Document:

AMENDMENT #6 TO TERM LOAN AGREEMENT

 Exhibit 10.46 
 AMENDMENT NO. 6 TO TERM LOAN AGREEMENT 
 This AMENDMENT NO. 6 TO
TERM LOAN AGREEMENT (this “Amendment”) is entered into as of December 22, 2009 by and among BURLINGTON MORELOS, S.A DE C.V., a Mexican stock limited liability corporation (the “Borrower”), the other Credit
Parties signatory hereto, GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, for itself and as Agent, and the other Lenders signatory hereto. Unless otherwise specified herein, capitalized terms used in this Amendment shall have the
meanings ascribed to them in the Term Loan Agreement (as hereinafter defined). 
 R E C I T A L S: 
 WHEREAS, Borrower, the Agent and the Lenders entered into the Term Loan Agreement dated as of December 29, 2006 (as amended,
supplemented, restated or otherwise modified from time to time, the “Term Loan Agreement”); 
 WHEREAS, the
parties to the Term Loan Agreement have agreed to an amendment to the Term Loan Agreement as set forth herein; 
 NOW,
THEREFORE, in consideration of the premises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1 Amendments to the Term Loan Agreement. The Term Loan Agreement is hereby amended as reflected in Annex A hereto.

 2 Amendment to Term Loan Agreement Schedules. Schedule 1.21 to the Term Loan Agreement is hereby amended
as reflected in Annex B hereto (the Lenders listed therein, the “Extending Lenders”). 
 3
Conditions to Effectiveness. This Amendment shall be effective on the date when each of the following conditions has been satisfied: 
 (a) Agent shall have received all of the agreements, documents, instruments and other items set forth on the Closing Documents Checklist attached hereto as Annex C required to be delivered as of
the date hereof, each in form and substance reasonably satisfactory to Agent; 
 (b) The CIT Group/Commercial
Services, Inc. shall have received from the Borrower an aggregate amount equal to the CIT Payment Amount (as defined in Annex A hereto); and 
 (c) Agent, for the ratable benefit of the Extending Lenders, as consideration for execution and delivery of this Amendment, shall have received an amendment fee in the amount of $78,448.26, which
amendment fee shall be fully earned on the date hereof and shall be non-refundable when paid. 

 4 Conditions Subsequent. Agent shall have received all of the agreements,
documents, instruments and other items set forth on the Post Closing Documents Checklist attached hereto as Annex D within the period of time set forth therein for delivery (each such period, as may be extended by the Agent in its sole
discretion), each in form and substance reasonably satisfactory to Agent. Failure by Borrower to execute and deliver any such agreements, documents, instruments and other items in accordance with the previous sentence shall constitute an immediate
Event of Default under the Term Loan Agreement. 
 5 Miscellaneous. 
 5.1 Effect; Ratification. 
 (a) Except as specifically set forth above, the Term Loan Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed. Without limiting the
generality of the foregoing, each Credit Party reaffirms its guaranty of the Obligations and the Liens securing those guaranties. 
 (b) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of Agent or any Lender under the Term Loan Agreement or any other Loan Document,
nor constitute amendment of any provision of the Term Loan Agreement or any other Loan Document, except as specifically set forth herein. Upon the effectiveness of this Amendment, each reference in the Term Loan Agreement to “this
Agreement”, “hereunder”, “hereof”, “herein” or words of similar import shall mean and be a reference to the Term Loan Agreement, as amended hereby. 
 (c) Borrower acknowledges and agrees that the amendments and waivers set forth herein are effective solely for the purposes
set forth herein and that the execution and delivery by Agent of this Amendment shall not be deemed (i) except as expressly provided in this Amendment, to be a consent to any amendment, waiver or modification of any term or condition of the
Term Loan Agreement or of any other Loan Document, (ii) to create a course of dealing or otherwise obligate Agent or Lenders to forbear, waive, consent or execute similar amendments under the same or similar circumstances in the future, or
(iii) to amend, prejudice, relinquish or impair any right of Agent or Lenders to receive any indemnity or similar payment from any Person or entity as a result of any matter arising from or relating to this Amendment. 
 5.2 Counterparts and Signatures by Fax. This Amendment may be executed in any number of counterparts, each such counterpart
constituting an original but all together one and the same instrument. Any party delivering an executed counterpart of this Amendment by fax shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity,
enforceability or binding effect of this Amendment. 
 5.3 Severability. In case any provision in or obligation
under this Amendment shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any
way be affected or impaired thereby. 

 5.4 Loan Document. This Amendment shall constitute a Loan Document.

 5.5 GOVERNING LAW. THIS WAIVER AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL, IN ALL RESPECTS,
INCLUDING MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF
THE UNITED STATES OF AMERICA. 
 [Signature Pages Follow] 

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

			
	BORROWER:
	
	BURLINGTON MORELOS, S.A DE C.V.
		
	By:	 	 /s/ Neil W. Koonce

	Name:	 	Neil W. Koonce
	Title:	 	Vice President

 [Signature Page to
Amendment No. 6 to Term Loan Agreement] 

			
	OTHER CREDIT PARTIES:
	
	PARRAS CONE DE MÉXICO, S.A. DE C.V.
		
	By:	 	 /s/ C. Matthew Haynes

	Name:	 	C. Matthew Haynes
	Title:	 	Director
	
	ADMINISTRACIÓN PARRAS CONE, S.A. DE C.V.
		
	By:	 	 /s/ C. Matthew Haynes

	Name:	 	C. Matthew Haynes
	Title:	 	Director
	
	MANUFACTURAS PARRAS CONE, S.A. DE C.V.
		
	By:	 	 /s/ C. Matthew Haynes

	Name:	 	C. Matthew Haynes
	Title:	 	Director
	
	BURLINGTON YECAPIXTLA, S.A. DE C.V.
		
	By:	 	 /s/ Russell M. Robinson, III

	Name:	 	Russell M. Robinson, III
	Title:	 	Attorney-in-fact
	
	CONE DENIM YECAPIXTLA, S.A. DE C.V.
		
	By:	 	 /s/ Russell M. Robinson, III

	Name:	 	Russell M. Robinson, III
	Title:	 	Attorney-in-fact
	
	CASIMIRES BURLMEX, S.A. DE C.V.
		
	By:	 	 /s/ Russell M. Robinson, III

	Name:	 	Russell M. Robinson, III
	Title:	 	Attorney-in-fact
	
	SERVICIOS BURLMEX, S.A. DE C.V.
		
	By:	 	 /s/ Russell M. Robinson, III

	Name:	 	Russell M. Robinson, III
	Title:	 	Attorney-in-fact

 [Signature Page to
Amendment No. 6 to Term Loan Agreement] 

			
	 APPAREL FABRICS PROPERTIES, INC.

	 BURLINGTON INDUSTRIES V, LLC

	 CONE ADMINISTRATIVE AND SALES LLC

	 CONE INTERNATIONAL HOLDINGS II, INC.

	 INTERNATIONAL TEXTILE GROUP ACQUISITION GROUP LLC

	 BURLINGTON WORLDWIDE INC.

	 CONE DENIM WHITE OAK LLC

	 CONE INTERNATIONAL HOLDINGS, INC.

	 CONE ACQUISITION LLC

	 WLR CONE MILLS IP, INC.

		
	By:	 	 /s/ Neil W. Koonce

	Name:	 	Neil W. Koonce
	Title:	 	Vice President
	
	 VALENTEC WELLS, LLC

	 By: International Textile Group, Inc.,
 its sole member

		
	By:	 	 /s/ Neil W. Koonce

	Name:	 	Neil W. Koonce
	Title:	 	Vice President

 [Signature Page to
Amendment No. 6 to Term Loan Agreement] 

			
	 INTERNATIONAL TEXTILE GROUP, INC.

	 BURLINGTON INDUSTRIES LLC

	 CONE JACQUARDS LLC

	 CONE DENIM LLC

	 CARLISLE FINISHING LLC

	 SAFETY COMPONENTS FABRIC TECHNOLOGIES, INC.

		
	 By:
	 	 /s/ Neil W. Koonce

	 Name:
	 	Neil W. Koonce
	 Title:
	 	Vice President
	
	 NARRICOT INDUSTRIES LLC

	
	By: International Textile Group, Inc., its sole member
		
	 By:
	 	 /s/ Neil W. Koonce

	 Name:
	 	Neil W. Koonce
	 Title:
	 	Vice President

 [Signature Page to
Amendment No. 6 to Term Loan Agreement] 

			
	AGENT AND LENDERS:
	
	 GENERAL ELECTRIC CAPITAL CORPORATION,
 as the Agent and a Lender

		
	 By:
	 	 /s/ James DeSantis

	 Title:
	 	Its Duly Authorized Signatory

 [Signature Page to Amendment No. 6 to Term Loan Agreement] 

			
	UBS AG, STAMFORD BRANCH, as a Lender
		
	By:	 	 /s/ Irja R. Otsa

	Name:	 	Irja R. Otsa
	Title:	 	Associate Director
		
	By:	 	 /s/ Mary E. Evans

	Name:	 	Mary E. Evans
	Title:	 	Associate Director

 [Signature Page
to Amendment No. 6 to Term Loan Agreement] 

			
	BANK OF AMERICA, NA, as a Lender
		
	By:	 	 /s/ John Yankauskas

	Name:	 	John Yankauskas
	Title:	 	Sr. Vice President

 [Signature Page
to Amendment No. 6 to Term Loan Agreement] 

 ANNEX A 
 TERM LOAN AGREEMENT 
 Dated as of December 29, 2006 

by and among 
 BURLINGTON MORELOS, S.A. DE C.V., 
 as the Borrower, 
 GENERAL ELECTRIC CAPITAL CORPORATION 
 for itself, as a Lender, and as the Agent for all Lenders, 
 THE OTHER
FINANCIAL INSTITUTIONS PARTY HERETO 
 as Lenders, 
 and 
 UBS SECURITIES LLC, 
 as Lead Arranger and Bookrunner 
 GE CAPITAL MARKETS, INC. 
 as Co-Lead Arranger and Co-Bookrunner

 TABLE OF CONTENTS 
  

					
	1.	  	Definitions	  	1
	2.	  	The Facility	  	20
	   2.1	  	    The Term Loans	  	20
	   2.2	  	    Promissory Notes	  	20
	   2.3	  	    Borrowing Mechanics for Term Loans.	  	20
	   2.4	  	    Use of Proceeds	  	20
	   2.5	  	    Repayments	  	20
	   2.6	  	    Prepayments.	  	21
	   2.7	  	    Interest.	  	23
	   2.8	  	    Default Interest	  	24
	   2.9	  	    Payments	  	24
	   2.10	  	    Application of Payments	  	24
	   2.11	  	    Break Funding Losses	  	25
	   2.12	  	    Changes; Legal Restrictions	  	25
	   2.13	  	    Illegality	  	25
	   2.14	  	    Taxes	  	26
	   2.15	  	    Currency Inconvertibility	  	26
	   2.16	  	    Maximum Rate	  	26
	   2.17	  	    Fees	  	27
	   2.18	  	    Pro Rata Shares; Settlement	  	27
	   2.19	  	    Replacement of Lenders	  	28
	3.	  	Security	  	29
	   3.1	  	    Security in Collateral; Delivery of Guaranty Trust.	  	29
	   3.2	  	    Value of Collateral; Valuation of the Collateral	  	30
	4.	  	Conditions Precedent	  	30
	   4.1	  	    Conditions Precedent	  	30
	5.	  	Representations and Warranties	  	33
	   5.1	  	    Organization	  	33
	   5.2	  	    Financial Statements	  	33
	   5.3	  	    Enforceable Obligations; Authorization	  	33
	   5.4	  	    Litigation	  	33
	   5.5	  	    Rank	  	34
	   5.6	  	    No Adverse Changes	  	34
	   5.7	  	    Liens	  	34
	   5.8	  	    No Default	  	34
	   5.9	  	    No Immunity	  	34
	   5.10	  	    No Taxes	  	34
	   5.11	  	    Disclosure	  	34
	   5.12	  	    Compliance with Laws	  	34
	   5.13	  	    Environmental Laws	  	34
	   5.14	  	    Insurance	  	35
	   5.15	  	    Solvency	  	35
	   5.16	  	    Activities of Administración Parras Cone, S.A. de C.V. and Manufacturas Parras Cone, S.A. de C.V.	  	35
	6.	  	Affirmative Covenants	  	35

  

 i 

					
	   6.1	  	    Compliance with Laws	  	35
	   6.2	  	    Financial Statements and Information	  	35
	   6.3	  	    Notice of Certain Matters	  	36
	   6.4	  	    Use of Proceeds	  	36
	   6.5	  	    Inspection of Property; Books and Records	  	36
	   6.6	  	    Insurance.	  	37
	   6.7	  	    Certificates; Other Information	  	39
	   6.8	  	    Payment of Obligations	  	39
	   6.9	  	    Conduct of Business and Maintenance of Existence	  	39
	   6.10	  	    Licenses	  	40
	   6.11	  	    Ranking	  	40
	   6.12	  	    Guarantors	  	40
	   6.13	  	    Hazardous Substances	  	40
	   6.14	  	    Notices Regarding Hazardous Substances	  	40
	   6.15	  	    Further Assurances	  	40
	   6.16	  	    Collateral	  	41
	   6.17	  	    Maintenance of Property	  	41
	7.	  	Negative Covenants	  	41
	   7.1	  	    Mergers	  	41
	   7.2	  	    Sale of Assets	  	41
	   7.3	  	    Sale and Lease-Back Transactions	  	42
	   7.4	  	    Other Indebtedness; Cancellation of Indebtedness; Affiliate Transactions.	  	42
	   7.5	  	    Liens	  	42
	   7.6	  	    Restriction on Dividend Payments and Intercompany Transfers.	  	43
	   7.7	  	    Restriction on Amendments to Organizational Documents	  	43
	   7.8	  	    Changes in Business	  	43
	   7.9	  	    Permitted Activities of Administración Parras Cone, S.A. de C.V. and Manufacturas Parras Cone, S.A. de C.V.	  	43
	8.	  	Specific Financial Covenants	  	43
	   8.1	  	    Minimum Collateral Coverage Ratio	  	43
	   8.2	  	    Fixed Charge Coverage Ratio	  	44
	   8.3	  	    Maximum Capital Expenditures	  	44
	9.	  	Events of Default and Remedies	  	45
	   9.1	  	    Events of Default	  	45
	   9.2	  	    Remedies Cumulative	  	48
	10.	  	The Agent	  	48
	   10.1	  	    Appointment and Duties.	  	48
	   10.2	  	    Binding Effect	  	49
	   10.3	  	    Use of Discretion	  	49
	   10.4	  	    Delegation of Rights and Duties	  	49
	   10.5	  	    Reliance and Liability.	  	49
	   10.6	  	    Agent Individually	  	50
	   10.7	  	    Lender Credit Decision.	  	51
	   10.8	  	    Expenses; Indemnities.	  	51
	   10.9	  	    Resignation of Agent.	  	52
	   10.10	  	    Release of Collateral or Guarantors	  	52

  

 ii 

					
	11.	  	Miscellaneous	  	53
	   11.1	  	    No Waiver, Amendment, Optional Notice.	  	53
	   11.2	  	    Notices; Electronic Transmission.	  	54
	   11.3	  	    Governing Law; Jurisdiction; Waiver.	  	56
	   11.4	  	    Survival, Parties Bound; Reinstatement	  	57
	   11.5	  	    Counterparts	  	57
	   11.6	  	    Language	  	57
	   11.7	  	    Captions	  	57
	   11.8	  	    Expenses	  	58
	   11.9	  	    Entire Agreement	  	58
	   11.10	  	    Severability	  	58
	   11.11	  	    Assignment; Participations.	  	58
	   11.12	  	    Indemnification	  	60
	   11.13	  	    Indemnity Regarding Use of Real Property	  	60
	   11.14	  	    Indemnity Regarding Hazardous Substances	  	60
	   11.15	  	    Judgment Currency	  	61
	   11.16	  	    No Strict Construction	  	61
	   11.17	  	    Confidentiality	  	61
	   11.18	  	    Set-off; Sharing of Payments.	  	62
	   11.19	  	    No Third Parties Benefited	  	62
	   11.20	  	    Lender-Creditor Relationship	  	63

 Schedules 
  

			
	Schedule 1.21	  	Commitments
	Schedule 1.105	  	Permitted Encumbrances
	Schedule 5.12	  	Compliance
	Schedule 7.4(a)	  	Indebtedness

 Exhibits 
  

			
	Exhibit A	  	Compliance Certificate
	Exhibit B	  	Reserved
	Exhibit C	  	Security Agreement
	Exhibit D	  	Guaranty Trust Agreement
	Exhibit E	  	Promissory Note
	Exhibit F-1	  	Opinion of Mexican Counsel
	Exhibit F-2	  	Opinion of U.S. Counsel
	Exhibit F-3	  	Opinion of UK Counsel
	Exhibit G	  	Affiliate Guaranty and Security Agreement
	Exhibit H	  	Notice of Borrowing and Disbursement
	Exhibit I	  	UK Debenture
	Exhibit J	  	UK Share Charge
	Exhibit K	  	Notice of Continuation

  

 iii 

 TERM LOAN AGREEMENT 
 THIS TERM LOAN AGREEMENT (as amended, restated, replaced, supplemented or otherwise modified from time to time, this
“Agreement”) is made and entered into as of December 29, 2006, by and among BURLINGTON MORELOS, S.A. DE C.V., a Mexican stock limited liability corporation (sociedad anónima de capital variable)
(“Borrower”), GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (in its individual capacity, “GE Capital”), as Agent for the several financial institutions from time to time party to this Agreement
(collectively, the “Lenders” and individually each a “Lender”) and for itself as a Lender, and such Lenders. 
 RECITALS 
 WHEREAS, Borrower has requested and Lenders have agreed to
provide a term credit facility in the principal amount of up to US$15,000,000 for the purpose of repaying the Existing Indebtedness (as hereinafter defined); and 
 WHEREAS, the obligations hereunder are secured by a pledge of certain property and assets of Borrower; 
 NOW, THEREFORE, in consideration of the mutual covenants, agreements, representations, warranties and undertakings contained herein, the parties hereto hereby agree as follows: 
 1. Definitions 
 In the
Loan Documents, except to the extent the context otherwise requires: (i) any reference to an Article, a Section, a Schedule or an Exhibit is a reference to an article or section thereof, or a schedule or an exhibit thereto, respectively, and
any reference to a subsection or a clause is, unless otherwise stated, a reference to a subsection or a clause of the Section or subsection in which the reference appears; (ii) the words “hereof,” “herein,”
“hereto,” “hereunder” and the like mean and refer to this Agreement or any other Loan Document as a whole and not merely to the specific Article, Section, subsection, paragraph or clause in which the respective word appears;
(iii) the meaning of defined terms shall be equally applicable to both the singular and plural forms of the terms defined; (iv) the words “including,” “includes” and “include” shall be deemed to be followed by
the words “without limitation”; (v) references to agreements and other contractual instruments shall be deemed to include all subsequent amendments and other modifications thereto, but only to the extent such amendments and other
modifications are not prohibited by the terms of the Loan Documents; (vi) references to statutes or regulations are to be construed as including all statutory and regulatory provisions consolidating, amending or replacing the statute or
regulation referred to; (vii) in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including”; the words “to” and “until” each mean
“to but excluding”; and the word “through” means “to and including.” 
 As used in this Agreement
and any other Loan Document, each capitalized term and title herein shall be defined as set forth in this Agreement unless otherwise specifically provided herein and shall not mean, and shall not be construed to refer or relate to (a) any term,
or Person

  

 1 

 
with any title or in any capacity, (b) any obligation of any Person, or (c) any property or assets constituting collateral, in each case, under the Revolving Loan Agreement or any
document executed in connection therewith. 
 Except as otherwise provided herein, all accounting terms not expressly defined
herein shall be construed, and all financial computations required under this Agreement or any other Loan Document shall be made, in accordance with GAAP. 
 1.1 “18% Senior Note Subordinated Indebtedness” means Indebtedness (as defined in the Revolving Credit Agreement) incurred pursuant to the 18% Senior Note Documents in the initial
principal amount of $80,000,000. 
 1.2 “18% Senior Note Documents” means (i) the Senior Subordinated Note
Purchase Agreement, dated as of June 7, 2007 (“Senior Note Purchase Agreement”) among ITG and the purchasers set forth therein (the “Senior Note Purchasers”); (ii) the $80,000,000 aggregate principal amount of 18.00%
Senior Subordinated Notes due 2011 issued to the Senior Note Purchasers on June 7, 2007 (such notes, the “Initial Notes”), any “PIK Notes” (as defined in the Initial Notes) and any such notes issued in substitution for the
Initial Notes pursuant to Section 14 of the Senior Note Purchase Agreement; and (iii) the pledge agreement dated as of June 7, 2007 made by ITG in favor of the Senior Note Purchasers. 
 1.3 “Account” means all “accounts,” as such term is defined in the Code, now owned or hereafter acquired by
Borrower or any Subsidiary Guarantor, including (a) all accounts receivable, other receivables, book debts and other forms of obligations, (including any such obligations that may be characterized as an account or contract right under the
Code), (b) all of Borrower’s and any Subsidiary Guarantor’s rights in, to and under all purchase orders or receipts for goods or services, (c) all of Borrower’s and any Subsidiary Guarantor’s rights to any goods
represented by any of the foregoing (including unpaid sellers’ rights of rescission, replevin, reclamation and stoppage in transit and rights to returned, reclaimed or repossessed goods) and (d) all collateral security of any kind, given
by any Debtor or any other Person with respect to any of the foregoing. 
 1.4 “Affected Lender” has the
meaning specified in Section 2.19. 
 1.5 “Affiliate” means, with respect to any Person,
(a) each Person that, directly or indirectly, owns or controls, whether beneficially, or as a trustee, guardian or other fiduciary, ten percent (10%) or more of the shares of capital stock having ordinary voting power in the election of
directors of such Person, (b) each Person that controls, is controlled by or is under common control with such Person, and (c) each of such Person’s Responsible Officers, directors, joint venturers and partners. For the purposes of
this definition, “control” of a Person shall mean the possession, directly or indirectly, of the power to direct or cause the direction of its management or policies, whether through the ownership of voting securities, by contract or
otherwise; provided, however, that the Agent and the Lenders shall not be considered “Affiliates” of Borrower. 
  

 2 

 1.6 “Affiliate Guaranty and Security Agreement” means the Guaranty and
Security Agreement of even date herewith substantially in the form of Exhibit G attached hereto, executed by each of the U.S. Affiliates in favor of the Agent. 
 1.7 “Agreement” has the meaning specified in the introductory paragraph hereto. 
 1.8 “Asset Sale” means the sale, transfer or other disposition (by way of merger or otherwise) by Borrower or any of its Subsidiaries, or GE Capital Bank, S.A., Institución de
Banca Múltiple, GE Capital Grupo Financiero, División Fiduciaria, in its capacity as the trustee under the Guaranty Trust, to any Person (other than Borrower or any of its Subsidiaries) of any assets of Borrower or such Subsidiary
(other than dispositions permitted by Section 7.2). 
 1.9 “Assignee” has the meaning specified in
Section 11.11(b). 
 1.10 “Borrower” has the meaning specified in the introductory paragraph
hereto, which is the holder of the shares representing ninety-nine point ninety-nine percent (99.99%) of the outstanding capital stock of all classes of Parras Cone. 
 1.11 “BST” means Global Safety Textiles Holdings LLC (f/k/a BST US Holdings, Inc.), a Delaware limited liability company. 
 1.12 “BST Facility” means that certain Term and Revolving Facilities Agreement dated as of December 8, 2006, by and
among BST Safety Textiles Acquisition GmbH, Goldman Sachs Credit Partners L.P. and UBS Securities LLC, and the other Persons signatory thereto. 
 1.13 “Business Day” means a LIBOR Business Day other than any day on which commercial banks are authorized or required to close in New York, New York or Mexico City, Federal District,
Mexico. 
 1.14 “Capital Expenditures” means, with respect to any Person, all expenditures (by the expenditure
of cash or the incurrence of Indebtedness) by such Person for any fixed assets or improvements or for replacements, substitutions or additions thereto, that have a useful life of more than one year and that are required to be capitalized under GAAP.

 1.15 “Capital Lease” means a lease with respect to which the lessee is required concurrently to recognize
the acquisition of an asset and the incurrence of a liability in accordance with GAAP. 
 1.16 “Capital Lease
Obligation” means, with respect to any Person and a Capital Lease, the amount of the obligation of such Person as the lessee under such Capital Lease which, in accordance with GAAP, appears as a liability on a balance sheet of such Person.

 1.17 “Casualty Event” means, with respect to any property (including the Collateral) of Borrower or any
Subsidiary of Borrower, any loss of title with respect to real property or any theft, loss or destruction of or damage to, or any condemnation or other taking (including by any Governmental Authority) of, such property for which Borrower, any
Subsidiary of Borrower or the Trustee receives insurance proceeds or proceeds of a condemnation award or other compensation. “Casualty Event” shall include, but not be limited to, any expropriation or taking

  

 3 

 
of any real property (including the Collateral) of Borrower or any Subsidiary of Borrower or any part thereof, in or by condemnation or other eminent domain proceedings pursuant to any law,
general or special, or by reason of the temporary requisition of the use or occupancy of any real property of Borrower or such Subsidiary or any part thereof, by any Governmental Authority, civil or military. 
 1.18 “Change of Control” means any event, transaction or occurrence as a result of which (a) Cone Denim LLC ceases to
own and control, directly or indirectly, all of the economic and voting rights associated with ownership of one hundred percent (100%) of the outstanding Equity Interests of Borrower on a fully diluted basis, (b) Borrower and Cone,
collectively, cease to own and control all of the economic and voting rights associated with all of the outstanding Equity Interests of any of the Subsidiary Guarantors, (c) any event under Section 7.1(m) of the Revolving Loan Agreement
(as in effect on the Closing Date) shall have occurred or (d) a “Change of Control” as defined in the 18% Senior Note Documents shall have occurred. 
 1.19 “Charges” means all federal, state, county, city, municipal, local, foreign or other governmental taxes, levies, assessments, charges, liens, claims or encumbrances upon or relating
to (a) the Obligations, (b) the employees, payroll, income or gross receipts of Borrower or its Subsidiaries, (c) Borrower’s or any of its Subsidiaries’ ownership or use of any properties or other assets, or (d) any
other aspect of Borrower’s or any of its Subsidiaries’ business. 
 1.20 “CIT Payment Amount” means,
as at any date of determination, the aggregate principal amount of, and accrued and unpaid interest and fees in respect of, all outstanding Term Loans of The CIT Group/Commercial Services, Inc. 
 1.21 “Closing Date” means December 29, 2006. 
 1.22 “Code” means the Uniform Commercial Code as the same may, from time to time, be enacted and in effect in the State of
New York; provided, that to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in
Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to, the Agent’s lien on any
Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of New York, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other
jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions. 
 1.23 “Collateral” means, (a) initially (i) the Parras Cone Machinery and Equipment, (ii) the Parras Cone
Land and Buildings, (iii) insurance policies relating to assets of Parras Cone, (iv) the Parras Cone Receivables, and (v) contractual rights of Parras Cone relating to the Parras Cone Land and Buildings and the Parras Cone Machinery
and Equipment; (b) subsequent to the Closing Date, any and all after acquired property or assets comprising any of the collateral categories listed in subclause (a) above owned by Borrower or Borrower’s Subsidiaries; (c) the
Shares (less one share of the Subsidiary Guarantors (other than the Specified Guarantors) owned by Cone which shall be pledged in favor of the Agent under the Pledge Agreement); and (d)

  

 4 

 
when the holder(s) of the capital stock of the Specified Guarantors shall have executed and delivered a pledge agreement pledging such shares in favor of Agent as security for the Obligations,
the capital stock of the Specified Guarantors. In no event shall any property or assets constituting Collateral under this Agreement be considered as or included in “Collateral” under and as defined in the Revolving Loan Agreement
(provided that any Parras Cone Receivables that have been sold or otherwise transferred to a U.S. Affiliate shall be deemed to be “Collateral” under and as defined in the Revolving Loan Agreement and not Collateral under this Agreement).

 1.24 “Commitment” means the commitment of a Lender to make or otherwise fund a Term Loan and
“Commitments” means such commitments of all Lenders in the aggregate. 
 1.25 “Compliance
Certificate” means the Compliance Certificate substantially in the form of Exhibit A attached hereto, to be delivered by Borrower in accordance with Section 6.7(a). 
 1.26 “Cone” means Cone International Holdings II, Inc., a Delaware corporation and holder of at least one share of the
outstanding capital stock of all of the Subsidiary Guarantors. 
 1.27 “Consolidated EBITDA” means EBITDA of
the Borrower and the Subsidiary Guarantors, on a consolidated basis and determined in accordance with GAAP. 
 1.28
“Consolidated Funded Senior Debt” means, as of any date of determination, the amount of outstanding Term Loans. 
 1.29 “Consolidated Interest Expense” means, for any period, without duplication, the aggregate of all gross interest paid or accrued of Borrower and the Subsidiary Guarantors as determined on a consolidated basis in
accordance with GAAP (including, without limitation, the interest portion of Capital Lease Obligations of Borrower and the Subsidiary Guarantors, but specifically excluding capitalized interest and the interest portion of operating leases of
Borrower and the Subsidiary Guarantors which are treated as Capital Leases for tax purposes), other than deferred financing costs not paid in cash (in each case, excluding any intercompany interest expense and after eliminating all offsetting debits
and credits between Borrower and the Subsidiary Guarantors and all other items required to be eliminated in the course of the preparation of consolidated financial statements of Borrower and the Subsidiary Guarantors in accordance with GAAP).

 1.30 “Contest” means, with respect to any matter or claim involving any Person, that such Person is
contesting such matter or claim in good faith and by appropriate proceedings; provided that the following conditions are satisfied: (a) such Person has posted a bond or other security acceptable to the Agent or has established adequate reserves
with respect to the contested items in accordance with GAAP; (b) during the period of such contest, the enforcement of any contested item is effectively stayed; (c) neither such Person nor any of its Responsible Officers, directors or
employees nor any Secured Party or its respective officers, directors or employees is, or could reasonably be expected to become, subject to any criminal liability or sanction in connection with such contested items; and (d) such contest and
any resultant failure to pay or discharge the claimed or assessed amount does not, and would not reasonably be expected to, result in a Material Adverse Effect (after taking into account any bond, security or other reserve being maintained by such
Person in respect thereof). 
  

 5 

 1.31 “Credit Party” means Borrower and each Guarantor. 
 1.32 “Debt Issuance” means the incurrence by Borrower or any of its Subsidiaries of any Indebtedness after the Closing
Date. 
 1.33 “Debtor” means any Person who may become obligated to Borrower under, with respect to, or on
account of, an Account. 
 1.34 “Default” has the meaning specified in the definition “Event of
Default”. 
 1.35 “Dollars” or “US$” means lawful currency of the United States.

 1.36 “EBITDA” means, for any period for which the amount thereof is to be determined, net income (or loss) of any
Person, but excluding: (a) the income (or loss) of any entity which is not a Wholly-Owned Subsidiary of such Person, except to the extent of the amount of dividends or other distributions actually paid to such Person or any of its Wholly-Owned
Subsidiaries in cash by such entity during such period and the payment of dividends or similar distributions by that entity is not at the time prohibited by operation of the terms of its charter or of any agreement, instrument, judgment, decree,
order, statute, rule or governmental regulation applicable to that entity; (b) the income (or loss) of any entity accrued prior to the date it becomes a Subsidiary of such Person or is merged into or consolidated with such Person or any of its
Subsidiaries or that entity’s assets are acquired by such Person or any of its Subsidiaries; (c) the proceeds of any life insurance policy; (d) non-cash gains or losses from the sale, exchange, transfer or other disposition of
Property or assets not in the ordinary course of business of such Person and its Subsidiaries, and related tax effects in accordance with GAAP; and (e) any other extraordinary or non-recurring gains or losses of such Person or its Subsidiaries,
and related tax effects in accordance with GAAP, plus (1) all amounts deducted in calculating net income (or loss) for depreciation or amortization for such period, (2) interest expense (less interest income) deducted in calculating net
income (or loss) for such period, (3) all accrued taxes on or measured by income to the extent deducted in calculating net income (or loss) for such period, (4) all non-cash last-in first-out expenses for such period and (5) all
non-cash losses or expenses (or minus non-cash income or gain) included or deducted in calculating net income (or loss) for such period, including to the extent not otherwise added back, without duplication, (A) non-cash restructuring charges
and (B) non-cash purchase accounting adjustments. 
 1.37 “E-Fax” means any system used to receive or
transmit faxes electronically. 
 1.38 “Electronic Transmission” means each document, instruction,
authorization, file, information and any other communication transmitted, posted or otherwise made or communicated by e-mail or E-Fax, or otherwise to or from an E-System or other equivalent service. 
 1.39 “Environmental Laws” means all current and future laws, regulations, ordinances or other requirements of any
Governmental Authority relating to or imposing liability or

  

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standards of conduct concerning the protection of health or the environment or Hazardous Substances, which are applicable to Borrower, any of the Subsidiary Guarantors or the Collateral.

