshalling of Assets. Nothing in this Agreement will be deemed to require either the Receivables Agent or any Lenders Agent (i) to proceed against certain property securing any Lenders
Claim (or any other obligation or liability under the Credit Agreements or any other Loan Documents) or the Receivables Claim (or any other obligation or liability under the Receivables Documents), as applicable, prior to proceeding against other
property securing such Claim or obligations or liabilities or against certain persons guaranteeing any such obligations or (ii) to marshal the Lenders Collateral (or any other collateral) or the Receivables Assets (as applicable) upon the
enforcement of any Lenders Agent’s or the Receivables Agent’s remedies under the applicable Loan Documents or Receivables Documents, as applicable. 
 2.14 Relative Rights. 
 (a) The relative rights of the ABL Lenders, each as
against the other, shall be determined by agreement among such parties in accordance with the terms of the ABL Credit Agreement and the other ABL Loan Documents. The relative rights of the Term Lenders, each as against the other, shall be determined
by agreement among such parties in accordance with the terms of the Term Loan Agreement and the other Term Loan Documents. The relative rights of the ABL Lenders and the ABL Lenders Agent, on the one hand, and the Term Lenders and the Term Lenders
Agent, on the other hand, shall be determined by agreement among such parties in accordance with the terms of the ABL-Term Loan Intercreditor Agreement. The Receivables Agent and the Receivables Purchasers shall be entitled to rely on the power and
authority of (i) the ABL Lenders Agent to act on behalf of all of the ABL Lenders to the extent the provisions hereof have the ABL Lenders Agent so act and (ii) the Term Lenders Agent to act on behalf of all of the Term Lender to the
extent the provision hereof have the Term Lenders Agent so act. 
 (b) Each of the Lenders Agents and the Lenders shall be
entitled to rely on the power and authority of the Receivables Agent to act on behalf of the Purchaser Agents and Receivables Purchasers to the extent the provisions hereof have the Receivables Agent so act. 

2.15 Effect Upon Loan Documents and Receivables Documents. By executing this Agreement, WESCO, the other Originators and the
Receivables Seller agree to be bound by the provisions hereof (i) as they relate to the relative rights of the ABL Lenders and the ABL Lenders Agent with respect to the property of WESCO; (ii) as they relate to the relative rights of the
Term Lenders and the Term Lenders Agent with respect to the property of WESCO; and (iii) as they relate to the relative rights of WESCO, the other Originators, the Receivables Seller, the Receivables Purchasers, the Purchaser Agents and/or the
Receivables Agent as creditors of (or purchasers from) WESCO, the other Originators, or the Receivables Seller, as the case may be. Each of WESCO and the other Originators acknowledges that the provisions of this Agreement shall not give it or any
other Loan Party any substantive rights as against the Lenders Agents or the Lenders and that nothing in this Agreement shall (except as expressly provided herein) amend, modify, change or supersede the terms of (a) the ABL Loan Documents as
between WESCO, the other Loan Parties, the ABL Lenders Agent and the ABL Lenders or (b) the Term Loan Documents as between WESCO, the other Loan Parties, the Term Lenders Agent and 

  
 - 14 -

 
the Term Lenders. Each of the Receivables Seller, WESCO and the other Originators acknowledges that the provisions of this Agreement shall not give the Receivables Seller, WESCO, or the other
Originators any substantive rights as against the Receivables Agent, the Purchaser Agents or the Receivables Purchasers and that nothing in this Agreement shall (except as expressly provided herein) amend, modify, change or supersede the terms of
the Receivables Documents as among the Receivables Seller, WESCO, the other Originators, the Receivables Agent, the Purchaser Agents or the Receivables Purchasers. WESCO, the other Originators and the Receivables Seller further acknowledge that the
provisions of this Agreement shall not give any such party any substantive rights as against the other and that nothing in this Agreement shall amend, modify, change or supersede the terms of the Receivables Documents as among WESCO, the other
Originators and the Receivables Seller. Each of the ABL Lenders Agent (on behalf of itself and the ABL Lenders) and the Term Lenders Agent (on behalf of itself and the Term Lenders) agrees that the provisions of this Agreement shall not give the ABL
Lenders Agent and the ABL Lenders, on the one hand, or the Term Lenders Agent and the Term Lenders, on the other hand, any substantive rights as against the other and that nothing in this Agreement shall amend, modify, change or supersede the terms
of the ABL-Term Loan Intercreditor Agreement. To the extent possible, this Agreement, the other Loan Documents and the Receivables Documents shall be read and construed together so as to give full effect to each of them. Notwithstanding the
foregoing, (i) each of the Receivables Agent (for itself and on behalf of each Receivables Purchaser), and the ABL Lenders Agent (for itself and on behalf of each ABL Lenders) agrees, that, as between themselves, to the extent the terms and
provisions of the other ABL Loan Documents (other than the ABL-Term Loan Intercreditor Agreement) or the Receivables Documents are inconsistent with the terms and provisions of this Agreement, the terms and provisions of this Agreement shall control
and (ii) each of the Receivables Agent (for itself and on behalf of each Receivables Purchaser), and the Term Lenders Agent (for itself and on behalf of each Term Lenders) agrees, that, as between themselves, to the extent the terms and
provisions of the other Term Loan Documents (other than the ABL-Term Loan Intercreditor Agreement) or the Receivables Documents are inconsistent with the terms and provisions of this Agreement, the terms and provisions of this Agreement shall
control. 
 2.16 Nature of the Lenders Claim and Modification of Loan Documents; Nature of Receivables Claim.
(a) Each of the Receivables Seller and the Receivables Agent (for itself and on behalf of each Receivables Purchaser) acknowledge that the ABL Lenders Claim and other obligations and liabilities owing under the Loan Documents are revolving in
nature and that the amount of such revolving indebtedness which may be outstanding at any time or from time to time may be increased or reduced and subsequently reborrowed. Except as provided in Section 2.12, the terms of the ABL Credit
Agreement and the other ABL Loan Documents may be modified, extended or amended from time to time, and the amount thereof may be increased or reduced, all without notice to or consent by any of the Receivables Seller, the Receivables Agent or the
Receivables Purchasers and without affecting the provisions of this Agreement. Without in any way limiting the generality of the foregoing, each of the Receivables Seller and the Receivables Agent (for itself and on behalf of each Receivables
Purchaser) hereby agrees that the maximum amount of the ABL Lenders Claim and other obligations and liabilities owing under the ABL Loan Documents may be increased at any time and from time to time to any amount. 

(b) Except as provided in Section 2.12, the terms of the Term Loan Agreement and the other Term Loan Documents may be
modified, extended or amended from time to time, and the amount thereof may be increased or reduced, all without notice to or consent by any of the Receivables Seller, the Receivables Agent or the Receivables Purchasers and without affecting the
provisions of this Agreement. Without in any way limiting the generality of the foregoing, each of the Receivables Seller and the Receivables Agent (for itself and on behalf of each Receivables Purchaser) hereby agrees that the maximum amount of the
Term Lenders Claim and other obligations and liabilities owing under the Term Loan Documents may be increased at any time and from time to time to any amount. 

  
 - 15 -

 (c) Except as provided in Section 2.12, the terms of the Receivables Documents
may be modified, extended or amended from time to time, and the amount thereof may be increased or reduced, all without notice to or consent by the Lenders Agents and without affecting the provisions of this Agreement. Without in any way limiting
the generality of the foregoing, each of the ABL Lenders Agent (for itself and on behalf of the ABL Lenders) and the Term Lenders Agent (for itself and on behalf of the Term Lenders) acknowledges that the Receivables Claim and other obligations
owing under the Receivables Documents are revolving in nature and the amount of such indebtedness which may be outstanding at any time or from time to time may be increased or reduced in accordance with the terms of the Receivables Documents.

 2.17 Further Assurances. Each of the parties agrees to take such actions as may be reasonably requested by any other
party, whether before, during or after an Enforcement Period, in order to effect the rules of distribution and allocation set forth above in this Article 2 and to otherwise effectuate the agreements made in this Article 2. 

2.18 Termination and Cessation of Transfer of Receivables. After the occurrence and during the continuance of a Controlling
Lenders Event of Default resulting from the commencement of a bankruptcy, insolvency or similar proceeding relating to WESCO, any Originator or any other Loan Party or after any declaration by the Controlling Agent, in accordance with the terms of
the applicable Credit Agreement, that the Loans and Obligations thereunder are due and payable in whole or in part and upon written notice thereof by the Controlling Agent to the Receivables Agent (a “Receivables Termination
Notice”), (i) WESCO, the other Originators and the Receivables Seller shall terminate and cease all transfers of Receivables from WESCO and the other Originators to the Receivables Seller and (ii) the Receivables Seller and the
Receivables Agent, Receivables Purchasers and Purchaser Agents shall terminate and cease, or shall cause the termination and cessation of, all transfers of Receivables from the Receivables Seller to the Receivables Purchasers or the Purchaser Agents
(all such termination and cessation to be effective at the close of business on the date such notice is effective in accordance with Section 3.1; provided that in the case of a Controlling Lenders Event of Default resulting from the
commencement of a bankruptcy, insolvency or similar proceeding relating to WESCO, any Originator or any other Loan Party, all transfers of Receivables by the Originators to the Receivables Seller immediately and automatically shall terminate and
cease without notice of any kind; provided, further, that neither the Receivables Agent, the Receivables Purchasers nor the Purchaser Agents shall have any responsibility for ensuring compliance by WESCO, the other Originators or the
Receivables Seller with the provisions of this Section 2.18). Nothing contained in this Section shall affect the rights of the Receivables Seller, Receivables Agent, Receivables Purchasers or Purchaser Agents with respect to Receivables
transferred prior to delivery of such notice. 
 2.19 Blocked Accounts. The Receivables Agent (for itself and on behalf
of the Receivables Purchasers and Purchaser Agents) hereby consents to the execution of blocked account agreements in favor of the Controlling Agent with respect to bank accounts held in the name of the Receivables Seller, in accordance with the
terms of the applicable Security Agreement (the “Blocked Account Agreements”) (it being understood that the interest of Controlling Agent, on behalf of itself and the Controlling Lenders, in such bank accounts and amounts held
therein shall extend only to Unsold Receivables and Collections and other proceeds in respect thereof). The Receivable Agent agrees, upon the written request of the Controlling Agent (an “Initial Notification Request”), to provide a
written response stating whether or not the Receivables Documents have been terminated and all monetary obligations under the Receivables Documents have been satisfied in full and, if such termination and satisfaction have occurred, to notify the
applicable banks under the Blocked Account Agreements (it being understood that the Controlling Agent shall deliver an Initial Notification Request only if it believes in good faith that the Receivables Documents may have been terminated and all
monetary obligations thereunder may have been paid, or if the Controlling Agent has been instructed in good faith by the 

  
 - 16 -

 
Requisite Controlling Lenders to make such Initial Notification Request). If the Receivables Agent does not respond in writing within five (5) Business Days of its receipt of the Initial
Notification Request, the Controlling Agent may deliver a second notice (the “Final Notification Request”) to the Receivables Agent asking it to provide a written response stating whether or not the Receivables Documents have been
terminated and all monetary obligations under the Receivables Documents have been satisfied in full and, if such termination and satisfaction have occurred, to notify the applicable banks under the Blocked Account Agreements. In the event that the
Receivables Agent has not responded in writing within three (3) Business Days of its receipt of the Final Notification Request, the Controlling Agent shall be entitled to activate the Blocked Account Agreements. Notwithstanding anything to the
contrary in this Section 2.19, if the Receivables Agent responds in writing to an Initial Notification Request or a Final Notification Request within the respective time periods allowed herein for such response, and such written response
states that the Receivables Documents have not terminated or that all monetary obligations in respect thereof have not been satisfied, the Controlling Agent (regardless of whether it disputes the statements set forth in such response) shall not be
entitled to activate any of the Blocked Accounts (or otherwise notify the applicable account banks to take other actions with respect to such Blocked Accounts) unless and until the Receivables Agent shall have indicated in writing (or a court of
competent jurisdiction shall have determined) that the Receivables Documents have been terminated and all monetary obligations in respect thereof have been satisfied. For the avoidance of doubt, to the extent of any inconsistency between the
provisions of this Agreement and the provisions of any Blocked Account Agreement, the provisions of this Agreement shall control and be binding in all respects. 
 2.20 No Petition. Each of the ABL Lenders Agent (on behalf of itself and the ABL Lenders) and the Term Lenders Agent (on behalf of itself and the Term Lenders), agrees that it shall not institute
against or join any other Person in instituting against the Receivables Seller or a Receivables Purchaser any bankruptcy, reorganization, insolvency or liquidation proceeding, or other proceeding under any federal or state bankruptcy, insolvency or
similar law until ninety-one (91) days after the date that the Controlling Lenders Agent reasonably believes that the Receivables Claims have been paid in full and the Receivables Documents have terminated. The Receivables Agent agrees that,
upon written request of the Controlling Agent, it shall promptly notify the Controlling Agent as to whether the Receivables Claims have been paid in full and the Receivables Documents have terminated (it being understood that the Controlling Agent
shall deliver such a written request only if it believes in good faith that the Receivables Claims have been paid in full and the Receivables Documents may have been terminated). 

ARTICLE 3. MISCELLANEOUS 
 3.1 Notices. All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing (including communication by facsimile copy) and mailed, transmitted or
delivered, as to each party hereto, at its address set forth under its name on the signature pages hereof or at such other address as shall be designated by such party in a written notice to the other parties hereto. All such notices and
communications shall be effective upon receipt, or, in the case of notice by mail, five (5) days after being deposited in the mails, postage prepaid, or in the case of notice by facsimile copy, when verbal confirmation of receipt is obtained,
in each case addressed as aforesaid. 
 3.2 Agreement Absolute. Each of the Receivables Agent and the Receivables
Purchasers shall be deemed to have entered into and continued with the Receivables Documents in express reliance upon this Agreement, the ABL Lenders and the ABL Lenders Agent shall be deemed to have entered into and continued with the ABL Loan
Documents in express reliance upon this Agreement and the Term Lenders and the Term Lenders Agent shall be deemed to have entered into and continued with the Term Loan Documents in express reliance upon this Agreement. This Agreement shall be
applicable both before and after the filing of any petition by or against WESCO, any other Originator or the Receivables Seller or any Loan Party under the U.S. Bankruptcy Code and all references herein to WESCO, any other

  
 - 17 -

 
Originator or the Receivables Seller or any Loan Party shall be deemed to apply to a debtor-in-possession for such party and all allocations of payments between the Controlling Lenders and the
Receivables Purchasers shall, subject to any court order to the contrary, continue to be made after the filing of such petition on the same basis that the payments were to be applied prior to the date of the petition. 

3.3 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of each of the parties hereto and their
respective successors and assigns. The successors and assigns for WESCO and the Receivables Seller shall include a debtor-in-possession or trustee of or for such party. The successors and assigns for the ABL Lenders, the Term Lenders the Receivables
Purchasers, Purchaser Agents, the ABL Lenders Agent, the Term Lenders Agent and the Receivables Agent, as the case may be, shall include any successor ABL Lenders, Term Lenders, Receivables Purchasers, the Purchaser Agents, ABL Lenders Agent, Term
Lenders Agent and Receivables Agent, as the case may be, appointed under the terms of the Loan Documents or the Receivables Documents, as applicable. Each of the ABL Lenders Agent (for itself and on behalf of each ABL Lender), the Term Lenders Agent
(for itself and on behalf of each Term Lender) and the Receivables Agent (for itself and on behalf of each Receivables Purchaser), as the case may be, agrees not to transfer any interest it may have in the Loan Documents or the Receivables Documents
unless such transferee has been notified of the existence of this Agreement and its terms and conditions. In the event that the financing provided under the ABL Credit Agreement or the Term Loan Agreement, as applicable, shall be refinanced,
replaced, refunded or restated, WESCO, the Receivables Seller and the Receivables Agent hereby agree, at the request of the agent or ABL Lenders or Term Lenders under the credit facility that so refinances, replaces, refunds or restates, the
financing under the applicable Credit Agreement, to execute and deliver a new intercreditor agreement with such agent and/or ABL Lenders or Term Lenders on substantially the same terms as herein provided. In the event that the financing provided
under the Receivables Documents shall be refinanced, replaced, refunded or restated, each of the ABL Lenders Agent (for itself and on behalf of each ABL Lender) and the Term Lenders Agent (for itself and on behalf of each Term Lender) hereby agrees
that, at the request of the agent or purchasers under the facility that so refinances, replaces, refunds or restates the financing under the Receivables Documents, to execute and deliver a new intercreditor agreement with such agent and/or
purchasers on substantially the same terms as herein provided. 
 3.4 Beneficiaries. The terms and provisions of this
Agreement shall be for the sole benefit of the parties hereto, the ABL Lenders, the Term Lenders, the Purchaser Agents and the Receivables Purchasers and their respective successors and assigns, and no other Person shall have any right, benefit or
priority by reason of this Agreement. 
 3.5 GOVERNING LAW; JURISDICTION. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK. EACH PARTY HERETO HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN NEW YORK COUNTY, CITY OF NEW YORK, NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR
AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE PARTIES HERETO PERTAINING TO THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT. 
 3.6 WAIVER OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES
WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL
SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING 

  
 - 18 -

 
BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE PARTIES HERETO ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED
AMONG THEM IN CONNECTION WITH, THIS AGREEMENT OR THE TRANSACTIONS RELATED THERETO. 
 3.7 Section Titles. The article and
section headings contained in this Agreement are and shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto. 

3.8 Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or thereof or affecting the validity or enforceability of such provision in any other jurisdiction. 

3.9 Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement. Delivery of an executed signature page by telecopy machine shall be as
effective as delivery of a manually signed, original signature page. 
 [signature pages follow] 

  
 - 19 -

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

					
	 PNC BANK, NATIONAL ASSOCIATION,
       as Receivables Agent

		
	By:	 	 
		 	Name:
		 	Title:
		
	Address:	 	 One PNC Plaza
 249
Fifth Avenue
 Pittsburgh, Pennsylvania 15222

	Attention:	 	William Falcon
	Telecopy:	 	(412) 762-9184

 
					
	 JPMORGAN CHASE BANK, N.A.,
       as ABL Lenders Agent

		
	By:	 	 
		 	Name:
		 	Title:
		
	Address:	 	 1300 East Ninth Street, Floor 13
 Cleveland, OH 44114

	Attention:	 	David Waugh
	Telecopy:	 	(216) 781-2071

 
					
	 CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
       as Term Lenders Agent

		
	By:	 	 
		 	        Name:
		 	        Title:
		
	Address:	 	
		
	Attention:	 	
	Telecopy:	 	

 
			
	 WESCO RECEIVABLES CORP.,
       as Receivables Seller

		
	By:	 	 
		 	         Name:
         Title:

 
			
	WESCO EQUITY CORPORATION
		
	By:	 	 
		 	         Name:
         Title:

 
					
	 WESCO DISTRIBUTION, INC.
       as Seller, as Servicer and as Borrower

		
	By:	 	 
		 	Name:
		 	Title:
		
	Address:	 	
		
	Attention:	 	
	Telecopy:	 	(    )
        -            

 
			
	CARLTON-BATES COMPANY
		
	By:	 	 
		 	         Name:
         Title:

 
			
	COMMUNICATIONS SUPPLY CORPORATION
		
	By:	 	 
		 	         Name:
         Title:

 
			
	LIBERTY WIRE & CABLE, INC.
		
	By:	 	 
		 	        Name: Daniel A. Brailer
		 	        Title: Treasurer

			
	CALVERT WIRE & CABLE CORPORATION
		
	By:	 	 
		 	         Name:
         Title:

 
			
	BRUCKNER SUPPLY COMPANY, INC.
		
	By:	 	 
		 	         Name:
         Title:

 
			
	TVC COMMUNICATIONS, L.L.C.
		
	By:	 	 
		 	         Name:
         Title:

 
			
	CONNEY SAFETY PRODUCTS, LLC
		
	By:	 	 
		 	         Name:
         Title:

 EXHIBIT B 
 Payoff Letter 
 (attached) 

  
 Exhibit B-1

 EXECUTION COPY 

December 11, 2012 
  

	 	To:	The Parties Listed on Schedule I Attached Hereto 

  

	 	Re:	Third Amended and Restated Receivables Purchase Agreement, dated as of April 13, 2009 (as amended, supplemented or otherwise modified through the date hereof, the
“Receivables Purchase Agreement”), among WESCO Receivables Corp. (“Seller”), WESCO Distribution, Inc. (“WESCO”), as Servicer (in such capacity, the “Servicer”), the various Conduit
Purchasers, Related Committed Purchasers and Purchaser Agents party thereto, and PNC Bank, National Association (“PNC”), as Administrator (in such capacity, the “Administrator”) 

Ladies and Gentlemen: 
 Seller
has heretofore advised the Administrator and The PrivateBank and Trust Company (“PrivateBank”) that it desires to voluntarily prepay all outstanding indebtedness, fees and other obligations owing to PrivateBank, as a Conduit
Purchaser, a Related Committed Purchaser and as a Purchaser Agent under the Receivables Purchase Agreement and each of the other Transaction Documents. Capitalized terms used in this letter agreement (this “Payoff Letter”) and not
otherwise defined herein shall have the meanings assigned to them in, or by reference in, the Receivables Purchase Agreement. 

The aggregate amount due to PrivateBank under the Transaction Documents, if paid in immediately available funds by 5:00 p.m. (New York
time), on the date hereof (the “Payoff Time”), will be the amounts set forth on Schedule II hereto (such aggregate amount, the “Payoff Amount”). The Payoff Amount shall be paid by (or on behalf of) Seller to
the account specified on Schedule III hereto. 
 In consideration of the payment in full of the Payoff Amount by (or on
behalf of) Seller, in immediately available funds no later than the Payoff Time, each of Seller and WESCO (collectively, the “WESCO Parties”), PrivateBank and the Administrator hereby acknowledges and agrees that: 

 

	 	(i)	payment of the Payoff Amount on or prior to the Payoff Time will constitute satisfaction in full of all of the WESCO Parties’ obligations to PrivateBank under the
Transaction Documents; 

  

	 	(ii)	all security interests, liens or other rights which PrivateBank may have under any of the Transaction Documents shall be terminated and shall be of no further force and
effect; and 

  

	 	(iii)	 immediately after giving effect to the payment in full of the Payoff Amount on or prior to the Payoff Time, PrivateBank shall cease to

	 	
be a party to the Receivables Purchase Agreement and each of the other Transaction Documents, all commitments of PrivateBank with respect thereto shall be terminated and PrivateBank shall have no
further rights, interests, liabilities or obligations thereunder. 

 Notwithstanding anything in this Payoff
Letter to the contrary, if all or any portion of the Payoff Amount is rescinded or must otherwise be returned for any reason under any state or federal bankruptcy or other law, then all obligations of the WESCO Parties under the Transaction
Documents in respect of the Payoff Amount (or portion thereof) so rescinded or returned shall be automatically and immediately revived (without any further action or consent by any of the parties hereto or any other Person) and shall continue in
full force and effect as if such amounts had not been paid and the release given herein shall be void and of no further force and effect. 
 Each of the WESCO Parties hereby waives, releases and forever discharges PrivateBank and its affiliates, subsidiaries, officers, directors, attorneys, agents and employees (collectively, the
“PrivateBank Parties”) from any liability, damage, claim, loss or expense of any kind that it may have now or hereafter against any PrivateBank Party arising out of or relating to any Transaction Document. This Payoff Letter shall
become effective at the time that each of the following conditions precedent have been satisfied: (i) the Administrator shall have received counterparts to this Payoff Letter executed by each of the parties hereto and (ii) PrivateBank
shall have received the Payoff Amount in accordance with the terms hereof on or prior to the Payoff Time. 
 THIS PAYOFF LETTER
SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). 

ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS PAYOFF LETTER MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE
UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK; AND, BY EXECUTION AND DELIVERY OF THIS PAYOFF LETTER, EACH OF THE PARTIES HERETO CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE
PARTIES HERETO IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, THAT IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY
ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS PAYOFF LETTER OR ANY DOCUMENT RELATED HERETO. EACH OF THE PARTIES HERETO WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH SERVICE MAY BE MADE BY ANY OTHER
MEANS PERMITTED BY NEW YORK LAW. 
 To the extent that any consent of any party hereto is required under any other agreement to
which it is a party for any of the transactions to be effected hereby, such party hereby grants such consent and waives any notice requirements or condition precedent to the effectiveness of any such transactions set forth in any agreement to which
it is a party that has not been satisfied 

  
 2 

 
as of the date hereof (other than any requirements or conditions precedent set forth in this Payoff Letter). 
 PrivateBank hereby covenants and agrees that it will not institute against, or join any other Person in instituting against, Seller any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding, or other proceeding under any federal or state bankruptcy or similar law, for one year and one day after all indebtedness and other obligations of Seller under the Receivables Purchase Agreement and each of the other Transaction
Documents shall have been paid in full. 
 This Payoff Letter shall be binding upon, and inure to the benefit of, the parties
hereto and their respective successors and assigns. This Payoff Letter may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the
same agreement. Delivery of an executed counterpart to this Payoff Letter by facsimile, “.pdf” file or similar electronic means shall constitute, and shall be effective as, delivery of a manually signed counterpart hereto. 

[signature pages follow] 

  
 3 

			
	Very truly yours,
	
	WESCO RECEIVABLES CORP.
		
	By:	 	 
	Name:
	Title:

  

			
	 WESCO DISTRIBUTION, INC.,
 as Servicer

		
	By:	 	 
	Name:
	Title:

  

					
		 	S-1	 	PrivateBank Payoff Letter

 Acknowledged and agreed to 
 as of the above referenced date: 
  

			
	PNC BANK, NATIONAL ASSOCIATION,
	as Administrator
		
	By:	 	 
	Name:
	Title:

  

					
		 	S-2	 	PrivateBank Payoff Letter

			
	 THE PRIVATEBANK AND TRUST COMPANY,
 as a Conduit Purchaser

		
	By:	 	 
	Name:
	Title:

  

			
	 THE PRIVATEBANK AND TRUST COMPANY,
 as Purchaser Agent for The PrivateBank
 and Trust Company

		
	By:	 	 
	Name:
	Title:

  

			
	 THE PRIVATEBANK AND TRUST COMPANY,
 as a Related Committed Purchaser

		
	By:	 	 
	Name:
	Title:

  

					
		 	S-3	 	PrivateBank Payoff Letter

 SCHEDULE I 
 WESCO Receivables Corp. 
 225 West Station Square Drive 

Suite 700 
 Pittsburgh, Pennsylvania 15219

 Attention: Vice President and Treasurer 
 Telephone: (412) 454-4220 
 Facsimile: (412) 454-2595 

WESCO Distribution, Inc. 
 225 West Station
Square Drive 
 Suite 700 
 Pittsburgh,
Pennsylvania 15219 
 Attention: Vice President and Treasurer 
 Telephone: (412) 454-4220 
 Facsimile: (412) 454-2595 

PNC Bank, National Association 
 Three PNC Plaza

 225 Fifth Avenue 
 Pittsburgh,
Pennsylvania 15222 
 Attention: William Falcon 
 Telephone No.: (412) 762-5442 
 Facsimile No.: (412) 762-9184 

The PrivateBank and Trust Company 
 3343
Peachtree Rd NE, 
 Suite 750 
 Atlanta,
Georgia 30326 
 Attention: Chandra Pierson 
 Telephone No.: (404) 926-2455 

  

					
		  	Sch. I	  	PrivateBank Payoff Letter

 SCHEDULE II 
 PAYOFF AMOUNT 
 As of the Payoff Time, the Payoff Amount with respect to
PrivateBank is as set forth below: 
 PrivateBank 
  

					
	 Investment:
	  	$	 9,833,333.34	  
	 Discount:
	  	$	 6,640.45	  
	 Fees:
	  	$	 1,421.85	  
	 Other:
	  	$	 0	  
	 Payoff Amount:
	  	$	 9,841,395.64	  

  

  

					
		  	Sch. II	  	PrivateBank Payoff Letter

 SCHEDULE III 
 PAYMENT INSTRUCTIONS 
 Payments with respect to the Payoff Amount should be made in accordance
with the following payment instructions: 
  

					
	To:	 	The PrivateBank and Trust Company
		 	ABA:	  	071006486
		 	Account:	  	150805001
		 	Account Name:	  	Loan Control
		 	Attn:	  	Syndications Team
		 	Ref:	  	WESCO Receivables Corp.

	 	

  

					
		 	Sch. III	 	PrivateBank Payoff Letter

 EXHIBIT C 

 

									
	 Purchaser
	  	Non-pro rata Purchase
(paydown)	 	 	Investment (after giving
effect to the non-pro rata
Purchase (paydown))	 
	 Wells Fargo Bank, National Association
	  	$	52,026,315.79	  	 	$	140,526,315.79	  
	 The Huntington National Bank
	  	$	11,251,461.99	  	 	$	37,473,684.21	  
	 U.S. Bank National Association
	  	$	12,657,894.73	  	 	$	42,157,894.74	  
	 Market Street Funding LLC
	  	$	61,394,736.85	  	 	$	149,894,736.84	  
	 The PrivateBank and Trust Company
	  	$	(9,833,333.34	) 	 	$	0	  
	 Fifth Third
	  	$	22,502,923.98	  	 	$	74,947,368.42	  
		  	  
	  
	 	 	  
	  
	 
	 Total
	  	$	150,000,000.00	  	 	$	445,000,000.00	  
		  	  
	  
	 	 	  
	  
	 

  

					
		 	Exhibit C-1Amended and Restated Factoring and Security Agreement

 Exhibit 10.7 
 AMENDED AND RESTATED FACTORING 
 AND SECURITY AGREEMENT 

Date: December 1, 2012 (the “Agreement Date”) 
 Name of Client (“Client”): Meade Instruments Corp. 
 Factor: FCC, LLC d/b/a First
Capital Western Region, LLC (“Factor”) 
 WHEREAS, Client has requested and Factor has agreed to purchase all
of Client’s Accounts, provide Account Advances against such Accounts, guaranty Letters of Credit and provide certain services; 
 WHEREAS, Client and Factor are parties to that certain Factoring and Security Agreement – Factor Sub Accounts dated as of January 30, 2009, that certain Factoring and Inventory Advances
and Security Agreement dated as of January 30, 2009, and that certain Loan and Security Agreement – Factor Sub Accounts dated January 30, 2009 (all documents as amended, restated, modified, supplemented from time to time through the
date hereof, the “Original Agreements”); 
 WHEREAS, Client has requested and Factor has agreed amend, restate,
consolidate and replace the Original Agreements into this Amended and Restated Factoring and Security Agreement wherein Client requests and Factor agrees to purchase all of Client’s Accounts, provide Account Advances against such Accounts,
guaranty Letters of Credit and provide certain services; 
 WHEREAS, this Agreement amends, restates, consolidates,
replaces and supersedes in their entirety the Original Agreements between Client and Factor; 
 WHEREAS, the security
interests of Factor under the Original Agreements and under the Patent and Trademark Security Agreement dated January 30, 2009, between Client and Factor and the Stock Pledge Agreement dated January 30, 2009, between Client (as Pledgor)
and Factor remain in full force and effect. 
 NOW, THEREFORE, in consideration of the agreements, provisions, and
covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Client and Factor, hereby agree to the terms and conditions set forth in this Amended and Restated Factoring and
Security Agreement: 
 Section 1. Definitions. 
 1.1 Defined Terms. Capitalized terms shall have the meanings ascribed to them on Schedule A. 
 1.2 Other Referential Provisions. 
 (a) All terms in this Agreement, the
Exhibits and Schedules shall have the same defined meanings when used in any other Factoring Documents, unless the context shall require otherwise. 
 (b) Except as otherwise expressly provided herein, all accounting terms not specifically defined or specified herein shall have the meanings generally attributed to such terms under GAAP including,
without limitation, applicable statements and interpretations issued by the Financial Accounting Standards Board and bulletins, opinions, interpretations and statements issued by the American Institute of Certified Public Accountants or its
committees. 