 1.40 “Equipment” means “equipment” as such term is defined in the Code. 
 1.41 “Equity Interest” means, with respect to any Person, any and all shares, partes sociales, beneficiary interests
in voting and control trusts, interests, participations or other equivalents, including membership interests (however designated, whether voting or non-voting), of capital of such Person; if such person is a partnership (or Mexican equivalent
thereof), partnership interests (whether general or limited) and any other interest or participation that confers on a person the right to receive a share of the profits and losses of, or distributions of assets of, such partnership, whether
outstanding on the date hereof or issued after the Closing Date. 
 1.42 “Equity Issuance” means, without
duplication, any issuance or sale by Borrower or any of its Subsidiaries (other than to Borrower or any of its Subsidiaries) after the Closing Date of (a) any Equity Interests (including any Equity Interests issued upon exercise of any warrant
or option (or the Mexican equivalent of a warrant or option)) or any warrants or options (or the Mexican equivalent of warrants or options) to purchase Equity Interests or (b) any other security or instrument representing an Equity Interest (or
the right to obtain any Equity Interest) in the issuing or selling Person. 
 1.43 “E-Signature” means the
process of attaching to or logically associating with an Electronic Transmission an electronic symbol, encryption, digital signature or process (including the name or an abbreviation of the name of the party transmitting the Electronic Transmission)
with the intent to sign, authenticate or accept such Electronic Transmission. 
 1.44
“E-System” means any electronic system, including Intralinks® and any other Internet or
extranet-based site, whether such electronic system is owned, operated or hosted by Agent, any of its Related Persons or any other Person, providing for access to data protected by passcodes or other security system. 
 1.45 “Event of Default” means any of the events specified in Article 9 as an Event of Default, provided that
any requirement specified in connection with each such Event of Default including the giving of notice, lapse of time, and the happening of any other necessary condition or event has been satisfied; and “Default” means any such
event, regardless of whether such requirements have been satisfied. 
 1.46 “Evidence of Corporate Authority”
means, with respect to Borrower or any Subsidiary Guarantor, (i) a notarized copy of the duly formalized and duly authorized power of attorney whereby the board of directors or the shareholders, pursuant to a duly convened meeting, authorize
the Responsible Officers to execute loan documents in general, including any Loan Document, on behalf of Borrower or such Subsidiary Guarantor, or (ii) in the absence of the evidence described in the above clause (i), the Agent may, in its sole
and absolute discretion, accept notarized copies of the corporation’s Organizational Documents and powers of attorney, in forms satisfactory to the Agent, and (iii) a certificate, in a form reasonably satisfactory to the

  

 7 

 
Agent, of the chief financial officer or secretary of the board of directors of Borrower or such Subsidiary Guarantor which certifies as to the incumbency, authority and signatures of the
Responsible Officers of Borrower or such Subsidiary Guarantor who execute any Loan Document. 
 1.47 “Excess
Amount” has the meaning specified in Section 8.3. 
 1.48 “Excess Withholding Taxes”
means, with respect to any Lender, any withholding taxes, or any portion thereof, which would not have been imposed but for (a) failure by such Lender (i) to provide to Borrower a letter specifying that such Lender is the effective
beneficiary of the interest payments hereunder and under its Promissory Note, as set forth in the “Miscellaneous Tax Resolution for 2006” (Resolución Miscelanea Fiscal para 2006) or any equivalent general rules in effect
thereafter while this Agreement shall remain in full force and effect, (ii) to use reasonable commercial efforts to complete and file with the appropriate governmental authority, or to provide to Borrower such forms, certificates, information,
applications or declarations required by any such law, rule or regulation enacted or issued by Mexico or any political subdivision thereof or authority therein, or a double taxation treaty to which Mexico is a party that are a precondition for a
reduction of or exemption from such Taxes to which such Lender is entitled (provided that, such Lender shall not be under any obligation to provide any information to Borrower which it deems, in its reasonable judgment, to be confidential or
legally or commercially prejudicial to such Lender), or (iii) to use its reasonable commercial efforts to maintain its status as a Registered Entity, or (b) the assignment of the Term Loans or any portion thereof to an entity which is not
a Mexican bank or a Registered Entity at the time of such assignment or which subsequently fails to comply with the provisions of clauses (a)(i) through (a)(iii) above as applicable to such Lender. 
 1.49 “Excluded Equity Issuance” has the meaning specified in the Revolving Loan Agreement. 
 1.50 “Existing Indebtedness” means the obligations under the Amended and Restated Term Loan Agreement made and entered into
as of June 30, 2006 by and between Parras Cone de México, S.A. de C.V. and General Electric Capital Corporation. 
 1.51 “External Indebtedness” means, at any date, without duplication, all obligations of a Person for borrowed money that are payable in a currency other than the currency of Mexico to a Person resident or having its head
office or chief place of business outside the territory of Mexico. 
 1.52 “Federal Reserve Board” means the
Board of Governors of the Federal Reserve System, or any entity succeeding to any of its principal functions. 
 1.53
“Fiscal Month” means any of the monthly accounting periods of Borrower. 
 1.54 “Fiscal
Quarter” means any of the quarterly accounting periods of Borrower, ending on March 31, June 30, September 30 and December 31 of each year. 
 1.55 “Fiscal Year” means any of the annual accounting periods of Borrower ending on December 31 of each year. 
  

 8 

 1.56 “Fixed Charge Coverage Ratio” means, the ratio of
(a) Consolidated EBITDA less Capital Expenditures (excluding Capital Expenditures funded with Indebtedness) of Borrower and the Subsidiary Guarantors, to (b) Fixed Charges, in each case calculated as of the end of each Fiscal Quarter for
the twelve (12) Fiscal Month period then ended. 
 1.57 “Fixed Charges” means, with respect to any fiscal
period of Borrower and the Subsidiary Guarantors on a consolidated basis, without duplication, Consolidated Interest Expense (less all interest income received by Borrower and the Subsidiary Guarantors on a consolidated basis during such period),
scheduled principal payments of Indebtedness (including any scheduled principal payments of the Term Loans that have been prepaid in accordance with Section 2.5), and federal, state, local and foreign cash income taxes, excluding deferred taxes
and taxes which are subject to Contest. 
 1.58 “FMV” means fair market value. 
 1.59 “FMV – Parras Cone Land and Buildings” means the fee simple stabilized market value, net of expenses, of the
Parras Cone Land and Buildings expressed in Dollars; provided that the remarketing period is assumed to be 6 to 12 months. 
 1.60 “Foreign Exchange Facility” means an approximately $2,000,000 unsecured foreign exchange hedge credit line to be entered into by Borrower on or about the Sixth Amendment Effective Date. 
 1.61 “GAAP” means generally accepted accounting principles in the United States as in effect during the term of this
Agreement applied (in the case of any Person) on a basis consistent with the most recent audited financial statements of such Person delivered to the Agent hereunder. 
 1.62 “Governmental Authority” means any federal governmental authority (including such an authority of Mexico or the United States), any state or other political subdivision of any of the
foregoing, and any agency, department, commission, board, bureau, central bank, court or other tribunal having jurisdiction over the Agent, any Lender, Borrower or Borrower’s Subsidiaries, or the respective property of each as the context may
require. 
 1.63 “Guaranteed Indebtedness” means as to any Person, any obligation of such Person guaranteeing,
providing comfort or otherwise supporting any Indebtedness, lease, dividend, or other obligation (“primary obligation”) of any other Person (the “primary obligor”) in any manner. The amount of any Guaranteed
Indebtedness at any time shall be deemed to be an amount equal to the lesser at such time of (x) the stated or determinable amount of the primary obligation in respect of which such Guaranteed Indebtedness is incurred and (y) the maximum
amount for which such Person may be liable pursuant to the terms of the instrument embodying such Guaranteed Indebtedness, or, if not stated or determinable, the maximum reasonably anticipated liability (assuming full performance) in respect
thereof. 
 1.64 “Guarantor” means each of the U.S. Affiliates, each Subsidiary Guarantor and each other entity
that becomes party to the Subsidiary Guaranty or the Affiliate Guaranty and Security Agreement after the date hereof. 
  

 9 

 1.65 “Guaranty Trust” means the irrevocable guaranty trust agreement number
F-675 (contrato de fideicomiso irrevocable de garantía) dated December 29, 2006 governed by Mexican law substantially in the form of Exhibit D attached hereto, and executed by and among Borrower and Parras Cone, as settlors
(fideicomitentes) and beneficiaries, and the Trustee, appointing Agent, as first beneficiary (fideicomisario en primer lugar). 
 1.66 “Hazardous Substance” means any substance, material or waste that is or becomes designated or regulated as “toxic,” “hazardous,” “pollutant,” or
“contaminant” or a similar designation or regulation under any applicable Environmental Law or judicial or administrative interpretation of such. 
 1.67 “Holdco Debt” means unsecured Indebtedness (as defined in the Revolving Credit Agreement) incurred by ITG, any Holding Company of ITG or any Holding Company of BST that is not
secured by the assets of, or guaranteed by, any Credit Party (as defined in the Revolving Loan Agreement). 
 1.68
“Holding Company” means, in relation to ITG or BST, any limited liability company or corporation in respect of which it is a Subsidiary and that owns no material assets other than the Stock (as defined in the Revolving Credit
Agreement) or Stock Equivalents (as defined in the Revolving Credit Agreement) of ITG or BST. 
 1.69 “IMSS”
means Instituto Mexicano del Seguro Social. 
 1.70 “Increased Amount Date” has the meaning specified in
Section 2.20(a). 
 1.71 “Indebtedness” of any Person means without duplication (a) all
indebtedness (including External Indebtedness) of such Person for borrowed money or for the deferred purchase price of goods or services, but excluding (i) non-interest bearing obligations to trade creditors incurred in the ordinary course of
business that are not overdue by more than ninety (90) days beyond the applicable terms unless being contested in good faith and (ii) with respect to Borrower or any of the Subsidiary Guarantors, any cotton vendor financing incurred by
Borrower or any of the Subsidiary Guarantors in the ordinary course of business, (b) all reimbursement and other obligations with respect to letters of credit, bankers’ acceptances and surety bonds, (c) all obligations evidenced by
notes, bonds, debentures or similar instruments, (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the
seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (e) all Capital Lease Obligations, (f) all obligations of such Person under commodity purchase or option agreements or
other commodity price hedging arrangements, in each case whether contingent or matured, (g) all obligations of such Person under any foreign exchange contract, currency swap agreement, interest rate swap, cap or collar agreement or other
similar agreement or arrangement designed to alter the risks of that Person arising from fluctuations in currency values or interest rates, in each case whether contingent or matured, (h) all Indebtedness referred to above secured by (or for
which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in property or other assets (including accounts and contract rights) owned by such Person, even though such Person has not
assumed or become liable for the payment of such Indebtedness, and (i) the

  

 10 

 
Obligations; provided, however, that with respect to clauses (f) and (g), the amount of Indebtedness shall be deemed to be, on the date of determination thereof, the net
obligations arising thereunder calculated on a marked to market value basis on such date. 
 1.72 “Indemnified
Liabilities” has the meaning specified in Section 11.12. 
 1.73 “Indemnified Person” has
the meaning specified in Section 11.12. 
 1.74 “INFONAVIT” means Instituto del Fondo Nacional de
la Vivienda para los Trabajadores. 
 1.75 “Initial Commitment” shall mean the amount of each Lender’s
Commitment on the Closing Date as set forth on Schedule 1.21 or in the applicable Assignment Agreement, subject to any adjustment or reduction pursuant to the terms and conditions hereof. The aggregate amount of the Initial Commitments as of
the Closing Date is US$15,000,000. 
 1.76 “Initial Term Loans” has the meaning specified in
Section 2.1. 
 1.77 “Installment” has the meaning specified in Section 2.5.

 1.78 “Intangible Assets” means, with respect to any Person, that portion of the book value of the assets of
such Person which would be treated as intangibles under GAAP. 
 1.79 “Intercreditor Agreement” means that
certain Amended and Restated Subordination and Intercreditor Agreement dated as of the Sixth Amendment Effective Date among the Agent, the U.S. Affiliates and the agent under the Revolving Loan Agreement, as it may be amended, restated, supplemented
or otherwise modified from time to time. 
 1.80 “Interest Payment Date” means (a) the last Business Day
of each calendar month and (b) the last day of the applicable LIBOR Period (if any). 
 1.81 “Investments in
Subsidiaries” means Investments in one or more Subsidiaries or any Person that concurrently with such Investment becomes a Subsidiary. For the purposes of this definition, the term “Investment” means any investment, made in cash
or by delivery of property, by Borrower or any of its Subsidiaries in any Person, whether by acquisition of stock, indebtedness or other obligation or security, or by loan, guaranty, advance, capital contribution or otherwise. 
 1.82 “ITG” means International Textile Group, Inc., a Delaware corporation (f/k/a Safety Components International, Inc.).

 1.83 “Legal Requirement” means any law, statute, ordinance, decree, requirement, order, judgment, rule,
regulation (or interpretation of any of the foregoing) of, and the terms of any license or permit issued by, any Governmental Authority. 
 1.84 “Lender” has the meaning specified in the introductory paragraph hereto. 
  

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 1.85 “Liabilities” means all claims, actions, suits, judgments, damages,
losses, liability, obligations, responsibilities, fines, penalties, sanctions, costs, fees, taxes, commissions, charges, disbursements and expenses, in each case of any kind or nature (including interest accrued thereon or as a result thereto and
fees, charges and disbursements of financial, legal and other advisors and consultants), whether joint or several, whether or not indirect, contingent, consequential, actual, punitive, treble or otherwise. 
 1.86 “LIBOR Business Day” means a Business Day on which banks in London, England generally are open for interbank or
foreign exchange transactions. 
 1.87 “LIBOR Period” means each period commencing on a LIBOR Business Day
selected by Borrower pursuant to this Agreement and ending one, two or three months thereafter; provided that the foregoing provision relating to LIBOR Periods is subject to the following: 
 (a) the initial LIBOR Period for the Term Loans shall commence on the Closing Date; 
 (b) if any LIBOR Period would otherwise end on a day that is not a Business Day, such LIBOR Period shall be extended to the next succeeding
Business Day unless the result of such extension would be to carry such LIBOR Period into another calendar month in which event such LIBOR Period shall end on the immediately preceding Business Day; 
 (c) any LIBOR Period that would otherwise extend beyond the Maturity Date shall end on the Maturity Date; and 
 (d) any LIBOR Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding
day in the calendar month at the end of such LIBOR Period) shall end on the last Business Day of a calendar month. 
 1.88
“LIBOR Rate” means for each LIBOR Period, a rate of interest determined by the Agent equal to the greater of: 
 (a) one percent (1%) per annum; and 
 (b) an amount equal to: 
 (i) the offered rates for deposits in Dollars for a period equal to each LIBOR Period that appears on the Bloomberg Screen (displaying an
average of quotations for British Bankers Association LIBOR Rates for the relevant time period) on the second full LIBOR Business Day next preceding the first day of such LIBOR Period, divided by 
 (ii) a number equal to 1.0 minus the aggregate (but without duplication) of the rates (expressed as a decimal fraction) of Reserve
Requirements in effect on the day which is two (2) LIBOR Business Days prior to the beginning of such LIBOR Period. 
 If the Bloomberg Screen shall cease to be available, clause (b)(i) above shall be deemed to read “the offered rates for deposits in Dollars for a period equal to each LIBOR Period as provided by Reuters and displayed on the U.S.
Treasury and Money Market Screen as published by the Mexican ‘Infosel’ System, divided by”. 
  

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 1.89 “Lien” means any mortgage or deed of trust, fideicomiso or
fideicomiso de garantía, pledge, hypothecation, assignment, deposit arrangement, lien, charge, claim, security interest, easement or encumbrance, or preference, priority or other security agreement or preferential arrangement of any
kind or nature whatsoever (including any lease or title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, and the filing of any financing statement perfecting a security interest under
the laws of any jurisdiction). 
 1.90 “Loan Documents” means this Agreement, the Security Agreement, the
Pledge Agreement, the Promissory Notes, the Guaranty Trust, the Subsidiary Guaranty, the Affiliate Guaranty and Security Agreement, the Intercreditor Agreement, the Evidence of Corporate Authority for Borrower and each Subsidiary Guarantor, the UK
Security Documents and all instruments, certificates, guaranties and agreements at any time delivered to the Agent pursuant to any of the foregoing, and all written amendments, modifications, renewals, extensions and rearrangements of, and
substitutions for, any of the foregoing. 
 1.91 “Loan Rate” means the per annum rate equal to the sum of 4.75%
plus the LIBOR Rate. 
 1.92 Reserved. 
 1.93 “Material Adverse Effect” means any material adverse effect (a) upon the business, assets, liabilities,
operations or condition (financial or otherwise) of (i) Borrower and its Subsidiaries taken as a whole or (ii) the U.S. Affiliates taken as a whole, (b) upon the ability of Borrower, the U.S. Affiliates or any other Guarantor to
perform in any material respect its obligations under this Agreement or any other Loan Document, or (c) upon the Collateral or the Agent’s Liens or the priority of such Liens. 
 1.94 “Maturity Date” means March 31, 2011. 
 1.95 “Maximum Amount” means the lesser of (i) US$15,000,000 and (ii) the sum of (x) 75% of the NFLV –
Parras Cone Machinery and Equipment and (y) 50% of the FMV – Parras Cone Land and Buildings. 
 1.96 “Maximum
Rate” has the meaning specified in Section 2.16. 
 1.97 “Mexico” means the United Mexican
States. 
 1.98 “Minimum Collateral Coverage Ratio” means the ratio of (a) (i) NFLV – Parras
Cone Machinery and Equipment plus (ii) FMV – Parras Cone Land and Buildings to (b) Consolidated Funded Senior Debt. 
 1.99 “Net Cash Proceeds” means (a) with respect to any Asset Sale, the cash proceeds received by Borrower or any Subsidiary, or GE Capital Bank, S.A., Institución de Banca
Múltiple, GE Capital Grupo Financiero, División Fiduciaria, in its capacity as the trustee under

  

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the Guaranty Trust (including cash proceeds subsequently received (as and when received by such Person) in respect of noncash consideration initially received) net of (i) selling expenses
(including reasonable broker’s fees or commissions, legal fees, value added tax, transfer and similar taxes and Borrower’s good faith estimate of income taxes paid or payable in connection with such sale); (ii) amounts provided as a
reserve, in accordance with GAAP, against any liabilities under any indemnification obligations associated with such Asset Sale (provided that, to the extent and at the time any such amounts are released from such reserve, such amounts shall
constitute Net Cash Proceeds); (iii) Borrower’s good faith estimate of payments required to be made with respect to unassumed liabilities relating to the assets sold within ninety (90) days of such Asset Sale (provided that, to
the extent such cash proceeds are not used to make payments in respect of such unassumed liabilities within ninety (90) days of such Asset Sale, such cash proceeds shall constitute Net Cash Proceeds); and (iv) the principal amount, premium
or penalty, if any, interest and other amounts on any Indebtedness for borrowed money which is secured by a Lien on the asset sold in such Asset Sale and which is repaid with such proceeds (other than any such Indebtedness assumed by the purchaser
of such asset); (b) with respect to any Debt Issuance, the cash proceeds thereof, net of customary fees, commissions, costs and other expenses incurred in connection therewith; and (c) with respect to any Equity Issuance, the cash proceeds
thereof, net of customary fees, commissions, costs and other expenses incurred in connection therewith. 
 1.100 “Net
Issuance Proceeds” has the meaning specified in the Revolving Loan Agreement. 
 1.101 “New Term
Loans” has the meaning specified in Section 2.20(b). 
 1.102 “New Term Loan Commitments”
has the meaning specified in Section 2.20(a). 
 1.103 “New Term Loan Lender” has the meaning
specified in Section 2.20(a). 
 1.104 “New York Courts” has the meaning specified in
Section 11.3(b). 
 1.105 “NFLV” means net forced liquidation value. 
 1.106 “NFLV – Parras Cone Machinery and Equipment” means a professional opinion of the estimated most probable price,
net expenses, expressed in Dollars which the Parras Cone Machinery and Equipment could typically realize at a properly advertised and professionally managed public auction held within 60 days of equipment possession; provided that all such
assets are to be sold in “as is condition, where is location”, with the purchaser being responsible for the dismantling and removal of such assets at their own risk and expense and such value also assumes a default situation where normal
maintenance has been deferred. 
 1.107 “Obligations” means all loans, advances, debts, liabilities and
obligations for the performance of covenants, tasks or duties or for payment of monetary amounts (whether or not such performance is then required or contingent, or such amounts are liquidated or determinable) owing by the Credit Parties to the
Agent and the Lenders under or in connection with the Loan Documents, and all covenants and duties regarding such amounts, of any kind or nature, present or future, whether or not evidenced by any note, agreement or other instrument, arising under
this Agreement or any of the other Loan Documents. This term includes all principal, interest

  

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(including all interest that accrues after the commencement of any case or proceeding (whether under the laws of the United States or Mexico) by or against any Credit Party in bankruptcy, whether
or not allowed in such case or proceeding), fees, Charges, expenses, reasonable attorneys’ fees and any other sum chargeable to any Credit Party under this Agreement or any of the Loan Documents. 
 1.108 “Organizational Documents” means the appropriate organizational documents of Borrower and any of its Subsidiaries, as
applicable (including its estatutos sociales) as in effect from time to time during the term of this Agreement. 
 1.109
“Parent” means International Textile Group, Inc., a Delaware corporation. 
 1.110 “Parras
Cone” means Parras Cone de México, S.A. de C.V., a Mexican stock limited liability corporation (sociedad anónima de capital variable). 
 1.111 “Parras Cone Land and Buildings” means any and all real estate (including any buildings and other improvements constructed thereon) owned by Parras Cone, described in the Guaranty
Trust which form part of the Collateral pursuant to the Guaranty Trust. 
 1.112 “Parras Cone Machinery and
Equipment” means any and all the machinery and equipment owned by Parras Cone described in the Guaranty Trust which form part of the Collateral pursuant to the Guaranty Trust. 
 1.113 “Parras Cone Receivables” means any and all the Accounts payable in favor of Parras Cone by any Debtors located in
the United States generated in the ordinary course of business under a sale agreement governed by the law of the United States or any state thereof, excluding any such Accounts sold, assigned or otherwise transferred by Parras Cone to a U.S.
Affiliate. 
 1.114 “Participant” has the meaning specified in Section 11.11(d). 
 1.115 “Past Due Rate” means the per annum rate equal to the sum of (a) the Loan Rate plus (b) 2%.

 1.116 “Permitted Encumbrances” means the following encumbrances: (a) presently existing or hereinafter
created Liens in favor of the Agent securing the Obligations; (b) Liens for taxes or assessments or other governmental Charges not yet due and payable; (c) pledges or deposits securing obligations under workmen’s compensation,
unemployment insurance, social security or public liability laws or similar legislation; (d) pledges or deposits securing bids, tenders, contracts (other than contracts for the payment of money) or leases to which Borrower or any of its
Subsidiaries is a party as lessee made in the ordinary course of business; (e) deposits securing statutory obligations of Borrower or any of its Subsidiaries; (f) any attachment or judgment lien not constituting an Event of Default under
Section 9.1(i); (g) zoning restrictions, easements, licenses, or other restrictions on the use of any real estate or other minor irregularities in title (including leasehold title) thereto, so long as the same do not materially
impair the use, value, or marketability of such real estate; (h) Liens created after the date hereof by conditional sale or other title retention agreements (including Capital Leases) or in connection with purchase money Indebtedness with
respect to equipment and fixtures acquired by Borrower or any of its

  

 15 

 
Subsidiaries in the ordinary course of business (provided that such Liens attach only to the assets subject to such purchase money debt and such Indebtedness is incurred within twenty (20)
days following such purchase and does not exceed 100% of the purchase price of the subject assets); and (i) those certain liens or encumbrances on the property of Borrower or its Subsidiaries existing as of the date hereof and as set forth on
Schedule 1.105 hereto. 
 1.117 “Person” means any individual, sole proprietorship, partnership, joint
venture, trust, unincorporated organization, association, corporation, limited liability company, institution, public benefit corporation, other entity (foreign or domestic) or Governmental Authority. 
 1.118 “Pledge Agreement” means the pledge agreement to be executed by Cone in favor of the Agent in form and substance
satisfactory to the Agent, pursuant to which Cone shall pledge its shares of the corporate capital of the Subsidiary Guarantors (other than the Specified Guarantors). 
 1.119 “Pledged Assets” has the meaning specified in Section 3.1(a). 
 1.120 “Promissory Note” means a promissory note of Borrower in the form of Exhibit E attached hereto delivered hereunder and payable to the order of the holder thereof. 

1.121 “Property” means any interest in any kind of property, asset or undertaking, whether real, personal or mixed, and
whether tangible or intangible. 
 1.122 “Pro Rata Share” means, with respect to any Lender, the percentage
obtained by dividing (a) the outstanding principal amount of the Term Loans of such Lender by (b) the aggregate outstanding principal amount of the Term Loans of all Lenders; provided, at any time prior to the making of the Term
Loans, “Pro Rata Share” shall be determined by dividing the Commitment of such Lender by the aggregate Commitments of all Lenders. 
 1.123 “Qualified Issuance” means an offering or series of offerings of stock of ITG or any Holding Company pursuant to a registration statement under the Securities Act of 1933, which
stock is listed on the New York Stock Exchange or NASDAQ and the incurrence of additional non-revolving Indebtedness by ITG permitted by the terms of the Revolving Loan Agreement or otherwise consented to by Required Lenders (as defined in the
Revolving Loan Agreement), which, collectively, result in gross proceeds of at least $175,000,000. 
 1.124
“Register” has the meaning specified in Section 11.11(e). 
 1.125 “Registered
Entity” means (a) an entity registered as a financial institution in the foreign banks registry (registro de bancos, entidades de financiamiento, fondos de pensiones y jubilaciones y fondos de inversión del extranjero)
with the Ministry of Finance and Public Credit of Mexico for purposes of Article 195 of the Mexican Income Tax Law and (b) UBS. 
 1.126 “Related Persons” means, with respect to any Person, each Affiliate of such Person and each director, officer, employee, agent, trustee, representative, attorney, accountant and
each insurance, environmental, legal, financial and other advisor and other consultants and agents of or to such Person or any of its Affiliates. 
  

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 1.127 “Relative Commitment Factor” means, at any date of determination, a
fraction where the numerator is the principal amount of all commitments outstanding under this Agreement and the denominator is the sum of the principal amounts of all commitments outstanding under this Agreement, the Revolving Loan Agreement and
the BST Facility. 
 1.128 “Replacement Lender” has the meaning specified in Section 2.19.

 1.129 “Required Lenders” means Lenders having more than sixty-six and two-thirds percent
(66 2/3%) of the aggregate outstanding amount
of Term Loans. 
 1.130 “Requirement of Law” means, as to any Person, any law (statutory or common),
ordinance, treaty, rule, regulation, order, policy, other legal requirement or determination of an arbitrator or of a Governmental Authority in any jurisdiction, in each case applicable to or binding upon such Person or any of its Property or to
which such Person or any of its Property is subject. 
 1.131 “Reserve Requirements” means reserve requirements
(including basic, supplemental, marginal and emergency reserves under any regulations of the Federal Reserve Board or other governmental authority having jurisdiction with respect thereto, as now and from time to time in effect) for Eurocurrency
funding (currently referred to as “Eurocurrency liabilities” in Regulation D of the Federal Reserve Board) which are required to be maintained by a member bank of the Federal Reserve System. 
 1.132 “Responsible Officer” means, with respect to any Person, the president, any vice president, treasurer or chief
financial officer of such Person or the corporate secretary, a senior manager, general manager or attorney-in-fact of such Person with comparable authorization. 
 1.133 “Revolving Loan Agreement” means the Credit Agreement dated as of December 29, 2006, by and among the Parent, ITG Holdings Inc., Burlington Industries LLC, Carlisle Finishing
LLC, Cone Denim LLC, Cone Jacquards LLC, Automotive Safety Components International, Inc., Safety Components Fabric Technologies, Inc. and Automotive Safety Components International Limited, as borrowers, the other Persons party thereto that are
designated as “Credit Parties”, the lenders from time to time party thereto and General Electric Capital Corporation, as agent for itself and the lenders from time to time party thereto, as such agreement may be amended, restated, modified
or otherwise supplemented from time to time. 
 1.134 “Sale” has the meaning specified in
Section 11.11(b). 
 1.135 “Secured Party” means the Agent, each Lender and each other Indemnified
Person. 
 1.136 “Security Agreement” means the security agreement governed by New York law substantially in
the form of Exhibit C attached hereto, and executed by Borrower, Parras Cone and the Agent. 
 1.137
“Series” has the meaning specified in Section 2.20(a). 
  

 17 

 1.138 “Services Agreement” means the services agreement dated as of
January 1, 2006 by and between Parras Cone and Manufacturas Parras Cone, S.A. de C.V. 
 1.139 “Settlement
Date” has the meaning specified in Section 2.18(b). 
 1.140 “Shares” means the Equity
Interests in the Subsidiary Guarantors (other than the Specified Guarantors) representing all of the economic and voting rights associated with ownership of one hundred percent (100%) of the outstanding capital stock of all classes of the
Subsidiary Guarantors (other than the Specified Guarantors) on a fully diluted basis. 
 1.141 “Sixth Amendment
Effective Date” means December 22, 2009. 
 1.142 “Solvent” means, with respect to any Person on
a particular date, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person; (b) the present fair salable value of the assets of
such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured; (c) such Person does not intend to, and does not believe that it will, incur debts or
liabilities beyond such Person’s ability to pay as such debts and liabilities mature; and (d) such Person is not engaged in a business or transaction, and is not about to engage in a business or transaction, for which such Person’s
property would constitute an unreasonably small capital. The amount of contingent liabilities (such as litigation, guaranties and pension plan liabilities) at any time shall be computed as the amount that, in light of all the facts and circumstances
existing at the time, represents the amount that can be reasonably be expected to become an actual or matured liability. 
 1.143 “Specified Guarantors” means, collectively, Burlington Yecapixtla, S.A. de C.V.; Cone Denim Yecapixtla, S.A. de C.V.; Casimires Burlmex, S.A. de C.V.; and Servicios Burlmex, S.A. de C.V. 
 1.144 “Stock Equivalents” means all securities convertible into or exchangeable for stock or any other Stock Equivalent and
all warrants, options or other rights to purchase, subscribe for or otherwise acquire any stock or any other Stock Equivalent, whether or not presently convertible, exchangeable or exercisable. 
 1.145 “Subsidiary” means, with respect to any Person, (a) any corporation (or Mexican equivalent thereof) of which an
aggregate of more than fifty percent (50%) of the outstanding shares of stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, shares of stock of any other
class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, owned legally or beneficially by such Person and/or one or more Subsidiaries of such
Person, or with respect to which any such Person has the right to vote or designate the vote of more than fifty percent (50%) of such shares of stock whether by proxy, agreement, operation of law or otherwise, and (b) any partnership or
limited liability company (or in either case, the Mexican equivalent thereof) in which such Person and/or one or more Subsidiaries of such Person shall have an interest (whether in the form of voting or participation in profits or capital
contribution) of more than fifty percent (50%) or of which any such Person is a general partner or manager (or in either case, the Mexican equivalent thereof) or

  

 18 

 
may exercise the powers of a general partner or manager (or in either case, the Mexican equivalent thereof). Notwithstanding the foregoing, Parras Cone shall be deemed to be a Subsidiary of
Borrower for all purposes hereunder and under the other Loan Documents. 
 1.146 “Subsidiary Guarantors” means
Parras Cone, Administración Parras Cone, S.A. de C.V. and Manufacturas Parras Cone, S.A. de C.V. and each other Subsidiary of Borrower that becomes party to the Subsidiary Guaranty. 
 1.147 “Subsidiary Guaranty” means the Guaranty of even date herewith executed by the Subsidiary Guarantors in favor of the
Agent in form and substance satisfactory to the Agent. 
 1.148 “Taxes” means any and all present or future
taxes, levies, imposts, deductions, charges, or withholdings and liabilities with respect thereto, payable in any jurisdiction, excluding in the case of any Lender, franchise or similar taxes or taxes imposed on or measured by its net income, in
each case imposed on such Lender by the jurisdiction (or any political subdivision thereof) under the laws of which such Lender is organized or maintains its lending office with respect to the Term Loans. 
 1.149 “Term Loan” means an Initial Term Loan and a New Term Loan and “Term Loans” means the Initial Term
Loans and New Term Loans. 
 1.150 “Third Amendment Effective Date” shall mean November 16, 2007.

 1.151 “Trustee” means GE Capital Bank, S.A., Institución de Banca Múltiple, GE Capital Grupo
Financiero, División Fiduciaria, acting in its capacity as trustee (fiduciario) of the Guaranty Trust. 
 1.152
“UBS” means UBS AG, Stamford Branch. 
 1.153 “UK Security Documents” means, collectively, the
UK Debenture and the UK Share Charge. 
 1.154 “U.S. Affiliate” means each of Parent, ITG Holdings, Inc.,
Burlington Industries LLC, Carlisle Finishing LLC, Cone Denim LLC, Cone Jacquards LLC, Safety Components Fabric Technologies, Inc., International Textile Group Acquisition Group LLC, WLR Cone Mills IP, Inc., Cone Acquisition LLC, Cone International
Holdings, Inc., Burlington International Services Company, Apparel Fabrics Properties, Inc., BI Properties I, Inc., Burlington Apparel Services Company, BILLC Acquisition LLC, Burlington Worldwide, Inc., Cone Administrative and Sales LLC, Cone Denim
White Oak LLC, Cliffside Denim LLC, Burlington Industries IV LLC, Burlington Industries V LLC, Cone International Holdings II, Inc., BWW CT, Inc., Valentec Wells, LLC, Narricot Industries LLC and each other entity organized under the laws of the
United States that becomes party to the Affiliate Guaranty and Security Agreement after the date hereof. 
 1.155
“Wachovia Non Pro Rata Pay Down” has the meaning specified in Section 2.18(b). 
 1.156
“Wachovia Pay Down Amount” has the meaning specified in Section 2.18(b). 
  

 19 

 1.157 “Wholly-Owned Subsidiary” means any Subsidiary in which (other than
directors’ qualifying shares required by law) one hundred percent (100%) of the stock and Stock Equivalents, at the time as of which any determination is being made, is owned, beneficially and of record, by any Credit Party, or by one or
more of the other Wholly-Owned Subsidiaries, or both. 
 2. The Facility 
 2.1 The Term Loans. Each of the initial Lenders severally agrees, upon the satisfaction of the conditions precedent set forth in
Article 4, to make a term loan (collectively, the “Initial Term Loans”) to Borrower on the Closing Date in an amount equal to such Lender’s Initial Commitment; provided, however, that, the aggregate principal amount of
all outstanding Initial Term Loans shall not exceed the Maximum Amount. Borrower may make only one borrowing under the Initial Commitments which shall be on the Closing Date. Once repaid, the Initial Term Loans may not be reborrowed. Each
Lender’s Initial Commitment shall terminate immediately and without further action on the Closing Date after giving effect to the funding of such Lender’s Initial Commitment on such date. 
 2.2 Promissory Notes. The Term Loans made by each Lender shall be evidenced by this Agreement and, if requested by such Lender, by a
Promissory Note payable to the order of such Lender in an amount equal to such Lender’s Commitment. 
 2.3 Borrowing
Mechanics for Term Loans. 
 (a) Borrower shall deliver to Agent a fully executed notice of borrowing and disbursement in
the form attached hereto as Exhibit H no later than three days prior to the Closing Date. Promptly upon receipt by Agent of such notice, Agent shall notify each Lender of the proposed borrowing. 
 (b) Each Lender shall make its Initial Term Loan available to Agent not later than 12:00 p.m. (New York City time) on the Closing Date, by
wire transfer of same day funds in Dollars, at the office designated by Agent. Upon satisfaction or waiver of the conditions precedent specified herein, Agent shall make the proceeds of the Initial Term Loans available to Borrower on the Closing
Date by causing an amount of same day funds in Dollars equal to the proceeds of all such Initial Term Loans received by Agent from Lenders to be credited to Borrower’s account No. 2000032605280 with Wachovia Bank N.A. for further credit to
Parras Cone’s account No. 1235458963 with Bank of America, N.A. (ABA# 121000358). 
 2.4 Use of Proceeds. The
proceeds of the Initial Term Loans shall be distributed to Parras Cone to permit Parras Cone to repay the Existing Indebtedness, together with fees and expenses in connection therewith. 
 2.5 Repayments. The principal amounts of the Term Loans shall be repaid in consecutive quarterly installments (each, an
“Installment”) in the aggregate amounts set forth below on the dates set forth below, commencing March 31, 2007: 
  

				
	 Amortization Date
	  	Term Loan Installments
	 March 31, 2007
	  	$	250,000
	 June 30, 2007
	  	$	250,000
	 September 30, 2007
	  	$	250,000
	 December 31, 2007
	  	$	250,000
	 March 31, 2008
	  	$	250,000
	 June 30, 2008
	  	$	250,000
	 September 30, 2008
	  	$	250,000
	 December 31, 2008
	  	$	250,000
	 March 31, 2009
	  	$	250,000
	 June 30, 2009
	  	$	250,000
	 September 30, 2009
	  	$	250,000
	 December 31, 2009
	  	$	250,000
	 March 31, 2010
	  	$	250,000
	 June 30, 2010
	  	$	250,000
	 September 30, 2010
	  	$	250,000
	 December 31, 2010
	  	$	250,000
	 Maturity Date
	  	 
  
	Remaining outstanding
 principal balance

  

 20 

 Notwithstanding the foregoing, (x) such Installments shall be reduced in connection with any voluntary
or mandatory prepayments of the Term Loans in accordance with Section 2.6; and (y) the Term Loans, together with all other amounts owed hereunder with respect thereto, shall, in any event, be paid in full no later than the Maturity Date.