 (c) All personal pronouns used in this Agreement, whether used in the masculine, feminine or
neuter gender, shall include all other genders; the singular shall include the plural, and the plural shall include the singular. 
 (d) The words “hereof”, “herein”, “hereto” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not
to any particular provisions of this Agreement. 
 (e) Titles of Articles and Sections in this Agreement are for convenience
only, do not constitute part of this Agreement and neither limit nor amplify the provisions of this Agreement, and all references in this Agreement to Articles, Sections, Subsections, paragraphs, clauses, sub clauses, Schedules or Exhibits shall
refer to the corresponding Article, Section, Subsection, paragraph, clause or sub clause of, or Schedule or Exhibit attached to, this Agreement, unless specific reference is made to the articles, sections or other subdivisions or divisions of, or to
schedules or exhibits to, another document or instrument. 
 (f) Each definition of or reference to a document in this Agreement
shall include such document as amended, modified, supplemented or restated from time to time. 
 (g) Except where specifically
restricted, reference to any Person shall be construed to include such Person’s successors and permitted assigns. 
 (h)
Any and all terms used in this Agreement which are defined in the UCC shall be construed and defined in accordance with the meaning and definition ascribed to such terms under the UCC, unless otherwise defined herein. 

(i) The words “include”, “includes” and “including” shall be deemed to be followed by the phrase
“without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Reference to any law, constitution, statute, treaty, regulation, rule or ordinance, including any section
or other part thereof (each, for purposes of this paragraph (i), a “law”), shall refer to that law as amended from time to time and shall include any successor law. 
 1.3 Exhibits and Schedules. All Exhibits and Schedules attached hereto are incorporated herein by reference and made a part hereof. 

Section 2. Purchase & Sale of Accounts. 
 2.1 Purchase of Accounts. Immediately upon the creation of each and every Account of Client, such Account shall be sold to Factor hereunder. Upon such sale, Factor shall acquire all of
Client’s right, title and interest in and to all of Client’s Accounts. Factor shall be the sole and exclusive owner of such Accounts with full power to collect and otherwise deal with such Accounts. All Accounts shall be submitted to
Factor on a Schedule of Accounts listing each Account separately. The Schedule of Accounts shall be in such form as Factor may prescribe from time to time and shall be signed by an officer or authorized signer of the Client. Client may submit such
Accounts electronically, by facsimile, by mail or other delivery service of Client’s choosing that is approved by Factor. Any Accounts submitted electronically shall be submitted in such electronic format as Factor may require. At the time the
Schedule of Accounts is presented, Client shall also deliver to Factor, if requested by Factor, one copy of an invoice for each Account together with evidence of shipment, furnishing and/or delivery of the Goods or rendition of service(s).

 2.2 Credit Approval. 
 (a) Client shall submit to Factor the credit requirements of Client’s Customers, a description of its selling terms and such other information as Factor may request. Factor may, in its sole credit
judgment, establish credit lines for sales by Client to its Customers on its normal selling terms or such other terms as Factor may approve (“Credit Lines”). Client may also submit for credit approval specific orders from Customers and
Factor may, in its sole credit judgment, approve such orders on a single order approval basis 

  
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Factoring and Security Agreement - Meade Instruments Corp. 
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(“Single Order Approval”). Accounts arising under the terms of Credit Lines or Single Order Approvals are hereinafter referred to as Approved Accounts; Accounts not arising under Credit
Lines or Single Order Approvals, and Accounts arising from sales to any foreign Customer (“Foreign Accounts”) are hereinafter referred to as Client Risk Accounts. Client agrees to pay Factor a fee of three-quarters of one percent (0.75%)
of Foreign Account. All Credit Approvals must be in writing to be effective. Credit Approval(s) shall be limited to the specific terms and amounts indicated in either the Credit Line or Single Order Approval. If Goods are shipped or services are
rendered based on a verbal approval, it is Client’s responsibility to ensure that such Credit Approval is received in writing. Any Account for freight, samples, or miscellaneous sales (including the sale of Goods and/or in quantities not
regularly sold by Client) shall always be a Client Risk Account, notwithstanding any written Credit Approval from Factor. For purposes of determining Factor’s Credit Approval hereunder, the Account(s) balance due Factor from any given Customer
shall be calculated as the aggregate amount owed by that Customer less any credits to which such Customer may be entitled, and is not to be construed to mean individual invoices owed by that Customer. 

 

	(b)	Credit Approval(s) may be withdrawn, either orally or in writing, in Factor’s discretion at any time before actual delivery of Goods or rendering of services.
Credit Approval(s) are automatically rescinded and withdrawn if: 

  

	 	(i)	the terms of sale vary from the terms approved by Factor, or 

  

	 	(ii)	the terms of sale are changed by Client without Factor’s prior written approval of the new terms, or 

 

	 	(iii)	the Account is not assigned to Factor within ten days from the date of the invoice, or if the Goods are not delivered on or before the expiration of the Single Order
Approval or if there is no expiration date, if the Goods are not delivered within 30 days of the date of the Single Order Credit Approval. 

 If Accounts exceed either a Credit Line or Single Order Approval, only the amount in excess of the Credit Line or Single Order Approval shall be considered Client Risk Accounts, provided, however, that if
Client ships Goods or provides services to a Customer who has outstanding Accounts owed to Client, and such Customer’s Credit Line and/or outstanding Single Order Approval(s) have been withdrawn by Factor, and the Accounts created by such
shipment exceed ten percent (10%) of the total amount of Client’s Accounts outstanding, any Credit Approvals applying to those Accounts shall be deemed cancelled and all outstanding Accounts from that Customer are Client Risk Accounts for
all purposes. 
 (c) Factor shall have no liability of any kind for declining or refusing to give, or for withdrawing, revoking,
or modifying, any Credit Approval pursuant to the terms of this Agreement, or for exercising or failing to exercise any rights or remedies Factor may have under this Agreement or otherwise. In the event Factor declines to give Credit Approval on any
order received by Client from a Customer and in advising Client of such decline Factor furnishes Client with information as to the credit standing of the Customer, such information shall be deemed to have been requested of Factor by Client and
Factor’s advice containing such information is recognized as a privileged communication. Client agrees that such information shall not be given to Client’s Customer or to Client’s sales representative(s). If necessary, Client shall
merely advise its Customer(s) that credit has been declined on the account and that any questions should be directed to Factor. 

(d) Factor will assume the Credit Risk on Approved Accounts, i.e., if a Customer, after receiving and accepting the delivery of Goods or
services (subject to all warranties herein) for which Factor has given written Credit Approval, fails to pay an Account when due, and such nonpayment is due solely to financial inability to pay, Factor shall bear any loss thereon up to the amount of
the Credit Approval, subject to the terms and provisions stated herein or in the Credit Approval. If Factor fails to collect an Approved Account within 120 Days of its maturity solely due to the Customer’s financial inability to pay, Factor
will pay the Purchase Price of such Approved Account to Client on the Collection Date. Specifically, Factor shall not be responsible for any nonpayment of a Credit Approved Account: (i) because of the assertion of any claim or Dispute by a
Customer for any reason whatsoever, including, dispute as to price, terms of sales, delivery, quantity, quality, or other, or the exercise of any counterclaim or offset (whether or not such 

  
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 of 37 

 
claim, counterclaim or offset relates to the specific Account); (ii) where nonpayment is a consequence of enemy attack, terrorism, natural disaster, civil commotion, strikes, lockouts, the
act or restraint of public authorities, acts of God or force majeure; or (iii) if any representation or warranty made by Client to Factor in respect of such Account has been breached whether intentionally or unintentionally. The assertion of a
Dispute by a Customer shall have the effect of negating any Credit Approval on the affected Approved Account(s) and such Approved Account(s) shall be deemed a Client Risk Account until paid or otherwise cleared from Factor’s books. 

(e) Client shall bear the Credit Risk on all Client Risk Accounts; Factor shall have full recourse to Client for all Client Risk
Accounts. Upon demand by Factor, Client shall pay to Factor the full amount of a Client Risk Account, together with all expenses incurred by Factor up to the date of such payment, including reasonable attorney’s fees in attempting to collect or
enforce such payment or payment of such Account(s). 
 (f) If monies are owing from a Customer for both Approved Accounts and
Client Risk Accounts, Client agrees that any payments or credits applying to any Account owing by such Customer will be applied: first, to any Approved Accounts outstanding on Factor’s books and second, to any Client Risk Account
outstanding on Factor’s books. This order of payment applies regardless of the respective dates the sales occurred and regardless of any notations on payment items. 
 2.3 Purchase Price. 
 (a) On the Collection Date applicable to an Account,
Factor shall pay to Client the Purchase Price for such Account, less (i) any Reserve or credit balance that Factor, in Factor’s sole discretion, determines to hold, (ii) Advances, moneys remitted, paid, or otherwise advanced by Factor
to or on behalf of Client (including any amounts which Client may reasonably be obligated to pay in the future), (iii) any other charges provided for by this Agreement or otherwise due Factor by Client, and (iv) any deductions taken by the
Customer in connection with such Account. 
 (b) No discount, credit, allowance or deduction with respect to any Account in
excess of $10,000 shall be granted or approved by Client to any Customer without the prior written consent of Factor unless such discount, credit, allowance or deduction is shown on the face of an invoice at the time such invoice is submitted to
Factor. Client agrees to give Factor notice of all discounts, credits, allowances or deductions in excess of $10,000. 
 (c)
Client shall pay to Factor or Factor may charge Client’s account with Factor or to the Reserve, the amount of any payment that Factor receives with respect to a Client Risk Account if Factor is subsequently required to return such payment,
whether as a result of any proceeding in bankruptcy or otherwise. 
 (d) Client agrees to repurchase (i) any Account upon
the breach of any representations or warranties relating to such Account or upon a Default hereunder, (ii) any Client Risk Account that is more than ninety (90) days past due, and (iii) any Approved Account at any time after the
assertion of a Dispute. 
 2.4 Reserve. Factor shall be entitled to withhold a Reserve, and may revise the Reserve at any
time and from time to time if Factor deems it necessary to do so in order to protect Factor’s interests. Factor may charge against the Reserve any amount for which Client may be obligated to Factor at any time, whether under the terms of this
Agreement, or otherwise, including but not limited to the repayment of any damages suffered by Factor as a result of Client’s breach of any provision hereof (whether intentional or unintentional), any adjustments due and any attorneys’
fees, costs and disbursements due. Client recognizes that the Reserve represents bookkeeping entries only and not cash funds. It is further agreed that with respect to the balance in the Reserve, Factor is authorized to withhold, without giving
prior notice to Client, such payments and credits otherwise due to Client under the terms of this Agreement for reasonably anticipated claims or to adequately satisfy reasonably anticipated Obligation(s) Client may owe Factor. In addition to the
foregoing, Factor shall be entitled to withhold a Reserve of $500,000 from collections of Foreign Accounts arising from the United Kingdom, Germany, Australia and Canada. In the 

  
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Reserve event the amount of Foreign Accounts arising from the United Kingdom, Germany, Australia and Canada drops below $500,000, the amount to bring the balance back up to $500,000 will be taken
from the Domestic Accounts. 
 2.5 Notice Of Purchase. All invoices submitted to Customers by Client shall plainly state
on their face that the amounts payable thereunder are payable to Factor at such lockbox address as Factor may designate to Client in writing from time to time. 
 Section 3. Account Advances. 
 3.1 Account Advances. In Factor’s
sole discretion, subject to the terms and conditions of this Agreement, Factor may from time to time advance to Client up to seventy-five percent (75.0%) of the aggregate Net Invoice Amount of Domestic Accounts outstanding at the time any such
Account Advance is made, except Factor may, in Factor’s sole discretion, advance to Client up to fifty percent (50.0%) of the aggregate Net Invoice Amount of Costco Accounts outstanding at the time any such advance is made, in either case
provided that dilution is ten percent (10%) or less on a trailing 12 month basis, less: (1) Any such Accounts that are in Dispute; (2) any such Accounts that are not acceptable to Factor in its sole discretion; (3) the amount of
the Reserve; and (4) any interest, fees and other items, actual or estimated, that are chargeable to the Reserve. The Account Advances shall be reduced by a minimum of two percent (2.0%) for every one percent (1.0%) of dilution in
excess of ten percent (10.0%). Factor shall not make account advances to Client for Foreign Accounts at any time. 
 3.2
Maximum Credit Facility Amount. Notwithstanding anything to the contrary in this Agreement, in no event shall the total of the outstanding Account Advances exceed Three Million and No/100 Dollars ($3,000,000) at any one time (“Maximum
Credit Facility Amount”), and Client shall immediately pay to Factor any and all amounts necessary to reduce the aggregate outstanding Account Advances below such limit. 
 Section 4. Collections/Repayment. 
 4.1 Collections. 

(a) Factor shall have the right at any time with or without notice to Client, to notify any or all Customers of the sale and assignment
of the Accounts and pledge of the Collateral to Factor and to direct such Customers to make payment of all amounts due or to become due to Client directly to Factor. Client agrees not to change any of such instructions or to give its Customers
different instructions so long as this Agreement shall remain in effect. To the extent there are no Obligations of Client owed to Factor hereunder and so long as Client is not in Default, Factor shall be deemed to have received any such proceeds of
Accounts and other Collateral in excess of that to which Factor is entitled as Owner of the Accounts or repayment in full of any Obligations, as a pure pass-through for and on account of Client. 