 2.6 Prepayments. 
 (a) Optional Prepayments. Borrower shall have the right at any time and from time to time to prepay the Term Loans, in whole or in part, upon at least five (5) Business Days’ prior
written notice; provided, however, that any such prepayment shall be (i) in amounts not less than US$250,000 and in multiples of US$250,000 in excess thereof, (ii) accompanied by payment of interest on the amount of such
prepayment accrued to the date of such prepayment, (iii) applied as set forth in Section 2.10, and (iv) subject to payment of break funding losses (if any) as set forth in Section 2.11. Each notice of prepayment
shall specify the prepayment date and the principal amount of the Term Loans (or portion thereof) to be prepaid, shall be irrevocable and shall commit Borrower to prepay the Term Loans by the amount stated therein on the date stated therein.

 (b) Mandatory Prepayments. 
 (i) Not later than five (5) Business Days following the receipt of any Net Cash Proceeds of any Asset Sale of Parras Cone Machinery and Equipment, Parras Cone Land

  

 21 

 
and Buildings or Equity Interests of any Subsidiary Guarantor, Borrower shall apply an amount equal to the applicable NFLV – Parras Cone Machinery and Equipment, FMV – Parras Cone Land
and Buildings or Net Cash Proceeds with respect thereto to prepay the Term Loans. 
 (ii) In the event that insurance proceeds
are payable in respect of any Casualty Event or any series of related Casualty Events, Borrower may elect to restore or replace the property affected by such Casualty Event so long as no Event of Default shall have occurred and be continuing and
provided that Borrower provides notice to the Agent within fifteen (15) days of the occurrence of the Casualty Event of its election to restore or replace the affected property; provided that, if Borrower does not deliver such notice within
such 15-day period, Borrower shall prepay the Term Loans in an amount equal to 100% of such proceeds. If Borrower so elects, it shall deliver to the Agent, within forty-five (45) days from the delivery of the notice referenced above, a
restoration or replacement plan, for the application of such insurance proceeds and any other funds available to Borrower to restore or replace the property; provided that, if Borrower does not deliver such restoration or replacement plan within
such 45-day period, Borrower shall prepay the Term Loans in an amount equal to 100% of such proceeds. All restoration or replacement of property must be completed within two hundred seventy (270) days of the Casualty Event. Borrower shall
prepay the Term Loans in an amount equal to 100% of such proceeds within two (2) Business Days following the expiration of such two hundred seventy (270) day period. 
 (iii) Immediately upon receipt by ITG, or any Holding Company of ITG or BST, of the Net Issuance Proceeds of any issuance of Stock (as
defined in the Revolving Loan Agreement) or Stock Equivalents (as defined in the Revolving Loan Agreement) (including any capital contribution but excluding (1) any Net Issuance Proceeds from Excluded Equity Issuances and (2) an amount of
proceeds from the issuances of Stock (as defined in the Revolving Loan Agreement) by ITG or any Holding Company of ITG or BST pursuant to a Qualified Issuance up to the lesser of (x) $15,000,000, and (y) an amount equal to 50% of the
accrued and unpaid interest (including any PIK interest) with respect to the 18% Senior Note Subordinated Indebtedness, so long as in the case of this subclause (2), such amount is used to repay the accrued and unpaid interest (including any PIK
interest) with respect to the 18% Senior Note Subordinated Indebtedness), Borrower shall prepay, or cause to be prepaid, the Term Loans in an amount equal to the Relative Commitment Factor as of such date multiplied by such Net Issuance Proceeds.

 (iv) Immediately upon receipt by Borrower or any of the Subsidiary Guarantors of the Net Cash Proceeds of any Equity
Issuance, Borrower shall prepay the Term Loans in an amount equal to all such Net Cash Proceeds. 
 (v) Immediately upon
receipt by ITG, or any Holding Company of ITG or BST, of the Net Issuance Proceeds of Holdco Debt (other than the 18% Senior Note Subordinated Indebtedness), Borrower shall prepay, or cause to be prepaid, the Term Loans in an amount equal to the
Relative Commitment Factor as of such date multiplied by such Net Issuance Proceeds. 
  

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 (vi) Immediately upon receipt by Borrower or any of the Subsidiary Guarantors of the Net
Cash Proceeds of any Debt Issuance, Borrower shall prepay the Term Loans in an amount equal to all such Net Cash Proceeds. 
 (vii) Immediately upon receipt by ITG or any of its Subsidiaries of the Net Proceeds (as defined in the Revolving Loan Agreement) of (x) any Disposition (as defined in the Revolving Loan Agreement) of Equipment or real Property or
(y) any Event of Loss (as defined in the Revolving Loan Agreement) of Equipment or real Property and, in each case, to the extent ITG or any of its Subsidiaries is required to make a mandatory prepayment under the Revolving Loan Agreement in
connection with such Disposition or Event of Loss, Borrower shall prepay, or cause to be prepaid, the Term Loans in an amount equal to 50% of such Net Proceeds. 
 All mandatory prepayments made pursuant to Section 2.6(b) shall be applied as set forth in Section 2.10, shall not be subject to payment of break funding losses (if any) as set
forth in Section 2.11, and shall be accompanied by payment of interest on the amount of such prepayment accrued to the date of such prepayment. Any portion of the Term Loans prepaid pursuant to this Section 2.6 may not be
reborrowed. 
 2.7 Interest. 
 (a) Interest shall accrue on the outstanding unpaid principal amount of the Term Loans and all other Obligations at the Loan Rate from and including the Closing Date (or, with respect to Obligations other
than the Term Loans, the date such Obligations are due and payable; provided that in the case of Obligations arising pursuant to the Guaranty Trust such Obligations shall accrue interest pursuant to the terms and conditions set forth in such
agreements) to but excluding the Maturity Date or such later date or earlier date, as the case may be, on which all amounts due hereunder shall have been paid in full. Interest payable on the Term Loans and all other Obligations shall be calculated
on the basis of a 360-day year and actual days elapsed in each period during which interest shall accrue. 
 (b) Interest on the
Term Loans and all other Obligations shall be paid in arrears on each Interest Payment Date, the Maturity Date and, if any amounts hereunder remain outstanding thereafter, upon demand. 
 (c) Borrower shall have the option to continue all or any portion of any Term Loan upon the expiration of the applicable LIBOR Period. Any
Term Loan or group of Term Loans having the same proposed LIBOR Period to be continued must be in a minimum amount of $1,000,000 and integral multiples of $100,000 in excess of such amount. Any such election must be made by Borrower by 2:00 p.m.
(New York time) on the 3rd Business Day prior to the end of each LIBOR Period. If no election is received by 2:00 p.m. (New York time) on the 3rd Business Day prior to the end of the LIBOR Period with respect to any Term Loan, that Term Loan shall
be continued with a LIBOR period of one month. Borrower must make such election by notice to the Agent in writing, by fax or overnight courier (or by telephone, to be confirmed in writing on such day) or Electronic Transmission. In the case of any
continuation, such election must be made pursuant to a written notice (a “Notice of Continuation”) in the form of Exhibit K. 
  

 23 

 (d) Upon receipt of a Notice of Continuation, the Agent will promptly notify each Lender
thereof. In addition, the Agent will, with reasonable promptness, notify Borrower and the Lenders of each determination of the LIBOR Rate; provided that any failure to do so shall not relieve Borrower of any liability hereunder or provide the
basis for any claim against the Agent. All continuations shall be made pro rata according to the respective outstanding principal amounts of the Term Loans held by each Lender with respect to which the notice was given. 
 (e) Notwithstanding any other provision contained in this Agreement, after giving effect to any continuation of any Term Loans, there shall
not be more than three (3) different LIBOR Periods in effect. 
 2.8 Default Interest. Notwithstanding anything
contained in Section 2.7 to the contrary, while any Default or Event of Default exists pursuant to Sections 9.1(a), (f-h) or (m-n) or after acceleration of any of the Obligations hereunder, Borrower shall pay
interest (to the extent permitted by applicable law) on the outstanding principal amount of the Term Loans and all other Obligations, at the Past Due Rate and such interest shall be payable from time to time on demand. 
 2.9 Payments. All payments (including prepayments) to be made by Borrower on account of principal, interest and other amounts
required hereunder shall be made without set-off, recoupment, counterclaim or deduction of any kind, shall, except as otherwise expressly provided herein, be made to the Agent (for the ratable account of the Persons entitled thereto) at the address
for payment specified in the signature page hereof in relation to the Agent (or such other address outside the territory of Mexico as the Agent may from time to time specify in accordance with Section 11.2), and shall be made in Dollars
and in immediately available funds, no later than 2:00 p.m. (New York time) on the date due. Any payment which is received by the Agent later than 2:00 p.m. (New York time) shall be deemed to have been received on the immediately succeeding Business
Day and any applicable interest shall continue to accrue. Borrower and each other Credit Party hereby irrevocably waives the right to direct the application during the continuance of an Event of Default of any and all payments in respect of any
Obligation and any proceeds of Collateral. 
 2.10 Application of Payments. All payments received by the Agent
(including, without limitation, proceeds received in connection with the sale of Collateral pursuant to the Guaranty Trust) hereunder or under any other Loan Document shall be applied first to the payment of any late charges, fees, taxes,
levies, imposts, duties, charges, deductions or withholdings due and payable hereunder or under any other Loan Document, second to the payment of interest due and payable hereunder, third to the payment of the principal balance
outstanding hereunder, fourth to the payment of any other amounts owing constituting Obligations, and fifth, for the account of and paid to whoever may be lawfully entitled thereto; provided, however, that
(i) partial prepayments shall be applied to prepay scheduled installments of the Term Loans in inverse order of maturity and (ii) notwithstanding anything contained herein to the contrary (including this Section 2.10),
insurance proceeds arising in connection with a Casualty Event affecting the Collateral shall be applied in accordance with Section 2.6(b)(ii). In carrying out the foregoing, (x) amounts received shall be applied in the numerical
order provided until exhausted prior to the application to the next succeeding category and (y) each of the Lenders or other Persons entitled to payment shall receive an amount equal to its pro

  

 24 

 
rata share of amounts available to be applied pursuant to clauses second, third and fourth above. The Agent promptly shall provide Borrower with written notice if any payment received by the
Agent hereunder does not fully satisfy Borrower’s obligations with respect to payments due on such date hereunder, which notice shall set forth the amount and nature of payments still due; provided, however, that failure to
provide such notice shall not relieve Borrower of its obligation to pay interest at the Past Due Rate with respect to any amount of principal of the Term Loans not paid when due. 
 2.11 Break Funding Losses. Except as otherwise provided herein, if Borrower makes any payment or prepayment of principal of the Term
Loans on a date that is not an Interest Payment Date, Borrower shall reimburse each Lender on demand for any losses incurred by such Lender as a result of the timing of such payment, including, without limitation, any losses incurred in liquidating
or employing deposits from third parties. Each Lender will advise Borrower whether a break funding cost will be imposed on a specified payment. A certificate of such Lender setting forth the basis for determining such loss shall be conclusive and
binding on Borrower, absent bad faith or manifest error. This covenant shall survive the Maturity Date. 
 2.12 Changes;
Legal Restrictions. If any current or future applicable law, rule or regulation or any change therein or in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender with any request or directive of any such authority, central bank or comparable agency, whether or not having the force of law shall impose, modify or deem applicable any Reserve
Requirements or any other reserve (including, without limitation, any imposed by the Board of Governors of the Federal Reserve System of the United States), special deposit, compulsory loan or similar requirements (other than any capital adequacy
requirements) in connection with the Term Loans, or deposits or other liabilities with, of or for the account of the Term Loans, or credit extended by, or any acquisition of funds by or for the account of any office of such Lender or shall impose on
such Lender any other condition affecting its obligations relating to its Term Loans; and the result of any of the foregoing would be in the reasonable judgment of such Lender to increase the cost to such Lender of its Term Loans, or reduce the
amount of any sum receivable by such Lender under this Agreement, then, upon written demand by such Lender, Borrower shall pay to such Lender such additional amount or amounts as would compensate such Lender for such increased costs or reduction. A
statement by such Lender setting forth in reasonable detail the basis for the calculation and determination of any such additional amount or amounts necessary to compensate such Lender shall be conclusive and binding upon Borrower, absent manifest
error. Notwithstanding the foregoing, if such charges or restrictions are the result of funding or maintaining its Term Loans, such Lender will use its best efforts to minimize or avoid the effects of such results by designating a different lending
office or transferring its Term Loans to any other office or Affiliates of such Lender if such designation or transfer would avoid the need for such charges or restrictions and would not, in the sole opinion of such Lender, be otherwise
disadvantageous to such Lender. 
 2.13 Illegality. Notwithstanding any other provision herein, in the event that it is
or shall become unlawful in any jurisdiction for any Lender to continue to fund or to maintain its Term Loans or to comply with its obligations under this Agreement, such Lender shall give notice thereof to Borrower together with a description of
the basis for such illegality. Upon the giving of such notice, the duties of such Lender hereunder shall terminate and all outstanding

  

 25 

 
obligations of Borrower hereunder together with all accrued interest with respect thereto and all other amounts payable to such Lender hereunder shall be prepaid by Borrower immediately or at
such later date up to and including the end of the current interest periods as may be permitted by law. Any such prepayment shall be made without premium, penalty or charges for break funding losses, unless maintaining the Term Loans becomes
unlawful under the laws of Mexico in which event break funding losses, if any, will be chargeable to Borrower under Section 2.11. Notwithstanding the foregoing, if the illegality refers to funding and/or maintaining its Term Loans, such
Lender will use its best efforts to minimize or avoid the effects of such illegality by designating a different lending office or transferring its Term Loans to any of such Lender’s Affiliates if such designation or transfer would be
permissible under the applicable laws and avoid the need for a prepayment and would not, in the sole opinion of such Lender, be otherwise disadvantageous to such Lender. 
 2.14 Taxes. All payments of principal, interest, fees and other amounts made or in respect to this Agreement or the Loan Documents shall be made without set-off or counterclaim and free and clear
of and without deduction for any and all Taxes (other than Excess Withholding Taxes). Borrower agrees to cause all such Taxes to be paid on behalf of the Agent and the Lenders directly to the appropriate Governmental Authority. Borrower shall
provide the Agent with copies of tax receipts or such other documentation as will prove payment of tax in a Mexican court or in another court applying the United States Federal Rules of Evidence, for all Taxes paid by Borrower pursuant to this
Section 2.14. Borrower shall deliver such receipts or other accountable documentation to the Agent within forty-five (45) days following the end of each Fiscal Quarter. If Borrower fails to pay any such Taxes when due to the
appropriate taxing authority or fails to remit to the Agent the required receipts or other required documentary evidence, Borrower agrees to indemnify and immediately upon demand reimburse the Agent and each Lender for any incremental taxes,
interest or penalties that may become payable by the Agent or such Lender as a result of any such failure. The Agent and the Lenders shall not be obliged to pass on to Borrower any benefits that may accrue to any of them pursuant to this
Section 2.14. 
 2.15 Currency Inconvertibility. In the event that any Credit Party is not able to satisfy an
Obligation as a result of any restriction or prohibition on (i) the exchange of Mexican currency for Dollars or (ii) the transferring of Dollars outside of Mexico, Borrower shall use all means available to cause its shareholders
(including, but not limited to, Parent), Subsidiaries or other income sources outside of Mexico to provide sufficient Dollars to satisfy such Obligation, provided that no Credit Party shall, nor be required to, take any action that would violate any
Requirement of Law or result in an adverse tax consequence to any Credit Party. Borrower acknowledges and agrees that nothing contained in this Section 2.15 shall prohibit or restrict the Agent or the Lenders from exercising any remedies
available to them by law or in this Agreement. 
 2.16 Maximum Rate. Anything herein to the contrary notwithstanding, if
during any period for which interest is computed hereunder, the applicable interest rate, together with all fees, charges and other payments which are treated as interest under applicable law, as provided for herein or in any other Loan Document,
would exceed the maximum rate of interest which may be charged, contracted for, reserved, received or collected by the Lenders in connection with this Agreement under applicable law (the “Maximum Rate”), Borrower shall not be

  

 26 

 
obligated to pay, and the Lenders shall not be entitled to charge, collect, receive, reserve or take, interest in excess of the Maximum Rate, and during any such period the interest payable
hereunder shall be limited to the Maximum Rate. 
 2.17 Fees. Borrower agrees to pay to the Agent and the Lenders certain
fees in the amounts and at the times separately agreed upon. 
 2.18 Pro Rata Shares; Settlement 
 (a) Pro Rata Shares. All Initial Term Loans shall be made by Lenders simultaneously and proportionately to their respective Pro Rata
Shares, it being understood that no Lender shall be responsible for any default by any other Lender in such other Lender’s obligation to make an Initial Term Loan requested hereunder. 
 (b) Settlement. At least once each calendar month or more frequently at Agent’s election (each, a “Settlement
Date”), Agent shall advise each Lender by telephone or fax of the amount of such Lender’s Pro Rata Share of principal and interest paid for the benefit of Lenders with respect to each applicable Term Loan. Agent shall pay to each
Lender such Lender’s Pro Rata Share of principal and interest paid by Borrower since the previous Settlement Date for the benefit of such Lender on the Term Loans held by it. Notwithstanding the preceding sentence, on the Third Amendment
Effective Date, Borrower may pay to Agent an amount equal to the then aggregate principal amount of all outstanding Term Loans of Wachovia Bank, National Association (the “Wachovia Pay Down Amount”) under this Agreement, which
amount Agent shall pay in full to Wachovia Bank, National Association without regard to each Lender’s Pro Rata Share (the “Wachovia Non Pro Rata Pay Down”). Furthermore, on the Sixth Amendment Effective Date, Borrower may pay
to Agent an amount equal to the CIT Payment Amount, which amount Agent shall pay in full to The CIT Group/Commercial Services, Inc. without regard to each Lender’s Pro Rata Share. Such payments shall be made by wire transfer to such Lender not
later than 2:00 p.m. (New York time) on the next Business Day following each Settlement Date. 
 (c) Availability of
Lender’s Pro Rata Share. Agent may assume that each Lender will make its Pro Rata Share of each Initial Term Loan available to Agent on the Closing Date. If such Pro Rata Share is not, in fact, paid to Agent by such Lender on the Closing
Date, Agent will be entitled to recover such amount on demand from such Lender without setoff, counterclaim or deduction of any kind. If any Lender fails to pay the amount of its Pro Rata Share forthwith upon Agent’s demand, Agent shall
promptly notify Borrower and Borrower shall immediately repay such amount to Agent. Nothing in this Section 2.18(c) or elsewhere in this Agreement or the other Loan Documents shall be deemed to require Agent to advance funds on behalf of
any Lender or to relieve any Lender from its obligation to fulfill its Commitment hereunder or to prejudice any rights that Borrower may have against any Lender as a result of any default by such Lender hereunder. To the extent that Agent advances
funds to Borrower on behalf of any Lender and is not reimbursed therefor on the same Business Day as such advance is made, Agent shall be entitled to retain for its account all interest accrued on such advance until reimbursed by the applicable
Lender. 
  

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 (d) Return of Payments. 
 (i) If Agent pays an amount to a Lender under this Agreement in the belief or expectation that a related payment has been or will be
received by Agent from Borrower and such related payment is not received by Agent, then Agent will be entitled to recover such amount from such Lender on demand without setoff, counterclaim or deduction of any kind. 
 (ii) If Agent determines at any time that any amount received by Agent under this Agreement must be returned to any Credit Party or paid to
any other Person pursuant to any insolvency law or otherwise, then, notwithstanding any other term or condition of this Agreement or any other Loan Document, Agent will not be required to distribute any portion thereof to any Lender. In addition,
each Lender will repay to Agent on demand any portion of such amount that Agent has distributed to such Lender, together with interest at such rate, if any, as Agent is required to pay to Borrower or such other Person, without setoff, counterclaim
or deduction of any kind. 
 2.19 Replacement of Lenders. Within forty-five days after: (i) receipt by Borrower of
written notice and demand from any Lender (an “Affected Lender”) for payment of additional costs as provided in Sections 2.12, 2.13 or 2.14; or (ii) any failure by any Lender to consent to a requested amendment, waiver
or modification to any Loan Document in which Required Lenders have already consented to such amendment, waiver or modification but the consent of each Lender (or each Lender directly affected thereby, as applicable) is required with respect
thereto, Borrower may, at its option, notify the Agent and such Affected Lender (or such non-consenting Lender) of Borrower’s intention to obtain, at Borrower’s expense, a replacement Lender (which shall be an Assignee)
(“Replacement Lender”) for such Affected Lender (or such non-consenting Lender), which Replacement Lender shall be an Assignee and shall be reasonably satisfactory to the Agent. In the event Borrower obtains a Replacement Lender
within forty-five (45) days following notice of its intention to do so, the Affected Lender (or non-consenting Lender) shall sell and assign its Term Loans to such Replacement Lender, at par, provided that Borrower has reimbursed such Affected
Lender for its increased costs for which it is entitled to reimbursement under this Agreement through the date of such sale and assignment. In the event that a replaced Lender does not execute an Assignment pursuant to Section 11.11
within five (5) Business Days after receipt by such replaced Lender of notice of replacement pursuant to this Section 2.19 and presentation to such replaced Lender of an Assignment evidencing an assignment pursuant to this
Section 2.19, such Assignment shall nonetheless become effective if it is executed by Borrower and the Agent. Upon any such assignment and payment and compliance with the other provisions of Section 11.11, such replaced
Lender shall no longer constitute a “Lender” for purposes hereof; provided, any rights of such replaced Lender to indemnification hereunder shall survive as to such replaced Lender. 
 2.20 Commitment Increase. 
 (a) Borrower may by written notice to Agent, on no more than one occasion, elect to request the establishment of one or more new term loan commitments (the “New Term Loan Commitments”),
(i) in an aggregate amount equal to (A) the Wachovia Pay Down Amount less (B) all Pro Rata Share payments of principal that would have been payable to Wachovia Bank, National Association since the date of the Wachovia Non Pro
Rata Pay Down had the Wachovia Non Pro Rata Pay Down not occurred and (ii) not less than $1,000,000 individually (or such lesser amount which shall be approved by Agent). Such notice shall specify (A) the date (the

  

 28 

 
“Increased Amount Date”) on which Borrower proposes that the New Term Loan Commitments shall be effective, which shall be a date not less than 10 Business Days after the date on
which such notice is delivered to Agent and (B) the identity of each Lender or other Person that is an Assignee under Section 11.11 of this Agreement (each, a “New Term Loan Lender”) to whom Borrower proposes any portion
of such New Term Loan Commitments be allocated and the amounts of such allocations; provided that any Lender approached to provide all or a portion of the New Term Loan Commitments may elect or decline, in its sole discretion, to provide a New Term
Loan Commitment. Such New Term Loan Commitments shall become effective, as of such Increased Amount Date; provided that (1) no Default or Event of Default shall exist on such Increased Amount Date before or after giving effect to such New Term
Loan Commitments, as applicable; (2) the Wachovia Non Pro Rata Pay Down shall have occurred; (3) Borrower and its Subsidiaries shall be in pro forma compliance with each of the covenants set forth in Section 8 as of the last day of
the most recently ended Fiscal Quarter after giving effect to such New Term Loan Commitments; (4) the Agent shall have received amendments to this Agreement, a joinder agreement for any New Term Loan Lender and all other promissory notes,
agreements, documents and instruments requested by the Agent in its reasonable discretion evidencing and setting forth the conditions of the New Term Loan Commitments. 
 (b) On any Increased Amount Date on which any New Term Loan Commitments are effective, subject to the satisfaction of the foregoing terms and conditions, (i) each New Term Loan Lender shall make a
Term Loan to Borrower (a “New Term Loan”) in an amount equal to its New Term Loan Commitment, and (ii) each New Term Loan Lender shall become a Lender hereunder with respect to the New Term Loan Commitment of such Series and
the New Term Loans made pursuant thereto. 
 (c) Agent shall notify Lenders promptly upon receipt of Borrower’s notice of
the Increased Amount Date and in respect thereof the New Term Loan Commitments and the New Term Loan Lenders. 
 (d) The terms
and provisions of the New Term Loans and New Term Loan Commitments shall be identical to the Initial Term Loans. Each joinder agreement may, without the consent of any other Lenders, effect such amendments to this Agreement and the other Credit
Documents as may be necessary or appropriate, in the opinion of the Agent, to effect the provision of this Section 2.20. 
 3.
Security 
 3.1 Security in Collateral; Delivery of Guaranty Trust. 
 (a) As security for performance and payment of the Term Loans and all other Obligations, (i) Borrower and Parras Cone, as settlors
(fideicomitentes) and beneficiaries, shall execute and deliver the Guaranty Trust pursuant to which Borrower and Parras Cone shall appoint the Agent, as first beneficiary (fideicomisario en primer lugar) and grant the Agent, for the
benefit of the Secured Parties, a valid and perfected security interest in the Collateral (collectively, the “Pledged Assets”), (ii) Cone shall execute and deliver the Pledge Agreement in favor of the Agent pursuant to which
Cone shall grant the Agent, for the benefit of the Secured Parties, a valid and perfected security interest in its shares of the capital of each of the Subsidiary

  

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Guarantors (other than the Specified Guarantors), (iii) Parras Cone shall execute and deliver the Security Agreement in favor of the Agent pursuant to which Parras Cone shall grant the
Agent, for the benefit of the Secured Parties, a valid and perfected security interest in certain Parras Cone Receivables payable in the United States and Equipment (as defined in the Security Agreement) and (iv) each of the U.S. Affiliates
shall execute and deliver the Affiliate Guaranty and Security Agreement in favor of the Agent pursuant to which each such U.S. Affiliate shall grant the Agent, for the benefit of the Secured Parties, a valid and perfected security interest in
substantially all assets of such U.S. Affiliate, which security interest shall be subordinated to such U.S. Affiliate’s obligations relating to the Revolving Loan Agreement pursuant to the Intercreditor Agreement. 
 (b) The Loan Documents to be delivered to the Agent pursuant to Section 3.1(a) shall be (i) duly executed and delivered
before a Mexican notary public (with the exception of the Security Agreement and the UK Security Documents) within 21 days of the Closing Date, and (ii) accompanied by (X) copies of insurance policies evidencing that the Collateral covered
thereby is insured adequately to protect the Agent’s interest therein, together with endorsements acceptable to the Agent, showing the Trustee as a named additional loss payee with respect to, or named additional beneficiary of, any insurance
proceeds resulting from any Casualty Event affecting such Collateral, (Y) an opinion of external counsel for Borrower opining on the validity and enforceability thereof, and (Z) such other approvals, opinions, agreement, documents or
materials as the Agent shall request in connection therewith including, but not limited to, the NFLV and FMV calculations required pursuant to Section 3.2. 
 (c) Within 60 days of the Closing Date, Borrower shall deliver evidence that in respect of the Guaranty Trust all registration duties have been paid and the Guaranty Trust has been filed for recordation
in all public registries and other places to the extent necessary or desirable, in the sole judgment of the Agent, to create a valid and enforceable first priority security interest (subject to Permitted Encumbrances) in favor of the Agent on the
Pledged Assets. 
 3.2 Value of Collateral; Valuation of the Collateral. The NFLV – Parras Cone Machinery and
Equipment and FMV – Parras Cone Land and Buildings shall be calculated (i) on or prior to the Closing Date and thereafter (ii) no more often than twice during any calendar year (consisting of one site visit and one desktop appraisal);
provided, however, that during the occurrence or continuance of any Default or Event of Default, then the Agent shall be permitted to conduct audits, appraisals and valuations as often as it deems appropriate in its sole discretion. After the
determination of the NFLV – Parras Cone Machinery and Equipment and FMV – Parras Cone Land and Buildings, the Agent shall provide Borrower with written notice informing Borrower of such NFLV – Parras Cone Machinery and Equipment and
FMV – Parras Cone Land and Buildings. 
 4. Conditions Precedent 
 4.1 Conditions Precedent. The obligations of the Lenders to make the Initial Term Loans hereunder are subject to the following
conditions precedent: 
 (a) the Agent shall have received the following documents from the Credit Parties, each of which shall
be in form and substance satisfactory to the Agent: 
 (1) a copy of this Agreement, duly executed and delivered by the parties
hereto; 
  

 30 

 (2) the Evidence of Corporate Authority for Borrower and each of the Subsidiary Guarantors,
together with such Person’s corporate charter (escritura constitutiva), current bylaws (estatutos sociales) and powers of attorney; 
 (3) an opinion of Romo, Paillés y Guzmán, S.C., Mexican special counsel to the Credit Parties, substantially in the form attached hereto as Exhibit F-1; 
 (4) an opinion of Jones Day, United States special counsel to the Credit Parties, substantially in the form attached hereto as
Exhibit F-2; 
 (5) the Affiliate Guaranty and Security Agreement, duly executed and delivered by the U.S.
Affiliates; 
 (6) the Subsidiary Guaranty, duly executed and delivered by each of the Subsidiary Guarantors; 
 (7) the Promissory Notes payable to each Lender, duly executed by Borrower; 
 (8) the Guaranty Trust, duly executed and delivered by each of the parties thereto; 
 (9) the Security Agreement; 
 (10) the Pledge Agreement, duly executed and delivered by Cone; 
 (11) the
Intercreditor Agreement, duly executed and delivered by the parties thereto; 
 (12) the UK Share Charge, duly executed and
delivered by ASCI Holdings UK (DE), Inc.; 
 (13) UCC financing statements naming Agent as Secured Party and Borrower and the
Subsidiary Guarantors, as debtors, filed in the District of Columbia; 
 (14) a certificate from Borrower certifying that
(i) since December 31, 2005, there has not occurred (A) an event that has had, or would be expected to have, a Material Adverse Effect, or (B) any litigation against Borrower or any of its Subsidiaries which, if successful, would
have a Material Adverse Effect or which would challenge the transactions contemplated hereunder; (ii) all representations and warranties contained in Article 5 applicable to Borrower or any of its Subsidiaries are true and correct
in all material

  

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respects as of the Closing Date with the same effect as though such representations and warranties had been made on and as of such date; and (iii) no Default or Event of Default shall have
occurred or be continuing on such date; 
 (15) a certificate from the Secretary of each U.S. Affiliate (i) attesting to
the resolutions of such U.S. Affiliate’s board of directors authorizing its execution, delivery, and performance of the Affiliate Guaranty and Security Agreement and the UK Share Charge, as applicable, (ii) authorizing specific officers of
such U.S. Affiliate to execute the same; (iii) certifying copies of such U.S. Affiliate’s governing documents, as amended, modified, or supplemented to the Closing Date; (iv) attesting to the incumbency and signatures of such specific
officers of such U.S. Affiliate; and (v) attaching a certificate of good standing with respect to such U.S. Affiliate, dated within 10 days of the Closing Date; 
 (16) a notice of borrowing and disbursement issued by Borrower, substantially in the form attached hereto as Exhibit H; 
 (17) a letter appointing CT Corporation System as agent for service of process in New York for the Credit Parties and proof of payment for
term of the loan, together with a Mexican power of attorney, notarized and apostilled by means of which Borrower, Cone and Parras Cone appoint CT Corporation System as their agent for service of process in New York; 
 (18) a solvency certificate from Borrower in form, scope and substance satisfactory to the Agent, demonstrating that after giving effect to
(i) the terms of this Agreement, (ii) the making of the Initial Term Loans, and (iii) the payment and accrual of all transaction costs in connection with the foregoing, each of Borrower and its Subsidiaries is Solvent; and 

(19) such other documents, instruments, opinions or agreements as the Agent or the Lenders may reasonably require; and 
 (b) Borrower and its Subsidiaries shall have (i) repaid in full all Existing Indebtedness substantially contemporaneously with the
making of the Initial Term Loans and (ii) delivered to the Agent all documents or instruments necessary to release all Liens securing Existing Indebtedness or other obligations of Borrower and its Subsidiaries thereunder being repaid on the
Closing Date; 
 (c) the Agent and the Lenders shall have received payment of any expenses referenced in
Section 11.8 for which Borrower has been invoiced as of the Closing Date; provided, however, that nothing contained in this Section 4.1(b) shall relieve Borrower from its obligation under this Agreement to pay
for any expenses referenced in Section 11.8 that arise or are invoiced after the Closing Date; and 
 (d) no Default
or Event of Default shall have occurred and be continuing. 
  

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 5. Representations and Warranties. Borrower, with respect to itself and on behalf of each of its
Subsidiaries, represents and warrants to the Agents and the Lenders as of the Closing Date, after giving effect to the transactions contemplated hereby, that: 
 5.1 Organization. Each of Borrower and the Subsidiary Guarantors is a Mexican stock limited liability corporation (sociedad anónima de capital variable) duly organized and validly
existing under the laws of Mexico and has full corporate power and authority to conduct its business as presently conducted. 
 5.2 Financial Statements. Any financial statement delivered by Borrower or its Subsidiaries to the Agent has been prepared in accordance with GAAP, consistently applied, and presents fairly, in all material respects, as modified by
the notes thereto, the financial condition of Borrower and its Subsidiaries as of the applicable date and the results of the operations of Borrower and its Subsidiaries during the periods ending on such dates. 
 5.3 Enforceable Obligations; Authorization. Each of this Agreement, the Guaranty Trust, the Pledge Agreement, the Security Agreement,
any Promissory Note and the other Loan Documents to which Borrower or any of the Subsidiary Guarantors is a party is Borrower’s or such Subsidiary Guarantor’s legal, valid and binding obligations, enforceable in accordance with their
respective terms, except as may be limited by bankruptcy, concurso mercantil, insolvency and other similar laws affecting creditors’ rights generally and by general equitable principles. Any judgment against Borrower or any of the
Subsidiary Guarantors rendered in a state or federal court in the state of New York may be enforced in the courts of Mexico. The execution, delivery and performance of the Loan Documents to which Borrower or any of the Subsidiary Guarantors is a
party (i) have been duly authorized by all necessary corporate action; (ii) are within such Person’s power and authority to perform; (iii) do not and will not contravene or violate any Legal Requirement applicable to such Person
or its Organizational Documents; (iv) do not and will not result in the breach of, or constitute a default under, any material agreement or instrument by which such Person or any of its property may be bound or affected; and (v) except for
the Liens granted pursuant to Article 3, do not and will not result in the creation of any Lien upon any of its property. All necessary authorizations in connection with the performance of Borrower’s or any of the Subsidiary
Guarantors’ obligations under this Agreement, the Guaranty Trust, the Security Agreement, the Promissory Notes and the other Loan Documents to which Borrower or such Subsidiary Guarantor is a party have been obtained and are in full force and
effect, including but not limited to final approvals by all appropriate Governmental Authorities having jurisdiction over Borrower or such Subsidiary Guarantor. 
 5.4 Litigation. There is no litigation or administrative proceeding (including, without limitation, environmental proceedings) pending or, to its knowledge, threatened against, nor any outstanding
judgment, order or decree affecting, Borrower or any of the Subsidiary Guarantors before or by any Governmental Authority having jurisdiction over Borrower or such Subsidiary which would reasonably be expected to have a Material Adverse Effect, nor
is Borrower or such Subsidiary in default with respect to any judgment, order or decree of any Governmental Authority having jurisdiction over Borrower or such Subsidiary, which would reasonably be expected to have Material Adverse Effect.

  

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 5.5 Rank. The Obligations of Borrower and the Subsidiary Guarantors under this
Agreement and each of the other Loan Documents to which Borrower or any such Subsidiary Guarantor is a party rank, and will rank, at least pari passu in priority of payment with all other senior, secured and unsubordinated Indebtedness
of Borrower or such Subsidiary Guarantor in relation to the Pledged Assets, whether now existing or hereafter arising. 
 5.6
No Adverse Changes. Since December 31, 2005, no event or circumstance has occurred that would reasonably be expected to result in a Material Adverse Effect. 
 5.7 Liens. Good and marketable title to all property and assets (including the Collateral) is held by Borrower and the Subsidiary Guarantors free and clear of all Liens, except for Permitted
Encumbrances. 
 5.8 No Default. Neither Borrower nor any of the Subsidiary Guarantors is in default under (i) any
material contract, lease, sublease or other agreement to which it is a party or by which it or its properties may be bound, or (ii) any agreement for borrowed money. 
 5.9 No Immunity. None of Borrower or any of the Subsidiary Guarantors or any of their respective property has any immunity from jurisdiction of any court or from any legal process (whether through
service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) under the laws of Mexico. 
 5.10 No Taxes. Except for any withholding tax imposed on interest payable by Borrower hereunder, there is no tax, levy, impost, duty, fee, assessment or other governmental charge, or any deduction or withholding, imposed by any
Governmental Authority either (i) on or by virtue of the execution or delivery of the Loan Documents or (ii) on any payment to be made by Borrower or any other Credit Party pursuant to the Loan Documents. 
 5.11 Disclosure. None of the representations or warranties made by any Credit Party in the Loan Documents as of the date of such
representations and warranties, and none of the statements contained in any certificate or in any other information with respect to any Credit Party or any of its Subsidiaries, including each exhibit thereof, furnished by or on behalf of it to the
Agent or any Lender in connection with the Loan Documents, contains any untrue statement of a material fact or omits any material fact required to be stated therein or necessary to make the statements made therein not misleading. 
 5.12 Compliance with Laws. Except as disclosed on Schedule 5.12, each of Borrower and the Subsidiary Guarantors is in
compliance, in all material respects, with all Requirements of Law (including, without limitation, Environmental Laws, IMSS (Social Security Mexican Institute), INFONAVIT (National Housing Fund Institute) and SAR (Retirement Savings
System)). 
 5.13 Environmental Laws. Without limiting the generality of Section 5.12, neither Borrower
nor any of the Subsidiary Guarantors is in violation of any applicable health, safety, or Environmental Law or regulation regarding Hazardous Substances and is not the subject of any claim, proceeding, notice, or other communication regarding any
Environmental Law or Hazardous Substances which would reasonably be expected to result in liabilities under any Environmental Law exceeding $250,000 in the aggregate. 
  

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 5.14 Insurance. Borrower and the Subsidiary Guarantors have obtained all the
necessary insurance policies, coverage and endorsements related thereto required under this Agreement (including, without limitation, pursuant to Sections 3.1 and 6.6). 
 5.15 Solvency. Both before and after giving effect to (a) the terms of this Agreement, (b) the making of the Term Loans,
and (c) the payment and accrual of all transaction costs in connection with the foregoing, each of Borrower and the Subsidiary Guarantors is and will be Solvent. 
 5.16 Activities of Administración Parras Cone, S.A. de C.V. and Manufacturas Parras Cone, S.A. de C.V. Neither Administración Parras Cone, S.A. de C.V. nor Manufacturas Parras Cone,
S.A. de C.V. engages in any business or activity or owns any assets other than employing persons who provide services to Parras Cone. 
 6.
Affirmative Covenants 
 Borrower covenants and agrees with the Agent and the Lenders that until this Agreement
terminates in accordance with Section 11.4, it will do, and where applicable, cause each of its Subsidiaries to do, all of the following: 
 6.1 Compliance with Laws. Comply with all Requirements of Law (including, without limitation, Environmental Laws, IMSS (Social Security Mexican Institute), INFONAVIT (National Housing
Fund Institute) and SAR (Retirement Savings System)) except where the necessity of compliance therewith is contested in good faith by appropriate proceedings or where the failure to comply would not reasonably be expected to have a
Material Adverse Effect. 
 6.2 Financial Statements and Information. Deliver to the Agent, in form and detail
satisfactory to the Agent: 
 (a) As soon as available, but not later than one hundred twenty (120) days after the end of
the Fiscal Year (commencing with the Fiscal Year ended December 31, 2006), audited financial statements for Borrower and its Subsidiaries on a consolidated basis, consisting of the balance sheet as of the end of such year and the related
statements of income, shareholders’ equity, and retained earnings and cash flows for such year, setting forth in comparative form in each case the figures for the previous Fiscal Year, which financial statements shall be prepared in accordance
with GAAP and certified without qualification, by an independent certified public accounting firm of national standing or otherwise acceptable to the Agent. Such financial statements shall be accompanied by the annual letters to such accountants in
connection with their audit examination detailing contingent liabilities and material litigation matters. The financial statements delivered pursuant to this Section 6.2(a) shall be accompanied a Compliance Certificate as specified in
Section 6.7(a). 
 (b) As soon as available, but not later than forty-five (45) days after the end of each
Fiscal Quarter of each Fiscal Year (commencing with the Fiscal Quarter ended December 31, 2006), unaudited consolidated and consolidating financial statements for Borrower and its Subsidiaries, consisting of the balance sheet as of the end of
such Fiscal Quarter and the related statements of income, shareholders’ equity, and retained earnings and cash flows for the period commencing on the first day and ending on the last day of such Fiscal Quarter, in each case

  

 35 

 
setting forth in comparative form the figures for the corresponding period in the prior year, all prepared in accordance with GAAP (subject to normal year-end adjustments). The financial
statements delivered pursuant to this Section 6.2(b) shall be accompanied a Compliance Certificate as specified in Section 6.7(a). 
 (c) As soon as available, but not later than thirty (30) days after the end of each Fiscal Month of each Fiscal Year (commencing with the Fiscal Month ended December 31, 2006), unaudited
consolidated and consolidating financial statements for Borrower and its Subsidiaries, consisting of the balance sheet as of the end of such Fiscal Month and the related statements of income, shareholders’ equity, and retained earnings and cash
flows for the period commencing on the first day and ending on the last day of such Fiscal Month, in each case setting forth in comparative form the figures for the corresponding period in the prior year, all prepared in accordance with GAAP
(subject to normal year-end adjustments). 
 (d) Within five (5) Business Days after receipt thereof, copies of all
management letters, exception reports or similar letters or reports received by Borrower or any of the Subsidiary Guarantors from its independent certified public accountants. 
 (e) As soon as available, but not later than sixty (60) days after the end of each Fiscal Year, an annual operating plan for Borrower,
with annual forecasts (to include forecasted consolidated balance sheets, income statements and cash flow statements) for Borrower as at the end of and for each Fiscal Quarter of such Fiscal Year. 
 6.3 Notice of Certain Matters. Notify the Agent (a) within three (3) Business Days after any Responsible Officer of
Borrower obtains knowledge of the occurrence of any change in the financial condition, business, operations or properties of Borrower or any of its Subsidiaries, respectively, if such change would reasonably be expected to result in a Material
Adverse Effect; (b) within three (3) Business Days after any Responsible Officer of Borrower obtains knowledge of any Default or Event of Default, and if such Default or Event of Default is then continuing, a certificate of the chief
financial officer or the chief accounting officer of Borrower setting forth the details thereof and the action that Borrower is taking or proposes to take with respect thereto; and (c) within three (3) Business Days after any
Responsible Officer of Borrower obtains knowledge of an action, suit or proceeding pending or threatened against Borrower or any of its Subsidiaries before any court or arbitrator or any governmental body, agency or official in which, in the good
faith opinion of Borrower, there is a reasonable possibility of an adverse decision which would have a Material Adverse Effect (after taking into account all potential appeals) or which in any manner draws into question the validity of the Loan
Documents, a certificate of an authorized Responsible Officer of Borrower setting forth in reasonable detail a description of such action, suit or proceeding. 
 6.4 Use of Proceeds. Use the proceeds of the Initial Term Loans in accordance with Section 2.4. 
 6.5 Inspection of Property; Books and Records. Keep proper books of record and account in which full, true and correct entries shall be made of all financial transactions in relation to its
business and activities; and will permit the Agent or any of its Related Persons, at Borrower’s expense, to visit and inspect any of Borrower’s or its Subsidiaries’ properties, to

  

 54 

 
examine and make abstracts from any of its books and records and to discuss affairs, finances and accounts with Borrower’s or such Subsidiaries’ Responsible Officers, employees and
independent public accountants, all at such times during normal business hours upon reasonable advance notice to Borrower and as often as may reasonably be desired, provided that such visitations and inspections are conducted in a manner that does
not interfere with or otherwise interrupt in any material respect, the operations of Borrower or any such Subsidiary; provided, however, (i) Borrower will not be responsible for the expenses of more than one (1) field examination in
any calendar year unless a Default or an Event of Default exists and (ii) when an Event of Default exists, the Agent may do any of the foregoing at the expense of Borrower at any time during normal business hours and without advance notice.

 6.6 Insurance. 
 (a) Coverage. Without limiting any of the other obligations or liabilities of Borrower under this Agreement, Borrower and the Subsidiary Guarantors shall, during the term of this Agreement, carry
and maintain, at such Person’s own expense, at least the minimum insurance coverage set forth in this Section 6.6. Borrower and the Subsidiary Guarantors shall also carry and maintain any other insurance that the Agent may
reasonably require from time to time. All insurance carried pursuant to this Section 6.6 shall be placed with such insurers having a minimum A.M. Best rating of A:X, and be in such form, with terms, conditions, limits and deductibles as
shall be consistent with the requirements of this Agreement or otherwise reasonably acceptable to the Agent. Unless otherwise agreed by the Agent, such insurance shall comply with the following requirements: 
 (i) All Risk Property Insurance. Borrower and the Subsidiary Guarantors shall maintain all risk property insurance covering against
physical loss or damage to their assets, including, but not limited to, fire and extended coverage, collapse, flood and comprehensive boiler and machinery coverage (including electrical malfunction and mechanical breakdown). Coverage shall be
written on a replacement cost basis. Such insurance shall not contain an exclusion for resultant damage caused by faulty workmanship, design or materials. Such insurance policy shall contain an agreed amount endorsement waiving any coinsurance
penalty and shall include expediting expense coverage in an amount not less than US$1,000,000. 
 (ii) Business Interruption
Insurance. As an extension of the insurance required under Section 6.6(a)(i), or as a separate placement, Borrower and the Subsidiary Guarantors shall maintain business interruption insurance in an amount equal to twelve
(12) months projected net profits, and continuing expenses (including principal and interest due on the Term Loans). Such coverage shall also provide for contingent business interruption covering the major suppliers and customers of Borrower
and the Subsidiary Guarantors. Such insurance shall contain an agreed amount endorsement waiving any coinsurance penalty and also cover service interruption and extra expenses in an amount not less than US$1,000,000. The deductibles on this policy
shall not be greater than thirty (30) days. 
 (iii) Comprehensive General Liability Insurance. Borrower and the
Subsidiary Guarantors shall maintain comprehensive general liability insurance written on an occurrence basis with a limit of not less than US$2,000,000. Such coverage shall include premises/operations, explosion, collapse, underground hazards,
contractual liability, independent contractors, property damage and personal injury liability. 
  

 37 

 (iv) Automobile Liability Insurance. Borrower and the Subsidiary Guarantors shall
maintain automobile liability insurance covering owned, non-owned, leased, hired or borrowed vehicles against bodily injury or property damage. Such coverage shall have a limit of not less than between US$75,000 and US$100,000 or the Mexican Peso
equivalent of such sums. 
 (b) Endorsements. Borrower shall, unless otherwise agreed by Agent, cause all insurance
policies carried and maintained in accordance with this Section 6.6 (other than those policies carried and/or maintained by or on behalf of the Specified Guarantors, solely in respect of property and assets of the Specified Guarantors
and not in respect of any Collateral hereunder) to be endorsed as follows: 
 (i) The Trustee and the Agent shall be additional
insureds with the Trustee as loss payee, with respect to the property policies of the Borrower and the Subsidiary Guarantors (other than the Specified Guarantors) described in Section 6.6(a)(i). The Trustee and the Agent shall be
additional insureds with respect to the liability policies of the Borrower and the Subsidiary Guarantors (other than the Specified Guarantors) described in Sections 6.6(a)(ii) and (a)(iii). It shall be understood that any obligation
imposed upon Borrower or any of the Subsidiary Guarantors, including but not limited to the obligation to pay premiums, shall be the sole obligation of Borrower or such Subsidiary Guarantor and not that of the Trustee nor the Agent; 
 (ii) inasmuch as the liability policies are written to cover more than one insured, all terms, conditions, insuring agreements and
endorsements, with the exception of the limits of liability, shall operate in the same manner as if there were a separate policy covering each insured; 
 (iii) the insurers thereunder shall waive all rights of subrogation against the Trustee and the Agent and any right of setoff or counterclaim and any other right to deduction, whether by attachment or
otherwise; and 
 (iv) if such insurance is canceled for any reason whatsoever, including nonpayment of premium, or any changes
are initiated by Borrower, the applicable Subsidiary Guarantor or insurance carrier which affect the interests of the Agent, such cancellation or change shall not be effective as to the Agent until thirty (30) days, except for non-payment of
premium which shall be ten (10) days, after receipt by the Agent of written notice sent by mail from such insurer. 
 (c)
Certifications. At each policy renewal, Borrower shall provide to the Agent approved certification from each insurer or by an authorized representative of each insurer. Such certification shall identify the underwriters, the type of
insurance, the limits, deductibles, and term thereof and shall specifically list the special provisions delineated in Section 6.6(b) above, for such insurance required in this Section 6.6. 
  

 38 

 (d) General. The Agent and its Related Persons shall be entitled, upon reasonable
advance notice, to review Borrower’s and each of the Subsidiary Guarantors’ books and records regarding all insurance policies carried and maintained with respect to Borrower’s and the Subsidiary Guarantors’ obligations under
this Section 6.6. Upon request, Borrower shall furnish the Agent with copies of all insurance policies, binders, and cover notes or other evidence of such insurance. Notwithstanding anything to the contrary herein, no provision of this
Section 6.6 or any provision of this Agreement shall impose on the Agent any duty or obligation to verify the existence or adequacy of the insurance coverage maintained by Borrower and the Subsidiary Guarantors, nor shall the Agent be
responsible for any representations or warranties made by or on behalf of Borrower or any of the Subsidiary Guarantors to any insurance broker, company or underwriter. The Agent, at its sole option, may obtain such insurance if not provided by
Borrower or by the Subsidiary Guarantors and in such event, Borrower shall reimburse the Agent upon demand for the cost thereof together with interest. 
 6.7 Certificates; Other Information. Furnish to the Agent and the Lenders: 
 (a) concurrently with the delivery of the financial statements referred to in Sections 6.2(a) and (b), a Compliance Certificate executed by Borrower’s chief financial officer or chief accounting officer which
(i) sets forth in reasonable detail the calculations required to establish that Borrower was in compliance with the requirements of Article 8 on the date of such financial statements, (ii) certifies that all such financial
statements present fairly in all material respects in accordance with GAAP the financial position, results of operations and statements of cash flows of Borrower and its Subsidiaries on a consolidated and consolidating basis, as at the end of the
relevant fiscal period then ended, and (iii) states whether any Default or Event of Default exists on the date of such certificate and, if any Default or Event of Default then exists, sets forth the details thereof and the action that Borrower
is taking or proposes to take with respect thereto; and 
 (b) promptly, such additional information regarding the business,
financial or corporate affairs of Borrower or any of the Subsidiary Guarantors as the Agent may from time to time reasonably request. 
 6.8 Payment of Obligations. Pay and discharge at or before maturity all of Borrower’s or any of its Subsidiaries’ material obligations and liabilities (including, without limitation, tax liabilities and claims of
materialmen, warehousemen and the like, which, if unpaid, would by law give rise to a Lien), except where the same may be contested in good faith by appropriate negotiations or proceedings, and will maintain, in accordance with GAAP, appropriate
reserves for the accrual of any of the same. 
 6.9 Conduct of Business and Maintenance of Existence. 
 (a) Preserve and maintain in full force and effect Borrower’s and each Subsidiary Guarantor’s organizational existence; and

 (b) Continue to engage in business of the same general type as now conducted by Borrower or any of its Subsidiaries or any
business complimentary or related thereto; do or cause to be done all things necessary to obtain, preserve, renew, extend and keep in full force and

  

 39 

 
effect the rights, licenses, permits, franchises, authorizations, patents, copyrights, trademarks and trade names material to the conduct of Borrower’s or such Subsidiary’s business
except as would not reasonably be expected to have a Material Adverse Effect; provided, however, that the restrictions described in this Section 6.9 shall not prohibit the discontinuance of any business activity or
operation if, in the good faith judgment of Borrower, such action is desirable in the conduct of the business of Borrower or such Subsidiary and is not disadvantageous in any material respect to the Lenders. 
 6.10 Licenses. Obtain and maintain all licenses, authorizations, consents, filings, exemptions, registrations and other governmental
approvals of any Government Authority necessary in connection with the execution, delivery and performance of the Loan Documents and the consummation of the transactions therein contemplated. 
 6.11 Ranking. Take or cause to be taken all action which may be or become necessary or appropriate to ensure that Borrower’s
Obligations under this Agreement and the other Loan Documents, as applicable, will continue to constitute its direct, unconditional and senior secured obligations. 
 6.12 Guarantors. Within ten (10) Business Days of the creation or acquisition (from time to time) by Parras Cone of any Subsidiary, cause such Subsidiary to (i) execute a joinder
agreement in form and substance satisfactory to the Agent pursuant to which such Subsidiary shall become a “Guarantor” under the Subsidiary Guaranty and (ii) transfer its assets to a guaranty trust and grant such collateral and pledge
such assets as set forth therein. 
 6.13 Hazardous Substances. Without limiting the generality of
Section 6.1, comply with all applicable Environmental Laws, except as would not reasonably be expected to have a Material Adverse Effect. The Credit Parties shall promptly, at their sole cost and expense, take all reasonable actions with
respect to any Hazardous Substances or other environmental condition at, on, or under any of their respective real property necessary to (except in each case, as would not reasonably be expected to have a Material Adverse Effect) (i) comply
with all applicable Environmental Laws, (ii) allow continued use, occupation or operation of such property, and (iii) maintain the fair market value of such property. 
 6.14 Notices Regarding Hazardous Substances. Promptly notify the Agent in writing if it knows, suspects or believes that there may be
any Hazardous Substance in or around any of its real property, or in the soil, groundwater or soil vapor on or under such property, or that it may be subject to any threatened or pending investigation by any Governmental Agency under any current or
future law (including, without limitation, applicable Environmental Laws), regulation or ordinance pertaining to any Hazardous Substance, in each case, to the extent that a Material Adverse Effect would reasonably be expected to result therefrom.

 6.15 Further Assurances. Promptly execute and deliver (or use reasonable efforts to cause other Persons to execute and
deliver) any and all further documents, agreements and instruments, and to take further action (including, without limitation, giving notices of assignment, recording assignments of mortgages, pledges and other security documents) that may be
required under applicable law, or that the Agent may reasonably request, in order to effectuate the transactions contemplated by the Loan Documents and in order to evidence, confirm, grant, preserve and perfect the Agent’s security interest in
the Collateral. 
  

 40 

 6.16 Collateral. (a) Within ten (10) Business Days from
the acquisition of land, buildings, machinery or equipment by any of the Subsidiary Guarantors (other than the Specified Guarantors) (i) in an amount equal to or greater than US$200,000 for a single asset acquisition or (ii) in an amount
equal to or greater than US$500,000 for asset acquisitions in the aggregate during an interim period prior to the dates referenced in clause (b) and (b) on each June 1st and December 1st of each Fiscal Year for the cumulative amount of land, buildings, machinery or equipment acquired since the
immediately preceding June 1st or December 1
st for which the aggregate value of assets acquired during
an interim period is less than US$500,000, Borrower shall cause such Subsidiary Guarantor (other than the Specified Guarantors) to (i) grant as collateral and pledge any such other property or assets of whatever kind and nature consistent with
the terms of the Guaranty Trust and (ii) cause such Subsidiary Guarantor (other than the Specified Guarantors) to transfer such assets to the Guaranty Trust and grant as collateral and pledge any such other property or assets as set forth in
the Guaranty Trust. 
 6.17 Maintenance of Property. Keep all property useful and necessary in Borrower’s or any of
its Subsidiaries’ businesses in good working order and condition, ordinary wear and tear excepted; provided, however, that Borrower or such Subsidiary shall not be prevented by this Section 6.17 from discontinuing
those operations or disposing of or suspending the maintenance of those properties which, in the reasonable judgment of Borrower or such Subsidiary, are no longer necessary or useful in the conduct of the business of Borrower or such Subsidiary, so
long as such discontinuation, disposition or suspension is not disadvantageous in any material respect to the Lenders. 
 7. Negative
Covenants 
 Borrower covenants and agrees with the Agent and the Lenders that until this Agreement terminates in accordance
with Section 11.4, it will not do or permit, and where applicable, cause each of its Subsidiaries not to do or permit any of the following to occur: 
 7.1 Mergers. Consolidate or merge with or into any other Person; provided that any Subsidiary may merge into Borrower or into another Subsidiary, provided that in the case of Borrower,
Borrower shall be the surviving entity. 
 7.2 Sale of Assets. Sell, lease or otherwise dispose of its properties or
other assets, including the stock of any of its Subsidiaries or any of its accounts receivable or other forms of obligations during the term of this Agreement; provided that Borrower or any of its Subsidiaries may sell, lease or otherwise
dispose of any of its assets in the ordinary course of business or otherwise in accordance with Section 6.9; provided further that Parras Cone may (i) sell, assign or otherwise transfer Parras Cone Receivables to any U.S.
Affiliate and (ii) sell buildings, land, machinery or equipment so long as (a) the value of such assets do not exceed US$250,000 in any single transaction and (b) the aggregate value for all buildings, land, machinery or equipment
sold during any fiscal year of Borrower do not exceed US$500,000. Notwithstanding anything contained in this Section 7.2, the sale of assets consisting of Collateral may only be made as provided in the Guaranty Trust or the Security
Agreement, as applicable. 
  

 41 

 7.3 Sale and Lease-Back Transactions. Enter into any sale-leaseback, synthetic lease
or similar transaction involving any arrangement, directly or indirectly, with any person whereby Borrower or any of its Subsidiaries shall sell or transfer any property, real or personal, used or useful in its business, whether now owned or
hereafter acquired, and thereafter rent or lease such property or other property which it intends to use for substantially the same purpose or purposes as the property being sold or transferred unless the sale of such property is permitted by
Section 7.2. 
 7.4 Other Indebtedness; Cancellation of Indebtedness; Affiliate Transactions. 
 (a) Create, incur, assume or permit to exist any Indebtedness or Guaranteed Indebtedness, except (i) Indebtedness secured by Permitted
Encumbrances, (ii) the Term Loans and the other Obligations, (iii) deferred taxes, (iv) unfunded pension fund and other employee benefit plan obligations and liabilities to the extent they are permitted to remain unfunded under
applicable law, (v) Guaranteed Indebtedness described in Schedule 7.4(a), (vi) Capital Lease Obligations secured only by the acquired asset of Borrower or any of its Subsidiaries in the ordinary course of business, (vii) the
Foreign Exchange Facility and any foreign exchange forward contracts entered into in connection therewith for the purpose of hedging currency exchange risk and not for speculative purposes and (viii) existing Indebtedness described in
Schedule 7.4(a) and refinancings thereof or amendments or modifications thereto on terms and conditions no less favorable to Borrower or the applicable Subsidiary of Borrower, as determined by the Agent in the exercise of its reasonable
discretion, than (x) the terms of the Indebtedness being refinanced, amended or modified or (y) the terms of this Agreement, unless in either case, such terms and conditions are incorporated into this Agreement for the benefit of the Agent
and the Lenders. 
 (b) Cancel any claim or debt owing to it, except for reasonable consideration negotiated on an arm’s
length basis and in the ordinary course of its business consistent with past practices. 
 (c) Enter into or be a party to any
transaction with any Affiliate thereof except in the ordinary course of and pursuant to the reasonable requirements of Borrower’s or any of its Subsidiary’s business and upon fair and reasonable terms that are no less favorable to Borrower
or such Subsidiary than would be obtained in a comparable arm’s length transaction with a Person not an Affiliate of Borrower or such Subsidiary; provided that (i) Borrower may contribute the proceeds of the Initial Term Loans and
such additional amounts to Parras Cone as are necessary in order for Parras Cone to repay the Existing Indebtedness and pay fees and expenses in connection therewith and (ii) Parras Cone may sell, assign or otherwise transfer the Parras Cone
Receivables to any U.S. Affiliate. 
 7.5 Liens. Create, incur or allow to exist Liens other than Permitted Encumbrances
with respect to any assets of Borrower or any of its Subsidiaries. 
  

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 7.6 Restriction on Dividend Payments and Intercompany Transfers. 
 (a) Declare or pay any dividend on, or repurchase or commit to repurchase, any of the shares of Borrower’s capital stock of any class
or make or commit to make any other payment in respect thereof or cause any equity reduction in Borrower’s capital stock of any class. 
 (b) Directly or indirectly enter into or become bound by any agreement, instrument, indenture or other obligation (other than this Agreement and the other Loan Documents) that could directly or indirectly
restrict, prohibit or require the consent of any Person (other than Borrower’s shareholders) with respect to the payment of dividends or distributions or the making or repayment of intercompany loans by a Subsidiary of Borrower to Borrower.

 7.7 Restriction on Amendments to Organizational Documents. Amend or modify Borrower’s or any of its
Subsidiaries’ Organizational Documents in a manner that is material and adverse to the Lenders. 
 7.8 Changes in
Business. Borrower shall not engage in any business activities other than (i) ownership of the Equity Interests of Parras Cone or of any other Subsidiary in existence on the date hereof or from time to time created or acquired in accordance
with this Agreement or investments in other Persons not prohibited by this Agreement, (ii) activities incidental to maintenance of its existence and (iii) performance of its obligations under this Agreement and the other Loan Documents.

 7.9 Permitted Activities of Administración Parras Cone, S.A. de C.V. and Manufacturas Parras Cone, S.A. de C.V.
Administración Parras Cone, S.A. de C.V. and Manufacturas Parras Cone, S.A. de C.V. shall not (a) incur, directly or indirectly, any Indebtedness, (b) create or suffer to exist any Lien upon any property or assets now owned or
hereafter acquired by it other than Liens created under the respective Loan Documents to which it is a party or permitted pursuant to Section 7.5 hereof; or (c) engage in any business or activity or own any assets other than
(i) employing persons who provide services to Parras Cone, (ii) performing its respective obligations and activities incidental thereto under the Loan Documents and (iii) performing any activities incidental to the foregoing clauses
(i) and (ii). 
 8. Specific Financial Covenants 
 Borrower shall not breach or fail to comply with any of the following financial covenants, each of which shall be calculated on a quarterly basis in accordance with GAAP (provided that the covenant set
forth in Section 8.3 shall be calculated on an annual basis): 
 8.1 Minimum Collateral Coverage Ratio. The
Minimum Collateral Coverage Ratio, measured as of the end of the Fiscal Quarter ending on each date set forth below, shall not to be less than the following: 
  

			
	 Period
	  	Minimum
Collateral
Coverage
		
	 December 31, 2006
	  	1.288:1.0
		
	 March 31, 2007
	  	1.310:1.0
		
	 June 30, 2007
	  	1.332:1.0
		
	 September 30, 2007
	  	1.356:1.0
		
	 December 31, 2007
	  	1.380:1.0
		
	 March 31, 2008
	  	1.405:1.0
		
	 June 30, 2008
	  	1.431:1.0
		
	 September 30, 2008
	  	1.458:1.0
		
	 December 31, 2008
	  	1.486:1.0
		
	 March 31, 2009
	  	1.515:1.0
		
	 June 30, 2009
	  	1.546:1.0
		
	 September 30, 2009 and thereafter
	  	1.577:1.0

  

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 8.2 Fixed Charge Coverage Ratio. The Fixed Charge Coverage Ratio shall not at any
time be less than 1.05:1.0. 
 8.3 Maximum Capital Expenditures. Borrower and the Subsidiary Guarantors, on a
consolidated basis, shall not make Capital Expenditures during the following periods that exceed in the aggregate the amounts set forth opposite each of such periods: 
  

				
	 Period
	  	Maximum Capital
Expenditures per
Fiscal Year
		
	 From the Closing Date through December 31, 2006
	  	US$	375,000
		
	 January 1, 2007 through December 31, 2007
	  	US$	2,650,000
		
	 January 1, 2008 through December 31, 2008
	  	US$	4,000,000
		
	 January 1, 2009 through December 31, 2009
	  	US$	1,000,000
		
	 January 1, 2010 through December 31, 2010
	  	US$	1,750,000
		
	 January 1, 2011 through March 31, 2011
	  	US$	500,000

 ; provided, that
(x) if at the end of any period set forth above, the amount specified above for Capital Expenditures during such period (before giving effect to the Excess Amount, as hereinafter defined) exceeds the aggregate amount of Capital Expenditures
actually made or

  

 44 

 
incurred by Borrower and the Subsidiary Guarantors on a consolidated basis during such period (the amount of such excess being referred to herein as the “Excess Amount”),
Borrower and the Subsidiary Guarantors shall be entitled to make additional Capital Expenditures in the immediately (but not any other) succeeding period in an aggregate amount equal to the sum of the Excess Amount plus the amount set forth above
for such period and (y) in determining whether any amount is available for carryover, the amount expended in any period shall first be deemed to be from the amount allocated to such period (before giving effect to the Excess Amount).

 9. Events of Default and Remedies 
 9.1 Events of Default. If one or more of the following events (“Events of Defaults”) shall have occurred and be continuing: 
 (a) Borrower shall fail to pay when due (i) any principal of or interest on the Term Loans or any fees or any other amounts payable to
the Trustee hereunder or under any other Loan Document, or (ii) any other fees or any other amount payable hereunder or under any Loan Document within five (5) Business Days of the due date hereof; 
 (b) any Credit Party shall fail to observe or perform any covenant contained in Sections 3.1, 6.2, 6.3,
6.4, 6.6, and 6.9(a), Article 7, Sections 8.1 through 8.3, inclusive, of this Agreement; 
 (c) any Credit Party shall fail to observe or perform any covenant or agreement contained in any Loan Document (other than those covered by clause (a) or (b) above) for thirty (30) days
after notice thereof has been given to Borrower by the Agent or any Lender; 
 (d) any representation, warranty, certification
or statement made by or on behalf of any Credit Party in any Loan Document or in any certificate, financial statement or other document delivered pursuant thereto shall prove to have been incorrect in any material respect when made (or deemed made);

 (e) this Agreement or any other Loan Document or any material provision hereof or thereof shall at any time and for any
reason cease to be valid, binding and enforceable in accordance with its terms, be declared to be null and void, or a proceeding shall be commenced by any Credit Party, or by a Governmental Authority having jurisdiction over such party, seeking to
establish the invalidity or unenforceability thereof (exclusive of questions of interpretation of any provision thereof); 
 (f)
Borrower, Subsidiary Guarantor or any U.S. Affiliate shall fail (i) to make any payment of any principal of, or interest or premium on, any Indebtedness (other than in respect of the Term Loans) in principal amount outstanding (individually or
in the aggregate) of at least US$500,000 (or its equivalent in another currency), whether by scheduled maturity, required prepayment, acceleration, demand or otherwise, and such failure shall continue after the applicable grace period, if any,
specified in the agreement or instrument relating to such Indebtedness as of the date of such failure, or (ii) to perform or observe any term, covenant or condition on its part to be performed or observed under any agreement or instrument
relating to any such Indebtedness, when required to be performed or observed, and such failure shall

  

 45 

 
continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such failure to perform or observe is to accelerate, or to permit the acceleration
of, the maturity of such Indebtedness; or any such Indebtedness shall be declared to be due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), prior to the stated maturity thereof; 
 (g) Borrower, any of the Subsidiary Guarantors or any U.S. Affiliate with assets in excess of $1,000,000 shall commence a voluntary case or
other proceeding seeking liquidation, reorganization, concurso mercantil, or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a
trustee, receiver, liquidator, síndico, visitador, conciliador, custodian or other similar official of it or any substantial part of its property, or shall consent to any such relief or to the appointment of or taking
possession by any such official in an involuntary case or other proceeding commenced against it, or shall make a general assignment for the benefit or creditors, or shall fail generally to pay its debts as they become due, or shall take any
corporate action to authorize any of the foregoing; 
 (h) an involuntary case or other proceeding shall be commenced against
Borrower, any of the Subsidiary Guarantors, or any U.S. Affiliate with assets in excess of $1,000,000 seeking liquidation, reorganization, concurso mercantil or other relief with respect to it or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, síndico, visitador, conciliador, custodian or other similar official of it or any substantial part of its
property, and such involuntary case or other proceeding shall remain undismissed and unstayed for a period of ninety (90) consecutive days; or an order for relief shall be entered against Borrower, any of the Subsidiary Guarantors or any U.S.
Affiliate with assets in excess of $1,000,000 under applicable bankruptcy or insolvency laws as now or hereafter in effect; 
 (i) any writ, execution, attachment or similar process shall be levied against all or any substantial part of the property of Borrower or any of the Subsidiary Guarantors in connection with any judgment exceeding US$500,000 (or its
equivalent in any other currency), except to the extent covered by insurance as to which a solvent and unaffiliated insurance company has acknowledged coverage, and shall remain unsatisfied, undischarged and in effect for a period of
thirty (30) consecutive days without a stay of execution, unless the same is adequately bonded or is being contested by appropriate proceedings properly instituted and diligently conducted and, in either case, such process is not being executed
against such property; 
 (j) (1) a Governmental Authority shall take any action, including a moratorium, having a material
adverse effect on (A) the schedule of payments of the Borrower or any Subsidiary Guarantor under this Agreement, any Promissory Note, the other Loan Documents or otherwise, or (B) the currency in which any Credit Party may pay its
obligations under this Agreement, the Promissory Notes, the other Loan Documents or otherwise, or (2) any Governmental Authority, agency or official shall nationalize, expropriate, seize or otherwise compulsorily acquire all or a substantial
part of the assets of Borrower or any of its Subsidiaries; provided, however, that the events or actions by a Governmental Authority, agency or official set forth in immediately preceding clauses (1) and (2) shall constitute
Events of Default only if such events or actions remain in effect for more than forty-five (45) consecutive days; 
  

 46 

 (k) Borrower or any of its Subsidiaries shall fail to pay within ten (10) days of
the due date thereof, amounts due IMSS (Social Security Mexican Institute), INFONAVIT (National Housing Fund Institute) and/or SAR (Retirement Savings System) if the aggregate of such amounts at any time equals or exceeds
US$100,000, unless the amounts due are being contested in good faith through appropriate proceedings; 
 (l) [RESERVED];

 (m) a Change of Control; 
 (n) [RESERVED]; 
 (o) any security interest and Lien purported to be created by
the Guaranty Trust, the Security Agreement, the Affiliate Guaranty and Security Agreement, the UK Security Documents or the Pledge Agreement shall cease to be in full force and effect, or shall cease (other than through the failure of the Agent to
take any actions within its control) to give the Agent, for the benefit of the Secured Parties, the Liens and security interests purported to be created and granted under such documents; 
 (p) all or any material part of the property of Borrower or any of its Subsidiaries shall be nationalized, expropriated or condemned, seized
or otherwise appropriated, or custody or control of such property or of Borrower or such Subsidiary shall be assumed by any Governmental Authority or any court of competent jurisdiction at the instance of any Governmental Authority, except where
contested in good faith by proper proceedings diligently pursued where a stay of enforcement is in effect; or 
 (q) any loss,
theft, damage or destruction of any item or items of Collateral or other property of Borrower or any of its Subsidiaries occurs in ether case, which would reasonably be expected to cause a Material Adverse Effect and is not adequately covered by
insurance; 
 then, and in every such event, the Agent may, and shall at the request of the Required Lenders, by notice to Borrower
(i) terminate the obligations of the Lenders to extend credit hereunder and they shall thereupon terminate; (ii) declare the Term Loans (together with accrued interest thereon) to be, and the Term Loans shall thereupon become, immediately
due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by Borrower; provided that in the case of any of the Events of Default specified in clause (g) or (h) without any
notice to Borrower or any other act by the Agent, the Lenders’ obligations to extend credit hereunder shall thereupon terminate and the Term Loans (together with accrued interest thereon) shall become immediately due and payable without
presentment, demand, protest or other notice of any kind, all of which are hereby waived by Borrower; and (iii) exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under any other Loan Document,
including the Guaranty Trust, the Security Agreement, the Pledge Agreement and, subject to the Intercreditor Agreement, the Affiliate Guaranty and Security Agreement and the UK Security Documents. Nothing contained in this Section 9.1
shall relieve Borrower of its obligation to make default interest payments in accordance with Section 2.8. 
  