(b) Factor, as the sole and absolute owner of the Accounts, shall have the sole and exclusive power and authority to collect each such
Account, through legal action or otherwise, and Factor may, in its sole discretion, settle, compromise, or assign (in whole or in part) any of such Accounts, or otherwise exercise, to the maximum extent permitted by applicable law, any other right
now existing or hereafter arising with respect to any of such Accounts. 
 (c) Should Client receive payment of all or
any portion of any Account or other Collateral, Client shall immediately notify Factor of the receipt of such payment, hold such payment in trust for Factor separate and apart from Client’s own property and funds, and shall deliver such payment
to Factor without delay in the identical form in which received. Should Client receive any check or other payment instrument with respect to any Account or other Collateral and fail to surrender and deliver to Factor such check or payment instrument
within five (5) days, Factor shall be entitled to charge Client a Misdirected Payment Fee to compensate Factor for the additional administrative expenses that the parties acknowledge are likely to be incurred as a result of such breach.

  
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 (d) In the event any Goods, the sale of which gave rise to an Account, are returned to or
repossessed by Client, such Goods shall be held by Client in trust for Factor, separate and apart from Client’s own property, and stored in the United States of America, subject to Factor’s sole direction, access and control and, if
applicable, subject to a lien waiver, subordination agreement or similar agreement acceptable to Factor. 
 (e) Client agrees to
notify Factor promptly in writing of any credit loss, or anticipated credit loss, for Approved Accounts, such notice in any event to be received by Factor no longer than 120 days after the maturity date of the invoice (based on its longest optional
terms). Client’s failure to provide such notice to Factor within the 120 day period shall result in Client assuming the entire Credit Risk on such Account, and Factor shall be deemed free of any such Credit Risk. 

4.2 Repayment. 
 (a) Client hereby unconditionally promises to pay all Advances, Letters of Credit Obligations and all other Obligations. All Advances and Obligations shall bear interest at the rate set forth in
subsection 5.1 below until paid in full. All Advances and all other Obligations shall be immediately due and payable upon termination of this Agreement for any reason. 
 (b) The Purchase Price and all other amounts received by Factor will be paid to Client by crediting same to Client’s account with Factor on the Collection Date. The Purchase Price and all other
amounts so credited to Client’s account with Factor shall be applied first to all fees and expenses due Factor, next to accrued interest, and then to Account Advances, provided, however, that the allocation of Credit Risk shall be governed by
Section 2.2 hereof. 
 (c) Client shall make each payment required hereunder or under any other Factoring Document without
setoff, deduction or counterclaim. 
 (d) Unless payment is otherwise timely made by Client, the becoming due of any amount
required to be paid under this Agreement or any other Factoring Documents as principal, accrued interest, expenses or fees shall be deemed irrevocably to be a request by Client for an Account Advance or Inventory Advance on the due date of, and in
the amount required to pay, such principal, accrued interest or fees or expenses and the proceeds of each such Account Advances if made by Factor, shall be disbursed by Factor by way of direct payment of such Obligation. 

Section 5. Interest and Fees. 
 5.1 Interest. 
 (a) Client will pay Factor or, at Factor’s option,
Factor may charge Client’s account with, interest on the average daily net principal amount of all Obligations outstanding hereunder, calculated monthly and payable on the first day of each calendar month, at a rate (computed on the basis of
the actual number of days elapsed over a year of 360 days) equal to the sum of (i) LIBOR, plus (ii) five and three-quarters percent (5.75%) (the “Interest Rate”). The Interest Rate may not be the lowest or best rate at which
Factor calculates interest or extends credit. The Interest Rate for each calendar month shall be adjusted (if necessary) on the first day of such calendar month and shall be equal to the Interest Rate in effect as of the close of business on the
last Business Day of the immediately preceding calendar month. 
 As used herein, the following terms shall have the following
meanings: 
 “LIBOR” means, at any time, an interest rate per annum equal to the interest
rate per annum (rounded upwards, if necessary, to the nearest 1/100th of 1%) as published in the “Money Rates” section of The Wall Street Journal (or another national publication selected by Factor) as the one-month London Interbank Offered Rate for United
States dollar deposits (or, if such page shall cease to be publicly available or, if the information/description contained on such page, in Factor’s sole judgment, shall cease to accurately reflect such London Interbank Offered Rate, then such

  
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Factoring and Security Agreement - Meade Instruments Corp. 
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rate as reported by any publicly available recognized source of similar market data selected by Factor that, in Factor’s reasonable judgment, accurately reflects such London Interbank
Offered Rate). 
 (b) Market Disruption Event. If, at any time, Factor determines (which determination shall be
conclusive and binding) that (i) by reason of circumstances affecting the London interbank market generally, adequate and fair means do not exist for ascertaining LIBOR for the following month as provided in subsection (a) hereof, or
(b) disruptions in the short term money markets have materially and adversely affected Factor’s cost of funds such that the interest rate hereunder does not adequately or fairly reflect Factor’s cost of making, funding or maintaining
the loan hereunder, a “Market Disruption Event” will be deemed to have occurred and Factor shall promptly notify Client thereof. The rate of interest hereunder (the “Adjusted Rate of Interest”) shall be adjusted and shall
thereafter be a rate equal to the sum of (x) the rate that Factor determines (which determination shall be conclusive and binding), expressed as a percentage rate per annum, to be the cost to Factor of funding the loan from whatever source it
may reasonably elect, plus (y) the Interest Margin. Factor shall give prompt notice to Client of the Adjusted Rate of Interest. 
 Client shall begin to be charged interest at the Adjusted Rate of Interest effective as of the first day of the month following the month in which Factor provides notice thereof to Client;
provided, however, that if Client is unwilling to accept the Adjusted Rate of Interest, it may terminate this Agreement and prepay all amounts due hereunder within thirty (30) days of the effective date of the Adjusted Rate of
Interest without paying a prepayment fee. 
 (c) If during any month, a net credit balance exists (i.e., the Reserve or
credit balance exceeds outstanding Accounts), then Factor shall credit Client’s account as of the last day of each month with interest at a rate equal to zero percent (0.0%) or one percent (1.0%) below LIBOR. 

(d) Interest shall be charged to Client’s account with Factor as of the last day of each month and shall constitute Obligations. Any
adjustment in Factor’s interest rate, whether downward or upward will become effective on the first day of the month following the month in which Interest Rate is reduced or increased. All interest shall be computed for the actual number of
days elapsed on the basis of a year consisting of 360 days. 
 (e) To the extent permitted by law and without limiting any other
right or remedy of Factor hereunder, whenever there is a Default under this Agreement, the rate of interest on the Obligations shall, at the option of Factor, be increased to a default interest rate by adding five percent (5.0%) to the highest
interest rate otherwise in effect hereunder. Factor may charge such default interest rate retroactively beginning on the date the applicable Default first occurred or existed. Client acknowledges that: (i) such additional rate is a material
inducement to Factor to purchase Accounts or consider requests for Advances hereunder; (ii) Factor would not have made the Advances in the absence of the agreement of Client to pay such additional rate; (iii) such additional rate
represents compensation for increased risk to Factor that Factor will not be repaid; and (iv) such rate is not a penalty and represents a reasonable estimate of (A) the cost to Factor in allocating its resources (both personnel and
financial) to the ongoing review, monitoring, administration or collection of the Advances and Obligations, and (B) compensation to Factor for losses that are difficult to ascertain. In the event of termination of this Agreement by either party
hereto, Factor’s entitlement to this charge will continue until all Obligations are paid in full. 
 (f) IT IS
THE INTENTION OF THE PARTIES HERETO THAT AS TO ALL ACCOUNTS, THE TRANSACTIONS CONTEMPLATED HEREBY SHALL CONSTITUTE A TRUE PURCHASE AND SALE OF ACCOUNT(S) UNDER § 9-318 OF THE UCC AS IN EFFECT IN THE STATE OF CALIFORNIA AND AS SUCH, THE CLIENT
SHALL HAVE NO LEGAL OR EQUITABLE INTEREST IN SUCH PROPERTY SOLD. NEVERTHELESS, IN THE EVENT ANY PORTION OF THIS TRANSACTION IS CHARACTERIZED AS A LOAN AND AS IT RELATES TO THE INVENTORY ADVANCE, THE PARTIES HERETO INTEND TO CONTRACT IN STRICT
COMPLIANCE WITH APPLICABLE USURY LAW FROM TIME TO TIME IN EFFECT. IN FURTHERANCE THEREOF SUCH PARTIES STIPULATE AND AGREE 

  
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THAT NONE OF THE TERMS AND PROVISIONS CONTAINED IN THIS AGREEMENT SHALL EVER BE CONSTRUED TO CREATE A CONTRACT TO PAY, FOR THE USE, FORBEARANCE OR DETENTION OF MONEY, INTEREST IN EXCESS OF THE
MAXIMUM RATE (AS HEREINAFTER DEFINED) FROM TIME TO TIME IN EFFECT. NEITHER CLIENT, ANY PRESENT OR FUTURE GUARANTOR OR ANY OTHER PERSON HEREAFTER BECOMING LIABLE FOR THE PAYMENT OF THE OBLIGATIONS, SHALL EVER BE LIABLE FOR ANY OBLIGATION THAT MAY BE
CHARACTERIZED AS UNEARNED INTEREST THEREON OR SHALL EVER BE REQUIRED TO PAY ANY OBLIGATION THAT MAY BE CHARACTERIZED AS INTEREST THEREON IN EXCESS OF THE MAXIMUM AMOUNT THAT MAY BE LAWFULLY CHARGED UNDER APPLICABLE LAW FROM TIME TO TIME IN EFFECT,
AND THE PROVISIONS OF THIS SECTION SHALL CONTROL OVER ALL OTHER PROVISIONS OF THIS AGREEMENT WHICH MAY BE IN CONFLICT THEREWITH. IF ANY INDEBTEDNESS OR OBLIGATION OWED BY CLIENT HEREUNDER IS DETERMINED TO BE IN EXCESS OF THE LEGAL MAXIMUM, OR FACTOR
SHALL OTHERWISE COLLECT MONEYS WHICH ARE DETERMINED TO CONSTITUTE INTEREST WHICH WOULD OTHERWISE INCREASE THE INTEREST ON ALL OR ANY PART OF SUCH OBLIGATIONS TO AN AMOUNT IN EXCESS OF THAT PERMITTED TO BE CHARGED BY APPLICABLE LAW THEN IN EFFECT,
THEN ALL SUCH SUMS DETERMINED TO CONSTITUTE INTEREST IN EXCESS OF SUCH LEGAL LIMIT SHALL, WITHOUT PENALTY, BE PROMPTLY APPLIED TO REDUCE THE THEN OUTSTANDING OBLIGATIONS OR, AT FACTOR’S OPTION, RETURNED TO CLIENT OR THE OTHER PAYOR THEREOF UPON
SUCH DETERMINATION. IF AT ANY TIME THE RATE AT WHICH INTEREST IS PAYABLE HEREUNDER EXCEEDS THE MAXIMUM RATE, THE AMOUNT OUTSTANDING HEREUNDER SHALL CEASE BEARING INTEREST UNTIL SUCH TIME AS THE TOTAL AMOUNT OF INTEREST ACCRUED HEREUNDER EQUALS (BUT
DOES NOT EXCEED) THE MAXIMUM RATE APPLICABLE HERETO. AS USED IN THIS SECTION, THE TERM “APPLICABLE LAW” MEANS THE LAWS OF THE STATE OF CALIFORNIA OR, IF DIFFERENT, THE LAWS OF THE STATE OR TERRITORY IN WHICH THE CLIENT RESIDES, WHICHEVER
LAW ALLOWS THE GREATER RATE OF INTEREST, AS SUCH LAWS NOW EXIST OR MAY BE CHANGED OR AMENDED OR COME INTO EFFECT IN THE FUTURE AND THE TERM “MAXIMUM RATE” MEANS THE MAXIMUM NONUSURIOUS RATE OF INTEREST THAT FACTOR IS PERMITTED UNDER
APPLICABLE LAW TO CONTRACT FOR, TAKE, CHARGE OR RECEIVE WITH RESPECT TO THE OBLIGATIONS. 
 5.2 Commission.

 (a) For Factor’s services hereunder, Client shall pay and Factor shall be entitled to receive a factoring Commission
equal to seven-tenths of one percent (0.70%) of the gross invoice amount of each Account (“Commission”). The Commission shall be due and payable to Factor on the date of creation of each Account and shall be chargeable to Client’s
account with Factor. Factor shall be entitled to receive a surcharge equal to two percent (2.0%) of the gross invoice amount of all Accounts arising out of sales to any Customer that is a debtor-in-possession. All of the foregoing fees
constitute compensation to Factor for services rendered and are not interest or a charge for the use of money. 
 (b)
Factor’s Commission is based upon Client’s maximum selling terms of ninety (90) days. Client will not grant additional dating to any Customer without Factor’s prior written approval. If Factor approves extended terms or
additional dating, the rate of Commission shall be increased by one-quarter of one percent (0.25%) of the gross invoice amount of each Account for each 30 days or portion thereof of extended or additional dating. 

5.3 Fees. 
 (a) All of the fees charged under this Agreement constitute compensation to Factor for services rendered and are not interest or a charge for the use of money. Each installment of such fees shall be fully
earned when due and payable and shall not be subject to refund or rebate. 

  
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 (b) It is agreed by and between Client and Factor that Client shall pay Factor a facility
fee in the amount of Two Thousand and No/100 Dollars ($2,000) per month, payable on the first day of each calendar month beginning with the first such date following the Agreement Date, and continuing so long as any loan shall remain outstanding or
this Agreement shall not have been terminated. 
 Section 6. Collateral. 