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 9.2 Remedies Cumulative. No remedy, right or power conferred upon the Lender
hereunder or by applicable law is intended to be exclusive of any other remedy, right or power given hereunder or now or hereafter existing at law, in equity, or otherwise, and all such remedies, rights and powers shall be cumulative. 
 10. The Agent 
 10.1
Appointment and Duties. 
 (a) Appointment of Agent. Each Lender hereby appoints GE Capital (together with any
successor Agent pursuant to Section 10.9) as the Agent hereunder and authorizes the Agent to (i) execute and deliver the Loan Documents and accept delivery thereof on its behalf from any Credit Party, (ii) take such action on
its behalf and to exercise all rights, powers and remedies and perform the duties as are expressly delegated to the Agent under such Loan Documents and (iii) exercise such powers as are reasonably incidental thereto. 
 (b) Duties as Collateral and Disbursing Agent. Without limiting the generality of clause (a) above, the Agent shall have the
sole and exclusive right and authority (to the exclusion of the Lenders), and is hereby authorized, to (i) act as the disbursing and collecting agent for the Lenders with respect to all payments and collections arising in connection with the
Loan Documents (including in any proceeding described in Section 9.1(h) or any other bankruptcy, insolvency or similar proceeding), and each Person making any payment in connection with any Loan Document to any Secured Party is hereby
authorized to make such payment to the Agent, (ii) file and prove claims and file other documents necessary or desirable to allow the claims of the Secured Parties with respect to any Obligation in any proceeding described in
Section 9.1(h) or any other bankruptcy, insolvency or similar proceeding (but not to vote, consent or otherwise act on behalf of such Person), (iii) act as collateral agent for each Secured Party for purposes of the perfection of
all Liens created by such agreements and all other purposes stated therein, (iv) subject to the Guaranty Trust, manage, supervise and otherwise deal with the Collateral, (v) subject to the Guaranty Trust, take such other action as is
necessary or desirable to maintain the perfection and priority of the Liens created or purported to be created by the Loan Documents, (vi) except as may be otherwise specified in any Loan Document, exercise all remedies given to the Agent and
the other Secured Parties with respect to the Collateral, whether under the Loan Documents, any Requirement of Law or otherwise and (vii) execute any amendment, consent or waiver under the Loan Documents on behalf of any Lender that has
consented in writing to such amendment, consent or waiver. 
 (c) Limited Duties. Under the Loan Documents, the Agent
(i) is acting solely on behalf of the Lenders (except to the limited extent provided in Section 11.11(e) with respect to the Register), with duties that are entirely administrative in nature, notwithstanding the use of the defined
term “Agent”, the terms “agent”, “Agent” and “collateral agent” and similar terms in any Loan Document that to refer to the Agent, which terms are used for title purposes only, (ii) is not assuming any
obligation under any Loan Document other than as expressly set forth therein or any role as agent, fiduciary or trustee of or for any Lender or any other Person and (iii) shall

  

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have no implied functions, responsibilities, duties, obligations or other liabilities under any Loan Document, and each Lender hereby waives and agrees not to assert any claim against the Agent
based on the roles, duties and legal relationships expressly disclaimed in clauses (i) through (iii) above. 
 10.2
Binding Effect. Each Lender agrees that (i) any action taken by the Agent or the Required Lenders (or, if expressly required hereby, a greater proportion of the Lenders) in accordance with the provisions of the Loan Documents,
(ii) any action taken by the Agent in reliance upon the instructions of Required Lenders (or, where so required, such greater proportion) and (iii) the exercise by the Agent or the Required Lenders (or, where so required, such greater
proportion) of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all of the Secured Parties. 
 10.3 Use of Discretion. 
 (a) No Action without Instructions. The Agent shall not be required to exercise any discretion or take, or to omit to take, any action, including with respect to enforcement or collection, except
any action it is required to take or omit to take (i) under any Loan Document or (ii) pursuant to instructions from the Required Lenders (or, where expressly required by the terms of this Agreement, a greater proportion of the Lenders).

 (b) Right Not to Follow Certain Instructions. Notwithstanding clause (a) above, the Agent shall not be required
to take, or to omit to take, any action (i) unless, upon demand, the Agent receives an indemnification satisfactory to it from the Lenders (or, to the extent applicable and acceptable to the Agent, any other Person) against all Liabilities
that, by reason of such action or omission, may be imposed on, incurred by or asserted against the Agent or any Related Person thereof or (ii) that is, in the opinion of the Agent or its counsel, contrary to any Loan Document or applicable
Requirement of Law. 
 10.4 Delegation of Rights and Duties. The Agent may, upon any term or condition it specifies,
delegate or exercise any of its rights, powers and remedies under, and delegate or perform any of its duties or any other action with respect to, any Loan Document by or through any trustee, co-agent, employee, attorney-in-fact and any other Person
(including any Secured Party). Any such Person shall benefit from this Article 10 to the extent provided by the Agent. 
 10.5 Reliance and Liability. 
 (a) The Agent may, without incurring any liability hereunder, (i) treat the
payee of any Promissory Note as its holder until such Promissory Note has been assigned in accordance with Section 11.11, (ii) rely on the Register to the extent set forth in Section 11.11(e), (iii) consult with any
of its Related Persons and, whether or not selected by it, any other advisors, accountants and other experts (including advisors to, and accountants and experts engaged by, any Credit Party) and (iv) rely and act upon any document and
information (including those transmitted by Electronic Transmission) and any telephone message or conversation, in each case believed by it to be genuine and transmitted, signed or otherwise authenticated by the appropriate parties. 
  

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 (b) None of the Agent and its Related Persons shall be liable for any action taken or
omitted to be taken by any of them under or in connection with any Loan Document, and each Lender, Borrower and each other Credit Party hereby waive and shall not assert (and Borrower shall cause each other Credit Party to waive and agree not to
assert) any right, claim or cause of action based thereon, except to the extent of liabilities resulting primarily from the gross negligence or willful misconduct of the Agent or, as the case may be, such Related Person (each as determined in a
final, non-appealable judgment by a court of competent jurisdiction) in connection with the duties expressly set forth herein. Without limiting the foregoing, the Agent: 
 (i) shall not be responsible or otherwise incur liability for any action or omission taken in reliance upon the instructions of the Required Lenders or for the actions or omissions of any of its Related
Persons selected with reasonable care (other than employees, officers and directors of the Agent, when acting on behalf of the Agent); 
 (ii) shall not be responsible to any Lender or other Person for the due execution, legality, validity, enforceability, effectiveness, genuineness, sufficiency or value of, or the attachment, perfection or
priority of any Lien created or purported to be created under or in connection with, any Loan Document; 
 (iii) makes no
warranty or representation, and shall not be responsible, to any Lender or other Person for any statement, document, information, representation or warranty made or furnished by or on behalf of any Credit Party or any Related Person of any Credit
Party in connection with any Loan Document or any transaction contemplated therein or any other document or information with respect to any Credit Party, whether or not transmitted or (except for documents expressly required under any Loan Document
to be transmitted to the Lenders) omitted to be transmitted by the Agent, including as to completeness, accuracy, scope or adequacy thereof, or for the scope, nature or results of any due diligence performed by the Agent in connection with the Loan
Documents; and 
 (iv) shall not have any duty to ascertain or to inquire as to the performance or observance of any provision
of any Loan Document, whether any condition set forth in any Loan Document is satisfied or waived, as to the financial condition of any Credit Party or as to the existence or continuation or possible occurrence or continuation of any Default or
Event of Default and shall not be deemed to have notice or knowledge of such occurrence or continuation unless it has received a notice from Borrower or any Lender describing such Default or Event of Default clearly labeled “notice of
default” (in which case the Agent shall promptly give notice of such receipt to all Lenders); 
 and, for each of the items set forth in
clauses (i) through (iv) above, each Lender and Borrower hereby waives and agrees not to assert (and Borrower shall cause each other Credit Party to waive and agree not to assert) any right, claim or cause of action it might have against
the Agent based thereon. 
 10.6 Agent Individually. The Agent and its Affiliates may make loans and other extensions of
credit to, acquire Equity Interests of, or engage in any kind of business with, any Credit Party or Affiliate thereof as though it were not acting as Agent and may receive separate fees and other payments therefor. To the extent the Agent or any of
its Affiliates makes any

  

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Loan or otherwise becomes a Lender hereunder, it shall have and may exercise the same rights and powers hereunder and shall be subject to the same obligations and liabilities as any other Lender
and the terms “Lender”, “Required Lender”, and any similar terms shall, except where otherwise expressly provided in any Loan Document, include, without limitation, the Agent or such Affiliate, as the case may be, in its
individual capacity as Lender or as one of the Required Lenders. 
 10.7 Lender Credit Decision. Each Lender acknowledges
that it shall, independently and without reliance upon the Agent, any Lender or any of their Related Persons or upon any document (including any offering and disclosure materials in connection with the syndication of the Loans) solely or in part
because such document was transmitted by the Agent or any of its Related Persons, conduct its own independent investigation of the financial condition and affairs of each Credit Party and make and continue to make its own credit decisions in
connection with entering into, and taking or not taking any action under, any Loan Document or with respect to any transaction contemplated in any Loan Document, in each case based on such documents and information as it shall deem appropriate.
Except for documents expressly required by any Loan Document to be transmitted by the Agent to the Lenders, the Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business,
prospects, operations, property, financial and other condition or creditworthiness of any Credit Party or any Affiliate of any Credit Party that may come in to the possession of the Agent or any of its Related Persons. 
 10.8 Expenses; Indemnities. 
 (a) Each Lender agrees to reimburse the Agent and each of its Related Persons (to the extent not reimbursed by any Credit Party) promptly upon demand, severably and ratably, of any costs and expenses
(including fees, charges and disbursements of financial, legal and other advisors) that may be incurred by the Agent or any of its Related Persons in connection with the preparation, syndication, execution, delivery, administration, modification,
consent, waiver or enforcement (whether through negotiations, through any work-out, bankruptcy, restructuring or other legal or other proceeding or otherwise) of, or legal advice in respect of its rights or responsibilities under, any Loan Document.

 (b) Each Lender further agrees to indemnify the Agent and each of its Related Persons (to the extent not reimbursed by any
Credit Party), severably and ratably, from and against Liabilities (including taxes, interests and penalties imposed for not properly withholding or backup withholding on payments made to on or for the account of any Lender) that may be imposed on,
incurred by or asserted against the Agent or any of its Related Persons in any matter relating to or arising out of, in connection with or as a result of any Loan Document, any Related Document or any other act, event or transaction related,
contemplated in or attendant to any such document, or, in each case, any action taken or omitted to be taken by the Agent or any of its Related Persons under or with respect to any of the foregoing; provided, however, that no Lender shall be liable
to the Agent or any of its Related Persons to the extent such liability has resulted primarily from the gross negligence or willful misconduct of the Agent or, as the case may be, such Related Person, as determined by a court of competent
jurisdiction in a final non-appealable judgment or order. 
  

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 10.9 Resignation of Agent. 
 (a) The Agent may resign at any time by delivering notice of such resignation to the Lenders and Borrower, effective 30 days after the date
of the notice. If the Agent delivers any such notice, the Required Lenders shall have the right to appoint a successor Agent. If, within 30 days after the retiring Agent having given notice of resignation, no successor Agent has been appointed by
the Required Lenders that has accepted such appointment, then the retiring Agent may, on behalf of the Lenders, appoint a successor Agent from among the Lenders. Each appointment under this clause (a) shall be subject to the prior consent of
Borrower, which may not be unreasonably withheld but shall not be required during the continuance of an Event of Default. 
 (b)
Effective immediately upon its resignation, (i) the retiring Agent shall be discharged from its duties and obligations under the Loan Documents, (ii) the Lenders shall assume and perform all of the duties of the Agent until a successor
Agent shall have accepted a valid appointment hereunder, (iii) the retiring Agent and its Related Persons shall no longer have the benefit of any provision of any Loan Document other than with respect to any actions taken or omitted to be taken
while such retiring Agent was, or because such Agent had been, validly acting as Agent under the Loan Documents and (iv) subject to its rights under Section 10.3, the retiring Agent shall take such action as may be reasonably
necessary to assign to the successor Agent its rights as Agent under the Loan Documents. Effective immediately upon its acceptance of a valid appointment as Agent, a successor Agent shall succeed to, and become vested with, all the rights, powers,
privileges and duties of the retiring Agent under the Loan Documents. 
 10.10 Release of Collateral or Guarantors Each
Lender hereby consents to the release and hereby directs the Agent to release (or, in the case of clause (b)(ii) below, release or subordinate) the following: 
 (a) any Guarantor from its guaranty of any Obligation if all of the Equity Interests of such Guarantor owned by any Credit Party are sold or transferred in a transaction permitted under the Loan Documents
(including pursuant to a waiver or consent), to the extent that, after giving effect to such transaction, such Guarantor would not be required to guaranty any Obligations pursuant to Section 6.12 or any other Loan Document; and

 (b) any Lien held by the Agent for the benefit of the Secured Parties against (i) any Collateral that is sold,
transferred, conveyed or otherwise disposed of by a Credit Party in a transaction permitted by the Loan Documents (including pursuant to a valid waiver or consent), to the extent all Liens required to be granted in such Collateral pursuant to
Section 6.16 after giving effect to such transaction have been granted, (ii) any property subject to a Lien permitted under clause (h) of the definition of Permitted Encumbrances and (iii) all of the Collateral and all
Credit Parties, upon (A) payment and satisfaction in full of all Loans and all other Obligations under the Loan Documents and all interest thereon, that the Agent has been notified in writing are then due and payable and (B) to the extent
requested by the Agent, receipt by Agent and the Secured Parties of liability releases from the Credit Parties each in form and substance acceptable to the Agent. 
  

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 Each Lender hereby directs the Agent, and the Agent hereby agrees, upon receipt of five (5) days
advance notice from the Borrower, or such shorter period as may be agreed by the Agent, to execute and deliver or file such documents and to perform other actions reasonably necessary to release the guaranties and Liens when and as directed in this
Section 10.10. 
 11. Miscellaneous 
 11.1 No Waiver, Amendment, Optional Notice. 
 (a) No waiver of any Default
or Event of Default shall be deemed to be a waiver of any other Default or Event of Default. No failure to exercise or delay in exercising any right or power under any Loan Document shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power preclude any further or other exercise thereof or the exercise of any other right or power. 
 (b) No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent with respect to any departure by any Credit Party therefrom, shall be effective unless the same shall be in writing and signed by the
Required Lenders (or by the Agent with the consent of the Required Lenders), the Borrower and acknowledged by the Agent, and then such waiver shall be effective only in the specific instance and for the specific purpose for which given; provided,
however, that no such waiver, amendment, or consent shall, unless in writing and signed by all the Lenders directly affected thereby (or by the Agent with the consent of all the Lenders directly affected thereby) (in addition to the Required Lenders
or the Agent with the consent of the Required Lenders), the Borrower and acknowledged by the Agent, do any of the following: 
 (i) postpone or delay any date fixed for, or waive, any scheduled installment of principal or any payment of interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document; 
 (ii) reduce the principal of, or the rate of interest specified herein or the amount of interest payable in cash specified herein on any
Loan, or of any fees or other amounts payable hereunder or under any other Loan Document; 
 (iii) change the percentage of the
aggregate unpaid principal amount of the Loans which shall be required for the Lenders or any of them to take any action hereunder; 
 (iv) amend this Section 11.1 or the definition of Required Lenders or any provision providing for consent or other action by all Lenders; or 
 (v) discharge any Credit Party from its respective payment Obligations under the Loan Documents, or release all or substantially all of the Collateral, except as otherwise may be provided in this
Agreement or the other Loan Documents; 
 it being agreed that all Lenders shall be deemed to be directly affected by an amendment or waiver of
the type described in the preceding clauses (iii), (iv) and (v). 
  

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 (c) No amendment, waiver or consent shall, unless in writing and signed by the Agent in
addition to the Required Lenders or all the Lenders directly affected thereby, as the case may be (or by the Agent with the consent of the Required Lenders or all the Lenders directly affected thereby, as the case may be), affect the rights or
duties of the Agent under this Agreement or any other Loan Document. 
 (d) Notwithstanding anything to the contrary contained
in this Section 11.1, the Agent may amend Schedule 1.19 to reflect assignments entered into pursuant to Section 11.11. 
 (e) No optional notice to or demand on Borrower, or any other Person shall entitle Borrower or such other Person to any other or further notice or demand in similar or other circumstances. 
 11.2 Notices; Electronic Transmission. 
 (a) Notices. 
 (i) Addresses. All notices,
demands, requests, directions and other communications required or expressly authorized to be made by this Agreement shall, whether or not specified to be in writing but unless otherwise expressly specified to be given by any other means, be given
in writing or by electronic mail (if such electronic transmission includes an attachment that may be posted) and (A) addressed to the address set forth on the applicable signature page hereto, (B) posted to Intralinks® (to the extent such system is available and set up by or at the direction of the Agent prior to posting) in an
appropriate location by uploading such notice, demand, request, direction or other communication to www.intralinks.com, faxing it to 866-545-6600 with an appropriate bar-code fax coversheet or using such other means of posting to
Intralinks® as may be available and reasonably acceptable to the Agent prior to such posting, (C) posted to
any other E-System set up by or at the direction of Agent or (D) addressed to such other address as shall be notified in writing (1) in the case of the Borrower and the Agent, to the other parties hereto and (2) in the case of all
other parties, to the Borrower and the Agent. 
 (ii) Effectiveness. All communications described in clause
(i) above and all other notices, demands, requests and other communications made in connection with this Agreement shall be effective and be deemed to have been received (A) if delivered by hand, upon personal delivery, (B) if
delivered by overnight courier service, 1 Business Day after delivery to such courier service, (C) if delivered by mail, when deposited in the mails, (D) if delivered by facsimile (other than to post to an E-System pursuant to clause
(i)(B) or (i)(C) above), upon sender’s receipt of confirmation of proper transmission, and (E) if delivered by posting to any E-System, on the later of the date of such posting and the date access to such posting is given to the recipient
thereof in accordance with the standard procedures applicable to such E-System; provided, however, that no communications to Agent pursuant to Article 2 shall be effective until received by Agent. 
 (iii) Each Lender shall notify the Agent in writing of any changes in the address to which notices to such Lender should be directed, of
payment instructions in respect of all payments to be made to it hereunder and of such other administrative information as the Agent shall reasonably request. 
  

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	(b)	Electronic Transmissions. 

 (i) Authorization. Subject to the provisions of Section 11.2(a)(i), each of Agent, Lenders, each Credit Party and each of their Related Persons, is authorized (but not required) to transmit, post or otherwise make or
communicate, in its sole discretion, Electronic Transmissions in connection with any Loan Document and the transactions contemplated therein. Each Credit Party and each Secured Party hereto acknowledges and agrees that the use of Electronic
Transmissions is not necessarily secure and that there are risks associated with such use, including risks of interception, disclosure and abuse and each indicates it assumes and accepts such risks by hereby authorizing the transmission of
Electronic Transmissions. 
 (ii) Signatures. Subject to the provisions of Section 11.2(a)(i), (A)(1) no posting to
any E-System shall be denied legal effect merely because it is made electronically, (2) each E-Signature on any such posting shall be deemed sufficient to satisfy any requirement for a “signature” and (3) each such posting shall
be deemed sufficient to satisfy any requirement for a “writing”, in each case including pursuant to any Loan Document, any applicable provision of the Code, the federal Uniform Electronic Transactions Act, the Electronic Signatures in
Global and National Commerce Act and any substantive or procedural Requirement of Law governing such subject matter, (B) each such posting that is not readily capable of bearing either a signature or a reproduction of a signature may be signed,
and shall be deemed signed, by attaching to, or logically associating with such posting, an E-Signature, upon which Agent, each Secured Party and each Credit Party may rely and assume the authenticity thereof, (C) each such posting containing a
signature, a reproduction of a signature or an E-Signature shall, for all intents and purposes, have the same effect and weight as a signed paper original and (D) each party hereto or beneficiary hereto agrees not to contest the validity or
enforceability of any posting on any E-System or E-Signature on any such posting under the provisions of any applicable Requirement of Law requiring certain documents to be in writing or signed; provided, however, that nothing herein
shall limit such party’s or beneficiary’s right to contest whether any posting to any E-System or E-Signature has been altered after transmission. 
 (iii) Separate Agreements. All uses of an E-System shall be governed by and subject to, in addition to this Section 11.2, separate terms and conditions posted or referenced in such
E-System and related contractual obligations executed by Agent and Credit Parties in connection with the use of such E-System. 
 (iv) LIMITATION OF LIABILITY. ALL E-SYSTEMS AND ELECTRONIC TRANSMISSIONS SHALL BE PROVIDED “AS IS” AND “AS AVAILABLE”. NONE OF AGENT, ANY LENDER OR ANY OF THEIR RELATED PERSONS WARRANTS THE ACCURACY, ADEQUACY OR
COMPLETENESS OF ANY E-SYSTEMS OR ELECTRONIC TRANSMISSION AND DISCLAIMS ALL LIABILITY FOR ERRORS OR OMISSIONS THEREIN. NO WARRANTY OF ANY KIND IS MADE BY AGENT, ANY LENDER OR ANY OF THEIR RELATED PERSONS IN CONNECTION WITH ANY E-SYSTEMS OR ELECTRONIC
COMMUNICATION, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD-PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS. Each of Borrower, each other Credit Party executing any Loan Document
and each Secured Party agrees that Agent has no responsibility for maintaining or providing any equipment, software, services or any testing required in connection with any Electronic Transmission or otherwise required for any E-System. 

 

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 11.3 Governing Law; Jurisdiction; Waiver. 
 (a) This Agreement shall be governed by and construed in accordance with the law of the State of New York (without giving effect to the
conflict of laws principles thereof, other than Section 5-1401 of the New York General Obligations Law). 
 (b) Each of the
parties hereto hereby expressly, irrevocably and unconditionally: (i) agrees that any legal proceeding against it arising out of or in connection with this Agreement, any other Loan Document (other than any Promissory Note or the Guaranty
Trust), or the Term Loans shall be brought in the competent courts of the State of New York or in the United States District Court for the Southern District of New York, both located in New York City, New York (collectively, the “New York
Courts”), (ii) expressly submits to the jurisdiction of the New York Courts, (iii) agrees and consents that service of process may be made upon it in any proceeding arising out of this Agreement, any other Loan Document (other
than any Promissory Note, the Guaranty Trust or the Pledge Agreement), or the Term Loans by service of process as provided by New York law; (iv) waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to
the laying of venue of any suit, action or proceeding arising out of this Agreement, any other Loan Document (other than any Promissory Notes, the Guaranty Trust or the Pledge Agreement), or the Term Loans in the New York Courts; (v) waives, to
the fullest extent permitted by law, any claim that any such suit, action or proceeding in any New York Court has been brought in an inconvenient forum; and (vi) to the fullest extent permitted by law, waives the right to object, with respect
to such proceedings, that such court does not have jurisdiction over such party. 
 (c) Borrower (i) irrevocably appoints
CT Corporation System, which is presently located at 111 Eighth Avenue, New York, New York 10011, United States, as its agent to receive, on behalf of itself and its properties and revenues, service of process in the United States in connection with
any such suit, action or proceeding, and (ii) irrevocably consents to the service of process out of any of the New York Courts in any such suit, action or proceeding by the mailing of copies thereof by courier service, return receipt requested,
postage prepaid, to it at its addresses set forth herein. 
 (d) BORROWER HEREBY IRREVOCABLY WAIVES ANY RIGHTS IT MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED UPON, OR ARISING OUT OF, THIS AGREEMENT, THE PROMISSORY NOTES, ANY OTHER LOAN DOCUMENT OR THE TERM LOANS, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT OR ACTIONS OF THE AGENT, ANY LENDER OR
BORROWER RELATING HERETO. 
 (e) Waiver of Immunities. To the extent permitted by applicable law, if Borrower has or
hereafter may acquire any immunity (sovereign or otherwise) from any legal action, suit or proceeding, jurisdiction of any court or set-off or any legal process (whether service or notice, attachment prior to judgment, attachment in aid of execution
of judgment, execution of judgment or otherwise) with respect to itself or any of its property, Borrower hereby irrevocably waives

  

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and agrees not to plead or claim such immunity in respect of its Obligations under this Agreement, any Promissory Note or any other Loan Document. Borrower agrees that the waivers set forth above
shall have the force and effect to the fullest extent permitted under the Foreign Sovereign Immunities Act of 1976 of the United States of America and are intended to be irrevocable for purposes of such Act. 
 11.4 Survival, Parties Bound; Reinstatement. All representations, warranties, covenants and agreements made by or on behalf of any
Credit Party, the Agent or any Lender in connection herewith (other than Section 11.17) shall (a) survive, as of the date each is made, the execution and delivery of the Loan Documents; (b) not be affected by an investigation
made by any Person; and (c) bind each of the parties hereto and their respective successors, trustees, receivers and assigns and inure to the benefit of the parties hereto and their respective successors and permitted assigns. This Agreement
shall terminate upon the full and final payment in cash of all the Obligations. Notwithstanding anything contained in the preceding sentence to the contrary, this Agreement shall remain in full force and effect and continue to be effective should
any petition be filed by or against Borrower for liquidation, concurso mercantil, or reorganization, should Borrower become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver, trustee,
liquidator, síndico, conciliador, visitador, custodian or other similar official be appointed for all or any significant part of Borrower’s assets, and shall continue to be effective or to be reinstated, as the case
may be, if at any time payment and performance of the Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Obligations, whether as a
“voidable preference” (or its equivalent under Mexican law), “fraudulent conveyance” (or its equivalent under Mexican law), or otherwise, all as though such payment or performance had not been made. In the event that any payment,
or any part thereof, is rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned. 
 11.5 Counterparts. This Agreement may be executed in several identical counterparts, and by the parties hereto on separate
counterparts, and each counterpart, when so executed and delivered, shall constitute an original instrument, and all such separate counterparts shall constitute but one and the same instrument. Delivery of an executed signature page to this
Agreement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Agreement. 
 11.6 Language. Each notice, communication or other document delivered under the Loan Documents by any Credit Party on its behalf or on behalf of any of its Subsidiaries, unless submitted in the English language, shall be accompanied
by an English translation thereof and the English version shall govern in the event of any conflict with the non-English version thereof; provided that if any such conflict should arise with respect to Mexican governmental authorizations or
approvals, or any other Loan Document originally executed in Mexico, in connection with any proceeding in Mexico, then the Spanish language version thereof shall govern. 
 11.7 Captions. The headings and captions appearing on the Loan Documents have been included solely for convenience of reference and shall not be considered in construing the Loan Documents.

  

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 11.8 Expenses. Whether or not the transactions contemplated by this Agreement shall
be consummated, Borrower shall bear all reasonable expenses of the Agent and the Lenders (including, without limitation, travel expenses and fees and expenses of attorneys and other professionals) in connection with the (i) negotiation,
preparation, execution, filing and recording of the Loan Documents and the making of the Term Loans, (ii) the negotiation, preparation, execution, filing or recording of any amendments to the Loan Documents and (iii) the maintenance of the
Guaranty Trust and for other costs and expenses (including, without limitation, fees to the Trustee, travel expenses and audit and appraisal costs) incurred in connection with the valuation of the Collateral including the determination of the NFLV
and FMV. Borrower shall further bear all expenses of the Agent and the Lenders (including, without limitation, travel expenses and reasonable fees and expenses of attorneys and other professionals) in connection with the (x) enforcing,
refiling, re-recording, modification, supplementing and consents and waivers relating to any of the Loan Documents, and (y) the servicing and collection of the Term Loans and other amounts due under any of the Loan Documents after the
occurrence of an Event of Default. The obligations of Borrower under this Section 11.8 shall survive the termination of this Agreement. 
 11.9 Entire Agreement. This Agreement, the other Loan Documents and the Schedules or Exhibits hereto embody the entire agreement between the parties with respect to the transactions contemplated
herein and supersede all prior proposals, agreements and undertakings relating to the subject matter hereof. 
 11.10
Severability. If any provision of any Loan Document shall be judged invalid, illegal or unenforceable in any respect under any applicable law, the validity, legality and enforceability of the remaining provisions thereof shall not be affected
or impaired thereby. 
 11.11 Assignment; Participations. 
 (a) Borrower shall not, without the prior written consent of the Lenders, be entitled to assign any Loan Document or any of its rights or
Obligations thereunder to any other Person and any purported assignment thereof shall be deemed null and void and of no force or effect. 
 (b) Each Lender may at any time sell, transfer, negotiate or assign (a “Sale”) to one or more Registered Entities or a Mexican Person (but excluding any entity which is (x) the
Borrower or any Affiliate of the Borrower or (y) a direct competitor of Borrower, Cone Denim LLC or their respective Affiliates) or a Mexican bank or Mexican financial institution (each an “Assignee”) all, or any ratable part
of all, of such Lender’s Term Loans, Promissory Note and the other rights and Obligations of such Lender hereunder; provided, however, that the aggregate outstanding principal amount (determined as of the effective date of the
applicable Assignment) of the Term Loans subject to any such Sale shall be in a minimum amount of $1,000,000, unless such Sale is of the assignor’s (together with its Affiliates) entire interest in the Term Loans or is made with the prior
consent of the Borrower and the Agent. The parties to each such Sale shall execute and deliver to the Agent (which shall keep a copy thereof) an Assignment and payment by the Assignee of an assignment fee in the amount of $3,500 (unless waived by
Agent in its sole discretion). Upon receipt of all the foregoing, from and after the effective date specified in such Assignment, the Agent shall record or cause to be recorded in the Register the information

  

 58 

 
contained in such Assignment. Effective upon the entry of such record in the Register, (i) such Assignee shall become a party hereto and, to the extent that rights and obligations under the
Loan Documents have been assigned to such Assignee pursuant to such Assignment, shall have the rights and obligations of a Lender and (ii) the assignor thereunder shall, to the extent that rights and obligations under this Agreement have been
assigned by it pursuant to such Assignment, relinquish its rights (except for those surviving the payment in full of the Obligations) and be released from its obligations under the Loan Documents, other than those relating to events or circumstances
occurring prior to such assignment (and, in the case of an Assignment covering all or the remaining portion of an assigning Lender’s rights and obligations under the Loan Documents, such Lender shall cease to be a party hereto). Within
five (5) Business Days after its receipt of notice from the Agent that a Lender has assigned all or part of its interest in the Term Loans, Borrower shall execute and deliver to the assigning Lender or the Assignee, as applicable, a new
Promissory Note evidencing the Assignee’s assigned portion of the Term Loans and (i) if the assigning Lender has retained a portion of the Term Loans, a replacement Promissory Note, in the principal amount of the portion of the Term Loans
retained by the assigning Lender (such Promissory Note to be in exchange for, but not in payment of, the Promissory Note held by the assigning Lender), or (ii) if the assigning Lender assigns its entire interest in the Term Loans, such Lender
shall deliver the original Promissory Note evidencing such Term Loans to Borrower. 
 (c) In addition to the other rights
provided in this Section 11.11 each Lender may grant a security interest in, or otherwise assign as collateral, any of its rights under this Agreement, whether now owned or hereafter acquired (including rights to payments of principal or
interest on the Term Loans), to (A) any federal reserve bank (pursuant to Regulation A of the Federal Reserve Board), without notice to the Agent or (B) any holder of, or trustee for the benefit of the holders of, such Lender’s
Indebtedness or equity securities, by notice to the Agent; provided, however, that no such holder or trustee, whether because of such grant or assignment or any foreclosure thereon (unless such foreclosure is made through an assignment
in accordance with clause (b) above), shall be entitled to any rights of such Lender hereunder and no such Lender shall be relieved of any of its obligations hereunder. 
 (d) Each Lender may at any time sell to any Person (other than a natural person or any Affiliate of Borrower) (a
“Participant”) participating interests in such Lender’s Term Loans, and the other interests of such Lender hereunder and under the other Loan Documents. In the case of any such participation, the Participant shall be entitled
to the benefit of Sections 2.12, 2.14, 11.12, 11.13 and 11.14 as though it also were a Lender hereunder, and if amounts outstanding under this Agreement are due and unpaid, or shall have been declared or shall
have become due and payable upon the occurrence of an Event of Default, each Participant shall be deemed to have the right of set-off in respect of its participating interest in amounts owing under this Agreement to the same extent as if the amount
of its participating interest were owing directly to it as if it were a Lender under this Agreement. 
 (e) The Agent, acting as
agent of the Borrower solely for tax purposes and solely with respect to the actions described in this Section 11.11(e), shall establish and maintain at its address referred to in Section 11.2 (or at such other address as the
Agent may notify the Borrower) (A) a record of ownership (the “Register”) in which the Agent agrees to register by book entry the interests (including any rights to receive payment hereunder) of the Agent and

  

 59 

 
each Lender in the Term Loans and any assignment of any such interest and (B) accounts in the Register in accordance with its usual practice in which it shall record (1) the names and
addresses of the Lenders (and each change thereto pursuant to Section 11.11), (2) the amount of each Loan, (3) the LIBOR Period applicable to each Loan, (4) the amount of any principal or interest due and payable or paid,
and (5) any other payment received by the Agent from Borrower and its application to the Obligations. 
 11.12
Indemnification. Whether or not the transactions contemplated hereby are consummated, Borrower shall indemnify, defend and hold the Agent, each Lender and each of their respective officers, directors, employees, counsel, agents and
attorneys-in-fact (each, an “Indemnified Person”) harmless from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, charges, expenses and disbursements (including, without
limitation, reasonable attorney fees) of any kind or nature whatsoever which may at any time (including at any time following repayment of the Term Loans) be imposed on, incurred by or asserted against any such Person in any way relating to or
arising out of this Agreement or any document contemplated by or referred to herein (including, without limitation, the other Loan Documents), or the transactions contemplated hereby, or any action taken or omitted by any such Person under or in
connection with any of the foregoing, including with respect to any investigation, litigation or proceeding (including any insolvency proceeding or appellate proceeding) related to or arising out of this Agreement, the other Loan Documents or the
Term Loans or the use of the proceeds thereof, whether or not any Indemnified Person is a party thereto (all the foregoing, collectively, the “Indemnified Liabilities”); provided, that Borrower shall have no obligation
hereunder to any Indemnified Person with respect to Indemnified Liabilities resulting solely from the gross negligence or willful misconduct of such Indemnified Person. The agreements and obligations under this Section 11.12 shall
survive the payment of all other Obligations. 
 11.13 Indemnity Regarding Use of Real Property. Without limiting the
generality of Section 11.12, Borrower shall indemnify and hold each Indemnified Person (including, for purposes of this Section, the Trustee) harmless from and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, charges, expenses and disbursements (including, without limitation, reasonable attorney fees) of any kind or nature whatsoever which may at any time (including at any time following repayment of the Term Loans) be
imposed on, incurred by or asserted against any such Person in any way relating to or arising out of or resulting from the ownership, operation, or use of any real property (including the Collateral) of Borrower or any of its Subsidiaries, whether
such claims are based on theories of derivative liability, comparative negligence or otherwise. The agreements in this Section 11.13 shall survive payment of all other Obligations. 
 11.14 Indemnity Regarding Hazardous Substances. Without limiting the generality of Sections 11.12 and 11.13, Borrower
shall indemnify and hold each Indemnified Person (including, for purposes of this Section, the Trustee) harmless from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, charges, expenses
and disbursements (including, without limitation, reasonable attorney fees) of any kind or nature whatsoever which may at any time (including at any time following repayment of the Term Loans) be imposed on, incurred by or asserted against any such
Person in any way relating to or arising out of or resulting from any of the following: 
 (a) Any Hazardous Substance being
present at any time, in or around any part of any real property (including the Collateral) of Borrower or its Subsidiaries, or in the soil, groundwater or soil vapor on or under such property, including those incurred in connection with any
investigation of site conditions or any clean-up, remedial, removal or restoration work, or any resulting damages or injuries to the person or property of any third parties or to any natural resources. 
  