6.1 Security Interest. In order to secure the payment of all Account Advances and Obligations of Client to Factor, Client hereby
grants to Factor a first priority security interest in and lien upon and assigns, mortgages and pledges to Factor all of Client’s right, title and interest in and to all of Client’s presently existing or hereafter arising Collateral
wherever located. 
 6.2 Perfection/Further Assurances. Client agrees to comply with all appropriate laws in order to
perfect Factor’s security interest in and to the Collateral and to execute such documents as Factor may require from time to time. Client authorizes Factor to file at such times and places as Factor may designate such financing statements,
continuations and amendments thereto as are necessary or desirable to perfect Factor’s rights in and give notice of Factor’s purchase of the Accounts under the Uniform Commercial Code in effect in any applicable jurisdiction and
Factor’s security interest in the Collateral. Factor may at any time and from time to time file financing statements, continuation statements and amendments thereto that describe the Collateral as “all assets” of Client or words of
similar effect and which contain any other information required by Part 5 of Article 9 of the applicable UCC for the sufficiency or filing office acceptance of any financing statement, continuation statement or amendment, including whether
Client is an organization, the type of organization and any organization identification number issued to Client. Client agrees to furnish any such information to Factor promptly upon request. Any such financing statements, continuation statements or
amendments may be signed by Factor on behalf of Client or filed by Factor without the signature of Client and may be filed at any time in any jurisdiction. Client acknowledges that it is not authorized to file any financing statement or amendment or
termination statement with respect to any financing statement naming Client as the debtor and Factor as the secured party without the prior written consent of Factor, and Client agrees that it shall not do so without the prior written consent of
Factor. Client hereby ratifies any UCC financing statements previously filed by Factor. 
 6.3 Collateral Representations,
Warranties & Covenants 
 (a) Client is the sole owner and holder of all Collateral and there is no security
interest, Lien, judgment or other encumbrance in or affecting such Accounts or any of the other Collateral except for Permitted Liens; 
 (b) The Collateral is located at the locations set forth on Schedule 6.3 (b) hereof and at no other location. Client shall provide written notice to Factor of any change in the locations at which it
keeps its Collateral at least thirty (30) days prior to any such change. Client shall obtain from any landlord, warehouseman, or other third party operator of premises on which any Collateral is located an acceptable lien waiver or
subordination agreement in Factor’s favor with respect to such Collateral. In the event that any Collateral, including proceeds, is evidenced by or consists of Negotiable Collateral, Client shall, immediately endorse and assign such Negotiable
Collateral over to Factor and deliver actual physical possession of the Negotiable Collateral to Factor. Client shall at any time and from time to time take such steps as Factor may request for Factor (i) to obtain an acknowledgment, in form
and substance satisfactory to Factor, of any bailee having possession of any of the Collateral that such bailee holds such Collateral for Factor, (ii) to obtain “control” of any investment property, deposit accounts, letter-of-credit
rights or electronic chattel paper in accordance with Article 9 of the UCC, with any agreements establishing control to be in form and substance satisfactory to Factor, and (iii) otherwise to insure the continued perfection and priority of
Factor’s security interest in the Collateral and of the preservation of its rights therein other than the Inventory in Mexico. 
 (c) Accounts. The Accounts are a valid, bona fide account, representing an undisputed indebtedness incurred by the named Customer for goods actually sold and delivered or for services

  
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completely rendered. Other than those discounts, allowances and deductions set forth on the face of the invoice at the time it was created, there are and shall be no set-offs, allowances,
discounts, deductions, counterclaims, or disputes with respect to any Account. Client shall inform Factor, in writing, immediately upon learning that there exists any Dispute. Without prior notice to Factor, Client shall accept no returns greater
than $10,000 at any one time and shall grant no allowance or credit to any Customer greater than $10,000 at any one time. If required by Factor, Client shall submit to Factor credit memos itemized on a separate Schedule of Accounts for all returns
and allowances made during the previous week. At Factor’s option, Factor may require that Client pay Factor for the amount of such credit memos, or in Factor’s sole and exclusive discretion, Factor may agree to accept the Schedule of
Accounts and apply same to Client’s Reserve. 
 (d) Inventory. Client will maintain Inventory at the locations set forth on
Schedule 6.3 (b) hereof subject to a perfected, first-priority Lien in favor of Factor (other than Inventory located in Mexico). Sales of Inventory will be made in compliance with all material requirements of applicable law. Client covenants
and agrees: 
 (i) To notify Factor immediately of any event causing loss or depreciation in the value of Inventory and the
amount of such loss or depreciation; 
 (ii) To keep correct current stock, cost and sales records of Client’s Inventory,
accurately and sufficiently itemizing and describing the kinds, type, and quantities of Inventory and the cost and selling prices thereof, all of which records shall be continuously available to Factor for inspection, and Factor shall at all
reasonable times have access to and the right to inspect and draw off data from any of Client’s other books and records for the purposes of checking and verifying all such statements, stock, cost and sales records; 

(iii) At all reasonable times and from time to time, by or through any of Client’s officers, agents, attorneys, or accountants,
permit Factor to examine or inspect the Inventory wherever located and, for such purposes, to enter upon Client’s premises or wherever any of the Inventory may be found; and 

(iv) Until Default, Client may use the Inventory in any lawful manner not inconsistent with this Agreement or with the terms or
conditions of any policy of insurance thereon, may use and consume any raw materials or supplies, the use and consumption of which is necessary in order to carry on Client’s business, and may also sell the Inventory in the ordinary course of
business. (A sale in the ordinary course of business does not include a transfer in partial or total satisfaction of a debt owing by Client to any person other than Factor.) 
 (e) Equipment. Client will maintain all Equipment used or useful in Client’s business in good and workable condition, ordinary wear and tear excepted, subject to a perfected, first-priority security
interest in Factor’s favor and free and clear of all other Liens except as set forth on Schedule 6.3 (e) at one of the locations set forth on Schedule 6.3(b). 
 (f) Defense of Title. All Collateral will at all times be owned by Client, and Client will defend Client’s title to the Collateral against the claims of third parties. Client will at all times keep
accurate and complete records of the Collateral. 
 (g) Insurance. Client will obtain and maintain in full force and effect
insurance covering the Collateral against all risks to which the Collateral is exposed, including loss, damage, fire, theft, and all other such risks, in such amounts, with such companies, under such policies and in such form as will be satisfactory
to Factor, which policies will name Factor as an additional insured and provide that loss thereunder will be payable to Factor as Factor’s interests may appear upon a loss payee endorsement acceptable to Factor. All proceeds of any such
insurance will be paid over to Factor directly, and Factor may apply such proceeds to payment of the Obligations, whether or not due, in such order of application as Factor determines or, in Factor’s sole discretion, apply such proceeds, in
whole or in part, to the replacement, restoration or rebuilding of the lost or damaged property. Client will provide to Factor from time to time certificates showing such coverage in effect and, at Factor’s request, the underlying policies.

  
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 (h) Commercial Tort Claims. If Client shall at any time acquire a commercial tort claim,
Client shall immediately notify Factor in a writing signed by Client of the details thereof and grant to Factor in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in
form and substance satisfactory to Factor. 
 Section 7. Power of Attorney. 

7.1 Power of Attorney. Client hereby grants to Factor an irrevocable power of attorney authorizing and permitting Factor, at its
option, without notice to Client to do any or all of the following: (a) endorse the name of Client on any checks or other evidences of payment whatsoever that may come into the possession of Factor regarding Accounts or Collateral, including
checks received by Factor pursuant to Section 9 hereof; (b) receive, open and dispose of any mail addressed to Client and put Factor’s address on any statements mailed to Customers; (c) pay, settle, compromise, prosecute or
defend any action, claim, conditional waiver and release, or proceeding relating to Accounts or Collateral; (d) upon the occurrence of a Default, notify in the name of the Client, the U.S. Post Office to change the address for delivery of mail
addressed to Client to such address as Factor may designate, however, Factor shall turn over to Client all such mail not relating to Accounts or Collateral; (e) file any financing statement deemed necessary or appropriate by Factor to protect
Factor’s interest in and to the Accounts or Collateral, or under any provision of this Agreement; (f) effect debits to any deposit account or other account that Client or Client’s principals who have executed a guaranty agreement
maintain at any bank for any sums due to or from the Client under this Agreement; (g) upon a Default, to prepare and mail all invoices relating to Accounts; and (h) to take all actions necessary and proper in order to carry out this
Agreement. The authority granted to Factor herein is irrevocable until this Agreement is terminated and all Obligations are fully satisfied. 
 Section 8. Client’s Representations, Covenants and Warranties. 

Section 8.1 Client’s Representations, Covenants and Warranties. Client represents, warrants and covenants to Factor
that: 
 (a) Client is a corporation or limited liability company, duly organized, validly existing and in good standing under
the laws of the state of Delaware and is qualified and authorized to do business and is in good standing in all states in which such qualification and good standing are necessary or desirable; 

(b) The execution, delivery and performance by Client of this Agreement does not and will not constitute a violation of any applicable
law, violation of Client’s articles of incorporation or organization or bylaws or any material breach of any other document, agreement or instrument to which Client is a party or by which Client is bound. The Agreement is a legal, valid and
binding obligation of Client enforceable against it in accordance with its terms; 
 (c) Client’s address, as set forth
below its signature line hereto, is Client’s mailing address, its chief executive office, principal place of business and the office where all of the books and records concerning the Accounts and/or Collateral are maintained which shall not be
changed without giving thirty (30) days prior written notice to Factor; 
 (d) Client shall maintain
its books and records in accordance with GAAP and shall reflect on its books the absolute sale of the Accounts to Factor. Client shall furnish Factor, upon request, such information and statements, as Factor shall require from time to time regarding
Client’s business affairs, financial condition and results of its operations. Without limiting the generality of the foregoing, Client shall provide Factor, (i) on or prior to the
30th day of each month, unaudited financial statements
with respect to the prior month, (ii) within forty-five (45) days after the end of each of Client’s quarters, unaudited financial statements (on a fiscal year-to-date basis), (iii) within ninety (90) days after the end of
each of Client’s fiscal years, audited financial statements (on a fiscal year-to-date basis) prepared by a CPA acceptable to Factor, (iv) prior to the Agreement Date and annually thereafter, projected income statement, balance sheet and
statement of cash flows by month for the next year, (v) within 30 days of each month-end, a certificate from the president or chief financial officer of Client stating whether any Default has occurred and stating the nature of the Default,
(vi) within 10 days of each month end, a detailed listing of 

  
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Inventory with a cover summary report, (vii) within 10 days of each month-end, a current listing of all open and unpaid accounts payable, and (viii) such other information as Factor may
request. All financial statements and reports furnished to Factor hereunder shall be prepared and all financial computations and determinations pursuant hereto shall be made in accordance with GAAP; 

(e) Client has paid and will pay all taxes and governmental charges imposed with respect to sale of Goods and rendition of services and
shall furnish to Factor upon request satisfactory proof of payment and compliance with all federal, state and local tax requirements; 
 (f) Client will promptly notify Factor of (i) the filing of any lawsuit against Client involving amounts greater than $100,000.00, and (ii) any attachment or any other legal process levied
against Client; 
 (g) The application made and information delivered by or on behalf of Client in connection with this
Agreement, and the statements made therein are true and correct at the time that this Agreement is executed. There is no fact which Client has not disclosed to Factor in writing which could materially adversely affect the properties, business or
financial condition of Client, or any of the Accounts or Collateral, or which is necessary to disclose in order to keep the foregoing representations and warranties from being misleading; 

(h) In no event shall the funds paid to Client hereunder be used directly or indirectly for personal, family, household or agricultural
purposes; 
 (i) Client does business under no trade or assumed names except as indicated below. These names are a trade name
and/or tradestyle by which Client will or may identify and sell certain of its products and under which Client will or may conduct a portion of its business, and are not an independent corporation or other legal entity. Factor is hereby authorized
to receive, endorse and deposit any and all checks sent to it in payment of such Accounts including such checks as are payable to any of the trade styles or tradenames. Accounts invoiced in the name of any tradename or tradestyle are subject to all
of the terms and conditions of this Agreement with the same force and effect as if they were in Client’s corporate name. 
  

					
	Tradenames or Tradestyles:	    	Meade	  	
		    	Meade.com	  	
		    	Coronado	  	

 (j) Any invoice or written communication that is issued by Client to Factor by facsimile transmission is
a duplicate of the original; 
 (k) Any electronic communication of data, whether by e-mail, tape, disk, or otherwise that
Client remits or causes to be remitted to Factor shall be authentic and genuine; and 
 (l) Client does not own, control or
exercise dominion over, in any way whatsoever, the business of any Account or Customer. 
 (m) Client represents and warrants to
Factor that: (i) Client is not engaged as one of Client’s principal activities in owning, carrying or financing the purchase or ownership by others of “margin stock” (as defined in Regulation U of the Board of Governors of the
Federal Reserve System); (ii) Client owns no real property and leases no real property other than as listed on Schedule 8.1 (m); (iii) a true, correct and complete list of any warehousemen, processors, consignees or other bailees with
possession or control of any Inventory is set forth on Schedule 6.3 (b); and (iv) a list and brief description of all bank accounts maintained by Client with any bank or financial institution is set forth on Schedule 8.1 (m); 

8.2 Negative Covenants . 
 (a) No Merger. Client will not merge or consolidate with any other Person or sell, transfer, lease, abandon, or otherwise dispose of a substantial portion of Client’s assets or any of
the Collateral or any interest therein, except that, so long as no Default has occurred and is continuing, Client may sell Inventory in the ordinary course of Client’s business. 

  
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 (b) No Debt or Liens; Taxes. Client will not obtain or attempt to obtain from any
Person other than Factor any loans, Account Advances, or other financial accommodations or indebtedness of any kind, nor will Factor enter into any direct or indirect guaranty of any obligation of another Person. Client will not permit any of
Client’s assets or any part of the Collateral to be subject to any Lien. Client shall pay when due (or before the expiration of any extension period) any tax or other assessment (including all required payments or deposits with respect to
withholding taxes), and Client will, upon request by Factor, promptly furnish Factor with proof satisfactory to Factor that Client has made such payments and deposits. 
 (c) No Distributions. Client will not retire, repurchase or redeem any of Client’s capital stock or other ownership interest in Client, nor declare or pay any dividend in cash or other
property (other than additional shares of capital stock or additional ownership interests) to any owner or holder of Client’s shares or other ownership interest. 
 (d) No ERISA Liabilities. Client will make timely payments of all contributions required to meet the minimum funding standards for Client’s employee benefit plans subject to the Employee
Retirement Income Security Act of 1974 (as amended, “ERISA”) and will promptly report to Factor the occurrence of any reportable event (as defined in ERISA) and any giving or receipt by Client of any governmental notice (other than
routine requests for information) in respect of any such plan. 
 (e) Transactions with Affiliates. Client will not
engage in any transaction with any of Client’s officers, directors, employees, owners or other affiliates, except for an “arms-length” transaction on terms no less favorable to Client than would be granted to Client in a transaction
with a Person who is not an affiliate, which transaction shall be approved by Client’s disinterested directors and shall be disclosed in a timely manner to Client prior to the consummation of the transaction. 

(f) Loans/Investments. Client will not make any loans or Account Advances to or extend any credit to any Person except
(i) the extension of trade credit in the ordinary course of business; and (ii) Account Advances to employees not to exceed an aggregate outstanding amount of $10,000 at any one time outstanding for all employees. Client shall not purchase,
acquire or otherwise invest in any Person except: (A) existing investments in Client’s subsidiaries described on Schedule 8.2 (f); (B) direct obligations of the United States of America maturing within one year from the acquisition
thereof; (C) certificates of deposit issued by, or investment accounts in, banks or financial institutions having a net worth of not less than $50,000,000; and (D) commercial paper rated A-1 by Standard & Poor’s Ratings Group
or P-1 by Moody’s Investors Service, Inc. Without limiting the generality of the foregoing, Client shall not create any new subsidiary. 
 (g) Capital Expenditures. Client shall give Factor notice of any capital expenditures in excess of $450,000 during any fiscal year. 

Section 9. Administration. 
 9.1 Disputes/Chargebacks. Client shall notify Factor immediately upon the assertion by a Customer of a Dispute and Factor may charge such Account back to Client. Factor may charge back to Client
all amounts owing on Client Risk Accounts at any time either before or after the due date. Client indemnifies and holds Factor harmless from and against any and all loss, costs and expenses arising out of Disputes or Client Risk Accounts, including
collection and attorneys fees with respect thereto. A chargeback shall not be deemed a reassignment of an Account and title thereto and to the Goods represented thereby shall remain in Factor until such time as Factor executes a reassignment of the
Account. 
 9.2 Expenses. Client shall pay all costs incurred by Factor pursuant to this Agreement, including search and
filing fees, wire and ACH transfer fees, audit and field examination fees, legal fees (including the allocated cost of internal counsel) for preparation of this Agreement and any other Factoring Documents and the perfection, preservation and
enforcement of any of Factor’s rights hereunder. 

  
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 9.3 Credit Inquiries. Client authorizes Factor to disclose such information as Factor
deems appropriate to Persons making credit inquiries about Client. 
 9.4 Persons Authorized to Request Advances. Client
hereby authorizes and directs Factor to make Advances to or for the benefit of Client upon receipt of instructions from any of the persons listed on Schedule 9.4. Factor shall have no liability whatsoever to Client or any other Person for acting
upon any such instructions which Factor, in good faith, believes were given by any such person, and Factor shall have no duty to inquire as to the propriety of any disbursement. Factor is hereby authorized to make the loans provided for herein based
on instructions received by facsimile, electronic mail, telephone or other method of communication from any of such persons. Although Factor shall make a reasonable effort to determine the person’s identity, Factor shall not be responsible for
determining the authenticity of any such instructions, and Factor may act on the instructions of anyone it perceives to be one of the persons authorized to request loans hereunder. Factor shall have the right to accept the instructions of any of the
foregoing persons unless and until Factor actually receives from Client (in accordance with the notice provisions of this Agreement) written notice of termination of the authority of that person. Client may change persons designated to give Factor
borrowing instructions only by delivering to Factor written notice of such change. Client will ensure that each telephone instruction from any person designated in or pursuant to this paragraph shall be followed by written confirmation of the
request for disbursement in such form as Factor makes available to Client from time to time for such purpose; provided, however, that Client’s failure to provide written confirmation of any telephonic instruction shall not invalidate
such telephonic instruction. 
 9.5 Field Examinations. During the term of this Agreement and so long as there exists or
has existed no Default, Factor may conduct up to four (4) field examinations per Contract Year; provided, however, that upon the occurrence of a Default and so long as it continues, Factor may conduct additional field examinations. Client
agrees to pay to Factor an audit fee of $900 per auditor, per day (including partial days), plus all of Factor’s out-of-pocket travel and living expenses incurred while performing each field examination. 

Section 10. Accounting Information. 
 10.1 Accounting Statements. Factor shall provide Client with information on the Accounts and a monthly reconciliation of the factoring relationship relating to billing, collection, Account
Advances, Obligations and account maintenance such as aging, posting, error resolution and e-mailing or mailing of statements. All of the foregoing shall be in a format and in such detail, as Factor, in its sole discretion, deems appropriate.
Factor’s books and records shall be admissible in evidence without objection as prima facie evidence of the status of the Accounts and Reserve between Factor and Client. Each statement, report, or accounting rendered or issued by Factor to
Client shall be deemed conclusively accurate and binding on Client unless within thirty (30) days after the date of issuance Client notifies Factor to the contrary pursuant to Section 13 hereof, setting forth with specificity the reasons
why Client believes such statement, report, or accounting is inaccurate, as well as what Client believes to be correct amount(s) therefore. If the Client gives notice of its disagreement with Factor’s statement, all matters in such statement
that are not objected to in Client’s notice, shall be deemed conclusively accurate and binding on Client. Client’s failure to receive any monthly statement shall not relieve it of the responsibility to request such statement and
Client’s failure to do so shall nonetheless bind Client to whatever Factor’s records would have reported. 
 10.2
Inspections. Factor shall have the right at any time, at Client’s expense, to visit and inspect Client’s books and records, and to make and take away copies of Client’s books and records. 

Section 11. Defaults and Remedies. 
 11.1 Default. A Default shall be deemed to have occurred hereunder upon the happening of one or more of the following: (a) Client shall fail to pay as and when due any amount owed to Factor;
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Obligor shall breach any covenant, warranty or representation set forth herein or in any Factoring Document or same shall be untrue when made; (c) any Obligor becomes insolvent in that its
debts are greater than the fair value of its assets or is unable to pay its debts as they mature, or admits in writing that it is insolvent or unable to pay its debts, makes an assignment for the benefit of creditors, makes a conveyance fraudulent
as to creditors under any state or federal law, or a proceeding is instituted by or against any Obligor alleging that such Obligor is insolvent or unable to pay debts as they mature, or a petition under any provision of Title 11 of the United States
Code, as amended, or any state insolvency proceeding is filed by or against any Obligor; (d) any involuntary lien, garnishment, attachment or the like shall be issued against or shall attach to the Accounts, the Collateral or any portion
thereof and the same is not released within ten (10) days; (e) any Obligor suffers the entry against it for a final judgment for the payment of money in excess of $100,000.00, unless the same is discharged within thirty (30) days
after the date of entry thereof or an appeal or appropriate proceeding for review thereof is taken within such periods and a stay of execution pending such appeal is obtained; (f) any report, certificate, schedule, financial statement, profit
and loss statement or other statement furnished by Client, or by any Obligor or other person on behalf of Client, to Factor is not true and correct in any material respect; (g) Obligor shall have a federal or state tax lien filed against any of
its properties, or shall fail to pay any federal or state tax when due, or shall fail to file any federal or state tax form as and when due; (h) a material adverse change shall have occurred in Obligor’s financial conditions, business or
operations; (i) any suspension of the operation of Obligor’s present business; (j) dissolution, merger, or consolidation of any Obligor that is a corporation, partnership or limited liability company; (k) transfer of a
substantial part (determined by market value) of the property of any Obligor; (l) sale, transfer or exchange, either directly or indirectly, of a controlling stock or equity ownership interest of any Obligor; (m) termination,
unenforceability or withdrawal of any guaranty for the Obligations, or failure of any Obligor to perform any of its obligations under such a guaranty or assertion by any Obligor that it has no liability or obligation under such a guaranty,
(n) a default or event of default shall occur under the terms of any agreement between Client and Factor, or (o) Client shall breach any covenant or fail to perform any covenant in any agreement between Client and Factor. . 

11.2 Remedies. (a) Upon a Default, Factor may, without demand or notice to Client, exercise all rights and remedies available
to it under this Agreement, under the UCC or otherwise, including terminating this Agreement and declaring all Obligations immediately due and payable, provided, however, that in the event a Default occurs under subsection (c) of
Section 11.1, such termination and acceleration shall occur automatically without any notice, demand or presentment of any kind. 
 (b) Without notice to or demand upon Client or any other Person, Factor may make such payments and do such acts as Factor considers necessary or reasonable to protect its security interest in the
Collateral. Client authorizes Factor to enter each premises where any Collateral is located, take and maintain possession of the Collateral, or any part of it, and to pay, purchase, contest or compromise any lien which in Factor’s opinion
appears to be prior or superior to its security interest and to pay all expenses incurred in connection therewith. Factor may ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale and sell the Collateral. Any
such sale may be either a public or private sale, or both, by way of one or more contracts or transactions, for cash or on terms. It is not necessary that the Collateral be present at any such sale. 

(c) Factor shall be entitled to any form of equitable relief that may be appropriate without having to establish that any remedy at law
is inadequate or other grounds. Factor shall be entitled to freeze, debit and/or effect a set-off against any fund or account Client may maintain with any bank. In the event Factor deems it necessary to seek equitable relief, including but not
limited to injunctive or receivership remedies, as a result of a Default, Client waives any requirement that Factor post or otherwise obtain or procure any bond. Alternatively, in the event Factor, in its sole and exclusive discretion, desires to
procure and post a bond, Factor may procure and file with the court a bond in an amount up to and not greater than $100,000.00 notwithstanding any common or statutory law requirement to the contrary. Upon Factor’s posting of such bond it shall
be entitled to all benefits as if such bond was posted in compliance with state law. Client waives any right it may be entitled to, including an award of attorney’s fees or costs, in the event any equitable relief sought by and awarded to
Factor is thereafter, for whatever reason(s), vacated, dissolved or reversed. 

  
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 11.3 Cumulative Rights; Waivers. The occurrence of any Default shall entitle Factor
to all of the default rights and remedies (without limiting the other rights and remedies exercisable by Factor either prior or subsequent to a Default) as available to a Secured Party under the Uniform Commercial Code in effect in any applicable
jurisdiction. All rights, remedies and powers granted to Factor in this Agreement, or in any other instrument or agreement given by Client to Factor or otherwise available to Factor in equity or at law, are cumulative and may be exercised singularly
or concurrently with such other rights as Factor may have. These rights may be exercised from time to time as to all or any part of the Accounts hereunder or the Collateral as Factor in its discretion may determine. In the event that any part of the
purchase of Accounts hereunder by Factor is construed to be a loan from Factor to Client, any Account Advances or payments made as the Purchase Price for all Accounts shall be secured by the Accounts and the Collateral. Factor may not be held to
have waived its rights and remedies unless the waiver is in writing and signed by Factor. A waiver by Factor of a right, remedy or default under this Agreement on one occasion is not a waiver of any right, remedy or default on any subsequent
occasion. No exercise by Factor of one right or remedy shall be deemed an election, and no waiver by Factor of any default on Client’s part shall be deemed a continuing waiver. No delay by Factor shall constitute a waiver, election or
acquiescence by it. 
 Section 12. Term. 
 12.1 Term. The Original Term of this Agreement shall be two (2) years from the Agreement Date (the “Original Term”). Client may terminate this Agreement at any time by giving not
less than forty-five (45) days notice. Notwithstanding anything herein to the contrary, Factor may terminate this Agreement i) at any time without notice after the occurrence of a Default, or ii) assuming no Default hereunder, at any time by
giving not less than forty-five (45) days notice. Notwithstanding payment in full of all Obligations by Client, any such notice of termination is conditioned on Client’s delivery, to Factor, of a general release (“General
Release”). Client understands that this provision constitutes a waiver of its rights under § 9-513 of the UCC. The substance and content of the General Release must be substantially similar to the example set forth on Schedule 12.1;
provided, however, that the form of such General Release may be a separate document, or incorporated as part of a payoff letter, or incorporated as part of some other document. Factor shall not be required to record any terminations or satisfactions
of any of Factor’s liens on the Collateral unless and until Client has executed and delivered to Factor said General Release and Client shall have no authority to do so without Factor’s express written consent. Any termination of this
Agreement shall not affect Factor’s security interest in the Collateral and Factor’s ownership of the Accounts, and this Agreement shall continue to be effective, until all transactions entered into and Obligations incurred hereunder have
been completed and satisfied in full. The expense reimbursement, repayment and indemnification provisions of this Agreement shall survive the termination of this Agreement. All Obligations shall be immediately due and payable in full upon
termination of this Agreement. 
 Section 13. Notices. Any notice or communication with respect to this Agreement
shall be given in writing, sent by (i) personal delivery, or (ii) overnight delivery service with proof of delivery, or (iii) United States mail, first-class with postage prepaid, or registered or certified mail, or (iv) prepaid
telegram, telex or telecopy, addressed to each party hereto at its address and to the attention of the person listed as set forth below the signatures of the parties to this Agreement. Any such notice or communication shall be deemed to have been
given either at the time of personal delivery or, in the case of overnight delivery service or telecopy, on the next Business Day at the receiving location or in the case of mail, upon receipt. Factor may deliver to Client any notice under this
Agreement via an email sent to the address set forth following Client’s signature below, if sent by a system that will verify the date and time of delivery, and such email will be deemed received when the recipient’s server associated with
the designated email address receives the email. 
 Section 14. Attorney’s Fees. Client agrees to reimburse
Factor upon demand for all reasonable attorney’s fees, court costs and other expenses incurred by Factor in the preparation, negotiation and enforcement of this Agreement and protecting or enforcing its interest in the Accounts or the
Collateral, or in the representation of Factor in connection with any bankruptcy case or insolvency proceeding involving Client, the Collateral, or any Accounts, including any defense of any Avoidance Claims (except to the extent related to Approved
Accounts where no Dispute exists). Client hereby agrees to pay such fees, costs 

  
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and expenses and Factor shall also have the right to charge the Reserve therefore. Notwithstanding the existence of any law, statute or rule, in any jurisdiction which may provide Client with a
right to attorney’s fees or costs, Client hereby waives any and all rights to hereafter seek attorney’s fees or costs hereunder and Client agrees that Factor exclusively shall be entitled to indemnification and recovery of any and all
attorney’s fees or costs in respect to any litigation based hereon, arising out of, or related hereto, whether under, or in connection with, this and/or any agreement executed in conjunction herewith, or any course of conduct, course of
dealing, statements (whether verbal or written) or actions of either party. 
 Section 15. Indemnity. Client hereby
indemnifies and agrees to hold harmless and defend Factor from and against any and all claims, judgments, liabilities, fees and expenses (including attorney’s fees) which may be imposed upon, threatened or asserted against Factor at any time
and from time to time in any way connected with this Agreement or the Collateral. The foregoing indemnification shall apply whether or not such indemnified claims are in any way or to any extent owed, in whole or in part, under any claim or theory
of strict liability, or are caused, in whole or in part, by any negligent act or omission of Factor, except for gross negligence or willful misconduct of Factor. 
 Section 16. Severability. Each and every provision, condition, covenant and representation contained in this Agreement is, and shall be construed to be, a separate and independent covenant and
agreement. If any term or provision of this Agreement shall to any extent be invalid or unenforceable, the remainder of the Agreement shall not be affected thereby. 
 Section 17. Parties in Interest. All grants, covenants and agreements contained in this Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and
assigns; provided, however, that Client may not delegate or assign any of its duties or obligations under this Agreement without the prior written consent of Factor. Notwithstanding anything herein to the contrary, the Factor may, without
consent of the Client, grant a security interest in, sell or assign, grant or sell participations in or otherwise transfer all or any portion of its rights and obligations hereunder to one or more Persons and, upon notice of such assignment,
sale or grant of participation by Factor, to treat such assignee, transferee or participant as “Factor” for all purposes hereunder. 
 Section 18. Governing Law; Submission to Process and Venue. This Agreement shall be deemed a contract made under the laws of the State of California and shall be construed and enforced in
accordance with and governed by the internal laws of the State of California, without reference to the rules thereof relating to conflicts of law. Client hereby irrevocably submits itself to the exclusive jurisdiction of the state and federal courts
located in the county of Los Angeles, California, and agrees and consents that service of process may be made upon it in any legal proceeding relating to this Agreement, the purchase of Accounts or any other relationship between Factor and Client by
any means allowed under state or federal law. Client hereby waives and agrees not to assert, by way of motion, as a defense or otherwise, that any such proceeding, is brought in any inconvenient forum or that the venue thereof is improper.

 Section 19. Entire Agreement/Amendment and Restatement. This Agreement amends, restates, consolidates, replaces
and supersedes in their entirety the Original Agreements. This Agreement and the other Loan Documents (as defined in the Original Agreements) embody the entire agreement and understanding between Factor and Client and supersede all prior agreements
and understandings relating to the subject matter hereof, including the Original Agreements. All Obligations (as defined in the Original Agreements) incurred by Client, and all security interests and liens granted by Client pursuant to the Original
Agreements shall continue in full force and effect, subject to the terms hereof and not the Original Agreements, effective as of the Agreement Date hereof. All Obligations (as defined in the Original Agreements) that are outstanding under the
Original Agreements are deemed to be Advances under this Agreement as of the Agreement Date. This Agreement is an amendment and a restatement of the Original Agreements and is not a novation, cancellation or accord and satisfaction of the Original
Agreements. Any addendum or modification hereto must be signed by both parties and attached hereto in order to be effective. 