 60 

 (b) Any use, generation, manufacture, production, storage, release, threatened release,
discharge, disposal or presence of a Hazardous Substance on any property currently or formerly owned, operated or utilized by Borrower, Borrower’s Subsidiaries or their respective shareholders. This indemnity will apply whether the Hazardous
Substance is on, under or about any of Borrower’s or its Subsidiaries’ property or operations or property leased to Borrower or such Subsidiary, whether or not such property has been taken by the Agent as collateral. 
 11.15 Judgment Currency. The obligation of Borrower hereunder to make payments in Dollars shall not be discharged or satisfied by any
tender or recovery pursuant to any judgment expressed in or converted into any currency other than Dollars except to the extent to which such tender or recovery shall result in the effective receipt by the Agent and the Lenders of the full amount of
Dollars expressed to be payable hereunder, and Borrower agrees as an obligation independent of any Obligation hereunder, to indemnify the Agent and the Lenders (as an alternative or additional cause of action) for the amount (if any) by which such
effective receipt shall be less than the full amount of Dollars expressed to be payable hereunder and such obligation to indemnify shall not be affected by judgment being obtained for any other sums due hereunder. 
 11.16 No Strict Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement. 
 11.17 Confidentiality. The Agent and the Lenders agree to keep
confidential any information furnished or made available to any of them by any Credit Party pursuant to this Agreement; provided that nothing herein shall prevent the Agent or any Lender from disclosing such information (a) to any of its
Affiliates, or any officer, director, employee, agent, or advisor of the Agent or such Lender or any of its Affiliates whom it determines has a reasonable need to be furnished such information and who agrees to be bound by the terms of this
Section 11.17, (b) to any other Person who agrees to be bound by the terms of this Section 11.17 if such disclosure is reasonably incidental to the administration of the Term Loans, (c) as required by any law, rule,
or regulation, (d) upon a request or requirement (orally or in writing, by interrogatory, court order, subpoena, administrative proceeding, civil investigatory demand, or any similar legal process) of any court or administrative agency,
governmental authority or civil litigant (the Agent or such Lender, however, shall to the extent permitted by law and as promptly as practicable, notify the applicable Credit Party prior to such disclosure so that such Credit Party may seek at such
Credit Party’s sole expense a protective order or other appropriate remedy), (e) upon the request or demand of any regulatory agency or authority, (f) that is or becomes available to the public or that is or becomes available to the
Agent or such Lender other than as a

  

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result of a disclosure by the Agent or such Lender prohibited by this Agreement, (g) to the extent necessary in connection with the exercise of any remedy under this Agreement or any of the
Loan Documents, and (h) subject to provisions substantially similar to those contained in this Section, to any actual or proposed assignee. 
 11.18 Set-off; Sharing of Payments. 
 (a) Right of Setoff. Subject
to the Intercreditor Agreement, each of the Agent, each Lender and each Affiliate (including each branch office thereof) of any of them is hereby authorized, without notice or demand (each of which is hereby waived by each Credit Party), at any time
and from time to time during the continuance of any Event of Default and to the fullest extent permitted by applicable Requirements of Law, to set off and apply any and all deposits (whether general or special, time or demand, provisional or final)
at any time held and other Indebtedness, claims or other obligations at any time owing by the Agent, such Lender or any of their respective Affiliates to or for the credit or the account of Borrower or any other Credit Party against any Obligation
of Borrower or any other Credit Party now or hereafter existing, whether or not any demand was made under any Loan Document with respect to such Obligation and even though such Obligation may be unmatured. Each of the Agent and each Lender agrees
promptly to notify Borrower and the Agent after any such setoff and application made by such Lender or its Affiliates; provided, however, that the failure to give such notice shall not affect the validity of such setoff and application. The rights
under this Section 11.18 are in addition to any other rights and remedies (including other rights of setoff) that the Agent, the Lenders, their Affiliates and the other Secured Parties, may have. 
 (b) Sharing of Payments, Etc. If any Lender, directly or through an Affiliate or branch office thereof, obtains any payment of any
Obligation of any Credit Party (whether voluntary, involuntary or through the exercise of any right of setoff or the receipt of any Collateral or “proceeds” (as defined under the Code) of Collateral) and such payment exceeds the amount
such Lender would have been entitled to receive if all payments had gone to, and been distributed by, the Agent in accordance with the provisions of the Loan Documents, such Lender shall purchase for cash from other Lenders such participations in
their Obligations as necessary for such Lender to share such excess payment with such Lenders to ensure such payment is applied as though it had been received by the Agent and applied in accordance with this Agreement (or, if such application would
then be at the discretion of Borrower, applied to repay the Obligations in accordance herewith); provided, however, that (a) if such payment is rescinded or otherwise recovered from such Lender in whole or in part, such purchase shall be
rescinded and the purchase price therefor shall be returned to such Lender without interest and (b) such Lender shall, to the fullest extent permitted by applicable Requirements of Law, be able to exercise all its rights of payment (including
the right of setoff) with respect to such participation as fully as if such Lender were the direct creditor of the applicable Credit Party in the amount of such participation. 
 11.19 No Third Parties Benefited This Agreement is made and entered into for the sole protection and legal benefit of Borrower, the
Lenders, the Agent and, subject to the provisions of Section 10.11 hereof, each other Secured Party, and their permitted successors and assigns, and no other Person shall be a direct or indirect legal beneficiary of, or have any direct
or indirect cause of action or claim in connection with, this Agreement or any of the other Loan Documents. Neither the Agent nor any Lender shall have any obligation to any Person not a party to this Agreement or the other Loan Documents.

  

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 11.20 Lender-Creditor Relationship The relationship between Agent and each Lender, on
the one hand, and the Credit Parties, on the other hand, is solely that of lender and creditor. No Secured Party has any fiduciary relationship or duty to any Credit Party arising out of or in connection with, and there is no agency, tenancy or
joint venture relationship between the Secured Parties and the Credit Parties by virtue of, any Loan Document or any transaction contemplated therein. 
 [Signature pages to follow.] 
  

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 IN WITNESS WHEREOF, the duly authorized representatives of the parties hereto have executed
this Agreement as of the day and year first above written. 
  

			
	BURLINGTON MORELOS, S.A. DE C.V.
	as Borrower
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	By:	 	  

	Name:	 	
	Title:	 	

 Address for Notices: 
 Km. 2.5 Carretera Yecapixtla - Agua Hedionda 
 Yecapixtla, Morelos. 62820 
 Mexico 
 Attn: General Manager 
 Tel: 011-52-842-426-0010 
 Fax: 011-52-842-426-0030

 and 
 General Counsel 

ITG 
 804 Green Valley Road, Suite 300

 Greensboro, NC 27408 
 Tel:
336-379-6220 
 Fax: 336-379-6043 
  

 64 

			
	GENERAL ELECTRIC CAPITAL CORPORATION,
	as Agent and a Lender
		
	By:	 	  

	Name:	 	
	Title:	 	Duly Authorized Signatory

 Address for Notices:

 General Electric Capital Corporation 
 201 Merritt 7 
 P.O. Box 5201 
 Norwalk, Connecticut 06851 
 Attn: International Textiles Account Officer 
 Tel: (203) 956-4202 
 Fax: (203) 956-4238 
  

 65 

			
	UBS AG, STAMFORD BRANCH,
	as a Lender
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	By:	 	  

	Name:	 	
	Title:	 	

 Address for Notices: 
 UBS AG, Stamford Branch 
 677 Washington Boulevard 
 Stamford, Connecticut 06901 
 Attn.: 
 Tel: 
 Fax: 
  

 66 

			
	BANK OF AMERICA, N.A,
	as a Lender
		
	By:	 	  

	Name:	 	
	Title:	 	

 Address for Notices: 
 Bank of America, N.A. 
 Attn.: 
 Tel: 
 Fax: 
  

 67AMENDMENT #3 TO SENIOR SUBORDINATED NOTE PURCHASE AGREEMENT

 Exhibit 10.59 
 EXECUTION VERSION 
 AMENDMENT NO. 3 TO
SENIOR SUBORDINATED NOTE PURCHASE AGREEMENT 
 This AMENDMENT NO. 3 TO SENIOR SUBORDINATED NOTE PURCHASE AGREEMENT (this
“Amendment”) is dated as of December 22, 2009 (the “Third Amendment Effective Date”) by and among INTERNATIONAL TEXTILE GROUP, INC., a Delaware corporation (the “Company”) and the Purchasers
signatory hereto. Unless otherwise specified herein, capitalized terms used in this Amendment shall have the meanings ascribed to them in the Note Purchase Agreement (as hereinafter defined). 
 RECITALS: 
 WHEREAS, the Company and the Purchasers are party
to that certain Senior Subordinated Note Purchase Agreement, dated as of June 6, 2007 (as amended by Amendment No. 1 to Note Purchase Agreement, dated as of April 15, 2008 (“Amendment No. 1”) and Amendment
No. 2 to Senior Subordinated Note Purchase Agreement, dated as of December 24, 2008 (“Amendment No. 2”), and as otherwise amended, supplemented, restated or otherwise modified from time to time, the “Note
Purchase Agreement”) pursuant to which, among other things, the Company issued and sold to the Purchasers those certain 18% Senior Subordinated Notes due 2011 in accordance with and pursuant to the terms and provisions of the Note Purchase
Agreement; 
 WHEREAS, on September 21, 2009, WLR IV Parallel ESC, L.P. (“WLR Parallel”), WLR Recovery
Fund III, L.P. (“WLR Recovery III”) and WLR Recovery Fund IV, L.P. (“WLR Recovery IV”) collectively purchased (the “WLR Purchase”) from Canyon Value Realization Fund, L.P.
(“Canyon”) the full aggregate principal amount of Notes previously held by Canyon (prior to such purchase, the “Canyon Notes” and thereafter, the “WLR Notes”), which WLR Notes are subject to that
certain Debt Subordination Agreement, dated as of December 3, 2007 among WLR Parallel, WLR Recovery III and WLR Recovery IV, the Company and the Purchasers signatory thereto which shall be amended and restated as the Amended and Restated Debt
Subordination Agreement, dated as of the date hereof (as otherwise amended, supplemented, restated or otherwise modified from time to time, the “Debt Subordination Agreement”); 
 WHEREAS, the Purchasers have asserted that certain Defaults and Events of Default have occurred and may be continuing, as further set forth
on Exhibit A hereto (the “Past Defaults”); 
 WHEREAS, the Company acknowledges that, absent a waiver,
the occurrence of the Past Defaults under the Note Purchase Agreement would reasonably be expected to result in materially adverse consequences to the Company and its Subsidiaries; 
 WHEREAS, on June 30, 2009, Global Safety Textiles Holdings LLC (f/k/a ITG Automotive Safety Holdings LLC), a Delaware limited liability
company (“GST”) and a direct,

 
wholly-owned subsidiary of the Company, and eight of GST’s direct and indirect subsidiaries (specifically, GST ASCI Holdings Asia Pacific LLC, GST ASCI Holdings Europe, Inc., GST ASCI
Holdings Europe II LLC, GST ASCI Holdings Mexico, Inc., GST Automotive Safety Components International, Inc., Global Safety Textiles LLC, Global Safety Textiles Acquisition GmbH and GST Widefabric International GmbH (collectively with GST, the
“Filing Entities”) filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Filing”);

 WHEREAS, the Company anticipates that a BST Change of Control (and consequently a Change of Control) will occur as a
consequence of the Bankruptcy Filing; 
 WHEREAS, in consideration of and as a direct consequence of the foregoing
circumstances, the Company desires that (i) the Purchasers waive the Past Defaults occurring on or prior to the Third Amendment Effective Date, (ii) amend the definition of Change of Control in the Note Purchase Agreement and
(iii) make certain other modifications to the Note Purchase Agreement as more specifically set forth in this Amendment; 
 WHEREAS, in consideration of the transactions contemplated herein (including, without limitation, the payment more specifically set forth in this Amendment) and for other good and valuable consideration, the Purchasers are willing to waive
the Past Defaults occurring on or prior to the Third Amendment Effective Date and to amend the Note Purchase Agreement upon the terms and conditions as hereinafter set forth; 
 NOW, THEREFORE, in consideration of the premises contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1 Purchase of Tranche
A Notes. On the Third Amendment Effective Date, and simultaneous with the effectiveness hereof, WLR IV Parallel ESC, L.P., WLR Recovery Fund III, L.P., and WLR Recovery Fund IV, L.P. (the “WLR Purchasers”) shall collectively
purchase not less than $17,500,000 of Initial Notes representing PIK Interest in cash or other immediately available funds from CCP F, L.P., Reservoir Capital Master Fund I, L.P., Reservoir Capital Master Fund II, L.P., Reservoir Capital Partners,
L.P., Reservoir Capital Investment Partners, L.P. (collectively, the “Clearlake/Reservoir Purchasers”), pursuant to an assignment agreement in the form attached hereto as Attachment I, which Initial Notes shall immediately be
amended, restated and issued in the form of Tranche B Notes (as defined below) (the “Tranche A Purchase”). 
 2 Amendment to Section 1. Section 1 of the Note Purchase Agreement is hereby amended by the addition of the following sentence at the end thereof: 
 “The Company has authorized the amendment and restatement of the Initial Notes and (i) on the Third Amendment
Effective Date, the Initial Notes held by the Purchasers identified on Annex A to the Third Amendment will be amended and restated

  

 2 

 
substantially in the form attached as Exhibit 1-A hereto and shall thereafter constitute the “Tranche A Notes”, with all the rights and privileges, including, without limitation
absolute priority over the Tranche B Notes, attendant thereto, regardless of by whom such Tranche A Notes may subsequently be held (unless such holder is WLR or an Affiliate thereof in which event such Tranche A Notes shall automatically be amended
and restated as Tranche B Notes) and (ii) on the Third Amendment Effective Date, the Initial Notes held by the Purchasers identified on Annex B to the Third Amendment will be, and any Notes acquired by WLR or any Affiliate thereof after such
date will automatically upon such acquisition be, amended and restated substantially in the form attached as Exhibit 1-B hereto and shall thereafter constitute the “Tranche B Notes”, with all the terms and conditions, including,
without limitation, absolute subordination to the Tranche A Notes, attendant thereto, regardless of by whom such Tranche B Notes may subsequently be held.” 
 3 Amendments to Section 7.5. 
 (a) Section 7.5 of the Note Purchase Agreement is hereby amended by the addition of the following clause
(e) at the end thereof: 
 “In addition, it is understood that the certificates evidencing any
Tranche B Note will bear legends substantially similar to the following: 
  

	 	“(e)	THIS INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN NOTE PURCHASE AGREEMENT, DATED
AS OF JUNE 6, 2007, AMONG THE COMPANY AND THE RESPECTIVE PURCHASERS NAMED THEREIN, AS SUCH NOTE PURCHASE AGREEMENT HAS BEEN AND HEREAFTER MAY BE AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME (THE “NOTE PURCHASE AGREEMENT”)
AND THAT CERTAIN AMENDED AND RESTATED DEBT SUBORDINATION AGREEMENT, DATED AS OF DECEMBER 22, 2009, AMONG WLR RECOVERY FUND III, L.P., WLR IV PARALLEL ESC, L.P., WLR RECOVERY FUND IV, L.P, THE COMPANY AND THE PURCHASERS NAMED THEREIN, AS SUCH DEBT
SUBORDINATION AGREEMENT HAS BEEN AND HEREAFTER MAY BE AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME (THE “DEBT SUBORDINATION AGREEMENT”), TO THE TRANCHE A NOTES (AS DEFINED THEREIN) AS SUCH NOTES HAVE BEEN AND HEREAFTER MAY
BE AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME; AND EACH HOLDER OF THIS INSTRUMENT, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE SUBORDINATION PROVISIONS SET FORTH IN THE NOTE PURCHASE AGREEMENT, INCLUDING
SECTION 9.8 THEREOF, AND THE DEBT SUBORDINATION AGREEMENT.” 

  

 3 

 (b) Section 7.5(b) of the Note Purchase Agreement is hereby
amended and restated in its entirety as follows: 
  

	 	“(b)	THIS INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN THIRD AMENDED AND RESTATED
SUBORDINATION AND INTERCREDITOR AGREEMENT (THE “SUBORDINATION AGREEMENT”) DATED AS OF DECEMBER 22, 2009 AMONG CLEARLAKE CAPITAL PARTNERS, LLC, INTERNATIONAL TEXTILE GROUP, INC. (THE “COMPANY”) AND GENERAL ELECTRIC CAPITAL
CORPORATION (THE “AGENT”), TO THE INDEBTEDNESS (INCLUDING INTEREST) OWED BY THE COMPANY PURSUANT TO (i) THAT CERTAIN CREDIT AGREEMENT DATED AS OF DECEMBER 29, 2006 (THE “SENIOR CREDIT AGREEMENT”) AMONG THE COMPANY, THE AGENT
AND THE LENDERS FROM TIME TO TIME PARTY THERETO, AS THE SENIOR CREDIT AGREEMENT HAS BEEN AND HEREAFTER MAY BE AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME, (ii) THAT CERTAIN TERM LOAN AGREEMENT DATED AS OF DECEMBER 29, 2006
(THE “SENIOR TERM LOAN AGREEMENT”) AMONG BURLINGTON MORELOS, S.A. de C.V., THE AGENT AND THE LENDERS FROM TIME TO TIME PARTY THERETO, AS THE SENIOR TERM LOAN AGREEMENT HAS BEEN AND HEREAFTER MAY BE AMENDED, SUPPLEMENTED OR OTHERWISE
MODIFIED FROM TIME TO TIME AND (iii) INDEBTEDNESS REFINANCING THE INDEBTEDNESS UNDER THE SENIOR CREDIT AGREEMENT AND THE SENIOR TERM LOAN AGREEMENT AS CONTEMPLATED BY THE SUBORDINATION AGREEMENT; AND EACH HOLDER OF THIS INSTRUMENT, BY ITS
ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS OF THE SUBORDINATION AGREEMENT.” 

 (c) Section 7.5(c) of the Note Purchase Agreement is hereby amended and restated in its entirety as follows: 
  

	 	“(c)	THIS NOTE HAS “ORIGINAL ISSUE DISCOUNT” WITHIN THE MEANING OF SECTION 1273 OF THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED. PLEASE CONTACT THE COMPANY,
ATTENTION: CRAIG J. HART, VICE PRESIDENT AND TREASURER TO OBTAIN INFORMATION REGARDING THE ISSUE PRICE, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT AND THE YIELD TO MATURITY.” 

  

 4 

 4 Amendments to Section 8.1. The introductory paragraph
to Section 8.1 of the Note Purchase Agreement and clauses (a), (b) and (c) thereof are hereby amended and restated in their entirety as follows: 
 “8.1 Financial and Business Information. 
 The Company
shall deliver to each holder of Notes the financial information delivered to the lenders pursuant to the terms of the Senior Credit Agreement and, except during the Bankruptcy Period or at any time during which BST is not a Subsidiary of the
Company, the BST Credit Agreement, which financial information shall include, without limitation, delivery to each holder of Notes: 
 (a) Monthly Statements — within 30 days after the end of each month (other than with respect to any month ending on the last day of a fiscal quarter), duplicate copies of, 
 (i) a consolidated balance sheet of the Company and its Subsidiaries as at the end of such month (it being understood that
such consolidated balance sheet shall not include members of the BST Group during the Bankruptcy Period), 
 (ii)
consolidated statements of income and cash flows of the Company and its Subsidiaries, for such month and for the portion of the fiscal year ending with such month (it being understood that such consolidated statements of income and cash flows shall
not include members of the BST Group during the Bankruptcy Period), and 
 (iii) except during the Bankruptcy
Period or at any time during which BST is not a Subsidiary of the Company, a consolidated balance sheet and a profits and loss statement of BST and its Subsidiaries as at the end of such month, 
 prepared (x) in the case of clauses (i) and (ii), in accordance with GAAP applicable to monthly financial
statements generally, and (y) in the case of clause (iii) in accordance with BST Accounting Principles, and, in each case, certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of
the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments and the absence of footnote disclosures; 
 (b) Quarterly Statements — within 60 days (or such shorter period as may be agreed to in either the Senior Credit
Agreement or BST Credit Agreement (after giving effect to any amendments, waivers, extensions or modifications of the applicable provisions thereof), as the case may be (or, in the case of clauses (i) and (ii) below, within 10 days after
such earlier date as the Company’s quarterly report is required to be filed with the SEC under the Exchange Act (after giving effect to any applicable extensions permitted under the rules and regulations of the SEC), with written notice of such
earlier filing to be delivered to each holder of Notes simultaneously with such filing) after the end of each quarterly fiscal period in each fiscal year of the Company and BST, as applicable (other than the last quarterly fiscal period of each such
fiscal year), duplicate copies of, 
 (i) a consolidated balance sheet of the Company and its Subsidiaries as at
the end of such quarter (it being understood that such consolidated balance sheet shall not include members of the BST Group during the Bankruptcy Period), 
  

 5 

 (ii) consolidated statements of income, changes in shareholders’ equity
and cash flows of the Company and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter (it being understood that such consolidated statements of income,
changes in shareholders’ equity and cash flows shall not include members of the BST Group during the Bankruptcy Period), together with, to the extent and only to the extent delivered to the lenders under the Senior Credit Agreement, a written
statement of the Company’s management setting forth a discussion of the Company’s financial condition, changes in financial condition and results of operations, and 
 (iii) except during the Bankruptcy Period or at any time during which BST is not a Subsidiary of the Company, a consolidated
balance sheet of BST and its Subsidiaries, a profit and loss account and cashflow statement, in each case as at the end of such quarter, together with, to the extent and only to the extent delivered to the lenders under the BST Credit Agreement, a
written statement of BST’s management setting forth a discussion of BST’s financial condition, changes in financial condition and results of operations, 
 prepared (x) in the case of clauses (i) and (ii), in accordance with GAAP applicable to quarterly financial
statements generally, and (y) in the case of clause (iii), in accordance with BST Accounting Principles, and, in each case, certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the
companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments and the absence of footnote disclosures, provided that with respect to clauses (i) and (ii) above, delivery
within the time period specified above of copies of the Company’s Quarterly Report on Form 10-Q prepared in compliance with the requirements therefor and filed with the Securities and Exchange Commission shall be deemed to satisfy the
requirements of this Section 8.1(b); 
 (c) Annual Statements — within 120 days (or such shorter
period as may be agreed to in either the Senior Credit Agreement or BST Credit Agreement (after giving effect to any amendments, waivers, extensions or modifications of the applicable provisions thereof), as the case may be (or, in the case of
clauses (i) and (ii) below, within 10 days after such earlier date as the Company’s annual report is required to be filed with the SEC under the Exchange Act (after giving effect to any applicable extensions permitted under the rules
and regulations of the SEC), with written notice of such earlier filing to be delivered to each holder of Notes simultaneously with such filing) after the end of each fiscal year of the Company and BST, as applicable, duplicate copies of,

 (i) a consolidated balance sheet of the Company and its Subsidiaries, as at the end of such year (it being
understood that such consolidated balance sheet shall not include members of the BST Group during the Bankruptcy Period), 
 (ii) consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries, for such year (it being understood that such consolidated statements of
income, changes in shareholders’ equity and cash flows shall not include members of the BST Group during the Bankruptcy Period), and 
 (iii) except during the Bankruptcy Period or at any time during which BST is not a Subsidiary of the Company, a consolidated balance sheet of BST and its Subsidiaries (including BST and its Subsidiaries),
a profit and loss account and cashflow statement, in each case as at the end of such year, 
  

 6 

 setting forth in each case in comparative form the figures for the previous
fiscal year, all in reasonable detail, prepared in accordance with GAAP (in the case of clauses (i) and (ii)) or BST Accounting Principles (in the case of clause (iii)), and accompanied by an opinion thereon of independent certified public
accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash
flows and have been prepared in conformity with GAAP (in the case of clauses (i) and (ii)), or BST Accounting Principles (in the case of clause (iii)) and that the examination of such accountants in connection with such financial statements has
been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances, provided that, with respect to clauses (i) and (ii), the delivery within the time period
specified above of the Company’s Annual Report on Form 10-K for such fiscal year (together with the Company’s annual report to shareholders, if any, prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in accordance with the
requirements therefor and filed with the Securities and Exchange Commission shall be deemed to satisfy the requirements of this Section 8.1(c). For purposes of the financial reporting contemplated pursuant to Sections 8.1(a)(iii), 8.1(b)(iii),
and 8.1(c)(iii), the ASCI Reorganization shall be deemed to have been consummated on January 1, 2008;” 
 5 Amendment to Section 8.2. Section 8.2 of the Note Purchase Agreement is hereby amended by inserting after the reference therein to “a Senior Financial Officer” the words “substantially in the
form attached hereto as Exhibit 5”. 
 6 Amendments to Section 9.2. The second full
paragraph of Section 9.2 of the Note Purchase Agreement is hereby amended and restated in its entirety as follows: 
 “The Company will give each holder of Notes written notice of each optional prepayment under this Section 9.2 not less than 30 days and not more than 60 days prior to the date fixed for such
prepayment, which notice may be conditioned upon the occurrence of certain events as set forth therein, provided that the Company shall notify the holders of the Notes promptly of the failure of any condition. Each such notice shall specify such
date, the aggregate principal amount of the Notes to be prepaid on such date (in accordance with Section 9.5), the principal amount of each Note held by such holder to be prepaid, and the accrued interest to be paid on the prepayment date with
respect to such principal amount being prepaid.” 
 7 Amendment to Section 9.3.
Section 9.3 of the Note Purchase Agreement is hereby amended by inserting the words “Tranche A” before each reference to “Note” or “Notes”. 
  

 7 

 8 Amendment to Section 9.4. Section 9.4 of
the Note Purchase Agreement is hereby amended and restated in its entirety as follows: 
 “9.4 Mandatory
Prepayment Upon Qualified Issuance. 
 The Company will, upon the occurrence of the Qualified Issuance,
following not less than three (3) Business Days’ notice to the Tranche A Purchasers, pay (i) one-half of the outstanding amount of the PIK Interest on the Tranche A Notes as of the date of consummation of the Qualified Issuance at par
plus all accrued but unpaid interest on such PIK Interest on the Tranche A Notes prepaid and (ii) one-half of the accrued but unpaid interest in respect of the outstanding principal amount of the Tranche A Notes accruing since the most recent
Interest Payment Date.” 
 9 Amendment to Section 9.5. Section 9.5 of the
Note Purchase Agreement is hereby amended and restated its entirety as follows: 
 “9.5. Allocation of
Partial Prepayments. 
 In the case of each partial prepayment of the Obligations pursuant to
Section 9.2 or Section 9.7 or otherwise, the payments shall be allocated as follows: (i) first, to the payment of all fees, expenses and other Obligations due and payable to the Collateral Agent, (ii) second, to the
payment of accrued but unpaid interest (other than PIK Interest) on the Tranche A Notes on a pro rata basis, (iii) third, to the payment of outstanding principal amount representing PIK Interest on the Tranche A Notes on a pro rata
basis, (iv) fourth, to the payment of outstanding principal amount not representing PIK Interest of the Tranche A Notes on a pro rata basis until the Tranche A Notes are paid in full, (v) fifth, to the payment of the
remaining Tranche A Obligations on a pro rata basis until Full Payment of the Tranche A Obligations and (vi) sixth, among all of the Tranche B Obligations on a pro rata basis until the Tranche B Obligations are paid in full.”

 10 Amendment to Section 9. Section 9 of the Note Purchase Agreement is hereby
amended by adding the following Section 9.8 as the last section thereof: 
 “9.8 Subordination of
the Tranche B Notes. The Tranche B Purchasers, by their acceptance of any Tranche B Notes, hereby postpone and subordinate all of the Tranche B Obligations to the Full Payment of all of the Tranche A Obligations and hereby agree to be bound as a
“Subordinated Creditor” by each provision of the Debt Subordination Agreement as if fully set forth herein, mutatis mutandis. 
 (e) Amendment to Section 10.7. Section 10.7 of the Note Purchase Agreement is hereby amended and restated in its entirety as follows: 
 “10.7 Corporate Separateness. 
 The Company will, and will cause each of its Subsidiaries to, comply with Section 4.15 of the Senior Credit Agreement,
as in effect on the Third Amendment Effective Date after giving effect to the ITG Senior Restructuring Amendment (regardless of any amendment, modification, refinancing or termination of the Senior Credit Agreement), except as the Required Holders
shall otherwise consent to in writing.” 
  

 8 

 11 Amendment to Section 11.1. Section 11.1 of
the Note Purchase Agreement is hereby amended by deleting “or Clause 27.34 of the BST Credit Agreement, in each case” in clause (iii) thereof. 
 12 Amendments to Section 11.2. 
 (a) Section 11.2(a) of the Note Purchase Agreement is hereby amended by inserting the parenthetical “(other
than any member of the BST Group during the Bankruptcy Period)” after the words “shall not permit any of its Subsidiaries”. 
 (b) Section 11.2(b) of the Note Purchase Agreement is hereby amended and restated in its entirety as “INTENTIONALLY OMITTED”. 
 13 Amendments to Section 11.3. 
 (a) The introductory paragraph to Section 11.3(a) of the Note Purchase Agreement is hereby amended and restated
in its entirety as follows: 
 “(a) The Company will not, and will not permit any Subsidiary (other than any
Project Subsidiary or any member of the BST Group) to, directly or indirectly, create, incur, assume, guarantee, or otherwise be or become directly or indirectly liable with respect to, any Indebtedness, except:” 
 (b) Section 11.3(a)(ii) of the Note Purchase Agreement is hereby amended and restated in its entirety as follows:

 “(ii) subject to compliance with Section 10.7 and Section 11.7 (and without any implication to
the contrary as to the independent operation of each covenant), Indebtedness owing to the Company or a Subsidiary of the Company (other than any member of the BST Group during the Bankruptcy Period);” 
 (c) Section 11.3(a)(iii) of the Note Purchase Agreement is hereby amended and restated in its entirety as
follows: 
 “(iii) Indebtedness incurred pursuant to the Senior Credit Agreement; provided, that
after giving effect to the incurrence of such Indebtedness, the aggregate principal amount of Indebtedness incurred under the Senior Credit Agreement together with the aggregate principal amount of Indebtedness incurred pursuant to clause
(xi) of this Section 11.3 shall not exceed, at any time, the sum of (w) $75,000,000 plus (x) an amount specified by written notice to the Collateral Agent from the Senior Agent not to exceed $7,500,000 in the
aggregate consisting of advances under the Senior Credit Agreement which the Senior Agent deems necessary or desirable to preserve or protect the Collateral (as defined in the Senior Credit Agreement), to enhance the collectability or repayment of
the Obligations (under and as defined in the Senior Credit Agreement) or to pay any other amounts chargeable to the Credit Parties under any Loan Documents (as defined in the Senior Credit Agreement), including costs fees and expenses plus
(y) interest, fees and expenses that are capitalized under

  

 9 

 
the Senior Credit Agreement not included in clause (x) above minus (z) upon any termination (unless extended or replaced upon any such termination) of a Letter of Credit (issued
under and as defined in the Senior Credit Agreement) for the benefit of China Construction Bank, Bank of China or Industrial and Commercial Bank of China (or any of their respective Affiliates), an amount equal to (A) until such time as until
the amount outstanding under the Senior Credit Agreement has been reduced by $4,000,000, one hundred percent (100%) of the face amount of such terminated Letter of Credit immediately prior to such termination and (B) thereafter, twenty
five percent (25%) of the face amount of such terminated Letter of Credit immediately prior to such termination (the “Permitted Senior Indebtedness Amount”);” 
 (d) Section 11.3(a)(vi) of the Note Purchase Agreement is hereby amended to delete the following parenthetical
“(together with such Indebtedness of Project Subsidiaries)” and replace such parenthetical with the following: “together with such Indebtedness of Project Subsidiaries (collectively, “Capital Lease
Obligations”)”. 
 (e) Section 11.3(a)(xi) of the Note Purchase Agreement is hereby
amended to delete the reference therein to “$215,000,000” and replace such reference with “the Permitted Senior Indebtedness Amount”. 
 (f) Section 11.3(a) of the Note Purchase Agreement is hereby amended (i) by deleting the “and” immediately prior to clause (xiii) thereof, (ii) by deleting the
“.” at the end of clause (xiii) and substituting “; and” therefor and (iii) by inserting the following clause (xiv) as the last clause thereof: 
 “(xiv) Indebtedness incurred pursuant to the vendor financed cotton lines in an aggregate principal amount not to exceed $10,000,000 at
any time.” 
 (g) Section 11.3(b) of the Note Purchase Agreement is hereby amended and restated
in its entirety as follows: 
 “(b) The Company will not permit any Project Subsidiary to, directly or
indirectly, create, incur, assume, guarantee, or otherwise be or become directly or indirectly liable with respect to, any Third Party Indebtedness, except for Third Party Indebtedness that is non-recourse to the Company and is non-recourse to each
of the Company’s other Subsidiaries (other than to a Project Subsidiary Holding Company that owns, directly or indirectly, the Stock of such Project Subsidiaries) and does not exceed at any time $165,000,000 in the aggregate for all Project
Subsidiaries (the “Permitted Third Party Indebtedness Amount”); provided, however, that if at any time from and after the Third Amendment Effective Date one or more Project Subsidiaries listed on Schedule 6.4 as of the
Third Amendment Effective Date is no longer a Subsidiary of the Company, the Permitted Third Party Indebtedness Amount shall be reduced by the “Debt Allotment Amount” set forth on Schedule 6.4 opposite the name of such Project
Subsidiary.” 
  