Section 20. Acknowledgement and Agreement/Release. To induce Factor to enter into this Agreement and grant the accommodations
set forth herein, Client (a) acknowledges and agrees that no right 

  
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of offset, defense, counterclaim, claim or objection exists in favor of Client against Factor arising out of or with respect to the Original Agreements or any other Factoring Documents (as
defined in the Original Agreements), the Obligations (as defined in the Original Agreements) or any other arrangement or relationship between Factor and Client, and (b) releases, acquits, remises and forever discharges Factor and is affiliates
and all of their past, present and future officers, directors, employees, agents, attorneys, representatives, successors and assigns from any and all claims, demands, actions and causes of action, whether at law or in equity, whether now accrued or
hereafter maturing, and whether known or unknown, which Client now or hereafter may have by reason of any manner, cause or things to and including the date of this Agreement with respect to matters arising out of or with respect to the Original
Agreements, any other Factoring Documents (as defined in the Original Agreements), the Obligations (as defined in the Original Agreements), or any other arrangement or relationship between Factor and Client. 

Section 21. Miscellaneous. 
 (a) Client acknowledges that there is no, and it will not seek or attempt to establish any, fiduciary relationship between Factor and Client, and Client waives any right to assert, now or in the future,
the existence or creation of any fiduciary relationship between Factor and Client in any action or proceeding (whether by way of claim, counterclaim, crossclaim or otherwise) for damages. 

(b) This Agreement shall be deemed to be one of financial accommodation and not assumable by any debtor, trustee or debtor-in-possession
in any bankruptcy proceeding without Factor’s express written consent and may be suspended in the event a petition in bankruptcy is filed by or against Client. 
 (c) In the event Client’s principals, officers or directors form a new entity, whether corporate, partnership, limited liability company or otherwise, similar to that of Client during the term of
this Agreement, such entity shall be deemed to have expressly assumed the obligations due Factor by Client under this Agreement. Upon the formation of any such entity, Factor shall be deemed to have been granted an irrevocable power of attorney with
authority to file, on behalf of the newly formed successor business, a new UCC financing statement or other Uniform Commercial Code financing statement with the appropriate secretary of state or Uniform Commercial Code filing office. Factor shall be
held-harmless and be relieved of any liability resulting from the filing of a financing statement or the resulting perfection of a lien in any of the successor entity’s assets. In addition, Factor shall have the right to notify the successor
entity’s Customers of Factor’s lien rights, its right to collect all Accounts, and to notify any new factor or Factor who has sought to procure a competing lien of Factor’s right is in such successor entity’s assets. 

(d) Client expressly authorizes Factor to access the systems of and/or communicate with any shipping or trucking company in order to
obtain or verify tracking, shipment or delivery status of any Goods regarding an Account. 
 (e) INTENTIONALLY RESERVED.

 (f) Client shall indemnify Factor from any loss arising out of the assertion of any Avoidance Claim. Client shall notify
Factor within two Business Days of it becoming aware of the assertion of an Avoidance Claim. 
 (g) Client agrees to execute any
and all forms (i.e. Forms 8821 and/or 2848) that Factor may require in order to enable Factor to obtain and receive tax information issued by the Department of the Treasury, Internal Revenue Service, or receive refund checks. 

(h) The Client shall make each payment required hereunder, and/or under any instrument delivered hereunder, without setoff, deduction or
counterclaim of any kind, whether any right of setoff, deduction or counterclaim arises pursuant to this Agreement, arises pursuant to applicable law or otherwise. 

  
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 (i) The terms of this Agreement and the other Factoring Documents are confidential and
Client agrees not to disclose same to any party other than its accountants, attorneys and others that are in a confidential relationship with Client and who agree to treat this Agreement and the other Factoring documents and the contents of same as
confidential, except as required by law (i.e. SEC filings). 
 (j) Client will cooperate with Factor in obtaining a control
agreement in form and substance satisfactory to Factor with respect to Collateral consisting of: Deposit Accounts; Investment Property; Letter-of-Credit Rights; and electronic Chattel Paper. 

Section 22. Advertising Release Agreement. Client hereby authorizes Factor to use the name of Client, together with variants
of such names and related logotypes, in advertising and promoting Factor and the business transactions between Factor and Client through the use of so-called “tombstones” and similar publicity. Client hereby releases Factor, its
subsidiaries, affiliates, officers, employees and advertising agents, from any and all liability to Client arising out of or related to the exercise of the rights hereby granted to Factor. 

Section 23. Governing Law; Jurisdiction; Venue, Waiver of Jury Trial and Service of Process. (A) THIS
AGREEMENT SHALL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, APPLICABLE TO AGREEMENTS EXECUTED, DELIVERED AND PERFORMED WITHIN SUCH STATE, AND CLIENT HEREBY
AGREES TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN LOS ANGELES COUNTY, CALIFORNIA, AND WAIVE PERSONAL SERVICE OF ANY AND ALL PROCESS UPON CLIENT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE CERTIFIED MAIL DIRECTED TO CLIENT
AT ITS ADDRESS AS IT APPEARS AT THE BEGINNING OF THIS AGREEMENT AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE (5) BUSINESS DAYS AFTER THE SAME SHALL HAVE BEEN DEPOSITED IN THE U. S. MAILS, CERTIFIED MAIL, RETURN RECEIPT REQUESTED,
POSTAGE PREPAID. CLIENT WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT. NOTHING
IN THIS SECTION SHALL AFFECT FACTOR’S RIGHT TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT FACTOR’S RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST CLIENT OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION.

 (B) EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
(1) ARISING UNDER THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR (2) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM
WITH RESPECT TO THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO. IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING
IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTIONS SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART
OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 

  
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 Section 24. Acknowledgment of Waivers and Loss of Defenses. 

(a) Client acknowledges that certain provisions of this Agreement operate as waivers of rights that Client would otherwise have under
applicable law. Other provisions permit Factor to take actions that Factor would otherwise not have a right to take, to fail to take actions that Factor would otherwise have an obligation to take, or to take actions that may prejudice Client’s
rights and obligations under this Agreement and against the Client. In the absence of these provisions Client might have defenses against Client’s obligations under this Agreement. These defenses might permit Client to avoid some or all of
Client’s obligations under this Agreement. 
 (b) Client intends by the waivers and other provisions of this
Agreement, including the acknowledgement set forth in this section, to be liable to the greatest extent permitted by law for all of Client’s obligations to Factor. Client intends to have this liability even if the terms of the Factoring
Documents change or if Client does not have any rights against Client. 
 (c) Client acknowledges that (i) Client
understands the seriousness of the provisions of this Agreement; (ii) Client has had a full opportunity to consult with counsel of Client’s choice; and (iii) Client has consulted with counsel of Client’s choice or has decided not
to consult with counsel. 
 Section 25. Waiver Of Jury Trial. This Section concerns the resolution
of any controversies or claims between the Client and Factor, whether arising in contract, tort or by statute, including but not limited to controversies or claims that arise out of or relate to: (i) this Agreement (including any renewals,
extensions or modifications); or (ii) any of the other Factoring Documents (collectively a “Claim”). 
 (a) Judicial Reference. 
  

	 	i.	The parties prefer that any dispute between them be resolved in litigation subject to a Jury Trial Waiver as set forth in Section 23 herein, but the California
Supreme Court has held that such pre-dispute jury trial waivers are unenforceable. This Section will be applicable until: (i) the California Supreme Court holds that a pre-dispute jury trial waiver provision similar to that contained in
Section 23 herein is valid or enforceable; or (ii) the California Legislature passes legislation and the governor of the State of California signs into law a statute authorizing pre-dispute jury trial waivers and as a result such waivers
become enforceable. 

  

	 	ii.	Other than the exercise of provisional remedies (any of which may be initiated pursuant to applicable law), any controversy, dispute or claim (each, a
“Claim”) between the parties arising out of or relating to this Agreement will be resolved by a reference proceeding in California in accordance with the provisions of Section 638 et seq. of the California Code of Civil Procedure
(“CCP”), or their successor sections, which shall constitute the exclusive remedy for the resolution of any Claim, including whether the Claim is subject to the reference proceeding. Venue for the reference proceeding will be in the
Superior Court or Federal District Court in Los Angeles County, California (the “Court”). 

  

	 	iii.	The referee shall be a retired Judge or Justice selected by mutual written agreement of the parties. If the parties do not agree, the referee shall be selected by the
Presiding Judge of the Court (or his or her representative). A request for appointment of a referee may be heard on an ex parte or expedited basis, and the parties agree that irreparable harm would result if ex parte relief is not
granted. The referee shall be appointed to sit with all the powers provided by law. Pending appointment of the referee, the Court has power to issue temporary or provisional remedies. 

 

	 	iv.	 The parties agree that time is of the essence in conducting the reference proceedings. Accordingly, the referee shall be requested, subject to change

  
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in the time periods specified herein for good cause shown, to (a) set the matter for a status and trial-setting conference within forty-five (45) days after the date of selection of the
referee, (b) if practicable, try all issues of law or fact within one hundred twenty (120) days after the date of the conference and (c) report a statement of decision within twenty (20) days after the matter has been submitted
for decision. 

  

	 	v.	The referee will have power to expand or limit the amount and duration of discovery. The referee may set or extend discovery deadlines or cutoffs for good cause,
including a party’s failure to provide requested discovery for any reason whatsoever. Unless otherwise ordered based upon good cause shown, no party shall be entitled to “priority” in conducting discovery, depositions may be taken by
either party upon ten (10) days written notice, and all other discovery shall be responded to within twenty (20) days after service. All disputes relating to discovery which cannot be resolved by the parties shall be submitted to the
referee whose decision shall be final and binding. 

  

	 	vi.	Except as expressly set forth in this Agreement, the referee shall determine the manner in which the reference proceeding is conducted including the time and place of
hearings, the order of presentation of evidence, and all other questions that arise with respect to the course of the reference proceeding. All proceedings and hearings conducted before the referee, except for trial, shall be conducted without a
court reporter, except that when any party so requests, a court reporter will be used at any hearing conducted before the referee, and the referee will be provided a courtesy copy of the transcript. The party making such a request shall have the
obligation to arrange for and pay the court reporter. Subject to the referee’s power to award costs to the prevailing party, the parties will equally share the cost of the referee and the court reporter at trial. 

 

	 	vii.	The referee shall be required to determine all issues in accordance with existing case law and the statutory laws of the State of California. The rules of evidence
applicable to proceedings at law in the State of California will be applicable to the reference proceeding. The referee shall be empowered to enter equitable as well as legal relief, provide all temporary or provisional remedies, enter equitable
orders that will be binding on the parties and rule on any motion which would be authorized in a trial, including without limitation motions for summary judgment or summary adjudication. The referee shall issue a decision pursuant to CCP
Section 644 the referee’s decision shall be entered by the Court as a judgment or an order in the same manner as if the action had been tried by the Court. The final judgment or order or from any appealable decision or order entered by the
referee shall be fully appealable as provided by law. The parties reserve the right to findings of fact, conclusions of laws, a written statement of decision, and the right to move for a new trial or a different judgment, which new trial, if
granted, is also to be a reference proceeding under this provision. 

  

	 	viii.	If the enabling legislation which provides for appointment of a referee is repealed (and no successor statute is enacted), any dispute between the parties that would
otherwise be determined by reference procedure will be resolved and determined by arbitration. The arbitration will be conducted by a retired judge or Justice, in accordance with the California Arbitration Act Section 1280 through
Section 1294.2 of the CCP as amended from time to time. The limitations with respect to discovery set forth above shall apply to any such arbitration proceeding. 

  
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	 	ix.	THE PARTIES RECOGNIZE AND AGREE THAT ALL DISPUTES RESOLVED UNDER THIS REFERENCE PROVISION WILL BE DECIDED BY A REFEREE AND NOT BY A JURY. AFTER CONSULTING (OR HAVING
HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY AND FOR THEIR MUTUAL BENEFIT AGREES THAT THIS REFERENCE PROVISION WILL APPLY TO ANY DISPUTE BETWEEN THEM WHICH ARISES OUT OF OR IS RELATED TO THIS
AGREEMENT. 

 [SIGNATURES ON FOLLOWING PAGE] 

  
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 In Witness Whereof, the parties have set their hands and seals on the day and year first
hereinabove written. 
  

			
	FCC, LLC d/b/a First Capital
	Western Region, LLC
		
	By:	 	 /s/ KENNETH P. SMOOKE

	Name:
	Title:     Senior Vice President
	
	601 S. Figueroa Street
	Suite 3460
	Los Angeles, California 90017
	Attention:
	
	MEADE INSTRUMENTS CORP.
		
	By:	 	 /s/ STEVEN G. MURDOCK

	Name:   Steven G. Murdock
	Title:     Chief Executive Officer
	
	Client address & name for notice
	27 Hubble
	Irvine, California 92618
	Attention:
	Email:

  
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	STATE OF CALIFORNIA	  	)	  	
		  	) SS:	  	
	COUNTY OF                     	  	)	  	

 On             , 2012, before me,
            , Notary Public, personally appeared Steven G. Murdock, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument
and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 

WITNESS my hand and official seal. 
 Signature
                    (Signature of Notary)
                    (Seal of Notary) 

  
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 SCHEDULE “A” 

Definitions 
 “Account(s)” means (i) all “accounts” as defined in the UCC due to Client, whether presently existing or hereafter arising due to Client, and (ii) all presently
existing or hereafter arising accounts receivable due to Client (including medical and health-care-insurance receivables), book debts, notes, drafts and acceptances and other forms of obligations or rights to payment of a monetary obligation now or
hereafter owing to Client, whether arising from the sale or lease of goods or the rendition of services by Client or otherwise (including any obligation that might be characterized as an account, contract right, general intangible or chattel paper
under the UCC), all of Client’s rights in, to and under all purchase orders now or hereafter received by Client for goods and services, all proceeds from the sale of Inventory, all monies due or to become due to Client under all contracts for
the sale or lease of goods or the rendition of services by Client or otherwise (whether or not yet earned by performance) (including the right to receive the proceeds of said purchase orders and contracts), all collateral security and guarantees of
any kind given by any obligor with respect to any of the foregoing, and all goods returned to or reclaimed by Client that correspond to any of the foregoing and all proceeds of the foregoing. Accounts shall include Domestic Accounts and also Foreign
Accounts, unless otherwise noted. 
 “Account Advance” means amounts Account Advances by Factor to or for the
benefit of the Client under this Agreement or otherwise against the Net Invoice Amount of Accounts. 
 “Account Advance
Availability” means the amount determined by Factor pursuant to section 3.1 hereof. 
 “Advance(s)”
means all Account Advances and Inventory Advances and any other amounts advanced by Factor to or on behalf of Client. 

“Agreement” means this Amended and Restated Factoring and Security Agreement, including the Exhibits and any Schedules
hereto, and all amendments, modifications and supplements hereto and thereto and restatements hereof and thereof. 

“Approved Account” means an Account representing a sale to a Customer within the terms of a Credit Line established for
such Customer on Client’s normal selling terms or within the Single Order Approval issued by Factor provided that delivery is completed while such Credit Line or Single Order Approval remains in effect and such Account has not been charged back
to the Client. 
 “Avoidance Claim” means any claim that any payment received by Factor from or for the account
of an Account Debtor is avoidable under the federal Bankruptcy Code or any other debtor relief statute. 
 “Business
Day” means any day that a bank located in California, Oklahoma or Ohio is open for business. 
 “Chattel
Paper” means (i) all “chattel paper” as defined in the UCC, and (ii) all record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and
software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods, or a lease of specific goods and license of software used in the goods. 