 10 

 (h) Section 11.3(c) of the Note Purchase Agreement is hereby
amended and restated in its entirety as follows: 
 “(c) The Company will not permit any Subsidiary that is
a member of the BST Group (other than any member of the BST Group during the Bankruptcy Period) to, directly or indirectly, create, incur, assume, guarantee, or otherwise be or become directly or indirectly liable with respect to, any Indebtedness,
if, immediately after giving effect thereto, the BST Debt Cover is greater than 4.75:1.00.” 
 (i)
Section 11.3 of the Note Purchase Agreement is hereby amended by inserting the following clause (d) as the last clause thereof: 
 “(d) The Company will not, and will not permit any Subsidiary (other than any member of the BST Group) to, directly or indirectly, create, incur, assume, guarantee, or otherwise be or become directly
or indirectly liable with respect to, any Indebtedness that would cause Capital Lease Obligations to exceed $15,000,000.” 
 14 Amendment to Section 11.4. The last paragraph of Section 11.4 of the Note Purchase Agreement is hereby amended and restated in its entirety as follows: 
 “In addition to the foregoing, the Company will not permit any Subsidiary that is a member of the BST Group to, directly
or indirectly, create, incur, assume, guarantee, or otherwise become directly or indirectly liable with respect to, any Indebtedness to, or any Contingent Obligations arising from guarantees of obligations of, the Company, any Subsidiary of the
Company or any Affiliate of the Company that is not a Member of the BST Group.” 
 15 Amendments to
Section 11.6. 
 (a) The first paragraph of Section 11.6 of the Note Purchase Agreement
is hereby amended by inserting the parenthetical “(other than any member of the BST Group during the Bankruptcy Period)” after the words “will not permit any Subsidiary”. 
 (b) The second paragraph of Section 11.6 of the Note Purchase Agreement is hereby amended by inserting the
parenthetical “(other than any member of the BST Group during the Bankruptcy Period)” after the words “will not permit any Subsidiary”. 
 (c) The last paragraph of Section 11.6 of the Note Purchase Agreement is hereby amended by inserting after the words “BST Collateral” the words “other than pursuant to an order
of the court or Governmental Authority with competent jurisdiction over the Bankruptcy Filing”. 
 16
Amendments to Section 11.7. 
 (a) The first paragraph of Section 11.7 of the Note
Purchase Agreement is hereby amended by inserting the parenthetical “(other than any member of the BST Group during the Bankruptcy Period)” after the words “will not permit any Subsidiary”. 
  

 11 

 (b) Section 11.7(a) of the Note Purchase Agreement is hereby
restated in its entirety as follows: 
  

	 	“(a)	Investments by the Company or any of its Subsidiaries in any Subsidiary (other than in the BST Group) and Investments in the BST Group existing on the Third Amendment
Effective Date;”. 

 (c) Section 11.7(f) of the Note Purchase Agreement is hereby
amended and restated in its entirety as “(f) Permitted Acquisitions”. 
 (d)
Section 11.7(1) of the Note Purchase Agreement is hereby amended and restated in its entirety as “(1) INTENTIONALLY OMITTED”. 
 17 Amendments to Section 11.8. 
 (a) The first
paragraph of Section 11.8 of the Note Purchase Agreement is hereby amended by inserting the parenthetical “(other than any member of the BST Group during the Bankruptcy Period)” after the words “will not permit any
Subsidiary”. 
 (b) Section 11.8(b) of the Note Purchase Agreement is hereby amended by
inserting the words “or PIK Event” after each reference to “Event of Default”. 
 18
Amendment to Section 11.9. Section 11.9 of the Note Purchase Agreement is hereby amended by inserting the parenthetical “(other than any member of the BST Group during the Bankruptcy Period)” after the words
“will not permit any of its Subsidiaries”. 
 19 Amendment to Section 11.10(a).
Section 11.10(a) of the Note Purchase Agreement is hereby amended by inserting the parenthetical “(other than any member of the BST Group during the Bankruptcy Period)” after the words “will not permit any
Subsidiary”. 
 20 Amendments to Section 12. 
 (a) Section 12(e) of the Note Purchase Agreement is hereby amended by amending and restating clause
(ii) in its entirety as “(ii) INTENTIONALLY OMITTED”. 
 (b) Sections 12(f) and 12(g)
of the Note Purchase Agreement are hereby amended by inserting the words “(other than with respect to the Bankruptcy Filing)” after each reference to “Significant Subsidiary” or “Significant Subsidiaries”. 

 

 12 

 (c) Section 12(j) of the Note Purchase Agreement is hereby
amended and restated in its entirety as follows: 
 “(j) As of the last day of any fiscal quarter (i) ending on
March 31, 2010, June 30, 2010, September 30, 2010, or December 31, 2010, EBITDA for the period beginning on January 1, 2010 and ending on such last day of such fiscal quarter is less than the amount set forth below
opposite such date, and (ii) ending after December 31, 2010, EBITDA for the four fiscal quarter period ending on such last day of such fiscal quarter is less than the amount set forth below opposite such date: 
  

				
	 Fiscal Quarter Ending:
	  	Minimum EBITDA
		
	 March 31, 2010
	  	$	1,700,000
		
	 June 30, 2010
	  	$	7,900,000
		
	 September 30, 2010
	  	$	13,500,000
		
	 December 31, 2010
	  	$	21,500,000
		
	 March 31, 2011 and the last day of each fiscal quarter thereafter”
	  	$	21,500,000

 (d) Section 12(k) of the Note Purchase Agreement is hereby amended and restated in its entirety as follows: 
 “(k) As of the last day of any fiscal quarter ending on a date set forth below, the North American Leverage Ratio is greater than the ratio set forth below opposite such date: 
  

			
	 Fiscal Quarter Ending:
	  	North American
Leverage Ratio
		
	 March 31, 2010
	  	14.3:1.00
		
	 June 30, 2010
	  	6.9:1.00
		
	 September 30, 2010
	  	6.6:1.00
		
	 December 31, 2010
	  	4.5:1.00
		
	 March 31, 2011 and the last day of each fiscal quarter thereafter”
	  	4.5:1.00

 (e) Section 12(1) of the Note Purchase Agreement is hereby amended and restated in its entirety as “(1) INTENTIONALLY OMITTED”. 
 21 Amendment to Section 13.1(b). Section 13.1(b) of the Note Purchase Agreement is hereby
amended and restated in its entirety as follows: 
 “(b) If any other Event of Default has occurred and is
continuing, (i) any holder or holders of a majority in principal amount of the Tranche A Notes at the time

  

 13 

 
outstanding may at any time at its or their option, by notice or notices to the Company, declare all the Tranche A Notes then outstanding to be immediately due and payable and (ii) if Full
Payment has been made on the Tranche A Obligations, any holder or holders of a majority in principal amount of the Tranche B Notes at the time outstanding may at any time at its or their option, by notice or notices to the Company, declare all the
Tranche B Notes then outstanding to be immediately due and payable.” 
 22 Amendment to
Section 13.1(c). Section 13.1(c) of the Note Purchase Agreement is hereby amended and restated in its entirety as follows: 
 “(c) If any Event of Default described in paragraph (a) or (b) of Section 12 has occurred and is continuing, (i) any holder or holders of Tranche A Notes at the time outstanding
affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due and payable and (ii) if Full Payment has been made on the Tranche A
Obligations, any holder or holders of Tranche B Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately
due and payable.” 
 23 Amendment to Section 13.2. Section 13.2 of the Note
Purchase Agreement is hereby amended and restated in its entirety as follows: 
 “13.2. Other
Remedies. 
 If any Default or Event of Default has occurred and is continuing, and irrespective of whether
any Notes have become or have been declared immediately due and payable under Section 13.1, (i) the holder of any Tranche A Note at the time outstanding may proceed to protect and enforce the rights of such holder by an action at law, suit
in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power
granted hereby or thereby or by law or otherwise and (ii) if Full Payment has been made on the Tranche A Obligations, the holder of any Tranche B Note at the time outstanding may institute a suit for the enforcement of the rights of such holder
to receive payment of the principal of and interest, if any, on such Note in accordance with the terms of this Agreement.” 
 24 Amendment to Section 13.3. Section 13.3 of the Note Purchase Agreement is hereby amended and restated in its entirety as follows: 
 “13.3. Recission. 
 At any time after any Notes have been declared due and payable pursuant to Section 13.1, the holders of not less than 75% in principal amount of the Tranche A Notes then outstanding, by written
notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on such Notes, and all principal on such Notes that is due and payable and is unpaid other than by reason of
such declaration, and all interest on such overdue principal, (b) all Events of Default and Defaults, other than non-payment of amounts that have become

  

 14 

 
due solely by reason of such declaration, have been cured or have been waived pursuant to Section 18, and (c) no judgment or decree has been entered for the payment of any monies due
pursuant hereto or to the Notes. No rescission and annulment under this Section 13.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon.” 
 25 Amendment to Section 13.4. The second sentence of Section 13.4 of the Note Purchase
Agreement is hereby amended to add the following proviso at the end thereof “; provided, that no right, power or remedy has been conferred on any individual Purchaser in respect of the Collateral and all rights, powers and remedies have been
conferred upon, and may only be exercised by the Collateral Agent”. 
 26 Amendment to
Section 14. Section 14 of the Note Purchase Agreement is hereby amended by adding the following Section 14.5 as the last section thereof: 
 “14.5 Tranche A Notes and Tranche B Notes. 
 Notwithstanding anything to the contrary herein, (i) with respect to the assignment, exchange, transfer, replacement or
other substitution of any Tranche A Note, only a Tranche A Note in substantially the form of Exhibit 1-A to the Third Amendment may be received upon such assignment, exchange, transfer, replacement or other substitution unless the holder of such
Note is, or would upon such assignment, exchange, transfer, replacement or other substitution be, WLR or an Affiliate thereof, in which event, only a Tranche B Note in substantially the form of Exhibit 1-B to the Third Amendment may be received upon
such assignment, exchange, transfer, replacement or other substitution and (ii) with respect to the assignment, exchange, transfer, replacement or other substitution of any Tranche B Note, only a Tranche B Note in substantially the form of
Exhibit 1-B to the Third Amendment may be received upon such assignment, exchange, transfer, replacement or other substitution.” 
 27 Amendment to Section 16.1. Section 16.1 of the Note Purchase Agreement is hereby amended and restated in its entirety as follows: 
 “16.1 Transaction Expenses. 
 The Company shall pay, and hold the Collateral Agent and each Purchaser and (only as set forth below) all holders of Notes
harmless against liability for the payment of, and reimburse on demand as and when incurred from and against, (i) all reasonable out-of-pocket costs and expenses incurred by each Purchaser in connection with its due diligence review of the
Company and its Subsidiaries, the preparation, negotiation and execution of this Agreement, the Notes and the agreements contemplated hereby and thereby, and the consummation of all of the transactions contemplated hereby and thereby (including all
reasonable fees and expenses of legal counsel, environmental consultants and accountants), which costs and expenses shall be payable at the Closing; provided that the Purchasers shall retain no more than one counsel to represent the

  

 15 

 
Purchasers in connection with the transactions contemplated to be consummated on the Closing date, and the Company shall be obligated to pay not more than $200,000 with respect to fees and
expenses incurred by the Purchasers, as a whole, in connection with the transactions contemplated to be consummated on the Closing Date, (ii) all reasonable out-of-pocket fees and expenses incurred by the Collateral Agent or any Purchaser with
respect to any amendments, modifications, waivers or consents (whether or not the same become effective) under or in respect of each of the Financing Documents and the other agreements and instruments contemplated hereby and thereby (including all
expenses incurred in connection with any proposed merger, sale or recapitalization of the Company), (iii) all recording and filing fees, stamp and other taxes which may be payable by the Collateral Agent or any Purchaser or any holders of Notes
in respect of the execution and delivery of this Agreement or the issuance, delivery or acquisition of any Notes, (iv) the out-of-pocket fees and expenses incurred by the Collateral Agent and each Purchaser or any holders of Notes with respect
to (a) the enforcement of the rights granted under this Agreement, the Notes, the other Financing Documents and the agreements or instruments contemplated hereby and thereby (including out-of-pocket costs of collection), including in the course
of any work-out or restructuring of the Notes during the pendency of one or more Events of Default and (b) efforts to monitor the Notes or any of the other Obligations and to observe or assess any of the Credit Parties or their respective
affairs, (v) the out-of-pocket fees and expenses incurred by the Collateral Agent with respect to verifying, protecting, evaluating, assessing, appraising, collecting, selling, liquidating or otherwise disposing of any of the Collateral and
(vi) the out-of-pocket fees and expenses incurred by the Collateral Agent or any Purchaser or any holders of Notes with respect to any litigation, contest, dispute, suit, proceeding or action (whether instituted by the Collateral Agent, any
Purchaser, any Credit Party or any other Person and whether as a party, witness or otherwise) in any way relating to the Collateral, any of the Finance Documents or any other agreement to be executed or delivered in connection herewith or therewith,
including any litigation, contest, dispute, suit, case, proceeding or action, and any appeal or review thereof, in connection with a case commenced by or against any or all of the Credit Parties or any other Person that may be obligated to an Agent
by virtue of the Finance Documents, including any such litigation, contest, dispute, suit, proceeding or action arising in connection with any work-out or restructuring of the Notes during the pendency of one or more Events of Default; provided that
no Person shall be entitled to reimbursement under this clause (vi) in respect of any litigation, contest, dispute, suit, proceeding or action to the extent any of the foregoing results from such Person’s gross negligence or willful
misconduct; including, as to each of clauses (i) through (vi) above, all reasonable attorneys’ and other professional and service providers’ fees arising from such services and other advice, assistance or other representation,
including those in connection with any appellate proceedings, and all expenses, costs, charges and other fees incurred by such counsel and others in connection with or relating to any of the events or actions described in this Section 16.1, all
of which shall be payable, on demand by the Company. Without limiting the generality of the foregoing, such expenses, costs, charges and fees may include: fees, costs and expenses of accountants, environmental advisors, appraisers, investment
bankers, management and other consultants and paralegals; court costs and expenses; photocopying and duplication expenses; court reporter fees, costs and

  

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expenses; long distance telephone charges; air express charges; telegram or telecopy charges; secretarial overtime charges; and expenses for travel, lodging and food paid or incurred in
connection with the performance of such legal or other advisory services. If the Company fails to pay when due any amounts due to the Collateral Agent, any Purchaser or other holder of Notes, or fails to comply with any of its obligations pursuant
to this Agreement or any other agreement, document or instrument executed or delivered in connection herewith, the Company shall, upon demand by the Collateral Agent or such Purchaser or such other holder, pay to the Collateral Agent, such Purchaser
or such holder such further amounts as shall be sufficient to cover the out-of-pocket costs and expenses (including, but not limited to reasonable attorneys’ fees) incurred by or on behalf of the Collateral Agent, such Purchaser or such other
holder in collecting all such amounts due or in otherwise enforcing the Collateral Agent’s, such Purchaser’s or such other holder’s rights and remedies hereunder. Notwithstanding the provisions of this Section 16.1, the Company
shall not be liable to the Collateral Agent or any Purchaser for the payment of any costs or expenses incurred by the Collateral Agent or any Purchaser in connection with an assignment of its rights hereunder. Notwithstanding anything in the
foregoing, no Tranche B Purchaser shall be entitled to reimbursement under this Section 16.1 for actions taken in breach of its obligations under the Debt Subordination Agreement.” 
 28 Amendment to Section 18. Section 18 of the Note Purchase Agreement is hereby amended and
restated in its entirety as follows: 
 “18. AMENDMENT AND WAIVER. 
 The Financing Documents may be amended, and the observance of any term hereof or of the Notes may be waived (either
retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders except that (a) no amendment or waiver of any of the provisions of Sections 1, 2 or 7 hereof will be effective as to any Purchaser
unless consented to by such Purchaser in writing, and (b) no such amendment or waiver may, without the written consent of the holder of any Note at the time outstanding affected thereby, (i) subject to the provisions of Section 13
relating to acceleration or rescission, change the stated amount or specified date of any prepayment or payment of principal of or premium with respect to, or reduce the rate or change the specified date of payment or method of computation of
interest or of the PIK Interest on, such Note, (ii) change the percentage of the principal amount of the Notes the holders of which are required to consent to any such amendment or waiver, or (iii) amend any of Sections 12(a), 12(b), 13 or
20.” 
 29 Amendments to Section 21.1. 
 (a) The second sentence of Section 21.1 of the Note Purchase Agreement is hereby amended by deleting the
“and” at the end of clause (i) to the proviso and substituting a comma and adding the following at the end of such proviso: “and (iii) with respect to any assignment of Tranche B Notes, the receiving Purchaser or holder of
any Tranche B Note shall have delivered to the Company, the Collateral Agent and the Tranche A Purchasers a joinder to the Debt Subordination Agreement by such Purchaser or holder in form and substance reasonably satisfactory to the Collateral
Agent, any purported assignment without such joinder being null and void”. 
  

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 (b) The fourth sentence of Section 21.1 of the Note Purchase
Agreement is hereby amended and restated in its entirety as follows: “Any Purchaser intending to assign any of its rights hereunder shall give the Company and each other Purchaser not less than five days prior written notice of such intended
transfer”. 
 30 Amendment to Section 21.7. Section 21.7 of the Note Purchase
Agreement is hereby amended and restated in its entirety as “[INTENTIONALLY OMITTED]”. 
 31
Amendment to Section 21.9. Section 21.9 of the Note Purchase Agreement is hereby amended by inserting after the words “enforces its rights” the words “through the Collateral Agent”. 
 32 New Section 22. The Note Purchase Agreement is hereby amended by inserting a new Section 22
as follows: 
 “22. APPOINTMENT OF COLLATERAL AGENT; ACTIONS BY PURCHASERS. 
 22.1 Appointment of Collateral Agent. 
 Clearlake is hereby appointed to act on behalf of the Secured Parties as Collateral Agent under this Agreement and the other
Financing Documents. In performing its functions and duties under this Agreement and the other Financing Documents, and notwithstanding the use of the term “agent” or “Agent” in any capacity, the Collateral Agent shall have no
duties or responsibilities except to act in accordance with the instructions of the Required Holders, and does not assume and shall not be deemed to have assumed any obligation toward or relationship of agency or trust with or for any individual
Tranche B Purchaser. Furthermore, the duties of the Collateral Agent shall be mechanical and administrative in nature and the Collateral Agent shall not have, or be deemed to have, by reason of this Agreement, any other Financing Document or
otherwise, a fiduciary relationship in respect of any individual Tranche B Purchaser. The Collateral Agent shall have no duty to disclose, and shall not be liable for failure to disclose, any information relating to any Credit Party or any of their
respective Subsidiaries or any Account Debtor that is communicated to or obtained by the Collateral Agent or any of the Collateral Agent’s Affiliates in any capacity. Any other appointment or collateral agency agreement between the Collateral
Agent and any Purchaser or any of their respective Affiliates, if any, is hereby terminated and shall be superseded by this Section. The provisions of this Section 22.1 are solely for the benefit of the Collateral Agent and Purchasers
and no Credit Party nor any other Person shall have any rights as a third party beneficiary of any of the provisions hereof. 
 The Collateral Agent shall be entitled to refrain from any act or action (including failure to act) in connection with this Agreement or any other Financing Document until

  

 18 

 
the Collateral Agent shall have received instructions from the Required Holders, and the Collateral Agent shall not incur liability to any Person by reason of so refraining. The Collateral Agent
shall be fully justified in failing or refusing to take any action hereunder or under any other Financing Document (a) if such action would, in the opinion of the Collateral Agent, be contrary to law or the terms of this Agreement or any other
Financing Document, (b) if such action would, in the opinion of the Collateral Agent, expose the Collateral Agent to environmental or other liabilities or (c) if the Collateral Agent shall not first be indemnified to its satisfaction
against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. Without limiting the foregoing, no Purchaser shall have any right of action whatsoever against the Collateral Agent as a
result of the Collateral Agent’s acting or refraining from acting hereunder or under any other Financing Document in accordance with the instructions of the Required Holders. 
 22.2 Agent’s Reliance, Etc. 
 Neither the Collateral Agent nor any of its Affiliates nor any of their respective officers, directors, employees, agents or
representatives shall be liable (i) to any Tranche B Purchaser for any action taken or omitted to be taken by it hereunder or under any other Financing Document, or in connection herewith or therewith, except, solely with respect to a Required
Collateral Transition, for damages caused by its or their own gross negligence or willful misconduct or (ii) to any Tranche A Purchaser for any action taken or omitted to be taken by it hereunder or under any other Financing Document, or in
connection herewith or therewith, except damages caused by its or their own gross negligence or willful misconduct. Without limiting the generality of the foregoing, the Collateral Agent: (a) may treat any instructions of the Required Holders
as if delivered unanimously by all the Purchasers; (b) may treat the payee of any Note as the holder thereof until the Collateral Agent receives written notice of the assignment or transfer thereof signed by such payee and in form reasonably
satisfactory to the Collateral Agent; (c) may consult with legal counsel, independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken by it in good faith in accordance with the
advice of such counsel, accountants or experts; (d) makes no warranty or representation to any Purchaser and shall not be responsible to any Purchaser for any statements, warranties or representations made in or in connection with this Agreement or
the other Financing Documents; (e) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement or the other Financing Documents on the part of any Credit
Party or to inspect the Collateral (including the books and records) of any Credit Party; (f) shall not be responsible to any Purchaser for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement or the other Financing Documents or any other instrument or document furnished pursuant hereto or thereto; and (g) shall incur no liability under or in respect of this Agreement or the other Financing Documents by acting upon any
notice, consent, certificate or other instrument or writing (which may be by telecopy, telegram, cable or telex) believed by it to be genuine and signed or sent by the proper party or parties. 
  

 19 

 22.3 Clearlake and Affiliates. 
 With respect to any Notes or other Obligations held by Clearlake and/or its Affiliates, Clearlake shall have the same rights
and powers under this Agreement and the other Financing Documents with respect thereto as any other Purchaser and may exercise the same as though it were not the Collateral Agent. Clearlake and its Affiliates may lend money to, invest in, and
generally engage in any kind of business with, any Credit Party, any of their Affiliates and any Person who may do business with or own securities of any Credit Party or any such Affiliate, all as if Clearlake were not the Collateral Agent and
without any duty to account therefor to Purchasers. Clearlake and its Affiliates may accept fees and other consideration from any Credit Party for services in connection with this Agreement or otherwise without having to account for the same to
Purchasers. The Tranche B Purchasers specifically acknowledge that the Tranche A Purchasers as of the Third Amendment Effective Date are Affiliates of Clearlake and the interests of Clearlake and its Affiliates as Tranche A Purchasers may be
different from and directly adverse to the interests of the Tranche B Purchasers and the Tranche B Purchasers hereby acknowledge, and expressly consent to, and waive any claim based upon, such conflict of interest. 
 22.4 Purchaser Credit Decision. 
 Each Purchaser acknowledges that it has, independently and without reliance upon the Collateral Agent and based on such
documents and information as it has deemed appropriate, made its own credit and financial analysis of the Credit Parties and its own decision to enter into this Agreement. Each Purchaser also acknowledges that it will, independently and without
reliance upon the Collateral Agent or any other Purchaser and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement. Each
Purchaser acknowledges the potential conflict of interest of each other Purchaser as a result of Purchasers holding disproportionate amounts of the Notes, and expressly consents to, and waives any claim based upon, such conflict of interest.

 22.5 Indemnification. 
 Purchasers agree to indemnify the Collateral Agent on a pro rata basis according to the respective amounts of their Notes, to
the extent the Collateral Agent is not reimbursed by the Credit Parties and without limiting the obligations of the Credit Parties hereunder, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against the Collateral Agent in any way relating to or arising out of this Agreement or any other Financing Document or any
action taken or omitted to be taken by the Collateral Agent in connection therewith; provided, that no Purchaser shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from the Collateral Agent’s gross negligence or willful misconduct (unless such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements relate to the
Tranche B Obligations (other than in respect of a Required Collateral Transition), in which event, each Tranche B Purchaser shall remain liable). Without limiting the foregoing, each Purchaser agrees

  

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to reimburse the Collateral Agent promptly upon demand for its ratable share (as determined pursuant to the first sentence of this Section) of any out-of-pocket expenses (including reasonable
counsel fees) incurred by the Collateral Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in
respect of rights or responsibilities under, this Agreement and each other Financing Document, to the extent that the Collateral Agent is not reimbursed for such expenses by Credit Parties. 
 22.6 Successor Agents. 
 (a) The Collateral Agent may resign at any time by giving not less than thirty (30) days’ prior written notice thereof to Purchasers and Company. Upon any such resignation, the Required Holders
shall have the right to appoint a successor Collateral Agent. If no successor Collateral Agent shall have been so appointed by the Required Holders, pursuant to the immediately proceeding sentence and shall have accepted such appointment within
thirty (30) days after the resigning Collateral Agent’s giving notice of resignation, then the resigning Collateral Agent may, on behalf of Purchasers, appoint a successor Collateral Agent which shall be a Purchaser, if a Purchaser is
willing to accept such appointment. If no successor Agent has been appointed pursuant to the foregoing, within thirty (30) days after the date such notice of resignation was given by the resigning Agent, such resignation shall become effective
and, the Required Holders shall thereafter perform all the duties of the Collateral Agent hereunder and under the Financing Documents until such time, if any, as the Required Holders appoint a successor Collateral Agent as provided above. Upon the
acceptance of any appointment as the Collateral Agent hereunder by a successor Agent, such successor Agent shall succeed to and become vested with all the rights, powers, privileges and duties of the resigning Collateral Agent. Upon the earlier of
the acceptance of any appointment as Collateral Agent hereunder by a successor Collateral Agent or the effective date of the resigning Collateral Agent’s resignation, the resigning Collateral Agent shall be discharged from its duties and
obligations under this Agreement and the other Financing Documents, except that any indemnity rights or other rights in favor of such resigning Collateral Agent shall continue. After any resigning Collateral Agent’s resignation hereunder, the
provisions of this Section 22.6 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was acting as Collateral Agent. 
 (b) Upon written confirmation by the Required Holders of Full Payment of the Tranche A Obligations, the Collateral Agent may
and shall resign immediately, effective as of such date, as agent for itself and the Secured Parties under this Agreement and the other Financing Documents, and the Tranche B Purchasers shall appoint a successor agent, effective as of such date (the
“Required Collateral Transition”). The Collateral Agent, for itself and on behalf of the Tranche A Purchasers, agrees that it will execute, or will cause to be executed, any and all further documents, agreements and
instruments, and take all such further actions (including delivery of any possessory Collateral held by the Collateral Agent), which the Tranche B Purchasers may reasonably request to effectuate such Required Collateral Transition. 
  

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 (c) The Required Holders may, upon delivery of written notice to the
Collateral Agent, terminate any agency by the Collateral Agent which includes the Tranche B Purchasers and, thereafter, each reference to the Secured Parties shall mean the Collateral Agent and the Tranche A Purchasers exclusively; provided that, no
Tranche A Purchaser shall deliver or consent to delivery of such a written notice unless it has been advised by counsel that failure to do so may result in the subordination or release of the Lien of the Collateral Agent (a “Separation
Event”); provided, further, that in connection with any such Separation Event, the Collateral Agent and the Tranche A Purchasers shall consent to separate Liens on the Collateral in favor of the Tranche B Purchasers (or any agent
thereof) so long as such Liens are subject to the Debt Subordination Agreement and do not result in the subordination or release of the Lien of the Collateral Agent. 
 22.7 Setoff and Sharing of Payments. 
 In addition to any rights now or hereafter granted under applicable law and not by way of limitation of any such rights, upon
the occurrence and during the continuance of any Event of Default and subject to Section 9.8, each Purchaser is hereby authorized at any time or from time to time, without prior notice to any Credit Party or to any Person other than the
Collateral Agent, any such notice being hereby expressly waived, to offset and to appropriate and to apply any and all balances held by it at any of its offices for the account of the Company or any Guarantor (regardless of whether such balances are
then due to the Company or any Guarantor) and any other properties or assets at any time held or owing by that Purchaser or that holder to or for the credit or for the account of the Company or any Guarantor against and on account of any of the
Obligations that are not paid when due; provided that (i) the Purchaser exercising such offset rights shall give notice thereof to the affected Credit Party promptly after exercising such rights and (ii) unless and until Full Payment of
the Tranche A Obligations or upon the explicit written authorization of the Collateral Agent, such Tranche B Purchaser shall turn over the amount of such offset in cash to the Tranche A Purchasers for payment of the Tranche A Obligations.

 22.8 Information; Actions in Concert. 
 (a) Dissemination of Information. The Collateral Agent shall use reasonable efforts to provide the Tranche A
Purchasers with any notice of Default or Event of Default received by the Collateral Agent from, or delivered by the Collateral Agent to, any Credit Party; provided, that no Agent shall be liable to any Purchaser for any failure to do so, except to
the extent that such failure is attributable to the Collateral Agent’s gross negligence or willful misconduct. 
 (b) Actions in Concert. Anything in this Agreement to the contrary notwithstanding, each Purchaser hereby agrees with each other Purchaser that no Purchaser shall take any action to protect or enforce its rights arising out of this
Agreement or the Notes (including exercising any rights of setoff), in each case against the Company or any Credit Party or any Collateral, without first obtaining the prior written consent of the Collateral Agent and the Required Holders, it being
the intent of

  

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Purchasers that any such action to protect or enforce rights under this Agreement and the Notes shall be taken in concert and at the direction or with the consent of the Collateral Agent or
Required Holders. 
 22.9 No Duty of Care or Responsibility to Tranche B Purchasers. 
 Each Tranche B Purchaser understands and acknowledges that to the fullest extent provided in this Agreement and the Debt
Subordination Agreement, the Tranche B Obligations will not be repaid unless and until Full Payment is first made of the Tranche A Obligations and that the guarantees and Liens on the Collateral granted by any Credit Party to the Collateral Agent
pursuant to the Financing Documents, for its benefit and the benefit of the Secured Parties, shall be enforced in accordance with the sole direction of the majority of the Tranche A Purchasers (as the Required Holders) until a Required Collateral
Transition. Each Tranche B Purchaser further understands that, except in the limited circumstances provided in Section 18, the Required Holders have the exclusive right to amend and waive the terms of this Agreement and the other Financing
Documents without consulting, or obtaining the approval or consent of, the Tranche B Purchasers or the Collateral Agent. The Tranche B Purchasers acknowledge and agree that the Collateral Agent and the Tranche A Purchasers may take or refrain from
taking any and all actions under this Agreement and the other Financing Documents in any manner consistent with the sole interest of the Collateral Agent and the Tranche A Purchasers and, in any event, shall have no fiduciary or other duty to the
Tranche B Purchasers or any other duty to take any action to optimize or maximize the Tranche B Purchasers’ recovery with respect to the Tranche B Obligations. Except in the event of a Required Collateral Transition, no Tranche B Purchasers
shall have any right whatsoever to cause the Collateral Agent or the Tranche A Purchasers to take, or to refrain from taking any action under this Agreement or other Financing Documents. Without limiting the generality of the foregoing, subject to
Section 18, each Tranche B Purchaser acknowledges that the Collateral Agent and the Tranche A Purchasers, in their respective capacities as such, shall have no obligation or liability to such Tranche B Purchaser, express or implied, for any
(i) loss of, release of, subordination of, depreciation of, or failure to realize upon the Collateral, the Liens thereon securing the Tranche B Obligations, or any claims any Purchaser may have under any Guaranty (the “Guaranty
Claims”); (ii) failure to collect or receive payment of the Tranche B Obligations or other sums owing from the Company or any Guarantor; (iii) mistake, omission or error of judgment in (a) passing upon, making or
accepting the Notes, this Agreement, the other Financing Documents or the Collateral (including, without limitation, the value, genuineness, enforceability or existence of any of the Collateral), (b) making any advances of monies or extensions
of credit to or for the benefit of the Company under this Agreement or the other Financing Documents, (c) making or failing to make any examinations, appraisals, audits, reviews or check-ups of the Company’s affairs or the Collateral, or
(d) granting amendments, extensions, renewals or indulgences to either Company or any Guarantor, at any time or times hereafter; or (iv) violation of any law or legal standard in connection with the exercise of its remedies as a secured
party with respect to the Collateral, including, without limitation, disposing of Collateral in a manner which is deemed not be commercially reasonable or failing to provide commercially reasonable notice to the Company, any Guarantor or any junior
secured

  

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party. Neither the foregoing nor anything else herein or in any other Financing Document shall eliminate or limit the Collateral Agent’s obligation under Section 22.6(b). 
 22.10 Waivers and Release of Rights under this Agreement and Financing Documents. 
 (a) As a condition to the acceptance by Clearlake of its appointment as Collateral Agent under Section 22.1, except with
respect to the Required Collateral Transition, the Tranche B Purchasers on behalf of themselves and any and all of their respective predecessors, successors, heirs, assigns, representatives, agents, liability insurers, officers, directors,
principals, members, parents, partners, subsidiaries, affiliates, shareholders, employees, in-house and outside attorneys, other professionals, all solely in their capacity as such (collectively, the “Tranche B Parties”),
each hereby remise, release, discharge, hold harmless and covenant not to sue the Collateral Agent or any and all of its predecessors, successors, heirs, assigns, representatives, agents, liability insurers, officers, directors, principals, members,
parents, partners, subsidiaries, affiliates, shareholders, employees, in-house and outside attorneys, other professionals, and any and all of their respective predecessors, successors, heirs, assigns, all solely in their capacity as such
(collectively, the “Clearlake Parties”) from any and all claims, causes of action, disputes, agreements, covenants, demands, obligations, controversies, suits, cross-claims, torts, costs, losses, attorneys’ fees,
damages, liabilities and expenses, at law or in equity, whether presently known or unknown, whether matured, unmatured, whether fixed or contingent, whether in tort, in contract, whether asserted or unasserted, whether anticipated or unanticipated,
whether suspected or claimed, direct or indirect and whether accrued or not, and whether damages have resulted from such or not, of any kind, nature or description, or otherwise, which any of the Tranche B Parties has, or hereafter may have, against
any of the Clearlake Parties based on any matter, cause, thing, act or omission relating to or arising in connection with the role of Clearlake as Collateral Agent. 
 (b) Without limiting the provisions in Section 22.10(a) above, the Collateral Agent (acting in its sole discretion or
upon the instruction of the Required Holders), shall have the right, at any time or times hereafter, without giving prior notice to the Tranche B Purchasers, (i) to release or add guarantors or to release or subordinate their guarantees and
Liens in any of the Collateral or other security for the Obligations (provided that, the Tranche A Purchasers shall not instruct the Collateral Agent to release or subordinate any guarantee or lien in respect of the Tranche B
Obligations without a corresponding release or subordination of such guarantee or lien in respect of the Tranche A Obligations except upon a Separation Event), (ii) to agree to any modification to this Agreement or any

  