“Client” has the meaning ascribed thereto in the introductory paragraphs hereof. 

  
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 “Client Risk Account” means those Accounts for which Factor has not given
Credit Approval, for which Credit Approval has been withdrawn or revoked or with respect to which Factor is not responsible under Section 2 hereof. 
 “Collateral” means and includes all of Client’s right, title and interest in and to all of Client’s property, whether real or personal, tangible or intangible, now owned
or existing or hereafter acquired or arising and wherever located, including all of the following: (a) all Accounts, (b) Chattel Paper, (c) Commercial Tort Claims, (d) Deposit Accounts, (e) Documents, (f) Equipment
(g) General Intangibles (including but not limited to all files, correspondence, computer programs, tapes, disks and related data processing software which contain information identifying or pertaining to any of the Collateral or any Customer
or showing the amounts thereof or payments thereon or otherwise necessary or helpful in the realization thereon or the collection thereof), (h) Goods, (i) Inventory, (j) Instruments, (k) Investment Property, (l) Letters of
Credit and Letter of Credit Rights, (m) Negotiable Collateral (n) the Reserve, (o) all Supporting Obligations, (p) to the extent permitted by law, all other personal property and assets of the Client and (q) all proceeds (as
defined in the UCC) and any other products of the foregoing and this clause (q). 
 “Collection Date”
means (a) for payments received by Factor in payment of Accounts, the date a check, draft or other item representing payment on an invoice is posted to Factor’s account plus two (2) Business Days; or (b) for Approved Accounts
paid by Factor solely for any reason other than a Bona Fide Defense, the Friday of the calendar week following the calendar week in which the 120 day period for such Approved Account ends. 

“Commercial Tort Claim” means (i) all “commercial tort claims” as defined in the UCC, and (ii) all
claims arising in tort with respect to which: (A) The claimant is an organization; or (B) The claimant is an individual and the claim: (x) arose in the course of the claimant’s business or profession; and (y) does not
include damages arising out of personal injury to or the death of an individual. 
 “Commission” has the
meaning ascribed thereto in Section 5.2 hereof. 
 “Contract Year” means the twelve month period ending on
the date that is twelve months after the Agreement Date and the twelve month period ending on each annual anniversary thereof. 

“Credit Approval(s) and Credit Approved” means, with regard to an Approved Account, that Factor has accepted the Credit
Risk. 
 “Credit Lines” has the meaning ascribed thereto in Section 2.2 (a). 

“Credit Risk” means the Customer’s failure to pay an Account when due solely because of its financial inability to
pay. 
 “Customer” means any Person who is obligated on an Account, Chattel Paper or General Intangible.

 “Default” means any of the events specified in Section 11 of this Agreement. 

“Deposit Account” means (i) all “deposit accounts” as defined in the UCC , and (ii) any demand,
time, savings, passbook or like account maintained with a bank, savings and loan association, credit union, trust company or like organization, other than an account evidenced by a certificate of deposit that is an instrument under the UCC.

 “Dispute or Disputed Account” means any claim, whether or not provable, bona fide, or with or without
support, made by an Customer as a basis for refusing to pay an Account, either in whole or in part, including any contract dispute, charge back, credit, right to return Goods, or other matter which diminishes or may diminish the dollar amount or
timely collection of such Account. 
 “Documents” means a document of title or a receipt of the type described
in UCC 7-201(2). 

  
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 “Domestic Accounts” means all Accounts arising from sales to Customers that
(i) maintain their chief executive office in the United States of America, or (ii) are organized under the laws of the United States of America or any state thereof, or (iii) is the government of the United States of America or of any
state, municipality, or other political subdivision thereof. 
 “Equipment” means (a) all
“equipment” as defined in the UCC, and (b) all of Client’s present and hereafter acquired machinery, equipment, furniture, fixtures, goods, and all other tangible personal property (other than Inventory), including computer and
other electronic data processing equipment and other office equipment and supplies, computer programs and related data processing software, embedded software, spare parts, tools, motors, automobiles, trucks, tractors and other motor vehicles,
rolling stock, jigs, as well as all of such types of property leased by Client and all of Client’s rights and interests with respect thereto under such leases (including options to purchase), together with all present and future additions and
accessions thereto, replacements therefor, component and auxiliary parts and supplies used or to be used in connection therewith, and all substitutes for any of the foregoing, and all manuals, drawings, instructions, warranties and rights with
respect thereto; wherever any of the foregoing is located. 
 “Factor” has the meaning ascribed thereto in the
introductory paragraph hereof. 
 “Factoring Documents” means, collectively, this Agreement and any other
agreements, instruments, certificates or other documents entered into in connection with this Agreement, including collateral documents, letter of credit agreements, riders covering inventory or other loans, security agreements, pledges, guaranties,
mortgages, deeds of trust, assignments and subordination agreements, and any other agreement executed by Client, any guarantor or any affiliate of Client or any guarantor pursuant hereto or in connection herewith. 

“Financing Statement” means each Uniform Commercial Code financing statement naming the Factor as purchaser/secured
party and the Client as Client/debtor, in connection with this Agreement. 
 “Foreign Accounts” means all
Accounts that do not comply with the definition of Domestic Accounts. 
 “GAAP” means generally accepted
accounting principles consistently applied and maintained throughout the period indicated and consistent with the prior financial practices of the Person referred to. 
 “General Intangible” means (i) all “general intangibles” as defined in the UCC, and (ii) all of Client’s present and future general intangibles and all other
presently owned or hereafter acquired intangible personal property of Client (including payment intangibles and any and all choses or things in action, goodwill, patents and patent applications, tradenames, servicemarks, trademarks and trademark
applications, copyrights, blueprints, drawings, purchase orders, customer lists, monies due or recoverable from pension funds, licenses and rights under any licensing agreements, route lists, infringement claims, software, computer programs,
computer discs, computer tapes, literature, reports, catalogs, deposit accounts, tax refunds and tax refund claims) other than Goods, Accounts, Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents, Equipment, Instruments, Investment
Property, Letters of Credit or Letters of Credit Rights, but specifically including all of Client’s books and records. 

“Goods” means (i) all “goods” as defined in the UCC, and (ii) all of Client’s present and
hereafter acquired goods, wherever located, including imbedded software to the extent included in “goods”, manufactured homes, and standing timber that is cut and removed for sale. 

“Instrument” means (i) all “instruments” as defined in the UCC, and (ii) all negotiable instruments
or any other writings that evidence a right to the payment of a monetary obligation, is not itself a security agreement or lease, and is of a type that in ordinary course of business is transferred by delivery with any necessary endorsement or
assignment. The term does not include (i) Investment Property, (ii) Letters of Credit, or (iii) writings that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with
the card. 

  
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 “Inventory” means (i) all “inventory” as defined in the UCC,
and (ii) all of Client’s inventory, together with all of Client’s present and future inventory, including goods held for sale or lease or to be furnished under a contract of service and all of Client’s present and future raw
materials, work in process, finished goods, shelving and racking upon which the inventory is stored and packing and shipping materials, wherever located, and any documents of title representing any of the above. 

“Inventory Certificate” means the certificate, in such form as Factor may prescribe from time to time substantially with
appropriate insertions, to be submitted to Factor by Client pursuant to this Agreement and certified as true and correct by the Chief Executive Officer or the Chief Financial Officer of Client. 

“Investment Property” means (i) any “investment property” as defined in the UCC, and (ii) a
security, whether certificated or uncertificated, security entitlement, securities account, commodity contract, or commodity account. 
 “Issuer” means a financial institution selected by Factor and reasonably acceptable to Client. 
 “Ledger Debt” means any debt, liability or obligation now or hereafter owing by Client to others, including any present or future client of Factor, which Factor may have obtained or may
obtain by purchase, assignment, negotiation, discount, participation or otherwise. 
 “Letter of Credit” means
a commercial or stand-by letter of credit issued by or on behalf of or for the benefit of Client. 
 “Letter of Credit
Right” means (i) “letter of credit right” as defined in the UCC, and (ii) a right to payment or performance under a Letter of Credit, whether or not the beneficiary has demanded or is at the time entitled to demand
payment or performance. The term does not include the right of a beneficiary to demand payment or performance under a Letter of Credit. 
 “Lien” means any security interest, security title, mortgage, deed to secure debt, deed of trust, lien, pledge, charge, conditional sale or other title retention agreement, or other
encumbrance of any kind in respect of any property, including the interest of each lessor under any capitalized lease and the interest of any bondsman under any payment or performance bond, in, of or on any assets or properties of a Person, whether
now owned or hereafter acquired and whether arising by agreement or operation of law. 
 “Misdirected Payment
Fee” means fifteen percent (15%) of the amount of any payment on account of an Account which has been received by Client and not delivered in kind to Factor within two (2) Business Days following the date of receipt by Client.

 “Negotiable Collateral” means all of Client’s present and future letters of credit, advises of credit,
notes, drafts, instruments, and documents, including bills of lading, leases, and chattel paper, and Client’s books and records relating to any of the foregoing. 
 “Net Invoice Amount” means the invoice amount of the Account, less returns (whenever made), all selling discounts (at Factor’s option, calculated on shortest terms), credits or
deductions of any kind allowed or granted to or taken by the Customer at any time. 
 “Obligations” means all
present and future Account Advances, Letter of Credit Obligations, Commissions, interest, fees, expenses, and all other present and future obligations (including the obligation to turn over all proceeds of Accounts purchased hereunder) owing by
Client to Factor, including interest thereon, whether or not for the payment of money, whether or not evidenced by any note or other instrument, whether direct or indirect, absolute or contingent, due or to become due, joint or several, primary or
secondary, liquidated or unliquidated, secured or unsecured, original or renewed or extended, whether presently contemplated or not, regardless of how the same arise, or by what instrument, agreement or book account they may be evidenced, or whether
evidenced by any instrument, agreement or book 

  
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account, whether arising before, during or after the commencement of any federal Bankruptcy Case in which Client is a debtor including, but not limited to, obligations arising pursuant to Letters
of Credit or acceptance transactions or any other financial accommodations, agreements, or any guaranty executed by Client in favor of Factor. 
 “Obligor” means Client and any other Person primarily or secondarily, directly or indirectly, liable on any of the Obligations, including, but not limited to, any guarantor thereof
(individually an “Obligor” and collectively, the “Obligors”), 
 “Permitted
Liens” means (a) liens for unpaid taxes, assessments, or other governmental charges or levies that are not yet delinquent, (b) liens set forth on Schedule 1 hereto, (c) the interests of lessors in goods which are leased
to Client, including leases which are deemed to be “capital leases” in accordance with GAAP, (d) liens arising by operation of law in favor of warehousemen, landlords, carriers, mechanics, materialmen, laborers, or suppliers, incurred
in the ordinary course of business and not in connection with the borrowing of money, and which liens are for sums not yet delinquent, (e) Liens in favor of FCC or its affiliates; and (f) encumbrances on trademarks arising pursuant to any
agreements whereby Client grants a license to a third party to use one or more of Client’s trademarks. 

“Person” means an individual, corporation, limited liability company, partnership, association, trust or unincorporated
organization or a government or any agency or political subdivision thereof. 
 “Purchase Price” means the Net
Invoice Amount less Factor’s Commission. 
 “Reserve” means a bookkeeping account on the books of the
Factor representing an unpaid portion of the Purchase Price and such other amounts as Factor deems advisable as security for the payment and performance by Client of its Obligations hereunder. 

“Schedule of Accounts” means a form supplied by Factor from time to time wherein Client lists all Accounts. 

“Security Interest” means the rights, title and interest in and to and liens of Factor on and in the Collateral.

 “Single Order Approval” has the meaning ascribed thereto in Section 2.2 (a) hereof. 

“Supporting Obligation” means (i) a “supporting obligation” as defined in the UCC, and (ii) a Letter
of Credit Right or secondary obligation that supports the payment or performance of an Account, Chattel paper, a Document, a General Intangible, an Instrument, or Investment Property. 

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of California. 

  
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 Schedule 1 
 Permitted Liens 
 None 

  
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 Schedule 6.3 (a) 
 Other Encumbrances 

  
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 Schedule 6.3 (b) 
 Collateral Locations 
 Ave La Paz No 10009 

Parque Industrial Pacifico 
 Nave 15-AB-0500 
 Tijuana, Baja California, Mexico CP.22670 

27 Hubble 

Irvine, CA 92618 

Warehousemen, Bailees, Consignees & Processors 

 

					
		  	                Otay Logistics, Inc.	  	
		  	                9255 Custom House Plaza, Suite A	  	
		  	                San Diego, Ca. 92154	  	

  
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 Schedule 6.3 (e) 
 Equipment Liens 
 None 

  
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 Schedule 8.1 (m) 
 Real Property 
 Ave La Paz No 10009 

Parque Industrial Pacifico 
 Nave 15-AB-0500 
 Tijuana, Baja California, Mexico CP.22670 

Bank Accounts 
  

					
		  	Union Bank (Controlled Disbursement)	  	
		  	Union Bank (Payroll)	  	
		  	Union Bank (Money Market)	  	
		  	Union Bank (Account Disbursement)	  	
		  	Bancomer (General)	  	
		  	Bancomer (Payroll)	  	
		  	Bancomer (USD Account)	  	

  
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 Schedule 8.1 (n) 
 Subsidiaries 
 Meade Coronado Holdings Corp. 

Coronado Instruments, Inc. 
 MTSC Holdings, Inc. 
 Simmons Outdoor Corporation 

MC Holdings, Inc. 

Meade.com 
 Meade
Instruments (Guangzhou) Co., Ltd. 
 Meade Instruments Foreign Sales Corporation Limited 

Meade Instruments Mexico, S. de R.L. de C.V. 

  
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 Schedule 9.4 
 Persons Authorized to Request Loans 
 Steven G. Murdock 

John A. Elwood 

  
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 Schedule 12.1 
 Example of General Release Language 
 Client and each guarantor (a) acknowledges and
agrees that no right of offset, defense, counterclaim, claim or objection exists in favor of Client or any guarantor against Factor arising out of or with respect to the Amended and Restated Factoring and Security Agreement or any guarantor’s
guaranty in favor of Factor, any other factoring documents, the obligations owing by any Obligor to Factor, or any other arrangement or relationship between Factor, on the one hand, and any Obligor, on the other hand, and (b) releases, acquits,
remises and forever discharges Factor and its affiliates and all of its past, present and future officers, directors, employees, agents, attorneys, representatives, successors and assigns from any and all claims, demands, actions and causes of
action, whether at law or in equity, whether now accrued or hereafter maturing, and whether known or unknown, which any Obligor now or hereafter may have by reason of any manner, cause or things to and including the date hereof with respect to
matters arising out of or with respect to the Amended and Restated Factoring and Security Agreement, any guarantor’s guaranty in favor of Factor, any other factoring documents, the obligations owing by any Obligor to Factor, or any other
arrangement or relationship between Factor, on one hand, and any Obligor, on the other hand. 

  
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