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other Financing Document, which requires Required Holders approval, (iii) to agree to waive or release any of the terms of this Agreement or any other Financing Document which waiver or
release requires Required Holders approval, including those which increase risks relating to the Tranche B Notes and other Tranche B Obligations, (iv) to consent to any action or failure to act by the Company or any Guarantor, (v) to
exercise or refrain from exercising any powers or rights which the Collateral Agent or any Tranche A Purchaser may have as a matter of law, or under or in respect of this Agreement or any other Financing Document, including, without limitation, the
right to enforce the Obligations of the Company or any Guarantor, and the right of the Collateral Agent to exercise any of its rights and remedies as a secured party with respect thereto under Article 9 of the applicable Uniform Commercial Code and
(vi) subject to Section 22.12, to take any action in the event of any voluntary or involuntary insolvency, bankruptcy, arrangement, receivership, custodianship, liquidation, dissolution, reorganization, assignment for the benefit of
creditors, appointment of a custodian, receiver, trustee or other officer with similar powers or any other proceeding for the liquidation, dissolution or other winding up of a Person or any other action or proceeding (each an “Insolvency
Proceeding”) involving the Company or any other Credit Party, including, without limitation, (a) entering into agreements with the Company (or a trustee, debtor-in-possession or other successor) with respect to the Company’s
post-petition usage of cash collateral, (b) establishing post-petition financing arrangements which the Collateral Agent or such Tranche A Purchasers deem appropriate, (c) asserting, waiving or deferring adequate protection payments or
post-petition interest payments with respect to the Obligations, (d) filing, enforcing and voting proofs of claims with respect to the Obligations, (e) subordinating the Collateral Agent’s (and by virtue thereof, all the
Purchaser’s) pre-petition Liens to those of lenders providing post-petition financing to the Company or any Credit Party, (f) credit bidding the Collateral Agent’s (and by virtue thereof, all the Purchaser’s) Liens up to the full
amount of the Obligations; (g) voting for or against or negotiating any plan of reorganization, (h) propounding any plan of reorganization, (i) seeking or refraining from seeking the termination of any exclusivity period,
(j) seeking or refraining from seeking relief from the automatic stay, (k) seeking or refraining from seeking the appointment of a trustee or examiner or the conversion or dismissal of any bankruptcy case, (1) exercising or refraining
from exercising any applicable election under Section 1111(b) of the Bankruptcy Code or (m) consenting to or opposing any sale of all or a portion of the assets or stock of the Company or any Credit Party whether under Section 363 of
the Bankruptcy Code or under a plan or reorganization. If at any time the Required Holders instruct the Collateral Agent to do so, the Collateral Agent shall release or subordinate any guarantee or any Lien or other security granted to it on the
Collateral. 
 22.11 Bankruptcy Issues. 
 (a) Each Purchaser agrees that the Collateral Agent or the Required Holders may consent to the use of cash collateral or
provide financing to the Company or any Credit Party (under Section 363 or Section 364 of the Bankruptcy Code or otherwise) on such terms and conditions and in such amounts as the Collateral Agent or the Required Holders, in their sole
discretion, may decide and that, in connection with such cash collateral usage or financing, the Company or Credit Party (or a trustee appointed for the estate of such Person) may grant to the Collateral Agent or the Tranche A Purchasers Liens upon
all assets of the Company or such Credit Party, which Liens shall secure payment of all Loans and other Obligations of the Collateral Agent and the Tranche A Purchasers (whether such Obligations arose prior to the filing or other commencement of any
Insolvency Proceeding or arise thereafter). Each Tranche B Purchaser acknowledges and agrees that the Tranche A Obligations shall be deemed to include obligations owing to the Collateral Agent or the Tranche A Purchasers in connection with any such

  

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financing provided after the commencement of an Insolvency Proceeding (whether through use of cash collateral, under Section 363 or 364 of the Bankruptcy Code or otherwise and whether
through this Agreement or though other post-petition agreements (all of which shall be considered part of the Financing Documents)) as though such financing was made as a Tranche A Note under this Agreement and all allocations of payments among the
Collateral Agent and the Tranche A Purchasers on the one hand and such Tranche B Purchasers on the other shall continue to be made after the filing or other commencement of any Insolvency Proceeding on the same basis that the payments were to be
allocated prior to the date of such filing or commencement. Each Tranche B Purchaser agrees that it will not object to or oppose a sale or other disposition of any assets securing the Obligations (or any portion thereof) free and clear of security
interests, liens or other claims of or for the benefit of such Tranche B Purchaser, if any, under Sections 363 or 1129 of the Bankruptcy Code or any other provision of the Bankruptcy Code if the Required Holders have consented to such sale or
disposition of such assets. To the extent that the Collateral Agent or any Tranche A Purchaser receives payments on, or proceeds of Collateral for, the Obligations held by the Collateral Agent or the Tranche A Purchasers which are subsequently
invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law, or equitable cause, then, to the extent of such
payment or proceeds received, the Obligations held by the Collateral Agent or Tranche A Purchasers, or part thereof, intended to be satisfied shall be revived and shall continue in full force and effect as if such payments or proceeds had not been
received by the Collateral Agent or Tranche A Purchaser, as the case may be. 
 (b) In the event of the
occurrence of any Insolvency Proceeding prior to Full Payment of the Tranche A Obligations, and in order to enable the Collateral Agent and the Tranche A Purchasers to enforce their rights and remedies hereunder in any of the aforesaid actions or
proceedings, each Tranche B Purchaser acknowledges and agrees that (i) the Collateral Agent and the Tranche A Purchasers have the sole right, and are hereby irrevocably authorized and empowered, in their discretion, to file, make and present
for and on behalf of such Tranche B Purchasers such proofs of claims against the Company and each Credit Party, as applicable, on account of the Tranche B Purchasers or other motions or pleadings as the Collateral Agent and the Tranche A Purchasers
may deem expedient or proper and (ii) if, and only if, a proposed plan of reorganization fails to provide for the Full Payment of the Tranche A Obligations on the effective date of such confirmed plan of reorganization, the Required Holders may
vote such proofs of claims in any such proceeding and to receive and collect any and all dividends or other payments, distributions or disbursements made thereon in whatever form the same may be paid or issued and to apply the same on account of any
portion of the Obligations held by the Collateral Agent and the Tranche A Purchasers. In voting such proofs of claim in any proceeding, the Collateral Agent and the Tranche A Purchasers may act in a manner consistent with the sole interest of the
Collateral Agent and the Tranche A Purchasers and neither the Collateral Agent nor any of the Tranche A Purchasers shall have any duty to take any action to optimize or maximize the Tranche B Purchasers’ recovery with respect to the Tranche B
Obligations. Each Tranche B Purchaser will execute and deliver to the Collateral Agent such powers of attorney, assignments and other instruments or

  

 26 

 
documents, including notes and stock certificates (together with such assignments or endorsements as the Collateral Agent shall deem necessary), as may be requested by the Collateral Agent in
order to enable the Collateral Agent to enforce any and all claims with respect to any or all of the Obligations. Each of the powers and authorizations granted to the Agent in this Section 22.11, being coupled with an interest, is irrevocable.
None of such powers or authorizations shall be deemed to limit the powers and authorizations set forth elsewhere in this Agreement. 
 22.12 Enforcement; No Direct Liens. 
 Unless and until Full
Payment of the Tranche A Obligations and a Required Collateral Transition is consummated, and except as contemplated in Section 22.6(c) above, each Tranche B Purchaser agrees (a) not to take any liens or security interests in any
Collateral (and any such direct Lien or security interest shall be void ab initio and of no further force and effect and the Tranche B Purchasers and each of their agents and representatives through which such Lien is held shall be
irrevocably obligated to release or subordinate, as directed by the Collateral Agent, in its entirety any Lien or security interest granted to or for the benefit of Tranche B Purchasers on such Collateral and to execute and deliver to the Collateral
Agent such termination statements, mortgage releases, other release documentation or subordination agreements as the Collateral Agent may request to effectuate such release or subordination, as applicable; and if the Tranche B Purchasers or any of
their agents and representatives through which such Lien is held shall fail to promptly deliver to the Collateral Agent, upon the Collateral Agent’s request pursuant to the immediately preceding sentence, such release documentation or
subordination agreements, then the Collateral Agent is hereby irrevocably authorized to execute and file such release documents and subordination agreements, as applicable, on behalf of the Tranche B Purchasers and any of their agents and
representatives through which such Lien is held), (b) not to ask, demand or sue for any right or remedy in respect of any of the Collateral, (c) not to take or receive from the Company or any Credit Party, directly or indirectly, in cash
or other property, by set-off (other than where the offset amounts are turned in cash to the Tranche A Purchaser for application to the Tranche A Obligations in accordance with Section 22.7) or in any other manner, whether pursuant to any
enforcement, collection, execution, levy or foreclosure proceeding or otherwise, any Collateral or any proceeds of Collateral, (d) that the sole right of the Tranche B Purchasers with respect to the Collateral is to receive a share of the
proceeds thereof, if any, after Full Payment of all of the Tranche A Obligations and (e) not to commence, or join with any creditor other than the Collateral Agent or the Tranche A Purchasers in commencing any enforcement, collection,
execution, levy or foreclosure proceeding with respect to any Lien held by it in, or otherwise with respect to, any Collateral or proceeds thereof. Any proceeds of the Collateral received by the Tranche B Purchasers and any other cash or other
property received by the Tranche B Purchasers in contravention of this Agreement shall be held in trust and paid over to the Collateral Agent for the benefit of the Tranche A Purchasers in the same form as received, with any necessary endorsements
and shall applied by the Collateral Agent in accordance with the provisions of this Agreement.” 
  

 27 

 33 Amendment to Schedule A. Schedule A to the Note
Purchase Agreement is hereby amended and restated in its entirety to read as set forth on Exhibit B attached hereto. 
 34 Amendment to Schedule B. 
 (a) Schedule B
of the Note Purchase Agreement is hereby amended by adding the following defined terms to Schedule B in the proper alphabetical order: 
 “Annualized North American EBITDA” means (a) for the fiscal quarter ending March 31, 2010, North American EBITDA for the three (3) month period ending on
March 31, 2010 multiplied by four (4), (b) for the fiscal quarter ending June 30, 2010, North American EBITDA for the six (6) month period ending on June 30, 2010 multiplied by two (2), and (c) for the
fiscal quarter ending September 30, 2010, North American EBITDA for the nine (9) month period ending on such date multiplied by four-thirds (4/3). 
 “Bankruptcy Filing” is defined in the Third Amendment. 
 “Bankruptcy Period” means the period during which the Filing Entities remain subject to bankruptcy
proceedings pursuant to the Bankruptcy Filing, so long as the Company and its Affiliates do not have direct or indirect control of the Filing Entities at such time. 
 “Clearlake” means Clearlake Capital Partners, LLC. 
 “Debt Subordination Agreement” means the Debt Subordination Agreement, dated as of December 3,
2007 among WLR Recovery Fund III, L.P., WLR IV Parallel ESC, L.P., WLR Recovery Fund IV, L.P., the Company and the Purchasers signatory thereto, as such agreement may be amended, modified or supplemented from time to time in accordance with its
terms. 
 “Filing Entities” is defined in the Third Amendment. 
 “Full Payment” means the full and indefeasible payment in cash, in immediately available funds, of,
all Tranche A Obligations consisting of monetary obligations (whether or not any of the Tranche A Obligations shall have been voided, disallowed or subordinated under any chapter of title 11 of the United States Code (11 U.S.C. 101-1330) as amended
and in effect from time to time, any applicable state fraudulent conveyance law, any other law in connection with an Insolvency Proceeding or otherwise) including all principal indebtedness, interest thereon (including interest at the rate specified
herein accruing subsequent to the filing of any petition initiating any Insolvency Proceeding, whether or not a claim for such interest is allowed (or allowed in such amount) in, any such proceeding) and all other monetary obligations. 

“Insolvency Proceeding” is defined in Section 22.10(b). 
  

 28 

 “ITG Senior Restructuring Amendment” means Limited
Waiver and Amendment No. 18 to Credit Agreement dated as of December 22, 2009 by and among the Company, the various Subsidiaries of the Company party thereto, General Electric Capital Corporation, as agent, and the lenders named therein.

 “Non-Regular Course of Business Acquisition” means any transaction or series of
related transactions other than in the Ordinary Course of Business (including, without limitation, capital expenditures made in the Ordinary Course of Business) that result in the Company and its Subsidiaries increasing their assets in Mexico,
Central America and South America, collectively, by an aggregate amount in excess of $1,000,000. 
 “North American EBITDA” means net income (or loss) for the applicable period of measurement of the Company and its North American Subsidiaries on a consolidated basis determined in accordance with GAAP (including the
income (or loss) of any Person accrued prior to the date it becomes a North American Subsidiary of the Company or is merged into or consolidated with the Company or any of its North American Subsidiaries or that Person’s assets are acquired by
the Company or any of its North American Subsidiaries), but excluding: (a) the income (or loss) of any Person which is not a North American Subsidiary of the Company, except to the extent of the amount of dividends or other distributions
actually paid to the Company or any of its North American Subsidiaries in cash by such Person during such period and the payment of dividends or similar distributions by that Person is not at the time prohibited by operation of the terms of its
charter or of any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Person; (b) the proceeds of any life insurance policy; (c) non-cash gains or losses from the sale, exchange,
transfer or other disposition of property or assets not in the ordinary course of business of the Company and its Subsidiaries, and related tax effects in accordance with GAAP; and (d) any other extraordinary or non-recurring gains or losses of
the Company or its North American Subsidiaries, and related tax effects in accordance with GAAP (other than in connection with the ASCI Reorganization or BST Amendment), PLUS (a) all amounts deducted in calculating net income (or loss) for
depreciation or amortization for such period; (b) interest expense (less interest income) deducted in calculating net income (or loss) for such period; (c) all accrued taxes on or measured by income to the extent deducted in calculating
net income (or loss) for such period; (d) all non-cash last-in, first-out expenses for such period; (e) professional fees and any other amounts charged in respect of discontinued operations or restructuring activities including the related
termination of employees (other than in connection with the ASCI Reorganization or the BST Amendment), (f) all amounts deducted in calculating net income (or loss) for BST Restructuring Costs; (g) all amounts deducted in calculating net
income (or loss) for BST Amendment Transaction Costs; and (h) without duplication, all non-cash losses or expenses (or minus non-cash income or gain) included or deducted in calculating net income (or loss) for such period, including non-cash
restructuring charges, and non-cash purchase accounting adjustments, but excluding any non-cash loss or expense that is an accrual of a reserve for a cash expenditure or payment to be made, or anticipated to be made, in a future period. When
calculating the North American Leverage Ratio for the fiscal quarter ending June 30, 2010 for purposes of Section 12(k), if the Specified Wool Subsidy is not accrued by the Company during the fiscal quarter ending June 30, 2010, an

  

 29 

 
amount equal to $3,200,000 may be added to “North American EBITDA” for the fiscal quarter ending June 30, 2010; provided that if such amount is so added to North American
EBITDA for the fiscal quarter ending June 30, 2010, an amount equal to $3,200,000 shall be subtracted from North American EBITDA for the fiscal quarter ending September 30, 2010 for purposes of Section 12(k). 
 “North American Leverage Ratio” means, on any date of determination, the
ratio of (x) Funded Debt of the Company and its North American Subsidiaries as of such date of determination to (y) North American EBITDA for the four fiscal quarter period ending immediately prior to such date of determination;
provided, however, that, for purposes of calculating the North American Leverage Ratio for any fiscal quarter ending prior to December 31, 2010, clause (y) above shall be replaced with Annualized North American EBITDA for
such fiscal quarter. 
 “North American Subsidiary” means
each Domestic Subsidiary of the Company and each Subsidiary of the Company that is incorporated or otherwise organized under the laws of Canada (including any province thereof) or Mexico. 
 “Separation Event” is defined in Section 22.6(c). 
 “Specified Wool Subsidy” means amounts received from the Secretary of
Commerce out of the “Wool Trust Fund” pursuant to Section 4002(c)(6)(A) of the Miscellaneous Trade and Technical Corrections Act of 2004 (Public Law 108-429, 118 Stat. 2603). 
 “Permitted Senior Indebtedness Amount” is defined in Section 11.3(a)(iii). 
 “PIK Event” means any time that any PIK Interest is outstanding on the Tranche A Notes. 

“Required Collateral Transition” is defined in Section 22.6(b). 
 “Third Amendment” means Amendment No. 3 to Senior Subordinated Note Purchase Agreement, dated as
of December 22, 2009, by and among the Company and the Purchasers signatory thereto. 
 “Third
Amendment Effective Date” means December 22, 2009. 
 “Tranche A Notes”
is defined in Section 1; provided that, for the avoidance of doubt and without any implication to the contrary, any Notes held by the Company, WLR and each of their Affiliates shall automatically constitute Tranche B Notes. 
 “Tranche A Purchaser” means and includes each of the holders of the Tranche A Notes; provided that,
the Company, WLR and each of their Affiliates may not at any time constitute a Tranche A Purchaser and any Notes held by the Company, WLR or any of their Affiliates shall automatically constitute Tranche B Notes. 
  

 30 

 “Tranche A Obligations” means all obligations,
loans, advances, debts, liabilities, obligations, covenants and duties owing by any Credit Party to any Tranche A Purchaser or the Collateral Agent, that arises under this Agreement or any Financing Document, whether or not for the payment of money,
whether arising by reason of an extension of credit, loan, guaranty, indemnification or in any other manner, whether direct or indirect (including those acquired by assignment), absolute or contingent, due or to become due, now existing or hereafter
arising or however acquired whether existing on the date hereof or hereinafter incurred or created. 
 “Tranche B Notes” is defined in Section 1; provided that, for the avoidance of doubt and without any implication to the contrary, any Notes held by the Company, WLR and each of their Affiliates shall
automatically constitute Tranche B Notes. 
 “Tranche B Obligations” means all
obligations, loans, advances, debts, liabilities, obligations, covenants and duties owing by any Credit Party to any Tranche B Purchaser, that arises under this Agreement or any Financing Document, whether or not for the payment of money, whether
arising by reason of an extension of credit, loan, guaranty, indemnification or in any other manner, whether direct or indirect (including those acquired by assignment), absolute or contingent, due or to become due, now existing or hereafter arising
or however acquired whether existing on the date hereof or hereinafter incurred or created. 
 “Tranche B Purchaser” means and includes each of the holders of the Tranche B Notes; provided that, the Company, WLR and each of their Affiliates (to the extent any such Person is a Purchaser) shall automatically
constitute a Tranche B Purchaser and any Notes held by the Company, WLR or any of their Affiliates shall automatically constitute Tranche B Notes. 
 (b) Schedule B of the Note Purchase Agreement is hereby amended by amending and restating the definitions of “Acquisition”, “Asset Disposition”, “BST”, “Change in
Control”, “EBITDA”, “Financing Documents”, “Funded Debt”, “Initial Notes”, “Purchasers”, “Required Holders” and “Secured Parties” as follows: 
 “Acquisition” means (x) any transaction or series of related transactions for the purpose of or
resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets of a Person, or of any business or division of a Person, (b) the acquisition of in excess of fifty percent (50%) of the Stock and
Stock Equivalents of any Person or otherwise causing any Person to become a Subsidiary the Company or (c) a merger or consolidation or any other combination with another Person or (y) any Non-Regular Course of Business Acquisition.

 “Asset Disposition” means any Transfer except: 
 (a) any 
 (i)
Transfer from a Subsidiary to the Company or a Wholly-Owned Subsidiary (other than a member of the BST Group); 
  

 31 

 (ii) Transfer from the Company to a Wholly-Owned Subsidiary (other than a member of the BST
Group); and 
 (iii) Transfer from the Company to a Subsidiary (other than a Wholly-Owned Subsidiary or a member of the BST
Group) or from a Subsidiary to another Subsidiary (other than a Wholly-Owned Subsidiary or a member of the BST Group), which in either case is for Fair Market Value, 
 so long as immediately before and immediately after the consummation of any such Transfer and after giving effect thereto, no Default or Event of Default exists; or 
 (b) any Transfer made in the ordinary course of business and involving only property that is either (i) inventory held for sale or
(ii) equipment, fixtures, supplies or materials no longer required in the operation of the business of the Company or any of its Subsidiaries or that is obsolete. 
 “BST” means Global Safety Textiles Holdings LLC (f/k/a ITG Automotive Safety Holdings LLC), a Delaware limited liability company. 
 “Change in Control” means: 
 (a) the sale or other transfer by WLR Fund III of any ITG Common Stock or ITG Preferred Stock to any Person other than any such sale or transfer to a WLR Affiliate, or 
 (b) the sale or other transfer by WLR Fund II of any ITG Common Stock or ITG Preferred Stock to any Person other than any such sale or
transfer to a WLR Affiliate or an in-kind distribution of such stock to any limited partners of WLR Fund II. 
 “EBITDA” means net income (or loss) after deducting the net income (or loss) attributable to noncontrolling interests held by third parties in Subsidiaries of the Company for the applicable period of measurement of
the Company and its Subsidiaries on a consolidated basis determined in accordance with GAAP (including the income (or loss) of any Person accrued prior to the date it becomes a Subsidiary of the Company or is merged into or consolidated with the
Company or any of its Subsidiaries or that Person's assets are acquired by the Company or any of its Subsidiaries), but excluding the following items (to the extent not attributable to noncontrolling interests held by third parties in Subsidiaries
of the Company): 
 (a) the income (or loss) of any Person which is not a Subsidiary of the Company, except to
the extent of the amount of dividends or other distributions actually paid to the Company or any of its Subsidiaries in cash by such Person during such period and the payment of dividends or similar distributions by that Person is not at the time
prohibited by operation of the terms of its charter or of any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Person; 
 (b) the proceeds of any life insurance policy; 
  

 32 

 (c) non-cash gains or losses from the sale, exchange, transfer or other
disposition of property or assets not in the ordinary course of business of the Company and its Subsidiaries, and related tax effects in accordance with GAAP; and 
 (d) any other extraordinary or non-recurring gains or losses of the Company or its Subsidiaries, and related tax effects in
accordance with GAAP (other than in connection with the ASCI Reorganization or BST Amendment), PLUS 
 (a)
all amounts deducted in calculating net income (or loss) for depreciation or amortization for such period; 
 (b)
interest expense (less interest income) deducted in calculating net income (or loss) for such period; 
 (c) all
accrued taxes on or measured by income to the extent deducted in calculating net income (or loss) for such period; 
 (d) all non-cash last-in, first-out expenses for such period; 
 (e) professional fees and any other
amounts charged in respect of discontinued operations or restructuring activities including the related termination of employees (other than in connection with the ASCI Reorganization or BST Amendment); 
 (f) all amounts deducted in calculating net income (or loss) for BST Restructuring Costs; 
 (g) all amounts deducted in calculating net income (or loss) for BST Amendment Transaction Costs; and 
 (h) without duplication, all non-cash losses or expenses (or minus non-cash income or gain) included or deducted in
calculating net income (or loss) for such period, including non-cash restructuring charges, and non-cash purchase accounting adjustments, but excluding any non-cash loss or expense that is an accrual of a reserve for a cash expenditure or payment to
be made, or anticipated to be made, in a future period. 
 When calculating the Leverage Ratio for purposes of
Section 11.3(a)(xiii) only, EBITDA shall include Pro Forma EBITDA for the most recently ending twelve month period prior to the date of determination of any Target acquired prior to the date of determination. When calculating EBITDA for the
fiscal quarter ending June 30, 2010 for purposes of Section 12(j), if the Specified Wool Subsidy is not accrued by the Company during the fiscal quarter ending June 30, 2010, an amount equal to $3,200,000 may be added to
“EBITDA” for the fiscal quarter ending June 30, 2010; provided that if such amount is so added to EBITDA for the fiscal quarter ending June 30, 2010, an amount equal to $3,200,000 shall be subtracted from EBITDA for the
fiscal quarter ending September 30, 2010 for purposes of Section 12(j). 
 “Financing
Documents” means this Agreement, the Notes, the Collateral Documents and the Debt Subordination Agreement, as each may be amended, restated or otherwise modified from time to time, and all other documents to be executed and/or delivered
in favor of any holders of Notes, or all of them, by the Company, any of its Subsidiaries, or any other Person in connection with this Agreement. 
  

 33 

 “Funded Debt” means, with respect to any Person,
without duplication, all Indebtedness for borrowed money evidenced by notes, bonds, debentures, or similar evidences of Indebtedness (but excluding any WLR Subordinated Indebtedness and Tranche B Notes), and all Indebtedness in respect of Capital
Leases. 
 “Initial Notes” means the $80,000,000 aggregate principal amount of 18.00%
Senior Subordinated Notes due 2011 issued on the Closing Date hereunder (as amended and restated as of the Third Amendment Effective Date), and such term shall include any PIK Notes and any such notes issued in substitution therefor pursuant to
Section 14 of this Agreement. The Notes shall be substantially in the form set out in Exhibit 1-A with respect to Tranche A Notes and Exhibit 1-B with respect to Tranche B Notes, with such changes therefrom, if any, as may be approved by the
Purchasers and the Company. For the avoidance of doubt, the Initial Notes shall include both Tranche A Notes and Tranche B Notes. 
 “Purchasers” means and includes each of the Persons listed in Schedule A and, to the extent permitted by Section 21.1, their successors and assigns. 
 “Required Holders” means, at any time, the holders of at least a majority in principal amount of the
Tranche A Notes at the time outstanding (exclusive of Notes then owned by the Company or any of its Affiliates). 
 “Secured Parties” means the Collateral Agent and each Purchaser. 
 (c)
Schedule B of the Note Purchase Agreement is hereby amended by deleting the definitions of “BST Change of Control” and “BST Permitted Acquisition”. 
 35 Amendment to Disclosure Schedules. Schedule 6.4 to the Note Purchase Agreement is hereby amended and restated in its
entirety to read as set forth on Exhibit C attached hereto. 
 36 Amendments to Exhibits. 
 (a) The Note Purchase Agreement is hereby amended to replace Exhibit 1 thereto with Exhibits 1-A and 1-B hereto. 

(b) The Note Purchase Agreement is hereby amended to add Exhibit 5 thereto in the form attached hereto as Exhibit
D. 
 37 Acknowledgement; Waiver. The Company acknowledges and agrees that the Past Defaults
have occurred and may be continuing and the Purchasers, subject to consummation of the Tranche A Purchase and the satisfaction of the conditions to effectiveness set forth in Section 39 below, hereby waive such Past Defaults to the extent
occurring on or prior to the date hereof (but not, for the avoidance of doubt, to the extent facts or circumstances giving rise to such prior defaults continue to exist and violate the terms of the Note Purchase Agreement as amended hereby).

  

 34 

 38 Representations and Warranties. In order to induce
Purchasers to enter into this Amendment, the Company represents and warrants, on its own behalf and on behalf of each Credit Party, to each Purchaser, that: 
 (a) the execution, delivery and performance by the Company of this Amendment has been duly authorized by all necessary
corporate action and this Amendment and the Note Purchase Agreement as amended hereby (the “Amended Note Purchase Agreement”) constitute legal, valid and binding obligations of the Company enforceable against the Company in
accordance with their terms; 
 (b) upon the effectiveness of this Amendment and after giving effect hereto, no
Default or Event of Default exists under the Amended Note Purchase Agreement; and 
 (c) upon the effectiveness
of this Amendment and after giving effect hereto, all representations and warranties in the Amended Note Purchase Agreement the other Financing Documents are true and correct in all material respects as of the effective date of this Amendment,
except for (i) any such representations and warranties which expressly relate to an earlier date and (ii) changes in circumstances which are otherwise expressly permitted pursuant to the terms of the Amended Note Purchase Agreement.

 39 Conditions to Effectiveness. This Amendment shall be effective on the date when the Required Holders
determine that each of the following conditions have been met: 
 (a) the Tranche A Purchase shall have been
consummated; 
 (b) this Amendment shall have been duly executed and delivered by the Company, each of the
Tranche A Purchasers and each of the Tranche B Purchasers; 
 (c) the Company, the Senior Agent and the other
parties thereto shall have delivered a fully executed copy of Limited Waiver and Amendment No. 18 to the Senior Credit Agreement in substantially the form attached hereto as Exhibit E; 
 (d) the Company, the Senior Agent and the other parties thereto shall have delivered a fully executed copy of Amendment
No. 6 to the Mexican Facility in substantially the form attached hereto as Exhibit F; 
 (e) the
Company, the Senior Agent and the other parties thereto shall have delivered a fully executed copy of the Third Amended and Restated Subordination and Intercreditor Agreement in substantially the form attached hereto as Exhibit G (the
“Third Amended and Restated Subordination Agreement”); 
 (f) the Company, the WLR Purchasers
and the other parties thereto shall have delivered a fully executed copy of the Amended and Restated Debt Subordination Agreement in substantially the form attached hereto as Exhibit H; 
 (g) the Company and the other parties thereto shall have delivered a fully executed copy of the Collateral Document Amendment
Agreement, which shall amend

  

 35 

 
the Guaranty and Security Agreement, the Pledge Agreement and any other Collateral Document as the Collateral Agent may reasonably request, in substantially the form attached hereto as Exhibit
I; 
 (h) receipt by the Purchasers of opinions in substantially the form attached hereto as Exhibits
J and K from Jones Day and Schell Bray Aycock Abel & Livingston, respectively, special counsel of the Company; 
 (i) receipt by the Purchasers of all of the agreements, documents, instruments and other items set forth on the Closing Checklist attached hereto as Exhibit L, each in form and substance reasonably
satisfactory to the Purchasers; 
 (j) receipt by the Purchasers of such other instruments and documents as they
may reasonably request; and 
 (k) payment by the Company of all reasonable, out-of-pocket expenses of the
Purchasers due and payable on or prior to the date hereof. 
 40 Post-Third Amendment Effective Date Deliveries.
Within the time periods specified thereon, the Company shall, and shall cause each other Credit Party to, take such further actions and duly execute and deliver such further agreements, instruments and documents as set forth on Schedule 40 attached
hereto. 
 41 Miscellaneous. 
 41.1 Effect; Ratification; Release. 
 (a) Except as
specifically set forth above, the Amended Note Purchase Agreement and the other Financing Documents (including, without limitation, Amendment No. 1 and Amendment No. 2) and all payment and performance obligations and all liens granted
thereunder shall remain in full force and effect and are hereby ratified and confirmed. The Company agrees that such ratification and reaffirmation is not a condition to the continued effectiveness of the Amended Note Purchase Agreement or the other
Financing Documents. 
 (b) The execution, delivery and effectiveness of this Amendment shall not operate as a
waiver of any Default or Event of Default (whether or not known to any Purchaser) or any right, power or remedy of the Purchasers under the Amended Note Purchase Agreement or any other Financing Document, nor constitute an amendment of any provision
of the Amended Note Purchase Agreement or any other Financing Document, except as specifically set forth herein. Upon the effectiveness of this Amendment, each reference in the Amended Note Purchase Agreement to “this Agreement”,
“hereunder”, “hereof”, “herein” or words of similar import shall mean and be a reference to the Note Purchase Agreement as amended hereby. 
 (c) The Company acknowledges and agrees that the amendments set forth herein are effective solely for the purposes set forth
herein and that the execution and

  

 36 

 
delivery by the Purchasers of this Amendment shall not be deemed (i) except as expressly provided in this Amendment, to be a consent to any amendment, waiver or modification of any term or
condition of the Amended Note Purchase Agreement or of any other Financing Document, (ii) to create a course of dealing or otherwise obligate any Purchaser to forbear, waive, consent or execute similar amendments under the same or similar
circumstances in the future, or (iii) to amend, prejudice, relinquish or impair any right of the Purchasers to receive any indemnity or similar payment from any Person or entity as a result of any matter arising from or relating to this
Amendment. 
 (d) In consideration of, among other things, the amendments, waivers and consents provided for
herein, and any other financial accommodations which the Purchasers elect to extend to the Company, the Company, on its own behalf and on behalf of each Credit Party, forever waives, releases and discharges any and all claims (including, without
limitation, cross-claims, counterclaims, rights of setoff and recoupment), causes of action, demands, suits, costs, expenses and damages that they now have, of whatsoever nature and kind, whether known or unknown, whether arising at law or in
equity, against the Collateral Agent and any Purchaser (in their respective capacities as such) and any of their respective subsidiaries and affiliates, and each of their respective successors, assigns, officers, directors, employees, agents,
attorneys and other representatives, based in whole or in part on facts, whether or not known, existing on or prior to the date of this Amendment. The provisions of this Section 41.1(d) shall survive the termination of the Amended Note Purchase
Agreement and payment in full of the Obligations. 
 41.2 Counterparts and Signatures by Fax. This Amendment may
be executed in any number of counterparts, each such counterpart constituting an original but all together one and the same instrument. Any party delivering an executed counterpart of this Amendment by fax or electronic mail shall also deliver an
original executed counterpart, but the failure to do so shall not affect the validity, enforceability or binding effect of this Amendment. 
 41.3 Severability. In case any provision in or obligation under this Amendment shall be invalid, illegal or unenforceable in any court of competent jurisdiction, the validity, legality and
enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not be affected or impaired thereby. 
 41.4 Financing Document. This Amendment shall constitute a Financing Document. 
 41.5 GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK INCLUDING SECTIONS
5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS THEREOF, BUT OTHERWISE WITHOUT REFERENCE TO THE CHOICE-OF-LAW PRINCIPLES OF THE LAW THEREOF. 
  

 37 

 42 Third Amended and Restated Subordination Agreement. Each Purchaser hereby
authorizes the Collateral Agent to enter into the Third Amended and Restated Subordination Agreement. 
 [Signature Pages Follow]

  

 38 

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

			
	COMPANY:
	
	INTERNATIONAL TEXTILE GROUP, INC.
		
	By:	 	 /s/ Neil W. Koonce

	Name:	 	Neil W. Koonce
	Title:	 	Vice President

 Signature Page to
Amendment No. 3 to Note Purchase Agreement 

					
	PURCHASERS:
	
	CCP F, L.P.
		
	By:	 	Clearlake Capital Partners, LLC, its general partner
			
		 	By:	 	CCG Operations, LLC, its managing member
		
	By:	 	 /s/ Jose Feliciano

	Name:	 	Jose Feliciano
	Title:	 	Manager
	
	RESERVOIR CAPITAL PARTNERS, L.P.
	
	By: RCP GP, LLC, its general partner
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	RESERVOIR CAPITAL INVESTMENT PARTNERS, L.P.
		
	By:	 	RCIP GP, LLC, its general partner
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	RESERVOIR CAPITAL MASTER FUND II, L.P.
		
	By:	 	Reservoir Capital Group, L.L.C., its general partner
		
	By:	 	  

	Name:	 	
	Title:	 	

 Signature Page to Amendment No. 3 to Note Purchase Agreement 

					
	PURCHASERS:
	
	CCP F, L.P.
		
	By:	 	Clearlake Capital Partners, LLC, its general partner
			
		 	By:	 	CCG Operations, LLC, its managing member
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	RESERVOIR CAPITAL PARTNERS, L.P.
		
	By:	 	RCP GP, LLC, its general partner
		
	By:	 	 /s/ Gregg M. Zeitlin

	Name:	 	Gregg M. Zeitlin
	Title:	 	Senior Managing Director
	
	RESERVOIR CAPITAL INVESTMENT PARTNERS, L.P.
		
	By:	 	RCIP GP, LLC, its general partner
		
	By:	 	 /s/ Gregg M. Zeitlin

	Name:	 	Gregg M. Zeitlin
	Title:	 	Senior Managing Director
	
	RESERVOIR CAPITAL MASTER FUND II, L.P.
		
	By:	 	Reservoir Capital Group, L.L.C., its general partner
		
	By:	 	 /s/ Gregg M. Zeitlin

	Name:	 	Gregg M. Zeitlin
	Title:	 	Senior Managing Director

 Signature Page to Amendment No. 3 to Note Purchase Agreement 

			
	WLR RECOVERY FUND IV, L.P.
		
	By:	 	WLR Recovery Associates IV, LLC, its General Partner
		
	By:	 	 /s/ Wilbur L. Ross, Jr.

	Name:	 	Wilbur L. Ross, Jr.
	Title:	 	Authorized Signatory
	
	WLR RECOVERY FUND III, L.P.
		
	By:	 	WLR Recovery Associates III, LLC, its General Partner
		
	By:	 	 /s/ Wilbur L. Ross, Jr.

	Name:	 	Wilbur L. Ross, Jr.
	Title:	 	Authorized Signatory
	
	WLR IV PARALLEL ESC, L.P.
		
	By:	 	INVESCO WLR IV Associates, LLC, its General Partner
		
	By:	 	 /s/ Wilbur L. Ross, Jr.

	Name:	 	Wilbur L. Ross, Jr.
	Title:	 	Authorized Signatory

 Signature Page
to Amendment No. 3 to Note Purchase Agreement

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